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13 March 2023

Decree of the Cabinet of Ministers has improved the procedure for privatization and lease of state property

According to the Decree of the Cabinet of Ministers № 100 from March 10, 2023 "On introduction of amendments and additions to some decisions of the Government of the Republic of Uzbekistan in connection with improvement of procedures for privatization and leasing of state property", it was simplified the procedure and shortened periods of offering state assets for sale.

In particular, when offering state shares and real estate on electronic trading platform "E-auksion" or during the appraisal by international auditing company, the requirement for mandatory expertise of the appraisal report was canceled.

The period for offering state real estate objects for sale has been reduced from 80 to 48 days, and for state shares from 89 to 67 days.

Sale and Purchase Agreements and state orders are issued through EDS.

If there is only one applicant for the state share and state real estate in the auction, the practice of concluding a contract with him is abolished.

The purchaser of the state share (stock) is granted the right to participate in the management of the company and receive dividends in proportion to the part paid out.

Also, the duration of the lease of state-owned property has been increased from 1 to 3 years and when all obligations are fulfilled from 5 to 6 years.

At the same time, based on the online request of khokim assistants, funds from the sale of state property with an area of up to 2,000 square meters will be fully transferred to the Fund on solving the socio-economic problems of mahalla, which was separately established for each mahalla. Also, 90% of funds from the sale of state property with an area of up to 10,000 square meters will be transferred to local budgets (45% to the regional budget and 45% to the budget of the district (city) where the property is located).

In addition, based on the decision of the State Assets Management Agency, the order of transfer of vehicles and fixed assets together with the state real estate objects is implemented.

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