State announces 100 million GEL tender to ensure the completion of unfinished construction projects
The tender aims to support the construction sector in order to minimise the negative impact of the crisis on the construction sector and promote the stability of the real estate market. Photo: Nino Alavidze/Agenda.ge.
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The Georgian government has announced a 100 million GEL ($32.46 mln/€27.48 mln) tender to ensure the completion of unfinished construction projects. The government will then sign a sale option agreement with the winners of the tender and purchase not more than 30 per cent of the total living space of each building.
The tender aims to support the construction sector in order to minimise the negative impact of the crisis on the construction sector and promote the stability of the real estate market.
Georgian PM Gakharia said the initiative was proposed after the introduction of mortgage subsidies to stimulate the development sector in the country, noting in 2008-2009 many buildings were left unfinished which made cities ugly and also caused many social problems for the citizens.
The tender may be announced several times but the total budget should not exceed 200 million GEL.
Applications will open at 09:00 on August 27, 2020 and end on September 11, 2020 at 18:00.
What support can Georgian citizens expect?
The government of Georgia has announced the third phase of its anti-crisis plan in order to ease the burden caused by the coronavirus crisis.
The Georgian government is working with experts from the University of Cambridge and the University of London as well as Deloitte analysts and local experts to create a post-crisis economic plan and decide what steps they should take in order to improve the Georgian economy after the coronavirus lockdown.
How does the gov’t plan to support the construction sector?
The Prime Minister of Georgia Giorgi Gakharia has presented a fourth anti-crisis plan today worth 434 million GEL aimed at supporting the construction and development sector of Georgia. He said that the construction and development sector was one of the fastest growing sectors which employed 120,000 people in 2019.
Georgia will spend 3.5 billion (about $1.10b/€1.02b) on its coronavirus anti-crisis plan, Georgian Prime Minister Giorgi Gakharia announced earlier today. "For now, the country will spend GEL 3.5 billion on managing the crisis, of which 1.035 billion GEL will be directed at social support of citizens, 2.11 billion GEL will be directed at the economy and entrepreneurs, while 350 million GEL will be spent on the health care of each citizen", Gakharia said.
The state has already subsidised about 90 million GEL worth of mortgages since the introduction of the programme back in late May, President of the Banking Association of Georgia Alexandre Dzneladze has announced.
Georgian Best Energy Group has purchased 25 per cent of shares in electricity distribution company Telasi, which serves the Georgian capital city of Tbilisi, for $10.5 million.