New procurement system will boost transparency, fair pricing, Gov’t administration head

Levan Zhorzholiani, the head of the Georgian Government administration, has claimed that a new electronic procurement mechanism would “significantly increase” transparency and prevent price manipulation in public spending.

Speaking on the TV channel Imedi, the official said transparency remained one of the current administration’s “core principles,” noting that all government decrees and decisions were now publicly accessible.

Zhorzholiani highlighted the introduction of a new Market Research System (MRS), which he said replaced the previous practice of conducting price inquiries through emails sent to only a small number of suppliers.

“Everything is open,” he said. “If anyone has questions, we are ready to answer. Every government decision is available for the public to see.”

Under the new system, all suppliers operating in the relevant market will receive automatic notifications once a state entity begins market research for a particular good or service. The official said this would eliminate claims that companies were unaware of procurement opportunities.

“If there are 20 or 30 suppliers, every one of them will be able to participate and submit their prices,” he said. “This eliminates the possibility of side agreements, because while a company can negotiate with two or three suppliers, they cannot do so with thirty.”

According to the government, the lowest proposed price would be used as the basis for announcing a tender, after which competition may further reduce costs.

The module has already been operating in test mode, and all purchasing organisations will be required to use it from 1 January.

Zhorzholiani also said that procuring entities would not be able to view prices submitted during the market research phase until the deadline expires, preventing any opportunity to pressure companies to adjust their bids.

“This rules out the old practice where someone could call a supplier and say ‘lower the price’ after seeing others’ offers,” he added.

He also said that commercial and personal data will remain protected within the system, addressing concerns from companies about sensitive information becoming public.

The official said the new approach will help Georgian public institutions secure “fair prices” rather than artificially low or inflated ones, leading to savings and enabling state bodies to “do more with the same budget.”

Zhorzholiani added that the reforms were part of the government’s broader aim to position Georgia “among the top three European countries with the lowest levels of corruption,” a goal repeatedly stated by Prime Minister Irakli Kobakhidze.

“There is no system that eliminates risk 100%, but if we reduce it by 95%, the results over the coming years will be significant,” he said.