ADFD, Turkmenistan to boost economic relations

ADFD, Turkmenistan to boost economic relations

ABU DHABI / WAM

Abu Dhabi Fund for Development (ADFD) on Wednesday signed three memoranda of understanding (MoUs) with the Government of Turkmenistan aimed at strengthening economic and development cooperation through investment in vital sectors that would benefit economies of both countries. The first MoU involved the establishment of an investment company in Turkmenistan with a target capital of AED370 million (US$100 million), whereby investment opportunities and development projects are to be presented for ADFD's considerations. In the initial stage, ADFD and Turkmenistan will contribute AED58.7 million (US$16 million) for investment in vital 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 AED642.7 million ($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. The memoranda were signed