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Georgia to Introduce Performance-Based Payments for Private Road Maintenance Contractors, Minister Says

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Infrastructure Minister Revaz Sokhadze says Georgia’s planned state-owned road maintenance company is not intended to replace private businesses, but will be accompanied by broader reforms across the road maintenance sector.

Speaking to the First Channel, Sokhadze said the government has developed a comprehensive reform plan under which private contractors that continue to provide road maintenance services will operate under a revised system linked to measurable performance indicators.

“Discussion about replacing private business is not relevant,” the minister said, adding that compensation for private contractors will be based on specific performance metrics rather than the current model.

The government is preparing to establish a new state-owned company responsible for maintaining roads of international and domestic importance. Under draft legislation prepared by the Roads Department of the Ministry of Infrastructure, the new entity will initially oversee maintenance and management of the 105-kilometer Gori–Argveta international highway, a function currently carried out by private contractors selected through public tenders.

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