Paata Trapaidze, managing partner of infrastructure company Caucasus Road Project, has criticized the government's plan to establish a state-owned company for road maintenance, questioning why the state believes it can perform the function better than the private sector.
Speaking to BMG, Trapaidze said the initiative contradicts free-market principles and would create unfair competition for private businesses. He argued that state-owned enterprises operate under different incentives and can continue functioning regardless of profitability.
He also called on the government to present evidence showing why a state company would be more effective than private contractors. “On what basis do they claim the state will do a better job?” Trapaidze asked, noting that a previous state construction company was dissolved years ago.
The government plans to create a new state-owned road maintenance company to manage roads of international and domestic importance. Initially, the company will be responsible for maintaining and operating the 105-kilometer Gori-Argveta section of the East-West Highway.
