October 29, 2020

Privatization of state assets and property

In order to improve competitiveness and create more opportunities for private capital, Presidential Decree No. UP-6096 dated 28.10.20 was adopted.

In particular, the list of large state-owned companies that are subject to transformation, the list of companies with the participation of the State, in which corporate governance and financial audit are implemented and operational efficiency is improved, has been approved.

Moreover, the list of state assets and real estate that will be sold to individuals through public auctions, as well as enterprises whose state-owned shares are sold to the private sector through public auctions, has been approved.

With the entry into force of the Decree, state objects will now be put up for public auction at the starting price of “1 soum”, the practice of “zero” purchase price is canceled.

State unitary enterprises are reorganized into business entities with the sale of their state share.

Buyers of state assets will be able to make payments in installments. Also, when buying a state share on the condition of installments, the buyer, until full payment, will be issued a certificate of ownership, but without the right of disposal. Moreover, when buying state-owned real estate, the buyer, before making the entire amount of payment for it, will receive a state order for ownership, but also without the right of disposal.

Public auctions held on the unified electronic trading platform “E-ijro auksion” should be transformed as follows to ensure their transparency:

• by January 1, 2021, a unified procedure for the unification of trading procedures on a single electronic trading platform will be approved and improved software integrated with government agencies will be launched on its basis;

• from January 1, 2021, the results of all auctions will be processed using a QR-code;

• repeated auctions will be held for the sale of real estate objects of state ownership and state-owned participatory interest at a frequency of once every 10 calendar days;

•  acceptance of buyers’ offers will start from the moment the lots are announced at the auction;

• purchase and sale agreements will be concluded with a single participant if the application made in accordance with the conditions for the sale of state assets is submitted by only one bidder, with the exception of the state-owned participatory interest and real estate objects of state property that are put up for sale at the starting price of “1 UZ Soum”.