Georgia’s newly established Ministry of Regional Development, created in April 2025 from the reorganization of the Ministry of Infrastructure, has already made a significant impact on municipal budgets, according to Minister Kakhaber Guledani. Speaking before Parliament during an interpellation session, Guledani highlighted the ministry’s role in coordinating state procurement and ensuring tender documentation complies with legal standards.
The minister reported that in the past year, the ministry reviewed 5,000 tender documents and helped municipalities save over 13 million GEL before the tenders were even announced. These efforts aim to support municipalities institutionally, ensuring greater transparency and efficiency in public procurement.
Guledani emphasized that the ministry’s work comes at a critical time, as local governments have seen substantial revenue growth. “Municipalities’ incomes have increased significantly. In 2025 alone, VAT allocations provided over 2 billion GEL to municipalities, nearly double the previous year’s figure,” he noted.
By offering methodological support and guidance on how tenders are structured and announced, the Ministry of Regional Development seeks to enhance local governments’ financial management and procurement processes. According to Guledani, these initiatives not only save money but also strengthen institutional capacity at the municipal level.
