Privatization of state property decreases twice

The price of state property privatized by the National Agency of State Property in 5 months is GEL 35,457,138, which is approximately 2 times less compared to the same period of last year.

Georgia’s Ministry of Economy and Sustainable Development said that compared to this year, in the first five months of 2018, the National Agency of State Property sold the state property worth GEL 60,984,612.

Also, last year, as a result of selling state property, GEL 116,892,431 was transferred to the state budget, which resulted in 151% fulfillment of the privatization plan.

Ex-Minister of Economy Giorgi Kobulia stated the National Agency of State Property planned to sell state property worth of GEL 170 million. According to Kobulia, privatization of large real estate worth of GEL 30 million and state enterprises worth GEL 20 million were planned to be sold.

However, his former deputy and now minister Natia Turnava set a plan, according to which, state property worth GEL 70 will be sold this year, which can be increased to GEL 100 million if possible.

To note, this year, by the National Agency of State Property could not sell any state property ready for privatization. According to the agency, only one auction was announced in 5 months for the privatization of the state enterprise, but the auction was not held due to the absence of the participants.

Currently, the LEPL National Agency of State Property manages 97 state-owned enterprises, which, according to the information provided by the Agency, brought a profit of GEL 19.6 million.

In addition, in 2012, the National Agency of State Property managed 490 enterprises, 463 in 2013, 442 in 2014, 282 in 2015, 180 in 2016 and 127 enterprises in 2017.

Minister Turnava says it is hard to say precisely how much the state will get after the privatization of some property is finished.

“The cost of the property in the privatization list depends on many factors. So it is not serious about naming the exact cost,” the minister said.

She noted the privatization process has to be accelerated to use the lands or property owned by the state in the economic processes.

According to the Economy Minister, reorganization of the National Agency of State Property and also the introduction of the electronic system of privatization will serve the acceleration of the privatization process.

“The property management agency and the Service Agency of the Ministry of Finance will be united, which gives us the opportunity that the property will be sold only by one agency…Also, it is necessary to digitalize services of property privatization,” she added.

Turnava said this process will likely take 6 months, adding the platform will be ready at the beginning of the next year.

“In parallel, an electronic database is being created, where all state property will be listed. This will help us to offer the investors the property which is desired by them,” she noted.