During the latest session of the Legislative Chamber of the Oliy Majlis of Uzbekistan, the draft law on privatization processes in the country was deliberated in its first reading, the Legislative Chamber's press service reports.
The draft law comes as part of the Strategy for Management and Reform of State-Participating Enterprises for 2021-2025. The objective is to reduce the state's involvement in the economy to a reasonable level and foster a more favorable investment climate. To achieve this, the State Asset Management Agency is actively working to reduce the number of state-owned enterprises by 75%.
The primary purpose of this bill is to ensure that the privatization of state property adheres to principles of openness, transparency, legality, and equal opportunities for buyers to participate in public tenders. By instilling investor confidence in the privatization outcomes, the legislation aims to expedite reforms aimed at reducing state participation in the economy.
The drafting process involved studying international experiences in privatization, along with the input of experts from various international financial organizations such as the World Bank, European Bank for Reconstruction and Development, and Asian Development Bank, as well as the participation of KPMG, Indecon Consulting, and specialists from relevant ministries and departments.
The draft law lays out the criteria for eligible participants in the state property privatization process and those who are prohibited from taking part. It also outlines the procedures for privatizing state property, including various methods such as auctions, competitive tenders, public invitation to negotiations, competitive dialogue, and exchange tenders, along with the registration of privatization results and payment procedures.
Crucially, the legislation defines property rights guarantees for privatized state property and establishes criteria for its protection.
If passed, the bill will promote transparency in the privatization processes, enable state and public oversight of privatization measures, and clarify the responsibilities of relevant bodies involved in privatization within the framework of the law.
The draft law was successfully advanced through its first reading during the Legislative Chamber session.
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