ECOThe Monthly News Journal of ECO CulturalTIMES Institute (ECI) www.ecieco.org June 2009

"Avaza" , Turkmenistan 's 1st National Tourist Zone Turkmenistan Special Issue

Rl. 25000. (Iran), $ 2.50 (ECO Region), $ 4.00 ( Outside ECO Region)

CONTENTS 3

In The Name of Most High "Avaza" National Tourist Zone

June 2009 No. 6

Managing Director Mohammad Rajabi President, ECI Head of Supervisory Board Hafiz Muhammad Jamil Owaisi Executive Director Media Supervision Issa Rezazadeh Editor in Chief Ali Sabzalian Assistant to Editor in Chief Fereydoun Tarapour Opening ceremony of putting into operation, Avaza National Tourist Zone, the first in Editorial Board Turkmenistan, was held on June 15, 2009. The President of Turkmenistan launched Parisa Firouzkouhi the 1.5 billion resort on the shore of the Caspian Sea along Turkmenbashi city. On Maryam Shafa this occasion, lavish ceremonies were staged for foreign guests and international media. The project is another sign of change in the Turkmen economy, which until Sikandar Abbas Zeidi recent years was mostly closed to foreign corporations; In Focus, P. 24. Arts & Culture Desk Mitra Lotfi Shemirani Photographer Taymaz Kaviani ECO Region's Pink Flamingo Printing & Marketing • Inside ECO Mohammad Sadegh Ashjaei --ECO Secretariat 18 Mohammad Joodi --ECO Cultural Institute 20 Graphic Designer • Special Report Arash Torabi --Ashgabat Int'l Energy Forum 22

Address: No. 27, Pardis St., Molla Sadra IN FOCUS Ave., Vanak Sq., Tehran (I.R. Iran) -"Avaza" National Tourist Zone, P.O.Box: 19395/6414, Tehran (I.R.Iran) - The Gate to Turkmenistan's New Tel: (+98-21) 88795330-1 Open-Door Policy 24 Email: [email protected] [email protected] • Energy & Minerals Website: www.ecieco.org --Turkmenistan's Riches of "Blue Fuel" Reserves 30 --Iran, China Ink $5b Oil Deal 34 • Trade & Investment --Kyrgyzstan Investment Potentials, Attracting Turkey One of the natural world's most breathtaking sights is watching TO THE LETTER 5 as One of Top 5 Kyrgyzstan's Trade Partners 35 the pink and crimson clouds of flamingos that flock over the sky. --Tricks of Trade in Kazakhstan 36 Pink Flamingos are gregarious EDITORIAL 5 • Transportation wading birds known for their -- Interview: "ECO Region, the distinct pink and crimson plumage. Business Link Between Asia & Contrasting combination of white NEWS Europe", Haydar Ozkan 38 and red color of feathers create a surprisingly fantastic picture of • World News 6 --North-South Transportation triumph and rejoicing of the nature's Corridor, Iran-Turkmenistan • Regional News perfect creatures. The birds could Railroad Project 40 be found almost in all ECO Member --Economy 8 --Upcoming Int'l Tradeshows States; Environment, P. 48. --Culture 16 in ECO Region 42

4 CONTENTS

ECO Region's New Mission, Business Link between Asia & Europe SOCIETY • Sports --Interview: "Pakistan Is Committed to Promote Peace and Stability through Sports", Mr. Pir Aftab Hussain Shah Jilani 60

LEISURE • Travel --İzmir , Turkey's Cultural & Historical Tapestry 62 • Food Corner --Shurpa, Common Cuisine of ECO Region 66 Haydar Ozkan: Joining TIR system minimizes administrative and financial burdens as well as customs duties and taxes that may become due and are covered by an international guarantee. In another word, goods move across international borders with minimum interference, encouragement of international trade, and economic benefits for individuals and nations; Transportation, P. 38.

ECOThe Monthly News Journal of ECO CulturalTIMES Institute (ECI) www.ecieco.org June 2009

53rd Int'l Venice Biennale

OTHER VOICES --Indonesia Takes Silk Road to Avoid Recession 44 --Pakistan, Iran Sign Gas "Avaza" , Turkmenistan 's 1st National Tourist Zone Pipeline Agreement 45 Turkmenistan Special Issue

Rl. 25000. (Iran), $ 2.50 (ECO Region), $ 4.00 ( Outside ECO Region)

Turkmen Girl with traditional attire OPINION Photo: Taymaz Kaviani --Uzbekistan, Place of Religious Tolerance 46 Note: The views expressed by the writers/ authors of ENVIORNMENT the articles, published in "ECO Times" do not necessarily represent the views of ECI, but are --ECO Region's Pink Flamingo, the personal views of the authors themselves. ECI Miracle of Meeting with reserves the right/discretion to amend, revise, edit, Dazzling, Dancing Colors 48 delete or scrutinize any part or portion of the text as and wherever deemed necessary.

HEALTH Economic Cooperation Organization is 53rd Venice Biennale is on its full an intergovernmental regional organization swing. One of the most touching --Can Saffron Help Fight established in 1985 by Islamic Republic of Iran, shows this year is held in East- Blindness? 52 Islamic Republic of Pakistan and Republic of West Divan pavilion. This show Turkey for the purpose of promoting economic, is particularly interesting since technical and cultural cooperation among the it represents the connections and ARTS & CULTURE Member States. It is the successor organization of what was the Regional Cooperation for contrasts between Islamic and Development (RCD), founded in 1964, which Western aesthetics. East-West • Visual Arts ended activities in 1979. In the fall of 1992, the Divan, represents 10 artists from --Making Worlds; West Meets East; ECO expanded to include seven new Members, Iran, Afghanistan and Pakistan, 53rd Int'l Venice Biennale 53 namely Islamic Republic of Afghanistan, Republic of Azerbaijan, Republic of Kazakhstan, Kyrgyz and highlights the cross- --"Colors That Never Fade", fertilization between Islamic and Republic, Republic of Tajikistan, Turkmenistan, Western aesthetics that you can Creative Life of Yevgenia and Republic of Uzbekistan. ECO's secretariat Adamova 56 and cultural department are located in Tehran. see all around Venice, thanks to ECO Cultural Institute (ECI) is affiliated with its past pre-eminence as a port; • Archeology ECO and aims at fostering, understanding and Visual Arts, P. 53. --Thatta, Legendary Place of the preservation of the rich cultural heritage of its Members through common projects in the field Fabulous Culture 58 of the media, literature, art, philosophy, sport and education. To the Letter 5

'Quotable yrgyzstan is committed to good and even relations Quotations' Kwith all the States it has cooperated with. President Kurmanbek Bakiyev, Kyrgyzstan

ur people are the real victims of the internation- ll our problems, all our disputes, all our disagree- Oal terrorism…The global mafia profited most Aments can be resolved quickly to mutual satisfac- from drug trafficking and terrorism activities tion if we address the question. President Hamid Karzai, Afghanistan The Late Prime Minister, Benazir Bhutto, Pakistan

niting millions of people, Islamic civilization is t is necessary to emphasize that all our countries Uthe system of values promoting peace and toler- Iand the peoples are historically deeply connected; ance, human ideas and respect for human dignity, our great forefathers had passed a social practice of and humanity and mercy. productive, active, respectable interaction and Coop- President Elham Aliev, Azerbaijan eration. President Emomali Rahmon, Tajikistan

he ten ECO countries have a total population in ountry of Turkey spares no effort to strengthen the Texcess of 400 million. This compares well with Cregional economic cooperation as well as ensuring 491 million of EU population in 27 countries. If EU stability and tranquility in the region. can make a success of Euro, it is at least theoretically President Abdullah Gul, Turkey possible for ECO to come up with a currency of its own. or us there are no near or far countries, large or President Ahmadinejad, Iran Fsmall companies, there are only honest and reli- able partners azakhstan, from the first days of its indepen- President Gurbanguly Berdimuhamedov, Turkmenistan Kdence, presented itself to the world as a truly peace-loving state, a responsible and consistent y not changing the system of education and raising, participant of the process of nuclear disarmament Bone cannot alter the consciousness, and by not al- and the strengthening of global security. These steps tering the consciousness, and consequently the mind, ensured our country a much more effective security it would be impossible to achieve our highest goal – to and favourable conditions for development. build a free and prosperous society. President Nursultan Nazarbayev, Kazakhstan President Islam Karimov, Uzbekistan Editorial Turkmenistan's New "Open Door" Policy

three-member ECI delegation to the Persian Gulf Arab states. both sides of the artificial river, with Ahad been recently invited by the One can easily imagine the look of its picturesque parks, sports facili- Government of Turkmenistan to a the future tourism zone even today. ties, and socio-cultural destination. special ceremony organized in Avaza The airport in Turkmenbashi city, to With a wide range of customs and Tourist Zone. be reconstructed to gain the interna- tax privileges, foreign investors have The highly publicized June 15, 2009 tional status, will be the gateway to been invited to erect modern houses, event, inaugurated by Turkmenistan the future tourist zone. sanatoria, children's health centers, President Gurbanguli Berdymu- The on-going Avaza National Tour- hotels, as well as cultural and enter- hamedov, was specially tailored for ist Zone economic project, which was tainment centers in this tourist zone. foreign VIP guests and international inaugurated by the late Turkmeni- The new "open-door" policy, initiated media representatives to launch the stan president, Safarmurat Niazov, by the energetic President of Turk- second phase of the new $1.5 billion in 2007, aims to become a focal point menistan, has shaped a fresh outlook, resort city, situated on the south-east for tourists from all over the world. profitable investment climate and the shore of the Caspian Sea , created to The project, with an investment over necessary conditions for doing busi- attract foreign tourists and potential $5 billion, includes the construc- ness in a country which, at a time, was investors. Government officials flew tion of a total of five thousand hect- one of the most reclusive countries of in more than 100 diplomats and jour- ares of world-standard cozy beach the region. nalists from the capital, Ashgabat, for resort. A seven-kilometer artificial "For us there are no near or far countries, the morning ceremony. navigable river with running sea wa- large or small companies. There are only Among the delegations present were ter crosses all of Avaza. Along the honest and reliable partners," President officials from all across the region, hydraulic structures, comfortable Gurbanguli Berdymuhamedov said. from ECO Member States to Russia recreation centers will spread on - Editor News 6 World

Mideast Japan Job Creation Business Outlook Biggest Optimistic Challenge Unemployment rather than the price of oil is the biggest challenge facing the Middle East, according to the for- mer head of the World Bank. Islamic World James Wolfensohn, told del- egates at the second annual New Banking Policies Silatech summit in Doha, Qatar, that the need to create Can Help up to seven million jobs per year in the region was daunt- Japanese business outlook improved from ing, Arabian Business wrote. April to June on signs of rising foreign de- He added, "The price of oil mand but was still in negative territory, the is less important than the government said. The index measuring busi- issue of unemployment and ness conditions at companies capitalized at 1 the impact of all of this on billion yen ($10.4 million) or more stood at economic development. -22.4 in the April-June quarter, or better than It's a daunting challenge in the record low of -51.3 in the January-March this region because we're quarter, said a report by the Cabinet Office and not creating jobs quickly the Finance Ministry, Kyodo news reported. enough. The numbers vary It was the sixth straight quarter that the but it's somewhere between industry-wide index has remained negative. "New banking policies can help developing The widely watched index, calculated every Muslim countries recover from the global five and seven million jobs that need creating every three months, is the percentage point differ- economic meltdown", said the Iranian Econ- ence between companies reporting deterio- omy Minister Shamseddin Hosseini. In his year, and we have a back- log of young people that rating business conditions and those report- speech at the 34th annual summit of Islamic ing improvement. Development Bank (IDB) in Turkmenistan, are already unemployed." Hosseini said rising unemployment and pov- Wolfensohn, who served erty in the developing countries is the major for 10 years as the presi- consequence of economic turmoil, IRIB news dent of the World Bank reported. before stepping down in "IDB can considerably reduce the threats Persian Gulf posed by the crisis by promoting usury-free Islamic banking system in other countries," PGCC Single Currency he said. Hosseini said injecting capital into troubled countries is not efficient, adding that May Be Delayed expansion of economic activities among IDB member countries is a proper strategy for Plans by Persian Gulf states to launch a single stabilizing the economy. The Iranian Minis- currency could be delayed by three years to ter also called for increasing multilateral co- 2005, said, "If you have 2013, reports said. "It is impossible for the operation at the regional and trans-regional seven million jobs that are single currency to be launched within six levels within the framework of international needed and only three mil- months." The reports said quoting a senior institutions and Islamic Development Bank. lion jobs are being created, Persian Gulf state official. Referring to the latest annual report of IDB it means that each year you "I expect the new deadline to be 2013," the showing a 5.2-percent growth in capital, are adding to the group official told Gulf Daily News. Last month, the Hosseini said the figure is a sign of banking that remains unchallenged. UAE became the second Persian Gulf nation health. Speaking at the same gathering, Turk- That's not good for them after Oman to abandon the single currency menistan President Gurbanguly Berdimu- and it's not good for society, project. Earlier this year, the Persian Gulf hamedov pointed to major economic projects because you have a group of Cooperation Council (PGCC) abandoned an underway in the fields of industry, railroad young people who are frus- initial 2010 deadline for issuing the com- and road in Turkmenistan, calling for IDB's trated, instead of being able mon notes and coins, saying a joint monetary cooperation in promoting investments in to put their creative energies council would determine a new timetable for these areas. to work for society." issuance. World News 7

US Cyber Crime Nest Russia Destroyed To WTO Only with The US Federal Trade Commission has shut down Kazakhstan, Belarus an American ISP allegedly involved in distributing Russia, Kazakhstan and Belarus plan to join spam and child pornogra- the World Trade Organization as a single phy. US FTC ordered the unit and are ceasing individual talks on ac- closure of Pricewert LLC, cession to the global trade body, Russian which had done business Prime Minister Vladimir Putin said Tuesday under a variety of names, June 09, 2009, AP Moscow reported. including 3FN and APS The move envisages the three neighboring Telecom, Presstv reported. former Soviet countries joining as one eco- Pricewert actively recruit- nomic bloc rather than individual countries ed and colludes with crim- and is likely to slow accession for Russia, inals seeking to distribute which has been seeking membership for 16 illegal and malicious elec- years. tronic contents, including Russia is the largest economy outside of the child pornography, spy- 153-member trade body. "The prime minis- ware, viruses and phish- ters of Russia, Belarus and Kazakhstan will ing. The FTC alleges that notify the WTO of their intention to start ne- the defendant advertised gotiations on the accession of the tripartite its services in the darkest customs union to the organization and the corners of the Internet, in- China end of national negotiations on WTO mem- cluding a forum established bership," Putin was quoted by ITAR-Tass to facilitate communica- news agency as saying after a meeting of the tion between criminals. Losing Trust in USD Eurasian Economic Community. Command-and-control Senior Chinese leaders have privately voiced "Entry into the WTO is our common pri- servers hosted by Price- fear over the soaring US budget deficit and ority, but we want to do that as a common wert controlled more than are increasingly looking to diversify from customs space," Putin was quoted as saying. 4,500 malicious software the dollar, a Republican congressman said. Russia's bid to join the WTO appeared to ac- programs such as keystroke "We heard across the board -in private- celerate last week after the European Union logging, password stealing -substantial, continuing and rising con- said it expected to conclude talks with Rus- and data stealing. sia by the end of this year. cern," Representative Mark Kirk said af- U.S. trade representative Ron Kirk said re- ter a trip to China that included talks with cently there was a "willingness" to complete government officials and central bank talks before President Barack Obama visits chief Zhou Xiaochuan, AFP reported. Russia in July, but reiterated U.S. criticism "It's clear that China would like to diversify of Russia's decision to ban some U.S. meat from its dollar investments," the lawmaker imports over fears of swine flu. Analysts said at the Center for Strategic and Inter- said the latest move would impede Russia's national Studies, a Washington think-tank. accession because Belarus is still far from Kirk's assessment differed with that of Trea- meeting the trade body's accession require- sury Secretary Timothy Geithner, who said ments. last week on a separate visit that Chinese lead- "I don't believe the WTO holds any ben- ers had expressed "justifiable confidence" on efits for Russia," said Nataliya Orlova, an the future of the recession-hit US economy. economist at Alfa Bank in Moscow. "Rus- Kirk traveled with Representative Rick Lar- sia has just signaled that its relations with sen, a member of President Barack Obama's its closest neighbors are more important." Democratic Party, who also painted a less A spokeswoman for Russian President gloomy picture of Chinese officials' views. Dmitry Medvedev, Natalya Timakova, told China is the largest creditor to the United Russian agencies that Russia was not look- States with some $700 billion invested ing to slow the process but that the customs in Treasury bonds. Zhou earlier this year union arrangement was mutually beneficial. floated the idea of replacing the dollar with Putin said the customs union should be in a basket of currencies as the benchmark place by 2010. global unit. News /Economy 8 Regional News Pakistan Afghanistan "Grain: World Markets and Trade" finds that wheat imports will be cut in half, Wheat Production to declining from 3 million metric tons to New Cities 1.5 million metric tons over the same Increase time period. Planned Along The increase in production comes at According to the May 2009 "World Ag- a key time, as opium production is Highways ricultural Report," wheat production expected to decrease further in 2009 in Afghanistan for 2009 and 2010 is and agriculture has become a central In an effort to deal with the adverse ef- expected to climb to 3 million metric part of the new strategy for promot- fects of rising population in the existing tons, double the production of 2008 ing development and security in Af- cities, Pakistan government plans to and 2009. At the same time, the report ghanistan. develop new cities along major high- ways, Dawn newspaper reported. The National Trade Corridor (NTC), work on which is under way, is proposed to be linked to these cities, which would also serve as logistics centers, special economic zones and industrial and technology parks. Under the initiative, the draft National Spatial Policy 2009-10 will be finalized within the framework of "Vision 2030" to maximize human settlement effi- ciency, sources said. According to offi- cial figures, at present more than one- thirds of the country's population — or about 56 million people — live in urban areas. By 2030, Pakistan would have to overcome the challenge of managing an additional 70 million to 80 million city dwellers. Azerbaijan Mega cities like Karachi and Lahore are proposed to operate under a new set of economic dynamics, necessitat- Energy Swap with Iran, Russia ing increasing non-farm employment, removing rural-urban disparities and According to an official of the Azerbaijan State Oil Company, Azerbaijan can swap developing balanced settlement hierar- gas with Iran and Russia, but Russia can sell gas to Iran without having to trans- chies. port it via Azeri territories. "We can deliver gas to Iran and Russia and in return they can give us back the same volume of gas in other places such as Europe or Turkey. This way, each of the countries will benefit from a reduction in transport costs. We are never opposed to projects in which infrastructures of neighboring countries are used. This is a completely normal process for unifying the gas sys- tems of Azerbaijan, Georgia, Turkey, Russia and Iran. So, each of these countries will benefit from reducing the transportation costs," The official added. Prior to this, Russia and Iran concluded an MoU in oil and gas sector which is expected to facilitate swap of Russia's Gazprom Company's gas to northern Iran in return for delivery of hydrocarbon products of this company from southern Iran to Persian Gulf littoral states.

Kazakhstan Storage Center in the Black Sea re- tries reaches almost one third of the gion, Khabar news agency reported. world grain market. The state food This decision was made at the first corporation represents the interests Common Grain World Grain Forum in Saint-Pe- of Kazakhstan on the world grain Storage Center tersburg. According to the deputy market. Entering the Grain cartel minister for agriculture of Kazakh- opens additional opportunities, stat- to Be Built in the stan Arman Yevniyev, western ex- ed the company's commercial direc- perts believe Kazakhstan, Russia tor Daulet Uvashev. Black Sea and Ukraine to be the most prom- The cartel will be able to optimize Kazakhstan, Russia and Ukraine are ising countries for the development world grain prices in its favour, im- planning to create a common Grain of agricultural business. The com- prove the terms for deliveries and mon export potential of these coun- reach untapped markets. Regional News / Economy 9 Iran statement issued on the occasion of the World No Tobacco Day, Tehran's mayor warned of the increasing rate of habitual Smoking Banned smokers between 13 and 15 years in the In Tehran Public country, Mehr News Agency said. In his message on the same occasion, Places UN Secretary-General Ban Ki-moon said tobacco kills 5.4 million people Tehran Mayor, Mohammad Baqer Qali- every year and urged governments ev- baf, recently announced that smoking erywhere to address this threat to pub- in Tehran's public places is banned. In a lic health, IRNA reported.

Kyrgyzstan Pakistan China, Kyrgyzstan Gas Contract Without India Advance Coop.

Times that as the agreement would Chinese Vice Premier Wang Qishan re- be governed through a third country cently had talks with visiting first depu- law, Pakistan Interstate Gas Company ty Prime Minister of Kyrgyzstan Omur- (PIGC) and the Iranian National Oil bek Babanov. Babanov paid his visit to Company (INOC) signed the agree- China to attend the eighth meeting of ment in Turkey. the China-Kyrgyzstan joint commission Under this agreement, for the next 25 on economic and trade cooperation, Ir- years Iran would provide 750 million innews.org reported. cubic feet of gas per day to Pakistan In the course of talks, Wang said that which would generate 4,000 MW of China hopes to deepen economic and electricity. Officials in Islamabad be- trade cooperation with Kyrgyzstan for lieve the deal is a major breakthrough mutual benefit. At the end of the meet- and is an achievement that would ing, Wang said that the two countries greatly help Pakistan meets its energy enjoyed deepening mutual political needs. trust and sound development of eco- The pipeline project would be complet- nomic and trade cooperation in recent ed by 2013, the sources maintained. years. Wang also expressed China's "The gas pipeline would begin from hope for the two sides to strengthen Gwadar near Iranian border and will feasibility study of important coopera- be 800 km long. The determination of tive projects. After 14 years of negotiations over what gas price would be linked with oil pric- For his part, Babanov said Kyrgyzstan was initially framed as the Iran-Paki- es in the international market but will was ready to boost bilateral coopera- stan-India (IPI) gas pipeline project, be less than 25 percent as compared to tion in all fields, in efforts to bolster Pakistan and Iran finally signed the crude oil prices," the sources said. Of- bilateral ties. Hu Jintao, President of agreement to activate a bilateral gas ficials of the ministry termed the agree- the People's Republic of China also met pipeline project, without India's par- ment as a landmark achievement and with his Kyrgyz counterpart Kurman- ticipation. expressed hope it would help Pakistan bek Bakiev in Yekaterinburg. During Sources in Pakistan's Ministry of Petro- meet the shortfall both for commercial the meeting, the Chinese Premier an- leum and Natural Resources told Daily and domestic purposes. nounced that China will grant Kyrgyz- stan 80 million yuan.

Turkey Moj News Agency wrote. Head of Teh- ran Chamber of Commerce Yahya Ale- Mutual Trade in Es'haq said that the central banks of Iran and Turkey have paved the way for mak- Nat'l. Currencies ing bilateral commercial interactions in national currencies. Currently the vol- Turkey and Iran will use national cur- ume of bilateral trade between Iran and rencies in trade. At a meeting between Turkey stands at around $10 billion, he a Turkish commercial delegation with said, adding that the figure shows a 27 the officials of Tehran Chamber of Com- percent growth over last year. He said million of goods to the neighboring merce, the two sides emphasized the Iran imports $2 billion of consumption country. Iran also annually exports oil need to replace dollar with rial and lira, goods from Turkey and exports $800 worth $8 million to Turkey. 10 Regional News / Economy

Turkmenistan refineries. Liquefied gas will be loaded in tankers at the Kiyanly port. Technology 1st Liquefied Gas modernization and extension of the pro- cessing industry, development of the in- Terminal on the frastructure for selling finished products are the major aspects of the program on Caspian Coast oil and gas industry development. Since the new processing plants are put Construction of the first liquefied gas into operation, from early 2000 to early terminal on the Caspian coast has been 2009 liquefied gas production has in- launched at Turkmenbashi complex of oil creased as much as 15 times and made

Azerbaijan ECO Region Transition to Digital Islamabad-Tehran-Istanbul Broadcasting Train Link Likely from Aug 14 Ministry of Communications and In- formation Technologies of Azerbaijan Pakistan, Iran and Turkey have signed an plans to begin broadcasting 8-10 pro- agreement to launch a goods (container) grams through one channel in terms rail service from Islamabad to Istanbul. of a program on transition to digital Secretary-General of the Economic Co- television broadcasting in the coun- operation Organisation (ECO) Khurshid try, Trend Capital quoted the Minis- Anwar said despite technical difficulties, try as saying. including the different rail gauge in Iran "This will be possible in a month - af- and Pakistan, the 6,500-kilometre link ter installing relevant equipment of would become operational on Aug 14 this MPEG-4standard," the Ministry said. year, Dawn reported. The Ministry said there are currently Addressing a meeting of an ECO working group, Mr Anwar said that the link was four programs being broadcasted by essential to meet the region's trade needs. "The current trade volume among the one channel. The broadcasting will three countries is about $15 billion and it is growing," he said. be carried out mainly in Baku, in Ab- The meeting observed that the passenger movement was also growing and offered sheron Peninsula and later in other a profitable business potential, he added. The Bam-Zahedan railway will be reha- regions of Azerbaijan. bilitated before August and work is under way to improve tracks from the Iranian Under recommendations of the In- border to Istanbul. Railways Minister Haji Ghulam Ahmed Bilour stressed the ternational Telecommunication need for international cooperation for upgrading the Quetta-Taftan link. Union, all countries, including Azer- "Assistance is needed from the ECO, the Islamic Development Bank and govern- baijan, should fully switch to digital ments of Iran and Turkey for developing the link … Pakistan Railways is trying to broadcasting by 2015. Regarding the improve the section, but it requires massive investment," the minister said. Iran benefits of digital broadcasting to us- will provide transhipment facilities in Zahedan till a standard gauge line is laid ers, the Ministry said that along with between Zahedan and Mirjaveh. high-quality transmission, it is an About 1,900km of the track will be in Pakistan, 2,570 km in Iran and 2,036 km in opportunity to broadcast about 10 Turkey.It may be mentioned that a railway station in Islamabad has recently been channels at a frequency. For the first made functional. The plan for the rail link dates back to 1970s but a decision to time in Azerbaijan, the digital televi- launch it was taken by the 10th ECO summit held in Tehran in March this year. sion was launched as a pilot project in Baku on 10 October 2004. Uzbekistan Sharing Agreement on oil and gas fields of Urga, Kuanysh Akchalak groups in Ustyurt region. Uzbekistan & The mechanism was developed in the framework of the Production Sharing Malaysia Launch Agreement signed previously between Uzbekneftegaz National Holding Com- Joint Project pany and PETRONAS Carigali Over- seas Sdn. Bhd. (Malaysia) in respect of Uzbekistan has approved an implemen- these deposits. The document is aimed tation mechanism for the Production at increasing production and export of Regional News / Economy 11 up 276,000 tons of liquefied gas a year. sary reserves of liquefied gas. Nowadays CIS Such a rapid increase in productivity liquefied gas is exported from terminal by required development of transport in- road and rail to Afghanistan, Iran, Paki- frastructure for exporting domestically stan, Armenia, Georgia and the national Agricultural produced products to foreign markets. market. Iranian Pars Energy specialists Products in CIS For this purpose, the special terminal and Turkmen builders have performed was put into operation. 6 liquefied gas a major part of building and construc- Countries Increases vehicles and 16 railway wagons can be tion works. To date, the completed work loaded simultaneously at this terminal. makes up 81.15% of the construction by 3% in 1Q The reservoirs with the total capacity of budget. The construction project will be Average agricultural production in 6,000 tons were built to store the neces- completed by the end of this year. the Commonwealth of Independent States increased by 3% year-on-year in the first quarter of 2009, the CIS Interstate Statistical Committee re- ported. Manufacture of agricultural pro- duction grew in the first quarter of 2009 compared to the correspond- ing period of the previous year in all CIS countries (except Armenia). On average, in the countries of the Commonwealth, agriculture output increased by 3% (in the first quar- ter of 2008 - by 4%), the Statistical Committee said. Iran Agricultural production increased by 9.4% in Tajikistan, 6.3% in Be- larus, 5.7% in Uzbekistan, 4.3% in Iranian Firm Implements $100m Azerbaijan, 3.7% in Moldova, 2.1% in Russia, 1.7% in Ukraine, and 1.4% Projects in Turkmenistan in Kyrgyzstan, the committee said. Iranian Ambassador to Turkmenistan in the last Iranian calendar year (ended Mohammadreza Forqani stated in Ash- March 20, 2009), Forqani said, adding gabat on Wednesday, June 17, that an 300 million dollars of the figure was Iranian firm is currently conducting the share of Iran's exports to Turkmen- four projects worth about $100 million istan, up 40 percent compared with the in Turkmenistan's Avaza Tourist Zone year to March 2008. Iran and Turk- and Turkmenbashi Port. Talking to menistan have had extended relations IRNA, Forqani said Pars Energy Com- since Turkmenistan's independence pany has in hand the construction of a from the Soviet Union in 1991. Since natural gas storage and supply facility, a then, the two countries have enjoyed railroad to the length of 30 kilometers, good relations and have cooperated in as well as a hotel and a dock. He went economic and energy sectors. The $139 on to say that 256 kilometers of the Ka- million Korpeje-Kordkuy gas pipeline zakhstan-Turkmenistan-Iran railroad in western Turkmenistan and the $167 which lies within Turkmenistan terri- million Dousti (friendship) Dam in the tory will be built by Iranian companies. south of the country were built through Tehran-Ashgabat trade hit $3.2 billion joint ventures. hydrocarbons by attracting foreign di- This company will finance works un- foreign investor within three months rect investment and special advanced der the document using its own funds will carry out a preliminary feasibility technologies for developing fields in and attracted loans. The natural gas study for designing and construction Uzbekistan. produced from these fields will be ex- work on the fields. In the framework of PETRONAS Carigali Overseas Sdn. ported by Uztransgaz, and gas conden- the agreement, the foreign investor will Bhd. transferred its rights and obliga- sate will be sold in the internal market attract at least 60% of all goods, works tions under the agreement to a special by Uzneftegazdobicha through a sub- or services from domestic suppliers subsidiary company of PETRONAS sidiary, Ustyurtgaz. The Uzbek compa- and providers, and involve at least 80% Carigali (Urga) Ltd, which was regis- nies are exempt from tax on property of all to-be-employed workers from lo- tered in the Uzbek Ministry of Justice transferred to foreign investors for the cal residents providing them an oppor- as a legal entity resident of the Republic agreement's duration period. tunity to undergo training and improve of Uzbekistan. Uzbekneftegaz NHC together with the skills. 12 Regional News / Economy Tajikistan shanbe on June 12, Central Asia Online reported. The independent experts, pol- Hydroelectricity iticians and government officials from Tajikistan, Kyrgyzstan and Kazakhstan Compromise Possible who attended the meeting discussed is- sues related to the construction of the in Central Asia Rogun hydroelectric power plant in Ta- jikistan and the Kambaratinsk hydro- A round-table discussion entitled "Hy- electric plant in Kyrgyzstan. The round droelectric Issues in Central Asia: Com- table was organized by the Institute for promise Possible?" was held in Du- War and Peace Reporting (IWPR).

Kazakhstan Tajikistan Creation of SCO Center for Prevention Investment in Tajik Economy

of Emergencies Tajikistan is getting over $1 billion in in Kazakhstan investments from China for the devel- opment of the industrial and energy Supported sectors and the transportation and China, Russia and Kyrgyzstan sup- communications infrastructure of Ta- ported creation of the SCO cen- jikistan, Central Asia online reported. A ter for prevention and liquidation credit agreement for that amount was of emergencies in Kazakhstan, the signed on June 4 in Dushanbe during Emergency Minister of Kazakhstan, a visit by a Chinese delegation headed Vladimir Bozhko, informed in Aktau by Communist Party Politburo member at the fourth meeting of chairmen of Wang Lequan. emergency departments of the SCO According to Tajik Minister of Energy member states, "Kazakhstan Today" and Industry Gul Sherali, the Tajik lion toward improving the 90 kilometer agency reported. government and the Chinese company long Dushanbe-Dangara motorway. "There was a proposal to gather to- TVEA signed specific agreements to In addition, the parties were in agree- gether the experts of the SCO member construct the 350 MW capacity Nura- ment regarding the need to create a states in September, 2009 to consider bad-1 hydroelectric power plant on the transportation and trade zone in the the results of the discussion of the River Hingol and a co-generation pow- Murgab region of the Gorno-Badakh- concept of the activity of this center." er plant in Dushanbe. shan Autonomous Region and to im- V. Bozhko explained that the concept According to calculations by Chinese prove the Mugrab-Khorog road. An consists of creation of a permanently experts, the two projects combined will agreement has also been signed to build operating structure with participa- cost US$960 million. TVEA also signed a cement production factory in south- tion of all SCO countries, which will a contract with Tajik state energy com- ern Tajikistan which will have an an- provide analytical information, co- pany Barki Tochik to build two 220- nual capacity of 1 million tons. ordinate the activity and supply the kilovolt power lines at a total cost of In addition, negotiations are currently SCO countries with the necessary US$61 million. underway with major Chinese compa- information on the positive experi- Transportation and Communications nies on the creation of joint enterprises ences, introduction of new technolo- Minister Abdurakhima Ashura said that in Tajikistan in the ore mining and agri- gies, and scientific researches in, first an agreement has also been reached cultural product processing sectors. of all, prevention of emergencies. whereby China will allocate $51 mil-

Kyrgyzstan stan Bakyt Ospanov said at the session reach USD 1 bln in the nearest future. of the Inter-parliamentarian Commis- "Over 400 joint ventures with the Ka- Kazakh-Kyrgyz Trade sion on cooperation between the Parlia- zakh capital are working in Kyrgyzstan ments of Kazakhstan and Kyrgyzstan, now. The banking system of Kyrgyzstan Turnover to Hit USD Kabar News Agency reported. is represented by five affiliates of banks He noted that high level negotiations of our country. 60% of credits were al- 1 Bln. between two countries have been acti- located by the Kazakh banks last year", vated and the Inter-state Council, Inter- said B.Ospanov. According to the Ka- "Relations between Kazakhstan and governmental Council and the Foreign zakh Diplomat, the cultural-humanitar- Kyrgyzstan are developing positively, Ministers council have been established. ian cooperation between two countries in the spirit of strategic equal partner- The Ambassador said that the trade is the most dynamic in two countries' ship", Kazakh Ambassador to Kyrgyz- turnover between the two republics will relations. Regional News / Economy 13 According to the director of the Tajik merges with Pyandzh River. "What is Bulat Auyelbayev, a representative of the Center for Strategic Research, Suhrob very important is that the nations in the Kazakh Center for Strategic Research, Sharipov, a solution must be found to region live in peace and harmony, but believes it is a government's right to use the issue of the use of hydroelectric re- they must also have heating and light- its country's natural resources, includ- sources. No other government, he said, ing. The Uzbek authorities and experts ing water. On the other hand, he said, should interfere with the construction are being very critical with regard to the Uzbekistan's position is understand- of Rogun hydroelectric power plant construction of the Rogun hydroelectric able since the Uzbek government is be- since the complex is being built on the plant, but are not themselves offering ing forced to reduce the amount of irri- River Vakhsh, which is not a trans-bor- anything. The process of building Ro- gated land used for cotton-growing and der river. Vakhsh passes 100 kilometers gun has begun and cannot be stopped", this could lead to discontent among the from the border with Uzbekistan and Sharipov emphasized. country's rural population.

Afghanistan Pakistan Optical Fiber Inaugurated Strengthening Trade Ties with President Karzai, while talking to Presi- Asian regions by Optical Fiber. dent Imam Ali Rahman, the President Minister Sangin also briefed the audi- CARs of Tajikistan on the video conference, ence of the press conference about the inaugurated Optical Fiber in Presi- importance of the Optical fiber in the Pakistan has formulated an ambi- dential Palace on Wednesday June 03, country and added that, the current tious plan to show case its products 2009. In the ceremony, organized for GSM operators and the ISP providers to tap the vast market of Central this purpose in Presidential palace, facilitate their services through satellite Asian Republics (CARs), said a se- Sangin, Minister of Communications and indirectly through third countries nior official of Trade Development and IT, Spanta, Minister of Foreign Af- such as America, Iran and so on, but Authority of Pakistan (TDAP), APP fairs and Jalil Shams, Minister of Econ- by having the Optical Fiber, the GSM reported. omy were present. operators and ISP providers as well as To reinforce trade ties with CARs, President Karzai inaugurated the basic TV and Radio stations will be directly the Director General of TDAP Mir and infrastructural project of the coun- connected to the Optical fiber and can Nasir Abbas told APP that the try that connects Afghanistan with its provide their services through this ca- Chairman of his organization Syed neighbors. ble by land. At present, only 4% per- Mohibullah Shah has chalked out Minister Sangin said that Optical fiber cent people of Afghanistan have access a comprehensive plan for bilateral is an essential as well as a vital project to the internet and by inaugurating the trade with CARs. for the people of Afghanistan and by Optical Fiber, it will increase to 20% in In this connection, he pointed out inaugurating this project, Afghanistan the country in the future. that TDAP is taking a trade caravan will be connected to its neighbor coun- In terms of revenues, it is estimated leaving Pakistan on June 25. Travel- tries such as Uzbekistan, Tajikistan, that this project will bring 3-4 million ling on KK highway it will enter Chi- Turkmenistan, Iran and Pakistan, and USD/month and more than 30 million na's border city Sust and then move through them, Afghanistan will connect USD annually and by increasing the to Kashghar. Central Asia to the South Asia and it number of customers, the revenues will "In Kashghar we will hold exhibi- means that Afghanistan plays the role also increase accordingly, said Minister tion and business forums. The del- of a "bridge" that connects these two Sangin. egation comprising of 120 persons includes diplomats as well as 60 exporters. Our next destination will be Bishkek, where we will have the same program. Our final destina- tion will be Almaty," he noted. He said that after holding exhibi- tions and business meetings there for three days, the delegation will fly back to Pakistan. He went on to say: "The purposes of these exhibitions are to explore new avenues of trade cooperation between these countries and also provide an opportunity to the del- egation about the prospects of trade through land to CARs". 14 Regional News / Economy Uzbekistan noted introduction of electronic tickets, strong technical base, including increas- Bukhara Airport ing of the plane parking spaces, using new technologies to clean the landing Wins Int'l Contest strip from dust and snow, as well as improvement of services. The financial The best airport of the year contest figures of the Bukhara airport have also among the CIS countries was held in been improving over the past years. The Moscow. Bukhara international airport profitability level increased from 29.3% won among almost 50 other contend- to 32.6%. Last year, the airport served ers, UzA reported. The contest jury 84,000 passengers.

Kazakhstan Turkey Econ. Minister Energy Minister Agreement on Expects Economy Nabucco Project to Shrink Kazakhstan expects the economy to contract by 2.0-2.5 percent in the first half of this year, Economy Minister Bakhyt Sultanov said, backtracking on an earlier, more positive govern- ment forecast, Reuters, Astana re- ported. Prime Minister Karim Masimov said this month he expected economic growth to be negative in the first half of this year. "The forecast is that the figure for six months will be nega- tive," Sultanov told reporters on the sidelines of a business conference. "It will be about 2.0-2.5 percent." Turkey's Energy Minister has said does not matter if we achieve such a Sultanov said he expected a return that the agreement on Nabucco proj- goal through Nabucco or via talks and to positive figures only in the sec- ect would be signed in July the latest, agreements with other countries. The ond half. He forecast Gross Do- Turkish Weekly reported. agreement on Nabucco project will be mestic Product would rise by up to Turkish Energy & Natural Resources signed in July the latest". 1.0 percent in the whole of 2009 or Minister Taner Yildiz replied to ques- Tourism and culture connected at least stays flat, compared with tions at a ceremony held in Istanbul countries to each other in the past, growth of 3.2 percent in 2008. on the occasion of Turkish Akenerji's Yildiz said, "energy pipelines have Hit hard by the global economic partnership with Czech power utility undertaken such a role in our pres- crisis, Kazakhstan's oil-dominated CEZ on Tuesday, June 23. ent day." Yildiz said that Turkey economy shrank 2.2 percent in the Commenting on the progress with the currently had a remarkable co- first quarter. Sultanov said the con- Nabucco Project, Yildiz said, " the im- operation with Greece, Bulgaria, traction had widened to 2.7 percent portant point for Turkey is the signing Romania, Russia, Iraq, Azerbai- in January-April. "For the whole year, of an agreement that meets its needs jan and Turkmenistan within this we think the situation will level out as and comply with its growth rate. It framework. the funds are spent," he said.

Pakistan Faisalabad Dry Port Trust (FDPT), for- mer President Faisalabad Chamber of Commerce & Industry (FCCI) in Faisala- Cargo Train to Make bad on Monday, APP reported. Exports Competitive Lauding this decision, he said apart from reducing the transportation costs, the Pakistan Railroads (PR) will start inter- measure would make Pakistani exports national cargo train for Iran and Turkey competitive and viable in the global mar- from August 14. This was disclosed by kets. He said this international cargo Sheikh Ashfaq Ahmed, Chairman, Paki- train should run via Faisalabad to facili- stan Dry Ports Association (PDPA) and tate textile exports from Faisalabad. Regional News / Economy 15

Turkey Iran, 7th Major Trade Partner The value of Iran-Turkey trade ex- changes in the first nine months of 2008 rose by 41 percent to reach $8.3 billion, Turkish Weekly reported. Turkey's exports to Iran in the said period showed an increase of 64.3 Turkmenistan percent and Iran's exports to Turkey indicated a rise of 36.6 percent com- New Round of Gas Talks with Iran pared to the same period the previous year. The figure stood at $1.9 billion Turkmenistan and Iran started a new Iran currently pays $140 per thousand in September 2008, up by 34.34 per- round of gas talks in Ashgabat on June cubic meters (tcm); Gazprom is willing cent compared to $814.3 million for 19, the National Iranian Gas Export to buy the same gas for re-export from the same month last year. Company's managing director said. Ashgabat for $240/tcm. Russia is more Turkey's exports to Iran reached Mehr News Agency quoted Seyyed Reza willing to access to natural gas supplies $153.6 million in September 2008, Kasaiizadeh as saying that, "the two in Iran's South Pars field, which holds showing an increase of 42.4 percent sides will discuss the contract period an estimated 8 percent of the world's compared to the same period a year extension in the two-day meeting." natural gas reserves. ago. "The price of natural gas has fallen in Ties between the two energy powers Turkey's imports from Iran were up the global markets due to the crude oil were strained in winter 2008 after Turk- by 33.1 in September 2007, reaching price fall. So we plan to negotiate with menistan halted gas sales to Iran, but $940.9 million. Tehran and Ankara the Turkmen officials to reduce the gas during an official visit by Turkmen lead- also signed a deal last year on joint export price," he added. "We aim to er Kurbanguly Berdymukhamedov to gas production and export of Iranian extend the contract period for another Tehran in February 2009, the two sides gas via Turkey to Europe. 3 years," the official said while noting inked an agreement which would allow that Iran has also requested a rise in the Iran to develop the Yolatan gas field in volume of exported gas. Turkmenistan and import 350 billion Turkmenistan has been supplying gas to cubic feet of the extracted gas annually. Iran since 1997, but exports have never The feasibility studies for the Yota- hit the Korpeje-Kurt Kui pipeline's full lan gas field has been finished and capacity of 8 billion cubic meters (bcm) Petropars has proposed its finalized per year, a report from the Russian plan for the development of the field to newspaper Vremya said, adding that the Turkmen officials. Iran sits atop the exports have not exceeded 6.5 bcm. world's second-largest natural gas re- Turkmenistan has a contract to send an serves after Russia, and has long sought additional 10 bcm to Iran in 2009. In to promote itself as a transit route for mid-March, Iran and Russia signed a oil and gas from Central Asian states. gas swap deal that would see Gazprom Turkmenistan, Central Asia's biggest assume responsibility for the delivery of gas producer, is seen as one of the key Turkmen gas to Iran. Ashgabat would suppliers for the planned Nabucco pipe- benefit from this arrangement since line from Turkey to Austria, designed to Russia would purchase Turkmen gas at ease Europe's dependence on Russia a premium price. for gas supplies.

The Pak official demanded that a meet- at present, there was a very limited vol- arrangements have to be made at Zahe- ing of all the stakeholders including ume of exports/imports between Paki- dan Railroad Station, under supervision chairmen of the up-country Dry Ports stan and Iran by rail via Koh-e-Taftan of director general of Zahedan Railroads. should be convened to deliberate and although a broad gauge tail track from He also urged the Pakistan government remove official bottlenecks and other Quetta to Zahedan is existent but there to explore new world markets for con- impediments for exports and imports was a standard gauge track between Iran sumption of Pakistani exports and take through Pakistan railroads. He said the and Turkey which needed improvement. immediate corrective measures to boost freight charges of the international cargo He said the cargo containers loaded from exports from Pakistan by providing lu- train should be reasonable and competi- and to Pakistan will be transshipped on crative incentives and adequate relief to tive if PR authorities intend to make this the Iranian/Turkish rolling stock for the exporters of textiles and other vital venture successful. Sheikh Ashfaq said standard gauge and the transshipment sectors of the economy. News /Culture 16 Regional News Kyrgyzstan Raev informed the news agency "24.kg". Azamat Sadykov became not only the Kyrgyz Pianist Wins winner of the festival but was awarded grand prize- Gold Cup. "It is one of the Int'l. Competition in most prestigious musical competitions. Pianists from all over the world come to Italy take part in the contest. But Azamat Sy- dykov so amazed everybody with his per- Kyrgyz pianist Azamat Sydykov has won formance that the first prize was uncon- the first prize at the International Piano ditionally awarded to him," Sultan Raev Competition in Italy, Culture and Infor- said. Sydykov is graduate student of Mos- mation Minister of Kyrgyzstan Sultan cow P.I. Tchaikovsky Conservatory.

Iran Iranian Film at 2010 Oscars

"Tehran Has No More Pomegranates!" will be representing Iran in the 82nd Annual Academy Awards for Best Docu- Pakistan mentary Feature catego- ry in 2010 Willow Films, a U.S. international sales Summer Art Show- agency and distribution 2009 company for films from the Middle East, will A painting exhibition titled "Summer submit the film to the Art Show-2009" started on Saturday cinematic race, Iran's June 27 at Nomad Art Gallery, Islam- Experimental and Docu- into a mega-polis of increasing urban abad. Nomad has showcased 26 paint- mentary Film Center (EDFC), producer sprawl, pollution, inadequate housing, ings and prints in different mediums of the film, announced in a press release class gaps and the fatal destiny of its by four artists, including Ufaq Ehsan, published on Saturday, June 20, 2009, delicious pomegranates. Samina Jamshed, Ajnum Ayub and Mehr News Agency reported. Using an energetic mix of rare archi- Mughees Riaz. Directed by Masud Bakhshi, "Tehran val footage from the past 150 years, The exhibition provided a soothing Has No More Pomegranates" tells the unconventional photography, mock breath to art connoisseurs by taking story of a director and his crew who interviews, and a playful soundtrack, them to realm of ecstasy. In the sizzling are tasked with making a film about the aesthetic and cultural values of heat and humid weather, the exhibition their hometown of Tehran, but have old and new Tehran are brought to provided fresh air to the terror-affected run into a stone wall and are com- life. In the process, director and crew residents of Islamabad. The aura and pelled to explain to their supervisors embark on a self-discovery, realizing diversity of artworks created by these at the EDFC why they cannot complete that while they belong to a drastically painters, printmakers and graphists, their project. transformed Tehran, being a "Teh- depict unique imageries with a fine They decide to investigate the city's rani" is a timeless state of mind. The blend of creative experiences with mix past in order to better understand the documentary has won awards for di- media, oil on canvas, and sugar lift/ present. What follows is a sarcastic rector Masud Bakhshi at several Ira- etching. The exhibition will close on and comic narrative about Tehran's nian and foreign events over the past July 27. transformation from a small village three years.

Uzbekistan anniversary of the city of Tashkent. According to the document, the sol- emn meeting and a concert program Tashkent's devoted to the jubilee will be held on 1 September 2009 at the Uzbekistan in- 2,200th ternational forums palace. On 2 Sep- Anniversary tember, the mass events for the public will be held on the city's squares. President of Uzbekistan Islam Kari- The 2,200th anniversary of the capital mov signed a resolution on 10 June on of Uzbekistan is celebrated with par- the main events devoted to the 2,200th ticipation of the UNESCO. Regional News / Culture 17

Afghanistan in Houston, Texas, where it attracted 317,000 visitors. The exhibit's 228 ar- "Hidden Treasures" tifacts document Afghanistan's rich cul- tural heritage, telling a story of a country Closes in Houston, that was once a crossroads of civiliza- tions and a hub for continental trade and Heads to New York travel. Originally housed at the National Museum in Kabul, the artifacts were The critically acclaimed exhibit "Afghan- hidden away by regular Afghan citizens istan: Hidden Treasures of the National prior to the Soviet invasion in 1979. The Museum, Kabul" recently ended a three- only revealed in 2003, after the Taliban artifacts and their whereabouts were month run at the Museum of Fine Arts had been driven from Afghanistan.

Uzbekistan Turkmenistan Uzbek Film Wins Several Awards Int'l Art Forum in Ashgabat The XVIII Asian, African, and Latin American Film Festival took place be- tween June 9 and 16 in Innsbruck, An international exhibition of the works of fine and applied arts, jew- Austria. Prominent Uzbek film director Nazym Abbasov presented his "Oidi- eler's art and national musical instru- noi" or "The Moon-Faced" there. The ments opened in the Turkmen capital film won two awards. Abbasov himself on June 26. The forum was organized was rewarded "For Contribution to the and held by the Ministry of Culture Festival". Marjona Shavkatova, 8, who and Broadcasting, State News Agency starred in "Oidinoi" received a Special of Turkmenistan (TDH) reported. Prize. The international exhibition is of As Ferghana.Ru pointed out already, great interest to culture and art fans of but keeps hearing from adults that she is "Oidinoi" is a parable. It is a story of a Turkmenistan as well as their foreign too small. The ban becomes a tragedy for six-year-old from a mountainous ham- counterparts. the girl by the name of Oidinoi and she let who desperately wants to go to school The painters and ceramic designers, leaves the hamlet for the mountains. sculptors and jewelers, art histori- ans and culture experts from differ- ent countries of the world – Poland, China, Kazakhstan, South Korea, Tur- key, Iran, Azerbaijan, the United Arab Emirates, France, Uzbekistan, Russia, the United States, Tajikistan and Ja- pan participated in the exhibition. The large-scale exposition arranged in the Exhibition Hall included the works of the well-known as well as young Turk- men and foreign artists, graphic and ceramic designers, sculptors and jew- elers, makers of the musical instru- ments. It presented a wide spectrum of the genres, styles and trends in modern fine and applied arts and the unique musical instruments from the collections of the national museums of Turkmenistan. Kyrgyzstan meant for meetings of literature con- The scientific and art conference was noisseurs and fans, is situated in the held in the framework to help partici- 1st Literary Café basement of the Raritet book shop at pants to learn about different trends Molodaya Gvardiya Avenue. in modern fine and jeweler's arts and Opens in Bishkek It is also planned to hold presenta- establish fruitful creative contacts. tions of new books and various literary The guests also visited the Old Nisa The first literary café was opened in events in the cafe. The first event, which State Historical and Cultural Reserve, Bishkek on June 15, the website litera- took place in the Cafe Club, was discus- large museums and other landmarks tura.kg reported. sion of works of the modern playwright, of the Turkmen capital. The exhibition The special establishment Cafe Club, actor and writer Evgeny Grishkovets. closed on June 28. News 18 Inside ECO

Survey and Development Adminis- Training tration (EIE), Ministry of Energy and Natural Resources of the Republic of Program on Turkey. The representatives of the Secretariats Energy Efficiency of ECO and Organization of the Black Sea Economic Cooperation (BSEC) as & Management well as the Japan International Coop- JICA-EIE Third Country Training eration Agency (JICA) also attended Program (TCTP) on Energy Efficiency this Workshop. and Management in Industry was held During the first week of the course, ECO on 25 May-5 June 2009 in Ankara in which was theoretical, the lectures cooperation with Japan International were given by the lecturers from EİE Corporation Agency (JICA) and the and other partners. The participants Secretariat Directorate General of Electric Power acquired the audit techniques and

ECO to Launch Nano- Technology Network

The opening ceremony for the ECO Nanotechnology Net- work was held at the Iran Nanotechnology Initiatives Coun- cil (INIC) in Tehran on 26 May, 2009. The inauguration was performed by Mr. Saeed Sarkar, Secretary (INIC), and Amb. Hassan Taherain, Deputy Secretary General of ECO. During the ceremony, a Letter of Agreement between ECO and INIC was signed for utilization of US$ 50,000 from the ECO Feasibility Fund. The website of ECO- Nanotechnology Network was initiated under the web address of http://www.econano.org/. The inauguration was followed by presentations and an exhibition on nan- otechnology. The main goal of the Network is to strengthen coopera- tion among ECO countries in nano-technological research and development. The experiences of the member states would synergize development measures and policy formu- lation on nanotechnology in such sectors as public health, employment, occupational safety, information society, in- dustry, innovation, environment, energy, transport, secu- rity and space. Inside ECO 19

knowledge in energy efficiency and identified feasible energy cost reduc- tion opportunities. During the prac- tical part of the Training Program which was held in the second week, the participants used the measuring devices and took measurements on the energy consumed equipment in the "Energy Efficiency Training Unit" including steam boiler, steam trap, combustion furnace, compressed air, fan, pump, compensation and light- ing. Training units of EİE and evalu- ated the result of measurements with EİE experts.

Upcoming Event Int'l. Workshop on System of Workshop on National Accounts Held "Development of

Republic participated in the event. Water Electric The representative of UNESCAP briefed Power Plants" the participants on the SNA-2008 re- visions and regional initiatives. The Regional Center on Urban Water representative of the ECO Trade and Management of Iran is going to Development Bank also contributed to host a Workshop for the high rank- training sessions. ing and senior officials of power The goal of the Workshop was to fol- sector of the ECO Member States low up with updates on SNA-1993 on «Development of Water Electric /2003/08 and highlight the need for Power Plants" on August 17 – 20, applying international standards and 2009, in Tehran. The subjects to classifications in statistics. Participants be discussed would include: expressed their views on the need for a --Prospects of energy continued training on technology-based consumption in the ECO Region computation methodology for SNA. and the role of water power The workshop came to be a practical plants; step in setting up efficient linkages --Possibilities and potentials for among National Statistical Offices development of water electric power plants in the Region; ECO's System of National Accounts through a harmonized data collection. --Method of financing of such Workshop was held on 17-20 May 2009 As such the Workshop contributed to power plants; in Tehran. The event was hosted by the the objective of the ECO Statistical --Regional cooperation for Statistical Center of Iran. Representa- Network, which is to provide a com- building of headed equipments tives from seven ECO Member States mon opportunity for ECO countries in for the power plants; and including Afghanistan, Azerbaijan, exchange of statistical and economic --Needs of the region for human Iran, Tajikistan, Pakistan and Kyrgyz data within the region. and institutional capacity building in this regard.

Meeting of the Heads of Privatization tization had been initiated and would ECO Holds Administration of the ECO Member be developed into a joint website by States on May 21, 2009. April 2010. They would extend full co- Privatization The Meeting reviewed the report of the operation to the Turkish Privatization 3rd ECO HLEG Meeting on Privatiza- Administration for construction of the Meetings tion and Private Sector Development. joint website. Member States discussed The meeting, endorsing the report, Turkey's proposal to exchange of expert The 3rd Meeting of the ECO High Level called on the Member States to take in the field of privatization. The meet- Experts Group (HLEG) on Privatiza- necessary measures for the implemen- ing agreed to develop a framework for tion and Private Sector Development tation of decisions taken by the 3rd that purpose. Meanwhile, the member was held in Baku on 20 May 2009. The HLEG. The participants noted with sat- states would follow bilateral programs HLEG met back-to-back with the 4th isfaction that the ECO website on Priva- to that end. 20 Inside ECO

tion to a special ceremony organized Turkmen Amb.: in Avaza Tourist Zone situated on the south-east shore of the Caspian Sea, "Turkmenistan 12 kilometers west of a city named after country's late President Sapar- Seeks More murat Niyazov, popularly known as Turkmenbashi (meaning leader of Foreign Turmens). The highly publicized June 15, 2009 ECO Investment" event, inaugurated by Turkmenistan's President Gurbanguli Berdymu- Visiting ECI's new Headquarters, the hamedov, was especially tailored for Cultural Turkmenistan's Ambassador to Teh- foreign VIP guests and international ran, Mr. Ahmed Gurbanov, officially media representatives to launch the Institute invited a three member ECI delega- second phase of the new $1.5 billion

Afghanistan Amb.: "ECO Will Promote Member Countries" "ECO's main objec- tives in the com- ing years will be to promote Member States' potentials and capacities in economic and cul- tural areas to the world", noted the Afghan Ambas- Eminent Philosopher Pays a Visit to sador to Tehran and ECO Secretary ECI Headquarters General elect, Mr. Yahya Maroufi, The Head of Iranian Academy of Science, about their achievements in our publi- during his formal Prof. Davari paid a visit to ECI Head- cations," he said. visit to ECO Cultur- quarters and met with ECI staff. While The professor appreciated ECI's warm al Institute's new presenting the prominent philosopher, hospitality and talked on the common- Headquarters on ECI President, Dr. Mohammad Rajabi alities between the ECO countries. He June 17, 2009. said, "His reputation and his works are laid particular emphasis on the fact ECI President, Dr. well-known within the ECO region." He that geographical boundaries cannot Mohammad Rajabi welcoming the Af- added that ECI plans to establish closer disguise our common cultural heritage. ghan Ambassador said: "Afghanistan, ties among such renowned academies in "We share so many commonalities that being located at the heart of the ECO ECO Member States. it seems we are members of a one big region, is a strategic member of ECO. "We will introduce those institutes and family", he said. We hope to open a local ECI branch office there to act as its Focal Point for and brotherhood," said Ambassador of implementation of future activities and Azerbaijan the Republic of Azerbaijan to Tehran, programs." Abbasali Hasanov in his meeting with "In the current year, ECI has published Amb.: "Culture, ECI President Dr. Mohammad Rajabi three books on Afghan literature and on June 25, 2009. luminaries," he added. Powerful Dr. Rajabi, lauded the great culture of Maroufi, for his part, said, "All interna- Azerbaijan and said the country is fa- tional organizations need a cultural arm Medium" mous in all fields of arts and culture and ECI plays that role very effectively especially for its rich music. in the ECO. I'm absolutely delighted "ECO countries enjoy an ancient cul- "ECI aspires to promote Baku as that Mr. Rajabi is successfully manag- ture. I believe, culture could be a pow- ECO's ‘Music Capital' and plans to or- ing such an important department". erful medium to promote friendship ganize joint concerts here in Tehran," Inside ECO 21 resort city, created to attract foreign investors and tourists. Turkmenistan, offering great invest- ment opportunities, seeks more for- eign investment", said Ambassador Gurbanov, in a meeting with ECI President, Dr. Mohammad Rajabi at the Institute's Headquarters here in Tehran on June 8, 2009. Avaza, a National Tourist Zone in Turkmenistan, is an on-going prom- ising economic project, which is ex- pected to enjoy high international standards as regards the quality and range of services to be offered.

Tajikistan Amb. : "Energy Problem Renowned Islamic Architecture in Tajikistan to Be Solved by 2013" Cognoscente Visits referring to Tajikistan as a full member ECI Headquarters of ECI, said: "Three ‘ECO Shops' will be opened in three major Tajik cities – Du- shanbe, Koulab and Khojand – where cultural products from ECO Member Countries would be offered." "The cooperation between Tajikistan and ECI has considerably imporved under the leadership of Dr. Rajabi", the Tajik Ambassador noted. He briefed the members present on the investment opportunities in his country, Prof. Hossein Zomarshidi, a prominent including projects in construction, road- university professor and a specialist in building, food industries and animal Islamic architecture, paid a visit to ECI husbandry. "Because of its unique posi- Headquarters and met with ECI staff. "Tajikistan, enjoying more than 1,130 tion, Tajikistan will be made the future The university lecturer and the author rivers, supplies 65% of Central Asian headquarters of Persian Television net- of 16 books on technical subjects, ad- water resources. Development projects work, a joint venture of three Persian- mired ECI publications and their in- are being carried out all over the coun- speaking countries, namely Afghanistan, teresting articles on the subjects of art try and it is predicted that energy prob- Iran and Tajikistan," Mirzoev said. and architecture in the ECO region. lem in the country will be brought to an Replying to a question regarding the He briefed the meeting about the sig- end by the year 2013." the Tajikistan existing difficulties for foreign students' nificance of traditional architecture Ambassador to Tehran, Ramazon Mir- education in Tajikistan universities, he and said: "Almost the same style of zoev, said during his visit to the ECO said, presently, a special department at architecture is seen all over the ECO Cultural Institute on June 18, 2009. Tajikistan's Ministry of Education is be- region, which proves our cultural sim- ECI President, Dr. Mohammad Rajabi ing established to rectify the situation. ilarities." he announced. Azeri Ambassador pointed out that music is highly val- ued in Azerbaijan."Traditional music is one of the important commonalities between ECO countries. In Azerbai- jan, numerous projects have been car- ried out to keep the traditional music alive." Hasanov said he was hopeful that his country would ratify ECI's Charter and promised to follow up the issue with the relevant authorities in Baku. News 22 Special Report

Turkmenistan Ashgabat Int'l. Energy Forum

The forum is the logical continuation of the Turkmen Leader's initiative to build the common approaches to establish reliable global energy infrastructure.

high-profile international Security Council on the initiative put tional cooperation in energy sector in energy conference was forward by Turkmenistan President. order to analyze deeply and objectively held in Ashgabat on April This initiative will strengthen the po- different factors influencing on the A 23-24, 2009, State News litical-legal foundation of international global energy security stating:" Defi- Agency of Turkmenistan (TDH) report- cooperation on construction and use of nitely, it is impossible to ensure the se- ed. For two days, the Turkmen capi- transnational gas pipeline, other con- curity of any country when there is no tal provided a platform for exchanging structions of energy transport-commu- security in the region, in the continent, views on a wide range of issues put on nication infrastructures in the energy in the world." the agenda of the international energy, branch. A number of other speeches were made with the emphasis on the main agenda Thus, having offered a robust solu- at the forum. The future influence of the of the conference - reliable and stable tion to the global problem, the country Turkmen proposals on creating differ- transit of energy means and its role in launched the work to build an effective ent forms of exporting hydrocarbon to ensuring sustainable development and legal mechanism for international part- the world markets which will facilitate international cooperation the reliable nership on reliable and stable transit of the development of the world economy and secure transit of energy. energy. was stressed in the speeches. The forum at the Ruhiyet Palace Hydrocarbon-rich Turkmenistan again Especially, the routes going from Turk- brought together the heads of the gov- demonstrated the very responsible and menistan to China, Iran, Russia, and ernments and energy ministers of doz- constructive approach to tackling glob- the proposed Turkmenistan – Afghani- ens of countries worldwide, represen- al challenges and problems endeavor- stan – Pakistan-India gas pipeline tative delegations of main international ing to turn the international dialogue project, the project being planned in and regional organizations including into open long-term 9mutually advan- the European direction were the focus the United Nations, OSCE, the Energy tageous cooperation. of attention. Charter Secretariat, ECO, SCO, CIS Addressing the conference participants, The Exhibition Center of the Palace and the heads of about 100 renowned the Turkmen Leader underlined: "At hosted plenary sessions on major themes foreign oil and gas and service compa- present, it is difficult to find the trend such as global and regional aspects of en- nies operating in the fuel and energy of civilized life which is not dependent ergy cooperation, transit of energy and sector. on energy space, on energy means and sustainable development, management The Ashgabat forum that is of great the availability of their transporta- improvement and legal mechanisms, interest to the political and economic tion. The characteristic of the global trade and investments to provide a plat- circles across the world is the logic con- development in the 21st century, the form for conducting business talks and tinuation of the Turkmen leader's ini- emergence of new economic centers meetings. In the framework of the inter- tiative to build the common approach- and continuous increase of energy con- national energy conference, a special- es to establish reliable global energy sumption cause the widening of energy ized exposition presenting Turkmeni- infrastructure. use and increase in their volume in the stan's profound energy potential and the Last year, the 62nd session of the UN markets." vast opportunities for wide international General Assembly approved the rel- During his speech, noting that the ini- cooperation based on mutual economic evant UN Resolution co-authored by tiative had not been put forward by benefit to the forum participants repre- about 60 states including five states chance, the Turkmen Leader under- senting world's oil and gas business was – the permanent members of the UN lined the importance of the interna- also arranged in the same venue. Special Report 23

Turkmenistan Ashgabat Int'l. Energy Forum 24 In Focus

Turkmenistan "Avaza" National Tourist Zone The Gate to Turkmenistan's New Open-Door Policy In Focus 25

Formation of a powerful tourism industry in Turk- menistan is one of the priority directions of the social and economic policy of the Government of President Gurbanguly Berdimuhamedov of Turkmenistan. Special attention is paid to the construction of a modern tourist and resort centers at the Caspian seaside. Opening ceremony of putting into opera- tion, Avaza National Tourist Zone, the first in Turk- menistan, was held on June 15, 2009. The President of Turkmenistan launched the 1.5 billion resort on the shore of the Caspian Sea along Turkmenbashi city. On this occasion, lavish ceremonies were staged for foreign guests and international media. A 3-member delegation from ECI including ECO Times Editor participated in the event at the official invitation of Turkmenistan's Ambassador to Tehran, Mr. Ahmed Gurbanov.

he largest settlement of the Turkmen coast along the Caspian Sea is the city of Turkmenbashy formerly Krasnovodsk) lo- cated in a convenient bay. It has an extensive transport infra- Tstructure and is rightfully called the Sea Gate of Turkmeni- stan. And very close to the city – just to the north, outside the gulf, there is the settlement of Avaza, located on the open sea coastline. The settlement has always been a favorite place of rest for local resi- dents and numerous visitors. With it's almost thirty kilometers of clean sandy beaches, the generous sun, salubrious air and warm sea, the site is really blessed. The name "Avaza" meaning "fame/singing" was chosen due to proximity of the resort to the sea where one could hear the" singing waves" of the sea! And everything on this land, from the standpoint of the natural grace and environmental purity, is just great. The national project was presented to the international arena couple of months after disclosing the ambitious plan by the Turkmen Presi- dent. The grandeur participation of foreign companies at the event vividly indicated the vast interest of foreign investors in the promis- ing resort business. Currently, companies from Russia, France, Turkey and Iran who have experience in building similar facilities around the world are working at the site. At their own expense, they build a botanical garden, high class hotels, cottage-type guesthouses, business centers, and a tennis stadium. The assurances of the Turkmen government to provide incentives for investors, the legal protection guarantees, favorable positive natural factors and environmental friendliness of the east coast of the Cas- pian Sea and the development of the tourist zone looks promising in terms of proximity to the large passenger traffic are the main driving factors for the attraction of foreign investment. Located near the intersection of international sea, air, land and rail routes, Avaza will be ready to accommodate all travelers to enjoy a full and comfortable rest. Construction of the North-South railway transport corridor along the eastern shore of the Caspian Sea has al- ready been started. President Gurbanguly Berdimuhamedov 26

Special Turkmen Orchestra Awaits Arrival of the Popular President

Putting into operation the Turkmen 6975-kilometer section Basic Infrastructure of the international railway line with all auxiliary facilities The engineering and communication networks and roads are is scheduled for December 2011. As a result, the Russian laid in Avaza, the construction of gas turbine power plant with and Kazakh railways will connect through the new, shorter all the transformer substations with a capacity of 254 MW is route with the Turkmen and Iranian transport systems and under way, the system of water supply and sewerage stretch- will have access to the Persian Gulf, which promises great ing for 75 km is laid and a water desalination plant with a ca- benefits to all participants of the project. In parallel with the pacity of 35,000 cub m per day is being constructed. railway, an automobile Expressway will be constructed. This means not only the growth in freight traffic, but the multiple increase in the flow of travelers from the South to the North Recreation Zone and back. Enjoying a 5000 hectares area allocated for the construction 27

of the tourist zone along a 26 km coastline, about 60 different mini-sites for game sports, golf club, yacht club, restaurants, class hotels (high-rise and cottage-type), villas, parks, am- cafes and eateries. Much of the territory in the tourist area is phitheaters, business centers, water parks, sports and fitness allocated to park zones and alleys. To create a favorable cli- centers, entertainment complexes and casinos are planned to mate, a botanical garden with collection of exotic plants from be built in Avaza. all over the world will be built and numerous parks with The first phase of construction is carried out in the area of fountains will gladden visitors with its beauty and diversity. 751 hectares, designed to accommodate 30,000 tourists. Un- Hotels der the master plan, there will be an administrative center Starting with the current holiday season, six comfortable ho- and other facilities for tourists: hotels, shopping malls, sports tels with a capacity to accommodate over 1800 people will complexes, including the tennis stadium for 5,000 specta- operate in Avaza. The hotel services will meet high interna- tors, football and athletics arena for 10,000 people, dozens of tional standards. 28 In Focus

Walking and cycling paths will stretch along the river. On both banks, construction of 28 restaurants, cafes and bars is planned. Six artificial lakes with beaches in a total area of four hectares will decorate the landscape. Four major sports complexes and many sports grounds will appear on the banks of the channel.

Entertainment Construction of a matchless entertainment center for chil- dren and adults in Central Asia is planned to be built in an area of 30 hectares. It will include a "Disneyland" with a variety of attractions, pavilions for carting, ice-hall, a planetarium, aquarium and dolphinarium, as well as a mini-park with accurate copies of historic buildings all over the world.

Airport A new international airport with a capacity of 800 persons per hour is being construced in Turkmenbashy city. The airport consists of a main passenger terminal, VIP-hall and the traffic control tower. A new 3.5 km runway will be built besides the existing one. The new airport could receive 7 planes simultaneously and will be equipped with all neces- sary technological equipment and advanced navigation sys- tems. The airport will be commissioned in October 2009. A new 22 km motor road will connect the airport with the tourist zone.

Cruises Hiking trails to historic and natural monuments of the region will be organized for tourists who would like to learn more Artificial River about Turkmenistan, its history, culture and everyday life. So A marine channel, crossing the whole territory of the future far, the following cruise itineraries to visit the picturesque is- resort, will be one of the zests of the project. The length of the lands in the Caspian Sea have been designed: artificial river is 7 kilometers and the width of 50-60 meters • the Ogurchinsky Island, 100 km from Avaza inhabited allows small vessels to pass. Seven road and four pedestrian by gazelles, flamingo and other wildlife listed in the Red bridges will connect both banks of the river. Book; In Focus 29

• Karshi settlement, 80 km of Avaza with curative radon sources; • Gyzylsu Island, 12 km of Avaza, known for the beauty of its nature, where construction of tourist facilities and restaurants is planned in the future. Tourists, who prefer the exotic tourism, will be invited to ride camels in the Karakum desert.

Investment Privileges • Entry visas and permits to foreign specialists and work- ers arriving in Turkmenistan to work in the tourist zone for the construction and operation of the facilities in the zone are issued expeditiously, without charging consul- ar and registration fees; • Visas for tourists arriving in Ashgabat and Turkmen- bashy to rest in the tourist zone shall be processed un- der the simplified procedure at the place and time of arrival; • Subjects of the tourist zone are provided with tax ben- efits granted in accordance with the Tax Code of Turk- menistan, exempting them from paying value added tax during the construction and installation works as- sociated with building of new tourist facilities and their infrastructure and during fulfilling services to receive tourists, including accommodation, catering, provision of individual daily and medical rehabilitation services, entertainment, provided by subjects of the tourist zone on the territory of this zone within 15 years from the date of putting the facilities into operation.

Benefits to the property tax apply to: • Property used to carry out construction and installation Certification of equipment and materials imported into works associated with the erection of new facilities to re- Turkmenistan by investors and other persons engaged in ceive tourists and their infrastructure in the tourist zone construction and operation of facilities in the tourist zone is or the completion of the unfinished construction sites; made without charge for certification services. Subjects of the • Property of new facilities to receive tourists and their in- tourist zone are provided with: frastructure in the tourist area, within the first 15 years • Transport (air, rail and water) to deliver cargo for the con- from the date of putting them into operation. struction and operation of the facilities in the Avaza na- tional tourist zone in accordance with the terms of agree- Income Tax Benefits ments; • Transportation of specialists, workers and tourists at the Taxable income is reduced by the amount of profits earned international and domestic flights; from providing services to receive tourists, including accom- • Organization of charter flights for this purpose. modation, catering, provision of individual daily and medi- The project is another sign of change in the Turkmen econo- cal rehabilitation services, entertainment (besides gambling my, which until recent years was mostly closed to foreign cor- industry), provided by the subjects of the tourist zone in the porations. the President hopes that the development would territory of the zone – during the first 15 years from the date help his energy-rich country diversify its economy. Accord- of putting into operation of the facilities. ing to the President, this new facility would entice investors to his Central Asian desert nation of five million. Other Privileges Today, after only two years since the start of the project, it Registration of investment projects and entities engaged is already hard to imagine that on the place of the current in the construction and operation of facilities in the tourist construction boom taking place in Turkmenbashy, which is zone is effected with charging a registration fee. The subjects taking shape of an important center of the tourism industry, of the tourist zone are exempt from: there once was the lifeless space. The changes that have taken • Payment of customs duties and taxes upon importation place are not only evidence of the intensive economic growth into Turkmenistan of goods set for the construction and of Turkmenistan, but the fact of international recognition of operation of the tourist zone; the country as a reliable and proven partner. • Payment of exchange fees for the registration of con- tracts; • Deductions from earnings to the extra budgetary funds established by the legislation of Turkmenistan. ECO Times Editorial Board ECONOMY 30 Energy & Minerals

urkmenistan's gas industry is one of the leading sec- tors of the Turkmen national economy and its "loco- motive". Established over 40 years ago, it has rapidly Tgrown in a short span of time and now makes its wor- thy contribution to the economies of not only the country itself, but also other CIS countries. Since 1999, Turkmenistan has been annually increasing pro- duction and exports of this most valuable energy raw material. In the recent years, powerful gas extracting and processing complexes have sprung up, new fields have been found, and gas transporting enterprises have been constructed. The coun- try has been completely gasified and the population gets "blue fuel" supplies free of charge. The figures show the development of underground reserves. 149 gas and gas condensate deposits have been discovered in Turkmenistan. Their reserves make up 4,970,768 million cub m, including 136 on-shore fields and 10 in the Caspian shelf. 54 fields with reserves over 2.6 billion cub m are under exploita- tion, 11 deposits have been prepared for exploitation, 73 pools are under exploration, and 11 fields are in conservation. "Turkmengaz", "Turkmenneft" and "Turkmengeologiya" State Concerns are engaged in gas extraction in the country. "Turk- mengaz" State Concern produces over 80% of the total gas production. To increase gas reserves, the exploration drilling is carried out at the accelerated rates with the help of up-to- date drilling rigs able to ensure penetration of deep wells (up to 6,000 m), geophysical and other equipment. Active application of the latest technologies is under way. De- spite considerable amount of exploration works, the territory of the country has not been surveyed completely yet. The average density of seismic profiles makes up 0.39 km per one square kilometer in Turkmenistan and the exploration drilling density 20.5 m per 1 sq km. As a matter of fact, only the upper layers of the oil and gas bearing deposits have been surveyed. Con- sidering that the explored reserves and cumulative extraction make up only about 25% of hydrocarbon resources, continua- tion of prospecting works opens wide opportunities to transfer estimated and promising resources to the commercial reserves Turkmenistan's category that will make it possible to reach the level of hydro- carbons production set by the Strategy of Turkmenistan's oil and gas complex development until 2020. Eastern Turkmenistan, occupying an area of 180 thousand sq m, is the main gas producing region in the country. Over 1000 exploration wells have been drilled which makes up almost one Riches of third of the total drilling conducted in Turkmenistan. Over 60 gas and gas condensate fields have been discovered, includ- ing the giant Dowletabat pool with estimated 4.5 trillion cub m of gas and the big Malay, Shatlyk, Ojak and Samantepe and Blue Fuel other deposits, in the region. The forecasts of geologists on the presence of the biggest beds of hydrocarbons on the vast area in the south-east of the country in Mary province have been confirmed. It is anticipated this region will become the main resource basis for the development of the gas industry in the Reserves nearest 15-25 years. Until recently, the gas extraction in western Turkmenistan was "Demonstrating flexibility in limited to associated gas extracted during the development implementing projects, Turkmenistan of oil and oil and gas fields. Now, natural gas extraction has started here. "Blue fuel" extraction in western Turkmenistan, is ready to supply gas at any point on as well as in the country as a whole, exceeds the domestic con- sumption many times. Gas surplus, after its corresponding its border, including the Caspian Sea treatment, is exported to the Islamic Republic of Iran and to coast, to all interested customers" the north through Kazakhstan. Energy & Minerals 31

Forecasts of geologists on the presence of the biggest beds of hydrocarbons on the vast area in the south-east of the country in Mary province have been confirmed.

In the recent decades, oil and gas has been explored in the Turkmen sector of the Caspian Sea, almost all area of which represents interest from the point of view of its hydrocarbon reserves. As a result of conducted geological and exploration works, a total of 161 oil and gas fields, including 30 oil and gas and 131 gas and gas condensate ones, have been discovered on the mainland and in the sea. Moreover, drilling enterprises of "Turkmengeologiya" State Concern carry out a lot of work in Turkmenistan's other promising regions with accumulated large reserves of natural gas. It is necessary to point out that hy- drocarbons extracted in Turkmenistan possess high commodi- ty properties: they are practically devoid of aggressive chemical elements sulfur, carbon dioxide and hydrosulfide gases. Turkmenistan annually upgrades the oil processing indus- try's capacity represented now by Turkmenbashy Oil Refiner- ies Complex and Seidi Oil Refinery. Deep oil and natural gas processing with the liquefied gas being one of the products is among the first priority tasks. Nearly 2.0 million tons of liquefied gas has been produced in last five years by Turkmenbashy Complex of Oil Refineries and the Naip gas processing complex. In line with the increasing world demand for liquefied gas, the exports in 2006 increased almost by 400 thousand tons. The specific gravity of exported liquefied gas in the production structure has steadily grown from 4.4% in 1997 to 96.7% in 2006. The production capac- ity of liquefied gas output is to grow by 94,000 tons this year alone, and its production will continue to grow up to 2 million tons in 2020. For these purposes, it is planned to construct over 20 plants on the fields with high content of propane-butane fractions in the east of the country. The Turkmen liquefied gas is exported to Iran and Afghanistan and a number of other countries in the region. In the future, with upgrading of the production capacity, it will be exported to Pakistan, China, South Korea and Japan. Currently, liquefied gas is delivered to consumers by the railway transport. The pro- jected considerable increase in liquefied gas output and insuf- ficient consuming capacity of the nearest local markets require the use of alternative export routes, access to the main regions of the world liquefied gas markets, and creation of the reli- able high capacity sea transportation system. In this context, construction of the terminal at Kiyanly port to store and ship exported liquefied gas has been started. The port enables Turk- menistan to export liquefied gas to the sea ports of neighboring Caspian states and further to Europe. The existing gas extraction and treatment capacities are capa- ble of ensuring commodity gas supplies up to 220 million cub m per day. Work on creation of additional capacities on the new fields is going on. A number of projects on development and 32 Energy & Minerals

reconstruction of existing networks of Caspian Sea coast, to all interested cus- gas transportation in volumes specified tomers. in the existing export contracts is being To realize the set plans, it is necessary realized. Turkmenistan's gas transport- to increase the capacity of existing ex- ing system operates 8 thousand km long port trunks as well as to lay new routes pipelines in one line calculation. Turk- providing outlets to new export markets. men gas is exported in two directions: to Turkmenistan has been successfully ad- Ukraine and Russia in the north and to dressing this issue. By 2007, the Turk- Iran in the south. By 2010, natural fuel men sections of the gas pipeline system exports will grow more than twice. Most leading to European countries will have of exports, as before, will flow in the Eu- been modernized. The project capital in- ropean direction. vestments will make up US$ 730 million. In 2005, Turkmenistan exported about The favorable geographical location in 45.5 billion cub m of gas to the Russian the center of the Eurasian continent and Federation, Ukraine and the Islamic abundance of the natural resource en- Republic of Iran. Turkmenistan and able Turkmenistan to export raw materi- the People's Republic of China signed als to any part of the continent and make an agreement on construction of a gas the country attractive to investors from pipeline. Under the agreement, China in- all over the world. tends to buy 30 billion cub m of blue fuel' At present, the projects on exploration, annually during 30 years. The Turkmen- prospecting and development of hydro- Iranian agreement on increasing Turk- carbon deposits cover the major volume men natural gas supplies to Iran up to 14 of direct foreign investments in Turk- billion cub m in 2007 was concluded. The menistan's oil and gas complex. The use Turkmenistan-Afghanistan-Pakistan gas of international experience in applying pipeline project is one of the most prom- advanced technologies in local condi- ising. The three countries confirmed their tions, rendering services, and delivering decision to lay the pipeline by signing the equipment enables the industry to in- interstate Agreement in 2002. The pipe- crease its productive effectiveness. The line throughput will make up 33 billion significant increase of investment in the cub m of gas per year. national oil and gas complex is foreseen In April 2006, the Ministry of Oil and to achieve the planned indicators in hy- Gas Industry and Mineral Resources of drocarbons production and their export Turkmenistan and the representative to foreign markets. In the period from delegation of Gazprom Open Joint Stock 2005 to 2020 over US$ 60 billion is to Company negotiated in Ashgabat the an- be invested in development of the indus- nual supplies of 50 billion cub m of Turk- try with over 40% being direct foreign men gas to the Russian Federation with- investments under Production Sharing in next 3 years. Adhering to the principle Agreements. The well-known foreign The subdivisions of the State Concerns, of multiple gas deliveries, Turkmenistan companies, as Argomar Oil Ltd, Middle Turkmenneft, Turkmengaz and Turk- considers other gas supply routes to Tur- East Petrol Farm, Petronas, British Pe- mengeology, render the major volume key and further to Europe. Demonstrat- troleum, Vitol, Itochu, Som Petrol, BP of service in the oil and gas industry. ing flexibility in implementing projects, Oil International, Dragon Oil, Maersk The share of foreign companies does Turkmenistan is ready to supply gas at Oil and others successfully operate in the not exceed 10 percent. Relying on the any point on its border, including the Turkmen market. establishment of the national service sector Turkmenistan is determined to collaborate with foreign companies in designing the technologies not yet ap- According to specialists, over 80 per- plied by the Turkmen specialists. Turkmenistan explores and develops cent of hydrocarbon reserves occur in the on-shore hydrocarbon deposits pri- marily by its own. Nevertheless, the for- insufficiently explored oil and gas accu- eign companies have a lot of opportu- mulation zones at a depth of over 3 km. nities to do business in Turkmenistan. The opportunities include delivery of The prospects for the discovery of new modern equipment, technologies, and deposits are linked to the development services. Most of oil and gas equipment is not produced in Turkmenistan and of two large Middle Caspian and South- the demand for it can be met through imports. ern Caspian oil and gas bearing basins. To achieve the planned oil and gas pro- duction level till 2020 the state con- cerns and corporations are planning to Energy & Minerals 33

drill over 1,300 production and prospect reserves and about a quarter of natural with foreign companies. Besides, Turk- wells. gas reserves Turkmenistan is rich in. Ac- menistan is interested in using the latest The fleet of drilling rigs and well over- cording to specialists, over 80 percent technologies and up-to-date equipment haul equipment is being modernized. of hydrocarbon reserves occur in insuf- in the offshore oil production. The task The drilling technologies are being up- ficiently explored oil and gas accumula- is to establish the national drilling fleet. dated: the technologies of drilling large- tion zones at a depth of over 3 km. The Turkmenistan is considering the foreign size holes, horizontal drilling and some prospects for the discovery of new de- companies' proposals on the placement others are being applied in production. posits are linked to the development of of contracts for building drilling units, Within the next 4-5 years, Turkmenistan two large Middle Caspian and Southern work boats and shore base. is expected to extract almost half of its Caspian oil and gas bearing basins. The bulwark and priority of the national total amount of oil and gas from deep Till 2020 Turkmenistan relies on the ac- economy, the steadily developing nation- horizons in Turkmenistan, as a result, tive participation of foreign investors in al oil and gas complex has approached there is a need in purchasing appropriate developing hydrocarbon resources in the the 15th anniversary of independence equipments and technologies ensuring a Turkmen sector of the Caspian Sea. The with the great achievements. Turkmeni- well structured reliability. government of Turkmenistan adopted stan has firmly established itself as a big The prospects of Turkmenistan's oil and the Program of licensing of the Caspian energy producer, and upholds its high gas sector development in the next ten Turkmen sector, assigning 32 blocks international status. The abundant re- years are related to intensive develop- for hydrocarbon exploration and pro- serves of hydrocarbon material hidden ment of the Caspian Sea's Turkmen shelf. duction. Over 25 oil companies, includ- in Turkmenistan's depths continue to According to the exploration data, the ing those from Europe, Russia and the serve the young state's development and abundant hydrocarbon accumulations United States, took a keen interest in the prosperity. are concentrated in the depth between proposed blocks. 2,000 and 7,000 meters. Estimated 12 To attract foreign investments in the ex- million tons of oil and 6.2 trillion cub ploration of offshore deposits is a priority Prepared by the ECO Times Economy Desk based on an m of gas is more than half of petroleum direction of Turkmenistan's cooperation article produced by Akhmetjan Nuriev of Turkmenistan.ru 34 Energy & Minerals Iran, China Ink $5b Oil Deal

"Total" Replaced with Energy- Starving China

ran and China signed a $5 billion deal to develop up- Mosconi said Total would remain a ‘key operator' in South stream phase II of the South Pars gas field in Beijing, Pars, which has reserves of about 14 trillion cubic meters of said Managing Director of National Iranian Oil Com- gas--or about 8 percent of the world's total reserves. pany Seifollah Jashnsaz. "We are not used to enter a major project without remaining TheI South Pars gas field has reserves of about 14 trillion cubic a key operator. Our role cannot change in a deep way and we meters of gas - or about 8 percent of the world's reserves. will remain a key operator of the project," he said. Speaking to IRNA, he said due to the neg- Total was officially commissioned to develop Phase II of ligence of French Oil Major Total and its South Pars. However, Iran announced in March that it had repeated delays, the Iranian side decided found a new partner to replace Total in the project. The to sign the deal with the Chinese company French company has been under US pressure to abandon CNPC. CNPC is already a major partner in cooperation in Iran's energy projects. Iran's energy projects. Iran signed a $1.7 bil- lon deal with CNPC in January for the development of All-Out Cooperation Iran's North Azadegan oilfield which is estimated to have Meanwhile, Iranian Foreign Ministry Spokes- six billion barrels of oil in reserves. man Hassan Qashqavi called for accelerated "We could not wait for them any longer and decided to expansion of mutual cooperation between sign the deal worth $4.7 billion with the Chi- Iran and China in all the various nese company," he said. "Total can con- fields and in a balanced form. tinue its cooperation in the downstream "The age-old ties of Iran and section of the South Pars as well as Pars China require that the level of LNG if it desires," he underlined. two countries' cooperation be enhanced in all fields and Western Sanctions Futile in a balanced form," Jashnsaz continued that the he said in a meeting policies of the West, es- with Chinese Depu- pecially the US, to impose ty Foreign Minister sanctions on Iran's oil and Wang Guangya in Bei- gas industries are futile and inef- jing. Qashqavi further fective. noted Iran's role in resolving He said despite the West's expectations that Irani- regional and international problems, ans will be crippled and cannot develop its oil and and expressed hope that the two gas reserves if they pull out of Iranian projects, the countries' cooperation would bolster conclusion of different accords for developing oil in all fields. "Relying on the common and gas fields shows that the policy of the West has Asian identity can bolster Asia's coop- failed. He said the country's oil and gas industries today eration with the world," he said, men- are more vibrant and undergo development process more tioning that Iran's diplomacy is in pursuit of making an op- vigorously than in the past. He added that based on cur- timum use of the two countries' capabilities and possibilities rent indices, sanctions don't have the slightest impact on the in a bid to further expand the two states' relations. country's oil and gas industries. During the meeting, Guangya pointed to the good relations between the two countries, and said, "China attaches much Total Still Involved significance to the durable expansion and consolidation of the two countries' relations and assumes it as among its Total says it is still involved in the development of Iran's principal policies," Qashqavi, who heads a media delegation South Pars gas field, one day after Iran replaced it with a in his visit to China, is in the country at the invitation of the Chinese firm. Chinese government. In recent months, Iranian and Chinese "We are still involved in this project and especially in the ma- private sectors have signed dozens of agreements to boost co- jor project of South Pars II, combined with the liquefied natu- operation in various economic fields. ral gas (LNG) train," Jean-Jacques Mosconi, head of strategy Tehran-Beijing trade volume has jumped from $400 million and planning at Total, told the Reuters Energy Summit. in 1994 to $29 billion in 2008. Iran currently supplies 13 Mosconi did not comment on Iran-China deal but said, "For percent of China's oil and is a major supplier of LNG to the sure some Chinese companies are very active to try to play a energy-hungry country. bigger role in Iran." ECONOMY Trade & Investment 35

Mutual Coop. Kyrgyzstan Investment Potentials Attracting Turkey as One of Top 5 Kyrgyzstan's Trade Partners

yrgyzstan considers Turkey to be one of its main for- Trade eign partners and Kyrgyz-Turkish relations appear to Turkey is one of Kyrgyzstan's major trading partners. Kyr- Kbe steadily developing, especially in the areas of trade gyzstan exports 25 percent of its total volume of exported and economic cooperation, education and culture. This was vegetables and fruits to Turkey, Kyrgyzstan Prime Minister highlighted in a speech by Kyrgyz President Kurmanbek Ba- Igor Chudinov said. In addition to this, Kyrgyzstan sells Tur- kiyev at the Kyrgyz-Turkish Business Forum, held on May 27 key wool yarn and cotton fiber. Kyrgyzstan exports 15 percent in Bishkek, reports Maria Levina of Times of Central Asia. of the woolen yarn it produces and 10 percent of its cotton The forum was attended by about 300 representatives from fiber to Turkey. In 2008, trade turnover between thetwo Kyrgyz and Turkish business circles. countries amounted to $239 million, whereas in 2004 it was Turkey has the capacity to invest more in the economy of $88 million. In 2008, the volume of Turkey's import to Kyr- Kyrgyzstan, stressed the President of the Turkish Republic gyzstan amounted to $191 million. Abdullah Gul. This was Abdullah Gul's first visit to Kyrgyz- Both sides noted that trade turnover between the two coun- stan as the President of Turkey. Before this, he visited Kyr- tries does not correspond to the great potential of their rela- gyzstan as the Turkish Minister of Foreign Affairs. tionship. The trade turnover between Kyrgyzstan and Turkey should be increased to $500 million or $1 billion, said the Kyrgyzstan's Investment Potential Turkey's Industry and Trade Minister Nihat Ergun. Kyrgyz- Big Turkish companies are going to pay more attention to stan, meanwhile, has to develop a sound legal framework and Kyrgyzstan, according to Abdullah Gul. The Turkish Presi- implement all relevant arrangements. dent spoke about both the big investment potential of Kyr- Turkey and Kyrgyzstan discussed the possibility of conclud- gyzstan and the Government's efforts to improve the business ing an agreement on free trade. climate in the country. The essential condition for economic development is political stability, and Kyrgyzstan has estab- Collaboration lished it, Gul said. The Kyrgyz government will do its best to attract Turkish Turkish investors could share their experience with the Kyr- businessmen to invest in the country, said Kyrgyzstan First gyz side in the construction of small and medium-sized hydro Vice Prime Minister Omurbek Babanov at the meeting with power plants, as well as in the tourism, mining, agriculture Turkish businessmen. Currently, negotiations on the estab- and communications sectors. lishment of a major joint airline are being held between Tur- Turkey ranks among the top five countries with major invest- key and Kyrgyzstan, Babanov added. ments in the economy of Kyrgyzstan. Increasing trade and Turkish businessmen are ready to expand their business in economic relations with Turkey remains a priority for Kyr- Kyrgyzstan, but they currently express reservations concern- gyzstan, President Bakiyev stressed. ing the lack of preferences for certain taxes. About ten thousand students in Kyrgyzstan are educated in Turkish entrepreneurs have made a number of suggestions institutions which were established with the assistance of to the Kyrgyz authorities on how they may be able to make Turkey. In May 2009, the volume of Turkish investments to- improvements. In particular, they asked to reduce the sales taled $209 million. In Kyrgyzstan, there are more than one tax. Currently, the sales tax is 2.5 percent, while for imported hundred Turkish firms. They are working in various sectors of goods it is 1.5 percent. This situation does not stimulate the economy, such as banking, construction, production of plas- manufacturing works and does not support local investors, tic windows and doors, production of furniture and trade. believe the businessmen. 36 Trade & Investment

Energy, communications, agriculture, tourism and mining Negotiations are priority sectors for investments in Kyrgyzstan, stressed As a result of the Kyrgyz-Turkish negotiations, the Joint Dec- the Kyrgyz Prime Minister Igor Chudinov. He urged Turkish laration has been signed. The document reflects the inten- businessmen to establish enterprises related to the process- tion of the two states to develop close cooperation in various ing of agricultural products. The development of the halal areas. industry in Kyrgyzstan would help to find new markets in the The two countries expressed their intention to accelerate the countries with Muslim population, said the Prime Minister. implementation of joint projects in transport and commu- nications, energy, mining, banking, finance and agriculture. Energy The implementation of joint projects will continue through Through developing energy projects, Kyrgyzstan could be- privatization and tenders, as well as solving the problems come one of the largest suppliers of electricity in the region, faced by Turkish companies. Chudinov believes. Turkey welcomes Kyrgyzstan determination to resolve water The Kyrgyz side presented information on projects in hydro- and energy issues in line with constructive cooperation for power, building small and medium-sized hydroelectric power mutual benefit, says the Joint Declaration. stations that might be interesting for the Turkish investors. In Kyrgyzstan, the telecommunications and financial sectors Kyrgyzstan is ready to present 90 projects on building small also have good prospects for cooperation, said Turkish Presi- hydropower stations to Turkish entrepreneurs, said the Kyr- dent Abdullah Gul. Several Turkish banks have expressed an gyz Prime Minister. He raised the idea of Turkish investment interest in working in Kyrgyzstan, while commercial banks in the CASA-1000 project, which would help to deliver elec- with Turkish capital currently working in Kyrgyzstan intend tricity from Central Asia to South Asia. Turkish entrepreneurs to develop their presence in the country and increase their expressed interest in projects in the energy sector of Kyrgyz- lending activity. stan. "We are ready to assist Kyrgyzstan in the development Conducting business meetings between representatives of of feasibility studies and in the design and implementation of both countries enhance trade and economic relations be- hydro-power station projects," President Gul said. tween the two states.

Kazakhstan Tricks of Trade Do's and Don'ts for Foreign Entrepreneurs

Do's 2. Carefully study the market before making 1. Take medium- to long-term approach to the any commitments—In terms of goods and services market—The Kazakhstani market operates with 20- markets, Kazakhstan is relatively well integrated into 200 percent profit margins (depending on the types the world economy. The country's companies trade of ventures), paying solid risk premiums. However, with 135 nations having alternative sources of supply typically an SME(small-medium enterprise) company/ and working on different terms at various price ranges. joint venture can count on earning its first profit after 2-3 South Asian, Russian, and Eastern European companies years of doing business in Kazakhstan. carry out aggressive marketing strategies in Kazakhstan. OF Trade & Investment 37

Consequently, a U.S. company can enter the market through due diligence before the project is launched and more effectively after studying generally accepted price occasionally in the course of project implementation. levels, terms of payment and delivery, etc. Obtaining a comprehensive understanding of the market may 7. Diversify activities whenever possible— require one or several preliminary on-site visits and Kazakhstan's legal system is known for its instability some investment into market analysis. These initial with customs duties, export and import preferences, and investments, however, will save a company from wasting local taxes fluctuating on a regular basis. The experience resources as a result of a poorly chosen market entry of the country's leading enterprises vividly supports the strategy. need for diversification as a key to successful long-term company development. 3. Ensure a constant market presence—The first sales usually do not happen immediately since potential local partners, clients, and government officials prefer to Don'ts get acquainted with the U.S. firm at a more informal level 1. Do not consider Kazakhstan "a far away before buying. Specifically, establishing a representative stan" with distances preventing effective office or hiring an individual representative (avoiding business relations—Research indicates that it costs establishment of a legal entity) can ensure effective market $3 to bring one kilogram of air cargo from New York to presence. This option is favorable from the taxation Almaty, while it costs $5 to bring one kilogram of air cargo standpoint since Kazakhstani legislation provides for zero from continental Europe to Almaty. Transportation costs rate income tax on representative offices and a number for a 20-foot container are around $4,500 on New York- of other tax breaks. Salary levels are relatively low even Almaty route and $3,800-3,900 on Amsterdam-Almaty for skilled professionals, making a representative office route, which constitutes an insignificant difference when an inexpensive but efficient operation. shipping the vast majority of goods.

4. Find yourself a tax and legal advisor 2. Do not rely on printed matter and before forming a partnership or setting up a promotional materials—Kazakhstani customers legal entity—The Kazakhstani legal system imposes tend to judge goods (industrial as well as household) by serious penalties even for minor tax and administrative their physical appearance. Consequently, it is much more violations, even if they are discovered several years after effective to attend fairs, exhibitions, and other events, establishment of the legal entity. That is why having bringing samples of goods or equipment rather than competent tax and legal advisor from the outset can just sending promotional materials and publications. be crucial for ensuring effective development of the Logistical difficulties and costs associated with bringing company. in the samples usually pay back multifold.

5. Maintain positive working relations with 3. Do not judge partners by their appearance— government officials whenever possible Because of the influence of local traditions, some and participate in government tenders—In Kazakhstani companies tend to present themselves very Kazakhstan, government procurement serves as one well, while having no substantial activities to support of the key types of guaranteed demand. Additionally, the appearance. On the other hand, other companies fulfillment of government orders and participation in might appear to not be as savvy, but nonetheless have tenders can create a positive company image, providing a more solid financial standing. It can be best to make valuable connections and saving time when dealing with preliminary judgments only after getting to know the wide range of inspectors. the company's current business activities, history, managers, etc. 6. Ensure your partner's reliability and try to know intentions—In a number of cases, local partners tried to push their foreign counterparts out of joint ventures as soon as the business started to gain some recognition and profitability. Potential wrongdoings on the part of the partner always remain a possibility in Andrey Chursov Kazakhstan. Consequently, it is advisable to carry out Former "BISNIS" Representative in Kazakhstan OF ECONOMY 38 Transportation

Interview ECO Region, The Business Link Between Asia & Europe

During April 27-29, 2009, a Seminar on the "TIR Convention" pertaining to the subject of international road transport system was held at the ECO Secretariat in Tehran. The Seminar was attended by UNECE (United Nations Economic Com- mission for Europe and IRU (Interna- tional Road Transport Union) officials. The Editor of ECO Times had an oppor- tunity to interview Mr. Haydar Ozkan, an IRU General Delegate to Middle East and the (ECO) Region. The full text is as follows:

hy is road freight so important com- pared with other modes of transporta- tion? WManufacturing and international trade be- came impossible to sustain without road freight logistics. Whether we like it or not, it is the most flexible, versatile, eco- nomic, productive and competitive form of transport for the vast majority of industry's needs. Rail, shipping (including inland waterways) and air freight play their part – a vital role in the movement of freight – but they are simply not always viable or sufficently competitive to be able to take over from road freight.

So, the ECO Region has suddenly gained new signifi- cance in the Asia-Europe business interlink? Yes! The remarkable development of Asian economies is bring- ing unprecedented changes in the transport links between Eu- rope and Asia. China is Europe's fastest growing export mar- ket. Europe exported Euro 72 billion worth of goods to China in 2007 and this figure has increased by about 12% over the Transportation 39

first 9 months of 2008 compared to the same harmonize the administrative formalities of period in 2007. So, in this context the role of international road transport. As of January ECO Region as the key linkage between Europe 1, 2006, there were 66 parties to the Conven- and China has become increasingly crucial. tion. The TIR Convention was adopted under Europe's imports from China have grown by the auspices of the United Nations Economic about 21% per year for the last five years. In Commission for Europe (UNECE). 2007, the EU imported Euro 232 billion worth of goods from China. China today is Europe's Is TIR's role limited to customs transit biggest source of imports of manufactured by road only? goods, whereas almost two decades ago, trade No! The TIR system not only covers customs between China and Europe was practically nil. transit by road but a combination is also pos- This implies an increased trade and conges- sible with other modes of transport (for exam- tion on traditional routes. New routes are ple, rail, inland waterway and even maritime created with fresh regulations and modern or- transport), as long as at least one part of the ganizational methods. Among the major play- total transport is made by road. ers having a crusial role in international road To date, more than 40,000 international transportation is the the International Road transport operators have been authorized (by and Transport Union or IRU. their respective competent national authori- ties) to access the TIR system, using more than What is IRU? 3.2 million TIR carnets per year. The International Road and Transport Union IRU established a permanent delegation in (IRU) is the international guarantor of the TIR Moscow for CIS region. Since 2005, another system that relies on the TIR Convention, under permanent delegation was established in Is- which trucks are sealed by customs upon depar- tanbul, Turkey, which is delegated to the Mid- ture and can cross several borders without fur- dle East, involving ECO Region, South Asia ther checks until they reaches their destinations. and also some regions of North Africa. The TIR organized by the IRU has expanded When was it founded? in the last decades to most of the Caucasus and IRU was founded in Geneva on March 23, 1948. Central Asian countries, as well as expanding It is an international organization which up- to the Middle East, while other Customs Con- holds the interests of the road transport indus- ventions are still not providing guarantees in try worldwide. Via its network of 181 national those regions. Member Associations in 71 countries across all five continents, it represents the operators Why ECO countries should join TIR of buses, coaches, taxis and trucks, from large system? fleets to individual owner-operators. Because it minimizes administrative and fi- nancial burdens and customs duties and taxes What is the TIR system? that may become due and are covered by an TIR system or TIR Convention stands for international guarantee. In other words, goods "Transit International Router" or "Internation- move across international borders with mini- al Road Transit". Basically it is the movement mum interference, encouragement of interna- of goods, which originates from a customs of- tional trade, and economic benefits for indi- fice of departure in one country to a customs viduals and nations. office of destination in another country; with- out requiring extensive and time-consuming My final question, what are the roles border checks at intermediate borders; at a played by UNECE ? cost-effective price; while, at the same time, UNECE's major aim is to promote pan-Eu- providing customs authorities with the re- ropean economic integration. To do so, UN- quired security and guarantees. ECE brings together 56 countries located in the European Union, non-EU Western and Could you elaborate on the historical Eastern Europe, South-East Europe and Com- background of TIR? monwealth of Independent States (CIS) and In 1949, shortly after World War II, the first North America. All these countries cooperate TIR Agreement was concluded between a under the aegis of the UNECE on economic small number of European countries which and sectoral issues. To this end, UNECE pro- led to the creation of the TIR Convention in vides analysis, policy advice and assistance to 1954 under the umbrella of the United Nations governments; it gives focus to the United Na- Economic Commission for Europe (UNECE). tions global mandates in the economic field, in The convention on international transport of cooperation with other global players and key goods under cover of TIR Carnets (TIR Con- stakeholders, notably the business communi- vention) was established in Geneva, Switzer- ty. The UNECE also sets out norms, standards land, on November 14, 1975 to simplify and and conventions to facilitate international co- operation within and outside the region. 40 Transportation

North-South Transportation Corridor

The New Kazakhstan-Iran- Turkmenistan Railroad Project Provides Convenient Access to the Persian Gulf & European Markets

he Islamic Development and on the south by Iran and Afghani- Iran is located at the center of this con- Bank (IDB) says it will fi- stan. Their land area is around 4 million sideration because it has the best po- nancially support Iran-Turk- square meters and they together have a sition for being a transit route to the Tmenistan railroad project. population more than 50 million. Persian Gulf and can give secure, cheap According to Fars News Agency, Turk- Most of the area is endowed with natu- and short access to the international men government and IDB signed a ral resources and in the former Soviet waters. memorandum of understanding (MoU), system was providing raw material for on which IDB is committed to deliver the Soviet industry and also agriculture Convenient Access financial support to the Iran-Turkmen- products. Iran's geographic location On December 1, 2007, and in a historic istan (Barkat-Atrak-Gorgan) railroad permits it to play a significant role in ceremony, President Gurbanguli Berdy- project. political and economic consideration of muhamedov of Turkmenistan used a The MoU covers establishment of Middle East and Central Asia. gold-plated spanner to bolt together North-South Transportation Corridor The transportation network in Central two sections of rails, marking the for- (Kazakhstan-Turkmenistan-Iran rail- Asia has crucial role in regional abilities mal start of the construction of railroad road). The 900-kilometer railroad will as following cases; renovation of trade link between Kazakhstan, Turkmeni- link Europe and Asia transportation activities with other CIS countries ac- stan and Iran. networks providing shortest route from cording to international labor division Bereket, formerly known as Kazanjyk, Europe to the Persian Gulf ports. and expansion of foreign trade with a small town in the Balkan province of The five Central Asian republics of Ka- other parts of the world. western Turkmenistan where the cer- zakhstan, Uzbekistan, Turkmenistan, The Central Asian states for decreasing emony took place, is the center point Kyrgyzstan and Tajikistan occupy a geo- dependency on Russian networks have where the railroad lines coming from graphically contiguous area, on the East to find different routes. At the moment, Kazakhstan and Iran would meet. It is China, on the west by the Caspian Sea they look at their southern neighbors. about 300 kilometers west of Ashgabat. Transportation 41

Kazakhstan's Minister for Transport was signed by Turkmenistan, Kazakh- also be instrumental in exploiting the and Communication Jenis Kasym- stan and Iran on 16 October, 2007, in non-hydrocarbon resources of Turkmen- bekov, Iranian Minister for Road and Tehran on the sidelines of the second istan at Garabogazgol and Gyzylgaya. Transportation Mohammad Rahmati, Caspian summit. Before performing the opening cer- and Director of Iran Railroads Hassan The initial load capacity of the line emony, President Berdymuhamedov Ziyari were present in the ceremony. would be 5 million tons of cargo annual- signed a decree to clear any bureau- As Berdymuhamedov put it, the 900- ly, to be expanded up to 12 million tons cratic hurdles from the way of the km railroad line would provide more by 2012. In addition to cargo, the rail project. According to the decree, land than a dozen countries with convenient link is expected to handle passengers. would be provided free of cost for lay- access to the Persian Gulf and Euro- A railroad official said that cargo from ing the railroad line. Turkmenistan pean markets. He underlined that poli- the railroad stations Astrakhan-Makat- has declared it a priority project with tics should defer to economy. The new Beyneu-Yeraliyevo-Turkmenbashy- political and economic significance. railroad line would start from Uzen in Bereket-Gorgan (Russia, Kazakhstan, However, Iran has agreed to build the Kazakhstan and terminate in Gorgan Turkmenistan and Iran) will be deliv- railroad link between Gorgan (Iran) north of Iran. The line would follow the ered to the sea ports of Persian Gulf. and Bereket (Turkmenistan). This link Uzen-Gyzylgaya-Bereket-Etrek-Gor- This route will decrease the expenses would connect with the Turkmenbashy gan route. and the time of transportation of cargo (Turkmenistan)--Eralievo (Kazakh- It is expected that the rail link would and of passengers, he said. stan) that was approved during Berdy- be ready for service by December 2011. The railroad link, part of the broader muhammedov's recent visit to Kazakh- However, the authorities said that it North-South corridor concept, would stan. Together, these two links would could be completed as early as Decem- make Turkmenistan a hub of cargo and provide a shortcut between Iran and ber 2010. The tripartite agreement for passenger movement in north-south and Central Asia. the construction of the railroad link east-west directions. The rail link would ECO Times, Economy Desk ECONOMY 42 Tradeshows

KazBuild Iran Date: 02-SEP-09 to 05-SEP-09 Venue: Atakent Int'l Exhibition Center, Upcoming Int'l Almaty Organizer: ITE Group Plc Tel:+(44)-(207)-5965000 Trade Fax:+(44)-(207)-75965111 Shows Heat &Vent Plus Date: 02-SEP-09 to 05-SEP-09 in ECO Region Tehran Int'l Industry Fair Venue: Atakent Int'l Exhibition Center, Date: 06-OCT-09 to 09-OCT-09 Almaty Venue: Tehran Permanent Fair Ground Organizer: ITECA Caspian Organizer: Iran Int'l Exhibitions Co. Tel:+(99)-(41)-4474774 Tel:+(98)-(21)-23959 Fax:+(99)-(41)-4478998 Fax:+(98)-(21)-22042858 Astana Zdorovie (Medical & Pharmaceu- Heating Cooling & Air-Conditioning Ex- tical) hibition Date: 04-SEP-09 to 06-SEP-09 Date: 06-OCT-09 to 09-OCT-09 Venue: Astana Congress Hall, Astana Venue: Tehran Permanent Fair Ground Organizer: Iteca LLP Organizer: Iran Int'l Exhibitions Co. Tel:+(7)-(3272)-583434 Azerbaijan Tel:+(98)-(21)-23959 Fax:+(7)-(3272)-583444 Fax:+(98)-(21)-22042858 Transit-Trans Kazakhstan Irantex Tech Date: 16-SEP-09 to 18-SEP-09 Date: 19-OCT-09 to 22-OCT-09 Venue: Atakent Int'l Exhibition Center, Venue: Tehran Permanent Fair Ground Almaty Organizer: Sammee Paad Novin Co. Organizer: ITE Group Plc Tel:+(98)-(21)-88708390 Tel:+(44)-(207)-5965000 Fax:+(44)- Fax:+(91)-(11)-88708392 (207)-75965111/ 5965018 Book Fair Azerbaijan Date: 10-SEP-09 to 12-SEP-09 Training Managers Conference Mining World Central Asia Venue: Grand Hotel Date: 20-OCT-09 to 21-OCT-09 Date: 16-SEP-09 to 18-SEP-09 Organizer: ITECA Caspian Venue: Olympic Hotel Venue: Atakent Int'l Exhibition Center, Tel:+(99)-(41)-4474774 Organizer: Arya Management Architects Almaty Fax:+(99)-(41)-4478998 Co. (AMACO) Organizer: ITE Group Plc Tel:+(98)-(21)-222488267 Tel:+(44)-(207)-5965000 Education & Career-Azerbaijan Fax:+(98)-(21)-22679682 Fax:+(44)-(207)-75965111 Date: 10-SEP-09 to 12-SEP-09 Venue: Grand Hotel 1st Int'l Cooking Festival Central Asia Leather Organizer: ITECA Caspian Date: 21-OCT-09 to 24-OCT-09 Date: 24-SEP-09 to 27-SEP-09 Tel:+(99)-(41)-4474774 Venue: Artistic Creations Center, Hejab Venue: Atakent Int'l Exhibition Center, Fax:+(99)-(41)-4478998 Halls Almaty Organizer: ExpoKish Organizer: Central Asia Int'l Exhibitions Gas Infrastructure World Caspian, 2009 Tel:+(98)-(21)-77529214 Tel:+(7)-(3272)-584022 Date: 15-SEP-09 to 16-SEP-09 Fax:+(98)-(21)-77657133 Fax:+(7)-(3272)-581668 Venue: Hyatt Regency Organizer: Terrapinn Pte Ltd Tel:+(65)-(65)-62228550 Kyrgyzstan Fax:+(65)-(65)-62263264 Kazakhstan

Beauty Azerbaijan Date: 13-OCT-09 to 15-OCT-09 Venue: Sport & Exhibition Complex Organizer: ITECA Caspian, Tel:+(99)-(41)-4474774 Fax:+(99)-(41)-4478998 Bishkek Telecom Date: 23-SEP-09 to 25-SEP-09 Baku Int'l Healthcare Exhibition (BIHE) Astana Beauty - 2009 Venue: Palace of Sports, Bishkek Date: 13-OCT-09 to 15-OCT-09 Date: 01-SEP-09 to 01-SEP-09 Organizer: ITECA Alatoo Venue: Sport & Exhibition Complex Venue: Sport Complex Alatau, Astana Tel:+(996)-(312)-698994 Organizer: ITECA Caspian Organizer: ITECA Caspian Fax:+(996)-(312)-622194 Tel:+(99)-(41)-4474774 Tel:+(99)-(41)-4474774 Fax:+(99)-(41)-4478998 Fax:+(99)-(41)-4478998 Tradeshows 43

Power Tajikistan Istanbul Wood Processing Machinery Pakistan Date: 27-OCT-09 to 29-OCT-09 Date: 25-SEP-09 to 29-SEP-09 Venue: Kohi-Borbad Congress Hall Venue: Tuyap Fair Convention & Con- Organizer: ITE Group Plc gress Center, Istanbul Tel:+(44)-(207)-5965000 Organizer: Tuyap Fairs and Exhibitions Fax:+(44)-(207)-75965111 Organization Inc. Tel:+(90)-(212)-8866843 Mining World Tajikistan Fax:+(90)-(212)-8866243 Date: 27-OCT-09 to 29-OCT-09 Venue: Kohi-Borbad Congress Hall ZOW Turkey (Int'l Furniture Components Dow University Health Expo Organizer: ITE Uzbekistan & Supply Expo) Date: 03-OCT-09 to 05-OCT-09 Tel:+(998)-(71)-1130180 Date: 01-OCT-09 to 04-OCT-09 Venue: Karachi Expo Center, Karachi, Fax:+(998)-(71)-1525164 Venue: Istanbul Expo Center, Istanbul Sindh Organizer: Survey Marketing & Consult- Organizer: E- Commerce Gateway Paki- ing S.L. stan Pvt. Ltd Turkey Tel:+(34)-(91)-6933458 Tel:+(92)-(21)-4536321 Fax:+(34)-(91)-6943096 Fax:+(92)-(21)-4536330

ART Singapore Date: 09-OCT-09 to 12-OCT-09 Uzbekistan Venue: Pakistan Air Force Museum, Ka- rachi, Sindh Organizer: Artreach Pte Limited Tel:+(65)-62354113 5th Outdoor & Indoor Advertising Solutions Fair Fax:+(65)- 67349332 Date: 10-SEP-09 to 13-SEP-09 Venue: CNR Expo Center, Istanbul Textile Asia - Lahore Organizer: CNR Ekspo Trade Fairs Date: 10-OCT-09 to 13-OCT-09 Tel:+(90)-(212)-4657474 Venue: Lahore Expo Center Fax:+(90)-(212)-4657476 Central Asian Fire Protection & Security Organizer: E- Commerce Gateway Paki- Exhibition stan Pvt. Ltd Promoturk (Gifts & Handicrafts) Date: 15-SEP-09 to 17-SEP-09 Tel:+(92)-(21)-4536321 Date: 10-SEP-09 to 13-SEP-09 Venue: Uzexpocenter Fax:+(92)-(21)-4536330 Venue: CNR Expo Center, Istanbul Organizer: ITE Uzbekistan Organizer: I. T. F. Istanbul Trade Fair Tel:+(998)-(71)-1130180 Expo Pakistan Tel:+(90)-(212)-4657475 Fax:+(998)-(71)-1525164 Date: 23-OCT-09 to 25-OCT-09 Fax:+(90)-(212)-4657476 Venue: Karachi Expo Center CAITME 2009 (Textile Machinery Exhibition) Organizer: Pegasus Consultancy Pvt Ltd Bayram Alisveris Gunleri (Household Date: 15-SEP-09 to 17-SEP-09 Tel:+(92)-(21)-2418551 Consumables) Venue: Uzexpocenter Fax:+(92)-(21)-2410723 Date: 10-SEP-09 to 19-SEP-09 Organizer: ITE Uzbekistan Venue: CNR Expo Center, Istanbul Tel:+(998)-(71)-1130180 Tajikistan Organizer: CNR Int'l Trade Fairs Inc. Fax:+(998)-(71)-1525164 Tel:+(90)-(212)-4657474 Fax:+(90)-(212)-4657476 Textile Expo Uzbekistan 2009 Date: 15-SEP-09 to 17-SEP-09 Zuchex (Int'l Housewares & Gift Fair & Venue: Intercontinental Hotel Electrical Appliances) Organizer: ITE Uzbekistan Date: 12-SEP-09 to 15-SEP-09 Tel:+(998)-(71)-1130180 Venue: Tuyap Fair Convention & Con- Fax:+(998)-(71)-1525164 Int'l Healthcare Exhibition gress Center, Istanbul Organizer: Life Media Group Power Uzbekistan Date: 23-SEP-09 to 25-SEP-09 Date: 23-SEP-09 to 25-SEP-09 Venue: Kohi-Borbad Congress Hall Tel:+(90)-(212)-2528941 Fax:+(90)-(212)-2923420 Venue: Uzexpocenter Organizer: ITE Group Plc Organizer: ITE Group Plc Tel:+(44)-(207)-5965000 Tel:+(44)-(207)-5965000 Fax:+(44)-(207)-75965111 Intermob-Furniture Fair Date: 25-SEP-09 to 29-SEP-09 Fax:+(44)-(207)-75965111 Venue: Tuyap Fair Convention & Con- Tajik Build gress Center, Istanbul World of Sport Date: 15-OCT-09 to 17-OCT-09 Organizer: Tuyap Fairs and Exhibitions Date: 07-OCT-09 to 09-OCT-09 Venue: Kohi-Borbad Congress Hall Organization Inc. Venue: TBA Organizer: ITE Uzbekistan Tel:+(90)-(212)-8866843 Organizer: Int'l Exhibition Group Uzbeki- Tel:+(998)-(71)-1130180 Fax:+(90)-(212)-8866243 stan (IEG Uzbekistan) Fax:+(998)-(71)-1525164 Tel:+(998)-(71)-1385988 Fax:+(998)-(71)-1385987 44 OTHER VOICES

NEWS ARTICLES FROM ECO COUNTRIES

Indonesia Taking Silk Road to Avoid Recession "This is the right time for Indonesia to explore new directions and to travel the Silk Road to look for new investment and trading opportunities in part- nership with Azerbaijan and the other Central Asian Republics."

ndonesia is exploring new paths and has taken the Silk Andry Asmoro of Bahana Securities reported recently (Jakar- Road to help avoid recession, quickly expanding economic ta Post 22.05.09) that the Consumer Confidence Index (CCI) Irelationships with non-traditional trading partners like rose to 102.5 in April, its highest level since 2005. So although Azerbaijan and looking for new deals with the Central Asian exports and imports dropped 19 percent and 24 percent re- Republics on oil and gas, commodities, relatively low cost spectively, consumer demand has remained high and people manufactures from Indonesia and tourism. are buying more local goods. Whilst Japan, Malaysia, Singapore, Thailand and now South Martin Jenkins, analyst at Danareksa Research Insti- Korea have hit recession and downturn following the Octo- tute, said Thursday May 28th (Jakarta Post) that the Ja- ber 2008, Western banking and financial collapse, Indonesia karta Composite (Stock Exchange) Index rose 40 per- maintained growth at 6.1 percent in 2008 and at 4.5 percent in cent this year, the Business Sentiment Index (BSI) hit 2009. The total value of Azerbaijan-Indonesian bilateral trade 117.4 and the Business Confidence in Government Index expanded from only $2.25 millions in 2007, to $396 millions (BGGI) increased from 76.4 in May 2008 to 130.8 now. in 2007 to $1,4 billion in 2008. Second, the government has pursued a policy of trade and There are three main reasons why Indonesia has avoided re- investment diversification, reflecting increased South-South cession and is now a key global economy with growth, size and co-operation partly via ASEAN and increasing economic links confidence. between member states of the Organization of Islamic Confer- First, the size of the 235 million strong Indonesian internal ence. market with an estimated Gross Domestic Product (GDP) in So, increased trade with Azerbaijan fits in with this medium terms of purchasing power of $908 billions in 2008, whilst 70 term policy framework which has been accentuated by the Oc- percent of GDP growth reflects internal consumer demand. tober 2008 Western economic collapse and global economic OTHER VOICES 45 downturn. But the diplomatic and com- Asian Republics, the Indonesian econom- to Azerbaijan and to promote tourism mercial push into non-traditional mar- ic model offers an understandable parallel to Indonesia, plus maybe a market for kets, both for imports and exports, was to their own transition from a state cen- Indonesian skilled labor in Azerbaijan. already under way. tralized economy to a market economy. Indonesia has been dynamic in striking Third, the Indonesian economy has been Azerbaijan with a population of 8 mil- up new energy deals with Iran and Azer- saved from the full ravages of a global cri- lion and GDP by purchasing power of baijan as well as investing in oil and gas sis by somewhat selectively welcoming $74 billion is therefore a natural trading development in Libya. the benefits of free trade and globaliza- and economic partner for Indonesia. This is the right time for Indonesia to tion whilst holding onto a strongly state- Ibrahim A Hajiyev, the Azerbaijan Am- explore new directions and to travel the backed and state-run economy, with 200 bassador to Indonesia interviewed re- Silk Road to look for new investment State Owned Enterprises (SOEs) with cently by Veeramalla Anjaiah of the Ja- and trading opportunities in partner- assets of $170.5 billions representing up karta Post (28.05.09) explained the bulk ship with Azerbaijan and the other Cen- to 40 percent of nominal GDP, backed of bilateral trade reflected Azerbaijan tral Asian Republics. by an annual state budget rapidly ap- exports of oil to Indonesia, which is now proaching $100 billions per year. This a net importer. is neither a classic capitalist globalized Indonesian exports to Azerbaijan are economy nor an old-fashioned state- based on crude palm oil (CPO) and alu- centralized economy, but a pragmatic minium fluorides, but there is good po- Terry Lacey compromise between the two. tential to expand CPO exports, possibly For Azerbaijan and all the new Central to sell lower cost garments and shoes

Pakistan, Iran Sign Gas Pipeline Agreement

akistan and Iran have signed an disputes on prices, transit fees and security issues. agreement to activate a bilat- The pipeline project would be completed by 2013, the sourc- Peral gas pipeline project, with- es maintained. "The gas pipeline would begin from Gawadar out India's participation, after 14 years near Iranian border having 800 kilometer length. The de- of negotiations over what was initially termination of gas price would be linked with oil prices in framed as the Iran-Pakistan-India (IPI) the international market but will be less than 25 percent as gas pipeline project. compared to crude oil prices," sources maintained. Officials Sources in the ministry of petroleum of the ministry of Petroleum and Natural Resources termed and natural resources told Daily Times the agreement as landmark achievement of the government that Pakistan Interstate Gas Company and expressed the hope the it would help Pakistan to meet Dr. Asim Hussain Dr. (PIGC) and the Iranian National Oil shortfall both for commercial and domestic purposes. Company (INOC) signed the agreement late Friday June 5, The country urgently needed gas and the agreement would 2009 in Turkey. greatly help the country to overcome the shortfall. Another The official said that the agreement would be governed official of the concerned ministry said that the new explora- through a third country law that was why it was signed in tion and production petroleum policy 2009 with alluring in- Turkey. centives would definitely accelerate the investment in the oil Under the gas sale purchase agreement, Iran would provide and gas sector. Pakistan was rich in oil and gas, particularly 750 million cubic feet of gas per day to Pakistan for the next Balochistan. If the government manages to enforce its writ by 25 years, which would generate 4000MW of electricity. Offi- giving the ownership feeling to the local people, then aggres- cials in Islamabad termed the deal a major breakthrough and sive oil and gas exploration could be carried out. This was the an achievement that would greatly help Pakistan meet its en- only way left for Pakistan to cater to the energy needs of the ergy needs. The project, when initially mooted in 1994, was country. intended to carry gas from Iran to Pakistan and on to India. New Delhi withdrew from the talks last year over repeated 46 OPINION

Uzbekistan Place of Religious Tolerance

zbekistan is forging ahead According to the law of the Republic of co-existing and cooperating Uzbekistan, "On freedom of conscience with nations having vari- Uous customs, religions and and religious organizations", freedom cultures for hundreds of years. As the country's President, Islam Karimov, of faith is the constitutional right of ev- stated: "Our nation's ethnical, cultural ery citizen having a belief in any reli- and religious tolerance is an unfinished base of spiritual renaissance. During gion or none of them. Exercising any thousands of years, Central Asia has been the center of various religions, kind of force against the citizens, what cultures, customs, and co-existing peacefully. Ethnical tolerance became he/she decides to believe, worship, at- the general norm of living and develop- tend religious ceremonies or take reli- ing in this hazardous world". While human race is approaching a new gious education, or not, is prohibited. era of cooperation, tolerance, which is the main source of growth between na- OTHER VOICES 47

religions live together peacefully. Each there are representatives of 136 nations one has his own right to choose religion and ethnic groups in the country. Each and he has to accept all rights of oth- of them has their own national, cultural ers. customs, traditions, language and con- Truly, Uzbeks have always proven their stitutional equal rights. respect for other nationals and religions In Uzbekistan, there are more than throughout history. Religious tolerance hundred national cultural centers as a is one of the best ownership of the Uz- result of democratic development and bek nation. It is also supported by Is- state attitude towards multinational lam, which they have been worshipping citizens of the country. During the for ages. According to Islam, all human years of independence, all opportuni- beings are brothers, and there is no ties have been created for religious or- preference among them. There is no ganizations. For example, in the period obligation to have religion, all religious of the Soviet Union, non-Islamic reli- customs have to be kept secured and gious organizations were 62, now there there must be friendship among reli- are 179. gions – not envy or evil mind-set. Muslims of Uzbekistan are of peaceful It is important to note that only Islam nature and are very deeply and morally announces open freedom of choosing rooted in their faith. For ages, Islam a religion. In the 256th verse of Surah had been considered by peoples of the Baqarah in the Holy Qur'an, in part region as a faith, as a moral, as a con- it says: "La ikraha fid-din", meaning science and as an enlightenment and "There is no obligation for religion". plays a gigantic role in the education of The government of the Republic of Uz- the people, in the spirit of humanism bekistan has always supported toler- and fairness. An immense job is con- ance in its laws. For instance, Article tinuing in the country to use effectively 31 of the Constitution states that every the religion of Islam and its great po- citizen of the Republic of Uzbekistan tentials as a rich spiritual and cultural can choose one of the religions or none heritage. of them. Religious ideas cannot be propagandized. This is the "o'zbekiston" Magazine, No. 3-4/2008 bright sign of religious toler- ance. Freedom of choice is not only guaranteed by laws but also the choice of every citizen is secured by the state. According to the law of the Republic of Uzbekistan, "On freedom of conscience and religious organizations", Russian Orthodox Church ,Tashkent freedom of faith is the constitutional right of the tions, is becoming more and more im- citizens believing in any portant. Therefore, on November 16, religion or none of them. 1995 at the twenty-eighth session of Exercising any kind of United Nations Educational, Scientific force against the citizens, and Cultural Organization, the Declara- what he/she decides to tions of Tolerance was accepted by the believe, worship, at- member states. tend religious ceremo- First of all, we have to explain the word nies or taking religious "tolerance" itself and clarify what we education or not, is mean by tolerance. "Tolerance" is used prohibited. They may in various spheres of life as politics, be prohibited only in psychology, philosophy, social matters, cases when they be- and comparative religions. Latin word come dangerous for "tolerare" means "to bear" as one can citizens' life, health, stand for others' outlook. rights and freedom In Uzbek "Diniy bag'rikenglik" is the or are against na- synonym for this word. Religious toler- tional security. ance is when the members of various According to the statistical data, 48 ENVIRONMENT

ECO Region's Pink Flamingo

Miracle of Meeting with Dazzling, Dancing Colors

One of the natural world's most breathtaking sights is watching the pink and crimson clouds of flamingos that flock over the sky. Flamingos are one of the most ancient birds still living in our world today. They are found in both the Western Hemisphere and in the Eastern Hemi- sphere, but are more numerous in the latter. Al- most all ECO Member States are located in the range of Central Asian Flyway (CAF). The flyway comprises several important migration routes of water-birds, most of which extend from the northernmost breeding grounds in Siberia to the southernmost non-breeding wintering grounds in West Asia, South Asia, the Maldives and the British Indian Ocean Territory. The countries on the way include: Afghanistan, Ar- menia, Azerbaijan, Bahrain, China, Georgia, Iran, Kazakhstan, Mongolia, Pakistan, Russian Federa- tion, Saudi Arabia, Sri Lanka, Tajikistan, Turk- menistan, United Arab Emirates, United Kingdom, Chagos Islands, Uzbekistan, Bangladesh, Bhutan, India, Iraq, Kuwait, Kyrgyzstan, Maldives, Myan- mar, Nepal, Oman, Qatar and Yemen. ENVIRONMENT 49

General Information Breeding They breed in colonies of hun- Color dreds to thousands of individu- Pink Flamingos are gregarious als. Pairs are not faithful from wading birds known for their dis- one year to the next, yet indi- tinct pink and crimson plumage, viduals of the same age tend to pink legs, and stout, down-turned pair together (Cezilly & Johnson beak. Contrasting combination of 1995). Nuptial parades start at white and red color of feathers cre- the end of the autumn and pairs ate a surprisingly fantastic picture are formed the following sum- of triumph and rejoicing of the na- mer. Flamingoes breed and nest ture's perfect creatures. An adult's on islets surrounded by water, plumage can vary from pale pink for protection from predators to a bright red called crimson de- such as boars and foxes. Their pending on the species. hummock-shaped nests are made The bird's pink color is caused by of mud, measuring 10 to 20 cm the Beta carotene in its diet. The high. The clutch is incubated by source of this varies by species, both partners (for 1-4 days each) but shrimp and blue-green algae over 28-30 days. are common sources. The feathers contain special pigments that be- Chicks come pink with enough carotenid Chicks, with short thick legs and consumption and if flamingos are short necks, do not resemble their deprived of a carotenid diet, their parents at all. They are not born feathers will lose their color and be- with coloration. Instead they pos- come a dull grayish white. Though sess a grey feathering and gradu- predominantly pink and crimson, ally obtain their true pink within pink flamingos also have black on their first three years of life. their flight feathers and on the tip They wander outside the nest once of their beak. they are a week old. After approxi- There is no difference in coloration mately 12 days, they gather in a between male and female flamin- crèche as they are abandoned by gos. Males tend to be larger in size the parents during the day. Each and possess a greater wingspan, parent finds its chick among hun- but sex determination by visual dreds thanks to its unique cry. Par- distinction is unreliable. ents feed their chicks by producing a liquid from their crop, which is Feeding high in protein. Feeding lasts from The beak of the greater flamingo 15 to 30 minutes, chicks will not is a distinguishing characteristic forage for themselves until they of the Phoenicopteridae family to fledge at 75 to 80 days. which all flamingo species belongs. When they are two weeks old, The beak of a flamingo is thick and their beak starts to bend and the down-turned midway along its young bird begins to look for length. The lower beak is thicker food independently. Left without than the upper beak. In contrast to parents and leaving their nests, the majority of other birds, the up- the baby birds bunch up in large per part of the beak is movable not groups, romp and swim in shallow the lower. It is an excellent mecha- water under the supervision of nism, a real "scoop" to catch the grown up "nannies ". After getting tiniest seed shrimps – flamingoes' stronger and being able to fly, the main food. When the bird dips the young flamingoes join the flock. head under water, the "scoop" turns However, they will differ from the upside down. Quickly moving with older ones by their size and color the tongue, the bird strains the wa- for a long time. Only on the third ter out through the lamellae leav- year of life, the former baby bird ing behind the small invertebrates acquires the outlines of a true fla- and the vegetable matter upon mingo with the peculiar coloring which the bird feeds. of feathers. 50 ENVIRONMENT

Distribution of Flamingos in 18. Gorgan Bay, Mazandaran Province 19. Shadegan Marshes, Khuzestan Province ECO Region 20. Tidal mudflats of Khor-al Amaya and Khor Musa, Khuz- estan Province 21. Gomishan Marshes, Golestan Province Afghanistan 22. Turkoman Steppes , Golestan Province 1. Ab-i-Estada Lake, Ghazni 23. Hamun Lakes, Sistan & Baluchistan 2. Dasht-i-Nawar Lake, Ghazni 24. Chabahar Bay, Sistan & Baluchistan 25. Gagin and Gabrik, Sistan & Baluchistan Azerbaijan 26. Hara, Qeshm Island 27. Kavir National Park, Qom Province 3. Gizilaghaj State Reserve, Lankaran 28. Gav Khoni Lagoon, Esfahan Province 4. Hajigabul Lake, Ali-Bayramli 29. Helleh Wetland, Bushehr Province 5. Ganli Lake, Baku 30. Sefid Rud Delta 6. Aghgol State Reserve, Mil Steppe, Kura-Araz Lowland 7. Garayazy State Reserve, West Azerbaijan Pakistan 8. Kur River Delta 31. Mai-Kolachi by-pass, Karachi Iran 32. Lake Hadeiro, Karachi 33. Rann of Kutch Wildlife Sanctuary, Sindh 9. Dasht-e Arjan, Fars Province 34. Ucchali, Khabbaki and Jalar lakes, Punjab 10. Lake Parishan, Fars Province 35. Indus River Delta 11. Kaftar Lake, Fars Province 12. Tashk Lake, Fars Province Kazakhstan 13. Bakhtegan Lake, Fars Province 14. Kamjan marshes, Fars Province 36. Kurgaldzhin Nature Reserve at Lake Tengiz, Akmola 15. Lake Kobi, West Azarbaijan 37. Lower reaches of the Torgai River in Central Kazakhstan 16. Lake Uromiyeh, West Azarbaijan 38. Northeastern coast of the Caspian Sea 17. Miankaleh Peninsula, Mazandaran Province

Almost all ECO Member States are locat- ed in the range of Central Asian Flyway (CAF). The flyway comprises several im- portant migration routes of water-birds. ENVIRONMENT 51

Turkey 39. Tuz Lake, Aksaray, Ankara 40. Gediz Delta, Izmir 41. Acigöl lake, Afyon, Denizli 42. Ayvalik, Balikesir 43. Burdur lake, Burdur, Isparta 44. Seyfe Lake, Kirsehir 45. Sultansazligi, Kayseri 46. Tersakan Lake, Konya

Turkmenistan 1. Ekerem – Esenguly, Balkan 2. Turkmenbashy Bay, Balkan

Flamingos in general have a very long life span, living a mean age of 25 years but up to 50 years is not an unusual occur- rence. Watching them flying over the shores leaves deep in the heart a feeling like living through the miracle of meeting with dazzling, dancing colors.

Parisa Firouzkouhi ECO Times Editorial Board

Flamingo's Habitat 52 HEALTH

Research has shown that this herb not only protects the vision cells from dam- age, it could also slow and even possibly reverse the course of blinding diseases like age-related macular degen- eration

Can Saffron Help Fight Blindness?

affron may help prevent loss of difficult to recognize faces, read, drive Bisti said a third line of research has sight in old age and even improve and perform other everyday activities. found that saffron is active in af- vision in people suffering from A clinical trial with patients suffer- fecting genetic diseases of the eye, Scertain blinding eye diseases. ing AMD in Rome has found early such as retinitis pimentos', which Research by Silvia Bisti, professor at indications that treatment with a can cause life-long blindness in the ARC Center of Excellence in Vision dietary supplement of saffron may young people. Animal research here Science (The Vision Center), Univer- cause damaged eye cells to recover. too offers the prospect of slowing sity of L'Aquila, Italy, has established down the progression of sight loss. that saffron has remarkable effects Protective to Vision And fourthly, saffron given to human on the genes regulating the perfor- "Saffron is not simply an antioxi- patients suffering from age-related mac- mance of the eye's key vision cells, dant, it seems to possess a num- ular degeneration, which causes partial Times of india.indiatimes reported. ber of other properties which are or total loss of sight to many people in Her research has shown that the protective to vision," Bisti said. old age, has shown signs of cell recov- high-priced golden culinary herb "For example, it appears to affect genes ery, said a release of The Vision Center. made from crocus flowers not only which regulate the fatty acid content of "We are excited by these early find- protects the vision cells (photorecep- the cell membrane, and this makes the ings. We will know more when all the tors) from damage, it may also act to vision cells tougher and more resilient. results are in later this year," Bisti said. slow and possibly even reverse the "Secondly, we have shown in animal The saffron diet treatment may also course of blinding diseases like age- models that a saffron diet will protect be tried as part of a wider experiment related macular degeneration (AMD). the eye from the damaging effects of involving ways to prevent vision loss AMD is a disease of the retina that can bright light--something we all suffer in humans in Sydney and Rome later cause loss of central vision and make it whenever we go out in the sun," she said. this year. ARTS & CULTURE Visual Arts 53

Italy West Meets East 53rd International Venice Biennale

He who knows himself and others here will also see, that the East and West, like brothers, Parted ne'er(never) shall be. Thoughtfully to float for ever 'Tween (between) two worlds, be man's endeavor! So between the East and West to revolve, be my behest! Johann Wolfgang von Goethe, West-Östlicher Divan

he 53rd Venice Biennale is on its full swing. This highlight of the art world calendar is a celebration every other year the many threads of the world of art past years' biennales where installa- T into one whole. tions and video art prevailed. of contemporary art. Art fans and lov- ers head to the continent for Venice to National pavilions have been set up to One of the most touching shows this witness the most prominent interna- house exhibitions from each participat- year is held in East-West Divan pavil- tional artistic event in the world. Over ing country's chosen artists. The Olym- ion. This show is particularly interesting the weekend artists, curators, dealers, pic games of the art world showcases since it represents the connections and journalists and collectors descend the the work of leading artists from 77 coun- contrasts between Islamic and Western event en masse even before the event tries from across the world. Apart from aesthetics. "It will display giant Iranian begins. pure artistic creations Venice Biennale pop-art portraits in the neoclassical This is the oldest and most high pro- has always been a scene for expressing arches of a 16th-century scuola. "They file contemporary art exhibition which political views and you will find there will be like everyday saints, as opposed displays a wide range of the most cut- some maverick arts as well. to those by Titian and Tintoretto else- ting-edge art from all over the world, Different countries play host to vari- where in the city," The curator of the presented in grandly titled and grand- ous spots around the city, which still to show, Jemina Montague says. looking pavilions in the Giardini, acres this day reflect the status of the country East-West Divan, represents 10 artists of gardens a short ride from St Mark's during the Biennale's Victorian debut. from Iran, Afghanistan and Pakistan, Square. The 53rd edition of Venice bi- This year's biennale has surely a domi- and highlights the cross-fertilization ennale, entitled Making Worlds, weaves nant painterly theme in comparison to between Islamic and Western aesthetics 54 EVisualNVIR OArtsNMENT The show also implies an ongoing effort to build bridges between two cultures to correct the misinterpretations and mis- understandings and to open up an active constructive way of communication between East and West.

who was awarded a Golden Lion for her highly distinctive hand- that you can drawn animations. Mandana Moqaddam and Bita Fayyazi see all around Venice, participated in the 51st biennial, but Iran did not participate thanks to its past pre-eminence as a port. in the 52nd biennial in 2007. Keeping with the ever-political edge of the event, their show Monir Farmanfarmaian, the veteran Iranian artist is among is designed to challenge Western perceptions of their coun- the Iranian pioneers in modern art. Her works display a sort tries as being linked to terrorism. of freshness (with mirrors mosaics reflect many fragments "East-West Divan meditates upon links between the artistic of the world around them, assembling a constructed iden- traditions in Venice and the Persian artistic heritage shared tity, a life composed of memories, individually disjointed, but by these countries, revealing the tightly knotted relationship beautiful in their overall effect, held in balance by the act of between East and West - both in life and the imagination". composition. Montague says. Disappointingly it was hard to fund the exhi- Monir's compositions, while externally bound and limited, bition (Turquoise Mountain and Bita Daryabari, a US-based open inwardly to the infinite, underlining the timeless and Iranian philanthropist, stepped in). infinite quality of Islamic geometric concepts. At the age of "It seems such an obvious one to support because it has a 84, Monir Shahroudy Farmanfarmaian is witnessing a glit- humanitarian angle – these are artists coming from develop- tering revival as one of Iran's most inspiring and innovative ing countries" she says. She'd had no problem funding shows living artists. in Afghanistan and Pakistan. "But it was much harder here. The Afghan artist, Khadim Ali has its own striking way of ex- It is so sad confronting the horrible old (Western) art world pression. He has done a series of sinister pictures of Rustam, again. People are so wary of your being cool enough." the mythical Persian hero whose image for Ali was tarnished Some of the works presented here has come from Kabul by when he heard Taliban fighters, whom he loathes, praising way of Islamabad. East West Divan in an upstairs chamber him. One can assume that the deformation of a mythological at the "Scuola Grande della Miseracordia" brings together personage who is usually considered as the symbol of good- artists from Afghanistan, Pakistan and Iran to demonstrate ness, nobility and bravery is artist's massage regarding the the variety and richness of artistic practice still taking place misinterpretation of such universal values by blind prejudice in countries that according to some critics "we in the West and extremism resulted in a shattered image of Islam. imagine are still stuck in the middle ages". Shehzad Dawood is another Afghan artist who has partici- But Iranian Khosrow Hassanzadeh's giant silkscreen por- pated in Venice biennale. His large Neon Chandeliers with traits of harmless old women labeled "Terrorist" amount to three negations (there is no god but allah) is artist's effort indignant political statements, his work features giant do- to demonstrate the dialogue between east and west. Dawood mestic portraits of his mother and sister. Hassanzadeh is one has said that "[the] perverse desire for authenticity, yet al- of Iranian leading contemporary artists whose works show ways in translation, is at the core of my work. Ideologies, his tendency towards self exploration on one hand and self cultures - I tend to see the artifice in all of it; they're all con- expression through this inner journey. structs in a way." During his artistic career his work became increasingly con- Another Afghan artist Sherzd Khalili's work is a "Burqa" (a cerned with Islam as a factor in the interplay between East typical Afghan veil worn by women especially under Taliban and West. His recent series of works titled as "Terrorist" is rule) in Sherzad's work the veil has been lifted a sharp yet artist's manifesto that simultaneously criticizes the accusing beautiful implication which is in harmony with the title of gaze of the West and reclaims the right of self-representa- hey work "Espace libre" (Hawaye Azad). There are calligra- tion. Painter Iraj Eskandari, calligrapher Sedaqat Jabbar, phy inscriptions written all over the "Burqa" in gold ink. and sculptor Hamidreza Avishi are the Iranian artists who Pakistani artists has also participated in this edition of Venice will display their works at the biennial, (they are representa- biennale with a vibrant variety of works comprising installa- tives of Islamic Republic of Iran) this year. Iran took part in tions like the work by Aisha Khalid or miniature paintings by the 50th biennale in 2003 with masters Hossein Khosrojerdi, Imran Qureshi and collection of Nusra Latif Qureshi. Imran Behruz Darash, Ahmad Nadalian and Avish Khebrehzadeh, Qureshi's works are miniature paintings depicting contem- EVisualNVIR OArtsNMENT 55 The show also implies an ongoing effort to build bridges between two cultures to correct the misinterpretations and mis- understandings and to open up an active constructive way of communication between East and West.

porary figures. The contrast between the finely illuminated der Rodchenko perhaps, as a way of making a world. I men- margins of the paintings and the contemporary figures de- tioned that we will build some installations on-site, and some picted are subtle yet quite defining and sometimes shocking. of them will be collectively produced." However, another Pakistani artist Nusra Latif Qureshi has Venice biennale is a major venue for international art. Its presented her works in a more elaborative way. Her col- grand scale allows artists with different cultural backgrounds lection of works represents distorted images of a Pakistani from across the world to present their latest creations; it is woman layered with different images of renaissance figures also an international stage for expressing different thoughts and miniature paintings creating a rich mosaic of historical and ideas. figures both in east and west. The participation of artists from Iran, Pakistan and Afghani- Curating a grand show such as Venice biennale is no easy stan in this year's biennale (whether artists who live abroad task especially with global financial crisis which creates many or artists living inside their own countries) sends a clear mas- hardships and obstacles for the organizers of the biennale. sage to international community, the unanimity of this mas- The director of 53rd Venice biennale, Daniel Bienbaum com- sage is in its simplicity, may it be complex in its form, the ments on various problems involving running the show with dialogue between East and West still continues and there is its own standards and grand scales as well as the concept an ongoing effort to build bridges between two cultures to behind its denomination: "Our starting-point was a book by correct the misinterpretations and misunderstandings and Nelson Goodman, "Ways of World making" (1978). The idea to open up an active constructive way of communication be- is that every work of art contains a world of its own. tween East and West and what medium would be better than We couldn't translate the title literally, so we're calling the the universal language of art to make worlds come closer to- show "Fare Mondi: Making Worlds". If, say, a language- gether? based work by Chinese conceptual artist Xu Tan can be a way of making a world then so can a huge installation by a vision- Mitra Lotfi Shemirani - ECO Times, Arts & Culture Desk ary architect like Yona Friedman. We're go- ing to create a show that is closer to the site of production and creation – the studio. While it won't be some big relational aesthet- ics thing – that is, not just an art school or a studio – there may be some works that will be displayed still in pro- duction. There will also be a painterly theme through the exhibition. I'm thinking about the Russian avant-garde in which there were visions of how society is constructed along- side art: for example little Kazimir Malevich paintings or an Alexan- 56 Visual Arts

Turkmenistan Colors That Never Fade Creative Life of Yevgenia Adamova

he name of Yevgeniya Adamova, the People's By this time, her interest in drawing had turned into a Artist of Turkmenistan, is forever included in real passion, and determined the girl's future fate. She the list of first painters who laid the founda- entered the Turkmen State Art School named after Shota Ttions of the modern Turkmen fine arts. Rustameli. Such tutors as Byashim Nurali, Sergey Niki- Yevgeniya Adamova was born in 1913 in Livny town of tovich Begliarov, Maxim Mikhailovich Daneshvar, Yulia Orlov region. She spent her childhood in Ukraine. In Prokofievna Daneshvar greatly influenced the formation 1932, Adamova moved to Ashgabat with her family. Her of ideals and mastery of the painter. parents insisted that she enter the Turkmen State Medi- At the same time, the creative work by Ivan Ivanovich cal Institute. Having realized that the profession of be- Cherinko, her teacher and friend, who later became her ing a physician was not her calling, she, a third year husband, played a key role in her professional growth. student, dropped out from the Institute. While a student, trips to Moscow, where young artists Visual Arts 57 were introduced to the best works of the Russian and Western European Art, became unforgettable for her. They played a great role in the development of her pro- fessionalism and growth. In 1940, as a member of the small ethnographic expedition, during a month and a half Yevgeniya Adamova traveled to the northern and western regions of the country on the bullock-cart. She made sketches, drew genre scenes and landscapes. Here is how the painter described her impressions: "The Turkmen girls and women surprised me. And the old men in white telpek (fur hats), and red gowns stroke me. Something new, bright, and even theatrical was in those people. I saw bright costumes, surprisingly beau- tiful people and their composed and proud bearing … And then there came a close acquaintance with the peo- ple, and with the women. I learned that their life was not so easy. I was struck by their firmness in accomplishing the purpose". The painter remained dedicated to the theme of Turk- men women's fate during all her creative life. Already her first paintings depicted the image of a Turkmen High working capacity allowed Yevgeniya Adamova to woman. However, the large-scale program works devot- remain in continuous creative search until her old age, ed to the topic were created much later, in 1950s-1960s, preserve the dynamism and vigilance of life perception when she had already accumulated rich life and creative in her works. experience. Many years have passed since the time when Yevgeniya The country that turned into the second homeland for Adamova created her outstanding canvasses. The great- Yvgeniya Adamova, simple and sincere people became ness of her talent keeps having a strong impact on the the main objects described in her canvasses. The paint- spectator even today. And every time, walking in the er's artistic method was continued by the young genera- halls of the museum, a visitor can not help stoping in tion of talented Turkmen artists who perceived the mys- front of Adamova's canvasses admiring the perfection of teries of the fine arts from the master's bright works. painting and brightness of colors that never fade. ARTS & CULTURE 58 Archeology

Pakistan Thatta Legendary Place of Fabulous Culture

ocated about 98 km east of Karachi, on the National turned to be the capital of Lower Sindh from the 14th cen- Highway, just west of the Indus River and the Ara- tury. Thatta was the capital of Sindh for 95 years during the bian Sea coast and near the largest freshwater lake in ruling era of Soomro Tribe. The capital of three successive Lthe country, Lake Keenjhar, rests Thatta, a historic dynasties and later ruled by the Mughal emperors of Delhi, settlement in the Sindh province of Pakistan. Thatta was constantly embellished from 14th to 18th century. Once called the El Dorado of the East, Thatta is historically an However, following the Battle of Karnal in 1739, the province important region which has served as a center of literature, was handed over to Nader Shah of Persia. religious ideologies and socio-political clashes. The amalgam- The remains of the city, its historical monuments and ne- ated past of this area made its geographic locations into an cropolis provide a unique view of civilization in Sindh reflect- unforgettable scenery. ing the city's importance as Sindh's capital and as a center for It is difficult to discern the exact location of ancient Thatta, Islamic arts. Thatta's major monuments are listed among the but the name indicates its strong relation to the Indus. Thatta, World Heritage Sites. derived from Thatti, Thatt or Thatto, a Sindhi word for a small settlement on riverbanks, was an important medieval city Shah Jahan Mosque locally known as Nagar-Thato. All historic accounts portray This mosque was built in 1647 during the reign of Mughal King, Thatta as a populous and flourishing trading post and a refuge Shah Jahan, also known as the "builder King". The mosque is of saints and scholars. built with red bricks with blue colored glazed tiles probably The city used to command the delta of the Indus and then imported from Sindh's another town of Hala. The mosque has Archeology 59

33 arches 93 domes of different sizes which make it the world's cal octagonal brick structure whose dome is covered in blue largest mosque with such number of domes. It has been built and turquoise glazed tiles. keeping acoustics in mind. A person speaking inside one end Apart from these, Makli has kept within the bodies of a lot of of the dome can be heard at the other end. poets, warriors, Sufis and intellectuals. The arched domes give the structure superb acoustics and The artistic monuments at Makli show proof of Islamic ideolo- the tile work, a whole range of shades of blue, is equally fine. gies and the Hindu mythology as well, which in itself is a great This edifice has 101 domes and is designed in such a way that documentation of the socio-cultural past of Sindh. Today, imam's voice can reach every corner of this building without Makli is a UNESCO World Heritage Site that is visited by both the help of any loudspeaker or other device. The unique char- pilgrims and tourists. acteristic about this mosque is that it has no minarets and but Makli is a silent place, so silent that one can even listen to the only one dome which lies in the central prayer hall. unspoken voices and whispers of the sand particles which, fly around and make eyes watery; a tearful homage to the souls Makli Necropolis who once were not so silent! Located a few kilometers away from Thatta, Makli is truly the place where history starts to reveal its glorious past it wit- Parisa Firouzkouhi nessed, and talk about the legends and myths it has under- ECO Times Editorial Board taken. The site is considered as one of the largest necropolises in the world. Here in eternal sleep lie kings, queens, scholars, philosophers and soldiers of a by-gone era,an era renowned for its culture and learning. Covering about 15 square kilometers, Makli provides an unfor- gettable visual experience with the most vibrant archeological sites in Pakistan. Legends abound about its inception, but it is generally believed that the cemetery grew around the shrine of the fourteenth-century Sufi, Hamad Jamali. Some of the greatest ruins of Sindh are the mausoleums and tombs in Makli which also say a lot about Sindh's commu- nal structure from 14th to 18th century. Though many of the mausoleums and graves are dilapidated, we can still see the masterpieces of stone carvings over the gravestones and mau- soleums. These stones represent different eras and dynasties. There are monuments of Summa period (14th to 16th centu- ries), the Tarkhan & Arghun period (16th century), and the Moghul period (16th to 18th centuries). You can examine the minute and delicate workmanship on the tombs of famous Mughal governor's. The main stone used in the construction of these monuments are; marble and granites which have a tendency to last for generation's. You could eas- ily see a rhythmic construction in these monuments. Among necropolis' significant sights are Isa Khan Tarkhan and Jam Nizam al-Din mausoleums. The largest and the most impressive tomb is that of Isa Khan Tarkhan who died in 1644. It is a two-story stone building with majestic cupolas and balconies. Isa khan had this tomb constructed in his lifetime. It is said that after a partial com- pletion of the construction, Isa khan ordered to cut off the hand's of most talented craftsmen, so that no other emperor could engage them to copy the same monument again! Be- sides the most preserved monuments are, the tombs of Mirza jani Beg, Mirza Tughral beg and Diwan Shurfa Khan. The tomb of the Samma king, Jam Nizam al-Din (reigned 1461–1509), is an impressive square structure built of sand- stone and decorated with floral and geometric medallions. Jam Nizam al-Din ruled during Sindh's golden age as the leader of Summa Dynasty. The rise of Thatta as an important commer- cial and cultural center was directly related to his patronage and policies. The Summa civilization contributed significantly to the evolution of the prevailing architectural style that can be classified as "Sindhi-Islamic architecture". In contrast to the architecture of these two monuments, which integrate Hindu and Islamic motifs, are mausoleums that clearly show the Central Asian roots of the later dynasty. An example is the tomb of Jan Beg Tarkhan (d. 1600), a typi- SOCIETY 60 Sports

Pakistan "Pakistan Is Committed to Promote Peace and Stability through Sports"

Exclusive Interview with Pir Aftab Hussain Shah Jilani, Pakistan's Federal Minister for Sports

Elected as a member of National As- sembly of Pakistan from 1990 to 2008, Pir Aftab Hussain Shah Jilani was appointed as Pakistan's Federal Minis- ter for Sports since 2008. He has a MS degree in Agriculture from University of Tando Jam in Sindh Province. For more than a decade, he was a member of Pakistan's National Cricket Team.

What was the purpose of your trip to Iran? maintain "competition programs" among Asian countries. I came here to attend the 2nd Asian Sports Ministers' (ASM) It was also decided that the venue for the 3rd Asian Sports Min- meeting, hosted by the Government of Iran. A number of sport isters' meeting will be in China. delegations from 28 Asian countries, including; Japan, Syria, China, Bangladesh, United Arab Emirates, Kuwait, Cambo- How would the government of Pakistan contribute in dia, Mongolia, Myanmar, Saudi Arabia, Vietnam, Hong Kong, the overall development of this initiative? Qatar, South Korea, China Taipei, India, Brunei, Lebanon, Upon establishment of a permanent secretariat of Asian Sports Tajikistan, The Philippines, Singapore, Nepal, Jordan, Oman, Ministers, the Government of Pakistan would fully support the Cyprus, Maldives, Pakistan and Sri Lanka also took part in the proposal for establishing a permanent secretariat of Asian Sports three-day event. The 1st ASM meeting was held in Osaka, Ja- Ministers to coordinate various steps for promotion of sports pan, on August 27, 2007. and strengthening existing friendly ties among the Asian coun- tries. "Also, we will offer our assistance as a human resource for What were the main topics discussed? operation and management of the secretariat including techni- The main topics were expanding sports ties across the Asian cal assistance in preparation of its rules and regulations." continent and eradication of doping in sports. The meeting also took measures to ensure better results in international sports What is the principle objective which your Govern- competitions. Moreover the meeting discussed sports coop- ment wishes to achieve in this organization? eration between the Asian countries as well as sharing of each Addressing the Meeting, I on behalf of Pakistan, said that, we other's experiences in the field. at this point of time are looking for genuine efforts, assistance The Asian sports ministers discussed on exploring ways to and enhanced cooperation from Asian countries to allow this counter doping and improve sporting facilities in local areas. concept of peace through sports to work more effectively Altogether, six important issues were brought up as the agenda in country like Pakistan. We believe that extended cooperation of the meeting and fortunately all were covered and decisions and increased focus will surely bring more people together, were reached. help rebuilding confidence and greatly facilitate our national Among the decisions made was the establishment of a tempo- efforts to arrest forces of extremism and terrorism in Pakistan. rary secretariat in Tehran. This result was taken on the basis of Referring to the recent research and development of sports consensus. A committee has been set up wherein deliberation science, the Government of Pakistan is conscious of the vital would be taken for a permanent location of a secretariat and importance of the research and scientific know-how for the for the final drafting of the constitution. It was also decided to promotion of sports and taking steps for setting up of the 1st Sports 61

National Sports Training Institute in the country. tions of these cities. Sheikh Sa'adi, Hafiz and Omar Khayyam The Government of Pakistan is a WADA (the World Anti-Dop- are not only well-known elites in Iran but they are also very ing Agency) compliant country and is taking all the necessary much popular with the people of Pakistan. This also shows the measures to curb the tendency of doping in sports. We have closeness of the two nations of Pakistan and Iran. already ratified the Instrument of Ratification of the Interna- tional Convention Against Doping in Sports in 2007 and Paki- Is this your first trip to Iran? stan is strictly implementing the WADA regulations. Yes it is.

Did you discuss bilateral issues with your counterpart From your name it looks like you have ancestral ties from other countries? with Iran. Is this the case? Yes, on the sidelines of the conference, I had meetings with my Yes, I myself belong to Gilani family which is very big and wide- counterparts from Iran, Malaysia, Japan and Sri Lanka and spread in Pakistan, which has links to Gilan Province in Iran. discussed various issues of mutual interests and planned for And that is why I am eager to visit the Gilan Province in north- future cooperation in the field of sports. ern Iran. I have also heard a lot about its natural beauties.

How is the sports organization set up in Pakistan? It Would be almost impossible to talk about Pakistan Pakistan Sports Board was established under the Ministry of and not mention Iqbal's name. What are your thoughts Education through the Sports Development and Control Ordi- on Iqbal? nance in 1962. It was structured for the purpose of promoting It is nice to see that Iran is also holding Pakistan's famous poet and developing uniform standards of competition in sports in «Allama Muhammad Iqbal» so great. In Pakistan, Allama Mu- Pakistan, comparable to the standards prevailing internation- hammad Iqbal is known as Sha'er-e- Mashriq (the Poet of the ally. In July 1977, with the creation of the Ministry of Culture, East), whose writings were mostly devoted to the revival of Islam. Sports and Tourism, the administrative control of the Pakistan He was a philosopher and a statesman, born in Sialkot and his Sports Board was transferred to it. poetry in Urdu, Arabic and Persian is considered to be among The Board has a general body, with its headquarters at Islam- the greatest of the modern era. His vision of an independent abad. The general body consists of 76 members. It lays down state for the Muslims of British India inspired the creation the policy and 22 members Executive Committee are assigned of Pakistan. It is so refreshing to know that Iqbal is popular to implement this policy. Pakistan Sports Board being the among every stratum of Iranians. I even have heard that the supreme body of sports, monitors the activities/affairs of Na- Supreme Leader of Iran, His Eminence Ayatollah Seyyed Ali tional Sports Federations affiliated to it and ensures proper Khamenei, spoke about three hours on the personality of Al- utilization of annual and special grants given by the Board. The lama Muhammad Iqbal in a seminar. One thing so amazing annual grants are released to the National Federations to meet about Iqbal is that although he was not a Persian speaking poet, their day-to-day expenses whereas special grants are meant for he had written so many remarkable poems in Persian that have participation and holding of international sports events. These captured the minds and thoughts of so many Iranians. grants are approved by the Executive Committee of Pakistan's Sports Board keeping in view the popularity of games, achieve- In addition to Allama Iqbal, there are many renowned ments at international level and activities of the Federations. mystics unknown to the world. Whom do you admire At present, 40 national sports federations are affiliated with the the most? Board. Each federation is responsible for promotion and devel- I should say Shah Abdul Latif Behittai, who is a famous poet opment of its respective game/sports. of the Sindh Province. He had delivered his messages to all peoples the world across. He is a Sufi and his poetry is based on Do you think sport activities among the ECO countries the Quran-e-Karim. In Pakistan there are many famous Sufis would enhance economic cooperation among them? which needs to be recognized. It is possible and it is a good idea, but it requires strong initiatives. ECO was established to strengthen economic activities among the Anything else you would like to add? Member States, but by enhancing sports activities, there would At the end, I would like to add this point that, coming to Iran re- be even more encouraging results among its members. ally impressed me. During my short stay here, I think so many Should the resources be available, sports certainly would have misunderstanding about Iran have been cleared up from my the global appeal and the potential to address multiple issues of mind. There are so much false fabrications and negative pro- developing countries. paganda against Iran in the international media which needs to be eradicated. I have to admit that before coming here, I had How could Pakistan help sport activities in the region? different ideas about Iranian people. Actually, I came to realize Pakistan has been playing an important role in sports like that Iran is a very progressive and an open society, based on cricket, hockey, squash, snooker and rowing for many years justice and equality. I could visibly see that in this society, men and is in a position to organize sports competitions among and women are bearing equal opportunities. Women, while ECO Member States in athletic fields such as kabaddi, hockey, practicing their moral duties, are heavily engaged in private cricket etc. Also, Pakistan being one of the leading nation in sector entrepreneurship as well as governmental activities. I cricket, can offer services of its coaches in the field of cricket as was especially impressed by the speech delivered by the Hon- well as squash and kabaddi. orable President of the Islamic Republic of Iran, Dr. Mahmoud Ahmadinejad on the subject of «sports». It was full of new Have you visited any other cities beside Tehran? ideas which we should follow. I have no doubt that he is a real No, but insha'Allah, in my next trip I am planning to visit Esfa- knowledgeable person. han, Shiraz and Mashhad. I have heard a lot about the attrac- LEISURE 62 Travel

İzmir Turkey's Cultural & Historical Tapestry 63

İzmir Turkey's Cultural & Historical Tapestry 64

he Aegean Region is a unique region Tin Turkey opening to the sea extensive- ly. It covers 11% of Turkey's lands with an approximate area of 79,000 km². The famous historian Herodotus of Bodrum had described the region as "Having the most beautiful skies and the best climate in the world". The region is rich by nature as well as historical assets. The an- tique theaters, temples, agoras and castles have turned the Aegean into a region where mythology comes to life.

İzmir Beautiful "İzmir", the birthplace of the noted epic bard Homer, is a mo- mentous tourism, arts, culture, trade and industrial center. The very first settlement in İzmir is Bayraklı (3,000 B.C.). The city came under the in- fluence of the Hittite state after 1,500 B.C.; and Alexander the Great con- structed a citadel which still exists in Kadifekale and rearranged the city on the slopes of Kadifekale in the 4th century B.C. The city gained prominence during Roman times and came under the Otto- man rule after Byzantine domination. İzmir, liberated from Greek occupa- tion on September 9, 1922 with the National War of Independence, shortly became the third largest city in Turkey. The Kültürpark (Culture Park) is in the central quarters of the city. The pop- ular International İzmir Fair is held in this area annually. The city is also known for the International İzmir Festival, one of the most praised festivals in Turkey. Çeşme is among İzmir's most beautiful and Turkey's most popular holiday resorts. The Urla quay and Çeşmealtı are known for their beauti- ful beaches and islands. Balıklıova is noted for its fresh fish; Mordoğan and Karaburun for their untouched shores and beaches as well as a nature where narcissus and hyacinth grow in the mountains in wintertime. The magnifi- cent Çeşme Citadel was constructed by the Ottomans in the 16th century. The Süleyman the Magnificent Caravanserai nearby the citadel is restored and converted into a hotel, and it also dates back to the 16th century. Çeşme shores are ideal for surfing, sailing and yachting and Altınyunus Marina offers excellent services to yachts. An International Song Contest is also held in Çeşme every year. Close by Çeşme is Ilıca, a developed thermal spring center. The hot springs in the sea are unmatched in the world, more than 250 of them in Ilıca Bay alone.Sığacık in the south of Çeşme Peninsula is an important yachting center. There are many beautiful bays around, each with distinct beauty. Close by Sığacık there are the ancient cities of Teos, the faith center of the wine god Dionysus, and Claros, where the Temple of Apollo is located. Gümüldür, known for its beaches to the southeast of Sığacık, is a prominent tour- ist resort. Foça (Phocaea), an important trading center in ancient times, is another favorite holi- day resort north of İzmir. 65

The Phocae- ans, who were also noted for their seamanship, are known for establishing trading colonies in various places around the Mediterranean. Bergama (Perga- mun) is a well-known town not only in Turkey, Bergama but also all over the world. In the west of the are located on town, a very important center of culture, arts the acropolis. The li- and medicine in ancient times, there is one of brary famed for its 200,000 the oldest and largest hospitals in history, the books, the Temples of Ath- Asclepion. At the entrance of the hospital con- ena and Trajan besides the structed in the name of Aesculapius, the god of steepest amphitheater in the health, there are snake reliefs, which symbol- world and the foundations ized the god and eventually became the of the Altar of Zeus, one of symbol of medical science. Galen of the artistic wonders of Pergamun, the noted medical the world, are located scientist, practiced in this here. (Today, the hospital.The most im- entire altar is in portant architec- the Pergamun tural monu- Museum in ments in Berlin.)

Turkey Ministry of Culture & Tourism LEISURE 66 Food Corner

Shurpa Common Cuisine of ECO Region

hearty spiced lamb soup, root vegetables, this rich soup is night before, so that you can refrig- Shurpa is a cuisine common uniquely delicious, with its even and erate overnight and easily remove A between inhabitants of ECO colorful dice, and superb as a winter every scrap of fat before adding the Region. Aromatic and energetic with meal. It's better to start cooking the vegetables the next day.

Serves 8 Garnish: 1/2 cup chopped fresh cilantro Ingredients: • 1/4 cup olive oil • 1½ pounds stewing lamb, cut into 1-inch chunks Cooking Directions: • 1 cup onions, chopped Fry the onion in vegetable oil in the pan until the onions • 10 cups beef stock are softened and turn yellow. Add meat and fry well, stir- • 2 large turnips, peeled and cut into a ½-inch dice ring occasionally. Let it reach the boiling point. • 2 carrots, cut into a ½-inch dice Then reduce the heat, cover, and simmer for about 1½ • 2 big green/red bell peppers, cored, seeded, and cut hours. Refrigerate the soup, preferably overnight, so you into strips can easily remove the fat. • 1/2 teaspoon hot pepper flakes About an hour before serving, bring the soup to boiling • 2-3 garlic cloves point over medium heat, then add the turnip, zucchini, • 1 teaspoon ground coriander carrots, peppers, tomatoes, cumin, hot pepper flakes, co- • 1 large zucchini, cut into a ½-inch dice riander, and chickpeas. • 1½ pounds tomatoes, peeled, seeded, and chopped Add pepper and spices along with the garlic squeezed • 1½ teaspoons cumin through a garlic press. Cover and cook, for 30 minutes. • 1 16-ounce can chickpeas, drained Ladle into bowls and garnish with lots of finely minced ci- • Greens to taste (fennel, parsley, etc.) lantro. • Salt, pepper and spices to taste