PM offers developer companies guaranteed construction orders to ensure 1-2% additional economic growth
The prime minister also raised topics of projects ranging from the construction of half a million square metres of residential space for the internally displaced persons, as well as a construction of a ‘Police City’, building and rehabilitation of police offices, and projects for rehabilitating and constructing 800 schools and kindergartens. Photo: Nino Alavidze/Agenda.ge.
Tweet 
Share
The Georgian government will offer developer companies on the Georgian market guaranteed construction orders to ensure 1-2 percent additional economic growth through attraction of new finances from banks for the developers.
Prime Minister Irakli Garibashvili said on Monday his government would propose to the companies “that they attract additional financial resources in the local market from banks”, with the prospect of repaying the loans in instalments over the next three to five years, “with our guarantee”.
Aimed at accelerating growth and improving public infrastructure, the initiative is projected by the PM’s economic team to bring in additional 1-2 percent of growth and “satisfy the interests of the state and citizens”.
Garibashvili commissioned Levan Davitashvili, Deputy Prime Minister and Minister of Economy and Sustainable Development of Georgia, to start talks with business enterprises over the initiative, with Davitashvili himself adding the ministry was developing measures aimed at supporting business while protecting state interests.
The readiness of the construction and development sectors to get involved in such projects allows them to attract financial resources on their own, and therefore we will accelerate the orders that the state needs, and instead of five years of procurement, we will announce large-scale procurement this year,” Davitashvili announced.
The move comes with Garibashvili’s statements on a need for “economic growth accelerators”, with the PM saying the initiative meant the government planned to invest an additional GEL 500 million ($170 million/€149 million) in 2022 as the minimum, with a prospect of “freely us[ing] up to 1 billion Lari.”
The prime minister also raised topics of projects ranging from the construction of half a million square metres of residential space for the internally displaced persons, as well as a construction of a ‘Police City’, building and rehabilitation of police offices, and projects for rehabilitating and constructing 800 schools and kindergartens.
A total of 10,095 building permits covering 7.4 million square metres were granted in Georgia throughout 2021, the National Statistics Office of Georgia (Geostat) revealed today.
The Asian Development Bank (ADB) and local company Optima have signed a $10 million loan to develop affordable and sustainable residential housing developments in the Georgian capital city of Tbilisi, announces the ADB. The loan will finance two residential complexes, providing over 3,700 affordable and energy-efficient apartments for people on low-to middle-incomes.
Georgian Prime Minister Irakli Garibashvili has announced today that the government plans to tighten construction regulations even further. "Construction permit issuance procedures should be strictly controlled and such a mistake should not be allowed a second time", said Garibashvili, referring to a residential building which collapsed in the Black Sea coastal city of Batumi last week killing nine.
Proposed amendments to the tax code are looking to resolve the issue of numerous incomplete construction sites by offering incentives to companies who will dismantle unfinished buildings across the country and build new ones on the same site.
The Construction Cost Index in Georgia increased by 13.6 percent in the fourth quarter of 2021 compared to the same period of the previous year, the National Statistics Office of Georgia (Geostat) announced on Thursday.
The Georgian Government will offer projects worth about 2 billion GEL ($647mln/€587mln) to the construction business in the country this year, Georgian Prime Minister Irakli Garibashvili announced on Monday.