Turkmenistan Unveils Plans for Tourist Zone at Caspian Coast

Ashgabat, 22 July 2007 (nCa) --- Turkmenistan presented Saturday a comprehensive package to attract investments for its first tourist zone at the Caspian coast.

The package, elaborated in a presidential resolution, offers simplified visa rules for tourists, tax break, state guarantee for protection of investments, unrestricted conversion of currency, tax free import of equipment, machinery and material for the tourist zone, repatriation of profits and other benefits.

The government of Turkmenistan has pledged US $ one billion to develop infrastructure and support facilities for the tourist zone.

The national tourist zone will be located in the territory of Avaza settlement in Turkmenbashy, the Caspian port city of Turkmenistan.

The entire tourist zone will materialize in three phases – the first phase, announced Saturday, will occupy an area of 750 hectares.

Investors can lease plots in the tourist zone for a period up to 40 years.

The scale model of the zone, available for inspection by potential investors, shows 60 high-rise hotels and rest homes ranging from 3 to 20 floors. The plans envisage restaurants, cafes, bars, covered and open swimming pools, solariums, sports halls, fitness cnetres, playgrounds, hydroparks, culture centres, health improvement centres, shops etc.

Some investors have already come forward with their investment proposals. Six investors presented their plans for buildings hotels in the tourist zones. These hotels will range in capacity from 200 to 600 guests. Total capacity of these hotels would be 2230 guests.

Here is the unofficial translation of the presidential resolution for creation of the Avaza tourist zone:

The resolution of the president of Turkmenistan “About the National Tourist Zone ‘Avaza’”

With the purpose of improvement of quality of tourist services, including hotel business and corresponding kinds of activity, development of tourism infrastructure in accordance with international standards, creation of favorable investment climate for formation of recreation area for citizens, resolve the following:

1. To create the national tourist zone “Avaza” on eastern coast of Caspian Sea and to adopt the attached Addendum about it.

2. The Service on land resources at the Ministry of agriculture of Turkmenistan jointly with khakimlik [municipality] of Turkmenbashy city and the State Committee of Turkmenistan on tourism and sport are responsible to define the borders of the national tourist zone “Avaza”.

3. The State Committee of Turkmenistan on tourism, Ministry of construction and industry of construction materials of Turkmenistan, khakimlik of Turkmenbashy city is responsible for working out and adoption on agreement of Cabinet of Ministers of Turkmenistan of the development plan of national tourist zone “Avaza”.

4. To establish interdepartmental commission for consideration of investment projects on the territory of the national tourist zone “Avaza”. The commission should be established at State Committee of Turkmenistan on tourism. To adopt the Regulations on commission and its structure.

5. For state support of formation and development of national tourist zone “Avaza”, and for ensuring of guarantees of investments return:

а) The State Service on Registration of Foreign Citizens is obliged to issue the visas and permissions on priority basis to foreign specialists and workers, arriving to national tourist zone “Avaza” for the period of construction and functioning of objects;

to draw up in simplified order the entrance visas for tourists, arriving in Ashgabat and Turkmenbashy for tourism in the national tourist zone “Avaza” at availability of tour tickets;

b) The ministry of economy and finances of Turkmenistan is obliged to conduct the state registration without levying of registration fees for the following persons:

the entities, carrying out construction and exploitation of objects in national tourist zone “Avaza”;

investment projects, implemented on territory of national tourist zone “Avaza”;

c) The Central Bank of Turkmenistan is obliged:

in the case of necessity of transfer by foreign investors of unused revenue, earned as the result of Manat-paid services for residents of national tourist zone “Avaza”, to ensure the conversion of mentioned Manat funds into hard currency;

to ensure the conversion of Manat funds into hard currency for ministries, departments and enterprises of Turkmenistan in case of the necessity of repayment of credits in the form of foreign currency, for payment for construction works and services, for purchase of production materials, of equipment and of goods;

to establish the special order of operations, expenditures and transfers of cash and cashless funds in foreign currency in the national tourist zone “Avaza”;

d) The State Commodity and Raw Materials Exchange of Turkmenistan is obliged to register the contracts on objects of national tourist zone “Avaza” without levying of exchange fees;

e) The Main State Service “Turkmenstandartlary” [Turkmen standards] is obliged to make the certification of equipment and of materials, imported by investors and other persons, which carry out activity on construction and exploitation of objects on the territory of national tourist zone “Avaza” without levying of payment of certification procedures;

f) The State Insurance organization of Turkmenistan is obliged to insure the property interests of investors and other persons, which carry out activity on he territory of national tourist zone “Avaza”. The insurance should be made in accordance with rules of insurance and international practice of insurance;

g) The State National Service “Turkmenhovayollary” [Turkmen air ways] , Ministry of automobile transport and of highways of Turkmenistan, the Board “Turkmendenizderyalary” [Turkmen sea and rivers] are obliged to ensure:

in immediate order the shipment of goods, meant for construction and exploitation of objects in national tourist zone “Avaza”;

quotas for international and local trips for transportation of specialists, workers and tourists;

the organization of chartered flights for these purposes.

6. At State Committee on tourism and sport to create the department for examination of investment projects and on administration of national tourist zones. To increase the staff of central office of Committee by five units.

7. The ministry of protection of environment of Turkmenistan is obliged to control the observance of environment-protection legislation on the territory of national tourist zone “Avaza” in the course of projection, construction and exploitation of objects of tourist industry.

8. The State Committee on tourism and sport of Turkmenistan is obliged within one month to draft and present to Cabinet of Ministers of Turkmenistan the following:

on agreement with Main State Tax Service of Turkmenistan and Ministry of Economy and finances of Turkmenistan the proposals on amendments to Tax Code of Turkmenistan with the purpose of creation of tax allowances on property, on income, allowances on value added tax for subjects of national tourist zone “Avaza;

on agreement with Ministry of Economy and finances of Turkmenistan and Ministry of Justice of Turkmenistan the proposals on amendments to legislation of Turkmenistan, deriving from the Present Decree.

9. The Vice-Chairman of Cabinet of Ministers of Turkmenistan H.Saparlyev, chairman of the State Committee on tourism and sport of Turkmenistan G.Hodjaberdyev, khakim of Turkmenbashy city A.Pomanov are responsible for observance of implementation of the present Decree.

President of Turkmenistan

Gurbanguly Berdymuhamedov