BOUYGUES APPEARS TO HAVE A SHELF LIFE IN

C O N F I D E N T I A L ASHGABAT 000086 SIPDIS STATE FOR SCA/CEN, EEB E.O. 12958: DECL: 01/19/2019 TAGS: PGOV PINR EIND CIS FR TX SUBJECT: BOUYGUES APPEARS TO HAVE A SHELF LIFE IN TURKMENISTAN, BUT WORK CONTINUES REF: 08 ASHGABAT 1487 Classified By: XXXXXXXXXXXXXXXXXXXX, reasons 1.4 (B) and (D). ¶1. (C) During a January 18 conversation with XXXXXXXXXX, XXXXXXXXXXXXXXX shared the following comments about Bouygues's relations with the Turkmen government and its business prospects in the country: -- It is well known in the company that Minister of Construction, Shamuhammet Durdylyev, and former Minister of Communications, Resulberdi Hojagurbanov, do not like Bouygues. While Pupulin did not know why these officials, particularly Durdylyev, dislike Bouygues, company employees have the impression that there is a negative trend developing. As more and more ministers develop an aversion to the company, the company will eventually leave Turkmenistan. -- To illustrate the excessive scale of the buildings that house Turkmen government ministries, XXXXXXXXXXXXXXX explained that 170 employees will work in the new Ministry of Communications building -- which contains 15,000 square meters of floor space. -- XXXXXXXXXXXXXXX mentioned that Bouygues is currently constructing a building for the "Protocol Department," adding that the government might need this building for a meeting of the Commonwealth of Independent States that will take place in Ashgabat in early 2010. He added that this meeting might also be the stimulus for the five-star hotel that Bouygues is building, as well as the new Ministry of Foreign Affairs building. -- Payment delays can also hold up the commencement of new projects and postpone continuation of work already in progress (reftel). Problems locating cement domestically -- which, while cheaper, is not the best quality -- also negatively impact the project cycle. ¶2. (U) Bouygues Regional Director Charles Santer and Commercial Director for Central Asia Aleksy Reshov met with President Berdimuhamedov on January 16. Reshov updated Berdimuhamedov on current projects in a meeting on January 16, especially interior design of the five-star hotel under construction. They also discussed future cooperation. ¶3. (C) COMMENT: Notoriously secretive and insular due to fears of commercial espionage, information about Bouygues' activities has been one of the toughest nuts to crack in Turkmenistan. XXXXXXXXXXXXXXX 's comments appear to be further confirmation of Bouygues's troubles in Turkmenistan. END COMMENT. MILES