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Wednesday, June 7, 2023

Georgia: PM offers developer companies with guaranteed construction orders to assure additional economic growth of 1-2 %

The Georgian government is trying to woo developer companies by providing offers on Georgian market construction orders to achieve 1-2 per cent additional economic growth by tapping finances from banks and other financial institutions for developers.

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The Georgian government is trying to woo developer companies by providing offers on Georgian market construction orders to achieve 1-2 per cent additional economic growth by tapping finances from banks and other financial institutions for developers.

PM said his government is also working on a plan to assure the companies “that they would bring additional financial resources in the local market via banks”, with the prospect of repaying the loan in instalments over the next three to five years, with the backing of sovereign guarantee.

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As per the sources, Prime Minister Irakli Garibashvili’s economic team has projected the initiative to bring in additional growth of 1-2% to bolster and accelerate the economic growth and to improve the country’s infrastructure for the public, thereby satisfying the interests and needs of the people and state.

Moreover, Garibashvili commissioned Levan Davitashvili, Deputy Prime Minister and Minister of Economy and Sustainable Development of Georgia has decided to start talks with the business enterprises regarding the initiative being taken by the government to upgrade the infrastructure and to strengthen the economy of the nation by bringing in an additional contribution of 1-2 % of the growth. In addition, Davitashvili said that he was making plans to achieve the aim by supporting and strengthening the businesses while protecting the government interest.

Davitashvili announced the readiness of the development sectors to take part in such projects would allow them to attract finances on their own. Therefore, we will speed up the orders that the country needs, and regardless of 5 years of procurement, the government will announce a large scale procurement by the end of 2022.

However, the move comes with the Prime Minister’s statement on a need for economic growth accelerators. Furthermore, he said that the government has planned to flourish an additional GEL 500 million in 2022 as the minimum, with a prospect of freely using up to 1 billion Lari.

The leader of the country, Irakli Garibashvili, also raised the topics for creating residential places for the internally displaced persons and as well as a construction of a ‘Police City’,¬† ¬†rehabilitation of police offices and building, and projects for rehabilitating and constructing 800 schools and kindergartens.

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