Public Property Agency of Moldova puts up to tender assets worth over 1.5 billion lei

Chisinau, 27 July /MOLDPRES/ - The Public Property Agency (APP) has announced the organization, starting from 27 July, of a new round of privatization of state public property. The enterprises Air Moldova, Tutun-CTC, glass factory, Barza Alba and other enterprises will be put up to sale. The estimative price of putting up for privatization of state property assets at this round is 1.574 billion lei.  

At auctions, held at the Securities Exchange of Moldova on 3-7 September 2018, the Barza Alba majority state capital company, Tutun-CTC enterprise will be put up to sale; they have been repeatedly put up for privatizations, but were not demanded by investors. Also, 11 blocks of stocks from entities maintaining roads will be auctioned. The overall sum of financial means, related to the initial selling price of these companies or blocks of stocks, exceeds 983 million lei.  

The biggest enterprises to be put up for commercial tender are the Chisinau-based glass factory, polygraphic enterprise from the Moldovan capital, hotel Zarea, which were put for tender in the previous years too, yet, unsuccessfully. The Air Moldova air company will be put up for tender as well. This company ‘’is put up for tender for the first time ever, proceeding from the need to attract private capital for the modernization of the air fleet, improving the quality of services provided and extending the range of services, attracting transit passengers,’’ according to APP. The initial price of putting assets up to commercial tender is of 526 million lei.

The movie theatres Prut from Falesti and Patria of Leova will be repeatedly put up for tender. The basic condition for turning the movie theatres private is transforming them into community and entertainment centres.  

The auction for the privatization of 16 complexes of real estate, 12 state enterprises (single patrimony complexes) and an unfinished object will take on 5 September (the deadline for submitting applications is 4 September at 16:00). The overall price of the assests put up for this auction is 63.4 million lei.   

Three rounds of privatization of state public property assets, subjected to privatization, were held in 2017. Seventy three assets were put up for sale within the rounds (most of them repeatedly), including: 25 blocks of stocks at tenders through the Securities Exchange, 16 assets at commercial tender, 29 assets at auction and three assets at investment tender. The incomes from privatization paid to the state budget last year amounted to over 166 million lei, according to the Public Property Agency.

The state budget law for 2017 was providing for getting 220 million lei from the sale and privatization of public patrimony for financing the budget deficit.

Under the state budget law for 2018, among the main sources of financing the state budget deficit, there are also the means got from the sale of blocks of stocks worth 390 million lei.

(Reporter V. Bercu, editor L. Alcaza)