Georgian Prime Minister Irakli Garibashvili announced on Monday, March 4, that the country’s construction sector will be offered projects by the Georgian Government worth over 2 billion GEL ($647 million/€587 million) this year.
The initiative, which was launched in February by the Prime Minister, aims to boost the country’s economic growth and strengthen its public infrastructure by investing in new development.
While commenting on the move, Georgian PM said, “We provided the construction industry additional financial resources in exchange for guaranteed orders for construction and rehabilitation of public infrastructure.”
Moreover, he went on to say that several ministries had already submitted lists of projects that would be finished in three to five years, adding that the projects were “quite diversified.” Within a week, comprehensive information about the projects is expected to be accessible.
The PM also cited examples, such as the Education Ministry’s plan to renovate 800 schools to “European standards,” and said the Government aimed to start implementing projects originally planned for 2025 this year.
“In my opinion, this is an excellent offer for the business. On the one side, the Government will enforce its projects ahead of time, and on the other side, businesses will also benefit from this, as economic growth will be accelerated,” said Garibashvili.
Furthermore, Garibashvili also went on to say that the Government had already discussed the programme with banks in advance, adding they had agreed to finance the projects and allocate additional funding.
On February 14, the PM originally announced the Government’s initiative, revealing his team would offer developer businesses on the Georgian market guaranteed construction orders in order to assure 1-2 % additional economic growth by attracting new finances from banks for the developers.
The projects vary from the construction of half a million square metres of housing for internally displaced people to the construction of a “Police City,” the building and rehabilitation of law enforcement offices, and projects for rehabilitating and constructing schools and kindergartens.