Abu Dhabi Fund for Development (ADFD) on Wednesday signed three memoranda of understanding (MoU) with a combined value of $276 million with Turkmenistan to investment in vital sectors of both countries.
“The memoranda of understanding reflect ADFD’s keenness to expand its investment and economic partnerships with the government of Turkmenistan,” Mohamed Saif Al Suwaidi, Director General of the fund said. “They also represent a quantum leap in the economic cooperation between the UAE and Turkmenistan”.
The first MoU involves the setting up of a joint investment company in Turkmenistan with a target capital of 370 million dirhams ($100 million), the fund said in a statement Wednesday.
In the initial stage, ADFD and Turkmenistan will contribute 58.7 million dirhams 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 to produce polyvinyl acetate.
The third agreement 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 Ashkhabad at a total cost of about AED 182 million.
(Writing by Brinda Darasha; editing by Daniel Luiz)
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