“We plan to establish a centralised procurement agency from June next year. This is, among other things, a requirement of the European Union and a key obligation under the Association Agreement,” stated Levan Zhorzholiani, Head of the Government Administration, during an interview on Imedi TV.

Zhorzholiani explained that the new agency would operate as a single, centralised body responsible for procurement, with specific margins set for certain services or goods.

“We aim to launch this centralised procurement agency from June next year. As I’ve mentioned, this is one of the EU’s requirements and an obligation under the Association Agreement. We have committed to fulfilling all our obligations under this agreement, and, in fact, the country needs this reform.

The agency will oversee all major purchases, with defined margins for particular services or goods. For example, if the government needs to purchase laptops costing between 500,000 and 1 million lari, the agency will handle the procurement, rather than individual ministries. One central agency, led by a responsible and highly skilled team with extensive experience in public procurement, will oversee this process.

All large-scale acquisitions will be transferred to this agency, which will serve various ministries, as well as specific legal entities, both legal and non-entrepreneurial, non-commercial organisations. This arrangement will be highly convenient for all parties involved, as the agency will assume responsibility for tasks such as placing orders, conducting market research, and even verifying technical specifications,” explained Zhorzholiani.

He added that the centralised procurement authority would also oversee the delivery of goods and ensure contractual compliance.

“Monitoring is equally crucial; while tenders are issued and contracts signed, ongoing oversight is vital. The Centralised Procurement Agency will monitor the delivery and execution of contract terms. The Government Efficiency Department will also be involved in this process.

We have identified shortcomings in managing subsequent contracts, such as delays and extensions, and we need clear policies on penalties and fines. It’s important that contracts are executed to a high standard and that fines imposed on companies do not hinder their operations. Implementing a balanced and fair policy on fines is essential.

The agency will oversee all of this, starting in the second half of 2026, in collaboration with the Government Efficiency Department. Our goal is for this agency to take responsibility for all large purchases, ensuring accountability. If there are any deficiencies, we must hold the agency accountable and closely monitor how effectively the agreements are managed,” said Zhorzholiani.