Infrastructure Minister denies “uncontrolled” spending related to Rikoti Pass project

Georgian Infrastructure Minister Irakli Karseladze on Friday called the “false” accusations by the domestic opposition on the financial statements regarding the construction of Rikoti Highway “absolute nonsense” and said the International Financial Institution carried out money transfers itself.

Karseladze said “no payment” was made without the supervising company's proper confirmations, the presentation of documents and the confirmation of different forms.

He also said that the allegation on “insufficient construction” of Rikoti Highway was “unfounded”, as it was prepared by experienced companies, with the involvement of independent experts, and was approved only under the conditions of their confirmations.

Projecting and purchase of relevant services was carried out according to the procedures of the World Bank and the Asian Development Bank. It is a quality-based procurement procedure, which first of all takes into account the technical evaluation of the company and the engineers, experts, team represented for the project, also takes into account the experience of similar large-scale projects and many other parameters, as well as financial experience and various requirements”, he said.

Rikoti Highway, Photo: Infrastructure Ministery

He noted “none” of the 10 companies involved in the process were listed on the blacklist of financial institutions, and stated it was “impossible” for a company that had been sanctioned to be on the blacklist to be selected for a project.

The Minister said 140 engineers and experts, including 56 international and 84 local, worked only on the projection of the new Highway.

Karseladze said the international financial institutions themselves employed independent specialists in order to participate in the design process, adding the “ultimate approval” of the projects, which were “then defined as projects prepared for the construction tender” in the form of “adequate, satisfactory, quality projects”, was only granted on the terms of their confirmations, audits, and afterwards final confirmation.

When it comes to experts hired by international institutions, we dealt with very experienced representatives and companies from German, French, Italian, Australian, Austrian and other very successful, highly experienced countries. Therefore, the conversation as if something was missing from the project, something was not done properly, is absolutely groundless”, the Minister said.

Rikoti Highway, Photo: Infrastructure Ministery

The Minister also responded to one of the accusations regarding the ongoing project of the new highway at Rikoti Pass that it was closed, with him explaining that due to “potential landslide” found around the 200 metres from the kilometre 149 section old road.

The decision to close Ricoti was made immediately. The road was widened, the collecting buffer was tripled and a corresponding wall was also arranged. We could already, under the conditions of establishing the appropriate special regime, provide the safest possible environment. Even under these conditions, migration remains absolutely safe today", said the minister.

The official also mentioned a landslide incident in March that occurred on the kilometre 10 section of the Ubisa-Shorapani road of the East-West Highway prior to reinforcement works planned on the section.

He said the error was fixed by the contractor company completely paying for the remedy adding “no money” was given by the Georgian Government as it represented a “general rule” that the contracting company should respond to an error by identifying the issue and fixing it.