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The document ceased to be valid since  January 27, 2022 according to Item 1 of the Order of the Government of the Kyrgyz Republic of January 14, 2022 No. 9 

ORDER OF THE GOVERNMENT OF THE KYRGYZ REPUBLIC

of February 13, 2006 No. 91

About the Privatization program of state-owned property in the Kyrgyz Republic for 2006-2007

According to the Law of the Kyrgyz Republic "About privatization of state-owned property in the Kyrgyz Republic" the Government of the Kyrgyz Republic decides:

1. Approve the draft of the Privatization program of state-owned property in the Kyrgyz Republic for 2006-2007.

2. Send this draft of the Program for consideration of Jogorku Kenesh of the Kyrgyz Republic.

3. Appoint the chairman of the State committee of the Kyrgyz Republic on management of state-owned property of the official representative of the Government of the Kyrgyz Republic by consideration of the specified Program in Jogorku Kenesh of the Kyrgyz Republic.

4. Withdraw from Jogorku Kenesh of the Kyrgyz Republic the draft of the Privatization program of state-owned property in the Kyrgyz Republic for 2004-2006 sent according to the order of the Government of the Kyrgyz Republic of March 19, 2004 to No. 189 "About the draft of the Privatization program of state-owned property in the Kyrgyz Republic for 2004-2006".

5. Recognize invalid:

- The order of the Government of the Kyrgyz Republic of September 22, 2001 No. 576 "About the draft of the Privatization program of state-owned property in the Kyrgyz Republic for 2001-2003";

- The order of the Government of the Kyrgyz Republic of March 19, 2004 No. 189 "About the draft of the Privatization program of state-owned property in the Kyrgyz Republic for 2004-2006".

6. To impose control of execution of this Resolution on management of economic development of the Office of the Prime Minister of the Kyrgyz Republic.

Prime Minister

F.Kulov

Approved by the Order of the Government of the Kyrgyz Republic of February 13, 2006 No. 91

The privatization program of state-owned property in the Kyrgyz Republic for 2006-2007

1. The main results of privatization of state-owned property for 1991-2005 and problems

1.1. Main results

The undertaken reforms for last years in the republic were resulted by active transformation of state-owned property, its structure and the property relations is significantly changed. In the country there was economy regulated by the market relations, the level of state-owned property in all sectors of economy, except for key branches and the social sphere considerably is reduced. Now more than 70 percent of the state objects which were available in Kyrgyzstan in 1991 are transformed to private pattern of ownership. Number of the state objects is transferred to the municipal possession.

Documents are in recent years prepared and the program implementation of privatization of the major strategic sectors of economy is begun (power, telecommunications, oil and gas industry, air transport), their assessment and the choice of schemes of privatization, restructuring and separation into independent joint-stock companies is performed.

Now the largest shareholder having controlling stocks in the companies of the specified sectors is the state.

In the course of privatization the basis for forming and development of the domestic stock market, small and medium business is created, market infrastructure in which all basic elements necessary for its effective functioning and development are provided is created. The state is exempted from big circle of functions of direct management of the companies unusual for it. "Mass" privatization during which citizens of Kyrgyzstan were allocated with privatization coupons is carried out and exercised the right to part of state-owned property. The market saturation goods and services, shortage control, improvement of service, servicing terms, etc. became result of "small" privatization. As a result of reforms on the basis of privatization of small enterprises, housing in the country there was real owner, conditions for attraction in economy of the republic of foreign and domestic investors are created.

Along with certain progress, in the course of privatization there was also number of shortcomings. In particular, the Audit Chamber of the Kyrgyz Republic notes incomplete implementation of the state blocks of shares of number of unattractive objects, insufficient efficiency of trust management of the state blocks of shares of some companies, need of strengthening of control of contractual commitments, charge and transfer of dividends on the state blocks of shares, by bankruptcy process.

1.2. The problems interfering effective carrying out privatization

The problems interfering effective carrying out privatization are unattractiveness of separate objects for investors; considerable wear of the equipment; obsolete technology; lack of the markets; low product competitiveness; insufficient solvency of buyers; in some cases, small percent (remaining balance) of the state share fraction offered for sale that does not give to the buyer of full participation in management of joint-stock company. For these reasons the state, owning sufficient blocks of shares of joint-stock companies, often cannot realize them.

In a number of joint-stock companies state interests do not give the chance to sell the state block of shares completely that causes the necessity of management of these shares on behalf of the state. With respect thereto the problem of increase in effective management of state-owned property is urgent. The existing system of training on management of state-owned property, estimates of their professional qualities and determination of qualification taking into account specifics of specific object of management, and also impossibility of application of measures of property responsibility for results of activities of representatives of the state in joint-stock companies and lack of the mechanism of their remuneration, depending on achievement of good financial results, does not allow to pursue effective policy of management of state-owned property. Besides, enhancement of the regulatory framework influencing processes of management of state-owned property regarding the questions concerning lease, concession, dividend policy is necessary.

Important element of privatization is assessment of state-owned property. The possibility of involvement of independent appraisers to assessment of state-owned property is limited to backwardness of institute of assessment, lack of state regulation of estimative activities and quality assurance of estimative services.

The mechanism of access and participation of small shareholders to implementation process of the state blocks of shares requires enhancement.

The questions connected with assignment of rights of property and assessment of the parcels of land constituting single complex with subjects to privatization are not settled.

2. Tasks of state policy in the field of privatization for 2006-2007

For ensuring process performance of privatization of state-owned property, creation of the favorable investment climate of the Kyrgyz Republic via the privatization mechanism, and also permissions of the available problems it is necessary to solve the following problems:

2.1. finish the privatization of objects begun at the previous stages;

2.2. perform improvement of insolvent business entities within bankruptcy process;

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