Participation of foreign companies in state tenders has doubled - საერთაშორისო გამჭვირვალობა - საქართველო

Participation of foreign companies in state tenders has doubled

09 November, 2014

Transparency International Georgia has conducted a small research about participation of foreign companies in state tenders and brought together the statistic data. This data was gathered using our tender monitoring website and state electronic procurement system

During the years 2011-2014, about 150 foreign companies were identified in state tenders. These companies participated in about 250 tenders and have signed contracts with value of more than GEL 130 million.

During only 9 months in 2014, foreign companies have accumulated GEL 73 million by signing state contracts, in contrast to past three years, when their revenue totalled at nearly GEL 58 million.

During the years 2011-2014 foreign companies have won about half of successfully completed tenders (Tenders that have been interrupted or ended unsuccessfully are not referred). In most cases foreign companies lost to Georgian companies. During 2014, in comparison to previous years, amount of foreign companies’ offers has doubled. This number didn't change much during 2011-2013. Regardless, participation of foreign companies in state tenders is still negligible and makes up 0.2% of all tenders. Largest foreign contractors During years 2011-2014 companies from more than 40 countries have participated in Georgia’s state tenders. Most of these countries are European. The largest revenue by contracts signed with state agencies has been accumulated by Turkish companies. Amount of income generated by Turkish companies is 35% of income generated by all foreign companies. Turkish companies are also leading by number of participation in tenders; they took part in over 40 tenders and won 25 of them. Other neighbouring countries fall far behind Turkey, Azerbaijani and Armenian companies have not won any Georgian tenders. As for Russian companies, Ltd. “Investoriregion” has won 2 tenders for construction work and accumulated a total of GEL 6 million.

During 2014, in comparison to previous years, large contracts have been signed with Australian, Russian and Chinese companies. Before 2014 companies from these countries took very little or no part in state tenders. Some companies from countries like: Germany, Denmark and Lithuania participate in Georgian state tenders annually and their income is large. In case of some countries, most of the revenue is generated by few large contracts; this doesn't represent frequency of offers from these countries. For example, Austrian companies hold third place by total income over 4 years, but this amount is generated by only 4 state tender participations.

More than 20 tenders signed with foreign companies are worth more than a million Lari. Most of them have been signed in 2014. The largest contract (GEL 15 380 000) has been signed withan Austrian company “RMS Ropeway Maintenance Systems” for installation of the ropeway system in Tetnuldi and construction of appropriate infrastructural facilities.

The largest part of funds spent on foreign company services and product goes to construction work and construction materials. A large part of expenditure goes to medical equipment and pharmaceutical product.

Author: Ana Dabrundashvili