State property in Turkmenistan will be transferred to the management of private companies

The Turkmen press published the text of the law "On trust management of state property", which was adopted during the third session of the Khalk Maslakhaty (upper house) of the Milli Gengesh (Parliament) of Turkmenistan.

The full text of the document can be read here .

The law defines the procedure for transferring state property to private legal entities and was adopted to increase the efficiency of use and profitability of property, attract external and internal investments.

The decision to transfer state property to private management in agreement with the Cabinet of Ministers is taken by the Ministry of Finance and Economy. It also controls the work of the trustee.

State property is transferred on a competitive basis or by direct transfer. When transferring state property to management through a competition , candidates must submit a business plan and a guarantee fee in the amount of 10% (it is returned after the fulfillment of contractual obligations) of the market value of the object.

In this case, the decision on the winner is made by the competition committee, which includes representatives of the Ministry of Finance and, if necessary, other ministries and departments.

At the same time, address transmission without competition is not limited by law in any way. The relevant decision is made by the Cabinet of Ministers in all cases when it is considered necessary. There are no requirements for a business plan and payment of a guarantee fee.

In addition, in contrast to the bankruptcy, in the case of a targeted transfer, the manager must not be registered as a legal entity, have work experience and possess assets in the amount of at least 50% of the market value of the object. It is enough that the manager has been profitable for the last two years and has no overdue loan debts.

The contract on the transfer of property for management to the winner of the tender shall be concluded for a period not exceeding five years. In the case of investing the manager's own investment, the contract can be concluded for a period of up to ten years.

As financial support, the manager, who is in charge of the state property, can count on government loans, grants and loans, as well as on a deferral for the payment of loans.

The manager can set prices for the products or services produced and receive up to 20% of the income from the operation of the facility.

Source: Chronicles of Turkmenistan