“Foreign companies win state tenders, but everybody knows very well that the works are performed by Georgian companies anyway”, Caucasus Road Project head Paata Trapaidze told Business Course.
Referring to this and similar other cases he aims to prove that setting preferences is a timely and right decision for Georgian companies participating in state tenders. The 10% preferences will enable Georgian companies to participate in state tenders on equal conditions with foreign companies.
“When foreign companies win, everybody knows that works are performed by Georgian companies anyway. A foreign company is a general contractor, while 70-80% of the works are performed by Georgian companies for 10-15% lower prices. This signifies our credits go to foreign countries in the form of profits”, Trapaidze said.
I do not back the idea of creating hothouse conditions, but in this case Georgian companies will receive only equal conditions in relation to foreign companies, he said.
“I do not back the idea of overprotection, because it never brings desirable results, but in this case we will not receive overprotection. These preferences will only enable Georgian companies to enjoy equal conditions in relation to foreign companies in terms of attainability to financial resources. In Georgia the financial resource is worth of 13-14-15%, in Europe – 2-3-4%. Therefore, it is very difficult for us to make long-term investments, because foreign companies pay 2% in leasing and Georgian companies pay 14%. Therefore, these preferences will enable Georgian companies to enjoy equal conditions”, Paata Trapaidze noted.