This content is from: Local Insights

Georgia

In a recent string of structural legislative reforms, the Georgian Parliament has abolished the Ministry of State Property Management of Georgia (MSPM), the entity previously responsible for the management and privatization of state-owned assets.

On March 28 2003 the Parliament amended the Law of Georgia on the Privatization of State Property, transferring the functions of the liquidated Ministry of State Property Management, which include the privatization of state property and monitoring the management of state-owned as well as privatized enterprises, to the Ministry of Economy, Industry and Trade. The existing shareholder rights of the Ministry of State Property Management in each individual enterprise (excluding those rights relating to the privatization or disposal of state-owned shares) shall be assigned to the newly created Agency for the Management of Enterprises, a legal entity under public law, under the general umbrella of the Ministry of Economy, Industry and Trade. It is anticipated that the Agency for the Management of Enterprises shall be funded through a statutory entitlement to 15% of the dividends of the state-owned enterprises. These amendments have already entered into full force and effect.

Power distribution companies

The international firm PA Consulting has signed an agreement with the state to manage Georgia's power distribution companies. Following several unsuccessful attempts to divest state ownership in various power distribution companies (with the exception of JSC Telasi, the Tbilisi distribution company owned by AES), the Georgian government has organized an effort to merge all power distribution companies into a sole entity. A foreign consulting company will manage the new entity.

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