President signs law “On the privatization of state property”

On February 14, Shavkat Mirziyoyev signed the law “On the privatization of state property.” The document was published by UzA.

The document defines the principles and procedure for the sale of state property to individuals and non-state entities. The State Assets Management Agency (UzSAMA) is appointed responsible for this process.

The objects of privatization include real estate, state shares (shares, block of shares) in business companies, as well as state unitary enterprises and institutions. An object can be privatized either completely or partially (except for objects not subject to privatization).

Privatization can be carried out in the following ways:

•  auction;
•  competitive bidding;
•  public invitation to negotiations;
•  competitive dialogue;
•  exchange trading (for blocks of shares);
•  inclusion of an object as a state share in the authorized capital of an enterprise (JSC, LLC, State Unitary Enterprise, State Enterprise);
•  inclusion of a property complex (SUE) in the authorized capital of a JSC or LLC;
•  transfer for rent with further privatization.

The specific method is determined by the UzSAMA and its regional departments. They also conduct an inventory of objects, determine the starting price based on the report of an independent appraiser, and also work to increase investment attractiveness.

The purchase of state property is secured:

•  in the case of real estate - a purchase and sale agreement between AUGA, the buyer and the balance holder;
•  in the case of a state unitary enterprise, state unitary enterprise, share in an enterprise – a purchase and sale agreement between UzSAMA and the buyer.

Payment terms, depending on the amount, range from a month to 3 years. After fulfilling the obligations, the buyer, within 5 days, through the public services center or the Single Portal personal account, receives an order with a QR code that secures his rights to the object.

Information about privatization and the results of the process should be published on the official websites of UzSAMA, as well as attracted sellers and investment intermediaries. The law comes into force three months after publication.