GEO

Blown by the Wind – the GEL 23 million roof on the GEL 103 million Justice House

03 December, 2013

Today, on 3rd December InterPress News reported that citizens were being evacuated from Justice House – the public service hall in central Tbilisi, due to the high winds that had caused a partial collapse of the roof and necessitated alerting the rescue services. In the photo published by InterPress, some sections of the roof panels are missing from the roof and have fallen to the ground surrounding the entrance of the Public Service Hall – 5 stories deep.

The roof cost Georgian taxpayers EUR 10.3 million(approximately GEL 23.5 million) and was constructed by Permasteelisa Interiors s.r.l. of Italy (contract ID CMR120186299). Construction of Tbilisi’s Justice House began on 1 March 2012 and finished 6 months later, on 30 August 2012. The contract suggests that the warranty period for the roof expired recently – one year from the preliminary handover of the works by the company, which probably took place around the opening of the building in fall 2012.

The contract for the construction of Justice House cost USD 61 million (approximately GEL 103 million) and was built by Huachuan Georgia Limited Company (a subsidiary of China Chengdu Import & Export Group Co, LTD, a Chinese state-owned company, contract ID: CMR120078699).

The total cost of the project, not including the cost of the building’s design, was thus around GEL 126.5 million. Both tenders were directly awarded to these companies (by the Civil Registry Agency, the National Agency of the Public Registry and the National Bank - please see update below) and not tendered for open and competitive bidding on the Georgian e-procurement platform.

Sale of this Land (Update)

The original version of this blog named the National Bank of Georgia as one of the three procuring entities that awarded these two contracts. The National Bank of Georgia wrote to TI Georgia to clarify that they say they merely co-funded the project but did not award these contracts to these suppliers or take part in any other decision concerning the construction of the Public Service Hall.

In fact, the National Bank states in their letter that they were given the land on which the Public Service Hall is built (and the National Bank is now located) by a Presidential decree on February 1, 2011 (N01/02/01). As a result, the National Bank received 5,500 square meters of real estate at 2 Sanapiro St. (with a stated value of 16,400,000 USD) as well as an attached land plot (worth 100,000 USD). In lieu of payment the terms of the presidential decree obligated the National Bank to spend 16,400,000 USD to co-fund the construction of the Public Service Hall.

The Georgian Constitution states that the National Bank shall be independent in its activity.

Photo: © InterPress News

Author: Eva Anderson and Mathias Huter