OREANDA-NEWS. August 17, 2009. The enabling environment is being built for business initiatives in Turkmenistan. To create powerful incentives to further expansion of the activities of Turkmen private construction companies President Gurbanguly Berdimuhamedov issued a number of the resolutions. Opening up new opportunities for growth in this sector of business the Turkmen leader’s initiatives promote implementing the important national social and economic programmes aimed at accelerated development of the region and the country as a whole, reported the Official website turkmenistan.gov.tm.

In this context, the President’s national programme on the improvement of the social and living conditions in villages, settlements, towns in etraps and entrap centres for the period of 2020. Until recently the subdivisions of the Ministry of Constrcution of Turkmenistan and foreign companies were the general contractors of the investment projects on construction numerous social and economic facilities in the framework of this programme.

However, the scale and dynamics of the reforms initiated by the Turkmen leader require active employment of the profound potential of the private sector of Turkmenistan economy to achieve these goals. For this purpose the President issued the Resolution “On Acceleration of the Pace of Construction in Viallages, Settlements, Towns in Etraps and Etrap Centres” this May.

According to the Ministry of Economy and Development of Turkmenistan, the document authorizes the government organisations to involve the local construction enterprises of any forms of ownership that have the relevant licenses as the general contractors of logistics and including housing construction in villages, towns in etraps and etrap centres. This document is another important step to promote fruitful collaboration between the state and private sector that is of paramount importance for the further progress of the country.

Today dozens of the private construction companies have concluded the contracts with the local khyakimliks and started construction of a variety of facilities in all the regions of the country in the framework of the rural development programme. They are building schools, hospitals, kindergartens, cultural centres, sports facilities, swimming pools, houses. More often the Turkmen private construction companies conclude the contracts for construction of facilities for the other sectors of the national economy including the oil and gas sector.

Another important step to expand this partnership was the Resolution recently issued by the President of Turkmenistan that allows the Turkmen private construction companies to participate in the international tenders in the territory of the country on parity basis with foreign companies. This measure provide local entrepreneurs with an opportunity to carry out construction works at the contract prices using high-quality construction materials, equipment, technologies, i.e. in compliance with the international standards. To carry out construction works the local companies must have the licenses issued by the commission of the Ministry of Turkmenistan.

Thus, the uniform and equal conditions are established for all players on the national construction market that completely meets the principles of market economy. Today dozens of the local private companies that earned the high reputation for numerous successful projects operate on this market. For example, since 2008 the construction companies Ajayip Bina, Doganlar, Ak Tam have been building 15 apartment houses in the western part of Ashgabat, along Neutrality Avenue, the satellite town of Ashgabat – Abadan. The customers of these facilities are the governmental organisations, for the most part town khyakimliks.

It is expected that this year the construction projects involving local private companies will increase in number. To accelerate the pace of construction work in the country the President instructed the Ministry of Trade and Foreign Economic Relations and the Ministry of Construction Materials Industry to sell domestically produced construction materials at the reduced prices to the population in the administrative centres of the velayats and etraps. Supply of necessary materials and equipment will contribute to expanding operation of local construction companies.

It should be noted that the Turkmen leader’s decisions initiated elaboration of the necessary documents at the level of various ministries that created incentives to promote the Turkmen leader’s initiatives. Thus, according to the recent resolutions of the President the important decisions to draft the type designs of social and cultural facilities in the framework of the rural development programme, expand the activities of the Turkmendovlettaslama Institute, regulate the period of designing construction documents , built the asphalt plants in the country were made.

Moreover, the Ministry of Economy and Development of Turkmenistan is to include the facilities to be built in the framework of the rural development programme in the special inventories (registers). The Ministry of Finance of Turkmenistan is to make prepayment of up to 30% to local subcontractors, which are involved in the construction projects financed out of the State budget. The authorized banks throughout Turkmenistan are to ensure payment for the logistical and construction work completed to the amount confirmed by building owners.

Active involvement of private construction companies in implementing the national programme produces a multiple effect creating powerful incentives to further development of construction materials industry, thousands new jobs and improving production infrastructure of the construction industry.