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Privatization process to stipulate opening of new working places

15 February 2017 17:47 (UTC+04:00)
Privatization process to stipulate opening of new working places

By Nigar Abbasova

The ongoing privatization process, launched in 2016 and designed to attract both foreign and local investors to Azerbaijan, will also create new work places.

Chairman of the State Property Issues Committee Kerem Hasanov said that so far that the process has allowed to open more than 300,000 new work places.

Hasanov made the remark during "Investments in Privatization: New Opportunities and Challenges" forum in Baku on February 15.

Bringing together representatives of the Confederation of Entrepreneurs (ASK) and the Azerbaijan Export and Investment Promotion Foundation (AZPROMO), as well as representatives of more than 100 largest holding companies, associations, groups, companies and unions, the event provided the information about the order of participation in privatization and new opportunities to raise investments in the country.

Hasanov further added that more than 1.2 million citizens of the country participated in the privatization process, mentioning that over 250 individuals became shareholders of the state objects.

Besides, foreign investors from the USA, the UK, Turkey, Germany, China, and Finland also participated in the process.

He stressed that the state property privatization resulted in emergence of such enterprises as Holcim Azerbaijan cement plant, beer plant Baltika Baku (Carlsberg Azerbaijan), AzNar juice production plant, a number of furniture factories and others.

The state property privatization is defined as an important direction of the economic in Azerbaijan. Over 300 new state-owned enterprises and facilities declared open for privatization in the country last year.

The official also gave an insight in new mechanisms, applied in the sphere of privatization, saying that manufacturing enterprises will further be put up for privatization via investment tenders.

“Potential buyers will have to pursue special programs and business plans. This will allow the enterprises to operate in line with international standards, became more competitive and as a result create new working places,” he clarified.

Hasanov said that new proposals, including expansion of means of privatization, reduction of cost of enterprises, which have already been put up for sale in auctions, and others, have already been submitted for the consideration of the Government.

The forum saw a signing ceremony of MoU between the State Committee and ASK on holding of conferences, forums and info tours in enterprises offered for privatization.

The Committee will hold the next auction on state property privatization on February 28, 2017. Seventy-five state properties (20 joint stock companies, 29 small enterprises and facilities, 25 non-residential areas and one incomplete building) - will be put up for auction.

The majority of small enterprises to be put up for the auction are located in the cities of Baku, Sheki, Mingachevir, Sumgait, Lankaran, as well as Azerbaijani districts.

Deputy Economy Minister Niyazi Safarov, addressing the event, said the mechanisms developed for investment and export promotion will create a new environment for the regulation of entrepreneurial activity in the country, mentioning that the mechanisms have already provided an impetus for a strong economic activity in the country.

He mentioned that so far some 98 entrepreneurs (88 legal persons and 10 individual entrepreneurs) have received 106 documents of investment promotion for the implementation of different projects in the non-oil sector.

“The documents allowed to implement a number of projects in such spheres as industry and agriculture. More than 1 billion manats will be invested in these projects,” he said, further elaborating that most of the projects will focus on the production of goods that are currently being imported to the country.

Safarov also talked about significant changes in the state control over entrepreneurial activity, mentioning a reduction in the number of business inspections, facilitation of licensing procedures and others.

Only 60 inspections on entrepreneurship activity were carried out in 2016, (as compared to 60,000 in 2015), while the number of required licenses dropped from 59 to 37.

Safarov said that the industrial development in the country has already switched to a new stage of development. In 2016, non-oil industry grew some 5 percent as compared to the figures of 2015.

The deputy minister mentioned that the role of strategic road maps is of utmost importance in this regard.

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Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova

Follow us on Twitter @AzerNewsAz

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