Some industry experts are expressing concern over the Georgian government’s recent decision to tighten financial requirements for companies included in the so-called “white list” - a registry of reliable firms eligible to participate in state tenders under simplified conditions.
In an interview with BMG, Badri Niauri, lawyer and general director of Niauri & Company, criticized the change, arguing that the new rules could restrict competition and place an excessive financial strain on businesses.
“Such a crude form of interference in the system will place a very heavy burden on business, and we will soon see clear examples of this,” Niauri said. “If companies previously had the ability to enter multiple tenders at once using the advantages of the white list, this will no longer be possible. As a result, competition will decrease, and service prices will rise.”
According to Niauri, increasing the requirement for bank guarantees limits companies’ ability to pursue several projects simultaneously. He explained that large, reputable firms are already required to deposit their own assets as collateral with banks, and the new rule further tightens this financial constraint.
“When we say that companies will have to submit a higher bank guarantee, instead of the current 50%, this worsens the situation for businesses. One company will no longer be able to handle several projects at once, and in the absence of competition, project prices will inevitably rise,” he added.
“If this continues, we’ll eventually reach a point where the ‘white list’ system itself becomes meaningless.”
Under the government’s new resolution, companies participating in tenders under the “white list” will need to provide a bank guarantee of 60% of the advance payment for state contracts beginning in 2026, up from the current 50%. The requirement will increase to 70% in 2027 and 80% in 2028.
While the government says the measure aims to ensure greater accountability and reduce financial risks, business representatives warn that the move could discourage participation in public procurement and ultimately harm market competition.
