Prime Minister Nikol Pashinyan visited the State Property Management Committee of the Ministry of Territorial Administration and Infrastructure to discuss the Committee’s activity report for 2023.
Chairman of the State Property Management Committee Arnak Avetisyan and his deputies reported on the activities carried out during the reporting period.
The property alienations and investment obligations were presented in detail. It was noted that the monetary value of alienation and privatization of state property in the previous year was 34.9 billion AMD, which is about 14.2 billion AMD more than in 2022.
From the point of view of reducing the number of cars assigned to state bodies, 2023 was highlighted. the number of alienated vehicles was 488, which is by 386 more than in 2022. The total value of alienated vehicles was 340 million AMD, which is 166% more than last year’s figure. In terms of vehicle optimization, new standards for vehicle allocation and centralized process management to be introduced in 2024 were discussed.
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Revenues from rental amounted to 674 million AMD, which is 43.2% more than in 2022.
During the presentation of the report, it was noted that as a result of the transactions caried out in 2023, the investors assumed a total investment obligation of 37 billion AMD.
Referring to this process, the Prime Minister noted. “We have a very long history of privatization and during these privatizations we also have such cases when something was privatized 25 years ago, the commitments, investments, jobs, etc. were recorded, but that building continues to stand like that. Do we have any reference and mechanism here and what is our approach in general? Are we working in this direction?”
It was reported that in 2023, 10 lawsuits were filed on the basis of non-fulfillment of the obligations assumed by the private sector. The claims are about enforcing the obligations.
According to those in charge, mostly decisions were made in favor of the State Property Management Committee. If the obligations have not been fulfilled, a lawsuit is filed in the second stage with the demand to return the property to the state.
In response to the Prime Minister’s question, it was mentioned that there are already 4 cases of returning property to the state. 3 are plots of land and one is real estate.
Thus, as a result of the activities of the State Property Management Committee in 2023 budget revenues amounted to 15.4 billion AMD, 72.2% more than in 2022. This indicator is unprecedentedly higher than the indicators in the field of state property management in recent years. It was reported that 30 percent of the proceeds from the privatized state property and land is allocated to the community.
Prime Minister Pashinyan inquired, “In all cases, when we privatize state property, we give a share to the community, and now we have increased the share and are going to increase it more?”
Minister of Territorial Administration and Infrastructure Gnel Sanosyan noted that 30 percent of the price of property is allocated to the community and added: “Now we also offer to give money from the sale of public land as well. We have many cases where the community is not so interested in the alienation of state property that is physically located in its territory. By allocating this money, we are motivating the community so that it is also interested in selling this unused property, taking into account two circumstances, exactly 30 percent of the money will go into its budget from the sale, and then there will be an economic effect in its community,” said the minister.
It was noted that in 2023, 2.3 billion AMD were provided to communities from the sale of state property.
Reference was also made to the works carried out in the “Karen Demirchyan Sport and Concert Complex” CJSC. In particular, it was noted that in 2023 119 events were held in the Sport and Concert complex, from which 768 million AMD of income was received, which is 18% more than in 2022. It was noted that major construction works were and are being carried out at the Sport and Concert complex. the pumping station has been completely renovated, the design estimate documents of the ventilation and fire protection systems have been obtained, preparatory works for the repair of the roof are being carried out.
Issues related to the systemic reforms implemented in the sector and the strategy of state property management were also discussed.
Prime Minister Pashinyan inquired about how many state commercial organizations exist. According to those responsible, their number reaches 146.
The Prime Minister emphasized the monitoring of their activities. “At least we should know what is happening there, if it works, we should understand how it works. If it has potential, or it doesn’t, etc., here we have to have a separate approach,” said Nikol Pashinyan.
It was noted that the implementation of monitoring began in 2022. “At least it’s not bad that we got to that topic and touched on it. I think that we should address it case by case, because there are different companies, with different nuances and directions, but we should be very diligent there, because we are talking about the management of state budget revenues, financial flows and non-financial assets. Let’s agree that we will quickly come up with a formula on how we will act,” said the Prime Minister.
It was noted that in 2023 “Republic Plaza” OJSC was founded for effective property management and further privatization through the stock exchange, which is a new phenomenon from the point of view of state property management.
INFORMATION AND PUBLIC RELATIONS DEPARTMENT OF THE OFFICE OF THE PRIME MINISTER OF THE REPUBLIC OF ARMENIA