Uzbekistan plans to put state assets worth about 100 trillion soums up for auction

Uzbekistan intends to put state assets worth nearly 100 trillion soums up for auction

This year, Uzbekistan plans to sell state shares in 84 companies, 1,242 real estate properties, and 8,000 hectares of land. The total value of these assets is estimated at nearly 100 trillion soums, and privatization revenues are expected to reach at least 14 trillion soums.

This was announced on October 8 at a press conference by Sokhibjon Murodov, Director of the State Assets Management Agency. These plans are established by a presidential decree on reducing state participation in the economy and accelerating privatization.

In addition to the sale of assets, the document also provides for the liquidation or reorganization of 85 enterprises with state participation.

To speed up the sale of property, the period for posting auction announcements has been reduced from 30 to 15 days, and the interval between repeat auctions has been cut from 10 to five days.

If a buyer cannot be found, the value of the asset can be gradually reduced down to 10% of the initial price. For transactions provided for by the decree, a down payment of 15% will also be allowed, with the remaining amount paid in interest-free installments.

With full payment within six months, a 5% discount is provided for certain large assets. Specific conditions depend on the category of property and the method of sale.

At the press conference, Murodov cited examples of major deals. Coca-Cola Uzbekistan was sold for $252 million, the state share in Ferganaazot for $140 million, and a 75.2% state share in the Samarkand Automobile Plant for $80 million.

After the sale of enterprises, the agency continues to monitor the fulfillment of investors' obligations stipulated by the contracts. In particular, this concerns investments and maintaining the enterprises' line of business. To verify compliance with the conditions, buyers' reports are reviewed and on-site inspections are conducted.

When preparing for the privatization of large and strategic enterprises, international consultants may be involved, including to assess risks of conflicts of interest and antitrust violations.

One of the goals of privatization, according to the agency, is to bring idle assets into economic circulation. The transfer of vacant buildings and other unused facilities to private owners is expected to attract investment, establish businesses, and create additional jobs.

At the same time, special conditions related to public interest and national security may apply to certain strategic assets.