Prime Minister Nikol Pashinyan visited the State Property Management Committee of the Ministry of Territorial Administration and Infrastructure to participate in the discussion of the performance report 2022 of the department.
Deputy Prime Ministers Mher Grigoryan and Tigran Khachatryan, Minister of Territorial Administration and Infrastructure Gnel Sanosyan, Deputy Chief of Staff of the Prime Minister Bagrat Badalyan, Deputy Minister of Finance Vahan Sirunyan, Chairman of the State Property Management Committee Arnak Avetisyan, Deputy Head of the State Supervision Service Robert Bazikyan and other officials participated in the consultation.
The officials reported that during 2022 the demand for state property subject to privatization increased significantly. As a result, last year, 16 state real estates with a total volume of 20 billion 700 million AMD were alienated. Private investors have committed to implement investment projects of 84 billion AMD in a certain time frame.
During the reporting period, 220 vehicles were submitted for alienation, of which 101 were alienated. In 2023, 654 more vehicles will be assigned to the State Property Management Committee, of which the committee plans to alienate 500 during this year. During the first month of this year, 60 vehicles have already been alienated. At the same time, it was reported that 11 billion AMD were collected and paid to the state in 2022 for leased state properties, which is 200 percent more than in 2021.
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Efforts have also been made to attract state departments leasing private premises to public premises. As a result, it is expected to save more than 300 million AMD in the coming years.
It was noted that currently there are 25 real estates subject to privatization, this number may increase during the year.
Reference was also made to the systemic reforms implemented in the sector. In particular, it was reported that a new system for monitoring and evaluating the financial and economic condition of commercial organizations with state participation was introduced, monitoring of the efficiency of the use of state property was carried out, the process of renting premises for state needs was regulated, a simplified procedure for transferring movable property between state bodies was introduced, the Sports and Concert complex was turned into into a CJSC, amendments were made to the Land Code. Reforms have been carried out in the areas of free use of state property, control over the fulfillment of investment obligations, leasing of state property.
Reference was also made to the introduction of the system of e-auctions.
Summarizing the consultation, Prime Minister Pashinyan instructed to develop a separate platform where all state real estates subject to privatization will be presented with full information. Nikol Pashinyan emphasized the application of such regulations and mechanisms that will ensure the full implementation of all obligations undertaken by investors who have acquired state property, according to the established schedule. “We have to be flexible in this area. It is necessary to pay special attention to capital investments and the substantive part of the project in the process of privatization. The main issue is the efficient use of the property, to what extent an area can be converted from unusable to usable. Our long-term goal is that the privatized enterprise works, pays taxes and develops,” said the Prime Minister.
INFORMATION AND PUBLIC RELATIONS DEPARTMENT OF THE OFFICE OF THE PRIME-MINISTER OF THE REPUBLIC OF ARMENIA