2006 outcomes of the privatization inspire some optimism. Last year the stocks of companies sold to foreign investors in Uzbekistan grew 2.2 times compared with that of 2005 and reached US.2 million, Uzbekistan Today News Agency reported.
This dynamic increase witnesses that the current institutional conditions in the Uzbek economy and society are increasingly encourage foreigners to invest in the development and modernization of Uzbek companies, according to the report.
According to the State Property Committee, last year 30 contracts were signed with foreign investors. At the same time, the investment liabilities in privatizing the ventures made up US.6 million and 7.2 billion soums.
The State Property Committee enumerated the largest transactions on state shares of establishments sold to foreign investors in 2006. For instance, the Austrian SEID Handelsgesellschaft m.b.H purchased 99.43% of state stocks of Khorezm-Shakar JSC worth US.6 million with the investment liabilities of US.6 million and 7.2 billion soums, in keeping with the report.
The American Carlton LLC bought 53% worth US.5 million of state shares of Quartz JSC, the largest manufacturer of construction glass in Uzbekistan. The Chinese Finex LTD purchased 25.4% of Uzbekiston pochtasi JSC (Mail of Uzbekistan) worth US.6 million, the report said.
In 2006 foreign investors obtained the state shares of two regional electric power distributors worth US.8 million. The Russia's Peresvet-Invest Closed Joint-Stock Company obtained 75% of Samarkand Elevator Constructing Plant JSC worth USnewscat="%" number="50".3 million.
Under the Privatization Program for the period of 2006 and 2008 the government of Uzbekistan made profound changes in selling the strategically important establishments and it will have a positive impact in the future, the report has underscored.
If the government aims to preserve its shares in a venture, it will be at least the controlling stock of strategically significant enterprises. In other cases a venture will be completely privatized. According to the Program, the Government plans to privatize the unsold state shares of 1,269 companies. Particularly, it intends to sell 100% of state shares of three chemical plants: Ferghana Plant of Furan Compounds, Ferghana Chemical Fiber Plant and Samarkand Chemical Plant, 90.42% of Uzagriculturalmachholding, 82.75% of Tashkent Tractor Plant JSC and 88.8% of Sino JSC.
The list of 105 companies on sale at the zero price with investment liabilities include the establishments of social and transportation infrastructure, polygraph and local industry, the report said.
