REGULATORY NEWS: AZTN Submits Opinion on State Property Management Plan

pejnovic 128 April 2014, LPJ Croatia Issue 82

The AZTN issued an opinion on the State Property Management Plan, which was not adopted at last week’s government session.  The agency emphasised the need to abide by the criteria outlined in the Commission Communication on State Aid Elements in Sales of Land and Buildings by Public Authorities, under which the transfer of state-owned property to an entrepreneur is not considered unlawful state aid if sold at market price.

Therefore, if the State Property Management Administration (DUUDI) intends not to use the public procurement procedure to realise the transfer of property, it has to engage an independent ‘appraiser’ to determine the market value of the property, as a prerequisite for arranging the minimum purchase price.

The AZTN proposed an amendment to the plan related to the restructuring of public companies, which provides for the harmonisation of criteria and methodology with state aid rules in force.  Finally, the agency advised the government (i.e. DUUDI) to apply the ‘private investor test’ (PIT) when conducting restructuring of state-owned companies.  The PIT is normally used in order to determine whether a public company has been granted an advantage by comparing the behaviour of the state with that of a private investor operating in normal market conditions…

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