APP head announces measures to facilitate privatization and reorganize state-owned enterprises

The Public Property Agency is proposing changes to privatization procedures to facilitate access for investors and give them more time to identify the financial resources needed for acquisitions. At the same time, the institution is preparing a draft government decision on the liquidation of eight inactive state-owned enterprises. Public Property Agency (APP) director Ion Dodon made the statements after today's cabinet meeting.

According to him, the preparation of privatization processes must ensure the participation of as many potential investors as possible. In this regard, the authorities are also considering reducing financial barriers and extending the deadlines for making payments after the assets have been awarded.


“Better preparation would mean allowing access to as many potential investors as possible. For example, we should have a down payment and a participation fee for potential auction processes that can actually be paid,” Ion Dodon said.


He cited the privatization of Zarea Hotel as an example, in which the down payment amounted to nearly 11 million lei. According to him, this sum represented a significant financial condition for an investor wishing to participate in the auction.

Another proposed change concerns the period within which the auction winner must pay the established amount. At present, the legislation provides a deadline of up to 30 days to identify the financial resources and transfer the money to the account of the Public Property Agency.

“Commercial banks review loan applications over a longer period, which makes no sense,” Ion Dodon stated, adding that a draft government decision had been prepared to address this issue.

Ion Dodon said that investors should also receive support after the privatization process is completed, particularly in obtaining the permits required to develop the purchased assets.

Referring to Zarea Hotel, he noted that the documents and approvals related to the property are public and accessible to all potential investors. The information is available on a website dedicated to the hotel’s privatization.

At the same time, the APP director acknowledged the need to reduce bureaucracy and simplify investors’ interactions with public authorities.


“I agree that we should be more investor-friendly when it comes to obtaining permits and providing assistance during the post-privatization period, so that the investor does not have to go from one council or authority to another and wait for months to obtain such documents,” Ion Dodon said.


He specified that the privatization of Zarea Hotel is being carried out through a simple auction, not an investment tender. Therefore, the buyer will not be required to comply with a specific development project imposed by the state.


“There is no condition imposed on the investor regarding how this property must be developed. (...) It is a simple auction, not an investment tender, so the buyer will have no obligations. Some possibilities for the future development and use of the property were provided merely as examples,” the APP head explained.


The Public Property Agency has drafted a government decision on the liquidation of eight state-owned enterprises that are no longer active. According to Ion Dodon, they appear in public registers even though they do not conduct economic activity.


“There will be more such decisions. We need to put the state registers in order; there must be discipline and clarity. If an enterprise is not operating, it has no place in the register,” the institution’s director said.


The APP manages 168 enterprises, of which approximately 75–76 are active. The others are undergoing various procedures, including liquidation or insolvency proceedings.

Ion Dodon said that inactive enterprises will be removed from the registers, while each individual case will be examined separately.

Regarding the performance of state assets, Ion Dodon said that the current results are unsatisfactory and that the authorities aim to increase the profitability of public enterprises.

According to him, in 2025, more than 20 state-owned enterprises and companies recorded total profits of 3.1 billion lei. Approximately 87% of this amount was generated by the top five enterprises.

They include Chișinău International Airport, National Lottery of Moldova, Moldtelecom and Energocom.


“The vast majority—87% of this profit—was generated by the top five enterprises. This means that the enterprises further down the list generate lower profits, have lower turnover, or deliver lower returns,” Ion Dodon said.


The official noted that in the case of enterprises that do not generate profits, solutions will be determined individually. Depending on the circumstances, the authorities will consider the possibility of restructuring enterprises undergoing insolvency or intervene at the management level.


“The current performance does not satisfy me personally, nor does it satisfy the Government of the Republic of Moldova. We must make efforts to ensure that the activity of these enterprises generates greater profits for the state,” the APP director said.


The Public Property Agency is also examining the reorganization of certain state-owned enterprises with a view to their potential listing on the stock exchange.

Ion Dodon said that the institution is preparing for this process and that the Moldovan International Stock Exchange is expected to become active at the end of this year or the beginning of next year.

“We propose that several state-owned enterprises be reorganized, including for the purpose of listing them on the stock exchange,” the APP head said, noting that no decision has yet been adopted regarding which enterprises will be included in this process.