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Official News

Monday, 5 February 2018

Karen Karapetyan Briefed on Activities Implemented in State Property Management Sphere

Chaired by Prime Minister Karen Karapetyan, a consultation was held today in the Office of Government to discuss the activities and priorities implemented by the State Property Management Department (SPMD) in 2017, and formulate the tasks set for 2018.

SPMD Head Arman Sahakyan reported that the proceeds of State property sales rose to 685,745.8 thousand drams, of which 544,051.6 thousand was contributed to the State budget of the Republic of Armenia, with 141 694.2 thousand transferred to community budgets.

The proceeds from alienation were 473.5% up the index of 2016. The privatization of State property generated 66,415.8 thousand drams in total receipts. AMD 62,334.4 thousand was transferred to the State budget of the Republic of Armenia, 4,081.4 thousand - to community budgets (5.5% more than in 2016). The actual receipts from the lease of public assets rose to AMD 398 million, which is 8% more than in 2016.

AMD 156,160.5 thousand was received from the contracts on installation and maintenance of communication facilities on the roofs and in the garret areas of public of buildings, of which 40,793.7 thousand was transferred to the State budget (including 9 481.2 thousand – to outsourced budgets of other public institutions). AMD 166,366.8 thousand was transmitted to the budgets of relevant SNCOs, which is 385% more than in 2016. The receipts from the payment of the cadastral value of State-owned land amounted to AMD 367,393.4 thousand, 852% more than in 2016. The funds so collected amounted to AMD 2,046,278 thousand, which is 165.9% more than in 2016. 1,390 billion drams were transferred to the State budget of the Republic of Armenia, with an increase of 175 percent. As a result of lawsuits and negotiations with various debtors, AMD 59,316.1 thousand was returned to the State budget.

Arman Sahakyan reported that in 2017, 704 units of vehicles taken away from State agencies under the optimization campaign were alienated by auction. As compared to 2016, the quantitative increase was 80 percent, and the value surplus - 110 percent.

To address the deficiencies in the process of auctions, the latter will be held exclusively through electronic means in 2018. According to Mr. Sahakyan, drastic reforms are envisaged in the field of State property registration. In particular, an electronic system will be introduced to help assess the efficiency of asset management at any moment. The Head of State Property Management Department noted that the electronic system will be available to all departments; as a result, the Government will have an ideal base for State property registration.

It was reported that in 2017, it was anticipated to attract USD 18 million in investment programs. Instead, USD 8 million was attracted against the 5 million invested in 2016. The 2018 target is USD 16 million. At the same time, noting that 47 State-owned assets hade been included in the State property privatization program for 2017-2020, Arman Sahakyan reported back the results of high-value State property alienation.

Reference was also made to the activities of State-owned companies and their effectiveness. Prime Minister Karapetyan suggested taking stock of all those real assets run by ministries, agencies, regional administrations and communities in order to formulate and submit relevant proposals.

The Head of Government expressed conviction that ineffective expenditures will be reduced considerably if necessary steps are taken in this area. The Prime Minister also instructed to discuss the requirements for targeted programs with the involvement of unused State property with the ministries representing the government’s economic bloc.

The State property registration base currently features 8862 units of State-owned property (total area of 8047530.87 square meters). The SPMD has taken stock of the State’s share in the statutory capital of 218 legal entities and registered 2705 units of real estate.

In the period under review, the SPMD drafted 7 resolutions on donation (privatization) by the Armenian citizens of their homes (90 families, 249 persons, 91 rooms) that have been approved by the Government.

AMD 293,930.0 thousand was received as debt payable by liquidated organizations, of which 70,331.0 thousand was contributed to the State budget, 1,129.0 thousand - to community budgets, 187,392.0 thousand went salary payments, and 35,078.0 thousand - other payables.

Summing up the meeting, Karen Karapetyan emphasized, “We have huge untapped potential in this field. Nevertheless, we are on right track: we have done many good things, but we should not be content with what has been done. As a matter of fact, you are the owner of our property, and we need to understand that a qualitatively different task is being set for 2018, and that we will not be satisfied with that.”

April 2024