US embassy cable - 05ANKARA1039

UNCLAS ANKARA 001039 
 
SIPDIS 
 
USDOE FOR CHUCK WASHINGTON AND ROBERT DIXON 
USDOC FOR 4212/ITA/MAC/OEURA/CPD/DDEFALCO 
 
E.O. 12958: N/A 
TAGS: ENRG, EPET, TU 
SUBJECT: TURKEY-U.S. ENERGY DIALOGUE POTENTIAL NEXT STEP 
 
REF: ANKARA 886 
 
1.  SUMMARY: Turkey Energy Deputy Under Secretary Selahattin 
Cimen looks to DOE for an invitation and potential dates to 
send a Turkish team of officials and experts to the U.S.  He 
said Turkey was interested in joining the Hydrogen 
partnership (IPHE).  End Summary. 
 
Proposal to Send a Turkish Team to the U.S. 
------------------------------------------- 
 
2.  In a February 23 meeting with Energy Officer, Energy 
Deputy Under Secretary Selahattin Cimen expressed interest in 
organizing a team of 5-6 Turkish officials and experts to 
travel to the U.S.  He said that with the new Secretary of 
Energy in place he was eager to move forward with the idea, 
hoping to receive an official invitation and proposal of 
dates from DOE.  Cimen envisioned himself leading the team, 
consisting of experts and high level officials, with the aim 
of exchanging knowledge and experience.  The team would also 
be empowered to reach concrete agreements with American 
counterparts.  He said he had spoken with a number if 
potential participants: 
 
-Director General of the Electric Power Resources Survey and 
Development Administration (EIEI) - (for energy efficiency 
issues). 
-Director of the new Boron Research Institute (Note: Turkey 
holds 64 % of the world's reserves of boron, which has 
applications in energy storage and fuel batteries and 
potential applications in the hydrogen economy. End note.) 
-Expert from Turkey Science and Research Center (TUBITAK). 
-a few other experts, including potentially one mining expert. 
 
Interested in Hydrogen Partnership 
---------------------------------- 
 
3.  Cimen said that Turkey was interested in pursuing 
membership in the International Partnership for the Hydrogen 
Economy (IPHE).  He was interested in more information on 
joining and membership process, road map, and expectations. 
 
Progress on Liberalization in Spite of Delays 
--------------------------------------------- 
 
4.  Cimen outlined what he described as Turkey's steady 
progress on energy sector liberalization.  While noting some 
inevitable delays, he underlined the importance of concrete 
steps taken and the private sector's continuing interest. 
For example, he expected that electricity distribution 
privatization tenders would be delayed by a few months to 
June or July to give the GOT time to finalize decisions and 
underlying legislation on privatization methodology.  He said 
the World Bank had offered a useful compromise between pure 
asset sale (supported by the Energy Ministry) and modified 
Transfer of Operating Rights (supported by the Privatization 
Authority), taking into account potential investor views. 
Cimen said that privatization of electricity generation 
capacity would follow a parallel process to provide for new 
investment needed to bring on new capacity in 2009-2010. 
Cimen emphasized that the GOT would take into account both 
new private investment needs while working with existing 
investors benefiting from government guaranteed returns (see 
Reftel for update of BOT issue).  He also noted that the 
Energy regulatory body (EMRA) was spearheading privatization 
of natural gas distribution.  Cimen stated that the tender 
for transfer of BOTAS gas import contracts had been delayed, 
but there was significant interest. 
EDELMAN