Turkmenistan intends to attract leasing companies and venture funds in construction industry

Business Materials 7 January 2011 11:22 (UTC +04:00)

Turkmenistan, Ashgabat, Jan.6 / Trend H. Hasanov /

The national program for the development of Turkmenistan's construction has shown intentions to create a developed system on providing investments to construction companies, with the system involving credit, leasing and other methods, the Turkmen Strategic Planning and Economical Development Institute said on Thursday.

The tasks include using all modern forms of attracting foreign investment, including international leasing companies and venture capital funds among others for the construction sphere, stimulating growth and activity of small and medium construction enterprises and purchasing construction materials and structures.

The main tasks of this program are aimed at strengthening the existing construction organizations and creating competitive enterprises to produce construction materials, based on private and other types of ownerships, as well as training staff for the construction industry and development of secondary production sphere.

"Huge investments are envisaged to carry out these activities," the statement said.

Development of these amounts of investments requires a corresponding development of the spheres of a construction complex. Therefore, in the total amount, the investment share of construction industry remains high with more than 9 percent in 2011 and about 15 percent in 2015.

In the first phase of the program, from 2011-2015, investments worth over 19 billion manat are planned to be given for the development of a construction complex.

At the expense of using local raw material base, the existing production of various types of construction materials, which include cement, tiles, asbestos pipes, ferroconcrete products, metalware, construction glass and window blocks from aluminum, dyes, sanitary ware, gypsum, woodwork, etc. will be renewed and a new one will be created.

Within the program, cement plants will be built in Akhal, Balkan and Lebap provinces, while a glass factory will be constructed in the Akhal province, a plant for the production of ceramic slabs and a production plant of waterproof dry mixes will be built in Ashgabat.

In short-term, there are plans to build small enterprises for the production of paints and varnish in the cities of Ashgabat, Balkanabat and Serdar, a plant on production of dry construction materials in the Magdanli town of the Lebap province, and a plant to produce tiles in the Bakharli etrap of the Akhal region among other projects.

As is known, presently, a very large amount of construction materials and structures are being imported. In this regard, there are plans to take appropriate measures in order to develop local production and substitute imported construction materials.

Small and medium-sized businesses in the sphere of construction materials and construction industry, as well as a system of constant training and retraining of modern managers for the construction complex will be developed more.

In accordance with the second phase of the national program from 2016-2020, more than 11 percent of the total volume of investment will be spent for the development of construction complex.

In the long-term perspective, after 2020, the country's construction complex will operate in accordance with the most advanced international parameters that will allow construction sector of Turkmenistan to actively develop national priorities and successfully compete with leading foreign companies in foreign markets.