State enterprise «National Institute for Development Infrastructure»
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BUSINESS TRIP COMPLETION

Today the Ukrainian delegation headed by Artem Bezuglyi, Director of “DerzhdorNDI” SE,  completes its working business trip to Tbilisi (Georgia).

During the visit, we made sure that deregulation in all spheres of life is a key principle of Georgia's successful development. The following tendencies of development of the Georgian road branch were noted:

  1. All types of road works, related works and services (designing, technical supervision, engineering, etc.) are operated exclusively by private enterprises.
  2. During procurements of design works and technical supervision services at budget facilities, the same problem as in Ukraine often arises - dumping by more than 60% of the expected value. The reason is the unified criteria for evaluation of the tender offer – the price. At facilities commissioned by international financial organizations, the qualification of the bidder has the primary importance, no questions arise as to the results of the tender, however this situation is not critical for Georgians, as the biggest share of their funding is occupied by MFI funds, but not by the budget funds.
  3. The Department of Roads under the Ministry of Infrastructure of Georgia takes care of the road network of more than 21 thousand km and is the only customer of works and services.
  4. 600-700 km are repaired annually and 50-60 km of new roads are built.
  5. Georgia does not have its own road regulatory framework. Also, there is no state support for road science. Innovations are introduced by public leaders or enthusiasts, such as Tamaz Andriiovych Shylakadze, who is a prominent scientist of the country without financial support from the state.
  6. Georgia has a law according to which customers and designers can use the available regulatory framework of any country (EN, DIN, American Standards, etc.). The main thing is innovative progressive decisions, but not a place for adopting of norms.
  7. In Georgia, is the concept of "experimental building", which allows easily act on road construction sites. The experimental facilities are subject to certain conditions in terms of warranty period and quality of work.

Georgian colleagues have many questions about our post-Soviet pricing - why should the winner of tender with the lowest contract price confirm the cost of materials, number and name of machines, man-hours, indicate the profit amount, salary, etc. after winning the tender?

Conclusions from the business trip.

  • The way of reforms chosen by the Ukravtodor team is the right one.
  • We continue the practice of implementing in Ukraine the best world standards, the experience of the EBRD and IBRD - primarily - in terms of procurement, pricing and approaches for designing.

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