Press release on process of implementation of the Resolutions of the President of the Republic of Uzbekistan and other Governmental Decisions by the State Property Committee during the year of 2007.

The work done by the State Property Committee of the Republic of Uzbekistan and its Market Infrastructure Organizations during the year of 2007 was aimed at fulfillment of the tasks determined by the Decree of the President of the Republic of Uzbekistan dated July 20, 2007. No UP-3897 "On additional Measures aimed at deepening of the processes of Privatization of Strategic Branches of Economy", and the Resolution of the President of the Republic of Uzbekistan dated July 20, 2007. No PP-672 "On Measures aimed at further Deepening of the Privatization Processes and active Attraction of Foreign Investments during the years of 2007-2010", as well as other Governmental Decisions.

Drafts of the Laws of the Republic of Uzbekistan "On the Securities' Market", "On Privatization of the State-owned Properties", "On the Real Estate Activities", the new edition of the Law "On the Valuation Activities", Resolution by the President of the Republic of Uzbekistan "On further Perfection of Valuation Activities and increasing the Responsibility for the Quality of the Valuation Services rendered", Resolution by the Cabinet of Ministers "On Measures aimed at Perfection of Mechanism for Sale of the State-owned Assets and fulfillment of Investment Obligations undertaken by the Investors" were elaborated.

During the year of 2007 the main attention of the State Property Committee was directed at implementation of the Resolution by the President of the Republic of Uzbekistan dated July 20, 2007 No PP-672 "On Measures aimed at further Deepening of the Privatization Processes and active Attraction of Foreign Investments during the years of 2007-2010". It is necessary to note, that the Privatization Program approved by that document determines the basic strategy of transformation process for the state-owned property ownership and further development of the economy's private sector for the 3.5 years' period. According to that Program 1432 state-owned assets and enterprises are subjected to sale.

In view of further attraction of foreign investments, the State Property Committee arranged and conducted 55 meetings, 54 seminars and "round tables" with participation of over 70 foreign companies and official bodies, organized 10 business trips of representatives of State Property Committee and its subordinated bodies to foreign states to perform presentations of the Privatization Program of the Republic of Uzbekistan.

As a result of the measures implemented in 2007 instead of forecasted 359 state-owned assets, 408 (113,6%) were sold, with 129 through exchange sales and 279 (68,4%) sold at the over-the-counter securities market with undertaking of investment and other obligations by investors being among them. 

By decisions of the State Tender Commission - 28 state-owned assets at enterprises and sites as a whole, with total investment of 244,5 million USD and 21,5 billion Uzbek soums were sold, besides that, undertaken investment obligations on modernization of enterprises amounted 136,3 million USD (growth by 3,7 folds compared with the year of 2006) and 12,9 billion Uzbek soums.  

Through the Auction and Competition Sales - 185 sites were sold, including those with the investment obligations undertaken for the total amount of 33,5 million USD and 14,7 billion Uzbek soums (growths by 41,9 and 8,6 folds respectively).  

At "Zero" purchase price - 15 sites were sold in return for the investment obligations totally amounting over 7,6 billion Uzbek soums and 28,8 million USD (in 2006 among the state-owned assets sold at "zero" purchase price, the investment obligations were only those in national currency). 

The total sum of agreements on sale of the state-owned property concluded with foreign and local investors with inclusion of the investment and other obligations amounted 309,5 million USD and 57,1 billion Uzbek soums, thus exceeding the figures of 2006 by 4,4 and 3,7 folds respectively.   

In 2007 investment obligations stipulated by 105 agreements totally amounted 14,23 million USD and 10,31 billion Uzbek soums, thus providing the average increase in the total volume of attracted investment by 1,6 times per-each-agreement.

According to the operative data during 2007 the inventory of state-owned properties was done at 25695 enterprises and organizations. 

Following the requirements of the Resolution by the President of the Republic of Uzbekistan dated April 26, 2006 No PP-335 and Resolution by the Cabinet of Ministries dated October 16, 2006 No 215, "Regulations on order of Record-Keeping and Conduct of the Register for the State-Owned Enterprises and Institutions" were elaborated by the State Property Committee and registered at the Ministry of Justice on September 3, 2007 under the No1708, based on which each state-owned enterprise is being awarded with an according certificate.

In process of implementation of the Program for Development of the Securities' Market during 2006-2007, approved by the Resolution of the President of the Republic of Uzbekistan dated September 27, 2006 No PP-475 "On measures on further Development of the Securities' Market", and upon the result of the job done on perfection of the normative and legislative acts in-force and development of the new ones for regulation of the securities' market, the following indicators were achieved:

• total turnover of the securities' market (stocks and corporate bonds) in 2007 amounted 407,99 billion Uzbek soums thus growing by 119,3% compared to 2006.
• aggregate turnover of the secondary securities' market (stock and corporate bonds) in 2007 amounted 134,6 billion Uzbek soums, having decreased by 40,8% compared to 2006.

With the aim of implementation of corporate governance principles, effective management of the state-owned assets at the economic entities with presence of the state-owned shares within their Charter Funds, as well as raising the legal literacy among the shareholders, Supervisory Boards' chairmen and members, over 180 TV programs (at "Uzbekistan" and "Business news"), 130 radio programs were arranged and 370 articles (at newspapers "Narodnoe slovo", "Birja", "Chastnaya sobsvennost") were published. In 2007 with participation of the State Property Committee publication of a magazine "Enterprise Management" has been started.

For wider popularization and to the knowledge of potential investors and the population as a whole, along with advertisements, announcements and current news, the following items have been also placed at the State Property Committee's official web-site http://www.gki.uz/: Privatization Program for the years of 2007-2010, normative-legislative acts concerning privatization processes, guarantees and privileges for foreign investments, brief company profiles for 684 enterprises and sites in aspects of regions, branches and forms of sale along with other kinds of information useful to investors in Russian, Uzbek and English languages. During 2007 the State Property Committee's web-site has been visited over 247 thousand times by almost 50 thousand users.

The advance copy of the Book of the State Property Committee of the Republic of Uzbekistan "Privatization in the Republic of Uzbekistan for the period of 2007-2010: Opportunities for Investments", has been issued in CD electronic version with further dissemination among the foreign embassies, offices of international organizations and companies accredited in the Republic of Uzbekistan.