TURKMENISTAN: ECONOMIC POLICY PROJECT RECEIVES LETTER OF

UNCLAS SECTION 01 OF 02 ASHGABAT 000040 SENSITIVE SIPDIS STATE FOR SCA/CEN, EUR/ACE, EEB AID/W FOR EE/EA E.O. 12958: N/A TAGS: PGOV PREL EAID TX SUBJECT: TURKMENISTAN: ECONOMIC POLICY PROJECT RECEIVES LETTER OF APPRECIATION FROM CABINET OF MINISTERS REF: (A) 08 ASHGABAT 1253 (B) 08 ASHGABAT 1227 ¶1. (U) Sensitive but unclassified. Not for public Internet. ¶2. (SBU) SUMMARY: On January 6, 2009, the Country Coordinator of USAID's implementing partner for its Economic Reform to Enhance Competitiveness (EREC) project, BearingPoint, received an e-mail from Turkmenistan's Cabinet of Ministers expressing gratitude for the project's work with the Institute for Strategic Planning and Economic Development (ISPED) to develop the Concept for Private Sector Development. Since June 2008 the project brought several consultants that provided training and advice to ISPED staff on best practices in areas such as privatization, strategy development, and project management. ISPED and the Cabinet of Ministers have separately expressed their desire to continue cooperation with USAID/EREC as specific elements of the program are implemented once the concept note is approved by the Cabinet of Minsters. Regrettably, if additional funds are not allocated USAID will have to drop its engagement with ISPED and potentially slow the progress of ongoing economic reforms in Turkmenistan. END SUMMARY. ¶3. (SBU) The full text of the message sent via e-mail on January 6 by Nurgeldi Meredov (please protect),Economic Development Department in the Cabinet of Ministers of Turkmenistan, to USAID/BearingPoint's, Wepa Myalikguliyev, is as follows: QUOTE Dear Wepa, Happy New Year! We wish you further success in your professional life and health and happiness in your family life. We appreciate USAID/EREC Project's cooperation and support it has devoted for the development of the Concept of supporting and developing entrepreneurship in Turkmenistan. You will receive a copy of the final version of the Concept around the beginning of February ¶2009. We, as the Economic Development Department of the Cabinet of Ministers of Turkmenistan, regulate ministries and agencies that are related to Socio-economic development planning, designing industry development and competitiveness strategies and the management of fiscal and monetary policies. We are aware of all your cooperation with such ministries and agencies and are looking forward to your further successful work with them including the design of the Entrepreneurship support Program in Turkmenistan. Best regards END QUOTE ¶3. (U) Since beginning its work in Turkmenistan earlier in 2008, USAID's Economic Reform to Enhance Competitiveness (EREC) project has worked in three main directions in Turkmenistan (ref A). First, since June 2008 it brought several consultants that have provided training and advice to ISPED staff on best practices in areas such as privatization, strategy development, and project management. Next, beginning in October 2008, the SRC hosted a Public Sector Audit and Accounting Advisor for six weeks that provided assistance in areas identified by the Chamber, such as training on audit standards, financial audits, and performance audits; an assessment of the Chamber; and, from this assessment, prepared a development plan. Finally, the EREC project recently assumed responsibility for USAID's long-standing work in the accounting sector, and has already established new cooperation with the Supreme Council on Science and Technology under the President of Turkmenistan to prepare university lecturers to introduce the principles of International Financial Reporting Standards (IFRS) into higher education intitutions' curriculum (ref B). ¶4. (SBU) COMMENT: Technical assistance opportunities in Turkmenistan's economic sector have been very limited in recent years. This situation appears to be slowly changing due in part to the strong relations that USAID's partners have been able develop with new institutions like the Institute for Strategic Planning and Economic Development (ISPED),the Supreme Regulatory Chamber, and the Supreme Council on Science and Technology. BearingPoint's Myalikguliyev, a former Embassy Ashgabat FSN, is a good example, and ASHGABAT 00000040 002 OF 002 the positive feedback he received from the Cabinet of Ministers is unprecedented. ¶5. (SBU) COMMENT CONTINUED: Increased funding is necessary in order to capitalize on these opportunities, each of which support the stated USG priority of promoting introduction of basic market reforms to move Turkmenistan toward greater integration with the region. Current FY09 funding levels, however, will compel USAID to drop its engagement with ISPED and potentially slow the progress of ongoing economic reforms in Turkmenistan. END COMMENT. MILES