April 1, 2022

Accelerating the process of privatization of state assets

In order to speed up the process of privatization and reduce participation of the state in the private sector of the economy on March 18, 2022 , Decree of the President of the Republic of Uzbekistan No. PP-168 “On additional measures to further reduction of state participation in the economy and acceleration of  privatization” (hereinafter “PP-168”) was adopted. According to PP-168, the lists of privatized blocks of shares (participatory interest) in the authorized capital of business entities, as well as real estate objects sold at public auctions, were approved.

Pursuant to PP-168:

State shares in several business communities will be transferred to the private sector. Moreover more than 1,500 real estate objects (enterprises of the oil and gas network, commercial banks, enterprises in the field of information technology, etc.) would be exhibited for public auction.

In addition, by the end of this year, more than 2050 hectares of land (vacant lands) will be put up in the automated information system- “Yerelektron” for online auctions on the basis of ownership.

Therefore, empty facilities that have not been used for more than three months and belong to the  ministries, departments and state bodies would be exhibited for an auction for rent.

Funds that were earned from the sale of state-owned real estate with an area of ​​up to 10,000 square meters should be distributed to the budget of the Republic of Karakalpakstan, to the budgets of local regions and the city of Tashkent, to the budgets of districts (cities) in equal shares.

In addition, it was instructed to attract international consulting, audit and investment consultants, investment banks or other specialized companies to improve operational efficiency, reconstruct the debt of JSC ‘Uzagroleasing’ and included organizations until April 1 of current year.

Moreover, during privatization, the method of public invitation to negotiate is being introduced. At the same time, the list of state assets privatized through the involvement of professional organizations is approved by the State Tender Commission.

Investor offering more than 10 million US dollars cost for assets must be accepted directly by the involved professional organizations, without the participation of the Agency itself or other government bodies. Subsidiaries of international audit companies operating in Uzbekistan do not require an examination of the reliability of assessment reports.

However, while selling the state assets paying in installments, if the amount of the initial payment is less than 35 percent, the rest of the amount is charged with the the annual policy rate of the Central Bank.

Until July 1, 2022, the flour mills of Uzdonmakhsulot JSC has to be put up for auction.

Until April 1, 2023, an assessment and implementation of Universal Mobile Systems LLC has to be carried out.