In Kyrgyzstan, they propose to change the procedure for renting state property

Ирина Орлонская Exclusive
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On March 19, the State Property Management Agency presented for public discussion a draft of a new resolution titled "On the Issues of Leasing State Property."
This document proposes amendments to the existing procedure for leasing state property and establishes rules for the distribution of income generated from its lease.
According to the draft, the changes are developed in accordance with the amendments made to the Non-Tax Revenue Code, adopted on June 23, 2025. It is also planned to adjust a number of regulations concerning the leasing of state property and land plots owned by the state.
The draft distinguishes the property of the Social Fund and objects regulated by water legislation from the scope of the leasing norms for state property. Furthermore, it clarifies that the rent must be charged from the date specified in the lease agreement.
Regarding technoparks, a new leasing mechanism for state property of the basic organizations of technoparks is proposed, which will be carried out by their directorates included in a special register. The directorates of technoparks will be able to lease this property to residents, allowing for the establishment of a preferential rent equal to property and land taxes, as well as utility and operational expenses.
The changes also concern electronic auctions. If a winner is not determined within 2 hours, participants will be given an additional 10 minutes to submit their final rental price, which must not be lower than the last offer.
Additionally, the rules regarding security deposits are clarified: the deposit of the winner will be counted towards the rent, while the deposits of losing participants will be returned within 10 banking days after the submission of the relevant application.
The draft also revises the procedure for extending lease agreements. For contracts concluded by direct method, the rent must increase by 30% upon renewal, and for premises in shopping centers — by 50%. Contracts concluded as a result of auctions will maintain the previous level of rent upon extension. An additional agreement to such contracts can be concluded only once, after which the property must be put up for auction again.
Another initiative is the requirement for insurance of leased property. If insurance is mandatory by law or agreed upon by the parties, the obligation to conclude and pay for it is imposed on the tenant.
Moreover, long-term lease agreements concluded before the resolution comes into force may be extended once for a period of up to 3 years. After that, the properties must be put up for auction. If adopted, the new resolution will come into force 7 days after its official publication.
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