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Operative Information Center

Baku City Executive Authority to restructure municipal services into LLCs

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Bakı Şəhər İcra Hakimiyyəti müəssisələri MMC-yə çevrilir

The Cabinet of Ministers of the Republic of Azerbaijan has adopted a resolution aimed at enhancing the operational efficiency of several municipal enterprises under the Baku City Executive Authority.

As reported by the Operative Information Center-OMM, Prime Minister Ali Asadov signed the decree authorizing these structural changes.

Under the new resolution, the exemplary structures and staffing units have been approved for the following municipal entities: Housing and Communal Services, Elevator Services, Lighting Services, and Landscaping Services. The charter capital for these entities will be formed based on the assets of the existing municipal service providers currently operating under the Baku City Executive Authority.

The Baku City Executive Authority has been tasked with a three-month deadline to finalize the transition. Within this period, the authority must submit proposals to the Cabinet of Ministers for the establishment of these entities as Limited Liability Companies (LLCs). Furthermore, the Baku City Executive Authority is required to draft the charters for these new entities, approve their organizational structures and staffing levels, and notify the Cabinet of Ministers accordingly.

Additionally, the resolution mandates that the monthly salaries for employees of these new entities must align with the Unified Tariff Schedule established for state-funded sectors. The Baku City Executive Authority, in coordination with the State Service for Property Issues under the Ministry of Economy, the Ministry of Ecology and Natural Resources, and other relevant state bodies, is required to assess the scope of sanitary cleaning and landscaping services across Baku. This assessment will utilize the data resources and systems of the Space Agency of the Republic of Azerbaijan (Azercosmos) and will be submitted to the Ministry of Finance to ensure proper budgetary planning.

These reforms are part of a broader initiative to modernize public administration and improve the quality of municipal services in the capital. The implementation of these changes will be conducted in accordance with the regulations on the preparation and adoption of normative legal acts, as approved by the decree of the President of Azerbaijan on October 6, 2023.

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