Caspian Environment Program Caspian Investment Forum Implementation of

Caspian Environment Program Caspian Investment Forum Implementation of the National Caspian Action Plan of Turkmenistan Glasovskiy V. A. Ministry of Nature Protection of Turkmenistan November 19, 2004 г. , Baku, Azerbaijan

National Caspian Action Plan: priority directions 1. Integrated management of the coastal zone of Turkmenistan • creation of adeguate legal and normative bases • recultivation of the watershed and coastal zone • work with the population 2. Strengthening the monitoring for conditions of Turkmen sector of the Caspian Sea 3. Development of economic potential of the Caspian outside of the oil, gas and chemical industry

Relationship between the NCAP of Turkmenistan and relevant national strategies on sustainable development • Program «Strategy of social-economic transformation of Turkmenistan to 2010» , including local and organizational programs • NEAP (National Environment Action Plan) to 2010, including environmental actions on territories of Turkmenistan coastal zone of the Caspian Sea on amount of 41. 5 million USDollars.

Implementation of the actions • Activities of the NCAP of Turkmenistan imlemented during 2002 - 2004 Donors – USD 135 673 (41%), Own funds– USD 191 733 (59%)

Examples of activities implemented under NCAP: • Elaboration of rules for protection of coastal waters of Turkmenistan from pollution from vessels • Dredging works and conduction of bathymetrical research of navigation channel in Turkmenbashi Bay • Cleaning of ground waters from oil contaminants around Turkmenbashi Oil Refinery

National budget obligations for NCAP activities planned for the period of 2004 -2007 • Continuation of reconstruction and modernization of Turkmenbashi Oil Refinery, minimization of negative impacts on the environment (USD 81, 6 million) • The tender is about to be completed on Construction of Hatchery (about USD 10 million) • Conservation and sustainable use of biodiversity of international importance in Khazar Reserve on the coast of the Caspian Sea (total budget – around USD 3 million)

Priority potential investment opportunities of the NCAP of Turkmenistan Utilization of ferroconcrete constructions on the seashore of Turkmenbashi bay. Upgrade of the system of monitoring and pollution control of the Turkmen sector of the Caspian Sea and its coastal area. Sustainable development of coastal zone of Cheleken peninsula Estimated action cost USD 10 million Estimated action cost USD 1, 5 million Estimatred action cost USD 6, 6 million

Investment attraction strategy Depending on the type of projects: For institutional project • Active cooperation with international organizations, potential donors For commercial projects • Liberization of legislation • Tax policy • Land code • Attraction of international investments, including private, by providing state guarantees, favorable conditions etc.