TURKMENISTAN FACES SHORTAGE OF SKILLED LABOR

UNCLAS SECTION 01 OF 02 ASHGABAT 000115 SENSITIVE SIPDIS STATE FOR SCA/CEN; EEB COMMERCE FOR EHOUSE/DSTARKS E.O. 12958: N/A TAGS: ECON PGOV ELAB SOCI TX SUBJECT: TURKMENISTAN FACES SHORTAGE OF SKILLED LABOR ASHGABAT 00000115 001.2 OF 002 ¶1. (U) Sensitive but unclassified. Not for public Internet. ¶2. (SBU) SUMMARY: Turkmenistan faces a shortage of skilled workers capable of operating and repairing increasing sophisticated machinery and equipment. Prior to Turkmenistan's independence, many highly-trained workers needed for technical jobs came to Turkmenistan from other parts of the former Soviet Union. The collapse of the Soviet Union and subsequent trends has resulted in a shortage of such workers in the country. In particular, Russian-speaking engineers left Turkmenistan in large numbers in the 1990s. The preparation of future workers suffered when former Turkmen President Niyazov restricted the teaching of math and science in schools. The lack of enough local skilled workers remains a challenge for foreign companies seeking to set up operations in Turkmenistan. END SUMMARY. ¶3. (SBU) As a result of post-Soviet "brain drain" and Niyazov's policy de-emphasizing education in mathematics and science, Turkmenistan lacks a sufficiently large skilled workforce capable of addressing the needs of a rapidly modernizing economy. The ongoing construction boom has created demand for technical staff that can install heating, air conditioning, and electrical equipment in the new buildings. New buildings with state-of-the-art mechanical and building control systems require regular maintenance. Few Turkmen technicians have been trained to fix this equipment and restrictions on the percentage of foreign employees hinders companies' staffing efforts. ¶4. (SBU) The building that houses the Central Bank of Turkmenistan illustrates the extent of the problem. Completed in 2004, the building experienced air conditioning and electronic access systems failures in the summer of 2006. There was no local company capable of making the necessary repairs. Finding foreign experts willing and able to come to Turkmenistan was a challenge. Bank personnel were reportedly required to work in temperatures over 100 degrees Fahrenheit. Some Central Bank employees finally stopped coming to work, knowing they would most likely be fired. The French construction company Bouygues, which is active in Ashgabat's construction market, was able to mount additional AC units as a temporary fix, until foreign repair personnel came to Turkmenistan. Also in 2006, the same problems occurred in the tallest building in the Turkmen capital, the 25-story Oil and Gas Complex. The government addressed problems of malfunctioning equipment to the original construction contractor Bouygues, which demanded payment of USD one million per year for maintenance. Instead, the government opted to rely on various local companies to maintain the Oil and Gas Complex building. ¶5. (SBU) TM Cell, the government-owned mobile operator, also has problems associated with the lack of qualified local technicians. Company reps reported that it still has regular network outages and poor signal trouble, mainly due to a lack of properly trained technicians. Chinese firm Huawei, which supplied TM Cell with most of its telecommunications equipment, reportedly has not provided training for TM Cell employees. Such training was not a contractual obligation for Huawei. ¶6. (SBU) President Berdimuhamedov reinstituted math and science curricula in schools and universities in 2007. He has publicly stated that Turkmenistan needs more engineers and technicians. He has encouraged Turkmen youth to study technical professions, technology and modern science. In order to accomplish this goal, however, many students have to study outside Turkmenistan to get the appropriate level of education or training. Some multinational companies provide ASHGABAT 00000115 002.2 OF 002 technical training for their local employees. Malaysian energy company Petronas has reportedly spent large sums on educating local exploration engineers, geologists, and technical people. Other companies, such as Burren Resources and Schlumberger, offer scholarships to their local employees for advanced degrees in other countries. ¶7. (SBU) COMMENT: The Turkmen government has stated its intention to bring the country into the high technology era. However, Turkmen educational curriculums need to be overhauled and higher standards adopted in order to prepare young Turkmen for the demands of a 21st century economy. At the same time, there needs to be an urgent effort to improve the technical qualifications of current workers. According to representatives of foreign equipment suppliers, lack of maintenance is already a critical problem in a wide range of equipment, from commercial chillers used to cool Ashgabat's many high-rise buildings, to the gas turbines that generate electricity. Still, the government appears reluctant to allow too many of its students to go overseas, making the shortage of skilled workers more serious as each year goes by. END COMMENT. CURRAN