Uzbekistan's President Shavkat Mirziyoyev signed a resolution on April 19 regarding additional measures to reduce the state's participation in the economy, as reported by the State Assets Management Agency.
The document includes a list of state shareholdings in 247 enterprises and 1028 real estate assets that will be put up for auction. Shares of 12 major enterprises will be placed on the domestic stock market through initial public offerings (IPOs) and secondary public offerings (SPOs):
- Uzbektelecom, Uzbekhydroenergo, Almalyk Mining and Metallurgical Combine, Uzbekgeologyqidiruv, Uzbekgeofizika - 2% of shares each;
- Commodity and Raw Materials Exchange - 2.4%;
- Temiryulqargo, Uztemiryulcontainer - 4% each;
- Republican Stock Exchange "Tashkent", Uzbekiston Pochtasi, UzAuto Motors Powertrain, organization of electronic online auctions - 5% each.
To expedite privatization, measures have been introduced to facilitate the sale of state assets and increase the private sector's share in the economy. If state assets (excluding those in Tashkent and regional centers) are not sold within three months, their value will gradually decrease to 10% of the initial price.
Entrepreneurs who lease state property through auctions (included in the privatization program) for at least five years as of January 1, 2024, and fulfill their obligations will have the right to purchase it directly at the assessed value.
Buyers acquiring state real estate on installment terms will pay land and property taxes after full transfer of ownership rights to these properties. The starting price of non-agricultural land plots (excluding Tashkent and regional centers) unsold within three months will be reduced by 30%, and if not sold within six months, by 10%. Additionally, a payment option will allow 15% of the amount to be paid within three months, with the remaining balance over 10 years.
Payments for state property in 4th and 5th category districts and land plots acquired under ownership rights will be made in equal installments over 5 years. The current initial contribution required for the pledge of purchased land plots, set at 35%, will be reduced to 15%.
In January, Shavkat Mirziyoyev instructed the acceleration of the privatization of 33 grain processing enterprises, lowering their prices to market rates. He criticized the delays in selling assets by ministries and hokimiyats. For instance, in Tashkent, 25 hectares of land were put up for auction and then withdrawn, resulting in a loss of 600 billion som to the budget.
This year, it is anticipated that privatization processes will generate revenues of 20 trillion som through the sale of share packages of 400 enterprises, real estate assets of 800 enterprises, and 2000 hectares of land.
