BISNIS Trades & Tenders, March 22, 1999 -- Part 2 (WEB SUPPLEMENT)

The Business Information Service for the Newly Independent States (BISNIS) is the U.S. Department of Commerce's information clearinghouse on trade and investment in the emerging markets of the newly independent states of the former Soviet Union. BISNIS has created the "BISNIS Trades & Tenders" electronic newsletter to help U.S. companies find business opportunities in these expanding markets.

These opportunities are provided solely as an informational service and do not represent an endorsement by the U.S. Department of Commerce. Verification of leads is the responsibility of the reader. BISNIS may consider other private sector-generated trade leads and tenders, in electronic form only, and publish on a space-available basis. Please send your leads to bisnis@ita.doc.gov

A full selection of BISNIS leads and other market intelligence is available via BISNIS OnLine at: www.mac.doc.gov/BISNIS
========================================================================
Lead #1: High duty gas turbines - Poti, Georgia
Lead #2: Kyrgyztelecom Call for Prequalification - Kyrgyzstan
Lead #3: Kyrgyztelecom Announcement - Kyrgyzstan
Lead #4: ADB Country Assistance Plan 1999-2000 Environmental Sector - Various Countries
Lead #5: ADB Country Assistance Plan 1999-2000 Health and Population Sector - Various Countries
Lead #6:ADB Country Assistance Plan 1999-2000 Urban Development Sector - Various Countries
Lead #7:ADB Country Assistance Plan 1999-2000 Transportation and Communications Sector - Various Countries
Lead #8:ADB Country Assistance Plan 1999-2000 Energy Sector - Various Countries
Lead #9:ADB Country Assistance Plan 1999-2000 Industry and Finance Sector - Various Countries
Lead #10:ADB Country Assistance Plan 1999-2000 Agriculture and Natural Resources Sector - Various Countries
Lead #11:ADB Country Assistance Plan 1999-2000 Education Sector - Various Countries
Lead #12:ADB Country Assistance Plan 1999-2000 Other Sectors - Various Countries
Lead #13:Rural Poverty Allieviation - Moldova
Lead #14:Road Infrastructure Project - Sakhalin, Russia
Lead #15:Tender Announcement for Development of Oil and Gas Fields - Taimyr Autonomous District, Russian Federation
Lead #16:Production Line for Infant Diapers - Moscow, Russia
Lead #17: Tender for Development of Tin Deposit - Khabarovsk, Russia
Lead #18: Wallpaper / Wallcoverings - St. Petersburg, Russia
Lead #19:Titanium Oxides, Chemicals and Organic Chemicals - St.Petersburg, Russia
Lead #20: Equipment to produce Roofing Tiles - Turkmenistan
Lead #21: Privatization Announcements for Variety of Enterprises - Turkmenistan
Lead #22: Railway Commercialization and Track Management - Ukraine
Lead #23: Chernobyl Shelter Tender - Ukraine
Lead #24: Tashkent Airport Modernization - Uzbekistan
Lead #25:Tender for Almalyk Household Chemicals Plant - Uzbekistan
==========================================================================

Lead #1
Contact Information:
Mogeli Tkebuchava, Chairman of Poti Sakrebulo
12 D. Agmashenebeli Str.
Poti 384690, Georgia
Tel/Fax: (995 393) 21008
or (995 32) 93 37 59 (Attantoin: BISNIS rep. in Georgia David Chantladze)

Enclosed is a letter from the Chairman of the Local Governmental Organ of
Poti SAKREBULO Mr. Mogeli Tkebuchava to the U.S. Ambassador in Georgia
Kenneth Yalowitz. He wants to lease some energy equipment from an American
companies and is asking for assistance. As you know Poti is a Black Sea
port city of Georgia and plays very important role in transportation of
goods to Caucasus and Asian republics. Ambassador asked me to include it in
our program and I am sending this letter as a TOP lead.

*******************
Your Excellency,

As you are probably aware Georgia is suffering from energetic crisis. The
deficit of approximately 1000 M W M hours is satisfied by importing an
electric power from the neighboring countries. In the present situation , we
consider adoption of High Duty Gas Turbines to be the most suitable way
for overcoming the existing crisis.

Lack of necessary free funds remains to be the main obstacle for the project
fulfillment. In this situation possibility of the Turbines' lease could be
the best solution of the problem. It would be nice if you could help us in
finding necessary contacts with either lease or manufacture companies or a
financial institution able to assist us in this undertaking.

Stable natural gas delivery and its relatively low price - approx. USD 90
per 1,000 cubic meters - makes production of competitive electric power
possible. Such beneficial conditions ensure future success of this
promising business.

Several large enterprises and even whole regions in Georgia are ready to
fully cover all the charges for having good opportunity of enjoying constant
electric power. City of Poti is among them. While ready to represent
necessary guarantees local authorities of the region would like to either
lease or purchase through the lease crediting several equipment from Heavy
Duty Gas Turbine Group up to 100 MW and thus ensure cheap electric power
supply. The Municipal authorities have already got a number of draft
contracts and preliminary agreements on:
a) sufficient gas supply;
b) sell of the generated electric power;
c) issue of the Policy underwritten by the leading Insurance Company
for the above mentioned turbines;

Many thanks in advance for your kind assistance.

Sincerely

Chairman of the Local Governmental
Organ of Poti SAKREBULO
*********************************************************************

Lead # 2: KyrgyzTelecom Call for Prequalification - Kyrgyzstan

GOVERNMENT OF THE KYRGYZ REPUBLIC
THE STATE PROPERTY FUND OF THE KYRGYZ REPUBLIC
Tender for Privatization of Kyrgyztelecom
CALL FOR PREQUALIFICATION
The Government of the Kyrgyz Republic has nominated the State Property Fund of the Kyrgyz Republic to hold the majority share of Kyrgyztelecom shares in trust. Kyrgyztelecom is an Open Joint Stock Company and the national telecom operator in the Kyrgyz Republic. The Government of the Kyrgyz Republic has decided to privatize a portion of Kyrgyztelecom through the sale of share packages in a competitive international tender. The State Property Fund of the Kyrgyz Republic calls for prequalification of interested parties. The successful bidder shall be required to make an investment of not less than US$ 150 million for the share package and, in addition, offer a ten year modernization plan.

Interested parties that meet the following two criteria, are invited to prequalify no later than June 4, 1999.

1. The interested party, or at least one member of a bidding consortium, must have annual revenues that exceed US$200 million.
2. The interested party, or at least one member of a bidding consortium, must be a telecom operator with not less than US$100 million of annual revenues from telecom operations.

All interested parties and bidding consortia that meet the above two criteria can prequalify by forwarding the following
information in English:

1. Name and headquarters address.
2. Name, title, address, telephone and fax numbers of the individual responsible for all matters concerning the
prequalification.
3. One page overview of bidders business operations, including a description of its existing telecommunications operations.
4. Copy of last annual report.
5. Letter signed by authorized executive that states the bidder, or consortium, meet the two criteria described above and
the bidder is interested in participating in the tender for the privatization of Kyrgyztelecom.

Two original sets of information should be sent to the Advisor retained by the State Property Fund of the Kyrgyz Republic on behalf of the Government of the Kyrgyz Republic:

R A I F F E I S E N I N V E S T M E N T A G CONSULTING & INVESTMENT

Marco Pongratz-Lippitt Ivars J. Bars
Reisnerstrasse 40 1 14 Sansome Street, I Oth floor
A- 1 030 Vienna, Austria San Francisco, CA 94104, USA
Tel: +43 (1) 710-5400-47 Tel: +1 (415) 398-1990
Fax: +43 (1) 710-5400-69 Fax: +1 (415) 362-3268

NOTE: There is no cost to prequalify. Prequalified bidders have no obligation to submit a bid in the tender. A bidder may add or delete members of its consortium up to the moment of bid submission. All bidders that prequalify will be notified by fax no later than June 9, 1999. The tender documents will be issued on June 11, 1999 at no charge to all prequalified bidders. Only prequalified bidders shall receive the tender documents and be permitted to submit bids. The due date for bids shall be September 17, 1999.
*******************************************************************
Lead #3
SUBJECT: TENDER FOR PRIVATIZATION OF KYRGYZTELECOM
--------
SUMMARY

1. THE GOVERNMENT OF THE KYRGYZ REPUBLIC HAS NOMINATED
THE STATE PROPERTY FUND TO HOLD THE MAJORITY SHARE OF
THE 'KYRGYZTELECOM' (OPEN JOINT-STOCK COMPANY AND THE
NATIONAL TELECOM OPERATOR). THE GOVERNMENT HAS DECIDED
TO PRIVATIZE A PORTION OF KYRGYZTELECOM THROUGH THE
SALE OF SHARE PACKAGES IN A COMPETITIVE INTERNATIONAL
TENDER. THE STATE PROPERTY FUND CALLS FOR
PREQUALIFICATION OF INTERESTED PARTIES. END SUMMARY.
-------------
BID OVERVIEW
-------------

2. THE SUCCESSFUL BIDDER SHALL BE REQUIRED TO MAKE AN
INVESTMENT OF NOT LESS THAN USD 150 MILLION FOR THE
SHARE PACKAGE AND, IN ADDITION, OFFER A TEN YEAR
HODERNIZATION PLAN.

3. INTERESTED PARTIES THAT MEET THE FOLLOWING TWO
CRITERIA, ARE INVITED TO PREQUALIFY NO LATER THAN JUNE
4, 1999.
A). THE INTERESTED PARTY, OR AT LEAST ONE MEMBER OF A
BIDDING CONSORTIUM, MUST HAVE ANNUAL REVENUES THAT
EXCEED USD 200 MILLION.
B). THE INTERESTED PARTY, OR AT LEAST ONE MENBER OF A
BIDDING CONSORTIUN, MUST BE A TELECOM OPERATOR WITH NOT
LESS THAN USD 100 MILLION OF REVENUES FROM TELECOM
OPERATIONS.

---------------
BID PROCEDURES
---------------

4. ALL INTERESTED PARTIES AND BIDDING CONSORTIA THAT
MEET THE ABOVE TWO CRITERIA CAN PREQUALIFY BY
FORWARDING THE FOLLOWING INFORNATION IN ENGLISH:
-- NAME AND ADDRESS OF CORPORATE HEADQUARTERS;
-- NANE, TITLE, ADDRESS, TELEPHONE AND FAX NUNBERS OF
THE INDIVIDUAL RESPONSIBLE FOR ALL NATTERS CONCERNING
THE PREQUALIFICATION;
-- ONE PAGE OVERVIEW OF BIDDERS' BUSINESS OPERATIONS,
INCLUDING A DESCRIPTION OF ITS EXISTING
TELECOMMUNICATIONS OPERATIONS;
-- COPY OF LAST ANNUAL REPORT;
-- LETTER SIGNED BY AUTHORIZED EXECUTIVE THAT STATES
THE BIDDER, OR CONSORTIUM, MEET THE TWO CRITERIA
DESCRIBED ABOVE AND THE BIDDER IS INTERESTED IN
PARTICIPATING IN THE TENDER FOR THE PRIVATIZATION OF
KYRGYZTELECOM.

5. TWO ORIGINAL SETS OF INFORMATION SHOULD BE SENT TO
THE ADVISOR RETAINED BY THE STATE PROPERTY FUND ON
BEHALF OF THE GOVERNMENT OF THE KYRGYZ REPUBLIC,
NAMELY:
RAIFEISEN INVESTMENT AG
1. MARCO PONGRATZ-LIPPIT
REISNERSTRASSE 40
A-1030 VIENA, AUSTRIA
TEL: & (431) 710-5400-47
FAX: & (431) 710-5400-69
2. IVARS J.BARS
114 SANSOME STREET, LOTH FLOOR
SAN FRANCISCO, CA 94104, USA
TEL: & (415) 398-1990
FAX: & (415) 362-3268
NOTE: THERE IS NO COST TO PREQUALIFY. PREQUALIFIED
BIDDERS HAVE NO OBLIGATION TO SUBMIT A BID IN THE
TENDER. A BIDDER MAY ADD OR DELETE MEMBERS OF ITS
CONSORTIUM UP TO THE MOMENT OF BID SUBMISSION.

6. ALL BIDDERS THAT PREQUALIFY WILL BE NOTIFIED BY FAX
NO LATER THAT JUNE 9, 1999. THE TENDER DOCUMENT WILL
BE ISSUED ON JUNE 11, 1999 AT NO CHARGE TO ALL
PREQUALIFIED BIDDERS. ONLY PREQUALIFIED BIDDERS SHALL
RECEIVE THE TENDER DOCUMENTS AND BE PERMITTED TO SUBMIT
BIDS. THE DUE DATE FOR BIDS SHALL BE SEPTEMBER 17,
1999.

SOURCE: BISNIS REPRESENTATIVE IN KYRGYZSTAN
******************************************************************
Lead #4
SUBJECT: ADB COUNTRY ASSISTANCE PLAN - 1999-2001
- ENVIRONMENT SECTOR

INTERNATIONAL COPYRIGHT U.S. & FOREIGN COMMERCIAL SERVICE
AND U.S. DEPARTMENT OF STATE, 1999. ALL RIGHTS RESERVED
OUTSIDE OF THE UNITED STATES.

-------------
I. SUMMARY
-------------

THIS CABLE OUTLINES THE PROJECTS THE BANK IS PLANNING TO
FINANCE IN THE ENVIRONMENT SECTOR FOR THE NEXT TWO YEARS.
THIS IS PROVIDED AS ADVANCE INFORMATION FOR U.S. FIRMS.
DETAILED INFORMATION ON THE PROJECTS WILL BECOME
AVAILABLE AS THEY ARE PROCESSED AND WILL BE PUBLISHED IN
THE ASIAN DEVELOPMENT BANK BUSINESS OPPORTUNITIES
(AVAILABLE BY SUBSCRIPTION FROM THE ADB AT
US$100.00/YEAR) AND FROM THE EBB AND INTERNET.

-------------------------------------------
II. ENVIRONMENT SECTOR PROJECTS, 1999-2001
-------------------------------------------
. KYRGYZ REPUBLIC

-1999 TECHNICAL ASSISTANCE PROGRAM AMOUNT($'000)
INDUSTRIAL POLLUTION CONTROL AND
-ENVIRONMENT MANAGEMENT 600.0
**************************************************************
Lead #5
SUBJECT: ADB COUNTRY ASSISTANCE PLAN - 1999-2001
- HEALTH & POPULATION SECTOR

INTERNATIONAL COPYRIGHT U.S. & FOREIGN COMMERCIAL SERVICE
AND U.S. DEPARTMENT OF STATE, 1999. ALL RIGHTS RESERVED
OUTSIDE OF THE UNITED STATES.

-------------
I. SUMMARY
-------------

THIS CABLE OUTLINES THE PROJECTS THE BANK IS PLANNING TO
FINANCE IN THE HEALTH & POPULATION SECTOR FOR THE NEXT
TWO YEARS. THIS IS PROVIDED AS ADVANCE INFORMATION FOR
U.S. FIRMS. DETAILED INFORMATION ON THE PROJECTS WILL
BECOME AVAILABLE AS THEY ARE PROCESSED AND WILL BE
PUBLISHED IN THE ASIAN DEVELOPMENT BANK BUSINESS
OPPORTUNITIES (AVAILABLE BY SUBSCRIPTION FROM THE ADB AT
US$100.00/YEAR) AND FROM THE EBB AND INTERNET.

----------------------------------------------------
II. HEALTH & POPULATION SECTOR PROJECTS, 1999-2001
----------------------------------------------------

KYRGYZ REPUBLIC AMOUNT ($M)

-2001 LOAN
COMMUNITY-BASED EARLY CHILDHOOD
-DEVELOPMENT 20.0

-2000 TECHNICAL ASSISTANCE PROGRAM AMOUNT ($'000)
COMMUNITY-BASED EARLY CHILDHOOD
-DEVELOPMENT 700.0

2001 TECHNICAL ASSISTANCE PROGRAM AMOUNT ($'000)
INSTITUTIONAL SUPPORT FOR EARLY
-CHILDHOOD DEVELOPMENT 650.0
**********************************************************************
Lead #6
SUBJECT: ADB COUNTRY ASSISTANCE PLAN - 1999-2001
- URBAN DEVELOPMENT SECTOR

INTERNATIONAL COPYRIGHT U.S. & FOREIGN COMMERCIAL SERVICE
AND U.S. DEPARTMENT OF STATE, 1999. ALL RIGHTS RESERVED
OUTSIDE OF THE UNITED STATES.

-------------
I. SUMMARY
-------------

THIS CABLE OUTLINES THE PROJECTS THE BANK IS PLANNING TO
FINANCE IN THE URBAN DEVELOPMENT SECTOR FOR THE NEXT TWO
YEARS. THIS IS PROVIDED AS ADVANCE INFORMATION FOR U.S.
FIRMS. DETAILED INFORMATION ON THE PROJECTS WILL BECOME
AVAILABLE AS THEY ARE PROCESSED AND WILL BE PUBLISHED IN
THE ASIAN DEVELOPMENT BANK BUSINESS OPPORTUNITIES
(AVAILABLE BY SUBSCRIPTION FROM THE ADB AT
US$100.00/YEAR) AND FROM THE EBB AND INTERNET.

--------------------------------------------------------
II. URBAN DEVELOPMENT SECTOR PROJECTS, 1999-2001
--------------------------------------------------------

KYRGYZ REPUBLIC

-2000 LOAN AMOUNT ($M)
COMMUNITY-BASED INFRASTRUCTURE SERVICES
-SECTOR 20.0

-2000 TECHNICAL ASSISTANCE PROGRAM AMOUNT ($'000)
TRAINING PROGRAM FOR RURAL
-INFRASTRUCTURE SERVICES 650.0
*********************************************************************
Lead 7
SUBJECT: ADB COUNTRY ASSISTANCE PLAN - 1999-2001
- TRANSPORT AND COMMUNICATIONS SECTOR

INTERNATIONAL COPYRIGHT U.S. & FOREIGN COMMERCIAL SERVICE
AND U.S. DEPARTMENT OF STATE, 1999. ALL RIGHTS RESERVED
OUTSIDE OF THE UNITED STATES.

-------------
I. SUMMARY
-------------

THIS CABLE OUTLINES THE PROJECTS THE BANK IS PLANNING TO
FINANCE IN THE TRANSPORT AND COMMUNICATIONS SECTOR FOR
THE NEXT TWO YEARS. THIS IS PROVIDED AS ADVANCE
INFORMATION FOR U.S. FIRMS. DETAILED INFORMATION ON THE
PROJECTS WILL BECOME AVAILABLE AS THEY ARE PROCESSED AND
WILL BE PUBLISHED IN THE ASIAN DEVELOPMENT BANK BUSINESS
OPPORTUNITIES (AVAILABLE BY SUBSCRIPTION FROM THE ADB AT
US$100.00/YEAR) AND FROM THE EBB AND INTERNET.

--------------------------------------------------------
II. TRANSPORT AND COMMUNICATIONS SECTOR PROJECTS,
- 1999-2001
--------------------------------------------------------

KAZAKSTAN

-1999 LOAN AMOUNT ($M)
SUB-REGIONAL ROAD REHABILITATION IN
-KAZ AND KGZ 40.0

-2001 LOAN AMOUNT ($M)
THIRD TRANSPORT SECTOR 50.0

-1999 TECHNICAL ASSISTANCE PROGRAM AMOUNT ($'000)
SECOND ROAD REHABILITATION 600.0

THIRD TRANSPORT SECTOR 600.0

KYRGYZ REPUBLIC

-1999 LOAN AMOUNT ($M)
SUB-REGIONAL ROAD REHABILITATION IN
-KAZ AND KGZ 5.0

-2000 LOAN AMOUNT ($M)
THIRD ROAD REHABILITATION 40.0

-1999 TECHNICAL ASSISTANCE PROGRAM AMOUNT ($'000)
THIRD ROAD REHABILITATION 650.0

-2000 TECHNICAL ASSISTANCE PROGRAM AMOUNT ($'000)
INSTITUTIONAL SUPPORT IN THE TRANSPORT
-SECTOR 650.0

-2001 TECHNICAL ASSISTANCE PROGRAM AMOUNT ($'000)
FOURTH ROAD REHABILITATION 700.0

UZBEKISTAN
-2000 LOAN AMOUNT ($M)
RAILWAYS MODERNIZATION 60.0

-2001 LOAN AMOUNT ($M)
SECOND ROAD REHABILITATION 60.0

-1999 TECHNICAL ASSISTANCE PROGRAM AMOUNT ($'000)
RAILWAYS MODERNIZATION 550.0

-2000 TECHNICAL ASSISTANCE PROGRAM AMOUNT ($'000)
SECOND ROAD REHABILITATION 500.0
MODERNIZATION OF UZBEK RAILWAYS: INST'L
-STRENGTHENING CAPACITY BUILDING AND
- IMPLEMENTING SECTORAL REFORMS 750.0

-2001 TECHNICAL ASSISTANCE PROGRAM AMOUNT ($'000)
FURTHERING POLICY REFORM IN THE ROADS
-SECTOR TO BE DETERMINED
*******************************************************************
Lead #8
SUBJECT: ADB COUNTRY ASSISTANCE PLAN - 1999-2001
- ENERGY SECTOR

INTERNATIONAL COPYRIGHT U.S. & FOREIGN COMMERCIAL SERVICE
AND U.S. DEPARTMENT OF STATE, 1999. ALL RIGHTS RESERVED
OUTSIDE OF THE UNITED STATES.

-------------
I. SUMMARY
-------------

THIS CABLE OUTLINES THE PROJECTS THE BANK IS PLANNING TO
FINANCE IN THE ENERGY SECTOR FOR THE NEXT TWO YEARS.
THIS IS PROVIDED AS ADVANCE INFORMATION FOR U.S. FIRMS.
DETAILED INFORMATION ON THE PROJECTS WILL BECOME
AVAILABLE AS THEY ARE PROCESSED AND WILL BE PUBLISHED IN
THE ASIAN DEVELOPMENT BANK BUSINESS OPPORTUNITIES
(AVAILABLE BY SUBSCRIPTION FROM THE ADB AT
US$100.00/YEAR) AND FROM THE EBB AND INTERNET.

---------------------------------------
II. ENERGY SECTOR PROJECTS, 1999-2001
---------------------------------------

G. KYRGYZ REPUBLIC

-2000 LOAN AMOUNT ($M)
SUB-REGIONAL POWER TRANSMISSION LINE 20.0

-1999 TECHNICAL ASSISTANCE PROGRAM AMOUNT ($'000)
INDUSTRIAL POLLUTION CONTROL AND
-ENVIRONMENT MANAGEMENT 600.0
***************************************************************
Lead #9
SUBJECT: ADB COUNTRY ASSISTANCE PLAN - 1999-2001
- INDUSTRY & FINANCE SECTOR

INTERNATIONAL COPYRIGHT U.S. & FOREIGN COMMERCIAL SERVICE
AND U.S. DEPARTMENT OF STATE, 1999. ALL RIGHTS RESERVED
OUTSIDE OF THE UNITED STATES.

-------------
I. SUMMARY
-------------

THIS CABLE OUTLINES THE PROJECTS THE BANK IS PLANNING TO
FINANCE IN THE INDUSTRY & FINANCE SECTOR FOR THE NEXT TWO
YEARS. THIS IS PROVIDED AS ADVANCE INFORMATION FOR U.S.
FIRMS. DETAILED INFORMATION ON THE PROJECTS WILL BECOME
AVAILABLE AS THEY ARE PROCESSED AND WILL BE PUBLISHED IN
THE ASIAN DEVELOPMENT BANK BUSINESS OPPORTUNITIES
(AVAILABLE BY SUBSCRIPTION FROM THE ADB AT
US$100.00/YEAR) AND FROM THE EBB AND INTERNET.

--------------------------------------------------
II. INDUSTRY & FINANCE SECTOR PROJECTS, 1999-2001
--------------------------------------------------

KAZAKSTAN

-1999 TECHNICAL ASSISTANCE PROGRAM AMOUNT ($'000)
INSTITUTIONAL SUPPORT FOR ATTRACTING
- FOREIGN INVESTMENT 600.0
***************************************************************
Lead #10
SUBJECT: ADB COUNTRY ASSISTANCE PLAN - 1999-2001
- AGRICULTURE AND NATURAL RESOURCES SECTOR

INTERNATIONAL COPYRIGHT U.S. & FOREIGN COMMERCIAL SERVICE
AND U.S. DEPARTMENT OF STATE, 1999. ALL RIGHTS RESERVED
OUTSIDE OF THE UNITED STATES.

-------------
I. SUMMARY
-------------

THIS CABLE OUTLINES THE PROJECTS THE BANK IS PLANNING TO
FINANCE IN THE AGRICULTURE AND NATURAL RESOURCES SECTOR
FOR THE NEXT TWO YEARS. THIS IS PROVIDED AS ADVANCE
INFORMATION FOR U.S. FIRMS. DETAILED INFORMATION ON THE
PROJECTS WILL BECOME AVAILABLE AS THEY ARE PROCESSED AND
WILL BE PUBLISHED IN THE ASIAN DEVELOPMENT BANK BUSINESS
OPPORTUNITIES (AVAILABLE BY SUBSCRIPTION FROM THE ADB AT
US$100.00/YEAR) AND FROM THE EBB AND INTERNET.

--------------------------------------------------------
II. AGRICULTURE AND NATURAL RESOURCES SECTOR PROJECTS
--------------------------------------------------------

KAZAKSTAN

-1999LOAN AMOUNT($M)
FRM RESTRUCTURING SECTOR DEVELOPMENT
- PROGRAM 60.0

-2000 LOAN AMOUNT($M)
WATER RESOURCES MANAGEMENT AND LAND
- IMPROVEMENT II 40.0
AGRICULTURE SECTOR DEVELOPMENT
- PROGRAM LOAN 50.0

-2001 LOAN AMOUNT($M)
LIVESTOCK/GRAINS PRODUCTIVITY PROJECT 35.0
RURAL CREDIT 35.0

-1999 TECHNICAL ASSISTANCE PROGRAM AMOUNT($'000)
AGRICULTURE SECTOR DEVELOPMENT PROGRAM 600.0
WATER RESOURCES MANAGEMENT AND LAND
- IMPROVEMENT II 600.0
POST-PRIVATIZATION SUPPORT FOR
- IMPROVING FARM MANAGEMENT 600.0
SINGAPORE FOR SENIOR COMMERCIAL OFFICER ALSO PASS TO FAA
SUBJECT: ADB COUNTRY ASSISTANCE PLAN - 1999-2001
- AGRICULTURE AND NATURAL RESOURCES SECTOR

KYRGYZ REPUBLIC

-1999 LOAN AMOUNT($M)
AGRICULTURE AREA DEVELOPMENT 40.0

-2001 LOAN AMOUNT($M)
SECOND AGRICULTURE AREA DEVELOPMENT 30.0

-1999 TECHNICAL ASSISTANCE PROGRAM AMOUNT($'000)
CAPACITY BUILDING PROGRAM FOR THE
- MINISTRY OF AGRICULTURE AND WATER
- RESOURCES 600.0

-2000 TECHNICAL ASSISTANCE PROGRAM AMOUNT($'000)
CAPACITY BUILDING PROGRAM FOR
- AGRICULTURE IN SELECTED OBLASTS 700.0
SECOND AGRICULTURE AREA DEVELOPMENT 650.0

UZBEKISTAN

-1999 LOAN AMOUNT($M)
AGRICULTURE SECTOR DEVELOPMENT 40.0
RURAL ENTERPRISE DEVELOPMENT II 50.0
GRAIN PRODUCTIVITY 50.0

-2000 LOAN AMOUNT($M)
WATER RESOURCES MANAGEMENT IN
SINGAPORE FOR SENIOR COMMERCIAL OFFICER ALSO PASS TO FAA
DKNUDSEN

- AGRICULTURE 50.0

-2001 LOAN AMOUNT($M)
AGRIBUSINESS DEVELOPMENT 50.0

-1999 TECHNICAL ASSISTANCE PROGRAM AMOUNT($'000)
WATER RESOURCES MANAGEMENT IN
- AGRICULTURE 600.0
UPGRADING SKILLS FOR APPRAISING
- AGRIBUSINESS PROJECTS 600.0
STRENGTHENING IMPLEMENTATION OF
- AGRICULTURE SECTOR REFORM 600.0

FURTHERING POLICY REFORM IN THE
- FOOD GRAIN SUB-SECTOR 750.0

-2000 TECHNICAL ASSISTANCE PROGRAM AMOUNT($'000)
AGRIBUSINESS DEVELOPMENT 600.0
INSTITUTIONAL DEVELOPMENT AND POLICY
- REFORM FOR IMPROVING WATER MANAGEMENT 750.0
OVERCOMING POLICY AND INSTITUTIONAL
-CONSTRAINTS ON AGRIBUSINESS
- DEVELOPMENT 900.0
***************************************************************
Lead 11
SUBJECT: ADB COUNTRY ASSISTANCE PLAN: 1999-2001
- EDUCATION SECTOR

INTERNATIONAL COPYRIGHT U.S. & FOREIGN COMMERCIAL SERVICE
AND U.S. DEPARTMENT OF STATE, 1999. ALL RIGHTS RESERVED
OUTSIDE OF THE UNITED STATES.

-------------
I. SUMMARY
-------------

THIS CABLE OUTLINES THE PROJECTS THE BANK IS PLANNING TO
FINANCE IN THE EDUCATION SECTOR FOR THE NEXT TWO YEARS.
THIS IS PROVIDED AS ADVANCE INFORMATION FOR U.S. FIRMS.
DETAILED INFORMATION ON THE PROJECTS WILL BECOME
AVAILABLE AS THEY ARE PROCESSED AND WILL BE PUBLISHED IN
THE ASIAN DEVELOPMENT BANK BUSINESS OPPORTUNITIES
(AVAILABLE BY SUBSCRIPTION FROM THE ADB AT
US$100.00/YEAR) AND FROM THE EBB AND INTERNET.

-----------------------------------------
II. EDUCATION SECTOR PROJECTS, 1999-2001
-----------------------------------------
KAZAKSTAN

-2000 LOAN AMOUNT ($M)
THIRD EDUCATION 40.0

-2000 TECHNICAL ASSISTANCE PROGRAM AMOUNT ($'000)
THIRD EDUCATION 600.0

SINGAPORE FOR SENIOR COMMERCIAL OFFICER ALSO PASS TO FAA
DKNUDSEN

KYRGYZ REPUBLIC

-2001 LOAN AMOUNT ($M)
THIRD EDUCATION 30.0

-2000 TECHNICAL ASSISTANCE PROGRAM AMOUNT ($'000)
TRAINING PROGRAM FOR RURAL
-INFRASTRUCTURE SERVICES 650.0

-2001 TECHNICAL ASSISTANCE PROGRAM AMOUNT ($'000)
STRENGTHENING BASIC EDUCATION 650.0

UZBEKISTAN

-2000 LOAN AMOUNT ($M)
TEACHER EDUCATION REFORM 40.0

-2001 LOAN AMOUNT ($M)

SECOND TEXTBOOK DEVELOPMENT 50.0

-1999 TECHNICAL ASSISTANCE PROGRAM AMOUNT ($'000)
IMPROVEMENT OF EDUCATION
-MANAGEMENT 600.0
SECOND TEXTBOOK DEVELOPMENT 200.0
****************************************************************
Lead #12
SUBJECT: ADB COUNTRY ASSISTANCE PLAN - 1999-2001
- OTHER SECTORS

INTERNATIONAL COPYRIGHT U.S. & FOREIGN COMMERCIAL SERVICE
AND U.S. DEPARTMENT OF STATE, 1999. ALL RIGHTS RESERVED
OUTSIDE OF THE UNITED STATES.

-------------
I. SUMMARY
-------------

THIS CABLE OUTLINES THE PROJECTS THE BANK IS PLANNING TO
FINANCE IN THE OTHER SECTORS FOR THE NEXT TWO YEARS.
THIS IS PROVIDED AS ADVANCE INFORMATION FOR U.S. FIRMS.
DETAILED INFORMATION ON THE PROJECTS WILL BECOME
AVAILABLE AS THEY ARE PROCESSED AND WILL BE PUBLISHED IN
THE ASIAN DEVELOPMENT BANK BUSINESS OPPORTUNITIES
(AVAILABLE BY SUBSCRIPTION FROM THE ADB AT
US$100.00/YEAR) AND FROM THE EBB AND INTERNET.

--------------------------------------------------------
II. OTHER SECTORS PROJECTS, 1999-2001
--------------------------------------------------------

KAZAKSTAN

SUBJECT: ADB COUNTRY ASSISTANCE PLAN - 1999-2001
- OTHER SECTORS

-1999 TECHNICAL ASSISTANCE PROGRAM AMOUNT ($'000)
STRENGTHENING ECONOMIC MANAGEMENT 600.0

RESTRUCTURING PUBLIC ADMINISTRATION:
-IMPLEMENTING CIVIL SERVICE REFORMS 600.0

KYRGYZ REPUBLIC

-1999 LOAN AMOUNT ($M)
PENSION REFORM PROGRAM 15.0

-1999 TECHNICAL ASSISTANCE PROGRAM AMOUNT ($'000)
STRENGTHENING TAX ADMINISTRATION 350.0
POLICY SUPPORT FOR PENSION REFORM 600.0
CAPACITY BUILDING FOR THE PRESIDENT'S
-OFFICE 250.0
*******************************************************************
Lead #13: Rural Poverty Alleviation - Moldova
SUBJECT: EARLY PROJECT NOTIFICATION FOR A
PROPOSED IFAD LOAN (EPN): MOLDOVA:
RURAL POVERTY-ALLEVIATION PROGRAM (RPAP)

1. THE EARLY PROJECT NOTIFICATION SYSTEM HAS HAD
SIGNIFICANT IMPACT ON THE PROCESS OF REVIEW AND APPROVAL
OF PROJECTS FINANCED BY MULTILATERAL DEVELOPMENT BANKS
(MDB). MISSION COMMENTS ON SUCH PROJECTS HAVE BEEN
ESPECIALLY HELPFUL IN ACHIEVING POSITIVE RESPONSES TO
U.S. POLICY AND PROGRAM OBJECTIVES. YOUR COOPERATION IN
PROVIDING COMMENTS TO EPN REQUESTS ON PROJECTS TO BE
FINANCED BY THE INTERNATIONAL FUND FOR AGRICULTURAL
DEVELOPMENT (IFAD) IS GREATLY APPRECIATED.

2. A REPORT ON PROPOSED PROJECT ACTIVITIES IS PRESENTED
TO THE IFAD EXECUTIVE BOARD FOR REVIEW AND APPROVAL AT
EACH MEETING. AT THE 66TH IFAD EXECUTIVE BOARD SESSION,
SCHEDULED FOR APRIL 1999, IN ROME, ITALY, A PROPOSED LOAN
TO MOLDOVA FOR THE "RURAL POVERTY-ALLEVIATION PROGRAM"
(RPAP) WILL BE CONSIDERED.

3. SINCE WE WANT TO ENCOURAGE CLOSE COOPERATION AND
COLLABORATION BY IFAD STAFF IN ORDER TO ENSURE ACCEPTANCE
OF U.S. VIEWS YOU ARE REQUESTED TO DISCUSS THE PROJECT
PROPOSALS WITH REPRESENTATIVES OF IFAD AND THE HOST
GOVERNMENT WHO MAY VISIT OR MAY BE RESIDENT IN YOUR
CAPITAL.

4. YOU ARE REQUESTED TO REVIEW INFORMATION CURRENTLY
AVAILABLE ON THE PROPOSED PROJECT AND TO ALERT
USAID/W/G/EGAD AND U.S. EXECUTIVE DIRECTOR TO IFAD,
FODAG/AMEMBASSY ROME IF MAJOR PROBLEMS ARE ANTICIPATED
WITH THIS PROPOSED PROJECT ACTIVITY. PLEASE DESCRIBE THE
NATURE AND SEVERITY OF THOSE PROBLEMS AND THEIR
SIGNIFICANCE IN ORDER TO GUIDE U.S. ED AND G/EGAD IN
FOLLOWING UP WITH IFAD.

5. PLEASE PREPARE YOUR COMMENTS ON THE BASIS OF THE
SUMMARY OF INFORMATION CONTAINED IN THE IFAD PLANNED
PROJECT ACTIVITIES REPORT (SEE PARA. 8 BELOW) AND ANY
OTHER INFORMATION ON THE PROJECT AVAILABLE TO YOU AT THIS
TIME. IF YOU DO NOT HAVE SUFFICIENT INFORMATION ON THE
PROPOSED ACTIVITY TO MAKE AN INFORMED JUDGMENT,
INDICATE THIS IN YOUR RESPONSE.

6. PLEASE SEND YOUR REPLY BY CABLE VIA AIDAC CHANNEL
WITH ACTION TO SECSTATE AND AMEMBASSY ROME FOR
USAID/FODAG FOR WILLIAM B. BAUCOM AS EARLY AS POSSIBLE.
YOUR REPLY TO WASHINGTON SHOULD BE SLUGGED USAID/W FOR
G/EGAD, RALPH CUMMINGS.

7. THE FOLLOWING QUESTIONS ARE INTENDED AS A GUIDE:

A. IS IFAD INVOLVEMENT IN THIS SECTOR APPROPRIATE IN
VIEW OF THE COUNTRY'S MACROECONOMIC SITUATION AND
DEVELOPMENT NEEDS?

B. ARE THERE SERIOUS PROBLEMS WITH PROJECT DESIGN WHICH
WOULD LIMIT THE VIABILITY OF THE PROJECT?

C. ARE THERE SERIOUS UNDESIRABLE INCONSISTENCIES BETWEEN
THIS PROJECT AND ACTIVITIES AND POLICY OBJECTIVES OF
USAID OR OTHER DONORS?

8. A SUMMARY DESCRIPTION OF THE LOAN IS PRESENTED BELOW:

------------
LOAN SUMMARY
------------

TOTAL PROJECT COST:
TO BE DETERMINED

AMOUNT OF IFAD LOAN:
TO BE DETERMINED

TERMS OF IFAD LOAN:
HIGHLY CONCESSIONAL

COFINANCIER(S):
DISCUSSIONS ONGOING WITH THE WORLD BANK

APPRAISING INSTITUTION AND
IFAD AND TO BE DETERMINED

----------------------
B. PROJECT OBJECTIVES
----------------------

THE OVERALL GOAL OF THE PROPOSED PROGRAM WILL BE TO
CONTRIBUTE TO POVERTY ALLEVIATION AND THE IMPROVEMENT OF

HOUSEHOLD FOOD SECURITY IN RURAL AREAS DURING THE
TRANSITION TO A WELL-STRUCTURED FREE MARKET ECONOMY. TO
HELP ACHIEVE THIS GOAL, INITIAL PROGRAM INVESTMENTS WILL
AIM TO: (I) FACILITATE THE PARTICIPATION OF THE RURAL
POOR IN THE COMMERCIALIZATION OF AGRICULTURAL AND RURAL
DEVELOPMENT; AND (II) CONTRIBUTE TO THE ESTABLISHMENT OF
A RESPONSIVE INSTITUTIONAL FRAMEWORK FOR RURAL SERVICES
DELIVERY. RPAP'S INITIAL POST-PRIVATIZATION SUPPORT WILL
BUILD UPON THE SUBSTANTIAL FOUNDATION ESTABLISHED THROUGH
THE ONGOING WORLD BANK RURAL FINANCE PROJECT (RFP), AND
WILL BE CONSISTENT WITH AND SUPPORTIVE OF A COHESIVE
MICROFINANCE STRATEGY FOR MOLDOVA. OVERALL INVESTMENT
WILL BE GEARED TOWARDS ENSURING A BUILD-UP IN ECONOMIC
AND COMMERCIAL ACTIVITY IN THE RURAL AREAS TARGETED FOR
IFAD INTERVENTION AMONG THE RAPIDLY GROWING CONSTITUENCY
OF PRIVATE LANDHOLDERS (I.E., HOUSEHOLDS WITH INDIVIDUAL
LAND TITLE(S) DERIVED FROM THE PRIVATIZATION OF THE
FORMER KOLKHOZES/SOVKHOZES IN THEIR AREA).

-------------------------
C. PROJECT BENEFICIARIES
-------------------------

IFAD'S POTENTIAL TARGET GROUP IN MOLDOVA COMPRISES
AN ESTIMATED CURRENT 150,000 FARM HOUSEHOLDS NATION-WIDE
THAT HAVE LEFT THE FORMER COLLECTIVE FARMS TO BECOME
PRIVATE FARMERS OR WHO ASPIRE TO BECOME RURAL
MICROENTREPRENEURS. AFTER HAVING BEEN EFFECTIVELY HALTED
FOR ABOUT TWO YEARS, THE FARM DECOLLECTIVIZATION PROCESS
RESUMED IN 1996-1997. AN ADDITIONAL 200,000 FARM
FAMILIES ARE EXPECTED TO LEAVE COLLECTIVE FARMS OVER THE
NEXT SEVERAL YEARS AND FORM AN ADDITIONAL POTENTIAL PART
OF THE PROGRAM'S TARGET BENEFICIARY GROUP. PRIVATE
FARMERS, MOST OF WHOM ORGANIZE PRODUCTION ON AN EXTENDED
FAMILY OR SMALL-GROUP BASIS, WILL CONSTITUTE THE BACKBONE
OF AGRICULTURAL PRODUCTION AND FORM THE NEW ECONOMIC BASE
OF MOLDOVA'S 1,600 VILLAGES. THE RPAP IS TARGETED TO A
BENEFICIARY POPULATION COMPRISED OF THE POOREST OF THE
POOR IN MOLDOVA.

----------------------
D. PROJECT COMPONENTS
----------------------

(A) COMMUNITY MOBILIZATION

FUNDS WILL BE ALLOCATED TO A CONTRACTED NGO(S) TO
OPERATE AS A CATALYST FOR RURAL DEVELOPMENT IN THE
PROGRAM AREA, WORKING WITH AND ON BEHALF OF RECENTLY
PRIVATIZED LAND OWNERS. THE PROGRAM COMPONENT WILL: (I)
ESTABLISH A DIALOGUE WITH VILLAGERS; (II) ASSIST IN THE
IDENTIFICATION OF POTENTIAL DEVELOPMENT OPPORTUNITIES AND
THE STEPS WHICH VILLAGERS MAY TAKE TO ESTABLISH AND/OR
IMPROVE ACCESS TO SUCH OPPORTUNITIES (E.G., THROUGH THEIR
FORMATION OF DIFFERENT TYPES OF SELF-HELP ORGANIZATIONS,
INCLUDING SMALL-SCALE BUSINESSES, ASSOCIATIONS, SERVICE
OR MULTI-PURPOSE COOPERATIVES, ETC.); (III) ASSIST IN
LINKING PRIVATE, SMALL-SCALE BUSINESSES AND SELF-HELP
ORGANIZATIONS TO SOURCES OF SUPPLY OF RELEVANT GOODS,
SERVICES, TECHNICAL AND MARKETING INFORMATION, AND
FINANCING; AND (IV) WORK IN CLOSE COLLABORATION WITH
RURAL FINANCE CORPORATION (RFC) TO HELP INTERESTED
HOUSEHOLDS ESTABLISH THEIR OWN VILLAGE SAVINGS AND CREDIT
ASSOCIATION (SCAS).

(B) RURAL FINANCIAL SERVICE SUPPORT

THE COMPONENT WILL SUPPORT: (I) A STATE SUPERVISORY
BODY (SSB) TO LICENSE NEW SCAS AND ENSURE THE CONTINUAL
COMPLIANCE OF THE RURAL FINANCIAL SERVICE NETWORK WITH
THE ESTABLISHED FINANCIAL AND PRUDENTIAL FRAMEWORK. SSB
PERSONNEL, IN PARTICULAR THOSE IN THE LICENSING
DEPARTMENT, WILL BE TRAINED TO BUILD THE CAPACITY FOR
EFFECTIVE SCA SUPERVISION; (II) THE PROVISION OF
INSTITUTIONAL SUPPORT TO STRENGTHEN RFC IN ITS DUAL ROLE
AS A CENTRAL FINANCING FACILITY AND AS A SOURCE OF
FINANCIAL AND BUSINESS DEVELOPMENT TRAINING/ADVICE FOR
ITS MEMBERSHIP; (III) THE PROMOTION OF SCAS TO FUNCTION
AS RURAL FINANCIAL INTERMEDIARIES AT THE VILLAGE LEVEL.
THE AIM WILL BE FOR SCAS TO ATTRACT MEMBERS' SAVINGS TO
BUILD UP THEIR TOTAL ASSETS BASE TO PERMIT FUTURE ON-
LENDING OF SUCH SAVINGS, AND AS A BASIS FOR NEGOTIATING
EXPERIMENTAL DEPOSIT INSURANCE SCHEME.

(C) REVOLVING CREDIT FUNDS
THE COMPONENT WILL FINANCE THE PROVISION OF: (I) A
SUPPLEMENTARY SCA CREDIT LINE FOR ON-LENDING THROUGH RFC;
AND (II) THE ESTABLISHMENT OF A SMALL-SCALE ENTERPRISE
DEVELOPMENT FUND DEDICATED TO SUPPORTING THE SETTING-UP
OF SMALL-SCALE BUSINESSES IN THE RURAL AREAS. THE FUND
COULD BE ACCESSED FOR ON-FARM OR OFF-FARM ENTERPRISES AT
THE DISCRETION OF THE APPLICANTS, SUBJECT TO THEIR
MEETING PRE-SPECIFIED ELIGIBILITY CRITERIA.

(D) PROGRAM MANAGEMENT AND COORDINATION

A PROGRAM IMPLEMENTATION UNIT (PIU) WITH FULL
MANAGEMENT AND COORDINATION AUTHORITY OVER NOT ONLY THE
IFAD-SUPPORTED PROGRAM BUT ALSO THE OVERALL STRATEGY AND
PROCESS OF MICROFINANCING AT THE VILLAGE LEVEL IS
CONSIDERED ESSENTIAL IN ORDER TO MAINTAIN THE INTEGRITY
OF THE FRAMEWORK NOW IN PLACE FOR RURAL FINANCIAL SERVICE
DELIVERY. IFAD WILL THEREFORE FINANCE THE ESTABLISHMENT
AND INCREMENTAL OPERATIONAL COSTS OF A MANAGEMENT AND
COORDINATION UNIT TO OVERSEE PROGRAM IMPLEMENTATION
WITHIN THE EXISTING RURAL FINANCE PROJECT IMPLEMENTATION
UNIT (RFPIU). IFAD WILL TAKE-UP FULL OPERATING COSTS OF
THE EXISTING RFPIU WHEN WORLD BANK FUNDING FOR THE LATTER
CEASES IN THE YEAR 2000.

IFAD FUNDS WILL ALSO BE ALLOCATED TO PROVIDE FOR THE
OPERATING COSTS OF AN AD HOC, LOCALLY CONSTITUTED
TECHNICAL ADVISORY GROUP (IN EFFECT, A "THINK TANK")
WHICH WILL CONVENE PERIODICALLY TO MONITOR TRENDS IN THE
MICROFINANCE SUBSECTOR AND ADVISE UPON LONGER-TERM
STRATEGIC AND POLICY ISSUES. SINCE THE PROGRAM WILL BE
THE FIRST IFAD-SUPPORTED ONE IN MOLDOVA, A SHORT-TERM
PROGRAM PLANNING ADVISOR WILL BE FIELDED TO FAMILIARIZE
PIU AND ASSOCIATED IMPLEMENTING ORGANIZATIONS WITH IFAD
LOAN PROCEDURES AND REPORTING REQUIREMENTS. A M&E
SPECIALIST WILL ALSO BE RECRUITED FOR A SHORT PERIOD.

--------------------------
E. PROJECT IMPLEMENTATION
--------------------------
THE PROGRAM WILL BE IMPLEMENTED OVER A TWELVE-YEAR
PERIOD THROUGH A SERIES OF FOUR THREE-YEAR FUNDING
CYCLES. IMPLEMENTATION WILL BE THROUGH THE INSTITUTIONS
THAT NOW PROVIDE THE FRAMEWORK FOR RURAL FINANCIAL
SERVICES DELIVERY, WITH PROVISIONS FOR THE CONTRACTING OF
ADDITIONAL SERVICES FROM THE PRIVATE SECTOR AND NGOS AS
NECESSARY. PARTICULAR ATTENTION WILL BE GIVEN TO
ENSURING THAT MUTUALLY SUPPORTIVE ROLES ARE SUSTAINED BY
THE VARIOUS ORGANIZATIONS TO BE INVOLVED WITHIN THE
FRAMEWORK OF A COHESIVE STRATEGY FOR RURAL FINANCIAL
SERVICE DELIVERY UNDER THE IMPLEMENTATION AUTHORITY OF
PIU.

----------------------
F. IMPORTANT FEATURES
----------------------
THE PLANNING PROCESS AND ELAPSED TIME INVOLVED IN
THE CONVENTIONAL SEQUENCE OF COUNTRY OPPORTUNITY STRATEGY
PAPER (COSOP) PREPARATION, INCEPTION, FORMULATION AND
APPRAISAL IS NOT PARTICULARLY SUITED TO SERVING THE
GOVERNMENT'S PERCEIVED NEEDS IN SUPPORT OF ITS TRANSITION
TO A MARKET ECONOMY AND THE ATTENDANT PROBLEMS. THIS LED
IFAD TO CONSIDER INTRODUCING A MORE FLEXIBLE APPROACH TO
PLANNING AND FUNDING AN INTERVENTION IN MOLDOVA. THIS
WILL INVOLVE INITIATING AN AGREED-UPON FLEXIBLE LENDING
MECHANISM PROGRAM FRAMEWORK AND INTRODUCING AN INITIAL
SMALL LOAN FOR A DISCRETE SET OF "CRISIS-NEUTRAL"
ACTIVITIES, TO BE FOLLOWED BY A "ROLLING" FORM OF
SUBSIDIARY PROGRAMMING, LINKED TO THE NEGOTIATION OF A
SERIES OF SUPPLEMENTARY LOANS SERVICING A COMMON PROGRAM
FRAMEWORK. FURTHERMORE, A KEY REQUIREMENT IN MOLDOVA AT
THIS JUNCTURE IS TO ENCOURAGE THE RAPID DEVELOPMENT OF
SMALL TO MEDIUM-SCALE BUSINESS DEVELOPMENT IN RURAL
AREAS, INCLUDING PARTICIPATION OF FOREIGN
COMPANIES/ENTREPRENEURS, WITH A VIEW TO COMBINING
NECESSARY FINANCIAL SUPPORT WITH DIRECT ACCESS TO
SPECIALIZED TECHNICAL EXPERTISE. THIS, IN TURN, SUGGESTS
A NEED FOR IFAD TO TAKE THE LEAD IN DEVELOPING NEW
FINANCING INSTRUMENTS IN COLLABORATION WITH PRIVATE-
SECTOR PARTNERS AND GRANT-AID DONORS. GIVEN THE NATURE
OF THE DYNAMIC CHANGE OCCURRING IN THE AGRICULTURAL AND
FINANCIAL SERVICES SECTOR IN MOLDOVA, THE SALIENT FEATURE
IN THE DESIGN OF THE PROGRAM WILL BE THE ALLOWANCE MADE
FOR A MATCHING OF THE PROJECT'S TIME-FRAME WITH THE

PURSUIT OF THE PROJECT'S LONG-TERM DEVELOPMENT
OBJECTIVES.

---------------
G. MAIN ISSUES
---------------

DURING PROGRAM DEVELOPMENT AND IMPLEMENTATION, THE
FOLLOWING ISSUES WILL BE ADDRESSED: (I) TO MAINTAIN A
CLOSE WATCHING BRIEF ON ECONOMIC AND POLITICAL EVENTS
UNFOLDING IN MOLDOVA OVER THE NEXT SIX MONTHS, ESPECIALLY
WITH RESPECT TO THE GOVERNMENT'S ACHIEVEMENT OF FISCAL
TARGETS SET BY THE INTERNATIONAL MONETARY FUND (IMF), AND
TO ASSESS THE IMPLICATIONS OF ANY RESULTANT POLICY AND
INSTITUTIONAL CHANGES FOR PROGRAM DESIGN; (II) TO
PROCEED, AS RAPIDLY AS POSSIBLE, WITH NECESSARY STEPS TO
ESTABLISH THE RELATIVELY "CRISIS-NEUTRAL" ASPECTS OF THE
PROGRAM, WHILE RECOGNIZING THAT CONFIRMATION OF DETAILED
DESIGN REQUIREMENTS FOR ADDITIONAL IFAD FINANCING
INTERVENTIONS MAY ONLY BECOME FEASIBLE AT A SLIGHTLY
LATER STAGE (I.E., APPROVE AN INITIAL-CYCLE LOAN USING A
VARIANT OF THE FLEXIBLE LENDING MECHANISM, WITH A VIEW TO
NEGOTIATING A SUPPLEMENTARY LOAN(S) AS EVENTS IN MOLDOVA
UNFOLD); AND (III) TO SUBJECT THE ACCESS TO PROVISIONAL
FUND ALLOCATION TO A CONFIRMATION OF CONTINUING CREDIT
DEMAND OVER AND ABOVE THAT WHICH CAN BE SERVED BY
EXISTING CREDIT LINES, AS WELL AS THE EXTENT TO WHICH
COMMERCIAL BANKS HAVE BECOME INVOLVED IN SERVING SCA
CREDIT NEEDS FROM THEIR OWN RESOURCES AND/OR ANY
ADDITIONAL CREDIT LINES WHICH MAY BE AGREED UPON WITH THE
WORLD BANK. SHOULD THE COMBINATION OF WORLD BANK AND
COMMERCIAL BANK CREDIT LINES PROVE SUFFICIENT TO MEET
EMERGING SCA NEEDS, IFAD, WITH THE AGREEMENT OF THE
GOVERNMENT, WOULD RETAIN THE OPTION TO RE-ALLOCATE THE
USD 2.0 MILLION AS AN ADDITIONAL CREDIT SOURCE FOR THE
PROPOSED SMALL-SCALE ENTERPRISE DEVELOPMENT FUND, OR TO
REALLOCATE THE FUND TO OTHER PRIORITY ACTIVITIES THAT MAY
ARISE DURING THE PERIOD OF OVERALL FUNDING COMMITMENT FOR
THE PROGRAM.

----------------------------
H. PREVIOUS IFAD OPERATIONS
----------------------------

THIS IS IFAD'S FIRST INTERVENTION IN MOLDOVA. TRACY
*****************************************************************
Lead #14
The Roads Dept of the Sakhalin Regional Administration has announced
tenders
for design/cost estimates and construction on thirteen Federally-funded
road
infrastructure projects in Sakhalin Region. Sealed bids are due by March
25,
1999, with official opening scheduled for March 30, 1999, in
Yuzhno-Sakhalinsk.

The design/cost estimation projects include repair or reinforcement of four
existing bridges, construction of one new bridge, and repair of various
sections on the Federal north-south road from Yuzhno-Sakhalinsk to Okha.
Bids for design and cost estimation of an asphalt and paving concrete plant
in Zaozyernoye are also sought.

The construction projects include construction (per existing design) of
four permanent bridges and one temporary bridge, as well as repair and
maintenance of various sections of the Federal north-south road from
Yuzhno-Sakhalinsk to Okha.

American Business Center Yuzhno-Sakhalinsk has learned that the Region will
consider bids from qualified US companies having the appropriate licenses,
or joint ventures whose Russian partners have the appropriate licenses.
This ABC has on file the rules and instructions for the tender, application
forms, a list of sites, contact information, and text (in Russian) of the
Decree of the Sakhalin Regional Governor of 23 Jun 98 No 266, "Regulations
on Construction Industry Design Activities Executed by Foreign Companies in
Sakhalin Region," as well as other regulations governing foreign
contractors in Sakhalin Region. Bidders should submit a written request for a bid
packet to the Tender Committee, to include information about their qualification
and competence.

ABC Yuzhno-Sakhalinsk further advises that: (1) These projects are
Federally-funded. Sakhalin is eleventh out of 89 regions in terms of
promised Federal funding for roads, clearly a priority in this year's
budget. However, experience shows that payments from the Federal budget are
irregular at best -- government pledges to the contrary notwithstanding.
(2)
Article 64 of the new Tax Code provides some limited tax relief in the form
of one- to six-month postponements of corporate taxes when the company is
owed money under a Federal government contract. (3) Road Dept officials
confide that a Russian partner and/or some self-financing ability would
provide a great competitive advantage to foreign contractors in the tender
process. (4) This infrastructure work could provide an important entry
opportunity into the local road construction market for US companies
seeking later contracts associated with Sakhalin offshore oil and gas projects
(estimated at $25-40B over the next ten years), or with infrastructure
projects initiated by Sakhalin Oblast itself that are to be financed with
future hard-currency oil bonus funds.

Previous winners of road construction tenders, announced in January,
include:
ZAO Remmost, 35m bridge over Mezdurechnaya Creek on Yuzhno-Okha highway,
for RUR6.5 million ZAO Trud, 4.5 km of road repair on Yuzhno-Okha highway, for RUR40 million
Kholmsk State Unitary Company "Dorozhnik", 4.9 km of road repair and six
bridges (226m total), for RUR105 million
************************************************************
Lead #15
The following tender comes from the U.S. Commercial Office in Moscow (M. Edwards and N. Mikhailov)
RUSSIA: COMMERCIAL LICENSE TENDER ANNOUNCEMENT ON RIGHTS TO DEVELOP OIL AND GAS FIELDS IN TAIMYR AUTONOMOUS DISTRICT

According to Interfax Petroleum Report, Taimyr autonomous district authorities and MD-Seis International Ltd., the tender operator, are offering licenses to develop the North Vankorsky, Taikinsky and Gorchinsky blocks.

Listed by (1) Block (2)Area (sq. km) and (3) Recoverable hydrocarbons (mln tons/bln cu m)

North Vankorsky - 1163sqkm - C3 oil - 39.9, C3 gas - 28

Taikinsky - 1080 sqkm - D1 oil - 29, D1 gas -28.8

Gorchinsky - 1482 sqkm - D1 oil - 31, C3 gas - 8.221, D1 gas - 24.6

Totals: 3725 sqkm - C3 oil - 37.9, D1 oil - 60, C3 gas - 36.221, D1 gas - 53.5.

Bids will be accepted until August 20, 1999. The tender results will be announced September 23, 1999.

For additional information on tender information package, tender fees and bank transfers companies may contact:
MD-Seis International Ltd.
40/3 Narodnogo Opolcheniya St.,
123298 Moscow, Russia
Tel. (7-095) 192-8082/8858/8854
Fax: (7-095) 956-3016

We would appreciate your feedback on this report. If as a result of this report your firm seeks to participate in the above mentioned auction, we invite you to contact BISNIS or direct to:

US & Foreign Commercial Service Moscow
Bolshaya Molchanovka, 23/38, entrance 2.
121019, Moscow, Russia
Tel: 7-095-737-5030/5035
Fax: 7-095-737-5033
E-mail: Omoscow@cs.doc.gov
************
***************************************************************
Lead #16
6A. CONTACT:
6B. OLEG MORDUKHAYEV,
COMMERCIAL DIRECTOR
6C. JOINT-STOCK COMPANY ACONCERN GEFEST@
55-1-68, VARSHAVSKOYE SHOSSE,
MOSCOW, RUSSIA
7. PHONE: 7-(095)-111-4184/974-6573
8. FAX: 7-(095)-111-4184
9. 101
10A. COMPLETE PRODUCTION LINE FOR MANUFACTURING INFANT DIAPERS.
11. COMMENTS:

PRODUCT DATA
A. HS CODE:NA
B. DETAILED PRODUCT DESCRIPTION: COMPLETE LINE FOR MANUFACTURING INFANT DIAPERS.
C. PRODUCT SPECIFICATIONS/TECHNICAL DATA: THE COMPANY WILL BUY NEW OR USED EQUIPMENT AS WELL.
D. QUANTITY: 1 COMPLETE PRODUCTION LINE
E. U.S. DOLLAR VALUE: MUTUAL AGREEMENT
F. PURCHASE NEED BY: JULY,1999.
G. END-USER: BUYER
H. OTHER INFORMATION:NA

RESPONSE DATA
A. RESPONSE LANGUAGE: ENGLISH
B. BEST WAY TO RESPOND: BY PHONE/FAX
C. DIRECT MANUFACTURER ONLY: N
D. INFORMATION DESIRED FROM U.S. FIRM: CATALOGUES, PRICE-LISTS, TECHNICAL DATA.
E. PRIMARY BUYING FACTOR: PRICE, TERMS AND DATES OF DELIVERY, QUALITY.
F. OTHER INFORMATION:NA

COMPANY DATA
A. TYPE OF BUSINESS: MANUFACTURER OF FOOD AND HYGIENIC PRODUCTS, WHOLESALE AND RETAIL BUSINESS.
B. YEAR ESTABLISHED: 1993
C. NUMBER OF EMPLOYEES: 367
D. ANNUAL SALES: TURNOVER IN 1998 -USD 9.00 MLN
E. MEMBER OF BUSINESS CHAMBER: N
F. BANK NAME AND ADDRESS: MOSCOW BRANCH OF THE AKRASNODARBANK@; 26, PETROVKA STR., MOSCOW, RUSSIA.
G. U.S. FIRMS REPRESENTED:N
H. OTHER INFORMATION: THE COMPANY HAS FIVE REGIONAL SUBSIDIARIES IN RUSSIA (NIZHNIY NOVGOROD, ROSTOV-DON, STAVROPOL, REPLIC OF BASHKIRIYA AND REPUBLIC OF KABARDINO-BALKARIYA).

POST REMARKS: THE COMPANY WOULD LIKE TO IMPORT EQUIPMENT FOR ITS OWN USE TO START MANUFACTURING INFANT DIAPERS.
******************************************************************************
Lead #17
Tender for Development of Tin Deposit in the Priamurskaya Mine,
Russia

The Territorial Natural Resources Committee and the Khabarovsk Krai
administration invite domestic and foreign businesses to participate in a tender. The
object of the competition is the license on development tin deposit of the Pravourmiyskaya mine,
located in the Verkhnebureinskiy district of the Khabarovsk Krai. Proven deposit's
reserves of tin and tin ore (with accompanying rare metals) of B+C1categories are 102,153 tons
and 22,364 thousand tons respectively, and 40,906 tons of tin and 12,866 thousand tons of ore
in C2 category.

The tender is open to all participants irrespective of the forms of
ownership. Competitors must have no delinquent tax payments. An application must be prepared in
accordance with the "Regulation on the order of licensing the usage of natural
resources". The production estimates have to be turned in within 2.5 months.

The Natural Resources Committee will provide applicants with a bid
package, including a preliminary geological survey of the deposit and conditions under
which the reserves are to be developed. Bidders also should submit an environmental program.

The bid package costs USD 10 thousand.

The tender will be held on May 12, 1999 in Khabarovsk.

The applications will be turned into and the bid package distributed
by the Natural Resourses Committee of Khabarovsk Krai: 8 Lva Tolstogo Street, Khabarovsk
680000, Russia; tel: (7-4212) 235-449.

Contact: Gennady Pocherevin, Head of the Krai Natural Resources
Department
56 Karl Marx street, Khabarovsk 680000, Russia
Tel: (7-4212) 325-688, 325-080
Fax: (7-4212) 328-756
***************************************************************
Lead #19
6A. CONTACT:
6B. VITALY CHIZHOV, DIRECTOR GENERAL
6C. TOPAZ
P.O.BOX 190, ST.PETERSBURG, 192284, RUSSIA
7. PHONE: 7-(812)-261-0482
8. FAX: 7-(812)-261-0482
9. 101
10. 481420 WALLPAPER/SIMILAR WALL COVERINGS OF
PAPER

11. COMMENTS

PRODUCT DATA

A. DETAILED PRODUCT DESCRIPTION: WALLPAPER FOR
RESIDENTIAL AND OFFICE BUILDINGS.
B. PRODUCTION SPECIFICATIONS/TECHNICAL DATA: N/A
C. QUANTITY: N/A
D. U.S DOLLAR VALUE: N/A.
E. PURCHASE NEEDED BY: IMMEDIATELY.
F. OTHER INFORMATION: N/A
RESPONSE DATA

A. RESPONSE LANGUAGE: ENGLISH
B. BEST WAY TO RESPOND: BY FAX
C. FROM MANUFACTURERS ONLY: N
D. INFORMATION DESIRED FROM U.S. FIRMS:
TECHNICAL SPECIFICATIONS, PRICE QUOTATION AND TERMS
OF DELIVERY.
E. PRIMARY BUYING FACTOR: PRICE COMPETITIVENESS.
F. OTHER INFORMATION: N/A

COMPANY DATA

A. TYPE OF BUSINESS: IMPORTER, DISTRIBUTOR.
B. YEAR ESTABLISHED: 1997.
C. NUMBER OF EMPLOYEES: 10.
D. ANNUAL SALES: USD 250,000.
E. MEMBER OF BUSINESS CHAMBER: N/A
F. BANK NAME AND ADDRESS: SBERBANK OF RUSSIA.
G. U.S. FIRMS REPRESENTED: NONE.
H. OTHER INFORMATION: TOPAZ IS A WHOLESALE COMPANY
WHICH IMPORTS AND DISTRIBUTES CHEMICAL PRODUCTS AND
CONSTRUCTION MATERIALS THROUGHOUT RUSSIA.
***************************************************************
Lead #20
6A. CONTACT:
6B. VITALY CHIZHOV, DIRECTOR GENERAL
6C. TOPAZ
P.O.BOX 190, ST.PETERSBURG, 192284, RUSSIA
7. PHONE: 7-(812)-261-0482
8. FAX: 7-(812)-261-0482
9. 101
10A. 2823 TITANIUM OXIDES
10B. S5161 CHEMICALS AND ALLIED PRODUCTS
10C. 29 ORGANIC CHEMICALS

11. COMMENTS
PRODUCT DATA
A. DETAILED PRODUCT DESCRIPTION: A) TITANIUM
DIOXIDES; B) PHARMACEUTICAL SUBSTANCES AND VARIOUS
CHEMICALS USED IN THE PRODUCTION OF
PHARMACEUTICALS; C) FINE BIOCHEMICALS.
B. PRODUCTION SPECIFICATIONS/TECHNICAL DATA: N/A
C. QUANTITY: N/A
D. U.S DOLLAR VALUE: N/A.
E. PURCHASE NEEDED BY: IMMEDIATELY.
F. OTHER INFORMATION: N/A

RESPONSE DATA
A. RESPONSE LANGUAGE: ENGLISH
B. BEST WAY TO RESPOND: BY FAX
C. FROM MANUFACTURERS ONLY: N
D. INFORMATION DESIRED FROM U.S. FIRMS:
TECHNICAL SPECIFICATIONS, PRICE QUOTATION AND TERMS
OF DELIVERY.
E. PRIMARY BUYING FACTOR: PRICE COMPETITIVENESS.
F. OTHER INFORMATION: N/A

COMPANY DATA
A. TYPE OF BUSINESS: IMPORTER, DISTRIBUTOR.
B. YEAR ESTABLISHED: 1997.
C. NUMBER OF EMPLOYEES: 10.
D. ANNUAL SALES: USD 250,000.
E. MEMBER OF BUSINESS CHAMBER: N/A
F. BANK NAME AND ADDRESS: SBERBANK OF RUSSIA.
G. U.S. FIRMS REPRESENTED: NONE.
H. OTHER INFORMATION: TOPAZ IS A WHOLESALE COMPANY
WHICH IMPORTS AND DISTRIBUTES CHEMICAL PRODUCTS AND
CONSTRUCTION MATERIALS THROUGHOUT RUSSIA. THE FIRM
IS INTERESTED IN PURCHASING THE ABOVE-MENTIONED
CHEMICALS AS WELL AS THE POSSIBILITY OF BECOMING AN
OFFICIAL DISTRIBUTOR OF A U.S. SUPPLIER.
*****************************************************************
Lead #21
We are looking for equipment to produce concrete roofing tiles and ridge tiles.
We would like bids for a complete plant including:
Concrete feed mixer
Concrete conveyance system
Tile extrusion machine (5,000 pcs per shift, maximum 12,000 pcs)
Two types of extrusions heads (for two different style tiles)
Coating spray machinery
Appropriate conveyer system
All electrical cables and control panels
Curing support pallets
Spare parts (2 years supply)
Installation and commissioning
Concrete mix testing equipment
Strength testing equipment
Color pigment (Red, black, brown) for one year's production

Quotations should be CIP Ashgabat, Turkmenistan. Delivery will be accepted on Turn-Key basis.

Quotations can be sent by fax to: (99312) 39-01-52, e-mail to caaef@online.tm or by post to:

CAAEF
2 Pushkin Street
744000 Ashgabat
Turkmenistan

Thanks,
Paul Hamlin
CAAEF/Ashgabat
***********************************************************************
Lead #22
ANNOUNCEMENT 1
In accordance with State Privatization Program of Turkmenistan and numerous Presidential decrees on privatization of state property through auctions the Ministry of Economy and Finance of Turkmenistan announces the auction sale of state-owned objects.

Starting from 27 March 1999 auctions will take place every Saturday at 10.00 a.m., in the Conference-Hall of the Ministry of Economy & Finance of Turkmenistan, 4, N.Pomma St., Ashgabat.

THE LIST OF STATE-OWNED OBJECTS BEING AUCTIONED
Name
Location
Starting Price, Manat mn

Ministry of Textiles of Turkmenistan

1
Nebitdag Branch of "Khuner" Production Association
Block 112, Nebitdag, Balkan V.

elayat
100

2
Etrappromkombinat in Garrygala
13, D.Shakhyra St. Garrygala Balkan Velayat
540

3
Djebel Branch of Nebitdag Consumer Goods Factory
Old Settlement Center, Djebel Balkan Velayat
25

4
Sewing Workshop of Bakharden Consumer Goods Production Association
Turkmenbashy St. Bakharden Akhal Velayat
1030

5
Kaka Consumer Goods Factory
15 Octyabrskaya St. Kaka Akhal Velayat
430

6
Babadaikhan Branch of Ashgabat Consumer Goods Factory
20 Garashsyzlyk St. Babadaikhan Akhal Velayat
234

7
Tedjen Branch of Ashgabat Cotton Factory named After S.Niyazov
Tedjen Akhal Velayat
616

8
The Branch of Ashgabat Consumer Goods Production Association
Tedjen, Tedjengidrostroy

Akhal Velayat
384

9
Sewing Factory of Bakharden Consumer Goods Production Association in Karaul
Karaul Bakharden Etrap Akhal Velayat
300

10
Kushka Branch of Bezeg Yoloten Sewing Factory
Octyabrskaya St. Kushka Mary Velayat
583

11
Sayat Branch of Chardjev Textile Factory
B.Serdara St. Sayat Lebap Velayat
268

12
Etrappromkombinat in Karabekaul with the Branch in Geokdepe
27 Turkmenistan St. Karabekaul Lebap Velayat
474

13
Etrappromkombinat in Svintsovy Rudnik, Kelif and Gaurdak Settlements
Svintsovy Rudnik Settlement, Kelif Settlement, Gaurdak Settlement Lebap Velayat
399

14
Sayat Branch of Chardjev Sewing Factory
Niyazov St. Sayat Settlement Lebap Velayat
139

15
Deinau Branch of Chardjev Knitting Factory
Deinau Settlement Lebap Velayat
84

16
Chardjev Textile Factory
37 Zheleznodorozhnaya St. Chardjev Lebap Velayat
2893

17
Branch of Chardjev Clothing Factory
71, Niyazov St. Chardjev Lebap velayat
1169.2

18
Kunya-Urgench Consumer Goods Factory
5 Gurbanmedov St. Kunya-Urgench Lebap Velayat
1320

19
Pottery & Ceramics Branch of "Khuner" Ashgabat Production Association
11 Ataniyazov St. Dashkhovuz Dashkhovuz Velayat
138

20
Akdepe Consumer Goods Factory
32 Niyazov St. Akdepe Settlement Dashkhovuz Velayat
101

Food Processing Association of Turkmenistan

21
Nebitdag Soft Drinks Plant
Block 156 Nebitdag Balkan Velayat
264

22
Turkmenbashy Dairy
Ashgabat St. Turkmenbashy Balkan Velayat
3586

23
Garrygala Meat Plant
Igdejik St. Garrygala Balkan Velayat
123

24
Gyzylarbat Meat Plant
South Part St. Gyzylarbat Balkan Velayat
142

25
Gyzylarbat Dairy
8 Pogranichnikov St. Gyzylarbat Balkan Velayat
494

26
Serakhs Dairy
Kirpichnaya St. Serakhs Akhal Velayat
3120

27
Kunya-Urgench Dairy
44A Gurgench Shayely Kunya-Urgench Dashkhovuz Velayat
664

28
Khalach Dairy
Gagarin St. Khalach Lebap Velayat
880,3

29
Mini-Dairy Plant of Farmers' Association named after D.Makhremova in Khalach Etrap
Farmers' Association named after D.Makhremova Khalach Etrap Lebap Velayat
705,5

30
Mary Confectionery
Daikhan St Mary Mary velayat
171

Fruit & Vegetable Trade Association of Turkmenistan

31
Chardjev Tomato Cannery
57 Poltoratskogo St. Chardjev Lebap Velayat
942

32
Bakharden Fruit Processing Plant
73 Shosseinaya St. Bakharden Akhal Velayat
782

33
Tedjen Cannery
Tedjen Akhal Velayat
5230

Ministry of Energy and Industry of Turkmenistan

34
Mary Brick Plant #3 of Mary Power Station
Industrial Area of Mary Power Station Mary Mary Velayat
638

Ministry of Building Materials Industry of Turkmenistan

35
Chardjev Building Materials Plant
Industrial Area #1 Chardjev Lebap Velayat
5164

36
Dashkhovuz Facing Materials Plant
7a Magtymguly St. Dashkhovuz Dashkhovuz Velayat
640

Turkmen Carpet State Association

37
Kaka Felt Factory
25 Svoboda St. Kaka Settlement Akhal Velayat
1490

Turkmen Oil State Association

38
Gumdag Lamb Skin Processing Factory
2 km south from Gumdag Balkan Velayat
589

Unfinished Construction Objects

39
Brick Plant in Yashyl Depe of Gyaurs Etrap
Yashyl Depe Farmers' Association Gyaurs Etrap Akhal Velayat
946

40
Hotel (50 seats) in Annau
Annau Gyaurs Etrap Akhal Velayat
260

41
Administrative Laboratory Building in Bairamali
Erkana Bairamali Etrap Mary Velayat
66.3

42
Warehouse for Non-Food Products in Mary
Near Car Service Center Mary Mary Velayat
1 924

43
Children Sport School in Tagta
Tagta Settlement Dashkhovuz
293

44
Dairy Plant
Khodjambas Settlement Lebap Velayat
263

45
Baby Food Kitchen, Deinau
Deinau Lebap Velayat
94

46
Dispensary in Chardjev
Chardjev City
924

47
Sauna in Kerki, 35 seats
Kerki Lebap Velayat
286

48
Sauna in Farab,
Farab Lebap Velayat
124

49
Service Station in Kerkichi
Kerkichi settlement Lebap Velayat
174

50
"Ustyurt" Sanatorium
Etrap named after S.Turkmenbashi Dashkhovuz Velayat
1 888

51
Sauna, 100 seats
Dashkhovuz City Dashkhovuz Etrap
326

52
"Mother and Child" Sanatorium in Dashkhovuz
Dashkhovuz Etrap Dashkhovuz Velayat
1 835

53
"Ak Altyn" Sanatorium in Bairamali
Bayram-ali City Mary Velayat
7 346

To be disposed of through auctions are the state shareholdings in Maksat-Deri Tannery JSC that produces leather to make clothing and haberdashery goods and in Nur Dairy JSC that is involved in milk processing and production of dairy products.

Name
Location
Number of Shares /Lot
Deposit, Manat mn
Starting Lot Price, Manat mn
Lot Share in Authorized Capital, %

1
Maksat-Deri JSC
Turkmenbashy Settlement, Mary Power Station, Mary
7538

11306

13190
75.4

113.1

131.9
753.8

1130.6

1319.0
20

35

2
Nur JSC of open type
1st km of Khivaabadskoye shosse, Kaka settlement
36030
360.3
3603.0
100

Citizens of Turkmenistan, citizens of foreign states, as well as non-governmental legal entities of Turkmenistan and legal entities of foreign states who have submitted a bid, paid the deposit and special fee, and completed the registration process are allowed to participate in the auctions.

Bids and applications are accepted and processed at the State Property and Privatization Agency located at the Ministry of Economy and Finance of Turkmenistan: 2 N. Pomma St. Ashgabat. The additional information related to auctions is available at the Agency and its branches in velayats as well as in Ashgabat from the date of publication of this announcement and ends 24 hours before the auction time.
All interested parties are encouraged to visit the enterprise prior to the submission of their bids.

The winners of auctions have the right for the deferred payment depending on object price and sale terms.

For more information contact: (993 12) 51 23 60; (993 12) 51 19 96 (fax)

E-mail address: ugp@online.tm

ANNOUNCEMENT 2

State Agency for Foreign Investment of Turkmenistan announces the auction sale of 85% common stock majority shareholdings in the “Ashbytkhim” Stock Company.

Ashbytkhim is located in the industrial zone of Ashgabat. The favorable location is ensured by its proximity to the international airport and bus terminals, railway lines and a major highway. Principal activity: production of plastic goods, plastic film, detergents, leatherette and linoleum. Total area: 5.6 ha.

The winner of the auction will be granted a 5 year deferred payment made in equal annual installments in Manat equivalent of the foreign currency. The asking price of the 85%-stake is 4,491,000,000 Manat. The security deposit is to be made in the amount of 265,000,000 Manat cash or bank guarantee to account No. 572101 with the Central Treasury Department at Central Bank of Turkmenistan, code 390101101, tax code 101161009451 (put down the name of recipient “Center for Privatization at SAFI” on the payment order).

The auction is to be held in Ashgabat on April 7, 1999 at 10 a.m. Applications in English or Russian should be submitted at the following address: Ashgabat, Azadi Street 53, Privatization Center at the State Agency for Foreign Investment at the President of Turkmenistan. The deadline is 48 hours before the auction time.

For more information call: (993 12) 39 77 34; (993 12) 35 04 16 (fax)

E-mail address: gulnar@int.ashgabad.su

ANNOUNCEMENT 3

State Agency for Foreign Investment of Turkmenistan announces the open investment tender for 80% common stock majority shareholdings in Nebitdag Dairy Plant.

The plant is located in Nebitdag, the massive oil area of Turkmenistan. The dairy’s profile is dry milk powder processing and production of dairy products (cotton cheese, sour cream, ice cream and yogurt). Its total land area is 7052 sq.m. The value of to-be-disposed state shareholdings (80%) is 2,197 mln Manat.

The tender is to be held in Ashgabat in April 1999. Applications in English or Russian should be submitted at the following address: Ashgabat, Azadi St. 53, Privatization Center at the State Agency for Foreign Investment at the President of Turkmenistan. The deadline is 48 hours before the tender.

For more information call: (993 12) 39 77 34; (993 12) 35 04 16 (fax)

E-mail address: gulnar@int.ashgabad.su

ANNOUNCEMENT 4
Ministry of Economy & Finance of Turkmenistan announces the investment tender for sale of Dashkhovuz Tomato Cannery

Dashkhovuz Tomato Cannery is to be privatized and sold through an investment tender to be held at the offices of the State Property and Privatization Agency, 4, N.Pomma St., Ashgabat. Meetings of the Tender Commission will start from March 6, 1999 every Wednesday at 3 p.m.

A price of 12.245 billion Manat has been established with the further requirement that the Buyer invests funds for technical modernization of the enterprise.

Citizens of Turkmenistan, citizens of foreign countries and persons without citizenship as well as non-state legal entities of Turkmenistan and legal entities of foreign countries are invited to take part in the tender. Bids and applications should be submitted 2 working days before the tender begins. The winner of the tender has a right for the deferred payment.

All interested parties are encouraged to visit the enterprise prior to the submission of their bids.
For more information call: (993 12) 51 23 60; (993 12) 51 19 96 (fax)
E-mail address: ugp@online.tm
*********************************************************
Lead #23
SUBJECT: INTERNATIONAL MARKET INSIGHT (IMI) RAILWAY
COMMERCIALISATION AND TRACK MANAGEMENT PROJECT, UKRAINE -
REPORTED BA CS-EBRD

SUMMARY: EBRD PROJECT EARLYWARNING. THE FOLLOWING PROJECT IS
BEING CONSIDEED FOR FINANCE BY THE EBRD. U.S. COMPANIES
INTRESTED IN BIDDING ON CONTRACTS WHICH FORM PART OF THI
PROJECT SHOULD MONITOR THE EBRD'S WEB PAGE WWW.BRD `WHAT'S
NEW' AND DOWNLOAD "PROCUREMENT OPPORUNITIES" PUBLISHED TWICE
MONTHLY.

NOTE: COMPLETE CONTACT INFORMATION PROVIDED AT END OF REPORT.
POST OF ORIGIN: COMMERCIAL SERVICE EUROPEAN BANK FOR
RECONSTRUCTION AND DEVELOPMENT (EBRD)

THE PROJECT WILL FINANCE THE PURCHASE OF TRACK MAINTENANCE
MACHINERY AND TRACK IMPROVEMENT MATERIALS FOR THE MAJOR RAIL
CORRIDOR BETWEEN L'VIV AND KIEV, UKRAINE.

OPERATION STATUS: PASSED FINAL REVIEW
BOARD REVIEW DATE: JULY 1999
BUSINESS SECTOR: TRANSPORT
PORTFOLIO CLASSIFICATION: STATE SECTOR

THE CLIENT

THE CLIENT IS THE STATE ADMINISTRATION FOR RAILWAY TRANSPORT
OF UKRAINE (UZ), AN ENTITY WHOLLY OWNED BY THE STATE. UZ'S
DIRECTOR GENERAL IS ALSO FIRST DEPUTY MINISTER OF TRANSPORT.

PROPOSED EBRD FINANCE

LOAN (SOVEREIGN GUARANTEED) OF US$ 46.9 MILLION (EUR 40.7
MILLION) WITH A 15-YEAR TERM. THE EBRD EXPECTS TO MOBILISE AN
ADDITIONAL US$ 25.8 MILLION (EUR 22.4 MILLION) OF EXPORT
CREDIT AGENCY FINANCING THROUGH ITS ECLAT (EXPORT CREDIT LOAN
ARRANGEMENT TECHNIQUE) SCHEME. ADDITIONAL FUNDING, ESTIMATED
AT US$ 1.0 MILLION, WILL BE SOUGHT TO DEFRAY COSTS OF PROJECT
IMPLEMENTATION.

TOTAL PROJECT COST

US$ 110.9 MILLION (EUR 96.2 MILLION)

PROJECT OBJECTIVES

THE PROJECT AIMS TO ASSIST UZ BY:

- SUSTAINING THE KYIV-L'VIV RAIL LINE, UZ'S MAIN TRANSPORT
LINK TO EUROPE;
- REDUCING LIFE-CYCLE COSTS OF TRACK BY MODERNISING UZ'S
MAINTENANCE METHODS; AND
- IMPROVING FINANCIAL PERFORMANCE BY AIDING COMMERCIALI-
SATION MEASURES.

EXPECTED TRANSITION IMPACT

THE INVESTMENTS WILL ASSIST UZ IN EXPANDING ITS MARKET AND
COMPETING MORE EFFECTIVELY. WITH IMPROVED TRACK, UZ CAN OFFER
FASTER, MORE RELIABLE RAIL FREIGHT TRANSPORT SERVICES AT LOWER
COST; TRACK MAINTENANCE COSTS WILL BE REDUCED SUBSTANTIALLY.
THE POLICY REFORMS WILL PROMOTE IMPROVED FINANCIAL
PERFORMANCE, BETTER MANAGEMENT AND COMMERCIALISATION.

PHASING OUT THE CROSS-SUBSIDY FROM UZ'S FREIGHT SERVICES TO
COVER PASSENGER LOSSES WILL PERMIT UZ TO CONTAIN FREIGHT
TARIFFS, MAKING UKRAINE'S GOODS MORE COMPETITIVE IN THE
INTERNATIONAL MARKET PLACE. THE PROJECT WILL HELP UZ TO
DEVELOP A COMMERCIALISATION PROGRAMME, TO IMPLEMENT IT THROUGH
A ROLLING FIVE-YEAR BUSINESS PLAN, AND TO PLAN FOR THE
COMMERCIALISATION OF UZ'S NON-CORE BUSINESSES, WHICH COULD
EVENTUALLY LEAD TO PRIVATISATION.

ENVIRONMENTAL IMPACT

THE PROJECT HAS BEEN CATEGORISED AS B/0, REQUIRING AN
ENVIRONMENTAL ANALYSIS. THE INVESTMENT WAS PRECEDED BY A PRE-
INVESTMENT STUDY, WHICH DEVELOPED AN ENVIRONMENTAL ACTION PLAN
(EAP). THIS IDENTIFIED ENVIRONMENTAL ISSUES THAT MUST BE
ADDRESSED DURING PROJECT IMPLEMENTATION. DURING THE OPERATION
AND MAINTENANCE PHASE, ADEQUATE PROVISION WILL BE MADE FOR
DISPOSAL OF HAZARDOUS AND NON-HAZARDOUS SOLID WASTES, WATER
RUN-OFFS AND POSSIBLE INCREASED NOISE ALONG THE RAILWAY
CORRIDORS. AS A CONDITION OF THE EFFECTIVENESS OF THE PROJECT,
UZ WILL NEED TO APPROVE THE EAP.

TECHNICAL COOPERATION FUNDING

EU-TACIS (BANGKOK FACILITY) HAS PROVIDED EUR 500,000 AND WILL
PROVIDE AN ADDITIONAL EUR 750,000 FOR PROJECT IMPLEMENTATION.

THIS IS NOT OPEN TO U.S. FIRMS, BUT EUROPEAN SUBSIDARIES OF
U.S. FIRMS MAY BE ELIGIBLE.

MORE INFORMATION

PROJECT ENQUIRIES:

TEL: EBRD, LONDON +44 171 338 6282; FAX: +44 171 338 6102

-------------------------------------------------------------
NOTE: PROCUREMENT OPPORTUNITIES, LISTING ALL PROCUREMENT
NOTICES AND CONTRACT AWARDS IS AVAILABLE ON THE EBRD WEBSITE
WWW.EBRD.COM/WHATSNEW.

FOR ADDITIONAL INFORMATION ON THE EBRD AND PROJECT
OPPORTUNITIES, READERS ARE REFERRED TO THE FOLLOWING SOURCES:
THE U.S. NATIONAL TRADE DATA BANK (NTDB), (NTDB WEBSITE:
HTTP://STAT-USA.DOC.GOV)
TEL: +(202) 482-1986; THE ELECTRONIC BULLETIN BOARD (EBB)
OPERATED BY THE US DEPARTMENT OF COMMERCE,
TEL: +(202) 482-1986; THE EASTERN EUROPE BUSINESS INFORMATION
CENTER, (EEBIC), (EEBIC WEBSITE:
HTTP://WWW.MAC.DOC.GOV/EEBIC/CEEBIC.HTML) TEL: +(202) 482-
2645,
FAX: +(202) 482-4473, AND THE BUSINESS INFORMATION SERVICE FOR
THE NEWLY INDEPENDENT STATES, (BISNIS), (BISNIS WEBSITE:
HTTP://WWW.MAC.DOC.GOV/BISNIS)
TEL: +(202) 482-4655, FAX: +(202) 482-2293. FOR INFORMATION
ON OTHER MULTILATERAL DEVELOPMENT BANK FUNDED PROJECTS,
CONTACT THE MULTILATERAL DEVELOPMENT BANK OFFICE, US
DEPARTMENT OF COMMERCE, WASHINGTON, D.C. TEL: +(202) 482 3399.
FOR GENERAL TRADE INFORMATION CALL: 1-800-USA-TRADE.

U.S. COMMERCIAL SERVICE - EBRD CONTACT IS GENE R. HARRIS,
SENIOR COMMERCIAL OFFICER, OFFICE OF THE U.S. EXECUTIVE
DIRECTOR, EBRD, ONE EXCHANGE SQUARE, LONDON, EC2A 2EH, UNITED
KINGDOM.
TEL: 44-171-588-4027/28 OR 338-7490, FAX: 44-171-588-4026 OR
338-6487. EMAIL: HARRISG@EBRD.COM, OR MCKAINN@EBRD.COM, OR
GENE.HARRIS@MAIL.DOC.GOV
********************************************************************
Lead #23
SUBJECT: INTERNATIONAL MARKET INSIGHT (IMI): PROCUREMENT
OPPORTUNITIES, MARCH 1999, UKRAINE, SHELTER IMPLEMENTATION
PLAN

SUMMARY: THIS CABLE ANNOUNCES A TENDER FOR AN APPROVED EBRD
FUNDED PUBLIC SECTOR AND TECHNICAL ASSISTANCE PROJECT IN
UKRAINE. SHELTER IMPLEMENTATION PLAN - GENERAL PROCUREMENT
NOTICE. END SUMMARY.

NOTE: COMPLETE CONTACT INFORMATION PROVIDED AT END OF REPORT.

POST OF ORIGIN: EUROPEAN BANK FOR RECONSTRUCTION AND
DEVELOPMENT (EBRD)

COUNTRY: UNITED KINGDOM

AUTHOR: GENE R. HARRIS, SENIOR COMMERCIAL OFFICER

UKRAINE
SHELTER IMPLEMENTATION PLAN
GENERAL PROCUREMENT NOTICE

THIS NOTICE FOLLOWS THE GENERAL PROCUREMENT NOTICE FOR THIS
PROJECT PUBLISHED IN PROCUREMENT OPPORTUNITIES SUPPLEMENT
DATED FEBRUARY 1998.

NATIONAL NUCLEAR ENERGY GENERATING COMPANY - ENERGOATOM
(CLIENT) INTENDS TO USE THE PROCEEDS OF THE CHERNOBYL SHELTER
FUND FOR THE PROCUREMENT OF THE FOLLOWING GOODS, WORKS
CONTRACTS, OVER THE NEXT TWELVE MONTHS:

-COMPUTER HARDWARE AND SOFTWARE EQUIPMENT

-MANAGEMENT SUPPORT EQUIPMENT

-CIVIL ENGINEERING

-OPERATIONS AND MONITORING

-EMERGENCY SYSTEMS

-FUEL CONTAINING MATERIAL

ERIAL

- RADIATION PROTECTION AND MONITORING EQUIPMENT AND
SERVICES

- SUPPORT FACILITIES AND UTILITIES

THE PROCUREMENT OF THE ABOVE CONTRACTS HAS A TOTAL ESTIMATED
COST OF APPROXIMATELY US DOLLARS 40 MILLION EQUIVALENT.

THE PROJECT MANAGING UNIT ( PMU ) WHICH ENSURES THAT THE
SHELTER IMPLEMENTATION PLAN
( SIP ) IS COMPLETED ON TIME, WITH A BUDGET WITHIN LIMIT AND
WITHIN DEFINED QUALITY STANDARDS, WILL CONDUCT THE TENDERING
PROCESS.

TENDERING FOR THE ABOVE CONTRACTS IS EXPECTED TO BEGIN IN THE
SECOND QUARTER 1999.

CONTRACTS TO BE FINANCED WITH THE PROCEEDS OF A GRANT WILL BE
OPEN TO ELIGIBLE FIRMS UNDER THE CHERNOBYL SHELTER FUND.*

INTERESTED SUPPLIERS, CONTRACTORS AND CONSULTANTS SHOULD
CONTACT:

MR. VALENTIN KUPNY
DEPUTY GENERAL DIRECTOR, SHELTER OBJECT
CHERNOBYL NUCLEAR POWER STATION
INFORMATION CENTRE AND REPRESENTATIVE OFFICE
APT 715
26, LESYA UKRAINKA BIVD
KIEV, 252133
UKRAINE
TEL: +380 ( 44 ) 934 3922
FAX: +380 ( 44 ) 792 6204

* THE ELIGIBLE COUNTRIES AS AT 31 JANUARY 1999 ARE: AUSTRIA,
BELGIUM, CANADA, DENMARK, FINLAND, FRANCE, GERMANY, GREECE,
IRELAND, ITALY, JAPAN, KUWAIT, LUXEMBOURG, NETHERLANDS,
NORWAY, PORTUGAL, SPAIN, SWEDEN, SWITZERLAND, UK, USA, AND
EBRD'S COUNTRIES OF OPERATIONS.

-------------------------------------------------------------
NOTE: SUBSCRIPTION INFORMATION FOR EUROPEAN BANK FOR
RECONSTRUCTION AND DEVELOPMENT BANK (EBRD) PROCUREMENT
OPPORTUNITIES AND AN UPDATED LIST OF EBRD PUBLICATIONS (AND
ORDER INFORMATION) MAY BE OBTAINED BY CONTACTING THE
FOLLOWING: EBRD SUBSCRIPTION DEPARTMENT, 82-84 PECKHAM RYE,
LONDON SE15 4HB UNITED KINGDOM, TEL: 44 171 639 0333, FAX: 44
171 358 9568. EMAIL ADDRESS: PROCOPPORSUB@COMPUSERVE.COM.
(EBRD WEBSITE: HTTP://WWW.EBRD.COM)

EBRD CONTACT IS GENE R. HARRIS, SENIOR COMMERCIAL OFFICER,
OFFICE OF THE U.S. EXECUTIVE DIRECTOR, EBRD, ONE EXCHANGE
SQUARE, LONDON, EC2A 2EH, UNITED KINGDOM.
TEL: 44-171-588-4027/28 OR 338-7490, FAX: 44-171-588-4026 OR
338-6487. EMAIL: HARRISG@EBRD.COM.
*****************************************************************
Lead #24
Tashkent Airport Modernization
XXXXXXX
SUMMARY
XXXXXXX

1. TASHKENT AIRPORT, THE LARGEST INTERNATIONAL AIRPORT
IN UZBEKISTAN, IS BEING MODERNIZED STEP BY STEP. EBRD AND
KFW (OF GERMANY) ARE FINANCING A $30 MILLION PROJECT TO
RENOVATE THE MAIN TERMINAL OF THE AIRPORT. THIS IS PART
OF A LARGER $48 MILLION MODERNIZATION PROJECT AT TASHKENT
AIRPORT. RECENTLY UZBEKISTAN AIRWAYS HELD A TENDER TO
RENOVATE THE AIRPORT'S APRON AND RUNWAYS. THIS PROJECT
PRESENTS SIGNIFICANT POTENTIAL OPPORTUNITIES FOR U.S.
SUPPLIERS. CONTACT INFORMATION CAN BE FOUND IN PARA 8.
END SUMMARY.

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
2. TASHKENT AIRPORT IS A LARGEST INTERNATIONAL AIRPORT IN
UZBEKISTAN. IT PLAYS A SIGNIFICANT ROLE AS THE REGIONAL
HUB FOR MANY AIRLINES. AFTER ATTAINING INDEPENDENCE IN
1991, UZBEKISTAN STARTED PAYING ATTENTION TO ITS AIRPORTS,
WHICH FORMERLY SERVED SEVEN MILLION PASSENGERS A YEAR, BUT
NOW SERVE ONLY ABOUT ONE MILLION. CURRENT FACILITIES ARE
BELOW THE STANDARD EXPECTED BY TRAVELERS FROM OUTSIDE THE
FORMER SOVIET UNION. FOR THIS REASON, UZBEKISTAN AIRWAYS
IS ATTEMPTING TO UPGRADE EXISTING AIRPORT FACILITIES.

3. IN RECENT YEARS, SUBSTANTIAL CHANGES HAVE OCCURRED AT
TASHKENT AIRPORT, THE PRINCIPAL TOURIST AND BUSINESS
VISITOR ACCESS POINT TO UZBEKISTAN. IN 1996 CSF-THOMSON
OF FRANCE BUILT A MODERN AIR-TRAFFIC CONTROL SYSTEM AND
UZBEKISTAN AIRWAYS UPGRADED ITS ENTIRE AIR-TRAFFIC CONTROL
SYSTEM THROUGHOUT UZBEKISTAN. THE GERMAN COMPANY STRAUBER
RECONSTRUCTED BOTH MAJOR RUNWAYS AT TASHKENT AIRPORT.
BRITISH AEROSPACE HA AND GERMANY'S GTZ SERVED AS PROJECT
CONSULTANTS.

4. GERMAN KFW AND EBRD LOANED $48 MILLION FOR THE
TASHKENT AIRPORT MODERNIZATION PROJECT IN TWO STAGES. THE
FIRST STAGE, CURRENTLY UNDERWAY, IS TO MODERNIZE APRON AND
RUNWAYS. THE SECOND STAGE, WHICH WILL COST APPROXIMATELY
$30 MILLION, IS MODERNIZING THE MAIN TERMINAL BUILDING.
THE CONSULTANTS FOR THIS AIRPORT MODERNIZATION PROJECT ARE
BRITISH HALCROW AND TURKISH TEMELSU.

5. EBRD WILL PUBLISH A PRE-QUALIFICATION ANNOUNCEMENT FOR
THE GENERAL CONTRACTOR IN MARCH OF 1999. EBRD IS EXPECTED
TO COMPLETE THE PRE-QUALIFICATION PROCESS IN APRIL-MAY,
AND WINNERS WILL START WORKING ON PROCUREMENT BEFORE JUNE.
THE GENERAL CONTRACTOR WILL HANDLE TENDERS TO SUPPLY AND
INSTALL FLIGHT INFO DISPLAY SYSTEMS, BAGGAGE HANDLING,
SECURITY EQUIPMENT, LIFTS, ELEVATORS, TELEPHONE PBX
EXCHANGES, VENTILATION AND AIR-CONDITIONING SYSTEMS AND
FIRE ALARM DETECTORS. TENDER INVITATIONS WILL BE READY IN
JULY AND AWARDED IN SEPTEMBER. THE GENERAL CONTRACTOR MAY
SPLIT THE WORK IN TWO PARTS: MECHANICAL-ELECTRICAL WORKS
(APPROXIMATELY $15 MILLION) AND REFURBISHMENT OF THE
TERMINAL BUILDING.

6. THIS PROJECT PRESENTS SIGNIFICANT OPPORTUNITIES FOR
U.S. COMPANIES TO SUPPLY AND INSTALL EQUIPMENT IN THE
FOLLOWING FIELDS:

-MECHANICAL ELECTRIC EQUIPMENT (VENTILATION, AIR
CONDITIONING, HEATING, ALARMS, DETECTORS, ELEVATORS,
LIFTS);

- FLIGHT INFORMATION DISPLAY SYSTEMS;

- BAGGAGE HANDLING EQUIPMENT;

-SECURITY EQUIPMENT (X-RAY MACHINES, METAL DETECTORS,
HAND-HELD DETECTORS);

- COMMUNICATION EQUIPMENT (TELEPHONE PBX EXCHANGES).

IT MAY ALSO PRESENT CONSTRUCTION OPPORTUNITIES.

7. ASSUMING THAT WORK BEGINS IN MAY-JUNE, 1999, THE

PROJECT SHOULD BE FINISHED WITHIN THE NEXT TWENTY MONTHS.
ONE OF THE CRUCIAL ASPECTS OF THIS PROJECT IS THAT THE
AIRPORT MUST CONTINUE OPERATING WHILE THE PROJECT IS BEING
IMPLEMENTED. EVEN THOUGH THE AIRPORT HAS SEPARATE
TERMINAL FOR INTERNAL FLIGHTS (RECENTLY BUILT BY A
HUNGARIAN COMPANY), IT DOES NOT HAVE THE CAPABILITY TO
HANDLE ADDITIONAL INTERNATIONAL FLIGHTS. AS A RESULT,
AIRPORT DECIDED TO KEEP THE MAJOR INTERNATIONAL TERMINAL
OPERATIONAL AS IT IS BEING MODERNIZED.

8. CONTACT INFORMATION:

NATIONAL COMPANY "UZBEKISTAN AIRWAYS"
41 MOVAROUNAKHR STREET
TASHKENT, UZBEKISTAN
TEL: (998-71)-54-19-85
FAX: (998-71)-133-18-85
CONTACT: MR. VALENTIN GORDIENKO,
DEPUTY CHAIRMAN

XXXXXXX
COMMENT
XXXXXXX
9. POST ADVISES INTERESTED COMPANIES TO CAREFULLY MONITOR
EBRD, PUBLICATIONS ON TENDER PROCURMENTS. FOR MORE
INFORMATION, COMPANIES SHOULD ALSO CONTACT "UZBEKISTAN
AIRWAYS".
***************************************************************
Lead #25
SUBJECT: IMI: INTERNATIONAL TENDER FOR THE PURCHASE OF THE

ALMALYK HOUSEHOLD CHEMICALS PLANT

XXXXXXX
SUMMARY
XXXXXXX

1. ON MARCH 4, 1999 UZBEK NEWSPAPER "NARODNOE SLOVO"
PUBLISHED A TENDER ANNOUNCEMENT FOR THE ALMALYK HOUSEHOLD
CHEMICALS PLANT. ACCORDING TO THE STATE PROPERTY
COMMITTEE (GKI), THE INTERNATIONAL ACCOUNTING FIRM KPMG
APPRAISED THIS PROPERTY AT US$ 3 MILLION. THE BID
DEADLINE IS APRIL 3, 1999. THIS TENDER IS SIGNIFICANT
BECAUSE IT IS THE FIRST ENTERPRISE IN WHICH FOREIGN
INVESTORS ARE OFFERED 100 PERCENT OWNERSHIP. CONTACT INFO
IS GIVEN IN PARA-5. END SUMMARY.

2. AT THE END OF 1998 GOVERNMENT OF UZBEKISTAN DECIDED
TO ACCELERATE THE PRIVATIZATION PROCESS. THE GOVERNMENT
INTENDS TO SELL 565 ENTERPRISES IN 1999. THESE SALES
PROCEEDS ARE EXPECTED TO GENERATE 26.4 BILLION SOUMS
(APPROXIMATELY US $220 MILLION AT THE OFFICIAL EXCHANGE
RATE). THE ALMALYK HOUSEHOLD CHEMICALS PLANT OF IS ONE OF
69 FIRMS THE GOVERNMENT INTENDS TO SELL ALLOWING 100
PERCENT FOREIGN OWNERSHIP. ONLY PARTIAL OWNERSHIP WILL BE
OFFERED TO FOREIGN INVESTORS IN THE REMAINING 496
ENTERPRISES.

3. THE ALMALYK HOUSEHOLD CHEMICALS PRODUCES PRIMARILY
CLEANSERS (35 PERCENT) AND WASHING LIQUIDS (26 PERCENT),
AS WELL AS COSMETICS AND INSECTICIDES (18 PERCENT). THE
ALMALYK PLANT PRODUCED ITEMS WORTH 56.2 MILLION SOUMS (US$
470,000) IN 1998, A DECLINE OF 27 PERCENT COMPARED TO
1997, DUE TO INCREASED DIFFICULTIES IMPORTING RUSSIAN RAW
MATERIALS. HOWEVER, IF THE PACKAGING OF ITS PRODUCTS IS
IMPROVED, THE ALMALYK PLANT MAY HAVE THE POTENTIAL TO
COMPETE WITH WESTERN PRODUCTS AND EXPORT TO NEIGHBORING
COUNTRIES.

4. THE STATE PROPERTY COMMITTEE IS HOLDING A TENDER TO
SELL 100 PERCENT OF THE ALMALYK HOUSEHOLD CHEMICALS PLANT
TO FOREIGN INVESTORS. ACCORDING TO THE STATE PROPERTY
COMMITTEE, KPMG APPRAISES THE ALMALYK CHEMICAL PLANT AT
US$ 3 MILLION. INTERESTED FOREIGN COMPANIES SHOULD APPLY
BY APRIL 3, 1999. THE STATE PROPERTY COMMITTEE WILL GIVE
PREFERENCE TO COMPANIES WITH RELEVANT EXPERIENCE, THE
ABILITY TO ATTRACT ADDITIONAL INVESTMENT AND THE
CAPABILITY OF IMPLEMENTING THEIR PROPOSED BUSINESS PLAN.

5. ALL INQUIRIES OR COMMENTS, INCLUDING APPLICATION FORMS
FOR THE TENDER AND QUESTIONS, SHOULD BE SENT IN WRITING
TO :
MR. R. AKHUNOV, DIRECTOR GENERAL
BUREAU FOR POST-PRIVATIZATION SUPPORT
55 UZBEKISTANSKAYA AVENUE
TASHKENT, UZBEKISTAN 700008
TEL: (998-71) 139-22-23, 139-22-58
FAX: (998-71) 139-20-44.

6. U.S. COMPANIES WISHING TO PARTICIPATE IN THIS TENDER
SHOULD CONTACT THE COMMERCIAL SERVICE IN TASHKENT. THE
COMMERCIAL SERVICE, TOGETHER WITH THE AMERICAN BUSINESS
CENTER (ABC), OFFERS A WIDE RANGE OF ADVISORY SERVICES AND
LOGISTICAL SUPPORT TO ASSIST U.S. COMPANIES WITH ENTERING
THIS EMERGING MARKET. FOR ADDITIONAL INFORMATION ABOUT
HOW THE COMMERCIAL SERVICE AND ABC CAN HELP YOUR BUSINESS
OR FOR ANSWERS TO SPECIFIC QUESTIONS, PLEASE DIRECT
INQUIRIES TO:

MR. JACK TUCKER, SENIOR COMMERCIAL OFFICER
MR. KEITH L. SILVER, AMERICAN BUSINESS CENTER MANAGER
MR. MUROD MAJIDOV, COMMERCIAL ASSISTANT
TELEPHON
E: [998](71)120-67-05
FAX: [998](71)120-66-92 OR 120-66-76
E-MAIL: OFFICE(AT)ABC.FREENET.UZ

INTERNATIONAL MAILING ADDRESS: 41 BUYUK TURON STREET, 3RD
FLOOR, TASHKENT 700000 UZBEKISTAN
U.S. MAILING ADDRESS: U.S. EMBASSY TASHKENT - COMMERCIAL
SERVICE/ABC, U.S. DEPARTMENT OF STATE, WASHINGTON, DC,
20521-7110

FOR FURTHER UPDATES AND FOR GENERAL INFORMATION ABOUT
DOING BUSINESS IN UZBEKISTAN OR OTHER PARTS OF THE FORMER
SOVIET UNION, LOG ONTO THE WEBSITE OF THE U.S. DEPARTMENT
OF COMMERCE, BUSINESS INFORMATION SERVICE FOR THE NEWLY
INDEPENDENT STATES (BISNIS) AT:
HTTP//WWW.MAC.DOC.GOV/BISNIS.

This report is provided courtesy of the Business Information Service for the Newly Independent States (BISNIS)