The 10.8 million tender from Khobi City Hall appears to be tailored for JSC "Archeopolis" - საერთაშორისო გამჭვირვალობა - საქართველო

The 10.8 million tender from Khobi City Hall appears to be tailored for JSC "Archeopolis"

26 February, 2024

The tender of Khobi City Hall, which was awarded to JSC "Archeopolis," owned by the uncle of Senaki Mayor Vakhtang Gadelia, appears to have been tailored for that specific company.

On January 17, 2024, Khobi City Hall issued a tender (NAT240000878) for the restoration of roads in six distinct settlements, totaling 10,818,151 GEL in value. Interestingly, the sole participant in the tender, JSC "Archeopolis," owned by Demur Gadelia, who happens to be the uncle of Senaki's mayor, Vakhtang Gadelia, proposed precisely the same amount for the project as specified in the tender documents.

The tender conditions set by Khobi City Hall included high financial prerequisites for prospective suppliers. Participating companies were required to demonstrate prior experience in undertaking comparable projects, with a cumulative value of executed works commissioned by the state not less than 32,454,453 GEL since January 1, 2021. Notably, this amount is precisely three times greater than the initial tender value. It would not be difficult for JSC "Archeopolis" to confirm this amount of capital turnover, while most of the companies operating in Khobi and the region can not meet these requirements.

Khobi City Hall employed a similar approach the previous year. In January 2023, they issued a tender (NAT230001465) under similar terms: a single tender valued at 7,704,740 GEL was released for road construction across five distinct settlements, with bidders required to demonstrate a work experience totaling 34,671,330 GEL over the past three years. Joint-stock company "Archeopolis" secured victory uncontested in the previous year's tender.

Breaking down the service into multiple tenders would enhance competition. This was the tendering approach adopted by Khobi Municipality's City Hall in the past couple of years. However, in the last two years, Khobi City Hall has opted to consolidate the rehabilitation of roads across several settlements into a single service tender. "Archeopolis" JSC, which emerged as the uncontested winner in such a tender last year, is anticipated to secure uncontested victory again this year.

Until now, JSC "Archeopolis" has consistently secured tenders under comparable conditions in Senaki municipality, a subject that "Transparency International - Georgia" has investigated and published studies on multiple occasions.

Transparency International Georgia calls on the Khobi Municipality City Hall to promptly cancel the aforementioned tender, to instead announce separate tenders for road rehabilitation in all six settlements, and to formulate the tender conditions in a manner that ensures the selection of the service provider company through competitive processes.