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LAW OF THE REPUBLIC OF MOLDOVA

of May 4, 2007 No. 121-XVI

About management of public property and its privatization

(as amended on 20-12-2019)

The parliament adopts this organic law.

Chapter I. General provisions

Article 1. Object and scope of the law

(1) This law governs the relations on management of public property and its privatization.

(2) Operation of this law extends to public property of the state and administrative and territorial units, except for public finance and housing stock.

(3) Provisions of this law are not applied to process of organization and to activities of Single central depositary; activities of Single central depositary are regulated by the law on Single central depositary.

(4) Provisions of this law are not applied to the measures, actions and tools provided by the Law on improvement of banks and the bank resolution.

Article 2. Basic concepts

For the purpose of this law the following basic concepts are used:

public property - set of property of the public sphere and property of the private sphere of the state, administrative and territorial units, including autonomous territorial education Gagauzia;

property of the public sphere of the state - set of the personal and real estate intended for satisfaction of common interests of the state;

property of the private sphere of the state - set of the personal and real estate which is in state-owned property having strictly certain appointment, other than satisfaction of common interests;

management of public property - activities for implementation and change of the property right of the state and/or administrative territorial units;

trust management - the agreement under which one party (the founder of management) delivers property in trust management to other party (trustee) and the trustee shall manage property for the benefit of the founder of management;

special management - the special control mode the privatizeable company which is applied in exceptional cases by preparation of the company for privatization;

concession - the agreement under which the state yields (transfers) to the investor (to physical person or legal entity, including foreign) the right to implementation of activities for investigation, development, development or recovery of natural resources in the territory of the Republic of Moldova, to rendering public services, operation of the property which is in state-owned/municipal property which according to the legislation is fully or partially excluded from civil circulation, and also the right to implementation of the separate types of activity including constituting monopoly of the state instead of periodical payments and acceptance on itself managements of subject to concession, expected risks and property responsibility;

privatization of public property - the activities including transfer of public property to private property according to this law (privatization) and also transfer to concession, trust management, transfer of the state companies to the property of administrative and territorial units and other activities directed to reducing participation of the state in property management;

object, privatizeable, - the block of shares, share in the authorized capital, the isolated real estate, non-residential premises, complex of real estate, the parcel of land, other objects relating to the private sphere of public property;

the list of objects, privatizeable, - the list approved in accordance with the established procedure including commercial societies with public or public private equity, shares or shares in which authorized capital are subject to privatization, the state and municipal companies with preliminary restructuring or without it, other objects, privatizeable;

non-residential premises - squares in buildings, other constructions, including in extensions to apartment houses, not intended for housing;

the participant of privatization - the physical person, the legal entity or their consolidation which provided the offer or the application for participation in privatization in the procedure established by this law;

the seller - the Agency of public property or body of local public authority alienating public property;

the buyer - the participant of privatization who acquired public property according to this law;

post-privatization activities - the activities following privatization including obligation fulfillment, assumed by the buyer according to the purchase and sale agreement, control of execution of these obligations, support of the buyer or imposing on it of sanctions, permission in need of disputes and implementation of other activities;

The paragraph the seventeenth is excluded according to the Law of the Republic of Moldova of 12.07.2013 No. 204

commercial society with the public capital - commercial society which all authorized capital is created at the expense of deposits of the state or administrative and territorial unit;

commercial society with mainly public capital - commercial society in which the state or administrative and territorial unit possess the block of shares or share in the authorized capital representing more than 50 percent of all voices of shareholders (participants) on general meeting of commercial society or constituting other share of the vote providing simple majority of votes on general meeting.

Article 3. Purposes and basic principles of management of public property and its privatizations

(1) Control of public property is exercised for the purpose of:

a) reductions of amounts and structure of public property, and also methods of management of property in compliance with functions of the state and administrative and territorial units;

b) investment attraction to the public sector of national economy and ensuring effective management;

c) developments of the competition in national economy.

(2) Control of public property is exercised according to the principles of efficiency, legality and transparency that includes in particular:

a) determination of structure and property value of the public sphere of the state and administrative and territorial unit and its accounting;

b) differentiation of the property which is in public property of the state, and the property which is in public property of administrative and territorial units;

c) increase in appeal of the state/municipal companies and commercial societies with the public capital by means of corporate management, election on competitive basis of administrators, their stimulations by results of work and other methods;

d) forecasting, planning, accounting, monitoring and supervision in the field of public property;

e) protection of the rights and legitimate interests of the state and administrative and territorial units, and also legal entities in the field of public property.

(3) Main objectives of privatization of public property are restructuring of national economy and increase in its competitiveness on the basis of attraction of private investments, ensuring effective management and other methods.

(4) the Basic principles of privatization of public property are efficiency, legality and transparency that includes in particular:

a) coordination of the directions, rates and methods of privatization of public property with strategies of development for industries and sectors of national economy, and also with priorities of development of administrative and territorial units and the countries in general;

b) increase in appeal of objects, privatizeable, by means of the choice of adequate methods of restructuring and privatization and other measures;

c) attraction is possible the greatest number of participants of privatization, provision of the equal rights by it and ensuring the loyal competition between them;

d) ensuring equal rights and protection of legitimate interests of the state, administrative and territorial units and participants of privatization.

Article 4. Legislative regulatory base of management of public property and ee of privatization

(1) the Relations on management of public property and its privatization are regulated by the civil, land and tax legislation, other regulations, and also international agreements, one of the parties of which is the Republic of Moldova.

(2) the Parcels of land on which the privatized or private objects are located (further - the adjacent parcels of land) and also the parcels of land under construction are privatized according to this law, the Law on standard price and procedure for purchase and sale of the earth, other laws and provisions approved by the Government.

Article 5. The bodies of public management given authority in the field of management of public property and its privatization

Bodies of public management, the given authority in the field of management of public property and its privatizations, are:

a) The government by means of the central industry and other administrative authorities (further - bodies of the central public management) - concerning property of the state;

b) bodies of public management of administrative and territorial units of the second and first levels, including autonomous territorial education Gagauzia (further - bodies of local public authority) - concerning property of administrative and territorial units, including autonomous territorial education Gagauzia.

Article 6. Competence of the Government in management of public property and its privatizations

(1) in the field of management of public property are within the competence of the Government:

a) adoption of resolutions on reference of objects of state-owned property to the public or private sphere of the state, about their transfer from one sphere to another or in property of administrative and territorial units;

a-1) adoption of resolutions on transfer of the state companies and real estate units, being in public property of the state, from maintaining one body of the central public management in maintaining other body of the central public management;

b) adoption of resolutions on differentiation of the lands which are in public property on the conditions established by the law;

c) approval of the draft of the list of objects of public property, not privatizeable, and its entering into Parliament for approval;

d) approval of lists of objects of public property of the state, the works and services of national public interest offered for transfer to concession or other form of public and private partnership, and also approval of conditions of public and private partnership of national value;

e) adoption of resolutions on creation, restructuring, reorganization or liquidation of the state companies, about their transfer to maintaining bodies of the central public management, and also implementation of function of supervision of activities of the relevant companies;

e-1) adoption of resolutions on creation of commercial societies with fully or partially state capital, and also about initiation of restructuring, reorganization or liquidation of commercial societies with completely or mainly the state capital;

e-2) adoption of resolutions on consolidation and/or acquisition of blocks of shares and shares in the companies with mainly state capital and/or national value, and also shares of systemically significant banks;

f) approval of the regulations necessary for accomplishment of this law;

g) other powers determined by the law.

(2) in the field of privatization of public property are within the competence of the Government:

a) approval of the list of objects of state-owned property, privatizeable;

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