ANNOUNCEMENT

OF THE STATE SERVICE ON PROPERTY ISSUES UNDER THE MINISTRY OF ECONOMY OF THE REPUBLIC OF AZERBAIJAN ON INVESTMENT TENDER FOR THE SALE OF THE COMPANY AS A PROPERTY COMPLEX LOCATED AT 8X, KM 23, SALYAN HIGHWAY, BAKU CITY, GARADAGH REGION

According to the Second State Program on privatization of state property in the Republic of Azerbaijan and “Rules on implementation of investment tender” approved by the Presidential Decree No. 533 dated 17 July 2001, in order to ensure the implementation of the Presidential Order No. 3703 dated December 30 2022, "On the privatization of some enterprises and objects on the balance sheet of “Agrarcredit” Closed Joint Stock Company a non-bank credit organization, in order to ensure the implementation of the Decree No. 2979 of the President of the Republic of Azerbaijan dated October 29, 2021, "On the privatization of some enterprises and objects on the balance sheet of the "Azerbaijan Industrial Corporation" Open Joint Stock Company the State Service on Property Issues under the Ministry of Economy of the Republic of Azerbaijan announces investment tender for the sale of a real estate complex (hereinafter referred to as the "real estate complex") located at Salyan Highway, 23rd km, 8X, Garadag District, Baku.

Along with physical and legal entities of the Republic of Azerbaijan also foreign investors may participate in the tender.

At the completion of the tender, bidder with more favourable proposals on maximum amount of investment and its efficiency within the defined conditions will be preferred.

1. Information on Company

(As of 01 April 2024)

Legal address: Baku city, Garadagh district, Salyan highway, 23rd km, 8X

Main activity of the Company: established for the production of diapers and paper napkins

Authorized capital:: 24 485 884 (twenty four million four hundred eighty five eight hundred eighty four) manats

Shares of joint company in other enterprises: none

Intangible assets: none

The ecological condition:

satisfactory

Number of employees: none

Liabilities of the Company: none

2. Requirements and provisions for bidders

2.1. Submitting an Investment Program in the amount not less than 10 000 000 (ten million) AZN indicating the investment trends, total amount and terms of investments reflecting the following issues for the purpose of development of the enterprise due to the restoration of its activity and the creation of new production areas:

2.1.1. proposals for restoration and reconstruction of existing buildings and facilities;

2.1.2. proposals for the repair of existing equipment and technologies (considered appropriate), as well as the application of new equipment and technologies (including new production areas to be created);

2.1.3. proposals for increasing the production and assortment of new import-substituting and/or export-oriented products in the property complex;

2.1.4. proposals for renewal of infrastructure provision;

2.1.5. proposals for the development of the territory of the property complex according to modern standards;

2.1.6. proposals for increasing the production and range of new import-substituting and/or export-oriented products;

2.1.7. Proposal on the amount to be transferred and its use of certain part of 5% (five) of total proposed investment amount in the cash form to the account.

2.2. Proposals on payment to be paid to the state budget for the purchase of the shares of joint-stock company not less than 14 700 000 (fourteen million and seven hundred thousand) AZN or (payments made in foreign currency should be converted into Azerbaijani manat in accordance with official exchange rate of the Central Bank of the Republic of Azerbaijan on the relevant date).

3. Documents to be submitted by bidders

Applicants must submit the following documents in order to participate in the competition:

3.1. Application for participation in the tender (in an open envelope).

3.2. Receipt confirming the cash transfer of 1 000 000 (one million) AZN to the AZN deposit NO. AZ65 NABZ 0136 1150 0000 0000 4944 (code: 501004; correspondence account: AZ74 NABZ 0145 1700 0000 0000 1944; Tax ID: 9900071001; SWIFT bik: NABZAZ2C) of the State Committee on Property Issues of the Republic of Azerbaijan in the Central Bank of the Azerbaijan Republic confirming the seriousness of the bidder and warranting its compliance with the terms and conditions of the tender or the guarantee document in the same amount (bank guarantee, surety agreement, pledge agreement, etc). The amount paid by the winner will be considered during the fulfilment of Article 2.2, however payment and guarantee letters of losers will be returned.

3.3. If the bidder is a legal entity, the following documents shall be submitted in an open envelope:

- duly certified copy of charter;

- duly certified copy of the documents confirming the registration of the bidder as a legal entity;

- duly certified copy of the founding agreement and TIN, as well as the duly certified order on the appointment of the chief;

- information reflecting the bidders activity;

- information on existing activity in the Republic of Azerbaijan audited financial reports of the last three years (for foreign legal entities);

- confirming the payment provided for in paragraph 3.2 and one of the determined guarantee documents;

- list of submitted documents.

If the bidder is a phyisical entity, the following documents shall be submitted in an open envelope: - duly certified copy of the identification card;

- information about bidder and business activity;

- information on the bidder's TIN;

- information on existing activity in the Republic of Azerbaijan (for foreign physical entities);

- confirming the payment provided for in paragraph 3.2 and one of the determined guarantee documents;

- list of submitted documents.

The following documents (legal and physical persons) shall be submitted in a secondly sealed separated envelope:

- Investment Program;

- Proposal on money to be paid to the state budget.

Documents in any foreign language should be submitted with their texts to be translated to Azerbaijani and be certified by the bidder. In case of discrepancy between the texts, Azerbaijani text shall prevail.

If any of the documents or information required to participate in the tender can be obtained from the relevant government agency through the Electronic Government Information System, those documents or information are not required from the bidders. In cases where it is not possible to obtain such documents or information through EGIS, their submission is required from the relevant state agency upon request with the consent of the bidders or is provided by the bidders. Such documents will be considered by the Tender Commission accordingly.

4. Requirements and provisions for tender winner

4.1. Tender winner should ensure the followings:

4.1.1. The signing of purchase and sale agreement of shares of joint-stock company during 30 (thirty) calendar days from the date of approval the protocol on the results of the tender;

4.1.2. From the signing date of the purchase and sale agreement of shares of company:

- transfer of the proposed funds to the state budget during the period to be agreed in the contract;

- transfer of up to 5% of the total volume of the proposed investment in the Investment Program in the form of cash to the settlement account of the property complex (enterprise to be created) within 60 (sixty) calendar days;

- creation of the number of workplaces to be committed, but not less than 50;

- payment of (7 198 AZN (including VAT)) service fee to the consulting company involved in connection with the implementation of this project within 30 (thirty) calendar days;

- fulfillment of other conditions and obligations defined by the contract, as well as the implementation of the investment in accordance with the direction, amount and stages specified in the Investment Program.

4.2. For review the Privatization plan (issue prospectus) of the Company, get acquainted with the company and get additional information about the investment tender bidders can contact the following address on working days from from 10:00 till 17:30 until 16 September 2024, 139 H.Aliyev avenue, Baku city, Nizami district, State Service on Property Issues under the Ministry of Economy, Room 1210 tel.:+994 12 311 01 60 (ext: 1314 and 1315) office@emlak.gov.az.

4.3. Acceptance of applications and proposals of the bidders will be held till the date of 16 September 2024 from 10:00 till 17:30 in the following adress specified in paragraph 4.2.

4.4. Tender proposals will be assessed on 17 September 2024 starting from 15:00 at the administrative building of the State Service on Property Issues under the Ministry of Economy.