On 22 December President of Turkmenistan Gurbanguly Berdymukhammedov signed a resolution “On guaranteed payments to contractors for construction and reconstruction of buildings and facilities” put forward by Deputy Prime Minister Gochmyrad Myradov.
The newspaper “Neitralny Turkmenistan” reports that pursuant to the resolution, the contracts concluded with local construction companies, regardless of their form of ownership, on construction and remodeling of buildings and facilities to execute the orders from the ministries, branch departments, agencies, other government agencies, enterprises, organizations and khyakimlik’s offices, regardless of sources of funding, envisage a mandatory payment of 5% of the completed work value, exclusive of VAT, on conditions of scrupulous object commissioning by a contractor, the approval of the state acceptance and expiration of a 12 month warranty period.
The resolution was adopted with a view of “improving architectural and urban planning image of the country and tightening control over the quality of construction objects”.
The information agency Trend reports that these are contracts, concluded between government agencies and foreign entities for construction and remodeling of buildings and facilities (except industrial buildings and facilities of especial importance) on the territory of Turkmenistan.
Pursuant to the state plans, the share of private sector in the volume of gross domestic product will reach 70% by 2020. The local authorities recommended entrepreneurs to set up joint ventures with overseas partners by attracting investments.
At the same time, a representative of CIS Debt Recovery Solutions Taras Kopiy reports that two major state holdings of Turkmenistan “Turkmengas” and “Turkmenneft” have overdue debts for the total amount of $25 million to foreign which have not been settled for over a year and more.