Former Economy Minister Giorgi Kobulia has questioned the government's decision to establish a new state-owned company to maintain and manage roads, arguing that the private sector is generally better suited to perform such work under state supervision.
Speaking on TV-program Business Course, Kobulia said governments should create state-owned enterprises only when the private sector is unable to provide a service. He noted that Georgia already has companies capable of carrying out road maintenance and asked why the state believes it can perform the task more effectively.
According to Kobulia, state entities typically face greater challenges in attracting qualified personnel and have weaker incentives than private businesses. He warned that the government already struggles with staffing and management capacity and may find it difficult to successfully operate another large-scale enterprise.
The comments come as the government plans to establish a new company to maintain roads of international and domestic importance. Under a draft law prepared by the Roads Department, the new entity will gradually assume responsibilities currently performed by private contractors, beginning with the management and maintenance of the 105-kilometer Gori-Argveta highway.
