GEL130 million earned from privatizing buildings, GEL95 million transferred to the state budget
By Veronika Malinboym
Monday, January 4
Georgian Minister of National Economy Natia Turnava has announced that over the last year a total of GEL130 million has been earned from the program of building privatization. This number is GEL12 million more than the 2019 figures. More than GEL95 million out of this year’s earnings were transferred to the state budget.
The privatization is carried out under the 100 New Investment Offers to Business program introduced in 2019. According to the initiative, over 100 public buildings are offered for purchase to international businesses. An estimated initial cost of the selected buildings in 2019 was valued at GEL150 million, and GEL67 million this year. The buildings are offered for sale in a form of parallel auctions.
The legal issues, such as the valuation process, boundary specification, and property registration are handled before the day when the auction commences. Moreover, potential buyers can find detailed information about the buildings and non-agricultural land lots on the National Agency of State Property. Moreover, the website lists the recommendations on the building’s purposing. In 2019, the majority of buildings were to be used as industrial or storage units, and other purposing included hotels, hunting and fishing facilities, hotels, sports infrastructure, as well as medical and educational institutions.
In 2020, the starting value of all the buildings that were sold was GEL67 million, and the total earnings were estimated at GEL84 million. According to Turnava, the privatization of the building program has contributed to the country’s national economy, which has suffered significant damages as a result of the reduced business activity and the outbreak of a global pandemic in 2020. Prime Minister Gakharia stated that the government should consider privatization of the state-owned companies except for the strategic ones. PM Gakharia added that the companies that should be considered are the ones that can no longer be improved by the government and are merely a burden on the state budget. According to the PM, for the Georgian economy to strive, it is necessary to involve all of the state-owned assets in the process of its development.
