Turkmenistan eyes reducing public sector involvement in railway branch
September 15, 2017 | 01:33 |1884
One of the government's recent meetings has informed on upcoming converting some enterprises subordinated Ministry of Railway Transport of Turkmenistan into joint-stock companies.
In particular, it is planned to create an open joint-stock company "Turkmendemiryollary" [Turkmen railways] with the shareholding of the united enterprise of the Ashgabat railway section.
According to the legislation of Turkmenistan, the transformation of a state-run enterprise into a joint-stock company, founded at least by one public agency is called deregulation.
There are several advantages of transforming state-owned enterprises into joint-stock companies.
- First, the interests of the founders in the development of the joint-stock company and strengthening its financial position is growing.
- Secondly, a part of public shares is sold at nominal value to the employees of reorganized enterprise, as well as to former retired employees. So, citizens obtain the right of ownership.
- Thirdly, the public sector, while limiting its ownership rights, retains the regulating role in created joint-stock company, thereby laying the foundation for the development of the institute of state joint-stock entrepreneurship.
In January 2013, the state mobile operator "Altyn Asyr" was transformed into a closed joint-stock company. The "Ashgabat city telephone network" is also functioning closed joint-stock company.
In 2015, the management of the Turkmen merchant marine fleet was turned into JSC "Deňiz söwda floty" [Marine Merchant Service].
The same year, the Ministry of Communications of Turkmenistan, the State Telecommunications Company "TurkmenTelecom" and JSC "Altyn Asyr" established a closed joint-stock company "Turkmen Hemrasy".
In current year, the air transport enterprise "Turkmenistan", subordinated to Turkmen Airlines was rearranged into open joint-stock company under the same name.
