Abu Dhabi Fund for Development (ADFD) and Government of Turkmenistan on Wednesday signed three memoranda of understanding (MoUs) to invest in vital sectors of both countries.
The memoranda were signed by ADFD Director-General Mohamed Saif Al Suwaidi and Chairman of the Board of the State Bank for Foreign Economic Affairs of Turkmenistan Rahimberdi Jepbarov in Abu Dhabi, the UAE’s state media reports, the Fund said in its Wednesday press release. Deputy Minister of Foreign Affairs of Turkmenistan Berdiniyaz Matiyev, Ambassador of the UAE to Turkmenistan Ahmed Alhay Alhameli, Ambassador of Turkmenistan to the UAE Serdarmammet Garajayev and several other officials from both sides attended the signing ceremony.
“The memoranda of understanding reflect ADFD’s keenness to expand its investment and economic partnerships with the government of Turkmenistan,” Al Suwaidi said in the statement. “They also represent a quantum leap in the economic cooperation between the UAE and Turkmenistan”.
The first MoU involves the establishment of a joint investment company in Turkmenistan with a target capital of 370 million dirhams ($100 million).
In the initial stage, ADFD and Turkmenistan will contribute 58.7 million dirhams ($16 million) for investment in sectors such as energy, agriculture, tourism and industry. This amount will be shared equally by the two parties. According to the agreement, the Turkmen government will present project proposals to ADFD for financing, after which the Fund will take its decision based on its feasibility assessments.
The second MoU provides for studying the possibility of investing in a project to establish a chemical industry complex in Turkmenistan for 642.7 million dirhams ($175 million) to produce polyvinyl acetate.
The third MoU creates the possibility to study opportunities to finance infrastructure projects in various sectors, including renewable energy and air transport, thereby promote cooperation between ADFD and Turkmenistan.
ADFD, which started operations in Turkmenistan in 1999, has financed the rehabilitation of the Archman Hospital and establishment of a specialty hospital in Ashgabat at a total cost of about 182 million dirhams.