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Viewing cable 06DUSHANBE802, NEW ENERGY MINISTER, SAME ENERGY POLICY

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Reference ID Created Released Classification Origin
06DUSHANBE802 2006-05-02 11:33 2011-08-24 01:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Dushanbe
VZCZCXRO0613
PP RUEHLN RUEHVK RUEHYG
DE RUEHDBU #0802/01 1221133
ZNR UUUUU ZZH
P R 021133Z MAY 06
FM AMEMBASSY DUSHANBE
TO RUEHC/SECSTATE WASHDC PRIORITY 7379
INFO RUEHDBU/AMEMBASSY DUSHANBE 8597
RUCNCIS/CIS COLLECTIVE
RUEAIIA/CIA WASHDC
RHEFDIA/DIA WASHINGTON DC
RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC
RUEHAK/AMEMBASSY ANKARA 1588
RUEHBJ/AMEMBASSY BEIJING 1598
RUEHRL/AMEMBASSY BERLIN 1570
RUEHIL/AMEMBASSY ISLAMABAD 1567
RUEHBUL/AMEMBASSY KABUL 1521
RUEHNE/AMEMBASSY NEW DELHI 1512
RUEHLO/AMEMBASSY LONDON 1525
RUEPGDA/USEUCOM JIC VAIHINGEN GE
RUMICEA/USCENTCOM INTEL CEN MACDILL AFB FL
RUEHBS/USEU BRUSSELS 0914
RUEHML/AMEMBASSY MANILA 0046
RUCNDT/USMISSION USUN NEW YORK 1127
UNCLAS SECTION 01 OF 02 DUSHANBE 000802 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL ENRG ECON EAID AF TI
SUBJECT: NEW ENERGY MINISTER, SAME ENERGY POLICY 
 
REF: A) DUSHANBE 0711 B) DUSHANBE 0326 C) DUSHANBE 0668 D) DUSHANBE 0748 
 
DUSHANBE 00000802  001.2 OF 002 
 
 
1.  (SBU) SUMMARY:  In his third day on the job, Energy Minister 
Yorov reported Tajikistan's energy policy would continue to 
focus on attracting foreign investment for key infrastructure 
projects.  He cited the reforms of the past five years, notably 
in improved fee collection, as evidence that Tajikistan is 
slowly, but solidly, getting its energy house in order.  He 
listened closely to recommendations on how Tajikistan and 
Afghanistan could generate real international interest in one of 
the most ambitious hydropower projects, Dasti Zhum.  Yorov is a 
technocrat, with many years in the government, but his 
experience and leadership may result in a more efficient, 
responsive Energy Ministry, ready to work with international 
financial institutions and Western investors to realize 
Tajikistan's hydropower potential.  END SUMMARY. 
 
2.  (SBU) In an hour-long meeting April 28 with PolOff, Yorov 
listed the upcoming hydropower projects-Sangtuda I and II, 
Rogun-that promised to make Tajikistan a regional electricity 
exporter by 2008.  He noted that RusAl had already committed 
invest around $50 million in roads and other infrastructure 
improvements in anticipation of construction of Rogun.  Yorov 
noted with satisfaction how the Ministry of Energy and State 
electricity utility Barqi Tojik had improved fee collection from 
40% in 1998 to almost 95%  (NOTE:  Per reftel C, other sources 
indicate that collection rates are less successful, and often 
state run enterprises fail to pay.  END NOTE.) 
 
3.  (SBU) Yorov, flanked by his new First Deputy Minister 
Mukhiddinov, seemed genuinely perplexed when asked what was 
preventing the MoE from signing a memorandum of understanding 
with American company AES.  The MOU would establish a joint 
venture to construct 220 kV lines from Geran substation in the 
south to the Afghan border, allowing Tajikistan to export its 
summer surplus electricity.  Existing high voltage lines do not 
allow Tajikistan to export electricity, due to Uzbekistan's 
unwillingness to allow transit to Russia and Kazakhstan.  Head 
of the Office of Energy Policy Abdurashid Gulov asserted that 
they had given AES feedback on the initial MOU and were waiting 
for AES; he then suggested that the anticipated April 19 signing 
in Washington (on the margins of the World Bank/IMF meetings) 
could not have taken place because the Tajik delegation, headed 
by the National Bank Chairman Alimardonov, was not authorized to 
sign such energy agreements. "You need to push AES," said Gulov. 
 Yorov suggested AES send him a cover letter and new MOU 
spelling out the terms. 
 
4.   (SBU) Yorov initially confused the AES joint venture MOU 
with AES participation in the upcoming May trilateral energy 
meeting in Islamabad.  He noted there were no anticipated 
deliverables for the May 8-9 between Afghanistan, Tajikistan and 
Pakistan, but the meeting would be an opportunity to discuss 
implementation of recently signed agreements between the three 
countries.  Other participants will include the World Bank, AES, 
and Russian energy company RAO UES, likely represented by its 
head Anatoly Chubais.  Yorov confirmed that in addition to a 
trilateral agreement on energy sales, the Tajiks and Afghans had 
signed a bilateral agreement in December 2005.  (NOTE: A 
"Cooperation Agreement" to implement the terms of the MOU was 
supposed to be signed in January but remains unsigned.  END 
NOTE.) 
 
5.  (SBU) The energy officials expressed great interest in 
PolOff's April 17 visit to the Dasti Zhum site (reftel D).  They 
nodded and took notes as she explained how experts from Embassy 
Kabul had found the site very promising, but the Tajik and 
Afghan governments would both need to demonstrate real 
cooperation, through effective bilateral working groups, before 
international investors and donors would even begin to look 
seriously at the proposed $3.5 billion project. 
 
6.  (SBU) COMMENT:  The introductory meeting indicated that 
Yorov's appointment does not signify any radical change in 
Tajikistan's energy policy.  In fact, it may indicate that 
President Rahmonov is trying to bring the Ministry more in line 
with national goals and under stricter guidance from the 
 
DUSHANBE 00000802  002.2 OF 002 
 
 
Presidency.  However, the transition may be bumpy.  Some sources 
note the outgoing team did very little to prepare the new 
administration and the few holdovers-notably Gulov-are notorious 
for sitting on information and decisions for months.  The 
Embassy will work to engage the minister and his top officials; 
the June Istanbul Power conference will provide an excellent 
opportunity to prove the United States is a serious partner. 
END COMMENT. 
ARMBRUSTER