Legislative base

In the reporting period, State Property Committee, including organizations of market infrastructure, developed several draft laws. In particular, the committee developed draft law “On realtor activity” in cooperation with Finance Ministry, Economy Ministry, Justice Ministry, the State Demonopolization, State Committee on Land Resources, Geodesy, Cartography and State Cadastre and Chamber of Commerce and Industry of Uzbekistan and submitted to the Cabinet of Ministers. The draft law was agreed with the Cabinet of Ministers, President’s Office and submitted to the Legislative Chamber of Oliy Majlis. The lower house of the parliament passed it in the first reading.

The committee also participated in developing resolution of the Cabinet of Ministers “On introduction of changes in regulation on order of the denationalization and privatization of the state property objects”, which was approved by the government on 21 July 2006.

It also participated in developing regulation on order of transfer of the state property to balance of the state and business bodies, business entities and non-state structures, including public organizations.

Privatization

In the first half of 2010, 32 state assets were realized for US$67.44 million and 11.599 billion soums, of which US$62 million and 7.52 billion soums were investment obligations, which was accepted by investors. The investors will direct investments to modernization of production, creation of new jobs, increasing import-replacing goods production.

Largest number of objects was realized through exchanges (43.8%) and auctions (28.1%). At the same time, the deals at the competitive trades exceed deals at the exchange by 4.4 times (7.3 billion soums against 1.65 billion soums).

Corporate management

As of 1 July 2010, the State Property Committee monitors activity of 770 privatized enterprises with state share in charter capital (265 joint stock companies and 505 LLCs).

In cooperation with the State Demonopolization Committee, regional administration and Tashkent city, the committee developed and is implementing programes on financial rehabilitation of enterprises, which includes 386 insolvent, low income and unused enterprises.

The carried out measures, determined in business plans of the enterprises, 327 enterprises produced goods for 527 billion soums and they created 4,655 jobs.

In the result of implementation of the presidential decree from 18 November 2008 “On measures on further improving financial sustainability at the enterprises of real sector of economy”, 652 (39.7%) of 1,3777 joint stock companies (including 612 enterprises with state share) increased the charter capital to required volume (US$400,000) and 657 (40) were reorganized to other patterns of ownership. About 68 (40%) did not adopted any decision as they were announced bankrupt, not working and judicial processed are underway.

Renting state property

In the first half of 2010, it was planned to reveal 1,350 unused state objects. According to operative data, the Rent Centers revealed 6,653 unused non-residential state objects with total area of 1.154 million square meters in the reporting period. Out of which 724,940 square meters were rented. The work on finding unused non-residential state objects.

As of 1 July 2010, number of signed rent agreements made up 9,634. In the reporting period, the receipts from renting state assets made up 7.36 billion slims, which is up 5 times year-on-year. Total area of unused non-residence state objects, offered to renting, makes up 439,060 square meters.

Investments

The volume of actually used foreign investments on privatized enterprises within the approved investment programme made up US$6.41 million in the first half of 2010 or the forecast was implemented with 6.8% surplus.

In the first half 2010, investment obligations on 64 agreements for US$18 million and 16.14 billion soums were fully executed.

Monitoring of financial-economic indicators of privatized enterprise revealed that on acting agreements about 3,843 jobs were created and goods for 437 billion soums were produced since the agreements were signed. They receive net income for 62 billion soums.

The volume of import replacing good production made up 248 billion soums and the export volume made up 104 billion soums. The debt of the enterprises for 31 billion soums was repaid due to implementation of investment obligations by investors.

In the first half of 2010, the State Property Committee held 25 meetings and negotiations with over 40 foreign companies, including Indecon Consulting GMBH (Germany), INDORAMA GROUP (Singapore), Oman International Trade & Exhibitions (Oman), Rothschild Bank (Germany), International Monetary Fund and others.

Securities market

Total turnover of securities market (shares and corporate bonds) of Uzbekistan made up 479.54 billion soums in the first half of 2010.

Shares for total sum of 9.29 billion soums were realized through organized market, including 9.29 billion soums via secondary market. The deals with corporate bonds worth 1.2 million soums were carried out through the IPO market.

Unorganized market recorded deals with shares for 376.16 billion soums, including 162.46 billion soums in the IPO market and 213.69 billion soums in the secondary market. Besides, the IPO sector of the unorganized market registered deals with corporate bonds worth 94.08 billion soums.

Appraisal activity

Methodical base of appraisal activity is improved. The main directions of appraisal activity for 2009-2015 and five standards of property appraisal were approved.

Three of them - on appraisal of privatized object, business appraisal and real estate appraisal – were supplied with methodical guidelines on their practical use. The committee developed and placed on its website a draft standard on appraisal of automobiles.

As of 1 July 2010, number of appraisal organizations in Uzbekistan made up 112. Number of certified appraisers reached 492.