From the privatization of SOE “Dunaivtsi grain processing plant” the budget should receive more than UAH 227 million

From the privatization of property complex of the state enterprise “Dunaivtsi grain processing plant”, the budget should receive UAH 227,090,000 (excluding VAT). This was the initial price offer of the registered participant of the online auction for the privatization of this object, which exceeded the starting price by almost UAH 40 million.

The price increase, even if only one participant is registered, is due to the mechanism of transparent privatization auctions. Participants are motivated to increase the starting price at the stage of registration when submitting price proposals, because they do not know about the number of other registered participants or the size of their price proposals. However, a higher initial offer gives a competitive advantage during bidding.

The State Property Fund is working to prepare 6 more grain processing plant for privatization. These are Poltava, Radyvyliv, Nepolokivtsi, Nizhyn, Ivano-Frankivsk and Novopokrovskyi processing plants.

Dunaivtsi grain processing plant became the first object of this project. It is located in Khmelnytskyi region and established almost 100 years ago, back in 1925, and now is a budget-generating enterprise of the village of Dunaivtsi, which employs 128 locals. However, it has long been not the only enterprise in the region whose activities are related to the provision of storage services (reception, storage, cleaning, drying and storage of grain) and manufacturing of the flour and cereals industry products. The company needs investment in modernization for further development. It will also allow creating additional jobs and increasing tax revenues to local budgets.