Georgia should consider Turkey’s model of granting local companies a price preference in state tenders, according to Giorgi Gabunia, founder of infrastructure and construction company Construction Service. Speaking on the TV program Business Course, he said Turkey provides local companies with a price advantage of up to 15%, helping them build experience and later compete for larger tenders.
Gabunia said foreign companies sometimes enter Georgian state tenders with dumping prices to secure contracts, while local businesses lack similar advantages. He argued that giving Georgian companies certain preferences would help keep more funds in the domestic economy and strengthen the local construction sector.
He also said gaining experience on large domestic projects is important for Georgian companies seeking to compete in international tenders. According to Gabunia, foreign companies operating in Georgia may divide projects into separate contracts, making it difficult for local firms to count completed work as relevant experience and limiting their future competitiveness.
Gabunia suggested introducing a price preference of around 15% for local companies, following Turkey’s example. The Infrastructure Ministry is currently working on a bill that would allow Georgian companies to receive price preferences in state procurement, with the relevant changes expected to be introduced to the Law on State Procurement.
