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Economic Council at Prime Minister’s Office Responds to Ardi’s Appeal

The Economic Council at Prime Minister’s Office responds to  a statement made by  theinsurance company Ardi.

They Prime Minister’s Office  officials say that the Economic Council has completed work on the procurement legislation reform.

According to them, on the instructions of Prime Minister, the Council considered all the problems in the procurement field and mentioned by the insurance company Ardi. The bill will go through all the procedures and will  be sent to Parliament in the near future.

The insurance company Ardi  released a statement addressed to the Economic Council at Prime Minister’s Office.  Ardi urges the Council  to interest  in the problems in the field of tendering.

To protect the interests of its client, Ardi  called the government to pay  attention to this problem a year ago.

Our message  – “The public tenders turned into a trap for business”  was spread through media.However, the statement was  considered  to be personal problems of separate companies and ignored.

However, the number of healthy Georgian construction companies is decreasing every year.

Ardi believes that dozens of failed and even more unfinished infrastructure projects threaten the country’s development.

The policy of the previous government put construction companies in a difficult position, but the current government has not made any steps to improve it. Processes are delayed, and if the government does not take the necessary and timely decisions, there will not be normal, viable construction companies in the country.

A lack of state approach and professionalism of officials engaged in tendering creates problems. They are characterized by panic fear that if they are not as strict as possible in relation to contractors, it will be perceived as a violation of the law, and they will be punished. Because of this contracts are canceled due to trifles, the companies are constantly penalized, and in the end we got a situation when officials do not think about the successful implementation of the project,  but  about self-preservation.

Apart from that, very often tender conditions are formulated unprofessionally, performed works are paid with delays, which in turn hampers  the implementation of infrastructure projects. Company-contractors often have to complete projects for their money. As a result, companies cannot finish their work and are on the verge of bankruptcy.

Ardi has spent two years trying to share experience and analyze gained in this field with the concerned agencies.

It’s strange that the largest state procurement organizations are least interested in this topic.

The solution is simple:

  1. It is necessary to establish the legal instructions, the so-called guidelines, which will regulate in detail the rules of conduct of state officials at various levels, as well as the rules for procurement by government agencies. Similar instructions analog acted for years, but in 2011 was canceled for unknown reasons and the legal vacuum has emerged in this field.
  2. It is reasonable to create a collegial council for tender  disputes, which will consider conflicts associated with tenders in the short term, as the legal proceedings  on this subject are very slow.