TURKMENISTAN: U.S. COMPANY BELAM EYES

C O N F I D E N T I A L ASHGABAT 001592

SIPDIS

STATE FOR SCA/CEN; EEB;
COMMERCE FOR DSTARKS/EHOUSE

E.O. 12958: DECL: 12/09/2019
TAGS: ECON EINV BTIO ECPS ELTN TX
SUBJECT: TURKMENISTAN: U.S. COMPANY BELAM EYES
TRANSPORT/COMMUNICATIONS SECTORS

Classified By: Acting DCM Peter Eckstrom for reasons 1.4 (b) and (d).


1. (C) On December 9, EconOff met with the president of the
New Jersey-based company "Belam," who was participating in
the International Electricity Industry Exhibition and
Conference held in Ashgabat December 7-10 (septel). Belam is
a provider and installer of high-tech communications systems.
The Russian-born rep cited the company's regional expertise
in providing communications and signaling equipment for
railway companies across the former Soviet Union. He noted
that Belam had already established a small office in Ashgabat
that was run by a Turkmen employee. He was hopeful that
Belam could parlay the company's success in Latvia,
Lithuania, Russia, and Uzbekistan into a deal with the
Turkmen.


2. (C) Belam's rep recounted that the company was founded in
1996 when it received an EXIM Bank loan to contract with
Latvian National Railways. According to the rep, the company
provided telecommunication services including the
installation of fiber optic cables, high-tech phones, and
signaling equipment. In light of Turkmen President
Berdimuhamedov's statements about improving the country's
communications and transportation sectors, Belam is pursuing
Turkmenistan as its next market. The company rep stated that
the Turkmen Minister of Communications approached him at the
exhibition, and upon finding out that Belam was a U.S.
company, suggested a meeting the same day. The company rep
felt that the current GOTX attitude had improved over the
recent months, and as a result Belam would soon submit
business proposals to the GOTX.


3. (C) Belam hopes to provide railway signaling equipment,
which ensures the safe control of railway traffic, for the
Turkmen railway line from Dashoguz (in the North) to
Ashgabat. In addition, the company plans to offer the GOTX
modern railway communications equipment on all existing
routes, which is standard throughout Europe. Belam would
like to provide communication systems for the Seidi power
plant, which has been in operation from 1992, and lacks
modern communications equipment. The company rep also
reported that GOTX officials asked Belam about providing
truck monitoring systems that would allow the GOTX to track
how much fuel truck drivers were using and purchasing in
order to crack down on fuel abuse. He reportedly told the
GOTX that such monitors operated via GPS systems, which are
unavailable in Turkmenistan to date. He was also surprised
by the GOTX request for Belam to procure high-tech, white
paint for Turkmen road marking that would "not be darkened by
dirt and dust," as the President had reportedly complained
how "dingy" the white lane dividers and crosswalks had become.


4. (C) COMMENT. Belam joins an increasing number of U.S.
companies hoping to bring their goods and/or services to
Turkmenistan. Belam's rep asserted that Turkmenistan is on
his company's short list, as it is one of the few Central
Asian countries that seemingly has cash to spend on
infrastructure projects. The company hopes its regional
expertise and reputation will help it to strike an initial
deal, with the hope of many future deals to come. At the
same time, the company rep noted that the business climate in
Turkmenistan remains "less than inviting," and the company
will have to show a long-term commitment to the GOTX before
any proposal is turned into a signed deal. END COMMENT.
CURRAN