A new draft law initiated by members of the ruling Georgian Dream party proposes amendments to the Law “On Local Fees” that would postpone the payment of zonal K2 coefficient arrears until 2029. The bill targets developers who signed agreements with Tbilisi City Hall to increase K2 coefficients, allowing higher construction density, but have yet to pay the related fees, totaling approximately GEL 7.2 million.
Under the proposed amendments, construction companies and individuals who failed to pay the full amount or complete their projects by January 1, 2025, would receive an extension until December 31, 2028. This period would allow them to settle payments gradually according to an agreed schedule and finish construction projects that have remained incomplete. The measure also applies to those who obtained a special (zonal) agreement before June 1, 2017.
According to the draft’s explanatory note, the change is intended to reduce the risk of unfinished construction and stabilize the real estate sector, while enabling municipalities to receive the owed amounts in phases instead of waiting for lengthy legal disputes to conclude. Currently, around 10 construction projects in Tbilisi are involved in ongoing litigation over these fees.
The bill was initiated by MPs Maia Bitadze, Irakli Zarkua, Nodar Turdzeladze, Giorgi Barvenashvili, Irakli Mezurnishvili, Mariam Lashkhi, Anton Obolashvili, Tornike Berekashvili, Varlam Liparteliani, and Rima Beradze. The lawmakers argue that adopting the amendments would revitalize construction activity, encourage project completion, and improve the city’s urban development and economic momentum.
