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Public procurement volume up in Georgia

Business Materials 14 May 2020 22:14 (UTC +04:00)
Public procurement volume up in Georgia

BAKU, Azerbaijan, May 14

By Tamilla Mammadova – Trend:

Georgia’s purchases totalled 5.3 billion lari ($1.6 billion) in 2019, which accounted for 11.7 percent of the country's GDP and 63 percent of the budget expenditures, Trend reports via the State Procurement Agency of Georgia.

As reported, the total value of contracts implemented in 2019 increased by 1.3 billion lari ($406.1 million) year-on-year. The number of announced tenders increased by 5 percent year-on-year and stood at 34,216 tenders.

According to the State Procurement Agency, in 2019 the major part of funds spent by the state accounted for road construction.

In 2019, Georgia saved approximately 100 million lari ($31.2 million) through consolidated tenders. In the framework of consolidated tenders held in 2019, contracts worth 403 million lari ($125.9 million) were concluded.

In 2019, the estimated total initial purchase value was 419 million lari ($130.9 million). As a result of the bidding, 16 million lari ($4.9 million) was saved, and the final amount was 403 million lari ($125.9 million).

The resulting savings exceeded 100 million lari ($31.2 million) relative to retail and wholesale prices for relevant procurement items.

The largest savings relative to the market price occurred in a consolidated tender for the purchase of fuel, which amounted to 31.9 million lari ($9.9 million).

The tender for the purchase of computer equipment allowed the state to save 3.3 million lari ($1.03 million), and the tender for the purchase of printers and cartridges - 11.5 million lari ($3.5 million).

Savings in the purchase of airtime on television amounted to 19.9 million lari ($6.2 million). When purchasing cars, the state saved approximately 17.5 million lari ($5.4 million) relative to the market price.

The largest public procurements were carried out by the following organizations / departments: Department of Roads - 212 tenders (522.7 million lari/$163.3 million), Municipal Development Fund - 154 tenders (358.5 million lari/$112 million), Tbilisi City Hall - 332 tenders (279.3 million lari/$87.2 million), Tbilisi Transport Company - 262 tenders (147.7 million lari/$46.1 million), Agency for the Development of Educational and Scientific Infrastructure - 68 tenders (134.6 million lari/$42 million).

The savings from procurement in Department of Roads amounted to 72.9 the million lari ($22.7 million), Tbilisi City Hall - 28.3 million lari ($8.8 million), Municipal Development Fund - 27.08 million lari ($8.4 million), Tbilisi Transport Company - 15.09 million lari ($4.7 million), Agency for the Development of Educational and Scientific Infrastructure - 13.8 million lari ($4.3 million).

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