RESOLUTION OF THE CABINET OF MINISTERS OF UKRAINE

of November 30, 2016 No. 878

About approval of the Procedure for involvement of advisers in the course of privatization of objects of state-owned property

According to part two of article 19 of the Law of Ukraine "About privatization of the state-owned and municipal property" the Cabinet of Ministers of Ukraine decides:

Approve the Procedure for involvement of advisers in the course of privatization of objects of state-owned property which is applied.

Approved by the Resolution of the Cabinet of Ministers of Ukraine of November 30, 2016, No. 878

Procedure for involvement of advisers in the course of privatization of objects of state-owned property

General provisions

1. This Procedure determines the mechanism of attraction and selection criteria of advisers in the course of privatization of subjects to big privatization for provision of services by preparation for privatization and sale of such objects.

Involvement of advisers to preparation and sale of the subjects to big privatization which are in municipal property can be performed on the methodological principles, as well as for the objects which are in state-owned property.

2. In this Procedure terms are used in such value:

1) the service provision agreement of the adviser - the written instrument which determines obligations of the parties by preparation, to the organization and carrying out sale of subject to privatization, the procedure and payment due dates of services of the adviser concluded between Fund and the winner of tender and if services of the adviser are financed by the international organization - between Fund, the winner of tender and such international organization;

2) tender on selection of the adviser (further - tender) - determination on competitive basis of the adviser for rendering services in preparation for privatization and sale of object of state-owned property;

3) the tender documentation - the statement for participation in tender, the competitive offer, supporting documents and essential conditions for inclusion in the service provision agreement of the adviser which are filed by the applicant according to the requirements specified in the information message about tender;

4) the contest committee - temporarily operating facilitative branch formed by Fund of state-owned property (further - Fund) for the organization and carrying out tenders;

5) the company - the subject of managing, single property complex or the block of shares of which is subject to privatization;

6) the applicant - physical person or legal entity (the resident or the nonresident) which showed willingness to take part in tender and submitted the Share tender documentation;

7) the adviser - person who under the contract with privatization authority undertakes obligations on provision of services in the course of privatization of objects of the state-owned and municipal property, including search of potential buyers of subjects to privatization, with determination of the starting price of subjects to big privatization;

8) the participant of tender - the applicant allowed to participation in the second stage of tender;

3. Advisers are attracted with respect for the principles of the competition, equality, general availability, publicity, transparency and independence of members of the commission.

Persons determined by part two of article 8 of the Law of Ukraine "About privatization of the state-owned and municipal property" cannot be advisers. The advisers involved to preparation of object for privatization cannot be buyers of such object.

4. The main objectives of advisers are:

information collection and carrying out analysis of economic, technical and financial performance of activities of the company;

ensuring reduction of the main indicators of accounting records of the company in compliance with accounting standards;

ensuring carrying out audit;

preparation of financial model and determination of investment appeal of the company, possible ways of its increase, ways of restructuring of accounts payable, recommendations about establishment of basis prices and rates for products and service, marketing policy, other actions;

determination of the starting price and preparation of information packet on subject to privatization;

preparation of documentation concerning the company according to requirements of the legislation on protection of the economic competition and about environmental audit;

implementation of actions for search of the potential investor.

Additional tasks can be established by the service provision agreement of the adviser.

5. Criteria by which competitive selection of advisers is performed are:

1) experience at the applicant in accomplishment of similar tasks;

2) availability at the job seeker of representation and possibility of involvement of other consultants;

3) competence level (qualification, experience, knowledge and skills);

4) efficiency of the technique of preparation for sale, sales strategy offered by the applicant, level of material logistics and project organization;

5) the terms of preparation for sale offered by the applicant and sales of subject to privatization.

6. Fee of advisers is performed according to the decision of the Cabinet of Ministers of Ukraine made according to part three of article 19 of the Law of Ukraine "On privatization of the state-owned and municipal property" at the expense of means of the government budget and/or the international organizations.

In case of fee of the adviser at the expense of means of the government budget such payment is performed within the budget settings provided by the government budget on accomplishment of the actions connected with carrying out privatization of state-owned property. In case of complete of the accomplishment by the adviser of terms of the contract about provision of services concluded with the adviser, part of amount of remuneration in the fixed size constitutes no more 0,5 of percent of asset cost of the company in the amount of the parts belonging to the state according to data of the financial reporting for the last accounting year, in case of sale of subject to privatization the size of variable part of remuneration to the adviser constitutes no more than 2 percent of cost of the sold subject to privatization.

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