New valuation businesses emerge in Turkmenistan

Managers of the newly-emerged ”Maslahat Hyzmat” valuation company evaluating real estate property (Photo: Deloitte Consulting LLP)

Turkmenistan develops its valuation market with help from USAID

Challenge: The absence of quality appraisal services and the lack of a defined regulatory structure made it nearly impossible to get fair and accurate appraisals of real estate, residential and commercial property, movable objects, and businesses in Turkmenistan. The need for a sound valuation system was obvious, yet the valuation market was almost non-existent until mid-2011, with only one company offering appraisal services. This situation was an obstacle for the country’s transition to a market economy, as well as for private sector development.

Initiative: USAID helped Turkmenistan address this problem, assisting in the development of the country’s national valuation system. USAID promoted valuation reforms and sponsored a series of valuation trainings for 60 individuals in partnership with a local public association and relevant government stakeholders. In particular, USAID was involved in revising the country’s draft law on valuation activity, proposing appropriate improvements to align it with international best practice. In May 2011, USAID sponsored a week-long study tour to Kazakhstan for private sector valuation specialists from Turkmenistan and today, continues to provide ongoing support through the delivery of specialized valuation trainings. In addition, USAID supported the development of valuation course curriculum and materials, which are now a core component of the ongoing capacity building program and being used by local training academies, such as the School of Economy and Business.

Result: As a result of USAID support, Turkmenistan’s valuation market has experienced rapid growth. The valuation law, which USAID made significant contributions, was adopted in August 2011, opening the door for the development of the appraisal market. Over 20 graduates of USAID-sponsored trainings are now actively engaged in the valuation market as trainers and experts. In 2012 alone, graduates of these programs have established five new valuation companies, promoting competition in a growing market.