Georgia to Establish Railway Regulatory Agency with Budget of 1.3 Million GEL

The Georgian Parliament is currently reviewing proposed amendments to the Railway Code that would lead to the establishment of a new regulator in the country.

The new regulator, known as the Railway Transport Agency will oversee and monitor the railway sector. The creation of this agency is one of the obligations under the EU Association Agreement, and the budget for 2023 is expected to be 1.3 million GEL. The new agency will fall under the umbrella of the Ministry of Economy and will consist of 12 staff units.

The explanatory card of the draft law shows that the budget for 2023 includes the purchase of basic assets such as cars, computers, software, and furniture, with an amount totaling around 235,000 GEL. Additionally, office rent, wages, and current expenses will be included, with an estimated cost of approximately 943,080 GEL. The annual staff budget of the agency is expected to be around 579,480 GEL.

The Georgian government is also planning changes to the railway sector in another direction, which includes transferring passenger transportation subsidies from the Georgian Railways to the central budget, which will cost up to 50 million GEL annually.

The establishment of the Railway Transport Agency is a significant step towards regulating and monitoring the railway sector in Georgia, which is crucial for ensuring safety and efficiency in the country's transportation system.