GD Prime Minister Irakli Kobakhidze announced that GEL 700 million saved through the optimization of state-owned enterprises will be reinvested into their development, particularly in the energy sector and Georgian Railways.
According to Kobakhidze, the largest savings were achieved at “Electrosystem” and “Sakrusenergo”, where optimization measures, including personnel transfers, expense reductions, and structural changes, generated significant results.
“In total, state-owned enterprises saved GEL 700 million annually as a result of optimization. This is not a one-time saving. The funds will be returned to the development of the railway, the power system, transmission lines, and other strategic assets, which will directly accelerate the country’s economic growth,” said Kobakhidze.
However, questions remain regarding the details of the optimization process. BMG requested information from Georgian Railway and other state companies about the scale of personnel cuts, annual savings, and specific enterprises where optimization has taken or will take place. As of now, the Ministry of Economy has not provided responses.
It is worth noting that on June 3, Kobakhidze previously stated that the reform of state-owned enterprises, first announced in 2022, had already saved GEL 52.5 million this year, GEL 36 million in Georgian Railways and GEL 16.5 million in energy enterprises. Government officials have suggested that annual savings from these reforms could eventually exceed GEL 100 million, with the broader goal of making state-owned enterprises profitable.
