RESOLUTION OF THE CABINET OF MINISTERS OF THE KYRGYZ REPUBLIC

of September 24, 2021 No. 183

About the questions regulating procedure for provision of state-owned property in lease, economic maintaining, operational management, free temporary use

For the purpose of optimization of procedures of provision of state-owned property in lease, economic maintaining, operational management, free temporary use, according to articles 10 and 17 of the constitutional Law of the Kyrgyz Republic "About the Government of the Kyrgyz Republic" the Cabinet of Ministers of the Kyrgyz Republic decides:

1. Approve:

- Regulations on procedure for provision of state-owned property in lease according to appendix 1;

- Regulations on procedure for transfer of state-owned property to economic maintaining, operational management, free temporary use according to appendix 2.

2. Bring in the order of the Government of the Kyrgyz Republic "About approval of the provisions regulating procedure for privatization and lease of state-owned property at pilot auctions in electronic format" of August 18, 2017 No. 507 the following changes:

- the paragraph third Item 1, Items 2 and 2-1 to recognize invalid;

- state Item 3 in the following edition:

"3. This resolution becomes effective after fifteen days from the date of official publication.".

3. Determine that lease agreements of state-owned property which effective periods expired during the period since October 10, 2018 before entry into force of this resolution are subject to renewal by the parties for a period of three years answering to the conditions specified in Item 65 of the Regulations on procedure for provision of the state-owned property in lease approved by Item 1 of this resolution irrespective of availability in lease agreements of conditions about prolongation, at the same time lessees continue to use actually state-owned property and pay the rent according to the agreements signed according to:

- The regulations on procedure for provision of state-owned property in lease approved by the order of the Government of the Kyrgyz Republic of June 17, 2015 No. 374;

- The regulations on procedure for holding pilot auctions on right to contract of lease of state-owned property in electronic format approved by the order of the Government of the Kyrgyz Republic of August 18, 2017 No. 507.

4. Determine that in the lease agreements which are subject to renewal according to Item 3 of this resolution, the rent is determined according to the procedure, stipulated in Item 67 Regulations on procedure for provision of the state-owned property in lease approved by Item 1 of this resolution.

4-1. Operation of this resolution does not extend to leasing, transfer of the state-owned property to operational management and economic maintaining assigned to the state companies (branches) delivered in trust management to Kyrgyzindustriya open joint stock company for validity of trust management. The specified state companies (branches) have the right independently without coordination with authorized state body in the sphere of development of policy of management of state-owned property, authorized state body in the sphere of state-owned property and lease to determine procedure and conditions of use of the state-owned property assigned to them to perform leasing, transfer of state-owned property to operational management and economic maintaining.

5. Recognize invalid:

1) paragraph two of Item 10 of appendix 1 to the order of the Government of the Kyrgyz Republic "About delegation of separate rule-making powers of the Government of the Kyrgyz Republic to state bodies and executive bodies of local self-government" of September 15, 2014 No. 530;

2) the order of the Government of the Kyrgyz Republic "About approval of the Regulations on procedure for provision of state-owned property in lease" of June 17, 2015 No. 374;

3) the order of the Government of the Kyrgyz Republic "About modification and amendments in the order of the Government of the Kyrgyz Republic "About approval of the Regulations on procedure for provision of state-owned property in lease" of June 17, 2015 No. 374" of November 8, 2016 No. 573;

4) the order of the Government of the Kyrgyz Republic "About modification of the order of the Government of the Kyrgyz Republic "About approval of the Regulations on procedure for provision of state-owned property in lease" of June 17, 2015 No. 374" of January 16, 2018 No. 25;

5) Item 1, the subitem 1 of Item 2 of the order of the Government of the Kyrgyz Republic "About modification of some decisions of the Government of the Kyrgyz Republic in the sphere of lease and privatization of state-owned property" of December 11, 2019 No. 674;

6) the order of the Government of the Kyrgyz Republic "About modification of the order of the Government of the Kyrgyz Republic "About approval of the Regulations on procedure for provision of state-owned property in lease" of June 17, 2015 No. 374" of February 27, 2020 No. 115;

7) the order of the Government of the Kyrgyz Republic "About modification of the order of the Government of the Kyrgyz Republic "About approval of the provisions regulating procedure for privatization and lease of state-owned property at pilot auctions in electronic format" of August 18, 2017 No. 507" of December 18, 2020 No. 620.

6. To state bodies of the Kyrgyz Republic to take the necessary measures following from this resolution.

7. This resolution becomes effective after fifteen days from the date of official publication.

Appendix 1

to the Resolution of the Cabinet of Ministers of the Kyrgyz Republic of September 24, 2021 No. 183

Regulations on procedure for provision of state-owned property in lease

Chapter 1. General provisions

1. This Provision determines conditions and procedure for provision in lease of state-owned property.

2. Action of this provision does not extend to the relations connected with provision in lease:

1) the parcels of land which are in state-owned property;

2) the state-owned property located outside the Kyrgyz Republic;

3) objects of the state housing stock;

4) places in hostels of the state organizations;

5) state-owned property in the territory of free economic zones;

6) property of Administration of the President of the Kyrgyz Republic, its subordinated organizations, and also state residences of the President of the Kyrgyz Republic.

Questions of lease of property, specified in this subitem, are regulated by the relevant provisions approved by Administration of the President of the Kyrgyz Republic;

7) the relations connected with realization of state policy and implementation of transactions in the field of the budget crediting;

8) property of the state higher educational institutions having special status. The state higher educational institutions having special status in coordination with the boards of trustees have the right to dispose (to lease) independently the material and technical resources acquired at the expense of own means.

3. Provision of state-owned property in lease within projects implementation of public-private partnership is performed according to this Provision taking into account the features established by Chapter 3 this provision.

4. The basic concepts used in this Provision:

1) state-owned property - the real estate which is in state-owned property: buildings, constructions, non-residential premises, and also personal estate: vehicles, machines and equipment. In the cases provided by this Provision various conditions and procedure for leasing of buildings, constructions, and also personal estate are established;

2) object of lease - the state-owned property which is the subject of the agreement of lease or concerning which the auction on right to contract of lease which to the conclusion of the agreement (direct provision) or exposure to the biddings (leasing through the biddings) is not used in accordance with the established procedure by the asset holder, the lessor and/or other lessee is held;

3) lease of state-owned property - provision of state-owned property for a fee in temporary use;

4) the lessor - state governing body, public institution, the state company which provided state-owned property in lease;

5) the asset holder - the state governing body, public institution, the state company, in operational management or economic maintaining which is state-owned property;

6) the lessee - physical persons and legal entities, including foreign which in the procedure established by this Provision are granted the right of temporary ownership and use of state-owned property;

7) authorized body - authorized state body in the sphere of management of state-owned property and (or) its structural divisions;

8) direct provision in lease - type of the transfer of state-owned property to lease without tendering performed according to Chapter 2 this provision;

9) electronic auction (auction) - the auction on right to contract of lease of state-owned property held by increase in the starting amount of the rent in which the participant who offered the largest amount of the monthly rent becomes the winner;

10) electronic auction with conditions (auction with conditions) - the auction on right to contract of lease of state-owned property held by increase in the starting amount of the rent in which the participant who offered the largest amount of the monthly rent and assumed concerning object of lease of the obligation becomes the winner, specified in the information message which in subsequent joins in the lease agreement;

11) Electronic trading platform - the information system placed on the Internet for the organization and tendering in real time, allowing the registered participants to perform remotely electronic transaction operations;

12) the operator of Electronic trading platform - the organization accredited by the authorized body owning electronic trading platform and software and hardware, necessary for its functioning;

13) open part of Electronic trading platform - the public part of the portal of Electronic trading platform which is not requiring registration in system for work in it;

14) the closed part of Electronic trading platform - the part of the portal of Electronic trading platform available only to the registered users of Electronic trading platform;

15) regulations of Electronic trading platform - the set of the rules determining operating procedure and accreditations of the operator of Electronic trading platform approved by authorized body;

16) the applicant - person who submitted the application for participation in the biddings for right to contract of lease;

17) the starting amount of the rent - the initial amount of the monthly rent for use of state-owned property with which the biddings on right to contract of lease begin;

18) the participant - the applicant allowed to participation in the biddings;

19) the register of lease agreements of state-owned property - the register of the prisoners changed and who stopped the action of lease agreements of state-owned property which is kept by authorized body.

5. The conclusion of the lease agreement of state-owned property is performed by direct provision in lease or by results of the biddings.

6. If asset holder is the subordinated or territorial subdivision of state body, delivery of state-owned property in lease is performed in coordination with higher state body.

If asset holder is the state company or organization, delivery of state-owned property in lease is performed in coordination with the supervising state body within 30 calendar days:

- specified as the founder in statutory documents of the state company or organization;

- performing the common directorship and coordination of activities of the state company or organization;

- in which departmental subordination such company or organization functions.

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