Uzbekistan's privatization program is set to expand significantly, with new state stakes in 84 economic entities, 1,242 real estate properties, and approximately 8,000 hectares of land designated for entrepreneurial and urban development purposes to be put up for auction, according to the State Assets Management Agency's press service.
Additionally, the plan includes the liquidation and reorganization of 85 state-owned enterprises. Eighty-four objects that were previously unsold will be re-auctioned with a starting price of 1 million soums. The total value of assets put up for auction is 100 trillion soums. It is expected that at least 14 trillion soums will be generated from their sale by the end of the year.
A presidential decree introduces new implementation mechanisms based on entrepreneurs' proposals, which will make the acquisition of state assets more accessible. Specifically, the down payment for purchases is proposed to be set at 15% (previously 35%), with the remaining amount payable in installments without interest (previously an average surcharge of 14% was applied).
For large transactions, additional payment terms are provided: buyers who fully pay for the acquired asset within six months can receive a 25% discount (under the previous procedure, a 14% discount was granted for full payment within one month); installment payments without interest are allowed for up to 5 years if 35% of the asset's value is paid within 3 months, and up to 7 years if 50% is paid within 6 months.
To enhance auction efficiency, new sales mechanisms will be employed. If an asset is not sold within three months, a step-by-step price reduction mechanism will be applied. In certain cases, a hybrid auction mechanism may also be used, allowing for a combination of price reduction and subsequent increase during bidding.
It is noted that these mechanisms and benefits may be applied when selling assets on the balance sheets of commercial banks with state participation. Furthermore, a mechanism for selling land on a 'ready package' principle is envisaged, with pre-prepared technical conditions for connection to utility networks and necessary permits.
Concurrently, a gradual commercialization of major state higher education institutions and specialized medical centers will be undertaken, with the possibility of attracting private investors and financial instruments. Assets can be purchased online via the website.
Source: uznews.uz