The CEO of construction company Anagi, Irakli Gogolishvili, says the Georgian government’s planned reform of public procurement rules marks a historic shift for the sector. Speaking on BMG TV’s Analytics, he stressed that the current system had become outdated after more than 20 years in use and had reached a “critical point” where revision was unavoidable.
The government plans to introduce cost indexation into infrastructure construction contracts - a mechanism long requested by the construction industry. Gogolishvili praised the joint work of business associations and the state, noting that the Construction Association played a key role in correctly defining the issue and advancing it to policymakers.
According to him, the existing tender system often relied on cost estimates that did not match real market prices for materials and labor. This mismatch directly affected the quality of completed schools, kindergartens, roads, and other public infrastructure. Contractors were expected to meet project requirements while using outdated, unrealistic price lists - something he described as “impossible in the long term.”
Gogolishvili said that with the new reform, public procurement will finally reflect actual market values, allowing the state to receive the quality it expects. “Without these changes, it was impossible to achieve healthy, fair outcomes. Economic processes must be based on real costs,” he noted.
