TURKMENISTAN STILL FLOUNDERING ON STURGEON FARM

UNCLAS ASHGABAT 001056 SENSITIVE SIPDIS STATE FOR SCA/CEN; EEB E.O. 12958: N/A TAGS: EFIS ECON ETRD PGOV EINV PBTS SENV TX SUBJECT: TURKMENISTAN STILL FLOUNDERING ON STURGEON FARM ¶1. (U) Sensitive but unclassified. Not for public Internet. ¶2. (SBU) SUMMARY: The Turkmen Government is again casting about for a private company to build a sturgeon farm that would produce sturgeon and ultimately yield black caviar. The State Fisheries Committee announced a tender to this effect in the local media on July 23; the tender will close on August 23. This tender marks the third time the GOTX has attempted to reel in companies. The geographical features on Turkmenistan's Caspian coast and the Committee's poor efforts to advertise the tender are major obstacles to netting strong bids. END SUMMARY ¶3. (SBU) Turkmenistan is obligated to contribute to increased numbers of sturgeon in the Caspian. Moreover, Turkmenistan's quota of sturgeon it can catch depends on this contribution. Each year, the Caspian littoral states set the catch quotas for each country based on each country's contribution to the natural and artificial reproduction of sturgeon in the Caspian. According to a Turkmen Government official, Turkmenistan has the lowest quota among the littoral states because it does not contribute to sturgeon reproduction either naturally or artificially. At the same time, Turkmenistan is the only country among the littoral states that does not possess the natural conditions necessary for sturgeon to spawn. Sturgeon lay eggs in fresh water and feed in salty water, but Turkmenistan's sole river flowing into the Caspian, the Etrek, is very shallow, and often dries up in the summer, making it unsuitable for egg laying. ¶4. (SBU) The Turkmen Government is determined to create facilities for the production of sturgeon, so that Turkmenistan's catch quota can be increased. In addition to the much-awaited quota increase, such facilities will also create possibilities for Turkmenistan to produce and export black caviar, which could become a reliable source of hard-currency income for the State Fisheries Committee. Reportedly, the first tender announcement for a sturgeon farm did not attract any strong bidders. The second tendering process resulted in a contract awarded to a Turkish company, which was later annulled because the company had not managed to deliver on some contractual obligations. ¶5. (SBU) According to a Turkmen Government official, the absence of adequate volumes of fresh water on the Turkmen coast of the Caspian Sea is the main hurdle that companies face when formulating their proposals. As a result, the State Fisheries Committee is likely to award the contract to a company that includes in its business proposal a plan for increasing volumes of fresh water necessary for spawning. ¶6. (SBU) COMMENT: The on-going sturgeon tender presents a rare opportunity for highly qualified companies to win a Turkmen tender on the merits of their expertise rather than through personal contacts with government officials. Despite two unsuccessful tenders in the past, the State Fisheries Committee has not improved its tender announcement policy and published the latest announcement in only one local newspaper and on a government-owned website. Given this lack luster approach to attracting bidders, it is uncertain whether the Committee will be able to find strong candidates the third time around. END COMMENT. MILES