Irakli Karseladze discussed problems related to budget adoption for 9 months and three main reasons
Irakli Karseladze discussed problems related to budget adoption for 9 months and three main reasons
23 October, 2018 19:51:04

First Deputy Minister of Regional Development and Infrastructure of Georgia, Chairman of Roads Department Irakli Karseladze discussed budget adoption for 9 months on live of TV 1 broadcast.

According to Irakli Karseladze, at this stage, the Ministry has adopted 80% of the budget. He emphasized on three main reasons related to non-adopted amounts: 1. Overly optimistic and incorrect planning of the Ministry’s budget; 2. Delayed work performance caused by design and building companies; 3. Problems regarding resettlement and population.

 “650 million GEL should have been performed by the Roads Department, though 503 million GEL was performed, therefore, 150 million GEL is missing, out of which the largest part is construction of highway roads. For instance, everyone is aware of the problems related to Samtredia-Grigoleti road project – regarding construction of the first road section, difficulties have been emerging for several years, as you know, the agreement signed with Ukrainian company is unilaterally terminated and this project is under investigation. In order to procure remaining works on this section, bidding was announced, and a winner company shall submit guarantee until November 1. After that, the contract will be signed.

On second and fourth section, where works are being carried out by Chinese companies Sinohydro and China Railway 23, everybody knows about settlement problems, which significantly delay arrangement of road pavement. In the case of Sinohydro, works are continued where it is technically possible and penalty is imposed on the contractor for every day overdue from work completion date, and in the case of China Railway 23, works are continued where it is technically possible and after expiration of date considered in the contract, which is until the end of December 2018, penalty will also be imposed for every day overdue.

Here, we are faced with the fact that despite existing settlements on these sections, the 2018 budget envisaged adoption of 100 million GEL, which is overly optimistic approach, obviously.

In relation to the third section of Samtredia-Grigoleti road, Italian company Todini did not start works during 1 year, and therefore, measures envisaged by the contract have been started, including possible termination of the contract.

30 million GEL was envisaged to carry out the third section.

In sum, out of 145 million GEL works to be performed, planned in 2018 on four sections of Samtredia-Grigoleti road, 40 million GEL works were performed within 9 months, and estimated performance of 2018 will be approximately 50 million GEL,” - mentioned Irakli Karseladze.

According to Irakli Karseladze, delays are also on Zemo Osiauri-Chumateleti section as well as so-called mountain roads programs, which were incorrectly planned from the very beginning. In sum, this non-adopted 155 million GEL was due to overly optimistic and incorrect planning of similar large projects.

 “Budget includes such projects that did not have donors, and they should not have been included in the budget. In addition, 170 million GEL was allocated on the access road to Anaklia Port and the railway, while the contract was immediately extended. Approximately 235 million GEL was planned overly optimistic,” – declares Irakli Karseladze.

According to Irakli Karseladze, they work actively on all problematic issues: “355 million GEL was allocated from the state budget and it is adopted. Moreover, excessive performance is also expected in these terms. In addition, three large projects were considered by the end of the year and in case of successful completion, we will have 100% performance and even a small excess is expected. Now, we are dependent on legal and procedural moments. We are against compromises in order to adopt the budget; biddings will not be conducted in violation of law,” – declares Irakli Karseladze.

ფოტო მასალა
Interactive Map
Georgia 0160, Tbilisi, Kazbegi ave N12,
Hot Line:
(995 32) 2 31 30 76
Join Us: