OREANDA-NEWS. December 22, 2009. Turkmenistan is integrating in the world economy on terms of an equal, strong partner that invariably abides to its commitments. Furthermore, having escaped all those difficulties that many economies across the world had to face, the adverse trends formed on the world financial markets in recent years, Turkmenistan demonstrates desirable stability and sustainability. This is a good groundwork for ‘a head start’, attraction of investments and dynamic development.

The reputation of our country as a dependable partner is confirmed fully by the experts of the international financial organisations, the sticking examples of investors’ confidence in the reliability of the building of Turkmen economy and its growth prospects. Thus, the decision to invest almost USD 1 billion in the projects in Turkmenistan was adopted at the roundtable of the specialists of the ministries and departments of Turkmenistan and the representatives of and the Coordination Group including the Islamic Development Bank, the Saudi Fund for Development, the Kuwait Fund for Arab Economic Development, the OPEC Fund for International Development and the Abu Dhabi Development Fund, which took place in Ashgabat on October 17-18, 2009. The relevant Protocol was signed.

At the recent meeting of the Cabinet of Ministers of Turkmenistan President Gurbanguly Berdimuhamedov underscored the importance of this event. Touching upon in detail on the projects approved by the Coordination Group, the Turkmen leader stated with satisfaction that this testified to the intense interest of foreign investors in enhancing cooperation with Turkmenistan. Such international forums contributed expanding business cooperation with the world’s leading financial institutions that was a priority aspect of Turkmenistan’s economic policy. The President characterized wide attraction of investments – financial resources and modern technologies in the economy of Turkmenistan as a priority task, an essential condition of the further social and economic progress of the country.

The harbour of Turkmen economy protected from the economic storm looks in an increasingly favourable light. The large scale and scope of investment projects became the characteristic feature of the agreements reached during the roundtable in Ashgabat. The investors approved 9 projects – more than those have ever been implemented over the history of fruitful cooperation between our country and the the Islamic Development Bank since 1994. This is not surprisingly for Turkmenistan as an island of stability and economic growth in the sea of the world economic crisis is attractive for investments as never before.

This reputation is enhanced among the international business circles. In particular, one of the leading experts of the Islamic Development Bank Sobir Komilov, who took part in the 34th annual meeting of the Board of IDB Governors in Ashgabat in June 2009, said in an interview:

- Unlike other countries where the banking sector showed its weakness, the financial crisis has not had such an impact on Turkmenistan. The main reason is a well thought-out economic policy. The complex reforms are implemented in the country and the Government actively encourages the development of small and medium businesses, the social sector. Today there are all prerequisites for accelerating the social and economic development – these include abundant reserves of natural resources, financial resources, and reliable legal framework. The successful reforms in the monetary policy, in particular very successful denomination are of primary importance. All this speaks in favour of Turkmen economy.

The forecasts and reports on the economic conditions presented by the specialists from other authoritative international financial institutions, in particular the International Monetary Fund. Forecasts are only forecasts, and the readiness of the international business community to invest in the large-scale projects that have been and will be launched in the country testifies to its increasing confidence in Turkmenistan better than any reports. In this regard, according to experts, it is important that each of the fields of investments in Turkmenistan is already at the centre of attention. To achieve the goals of the reforms the Government has invested its own funds in these fields. This is being done in the period when the other countries are curtailing the activities of this kind. This fact became one of most decisive for foreign investors.

The projects aimed at developing the national health system, transport infrastructure, communal services and encouraging private business were approved during the roundtable at the President Hotel. These projects were presented in detail by the high-ranking officials and specialists of the national ministries and sectoral departments to the investors.

Three projects presented by the Ministry of Health and Medical Industry of Turkmenistan were approved. These included construction and equipment of the Dental Centre in Ashgabat that will extend the network of the modern medical centres built in the Turkmen capital in recent years. Construction of a mud cure clinic for 600 patients in Mollakara will enable to implement fully the potential of the healing Mollakara Lake. As is known, the health-improving centres have been built in Mollakara recently with the assistance of the Islamic Development Bank. An enterprise producing infusion solutions will be built and put into operation that will be an important step to develop medical industry in the country.

A number of the promising projects are aimed at developing transport infrastructure that is especially important for Turkmenistan – the country with the vast expanses of the Karakum Desert and the magnificent mountain ranges that is situated on the major trade routes. Turkmenistan has launched construction of the transport corridors of regional and international importance – the North-South and East-West and the large-scale projects in the f rail, road and air transport sector. The foreign investors have expressed the willingness to contribute to this work.

Thus, the projects presented by the Ministry of Railway Transport on the development of the telecontrol and communications network and power supply systems of the Ashgabat-Karakum-Dashoguz railway and the Bereket-Gyzylgaya-Uzen railway – an important section of the transnational transport corridor North-South under construction were approved during the roundtable. Also, investments will be made in the project presented by the Turkmenavtoyollary State Concern on reconstruction of the project the 225-km Turkmenistan-Kazakhstan highway, which runs through Garabogaz town. This project is of significant importance for further development of the unique resources of the Garabogaz Gulf and the region as a highway section of the North-South transnational corridor. By the way, it is the most significant project of the investment package – it is planned to invest USD 337.5 million in reconstruction of the highway. Foreign investment will be attracted to build a 3,500-metre runway in Turkmenabat town.

The investors showed interest in the communal services projects such as the further development of the famous fresh water deposits Yazkhan that will improve water supply in the administrative centres and other urban and rural areas of the region presented by the Balkan Velayat Khyakimlik. Such attention is natural for the reforms that are aimed at improving the living conditions in big cities as well as small villages.

The investors’ willingness to collaborate with the banking system of Turkmenistan to finance small and medium businesses is deemed quite logical in the light of the successful reforms launched in the banking sector that plays an increasingly important role in promoting economic growth.

The partners will adjust the loan agreements. The IDB Coordination Council is expected to provide the funds within the period of 20-25 years. The Islamic Development Bank – a major international financial institution established in 1975 provides the more favorable conditions for partners.

Thus, the roundtable in Ashgabat and the documents signed during the meeting evidence the high interest of the foreign business circles in increasing cooperation with Turkmenistan as a country with the profound economic potential as well as the support for the policy of progressive reforms initiated by President Gurbanguly Berdimuhamedov.

The joint projects that will be implemented in our country will promote cooperation for the common benefit. These investments are another contribution to building a competitive economy integrated in the world economy. Furthermore, if the ultimate goal in many regions of the world is to keep the economies afloat, Turkmenistan launches the large-scale investment projects that contribute to its economic wealth. In this regard Turkmenistan has something to offer to partners. The world community shows interest in our experience in prudent management of resources, financial operations, investments that are made only in secure and safe assets and projects. Therefore, foreign investments, which are directly proportional to the growth of international recognition of the brilliant future of our Motherland, increase in scale.