Essential innovations in the field of privatization of state property in Azerbaijan

The essential innovations have been applied within acceleration and increasing of efficiency of privatization of state property in Azerbaijan. The numerous state enterprises and objects have been nominated to be privatized according to the decision of the State Committee on Property Issues (SCPI).

These measures are being implemented in accordance with the Presidential Decree as of 19 July 2016 “On Some Measures Related to Acceleration of Privatization and Increasing of Efficiency of Management of State Property” and other appropriate assignments by Mr. Ilham Aliyev, President of the Republic of Azerbaijan. 

The SCPI has announced auctions for privatization of 65 state-owned properties. Of these, 25 are joint-stock companies operating in various economic sectors, 2 non-living spaces, 28 other kinds of state-owned properties and objects and 10 vehicles. The enterprises available for privatization operate in transport, service, agriculture as well as food production, construction and trade areas.

The information on auctions is published in “Mulkiyyet” (“Property”) Newspaper which is an official body of SCPI, and in the recently established Privatization Portal.

Investors can get detailed information on the enterprises to be privatized via the Privatization Portal (http://privatization.az/index.php/en/homeeng/business).

In addition, the profiles illustrating previous production potential, current situation and future prospects for 6 joint-stock companies have been published in the Privatization Portal in order for the SCPI to attract both local and foreign investors.  

More state enterprises and objects are going to be privatized in the coming years.

In the meantime, the SCPI has announced an open tender to involve a prestigious consultant to prepare proposals related to the privatization of “Dashkasan Ore Dressing Plant” OJSC.       

According to the above-mentioned decree and other appropriate assignments by Mr. Ilham Aliyev, President of Azerbaijan, the essential innovations are applied in that privatization. Thus, the state properties available for privatization have auctioned not with the inventory price, but on the basis of market values defined by indepented assessors. In addition, more extensive and detailed information on the state property presented to auction is available now. Investors can get map data (as an extract from Google Maps) about enterprises and real estates as well as their photos reflecting the current situation through the Privatization Portal. All these will give an opportunity to them who are participating in the privatization process to obtain more extensive information on real estates to be privatized.

In order to involve local and foreign investors to the privatization process implemented in Azerbaijan, all information in the Portal is available both in Azerbaijani and English. Simultaneously, there is an online Q&A system for investors in the Portal. This system allows users to address their questions on privatization to the SCPI. To this end, investors can also use the SCPI page in Facebook.

The edicts and decrees of the President, the assignments for the Committee, as well as the steps taken in accordance with the legislation and applied innovations will allow to accelerate the privatization process in Azerbaijan and increase its efficiency and attract more foreign and local investors to this process. On the other hand, along with raising the economic activity in the country, establishing new workplaces, it will have a positive effect to the volume of the income to the state budget from privatization.

In this regard, the SCPI invites foreign and local businessmen, every citizen who wants to be a proprietor to participate in the privatization in an active way.