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