Tbilisi (GBC) - The Georgian government is preparing a new package of amendments to the legislative framework governing state construction projects, which aims to reduce the risks of infrastructure project suspension and introduce a price indexation mechanism.
In connection with the planned reform, Prime Minister Irakli Kobakhidze and Minister of Infrastructure Revaz Sokhadze met with representatives of construction companies and commercial banks. The working meeting was also attended by the heads of the Procurement Agency, the Government Administration and the Samkharauli Expertise Bureau.
By decision of the government, amendments will be made to the Technical Regulations approved by Resolution No. 55 and the Law of Georgia “On State Procurement”. As part of the reform, the limit on overheads and unforeseen expenses will be increased, market prices for construction materials and machinery will be updated, and a rule for partial adjustment (indexation) of prices will be introduced.
“The reform aims to strengthen the construction sector, increase the financial sustainability of state projects, and establish higher standards of responsibility and transparency in the state procurement system,” the government’s official statement says.
In order to support small and medium-sized businesses, the new rules will make it possible to combine the experience of a bidder and its subcontractor in state tenders, which will make it easier for companies to participate in large projects.
At the same time, the state is tightening control mechanisms: participation in tenders with unrealistically low prices (dumping) is being restricted, and the so-called “black list” mechanism is being expanded. As a result, companies of individuals involved in financial or corruption crimes will be disqualified from state tenders.
The government assesses the aforementioned legislative package as one of the most important systemic reforms of recent times, which should ensure timely and high-quality implementation of infrastructure projects.
