Gov't puts up 77 facilities for privatization

By Azernews

By Nigar Abbasova

The government of Azerbaijan, which has opted for privatization as part of its anti-crisis actions, continues the process of transferring enterprises from the public sector to the private one.

A total of 77 state enterprises and facilities will be put up for privatization at the auction to be held by Azerbaijani State Committee on Property Issues on November 8, the authority reported.

Privatization of the state-owned property is considered to be a part of an action plan aimed at revitalizing the economy of the country amid low energy revenues.

The enterprises to be put up for privatization are engaged in the spheres of cotton growing, agricultural chemistry, transport, construction and others, while they are located both in the capital and other regions of Azerbaijan.

Some 51 small enterprises and facilities, including non-residential areas of 10-400 square meters, will be put up for privatization. The cost of the facilities ranges from 6,500 to 800,000 manats ($ 4,053 – $498,800).

Small state-owned enterprises are located in the cities of Baku, Ganja (second largest city), Sumgayit, Mingachevir, as well as Absheron, Sheki, Neftchala and Sabirabad regions of the country.

The portal for privatization – privatization.az, launched in July 2016, reflects all necessary information about the facilities, their addresses, location, and even initial cost and aimed at facilitation of the process.

The process is expected to attract both foreign and local investors, as well as improve the business environment of the country, “Why Azerbaijan is special” section available on the portal is considered to be important in this regard, as it explains the reasons and advantages of investing in the country. Moreover, the portal is available in two languages - Azerbaijani and English.

Privatization urges improvements in the company through raised level of competition. When a state-owned entity is privatized it is forced to adapt to the sector by providing better services or products to survive in the market.

More than 1,000 different public facilities were privatized in Azerbaijan in 2015.