TURKMENISTAN HOLDS ELECTRIC POWER EXHIBITION

UNCLAS ASHGABAT 001598 SENSITIVE SIPDIS STATE FOR SCA/CEN; EEB; NEA/IR ENERGY FOR EKIMOFF/BURPOE/COHEN COMMERCE FOR EHOUSE E.O. 12958: N/A TAGS: ENRG PGOV EINV EIND BEXP BTIO TX SUBJECT: TURKMENISTAN HOLDS ELECTRIC POWER EXHIBITION REF: A) ASHGABAT 1592; B) ASHGABAT 1591 ¶1. (U) Sensitive but unclassified. Not for public Internet. ¶2. (SBU) On December 7-8, the Turkmenistan Ministry of Energy and Industry, Academy of Sciences, and Chamber of Commerce and Industry hosted the Second Annual International Electricity Industry Exhibition. The exhibition included local and foreign power generation equipment and electricity transmission systems vendors. The exhibition started with an elaborate opening ceremony attended by the Cabinet of Ministers, with remarks from President Berdimuhamedov read by Deputy Chairmen for Energy and Industry Deryageldi Orazov. ¶3. (SBU) Most of the local exhibitors represented state-owned companies involved in electricity production, distribution, and services for transmission anddistribution lines. Participation in the exhibition was reportedly obligatory for state companies. Products exhibited by local private firms were mostly limited to street lighting equipment and electric motors. Although the spectrum of products exhibited by local private firms was quite limited, the existence of private, Turkmen companies that produce electric equipment is a positive development in the country. ¶4. (SBU) The exhibition attracted 52 foreign companies from 18 countries, including the U.S., Japan, Germany, France, Austria, Belgium, Finland, Turkey, Iran, China, Kazakhstan, Uzbekistan, Ukraine, and Belarus, with Russian participation dominating the exhibition. Two U.S. companies, General Electric and New Jersey-based Belam, participated in the exhibition. GE has been present in the Turkmen energy industry market since 2002, supplying gas turbines with the total capacity of 1,000 MW and other equipment for Turkmen power plants (ref B). For Belam, it was the company's first attempt at pursuing contracts in Turkmenistan (ref A). ¶5. (SBU) Besides large companies producing sophisticated equipment for power plants, there were many smaller companies that produce electricity distribution, transmission, and control devices and appliances for commercial and residential buildings. For such types of companies, the exhibition was a good opportunity to showcase their products to local and foreign construction companies operating in Turkmenistan. ¶6. (SBU) COMMENT: The exhibition is unlikely to make a serious economic impact and trigger new contracts and projects within Turkmenistan's electricity sector. Although the exhibition attracted participation by several large foreign companies, in general, it was one of the routine exhibitions that the ministries supervising key sectors of the national economy are obliged to arrange. The real objective of such events seems to be maintaining the impression of an open market and booming economy, rather than creating necessary conditions for introducing new technologies and concluding new business deals. END COMMENT. CURRAN