WELCOME TO IWPR'S REPORTING CENTRAL ASIA, No. 568 Part 2, March 6, 2009 QUESTIONS OVER MOSCOWS ROLE IN KYRGYZ POWER PROJECTS Russian money could mean salvation for Kyrgyz hydropower industry, but some analysts fear country will lose control over its own water resources. By Chynara Karimova and Estelle Erimova in Bishkek
TURKMEN LOOK FORWARD TO BETTER LABOUR LAWS Changes about to go before parliament should provide job security for many who have gone for years with no permanent contract. By IWPR staff in Central Asia TAJIKISTAN: CONDITIONAL WELCOME FOR NEW ACCOUNTABILITY POLICY Some fear that new rules designed to strengthen medias voice will end up muffling criticism. By Daler Gufronov in Dushanbe **** NEW ************************************************************************************ BECOME A FAN OF IWPR ON FACEBOOK: http://iwpr.net/facebook **** IWPR RESOURCES ****************************************************************** CENTRAL ASIA RADIO: http://iwpr.net/centralasiaradio CENTRAL ASIA PROGRAMME HOME: http://iwpr.net/centralasia IWPR COMMENT: http://iwpr.net/comment SAHAR JOURNALISTS ASSISTANCE FUND: http://iwpr.net/sahar **** www.iwpr.net ******************************************************************** REPORTING CENTRAL ASIA RSS: http://www.iwpr.net/en/rca/rss.xml RECEIVE FROM IWPR: Readers are urged to subscribe to IWPR's full range of free electronic publications at: http://iwpr.net/subscribe GIVE TO IWPR: IWPR is wholly dependent upon grants and donations. For more information about how you can support IWPR go to: http://iwpr.net/donate **** www.iwpr.net ******************************************************************** QUESTIONS OVER MOSCOWS ROLE IN KYRGYZ POWER PROJECTS Russian money could mean salvation for Kyrgyz hydropower industry, but some analysts fear country will lose control over its own water resources. By Chynara Karimova and Estelle Erimova in Bishkek Russias pledge to inject massive funds into the Kyrgyz power industry has raised hopes that the Central Asian state will one day be free of its chronic energy shortages. But some analysts worry that Kyrgyzstan could be giving away far too much management control over a crucial energy project. During a visit to Moscow in February, Kyrgyz president Kurmanbek Bakiev signed a deal under which the Russian state is to invest 1.7 billion US dollars in a major hydroelectric scheme called Kambarata-1. Once completed, Kambarata-1 and the related Kambarata-2 plant, which were originally begun in 1986 but halted due to lack of funds, will generate 6.1 billion kilowatt-hours of electricity a year. For comparison, the existing Toktogul scheme, which lies further downstream of Kambarata on the Naryn river, accounts for up to 90 per cent of total power generation in Kyrgyzstan, around 15 billion Kw/hours annually. The Kambarata scheme is intended to produce enough energy to give Kyrgyzstan a surplus and turn it into a major exporter of electricity. The money for the dam project is only part of a larger package that includes a 300-million-dollar loan to support the Kyrgyz governments budget, additional financial assistance worth 150 million dollars and a write-off of 193 million dollars in sovereign debt, granted in exchange for a 48 per cent stake in a defence plant producing components for torpedoes. Speaking on February 5, two days after the deal was signed, Kyrgyz prime minister Igor Chudinov said the investment would be assigned to a soon-to-be-created entity owned equally by Inter Rao UES (United Energy Systems of Russia) and the Kyrgyz state-owned Elektricheskie Stantsii. Kubanychbek Isabekov, the deputy speaker of Kyrgyzstans parliament, welcomed the deal as a much-needed windfall at a time when the country is suffering economic problems. We could never have dreamed of getting two billion [dollars; total financial package] during the global financial crisis. New jobs will be created and tax revenue earned. Once completed, he added, Kambarata-1 will transform the country into a major regional player. Kyrgyzstan will acquire strategic leverage on water issues, he said. According to Kyrgyz finance minister Marat Sultanov, the Russians, too, have much at stake in the deal. Some of the surplus electricity generated by Kambarata-1 can be exported to Russia, and Inter RAO UES will earn income from all sales. Given that in the long term, Russias vast oil and gas reserves will begin to wane, Sultanov said, By supporting Kyrgyzstan, Russia is helping itself. Some analysts are concerned both by the terms of the deal and its viability. Ernest Karybekov, who heads the Bishkek-based Institute for Water Usage and Resources Study, said Moscows role was ambiguous since it owns, through the UES firm, half of the company to which it is giving money. Further, he says, It needs to be clarified whether the 1.7 billion dollars is a loan or an investment. As Karybekov noted, the terms under which the money is provided remain unclear. Most sources have described it as investment, but a Kyrgyz foreign ministry source told IWPR that this might not be the case. No one really possesses accurate information about the agreement, and thats why there are various interpretations of it. Everyone is discussing it sagaciously but avoiding the most important question whether its a loan or investment. As far as I know that question remains open for the moment, said the source, speaking on condition of anonymity. I would say the money Russia has granted us is a loan because we are going to have to pay interest on it, which wouldnt be the case if it were an investment. Some politicians and analysts warn that the arrangements for the joint Kambarata company leave scope for ownership to slip away from Kyrgyzstan entirely. Muratbek Juraev, a member of parliament representing the opposition Social Democratic Party, says there is nothing to stop the authorities selling of the states 50 per cent share later on, after which the stock might find its way into Russian hands. Economist Jyldyz Sarybaeva pointed to potential pitfalls in the management structure of the joint company. The firm is to be governed by a board of five directors where Russian representatives will outnumber those from Kyrgyzstan three to two. The balance on the executive management team will be the other way round. The Kyrgyz prime minister has insisted there will be no conflict between these two bodies. The board of directors has the authority to veto decisions taken by the managers, but Chudinov said what was important was that the latter was dominated by Kyrgyzstan nationals, as its role includes holding tenders to contract out work. Sarybaeva, however, says that under Kyrgyz law it is the board of directors that counts, and there was a risk that when the big decisions are taken, it does not take Kyrgyzstans interests into account. Other objections to Russian involvement in the hydroelectric project concern the wider regional context. Kyrgyzstans large neighbour Uzbekistan lies downstream on the Syr Darya, the major waterway of which the Naryn is a major tributary. In recent years, the Uzbeks have consistently opposed Kyrgyz dam projects and similar ones on the Amu Darya in Tajikistan. Based on the experience of existing hydroelectric schemes such as the Toktogul dam that also lies on the Naryn, they fear that further restrictions to the natural water flow will dangerously reduce river levels, and deprive them of vital irrigation in summer as the Kyrgyz and Tajiks store up water to generate power over the winter. Until recently, the Russian government appeared to favour support for Tajik and Kyrgyz dam projects over Uzbekistans interests. In January, however, President Dmitry Medvedov said during a trip to Tashkent that Russian-led projects to build hydroelectric power stations in the region would take into account the interests of all Central Asian states, not just the beneficiary countries. Analysts argued that wider concerns over Tashkents ambitions to rebuild ties with the West frozen after the Andijan violence of 2005 had led Moscow to become more sensitive to Uzbek concerns about energy and water issues. (See Russian Leader Tries to Keep Uzbeks on Side , RCA No. 564, 30-Jan-09.) According to Bishkek-based political analyst Valentin Bogatyrev, Russias apparent shift in position suggests it is a bad idea for Kyrgyzstan to place the Kambarata project in Russian hands. If the aim is to delay the process, the project might take five or six years. In the meantime everyone will be happy the Kyrgyz authorities [since the project is formally under way], the Uzbeks and the Russians, he said. It would have been preferable not to hand over control of Kyrgyz energy resources to any one government, regardless of which country it is, Russia, the United States, Kazakstan or China. Experts differ on just how important Kambarata is in the sequence of hydropower schemes that affect water flows along the Syr Darya and hence to Uzbekistan. It is the Toktogul power station [downstream of Kambarata] that will regulate water distribution in the region for many years to come, said energy expert Raimbek Mamyrov. The important thing is that it remains in our hands. Juraev disagreed, saying, Kambarata-1 will be built close to the source of the Naryn . Its even possible that Toktogul [reservoir] will be left without an inflow of water.. Karybekov said it was unlikely that the two Kambarata stations, once completed, would affect flows into the Toktogul reservoir, but said it was essential that the details of how the various schemes will operate were discussed and agreed by the Central Asian governments involved, and ratified by their parliaments. Chynara Karimova and Estelle Erimova are pseudonyms for reporters working in Kyrgyzstan. TURKMEN LOOK FORWARD TO BETTER LABOUR LAWS Changes about to go before parliament should provide job security for many who have gone for years with no permanent contract. By IWPR staff in Central Asia People in Turkmenistan are eagerly awaiting changes to the law limiting the widespread practice of hiring employees on short-term contracts that leave them vulnerable to summary dismissal. A source in the Turkmen parliament has confirmed that a revised version of the labour code is ready for approval. He explained that the amendments will limit the use of short-term contracts in the public sector to certain categories of civil servant, while all others have to be offered permanent posts. The new labour code will protect the interests of employees, said a human rights activist who wished to remain anonymous. We are looking forward to it. The new legislation should put an end to the widespread practice in both the public and private sectors of keeping the number of full-time staff to a minimum. Employers have had a lot of incentives for doing so short-term contracts work out cheaper, and temporary staff are more compliant out of fear of not having their contracts renewed. It has been common practice to force staff member originally employed on permanent basis to switch to short-term contracts. In addition, unscrupulous employers have been known to throw a staff member out and then offer the position to someone willing to pay bribe to get the job. It is unclear whether private-sector firms like construction businesses, which are by nature seasonal, will be required to offer continuing contracts. But private employers do have one major advantage over the state in that they pay more, which may offset their workers concerns about job security. Other new provisions in the labour law include longer annual leave for some employers, and the facility to transfer benefit payments to a wider circle of relative if a familys provider dies. The existing labour law, which dates from 1993, provides for permanent and short-term posts. The former includes benefits such as three months redundancy pay and a two-month notice period. Short-term contracts are supposed to apply to temporary posts lasting a maximum of three years, but in practice they have been used for continuing positions, by renewing them periodically. Since the 1993 law did not set any minimum period, many employers have offered contracts lasting between one and six months, with one year a rarity. A lawyer working with a local non-government group said there were no clear guidelines governing temporary contracts and many employers interpreted them at their own discretion. He said his organisation received many requests for help, but was unable to do much because of the ambiguity of the current law. Lawyers from our organisation are unable to protect people from arbitrary rules made up by managers, and this is a situation which has existed since 1993, he said. According to a commentator based in northern Turkmenistan, the legislation has allowed managers to exploit their staff ruthlessly, for example making them work ten or 12 hours without a break, work over the weekend and holidays for no extra pay, and sending them off to pick cotton for a couple of months in the year during harvest season. Any complaints are dealt with by terminating the employees contract. The current contactual system has become a legalised form of summary rule by management, said a gas industry official. An analyst based in the capital Ashgabat summed up the situation as true slavery and dependence on ones employer. The lack of job security is demoralising for professionals and manual workers alike. The current conditions leave us all without any rights, said a doctor in Ashgabat. The imperfect nature of the contractual system means its easy to sack people for the smallest of misdemeanours. A welfare ministry employee added, The anxiety created by constant uncertainty has made for a demoralising atmosphere in companies and organisations. How can you work under circumstances where youre constantly on your guard, where you can lose your job just for a minor reprimand? A street cleaner said she was always in fear of losing her job as she had been on one- or two-month contracts for the last several years. Its a headache every time are they going to extend my contract or not? I can hardly hold back from speaking out about this iniquity, she said. An employee at Turkmenistans state broadcasting company said she and her colleagues some of whom used to be permanent get their contracts renewed every three months. She believes managers play the system to vacate posts and then demand bribes from applicants. Management benefits from pushing people out of their jobs in this way, she said. If you want to become a video engineer, for example, you pay a bribe of 750 dollars. In other cases, the temporary nature of employment allows people to be dismissed if they are deemed to be not entirely loyal to the regime. In one case, the editor of a state newspaper reportedly terminated several of his staffs contracts because the security service had identified them as politically unreliable. Since coming to power two years ago, President Gurbanguly Berdymuhammedov has instituted a number of social-sector reforms, of which this is the latest. Judging from the responses of people interviewed for this report, the move if it is formally approved will be a popular one. (The names of interviewees have been withheld out of concerns for their security.) TAJIKISTAN: CONDITIONAL WELCOME FOR NEW ACCOUNTABILITY POLICY Some fear that new rules designed to strengthen medias voice will end up muffling criticism. By Daler Gufronov in Dushanbe Journalists in Tajikistan welcomed a presidential decree last month obliging officials to respond to media criticism of their actions. But some in the media community are voicing concern that the measure will have the opposite effect, making journalists fearful of saying anything that might embarrass officials and prompt them to retaliate. The decree, signed by President Imomali Rahmon on February 7, requires cabinet ministers and the heads of government agencies, state enterprises and institutions, and local government bodies to take immediate and specific measures in response to complaints about them printed in the media. Officials who are criticised in the media must respond to any complaints about them, and then inform both the presidents office and the media outlet concerned of any remedial action they have taken, within a set period of time. A high-ranking official from the presidential administration has been appointed to monitor the way the new rules are put into practice. Rahmons decree reinforces existing legislation on handling complaints from the public, which specifies that these must be dealt with within a month if an investigation is required, or two weeks if none is necessary. At a roundtable with media representatives following the announcement of the presidential order, the head of Rahmonovs information department Saidali Siddikov said officials who failed to respond would be answerable under the existing law, although he did not say what penalties would be applied. Many hope the new requirements placed on officials will lead to greater accountability in government. Its very good that all officials have been placed under an obligation to pay attention to critical articles in the Tajik media, to react to them, and to take action and fix things where necessary, Umid Babakhanov, the head of the Asia Plus media group, told IWPR. On the other hand, it naturally places a greater responsibility on us journalists [to get things right]. This decree doesnt open the way to unbridled abuse or unfounded criticism of every single official. The presidential order urges journalists to ensure their reporting is accurate, and as Babakhonov and others note, the media themselves will be under greater scrutiny than ever before. Political analyst Abdullo Rahnamo praised the initiative as an acknowledgement of the influence the media could exert. But he added that the fact a presidential decree was needed to force officials to respond to criticism was a sign that this influence was currently limited. In other countries, he said, officials sometimes resign after the media uncover wrongdoing. This is currently inconceivable in Tajikistan, since many officials simply do not take the media seriously. Some journalists and media-watchers are concerned that officials might seek to launch preemptive attacks on their critics by seeking prosecutions under libel legislation. Such prosecutions have always taken place, but the tendency could be exacerbated now that officials are to be put on the spot. Tajikistan continues to list defamation as an offence under criminal law as well as making it actionable under the civil code, meaning that anyone found guilty can face up to two years in jail or a fine of up to 17,000 US dollars. Libel is covered by two articles in the Criminal Code relating to the dissemination of malicious and false information and to reputational damage. In addition, Tajik law contains separate provisions that deal more seriously with the defamation of senior officials. A conviction for libelling the president in the media can lead to a five-year sentence or a hefty fine, while anyone who insults a government official in a public manner can find themselves paying a fine of 34,000 dollars or spending two years in jail. Khurshed Atovulloev, the head of the Centre for Investigative Journalism, said officials especially in local government and in the security services are highly sensitive to criticism and quick to push for legal action. I think that in many cases local authorities, the police, the interior ministry and the security service will react to criticism of their work in bringing libel charges under the Criminal Code, he said. As long as these articles exist in the criminal code, they will be used to bring criminal cases against the media for critical reporting. The head of the National Association of Independent Media in Tajikistan, Nuriddin Karshiboev, agreed that current libel laws would reduce the chances of the new decree being a success. As long as libel remains a criminal offence, this decree will lead to more legal cases against media outlets and journalists, and will have a negative impact on freedom of expression, he said. Karshiboev explained that it was much harder to contest libel in the criminal courts than in a civil case, because the defendant is up against the full weight of the state. Of course, legal cases in civilised countries are a normal occurrence, but under a criminal prosecution the burden of truth becomes more difficult, he said. The effect of the new decree might be to curb rather than encourage frank reporting, as journalists might think twice before writing a critical article that goads an official into seeking a prosecution. The result would be greater self-censorship and less critical reporting, said Karshiboev. Khurshedi Atovullo, editor-in-chief of the newspaper Faraj, agrees that libel issues will constrain the effectiveness of the presidents directive. Despite his concerns, Atovullo has introduced a new column where readers complaints about the government will be posted. At the same time, he is hiring a staff lawyer to fight any future libel actions brought against the paper. Daler Gufronov is a journalist with the Asia Plus newspaper. **** www.iwpr.net ******************************************************************** REPORTING CENTRAL ASIA provides the international community with a unique insiders' perspective on the region. Using our network of local journalists, the service publishes news and analysis from across Central Asia on a weekly basis. The service forms part of IWPR's Central Asia Project based in Almaty, Bishkek, Tashkent and London, which supports media development and encourages better local and international understanding of the region. IWPR's Reporting Central Asia is supported by the UK Community Fund. The service is published online in English and Russian. The opinions expressed in Reporting Central Asia are those of the authors and do not necessarily represent those of the publication or of IWPR. REPORTING CENTRAL ASIA: Editor-in-Chief: Anthony Borden; Managing Editor: Yigal Chazan; Senior Editor and Acting Central Asia Director: John MacLeod; Editor: Caroline Tosh; Central Asia Editor: Saule Mukhametrakhimova. IWPR PROJECT DEVELOPMENT AND SUPPORT: Executive Director: Anthony Borden; Chief Programme Officer: Mike Day. **** www.iwpr.net ******************************************************************** IWPR is an international network of four organisations which are governed by boards of senior journalists, peace-building experts, regional specialists and business professionals. IWPR builds democracy at the frontlines of conflict and change through the power of professional journalism. IWPR programmes provide intensive hands-on training, extensive reporting and publishing, and ambitious initiatives to build the capacity of local media. Supporting peace-building, development and the rule of law, IWPR gives responsible local media a voice. IWPR - Africa, P.O. Box 3317, Johannesburg 2121 Tel: +2 711 268 6077 IWPR - Europe, 48 Grays Inn Road, London WC1X 8LT, UK Tel: +44 20 7831 1030 IWPR United States, 1325 G Street, NW, Suite 500, Washington, DC 20005, United States Tel: +1 202 449 7717 1515 Broadway, 11th Floor, New York, New York 10036, United States Tel: +1 202 903 1073 Stichting IWPR Nederland, Eisenhowerlaan 77 K, 2517 KK Den Haag, The Netherlands Tel: +31 70 338 9016 For further details on this project and other information services and media programmes, go to: www.iwpr.net ISSN: 1477-7924 Copyright © 2009 The Institute for War & Peace Reporting **** www.iwpr.net ******************************************************************** If you wish to change your subscription details or unsubscribe please go to: http://www.iwpr.net/index.php?apc_state=henh&s=s&m=p
