Levan Zhorzholiani, Head of the Administration of the Government of Georgia, stated that state procurement in previous years faced significant challenges, including artificially inflated prices and collusion among suppliers. Speaking on “Imedi TV,” he emphasized that these issues often began during the market research stage, where only 2–3 companies, sometimes connected, participated, setting higher baseline prices and effectively dividing the market. This led to limited competition, with only one or two companies entering tenders despite many operators being active in the market.
Zhorzholiani highlighted that state procurement is a key factor for business relations and economic growth, stressing the importance of transparency and fairness. “All businesses should feel that the state does not grant privileges to anyone and that decisions are not made behind closed doors,” he said.
To address these issues, the government has introduced an electronic market research module, which Zhorzholiani described as a unique Georgian innovation. The system aims to broaden the market research process, make it more open and data-driven, and significantly reduce opportunities for malpractice, such as artificial price inflation and collusion.
The administration plans to use this module to increase transparency, particularly in simplified procurements, ensuring a fairer, more competitive environment for businesses across the country.
