The annual ranking of cities that were most active in realizing their assets on “Prozorro.Sales” in 2023 was headed by Zolotonosha in Cherkasy region, Balta in Odessa region and Kyiv, according to a release on Wednesday.
“State online auctions in 2023 helped earn at least 1.6 billion hryvnia to local budgets. This is an example of how increasing the capacity of each individual city or town brings us closer to the recovery of the country’s economy as a whole,” Deputy Economy Minister Oleksiy Sobolev said.
In total, the rating included 26 cities, the total income of communities of which amounted to almost 1 billion UAH.
“Local governments today are the drivers of change on the ground, many of them are actively involved in the programs implemented by the Ministry, aimed at business development. At the same time, communities have a great potential, which they can realize independently, successfully selling and leasing communal real estate and land through “Prozorro.Sales”, – added Sobolev
According to the CEO of “Prozorro.Sales” Sergey Buta, compared to the first year of full-scale invasion, in 2023 several dozen more cities returned to the realization of assets through the state online auctions “Prozorro.Sales”.
“A total of 334 territorial communities worked with the system in 2023, which announced more than 7.3 thousand successful bids for small privatization, leasing of communal property and leasing and sale of land. And this is an opportunity for communities to independently generate revenues to their budgets and attract businesses that buy and lease communal assets,” Bute added.
It is specified that local governments in Zolotonosha successfully held 61 auctions out of 78 announced last year. Thanks to online auctions the local budget received almost UAH 1.9 mln. 168 successful auctions brought Balta more than UAH 23.3 mln, and the capital budget in 2023 was replenished by more than UAH 141.4 mln following the results of almost half a thousand auctions.
Lutsk and Lubny were also in the top five cities with high efficiency of property management through online auctions: their city budgets earned more than UAH 12.5 million and almost UAH 4.8 million respectively from the sale of municipal assets.
Chernivtsi, Dnipro, Ternopil, Lviv and Kremenchuk formed the second five of the rating according to the results of 2023.
According to “Prozorro.Sales”, Lviv, which took the ninth place, attracted the most funds in the system among all cities last year: small privatization, rent and land brought almost UAH 160.4 million to its budget.
The State Property Fund of Ukraine (SPF) has put up for sale 210 lots of small-scale privatization worth over UAH 113 million, Acting Chairman of the SPF Vitaliy Trubarov said on Facebook. The majority of the companies subject to privatization are situated in Vinnytsia, Poltava, and Lviv regions, while the most expensive lots are in Zaporizhia regions, according to Trubarov’s post. “A potential buyer has 30 to 35 days since the date of the offer for sale to submit documents, make a guarantee deposit, check the facility, its technical and financial reports,” he said.
Some 200 small-scale privatization auctions are scheduled for September. As reported, small-scale privatization involves the sale of state-owned or municipal property, the value of which does not exceed UAH 250 million. The SPF has fully completed including 716 facilities subject to small-scale privatization in 2018 in the ProZorro.Sale base.
Privatization of small assets that are not of strategic importance for the Ukrainian economy will begin through the ProZorro system in June, Prime Minister of Ukraine Volodymyr Groysman has said. “I believe that privatization is the fund-raising for industry. This month, a new formula for the sale of small enterprises – through ProZorro – starts openly, publicly, without abuse,” the press service of the government quoted Groysman as saying. According to him, large, strategically important assets will be kept in state property, and those where it is possible to raise capital for updating technologies and multiplying jobs will be made ready with the help of well-known world advisers.
“This practice was carried out by countries with a high standard of living. And we, unfortunately, remained with a bunch of problems that now need to be resolved,” Groysman said.
Earlier, First Deputy Minister for Economic Development and Trade Maksym Nefyodov said that the State Property Fund (SPF) of Ukraine had approved a list of more than 600 small-scale privatization facilities that are subject to privatization in 2018. The first auctions can be announced at the end of June.
