Shavkat Mirziyoyev signed a decree on August 28 introducing new mechanisms for the privatization of state assets, the Agency for Management of State Assets reported.
The presidential decree (UP-177) provides for new measures to reduce the state’s presence in the economy, make it easier for investors to participate, and expand opportunities for the private sector. The document approves a new privatization program covering real estate, land plots and stakes in companies.
The total value of the assets to be put up for auction amounts to UZS 100 trillion. By the end of the year, proceeds from their sale are expected to reach at least UZS 14 trillion.
As part of the program, buyers will be offered government stakes in 84 companies. Investors will also be able to purchase 1,242 real estate properties and land plots with a total area of around 8,000 hectares for business and urban development projects.
A total of 85 state-owned or state-participated enterprises are planned to be liquidated or reorganized. The 84 assets that were not sold previously will be put up for auction again with a starting price of UZS 1 million.
The decree also introduces new sale mechanisms based on proposals from businesses. The down payment required for purchases will be reduced from the current 35% to 15%, while no interest will be charged on the remaining amount.
Additional incentives will be provided for large transactions. Buyers will be eligible for a 25% discount if they pay the full value of an asset within six months of signing the sale agreement, instead of one month.
The terms for interest-free instalment payments will also be extended. Investors who pay 35% of the lot’s value within three months will be allowed to pay the remaining amount over five years. If 50% of the price is paid within six months, the remaining amount can be paid over seven years.
If an asset is not sold within three months of being put up for sale, its price will be gradually reduced. In addition, a “hybrid auction” mechanism will be introduced, allowing the price to be lowered and raised during the bidding process.
The new mechanisms and incentives will apply to both state-owned assets and assets held on the balance sheets of banks with state ownership.
The decree also addresses ways to increase the investment attractiveness of land plots. They will be sold on a “ready-to-use package” basis, with permits and technical conditions for connecting to utility networks prepared in advance.
In addition, major state universities and specialized medical centres are planned to be gradually commercialized.
The English version of this material was generated with the assistance of AI translation tools and may differ slightly from the original text.
