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State-owned companies to be put up for auction with maintaining profile

«State-owned enterprises that will be subject to privatization, will be put up for auction on the condition of maintaining the company’s profile,» Mirlan Bakirov, Chairman of the State Property Management Fund of Kyrgyzstan, said during a briefing today.

He recalled the privatization procedure. First, the State Property Management Fund determines the list of objects that will be sold. It is approved by a government decree and included in the privatization program. This program is agreed with the Parliament.

«When the Parliament adopts the privatization program, there will be a revaluation of all the objects included in it. After that we will put them up for auction. For example, if it is a plant, its profile will be maintained. In addition, the new owner will have to invest funds and increase its capacity every year, create new jobs, and conduct an inventory. This process will be controlled by the State Property Management Fund and, if it has powers, by the Parliament,» Mirlan Bakirov said.

«If the new owner does not fulfill these requirements, contractual obligations, then the State Property Management Fund can sue and demand to return the object to the state’s ownership,» he concluded.