The Reform in State Procurement is Projected to Yield Benefits Exceeding ₾2 billion for Georgia

With the backing of the USAID Economic Governance Program, a new legislation will oversee public procurement starting from 2025.

Tamar Buadze, who leads the economic reforms segment of the USAID Economic Governance Program, told the "Business Partner" that this reform is expected to infuse over 2 billion GEL into Georgia's economy over a decade.

The forthcoming public procurement legislation outlines the fundamental legal, organizational, and economic tenets of public procurement. It details the protocols for procurement in the defense and security sector, delineates the authority of the public procurement dispute review board, and establishes the procedures for dispute resolution.

Buadze shared that the USAID's economic governance initiative is collaborating with the Georgian government on multiple economic overhauls, chosen based on various criteria.

Three primary reasons prompted this specific reform. Firstly, it aligns Georgia more closely with the European Union. Secondly, the reform will bolster business participation in public procurement. Presently, a mere 25% of businesses engage in state procurement. But with this reform, Buadze anticipates a significant uptick in that number.

The third reason rests on a cost-effectiveness study executed under the USAID program, underscoring the reform's ten-year value.

Buadze mentioned, "The procurement agency has actively engaged the business community, holding numerous meetings. As a result, the legislation was collaboratively refined with the private sector and subsequently ratified. Moreover, there was consensus between the business sector and the agency to maintain active participation, especially when secondary legislation is crafted, as it provides more specific guidelines on the processes and tools to be introduced."

It's worth noting that this year saw the introduction of the "On State Procurement" legislation, aligning Georgia's state procurement framework with the European Union standards while also introducing procedures for streamlined procurement.

It's important to highlight that this reform journey began in 2010, with an aim to enact up to 30 normative regulations by 2025.