ORDER OF THE GOVERNMENT OF THE REPUBLIC OF MOLDOVA

of October 27, 2023 No. 819

About approval of the Mechanism of selection of the state companies and commercial societies with the state capital

Based on articles 6 and 7 of the Law No. 121/2007 on management of public property and its privatization (The official monitor of the Republic of Moldova, 2007, No. 90 - 93, the Art. 401), with subsequent changes, and also Items b) and c) Articles 5, Items b), h) and k) article 6 of the Law No. 136/2017 on the Government (The official monitor of the Republic of Moldova, 2017, No. 252, the Art. 412), with subsequent changes, DECIDES: the Government

1. Approve:

1) the Mechanism of selection of the state companies and commercial societies with the state capital according to appendix No. 1;

2) Institutional structure of the Commission on carrying out selection of the state companies and commercial societies with the state capital according to appendix No. 2.

2. To the agency of public property to realize selection process of the state companies and commercial societies with the state capital, including in case of implementation by other body of public management of function of the founder/shareholder or shares in the authorized capital of the companies, according to the Mechanism approved by this resolution.

3. This resolution becomes effective from the date of publication in the Official monitor of the Republic of Moldova.

Appendix No. 1

to the Order of the Government of the Republic of Moldova of October 27, 2023 No. 819

The mechanism of selection of the state companies and commercial societies with the state capital

Chapter I General provisions

1. The mechanism of selection (categorization) of the state companies and commercial societies with the state capital (further - the Mechanism) establishes single, reasonable and transparent methods for the purpose of ensuring strictly reasonable selection of the state companies and commercial societies with the state capital according to provisions of the Law No. 121/2007 on management of public property and its privatization, and also the Strategy of management of public property in the sphere of the state companies and commercial societies with completely or mainly the public capital for 2023 - 2030, approved by the Order of the Government No. 911/2022.

2. In all text the word of the company including the state companies and commercial societies with the state capital is used.

Chapter II of Category of classification of the companies

3. Selection of the companies assumes their reference to one of the following main categories:

category 1. Companies, not privatizeable;

category 2. The companies recommended for reorganization in other form of business;

category 3. The companies, privatizeable after restructuring/upgrade;

category 4. The companies recommended for immediate privatization;

category 5. The companies recommended for liquidation.

Chapter III Selection criteria

4. For each of 5 categories of classification of the companies set of the separate criteria allowing to prove the decision on reference of the company to one of these categories is established. These criteria consider both role and specifics of activities of the company, and their financial performance and stability.

5. Selection of the companies is made using the criteria given below based on the principle of the sequence given on the drawing:

                                                                                                                 Drawing. Selection stages

Category 1. The companies recognized not privatizeable

6. The companies belong to this category if correspond to at least one of the listed below criteria:

Criterion 1. The main activities directly depend on use of the property entering public property of the public sphere

To this criterion there correspond the companies of the following spheres: environment (forestry, water fund), strategic infrastructure (railway infrastructure, airports, navigable/river ports, networks of electronic communications, power networks, etc.); other companies to which the property, not privatizeable is transferred (including the objects which are part of national cultural property, natural resources).

Criterion 2. Have the status of the state monopoly, natural or fiscal monopoly

Preserving presence of the state at the companies performing activities is proved in the sectors appointed monopolies as safety reasons, so aspiration of the state to keep quality of the main services provided to citizens and to keep the rates which are not allowing to increase as much as possible profit thanks to monopoly availability to the detriment of public welfare.

Can correspond to this criterion:

1) the companies appointed as the state monopoly according to the legislation;

2) the companies performing activities in the spheres of natural monopoly established by the regulation;

3) the companies which were given the status of fiscal monopoly according to the regulation approved by the Government based on the Law No. 845/1992 on entrepreneurship and the companies.

Criterion 3. Provide implementation of types of activity on which homeland security directly depends

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