Identifier
Created
Classification
Origin
09ASHGABAT1672
2009-12-30 10:14:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Ashgabat
Cable title:
TURKMENISTAN: A BILLION DOLLAR LOAN FROM IDB
VZCZCXRO7854 PP RUEHIK DE RUEHAH #1672 3641014 ZNR UUUUU ZZH P 301014Z DEC 09 FM AMEMBASSY ASHGABAT TO RUEHC/SECSTATE WASHDC 3980 INFO RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY RUEATRS/DEPT OF TREASURY WASHDC PRIORITY RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE RUCNCIS/CIS COLLECTIVE RUCNMEM/EU MEMBER STATES COLLECTIVE RUEHAK/AMEMBASSY ANKARA 6057 RUEHBJ/AMEMBASSY BEIJING 3751 RUEHKO/AMEMBASSY TOKYO 3610 RUEHIT/AMCONSUL ISTANBUL 4299 RUCNDT/USMISSION USUN NEW YORK 1357 RHMCSUU/CDR USCENTCOM MACDILL AFB FL RUEHVEN/USMISSION USOSCE 4236 RUEAIIA/CIA WASHDC RHEFDIA/DIA WASHDC RHEHNSC/NSC WASHDC RUEKJCS/SECDEF WASHDC RUEKJCS/JOINT STAFF WASHDC
UNCLAS ASHGABAT 001672
SENSITIVE
SIPDIS
STATE FOR SCA/CEN; EEB
ENERGY FOR EKIMOFF/BURPOE/COHEN
COMMERCE FOR EHOUSE/DSTARKS
E.O. 12958: N/A
TAGS: EPET PGOV EINV EFIN TX
SUBJECT: TURKMENISTAN: A BILLION DOLLAR LOAN FROM IDB
REF: ASHGABAT 1627
UNCLAS ASHGABAT 001672
SENSITIVE
SIPDIS
STATE FOR SCA/CEN; EEB
ENERGY FOR EKIMOFF/BURPOE/COHEN
COMMERCE FOR EHOUSE/DSTARKS
E.O. 12958: N/A
TAGS: EPET PGOV EINV EFIN TX
SUBJECT: TURKMENISTAN: A BILLION DOLLAR LOAN FROM IDB
REF: ASHGABAT 1627
1. (U) Sensitive but unclassified. Not for public Internet.
2. (SBU) Turkmen media reported last week that the Turkmen
Government is in the process of preparing loan agreements with
the Islamic Development Bank (IDB) to finance nine projects
totaling $950 million. The IDB will provide loans for
projects for a period of 20-25 years. The Turkmen Government
has plans to sign the loan agreements in the beginning of
2010.
3. (SBU) The $950 million will include not only IDB funds,
but also funds provided to the IDB by the Saudi Development
Fund, Kuwait Fund for Arab Economic Development, OPEC Fund for
International Development, and Abu-Dhabi Development Fund for
the purpose of financing the above-mentioned projects. These
organizations formed a special Coordination Group that
considered and approved the projects at a roundtable meeting
held December 17-18, 2009 in Ashgabat. Although there are
several organizations providing funds, the IDB will sign the
loan agreements and coordinate all subsequent loan-related
activities.
4. (SBU) The nine projects that will be financed through IDB-
funding are: reconstruction of the Turkmenistan - Kazakhstan
highway, creation of telecommunication systems along the
Ashgabat - Dashoguz and BEREKET - Uzen (Kazakhstan) railroads,
construction of a new runway at the Turkmenabat airport,
development of the Yashan underground fresh water reservoir in
the Balkan province, Western Turkmenistan, construction of a
new health resort in Mollagara located in the Balkan province,
construction of a new dental center in Ashgabat, and financing
of small and medium businesses throughout the country. The
total amount of this loan package exceeds the amount of all
previous IDB-financed projects in the country, since 1994,
when Turkmenistan started cooperating with the IDB.
5. (SBU) COMMENT: This IDB loan will bring the total amount
of foreign loans taken by the Turkmen Government to more than
$5 billion, a record amount for the country. The IDB also
becomes Turkmenistan's second largest lender; the largest
lender is the Chinese Government with more than $4 billion
loans to Turkmenistan (reftel). The increased foreign
borrowing is likely due to the decline in hard currency
reserves that the country incurred when Russia stopped buying
Turkmen gas in April 2009. END COMMENT.
CURRAN
SENSITIVE
SIPDIS
STATE FOR SCA/CEN; EEB
ENERGY FOR EKIMOFF/BURPOE/COHEN
COMMERCE FOR EHOUSE/DSTARKS
E.O. 12958: N/A
TAGS: EPET PGOV EINV EFIN TX
SUBJECT: TURKMENISTAN: A BILLION DOLLAR LOAN FROM IDB
REF: ASHGABAT 1627
1. (U) Sensitive but unclassified. Not for public Internet.
2. (SBU) Turkmen media reported last week that the Turkmen
Government is in the process of preparing loan agreements with
the Islamic Development Bank (IDB) to finance nine projects
totaling $950 million. The IDB will provide loans for
projects for a period of 20-25 years. The Turkmen Government
has plans to sign the loan agreements in the beginning of
2010.
3. (SBU) The $950 million will include not only IDB funds,
but also funds provided to the IDB by the Saudi Development
Fund, Kuwait Fund for Arab Economic Development, OPEC Fund for
International Development, and Abu-Dhabi Development Fund for
the purpose of financing the above-mentioned projects. These
organizations formed a special Coordination Group that
considered and approved the projects at a roundtable meeting
held December 17-18, 2009 in Ashgabat. Although there are
several organizations providing funds, the IDB will sign the
loan agreements and coordinate all subsequent loan-related
activities.
4. (SBU) The nine projects that will be financed through IDB-
funding are: reconstruction of the Turkmenistan - Kazakhstan
highway, creation of telecommunication systems along the
Ashgabat - Dashoguz and BEREKET - Uzen (Kazakhstan) railroads,
construction of a new runway at the Turkmenabat airport,
development of the Yashan underground fresh water reservoir in
the Balkan province, Western Turkmenistan, construction of a
new health resort in Mollagara located in the Balkan province,
construction of a new dental center in Ashgabat, and financing
of small and medium businesses throughout the country. The
total amount of this loan package exceeds the amount of all
previous IDB-financed projects in the country, since 1994,
when Turkmenistan started cooperating with the IDB.
5. (SBU) COMMENT: This IDB loan will bring the total amount
of foreign loans taken by the Turkmen Government to more than
$5 billion, a record amount for the country. The IDB also
becomes Turkmenistan's second largest lender; the largest
lender is the Chinese Government with more than $4 billion
loans to Turkmenistan (reftel). The increased foreign
borrowing is likely due to the decline in hard currency
reserves that the country incurred when Russia stopped buying
Turkmen gas in April 2009. END COMMENT.
CURRAN