Large-scale privatization in Azerbaijan suspended

Privatization of large state-owned enterprises in Azerbaijan by the investment competition has actually suspended. In 2013, by this method were only sold three companies.

The report of the State Committee for Property Affairs noted that the modernization and reconstruction in previously privatized enterprises during 2013 was invested 57 million manat. This is about 100 million manat less than in 2012. In 2011, AZN 125.7 million was invested in enterprises privatized by investment tender.

Investment competitions have been held in Azerbaijan since 1998. To date, this method has sold over 90 joint-stock companies and facilities. By the first of January this year 93 plants and facilities had been invested 882 million manats.

Vivid examples of good practice of investment competitions are few in Azerbaijan. Among them, the most revealing example is Garadagh Cement Plant privatized by Swiss Holcim Group.

According to the State Property Committee, privatization of enterprises through investment tender gave the state budget about 54 million manat. In 2012-2013, this method brought into the treasury about 3 million manat. From 1999 to January 1, 2012 to acquire these businesses companies and individuals transferred a lump sum of 51.465 million manat.

In 2013, 7 enterprises were privatized by investment contest, but their names were not disclosed.

The State Property Committee runs two dozen JSC that over the last 8-9 years have been exhibited at investment competitions. Many of them are inactive, while having large debts and unusable assets. As a rule, applicants are required a large amount of bonuses for the sale of shares of these companies. - 08D-