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

Елена Краснова Exclusive
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The State Property Management Agency presented a draft resolution regarding the lease of state property for public discussion on March 19.
The document contains proposals to amend the current leasing rules and also defines the mechanism for distributing income received from leasing. The draft states that the changes have been developed in accordance with the amendments made to the Code on Non-Tax Revenues on June 23, 2025. At the same time, it is proposed to make adjustments to a number of existing norms concerning the lease of state property and land plots owned by the state.

As part of the project, it is proposed to exclude from the leasing of state property the facilities of the Social Fund, as well as structures regulated by water legislation. It is also specified that the rent will be charged from the date indicated in the lease agreement.

Additionally, the project addresses technoparks, where it is proposed to allow the management of technoparks included in the registry to directly lease state property from basic organizations. Subsequently, these management bodies will be able to lease the property to residents of the technoparks, with the possibility of establishing a preferential rent equal to property and land taxes, as well as utility and operational costs, without adding a commercial component.

The changes also affect the rules for conducting electronic auctions. If a winner cannot be determined within two hours, participants will be given an additional 10 minutes to submit final bids for the rent, which cannot be lower than the last proposed amount.

Furthermore, clarifications regarding security deposits are proposed: the deposit of the winner will be credited towards the rent, while the deposits of losing participants will be returned within 10 banking days after the application is received.

The draft also considers the procedure for extending leases. For contracts concluded by direct method, the rent upon extension must increase by 30%, and for premises in shopping centers — by 50%. For contracts concluded as a result of auctions, the rent upon extension will remain the same. Additional agreements to contracts concluded as a result of auctions cannot be extended more than once, after which the properties must be put up for auction again.

A provision regarding the insurance of leased property is also introduced. If insurance is mandatory by law or by agreement of the parties, the responsibility for concluding the insurance contract and paying the insurance premium will be placed on the tenant.

Finally, the project establishes that long-term lease agreements concluded before the resolution comes into force may be extended once for a period of up to three years. After that, the properties must be put up for auction in the established manner. After adoption, the resolution will come into effect 7 days after its official publication.
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