Legal experts warn that Georgia’s upcoming procurement reform may centralize political control over major tenders. From June 1, 2026, consolidated tenders will no longer be handled by the Procurement Agency but by a new LEPL under the Government Administration - a move lawyer Badri Niauri believes is aimed at influencing large companies and maintaining political loyalty.
The new Central Purchasing Body will run all consolidated tenders and introduce new fees: 100 GEL to submit a bid and up to 1% of the contract value for winners. Niauri argues that replacing the experienced Procurement Agency with a government-controlled structure risks lower quality, more mistakes, and weaker monitoring.
He also criticizes existing procurement tools, including what he calls an ineffective “white list” favoring pro-government companies and a stricter “black list” that pressures businesses politically. Additional problems, he says, include a flawed market research module and overly harsh penalties for minor violations.
According to Niauri, excessive fines, sometimes reaching 1.3 million lari on mid-sized contracts, are pushing companies out of the market, amounting to what he describes as state-backed economic pressure. He compares the trend to past political interference in business, arguing that today it comes in the form of disproportionately high civil penalties rather than direct intimidation.
