Describes how major projects are secured and financed. Explains activities of the multilateral development banks in and other aid-funded projects.
Selling to the Government
Many governments finance public works projects with loans from multilateral development banks. Please refer to the “Project Financing” Section in “Trade and Project Financing” for more information.
Turkmenistan’s economy is dominated by state-owned entities. In 2002, the country introduced unified tender rules for all public entities. The rules apply to procurement of goods and services, including construction projects. The tender rules permit closed tenders. In 2014, Turkmenistan adopted the Law on Tenders, which seeks to develop competition among bidders, ensure transparency and effective implementation of tender procedures, and compliance with international standards. Turkmenistan does not have a centralized procurement body, and individual government agencies and state-owned companies conduct their own tenders. Comparable goods are often purchased at different prices by different organizations. Tender processes are not transparent, and falsification of bids and cancellation of tender results can and do occur. Companies with a strong market presence or a good relationship with the government have a higher chance of being selected. Tender winners receive bid approval by the State Commodity and Raw Materials Exchange. Most open tenders are announced only in local outlets. In the oil and gas sector tenders are typically announced online at: http://www.oilgas.gov.tm/en/. Turkmenistan’s National Program for Socio-Economic Development for the period 2011-2030 and its Oil and Gas Industry Development Program provide a general idea of Turkmenistan’s strategic development plans for specific industries.
U.S. companies bidding on government tenders may also qualify for U.S. Government advocacy. A unit of the U.S. Commerce Department’s International Trade Administration, the Advocacy Center, coordinates U.S. Government interagency advocacy efforts on behalf of U.S. exporters bidding on public sector contracts with international governments and government agencies. The Advocacy Center works closely with our network of the U.S. Commercial Service worldwide and inter-agency partners to ensure that exporters of U.S. products and services have the best possible chance of winning government contracts. Advocacy assistance can take many forms but often involves the U.S. Embassy or other U.S. Government agencies expressing support for the U.S. bidders directly to the foreign government. Consult Advocacy for Foreign Government Contracts for additional information.
Financing of Projects
Multilateral Development Banks and Financing Government Sales
Price, payment terms, and financing can be a significant factor in winning a government contract. Many governments finance public works projects through borrowing from the Multilateral Development Banks (MDB). A helpful guide for working with the MDBs is the Guide to Doing Business with the Multilateral Development Banks. The U.S. Department of Commerce’s (USDOC) International Trade Administration (ITA) has a Foreign Commercial Service Officer stationed at each of the five different Multilateral Development Banks (MDBs): the African Development Bank; the Asian Development Bank; the European Bank for Reconstruction and Development; the Inter-American Development Bank; and the World Bank.
Learn more by contacting the:
- Commercial Liaison Office to the Asian Development Bank
- Commercial Liaison Office to the European Bank for Reconstruction and Development
- Commercial Liaison Office to the World Bank
Other Financing Web Resources
- Export-Import Bank of the United States (https://www.exim.gov/)
- Country Limitation Schedule: https://www.exim.gov/tools-for-exporters/country-limitation-schedule
- Overseas Private Investment Corporation (OPIC) (https://www.opic.gov/)
- U.S. Trade and Development Agency (www.ustda.gov)
- SBA’s Office of International Trade (https://www.sba.gov/offices/headquarters/oit)
- USDA Commodity Credit Corporation (https://www.usda.gov/ccc)
- U.S. Agency for International Development (www.usaid.gov)
- Asian Development Bank in Turkmenistan (https://www.adb.org/countries/turkmenistan/main)
- European Bank for Reconstruction and Development (EBRD) in Turkmenistan (https://www.ebrd.com/turkmenistan.html)
- World Bank in Turkmenistan (http://www.worldbank.org/en/country/turkmenistan)