Wednesday, January 31 2024 17:24
Naira Badalian

State Property Management Committee of Armenia provided budget  revenues of  AMD 15.4 billion in 2023

State Property Management Committee of Armenia provided budget  revenues of  AMD 15.4 billion in 2023

ArmInfo.RA Prime Minister Nikol Pashinyan visited the State Property Management Committee of the  Ministry of Territorial Administration and Infrastructure to discuss the Committee's activity report for 2023, the presss ervice of the Armenian PM reports.

Chairman of the State Property Management Committee Arnak Avetisyan  and his deputies reported on the activities carried out during the  reporting period.

The property alienations and investment obligations were presented in  detail. It was noted that the monetary value of alienation and  privatization of state property in the previous year was 34.9 billion  AMD, which is about 14.2 billion AMD more than in 2022.  From the  point of view of reducing the number of cars assigned to state  bodies, 2023 was highlighted. the number of alienated vehicles was  488, which is by 386 more than in 2022. The total value of alienated  vehicles was 340 million AMD, which is 166% more than last year's  figure. In terms of vehicle optimization, new standards for vehicle  allocation and centralized process management to be introduced in  2024 were discussed.

Revenues from rental amounted to 674 million AMD, which is 43.2% more  than in 2022.  During the presentation of the report, it was noted  that as a result of the transactions caried out in 2023, the  investors assumed a total investment obligation of 37 billion AMD.

Referring to this process, the Prime Minister noted. "We have a very  long history of privatization and during these privatizations we also  have such cases when something was privatized 25 years ago, the  commitments, investments, jobs, etc. were recorded, but that building  continues to stand like that. Do we have any reference and mechanism  here and what is our approach in general? Are we working in this  direction?"

It was reported that in 2023, 10 lawsuits were filed on the basis of  non-fulfillment of the obligations assumed by the private sector. The  claims are about enforcing the obligations.

According to those in charge, mostly decisions were made in favor of  the State Property Management Committee. If the obligations have not  been fulfilled, a lawsuit is filed in the second stage with the  demand to return the property to the state.  In response to the Prime  Minister's question, it was mentioned that there are already 4 cases  of returning property to the state. 3 are plots of land and one is  real estate.

Thus, as a result of the activities of the State Property Management  Committee in 2023 budget revenues amounted to 15.4 billion AMD, 72.2%  more than in 2022. This indicator is unprecedentedly higher than the  indicators in the field of state property management in recent years.  It was reported that 30 percent of the proceeds from the privatized  state property and land is allocated to the community.  Prime  Minister Pashinyan inquired, "In all cases, when we privatize state  property, we give a share to the community, and now we have increased  the share and are going to increase it more?"

Minister of Territorial Administration and Infrastructure Gnel  Sanosyan noted that 30 percent of the price of property is allocated  to the community and added: "Now we also offer to give money from the  sale of public land as well. We have many cases where the community  is not so interested in the alienation of state property that is  physically located in its territory. By allocating this money, we are  motivating the community so that it is also interested in selling  this unused property, taking into account two circumstances, exactly  30 percent of the money will go into its budget from the sale, and  then there will be an economic effect in its community," said the  minister.  It was noted that in 2023, 2.3 billion AMD were provided  to communities from the sale of state property.  Reference was also  made to the works carried out in the "Karen Demirchyan Sport and  Concert Complex" CJSC. In particular, it was noted that in 2023 119  events were held in the Sport and Concert complex, from which 768  million AMD of income was received, which is 18% more than in 2022.  It was noted that major construction works were and are being carried  out at the Sport and Concert complex.  the pumping station has been  completely renovated, the design estimate documents of the  ventilation and fire protection systems have been obtained,  preparatory works for the repair of the roof are being carried out.

Issues related to the systemic reforms implemented in the sector and  the strategy of state property management were also discussed.  Prime  Minister Pashinyan inquired about how many state commercial  organizations exist. According to those responsible, their number  reaches 146.

The Prime Minister emphasized the monitoring of their activities. "At  least we should know what is happening there, if it works, we should  understand how it works. If it has potential, or it doesn't, etc.,  here we have to have a separate approach," said Nikol Pashinyan.  It  was noted that the implementation of monitoring began in 2022. "At  least it's not bad that we got to that topic and touched on it. I  think that we should address it case by case, because there are  different companies, with different nuances and directions, but we  should be very diligent there, because we are talking about the  management of state budget revenues, financial flows and  non-financial assets.  Let's agree that we will quickly come up with  a formula on how we will act," said the Prime Minister.  It was noted  that in 2023 "Republic Plaza" OJSC was founded for effective property  management and further privatization through the stock exchange,  which is a new phenomenon from the point of view of state property  management. 

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