The activity of State Property Committee of the Republic of Uzbekistan in 2004 was directed to the implementation of tasks according to the Decree of the Republic of Uzbekistan dated January 24, 2003 №UP-3202, strategic and directive decisions of Government determined by the protocols of meetings of the Cabinet of Ministers №1 dated February 7, 2004, №2 as of April 15, 2004, №3 as of July 16, 2004 and №4 dated October 15, 2004:

•  on achievement of good results on privatization and development of private sector in the economy of the republic;
•  on change of property structure by means of sharp reduction of state ownership in it, development of restructurization and sale to the substantial owners of ineffective enterprises, and at the zero sale;
•  on formation active functioning securities market, including the secondary one;
•  on conducting the stepwise transfer of state package of shares to the confidential body to professional management companies;
•  on development of corporate management methods in the enterprises;
•  on stimulation of prior development of small business and private entrepreneurship, on increasing their role in the development of economy;
•  on transition to the market mechanisms of sale of material resources through public sales, fairs.

For the period of 2004 there were privatized, in total, 1841 of state enterprises, establishments and shares packages, and in order to implement the Resolution of the Cabinet of Ministers dated April 17, 2003 №185 there were sold 1283 packages of shares of privatized enterprises and objects.

As a result of the conducted work on reformation of state enterprises the large-scale enterprises of chemical industry such as PA "Azot", the Samarkand chemical Plant, energietic industry - Tahiatashskaya TES, Navoiskaya TEC, station "Uzbekenergokurilish", UE "Gidrospecstroy", light industry- the Kokand textile complex, machine building industry - PA "Uzbektestilmash", communal services- regional enterprises of heat supply, Republican association "Uzbekekspertiza" and number of leading planning institutions ("Uzgiprovodhoz", "Gidprojekt" and others) changed their property form on becoming the stock companies with high investment potential.

Due to the measures on formation of favorable investment climate there were signed 76 agreements with foreigners on sale of the objects and shares packages of such enterprises as SSC "Uzkabel", LLC JV "Uzdunrobita", JSC "Ohangaroncement", JV LLC "Coca Cola bottlers Uzbekistan Ltd.", JSC "Baliqchi", JSC "Oltikul" and others for the total amount of 24.97 million USD and 21.4 bilion UZS, including acceptance of investment obligations on 17 agreements for the sum of 24.65 million USD and 4.05 billion UZS.

During the year 2004 the investment obligations for the sum 16.46 million USD were discharged bythe foreign partners, that constitutes 103.4% of annual forecast of developing the foreign investments. The implementation of measures on profound increase of shares and importance of the private sector in the economy allowed attracting the local investors, who signed 36 agreements with investment obligations for the sum of 9530.0 thousand USD and 2.85 billion UZS in the report period, to participate in the enterprises privatization process as well. And they discharged the investment obligations for the sum of 1.56 billion UZS and 1329.4 thousand USD for the year 2004. Over 60% of supplement investments are directed to the purchase of high technological equipment for modernization of privatized enterprises' production.

Introduction of flexible forms of sale of the state assets has considerably accelerated as well as the privatization of shares packages on stock market, objects through bids of the Republican Real Estate Exchange and the sale of low profitable, unprofitable enterprises at the zero redemption cost. Due to the application of mechanism of stepwise reduction of the start price there were sold the shares packages od 290 stock companies for the sum of 9.85 billion UZS, that exceeds the nominal cost of these shares for 2.3 billion UZS and 486 objects for the sum of 3.56 billion UZS that exceeds the start price of the objects for 1.71 billion UZS including the sale of 15 establishments for the sum 301.91 thousand USD for the hard currency.

On competitive bids, in accordance with the Resolution of the Cabinet of Ministers dated May 5, 2004 #209 280 objects with investment obligations for the sum of some 100 billion UZS have been sold at the zero redemption price.

In total for the year 2004 the shares packages for the total amount of 51.4 billion UZS (increase by 1.2 times) of the privatized enterprises were sold on the stock and nonstick bids, and also the state shares of 365 companies with limited liability for the sum of 3.7 billion UZS were sold through the bids of the Republican Real Estate Exchange, at that, in comparison with the year 2003, the number of LLCs, state shares have been sold and increased for 5.4 times, and the amount of sale have been increased for 3.5 times, that it is the sign of high activeness of private entrepreneurs.

The most specific position of sold shares of privatized enterprises is 48.7% and it is the ownership of foreign investors.

In comparison with the year 2003 the volume of state objects sale have been increased for 1.4 times, it is mostly in productive and administrative spheres, in RREE and its offices.

As per status for January 1, 2005 7912 of state objects for the sum of 12.5 billion UZS have been sold.

Due to the denationalization and privatization, the total receipt of means for the year 2004 on all sources have constituted 78.47 billion UZS, that exceeds the volume of means receipts for the last year for 1.4 times.

The work on implementation of Decree of the Republic of Uzbekistan as of January 24, 2003 # UP-3202 in part of increasing the sizes of the authorized fund so stock companies up to the sum which is equivalent for not less than 50 thousand USD or their reformation into the other organization and legal forms have been completed. For the period of January 1, 2003 - January 1, 2005. The size of the authorized funds have been increased in 1421 stock companies according to the legislation. As per status January 1, 2005 the authorized funds of 2271 stock companies meet the requirements of the Resolution.

The analysis of introduction of the new corporate culture in the privatized enterprise with the state ownership showed that the change of management staff and principles of management influenced positively on efficiency of production and 84.3% out of worked stable in 2004. The measures on formation of favorable conditions (environment) for development of small business have been issued. In the process of implementation of the resolution of the Cabinet of Ministers dated February 5, 2004 #57 there was the liquidated distributive system on 41 kinds of high liquid resources and the mechanism of their sale through stock, public sale and direct agreements have been introduced.

In total on the stocks of Uzbekistan Commodity Exchange the products for the sum of over 450 billion USD have been sold for the year 2004, that exceeds the level in 2003 for almost 1.6 times and also high liquid products for the sum of over 337.7 billion USD have been sold, that exceeds the level of the corresponding period of the last year for 5.5 times.

In order to implement the resolution of the Cabinet of Ministers dated May 31, 2004 #251, 37 specialized bid sites on wholesale of goods have been formed.

Mostly the forecast highlights of the program of development of small entrepreneurship have been implemented.

51.1 thousand objects of small and private business were registered in 2004 and to the period of January 1, 2005 the number of registered subjects of entrepreneurship have constituted 286.5 thousand units, 100.2 out of them are private enterprises. From all registered subjects of small entrepreneurship 257.3 thousand or 89.8% are functioning ones.

At the expense of development small entrepreneurship 427.6 thousand of new working places have been formed, that exceeds the forecast for 1.2 times.

The credits for the sum of 257.3 billion USD, that exceeds the level in 2003 for 23% were directed to the financing of investment projects of entrepreneurship subjects.

The volume of sale of material technical resources to small private entrepreneurs on stock and fair bids has been increased for 1.1 times in comparison with corresponding period of 2003 and has constituted 202.3 billion USD. The products, produced by entrepreneurs, for the sum of 161.3 billion USD have been sold.

At direct participation and financial support of GK, in cooperation with organizations of market infrastructure the republican competition for awards of the President of the Republic of Uzbekistan "Tashabbus 2004" has been held, where 12 905 subjects of entrepreneurship participated in.