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"Turkmenistan Will Consider Joining Eurasian Power Energy System in Future"

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Saparmurat Niyazov's Letter to President of CIS Energy Council

President of the Energy Council of the Commonwealth of Independent States

Mr Chubais A.B.

Esteemed Anatoliy Borisovich!

Let me express words of gratitude to you, all members of the Energy Council and heads of the power-engineering sectors of the CIS member states, for your high evaluation of the work of power-engineering workers of Turkmenistan in the field of modernization and future development of our country's electric energy sector and wish you, on our part, success in the fulfillment of the tasks of the energy sector.

In general, the establishment of large energy alliances for the purpose of achieving a steady supply of electric energy, the projects of integrating energy systems of the CIS member states and the integrated energy system of the Baltic States with the Trans-European Synchronized Integrated Energy System (TESIS) are the current tasks of modern energy development.

According to the approved program of development of our state until 2020 it is provided that a number of industrial facilities, along with using state-of-the-art technologies and building up the industrial potential of the country, are to be increased that is impracticable without stable and qualitative electricity supplies. At present, Turkmenistan carries out tremendous amount of work on the establishment of powerful domestic energy infrastructure capable of meeting increasing energy needs inside the country and ensuring stable exports of electrical energy. Along with implementation of projects on the enlargement of power generating facilities through constructing thermal power stations with limited capacities in different regions of Turkmenistan, the specific attention is paid to the construction of new and reconstruction of existing line parts of electric networks capable of providing a steady and reliable supply of electric energy.

Exports are an important direction of the country's power engineering, and we are interested in reliable cooperation with consumers of electric energy. The insolvency of the traditional consumers in the CIS member states, the imperfection in accounting for electric energy, the lack of precise regulations and obligations of the parties in the exchange and transit of energy and poor reliability of emergency systems have negatively affected the reliability of the energy system of Turkmenistan. Since 1996, 37 system failures had occurred, causing damage to the country's economy. Taking into account the existence of unresolved technical and legal issues needed to implement the principle of establishing an integrated energy system, we had to refuse to join the integrated energy system. As a result of this, we did not sign an agreement on the establishment of the collateral work of the electric energy systems of CIS member states in November 1998.

The continuous decrease and suspension in exports of electric energy forced us to find more beneficial sales markets by taking into account the supply and demand of the modern marketplace. At present, we provide Afghanistan, the Islamic Republic of Iran and Turkey with regular supplies of electricity on equal and mutually beneficial terms. After implementing projects on the establishment of a reliable energy system inside the country, resolving issues of technical nature and backing them by relevant agreements within the framework of the project of the collateral work of Turkmen energy system with the CIS member states, by adhering to the existing world trends of establishing global transnational electric energy systems, Turkmenistan will consider in future the issue of joining an emerging integrated electric energy system of the Eurasian continent.

In conclusion, let me wish you success in the fulfillment of tasks on the establishment of sustainable development of the economy of the Russian Federation as a whole, and of the electric energy sector in particular.

Sincerely yours,

Saparmurat Niyazov
President of Turkmenistan

10 February 2004