NKR: Privatization is Slow For Buyers Cannot Afford

PRIVATIZATION IS SLOW FOR BUYERS CANNOT AFFORD

Azat Artsakh Daily – Nagorno Karabakh Republic [NKR]
09-02-2007

Some enterprises in NKR were privatized and are operating successfully,
creating new jobs, which is one of the conditions of the agreement and
making investments. The head of the Department of State Property
Management and Privatization Arsen Abrahamian said in an interview
with the Azat Artsakh that although the 2004-2006 program of state
property privatization is over, the government did not manage to bring
into being all the points of the program.

`We have not taken up the companies providing communal services yet,’
he said. The process is slow because the buyers cannot afford to pay
for these companies, for these have big premises, and reconstruction
and equipment cost immense sums. Arsen Abrahamyan said the draft
program of state property privatization for 2007-2009 has already been
presented to the National Assembly. The law on the program for
2004-2006 will be in effect until the new one is passed. Last year
only 5 companies were privatized, the largest is the wine factory of
Stepanakert. The buyer is the brandy factory of Stepanakert. This
company committed to invest 600 million drams and create 100 jobs.

Ford Directions Ltd. bought Communal Service CJSC and committed to
invest 220 million drams and create 40 jobs. Besides these companies,
about 46 buildings were privatized, which were assessed at 72.3
million drams. According to Arsen Abrahamian, return on privatization
of state property totaled 251.8 million drams.

SRBUHI VANIAN.
09-02-2007