Edict of the President of the Republic of Belarus

(Unofficial translation)

 

Edict of the President of the Republic of Belarus
No. 232 of May 5, 2009
[Amended as of August 15, 2017]

 

On Some Questions of Holding Auctions (Competitive Biddings)

 

With a view of further improvement of the order of holding auctions (competitive biddings):

1. To establish that:

1.1. it is not allowed, unless otherwise specified by this Edict, to set and collect payments for organizing, holding or participating in an auction (competitive bidding) from the participant in the auction (competitive bidding) (hereinafter – the participant), including for submitting an application (statement) for participation in it, presentation of documents necessary for holding the auction and in cases when the obligation to conduct the auction (competitive bidding) at the disposal of property, the performance of works, the rendering of services, the granting of rights, including rights to intellectual property objects, is established by legislation;

1.2. when auctions (competitive biddings) are being organized:

participants grant an earnest money deposit in the amounts, under the procedure and within the time limits determined in the notice about the auction (competitive bidding);

within five working days from the day of holding the auction (competition) and also in other instances provided by the legislation, the deposit shall be returned to the participant who has not won the public sale. For the participant who has won the public sale, the sum of the deposit made is taken into account for fulfillment of obligations under the contract being concluded as a result of the auction (competitive bidding);

in case of refusal or evasion of the participant who won the public sale or persons from signing the protocol and/or the contract to be drawn up according to results of the auction (competitive bidding), reimbursement of expenses on organization and holding of the auction (competitive bidding), and also in other instances provided by the legislation, the deposit made by him is not to be returned;

reimbursement of expenses on organization and holding of the auction (competitive bidding), including expenses related to producing of documents necessary for its holding and their providing to the participants shall be carried out by the participant who has won the public sale. The amount of such reimbursement shall not exceed the sum of actual expenses on organization and holding of the auction (competitive bidding), producing documents necessary for its holding, and also include expenses on auctions (competitive biddings) held earlier and which had not result or were deemed to be unheld, in the case of repeat putting of the object for public sale;

information about expenses specified in indent five of this sub-clause, procedure and time limits for their reimbursement are to be brought, in an obligatory manner, to knowledge of participants prior to holding the auction (competitive bidding) on each object (lot) put on auction (competitive bidding);

acceptance of applications (statements) for participation in the auction (competitive bidding), with the exception of auctions (competitive biddings) for sale of privatization objects and also of  auctions (competitive biddings) for selection of an investor for conclusion of a concession contract with him must be terminated not earlier than three working days before the date of holding the auction (competitive bidding).

In the instances provided by the legislation, prior to the date of holding the auction (competitive bidding) the organizer of the auction (competitive bidding) concludes agreements with participants, which stipulate rights, duties and liability of the parties in the course of preparation and holding of the auction (competitive bidding), including the amount of the fine payable:

by the participant who has won the public sale but refused or evaded the signing the protocol and/or the contract to be drawn up according to results of the auction (competitive bidding) and/or the reimbursement of expenses on organization and holding of the auction (competitive bidding);

by participants who refused to declare their price for the object of auction in the instance when such declaration is provided by the legislation, as a result of which the auction is recognize as having no result.

In this instance the amount of the fine payable in the case provided in indent three of part two of this sub-clause, when the price of the object of auction is:

less than 500 base units, may not exceed 100 base units;

more than 500 base units, may not exceed 20 percent of the initial price of the object of auction.

The amount of the fine must be the same for all participants of the auction (competitive bidding).

Fines specified in part two of this sub-clause are to be paid within one month from the day of holding the auction (competitive bidding) in case of organization of the auction (competitive bidding) at the expense:

of means of the republican or local budget – to the republican or respective local budget;

of other means not indicated in indent two of this part – to the organizer of the auction (competitive bidding).

In case when organization and holding of the auction (competitive bidding) were carried out at the expense of different sources, fines specified in part two of this sub-clause are to be paid by participants to the organizer of the auction (competitive bidding) with subsequent distribution thereof within five working days from receipt of the fine in the current (settlement) account of the organizer of the auction (competitive bidding) proportionally to the amount of expenses from different sources;

1.3. [excluded]

1.4. in the event when an auction is declared cancelled by virtue of the fact that only one participant submitted the application (statement) for participation or only one participant appeared for participation therein, the object of the auction is sold to this participant, with its consent, at the initial price increased by 5 percent.

When the application (statement) to participate in the auction (competitive bidding) has been received from one participant or only one participant has appeared for participation therein and when its offer complies with the conditions of the competitive bidding, the sale of the competitive bidding object is carried out to this person on its proposed conditions.

When the object of the auction (competitive bidding) has been sold in accordance with parts one and two of this sub-clause, the rules established by sub-clause 1.2 of this clause are applied for the participant that won the bidding.

An obligatory condition for performing transactions specified by parts one and two of this sub-clause is the publication of the information on holding the auction (competitive bidding) with regard to requirements of sub-clause 1.5 of this clause.

In the case if legislative acts, for some types of state property, stipulate as an obligatory condition the sale of a land plot into private ownership or of the right to conclude the lease contract of the land plot necessary for the maintenance of this property and otherwise is not provided by the legislative acts, the initial price of such property shall include the initial price of the payment for the land plot or of the right to conclude the lease contract of this land plot. And the means spent on the formation of the land plot and transformation of the land plot as a result of such formation, on the state registration concerning those plots are subject to be reimburse by the participant which has won the bidding in accordance with legislation;

1.5. notices on holding auctions (competitive biddings) are subject to mandatory publication in the printed mass media determined by the Council of Ministers of the Republic of Belarus, with the exception of notices on holding auctions (competitive biddings) for disposal of property being in the communal ownership, the mandatory publication which is made in the printed mass media determined by regional executive committees and the Minsk City Executive Committee.

Information about the declared auction (competitive bidding) and the object of the auction (competitive bidding) is also placed in the global computer network - Internet: information concerning immovable property objects being in the republican ownership is placed on the official web-site of the State Committee on Property; information concerning immovable property objects being in the municipal ownership is placed on respective official sites of regional executive committees and the Minsk City Executive Committee.

Access to the information placed in the global computer network Internet in accordance with part 2 of this sub-clause is provided to interested persons without charge and conclusion of the contract.

1.6. the sale of property being in the state ownership, including land plots, of the right to conclude a lease contract of property, including land plots, may be carried out by the organizer of the auction (competitive bidding) by means of holding electronic public sale, if it is provided in the decision about their sale. The procedure for holding electronic public sale and legal persons authorized to hold them are to be determined by the Council of Ministers of the Republic of Belarus having regard to requirements of this Edict.

2. The provisions of this Edict do not cover:

auctions (competitive biddings) on alienation of released material resources of the Armed Forces, other troops, military formations and militarized organizations of the Republic of Belarus in the form of movable property and aircraft, inland vessels, river-sea vessels;

biddings held by the Open Joint-Stock Company “Belarusian Currency and Stock Exchange” and the Open Joint-Stock Company “Belarusian Universal Commodity Exchange”;

biddings on the alienation of material valuables being realized from state and mobilization material reserves;

auctions on the placement of state securities;

auctions conducted by the National Bank with a view of regulating the current liquidity of banks of the Republic of Belarus;

state procurement of goods (works, services);

trading on alienation of property in the process of economic insolvency (bankruptcy);

trading being held in the process of enforced execution of court resolutions and other execution documents.

3. Unless otherwise established by the President of the Republic of Belarus, holding auctions (competitive biddings) on disposal of state ownership objects is carried out under the procedure determined by the Councils of Ministers of the Republic of Belarus having regard to the requirements of this Edict and other legislative acts.

4. The Council of Ministers of the Republic of Belarus, regional executive committees and the Minsk City Executive Committee shall ensure:

by 1 January 2010, the creation and constant maintenance in electronic form on the official site of the State Committee on Property in the global computer network  Internet, of a unified databank on auctions (competitive biddings) being held on the alienation of immovable property being the state ownership, auctions on the right to conclude lease contracts of land plots, auctions with conditions about the right of designing and building construction of capital facilities (buildings, structures), auctions on sale of land plots into private ownership;

introduction of changes and additions into acts of legislation establishing the order of holding auctions (competitive biddings), anticipating its simplification;

bringing of acts of legislation in accordance with this Edict and taking other measures on its implementation.

5. The Edict enters into force in two months after its official publication with the exception of clause 4 and this clause that enter into force from the date of signing of this Edict.

 

President of the Republic of Belarus                                                                                                                                           A.Lukashenko

 

* unofficial translation *