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Official News

Tuesday, 7 April 2015

State Property Management Department Submits 2014 Performance Report

Chaired by Prime Minister Hovik Abrahamyan, the Government discussed the State Property Management Department-submitted report on key activities and priority tasks in 2014 in compliance with the Government’s Action Plan, as well as the Department’s estimated performance report.

State Property Management Department Head Arman Sahakyan reported that in the period under review 7455 facilities were registered in the register of public property, including 14 from other countries, 3 from the NKR.

The Register featured the amount of public stake in the authorized capital of 380 legal entities (total amount of public participation is AMD119235334.3, along with 1923 real asset items (total area 1388385.28 sq. meters). The Register also featured 5887 intangible assets on the balance sheet of public administration and other state institutions: 2841 vehicles and 12 waterways, as well as 7007.4 km-long motor roads, including roads of interstate relevance - 1686.5 km, national - 3572.1 km and regional - 1748.8 km.

Arman Sahakyan also provided information on the proceeds of privatization, sales and lease of State property. Accordingly, the privatization of State property in the past year amounted to AMD178.352.0 thousand, of which AMD144.150.0 thousand was transferred to the State budget, AMD34.202.0 thousand – to the relevant municipal budgets.

In 2014 the proceeds from disposal of property were as follows: from disposal of property amounted to AMD1.665.604.0, of which AMD1.488.783.0 was transferred to the State budget, AMD176.821.0 thousand - to the relevant municipal budgets.

Non-residential lease agreements concluded by the Department resulted in AMD277.546.8 thousand actual earnings for the State budget instead of AMD249.000.0 as projected.

The lease agreements on installation and maintenance of communication equipment on State-owned buildings’ roofs and attics resulted in AMD4.414.4 thousand actual earnings, of which AMD937.8 thousand was transferred to the State budget and AMD3.476.6 thousand to the budgets of relevant SNCOs.

The amount of tax revenue from State-owned land cadastral value amounted to AMD57.465.0 thousand, of which AMD1.968.882.6 was transferred the State budget, with AMD211.023.0 thousand transferred to municipal budgets.

The SPMD Head advised that in the period under review privatization and alienation of contractual obligations were assumed by 25 buyers whose investment commitments amounted to AMD10 757 050 thousand and 4 270 thousand US dollars, and social guarantees envisages to provide 47 jobs.

According to the Department’s estimates, contractual commitments were assumed by 12 buyers, which amounted to AMD434 859 737 and 3 083 932 US dollars, with 28 jobs created as social guarantees. In the meantime, the stipulated contractual obligations were not fulfilled (or failed to) by 4 buyers, with an outstanding investment amount of AMD63.5 million.

Arman Sahakyan said the list of entities with up to 50 percent public stake has been adjusted, a prospective analysis of production facilities and activities has been implemented, and taking into account the position of authorized State bodies, a number of recommendations were made, including the draft government resolution on application of procedures concerning the Government’s representatives authorized for the management of public stake in Arabkir Children and Adolescent Health Medical Center-Institute Ltd and Anania Shirakatsi Lycee-College.

The Healthcare and Education and Science Ministries were asked to submit expert opinions regarding the management of public shares in the aforementioned institutions.

Summarizing the meeting, Prime Minister Hovik Abrahamyan referred to the objectives and priorities set for the year 2015. The Premier urged the State Property Management Department to focus on the problem of unfinished buildings and find a solution for them to complete.
 

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