Turkmenistan Awards US $ 1.5 Billion Contracts in January 2008

Ashgabat, 29 January 2008 (nCa) --- The year started at brisk pace in Turkmenistan. The weather remained very cold throughout January but business atmosphere was pretty hot: Turkmenistan awarded construction and supply contracts worth almost US $ 1.5 billion to foreign companies and local companies.

This is the first time since independence that Turkmenistan has signed contracts with this big cumulative price-tag in a single month. This is also the first time that the value of contracts signed in Euro has exceeded the value of contracts signed in US dollars.

As of 29 January, the contracts signed since the start of the year amounted to Euro 534 million and US $ 532 million. At the current exchange rates of nearly 1.48 dollars to a Euro, it comes to a total of US $ 1322 million. Add to this the smaller contracts awarded to local and foreign companies, and the figure easily exceeds US $ 1.5 billion.

Here are the details:

Five-star hotel contract

Bouygues of France will build a five star hotel worth Euro 270 million in Ashgabat. The hotel complex will occupy an area of 95000 square meters. The hotel would be suitable for VVIP guests. Work should start in February 2008 and the project should be ready by December 2009.

Powerhouse contract

TurkmenEnergo, the Turkmen electro-energy corporation of the ministry of energy and industry will sign a contract with the Turkish company Lotus ProjeAkaryakit Enerji for construction of a 254 megawatt power plant. The plant would use natural gas as primary fuel.

Total value of the contract is Euro 120 million. The power generated by the plant would mainly be used by metropolitan Ashgabat and Ahal province.

Work should begin in March 2008 and the plant should be ready for commissioning by February 2010.

Road Bridges Contract

Garanti Koza LLP, a company registered in the Great Britain, has been awarded contract to build 28 bridges on the under-construction Mary-Turkmenabat highway.

Total value of the contract is US $ 100 million.

Work should begin in February 2008 and all the bridges should be ready by October 2008.

Gas Compressor and Booster Station Contract

TurkmenNeft will sign a contract with the Ukrainian company Frunze Sumy Machine Building Scientific Production Association for construction of a gas booster station at Hazar.

Total value of the contract is US $ 68.9 million. Construction work should begin in February 2008 and the project should be ready by July 2009.

Housing Construction contract

Ministry of healthcare and medical industry will sign contract with the Turkish company Efor for construction of a sanitarium in Bairamaly town in Mary. The contracts includes reconstruction of existing structures. The new sanitarium complex would be able to accommodate 250 persons simultaneously. Total cost of the project is US $ 29.7 million. Work should begin in April 2008 and the project should be ready by October 2009.

Another housing construction contract

State service TurkmenStandartly (TurkmenStandards) will sign a contract with the Turkish company Tema Muhandeslyk for design and construction of luxury apartments. The project will have 36 apartment units and related facilities. Total cost is US $ 10.8 million. Work should begin in March 2008 and the project should be ready by December 2009.

Still another housing construction contract

Ministry of culture and broadcasting would sign a contract with the Turkish company Sehil for design and construction of a building complex in Ashgabat. It would include main building for Turkmen national institute of culture, special musical school and hostel at Turkmen national conservatory, kindergarten for 200 kids, school for 600 students and three residential building of 72 apartments each. Total value of the contract is US $ 130 million. Work should begin in February 2008 and the project should be ready by August 2009.

Cotton Yarn factory contract

Ministry of textiles will sign a contract with Cotam Enerprises, a company registered in British Virgin Islands, for construction of a cotton yarn factory in Dashoguz city. The factory will have the capacity to produce 14500 tons of cotton yarn annually. Total cost of the project is US $ 76.521 million. Work should begin in February 2008 and the project should be ready by October 2009.

Spinning mills contract

Ministry of textiles will sign a contract with Engin, a company registered in British Virgin Islands, for construction of a cotton spinning factory in Turkmenabat city of Lebap province. It will have rated capacity of 17700 tons of yarn per annum. Total cost of the project is US $ 85.359 million. Work should begin in February 2008 and the project should be ready by October 2009.

Grain Elevators Contract

Hungarian IKR Babolna joint-stock company has been picked as a winner of the international tender to construct grain elevators in Akhal, Dashoguz and Mary provinces. One of the grain elevators with the capacity of 50 thousand tons will be built on the border of Serahs region and Altyn Asyr district of Ahal province, another one with the capacity of 30 thousand tons - in the village of Dushak of Kaahka region, the third elevator with the capacity of 50 thousand tons - in Ruhubelent region of Dashoguz province and the last one with the capacity of 50 thousand tons - in Yolatan region of Mary province.

In accordance with a decree signed by the president of Turkmenistan, the Bread Products Association of Turkmenistan has been instructed to sign a contract with IKR Babolna joint-stock company for projects development, landscaping of adjacent territories and construction of grain elevators. The total cost of the contract is US $ 31,635 million. The construction of all facilities should start this February, and the facilities should be commissioned in June 2009. [This write up comes from Turkmenistan.ru]

Another contract for grain elevators

German company Unionmatex Industrieanlagen GmbH has won Euro 144 million contract for construction of grain elevators and related facilities in Turkmenistan.

President Berdymuhamedov signed a resolution Monday, clearing way for signing of the contract, during a meeting with Grobe Jurgen, president of Unionmatex. Riggler Stefen (phonetically spelled), Unionmatex manager for food processing industry projects, was also present during the meeting.

Here is the breakdown of the contract obligations:

In Ruhabat etrap of Ahal province: Construction of a grain processing complex including elevator with capacity of 100000 tons per annum, mill unit for production of 80000 tons of wheat flour annually, bread and bakery unit with 40 tons per day production capacity, and macaroni plant with daily capacity of 48 tons. Additionally, there would be a polypropylene bag production facility to turn out 18 million bags a year. The contract also envisages construction of a shipping centre. Total value of the portion of contract related to Ruhabat etrap is Euro 56.8 million. Work should begin in April 2008 and the objects should be ready by August 2010.

In Serdar etrap of Balkan province: Construction of a grain processing complex including a grain elevator with annual capacity of 50000 tons and a wheat flour production plant with annual capacity of 50000 tons. The value of this portion of the contract is Euro 19.7 million. Work should begin in July 2008 and the facility should be ready by May 2010.

In Gerogly etrap of Dashoguz province: Construction of a grain processing complex including a grain elevator with annual capacity of 50000 tons, and wheat flour production unit for annual capacity of 50000 tons. Total value of this part of the contract is Euro 19.7 million. Work should begin in January 2009 and the complex should be ready by December 2010.

In Turkmenabat city of Lebap province: Construction of a complex including grain elevator with annual capacity of 100000 tons and a wheat flour production with annual output of 80000 tons. The total cost of this portion of the contract is Euro 28.1 million. Work should begin in October 2008 and the units should be reay by October 2010.

In Mary etrap of Mary province: Construction of a complex including a grain elevator with capacity of 50000 tons per annum and a wheat production unit with capacity of 50000 tons per annum. Total value of this part of the contract is Euro 19.7 million. Work should begin in April 2009 and the units should be ready by January 2011.