APPENDIX No 6
to the Resolution by the President of the Republic of Uzbekistan
dated July 3, 2014 No PP- _2200
NORMS AND MEASURES
aimed at simplification of the order of privatization of the State-owned facilities
1. A period, starting from the date of publication at the republican and local mass media editions of an announcement on conduct of public sales on a saleof the State-owned assets at “zero” purchase price, till the date of their conduct, shall be reduced from two months down to 30 days.
2. One of the basic terms of sale of the State-owned facilities through the salesat “zero” purchase price, along with the investment obligations, shall be the creation of the new job-places and their preservation within a one-year period since a moment of acceptance of the fulfilledinvestment obligations.
3. At absence within a 6 months period of the application for purchase of the State-owned assets at a public sale, they shall be sold with application of a mechanism of the step-by-step reduction of an initial (starting) price with a pace of 10 percent in a month, but not lower than 50 percent of an announced initial (starting) price.
4. Incaseof unrealization through public sales within a 3 months period after reduction of an initial (starting) price down to 50 percent of an initial (starting) price, the State-owned assets shall be sold at “zero” purchase price with the terms of undertaking the investment obligations and commitment to create the new job-places.
5. In case an investor pays the purchase price amount within a one-month period since a date of conclusion of anAgreement on Sale-Purchase of the State-owned Assets, he/she will be presented with a discount on an amount of the purchase payment at size of an annual refinancing rate of the Central Bank of the Republic of Uzbekistan taken by a date of conclusion of that Sale-Purchase Agreement.
6. Determinationof an initial (starting) price for the State-owned assets subject to be put on public sales, shall be performed in accordance with a cost defined by an independent valuation organization in the established order.
7.Sale of the State-owned assets is allowed with their breakup (split) by parts and transfer of the excessive (redundant) land-lots to the local State-power bodies for consequent organization on them of small industrial zones and for other purposes foreseen in accordance with the legislation.
8. Period of pay of the purchase payments, with exclusion of an amount of the initial payment, for the State-owned assets shall be set by a Seller, but shall not exceed 24 months since a date of the entry into force of a Sale-Purchase Agreement, if otherwise is not established by the decisions of the Government or the State Commission on Conduct of the Tender Sales at Sale of the State-owned Property to Foreign Investors.
9. The disposal right for the State-owned facilities sold at “zero” purchase price shall occur after fulfillment by a Buyer of the undertaken investment obligations foreseeing modernization, technical and technological re-equipment of a State-owned facility, start-up of manufacture of competitive products (services), preservation of the created job-places within a one-year period since a moment of acceptance of the fulfilled investment obligations, with entry of an according note into the State Order for an Ownership Right.
10. In case of non-fulfillment at the set periods by investors of their investment obligations undertaken at privatization of enterprises and facilities, the concluded Sale-Purchase Agreements shall be dissolved in the established order, with the consequent sale of those facilities to new owners with the terms of undertaking the concrete investment obligations on modernization, technical and technological re-equipment of production process, arrangement of output of competitive,exports-oriented products or render of services, as well as preservation of the created job-places within a one-year period since a moment of acceptance of the fulfilled investment obligations.