New Regulations on State Property Privatization and Electronic Auctions

The State Property Management Committee reports that on December 11, the Government of Armenia approved a series of changes proposed by the committee regarding the procedures for conducting electronic auctions and privatizing property.

In particular, the duration of electronic auctions will increase from the current 1 working day to 3 days, allowing for a longer period for submitting applications.

To reduce the risks of unfair competition:

• The advance payment for rental auctions will be increased to 300% depending on the starting value;
• A participant who wins the auction but fails to sign the protocol will be deprived of the right to participate in further auctions for the same lot.

The deadlines for publishing lot announcements will be extended to enable potential buyers to thoroughly study the property and submit applications:

• For movable property: at least 15 days before the auction;
• For real estate auctions: at least 45 days before;
• For real estate sales competitions: at least 60 days before.

In the case of selling undeveloped land plots, an attachment regarding urban planning restrictions will be mandatory. The basis for sales will be the current market value, rather than the cadastral value approximating the market.

For movable property: the first auction will be organized at 100% of the assessed value; if unsold, the starting price for subsequent auctions will be reduced by 15% without setting a lower limit.

For real estate: the starting price at the first auction will be 100% of the assessed market value; if unsold, the second auction will be 85%, and the third will be 70%.

In the case of direct sales, the price will be set at 100% of the assessed market value, except for special cases determined by the government.

The purpose of these reforms is to make the processes of privatization and rental of state property more open and transparent, ensuring a trustworthy and fair environment for the society.