Istanbul, Turkey April 26-29, 2010

 Law of Georgia on State Procurement  The first law on State Procurement in Georgia was adopted in 1998 and was enacted by the Parliament on July 1, The law was modeled on the UNCITRAL model law and was the first legal instrument to govern and streamline public procurement. Since then significant amendments has been made to the Law.  Regulation on Rules for Conducting State Procurement  Implementing regulation first was adopted in 1999 by the Decree of the Minister of Economy. In its current for it was adopted in 2001 by the Order of the Chairman of State Procurement Agency.

Law applies to:  Expenditures financed from State, Autonomous Republics’ and local budgets;  Expenditures of organizations financed from State, Autonomous Republics’ and local budgets;  Expenditures financed from grants and credits received through International Agreements with foreign States or International Organizations, as well as foreign residents;  Expenditures financed through State aid;  Expenditures of Legal Entities of Public Law;  Expenditures of enterprises with more than 50% of State share;

Law does not apply to:  State secrecy;  National Bank of Georgia related to implementation of fiscal policy;  Religious organizations;  Electricity, natural gas and water supply;  Mobile telephony (until January 1, 2011);  Reserve funds of President, Government and Mayor;  Visits and meetings, sending and hosting of delegations by President, Speaker of Parliament, Government, Tbilisi Mayor, Ministry of Foreign Affairs;  Services of non-staff (temporary) employees;  Expenditures incurred during business trip;  Expert services prescribed by Criminal Procedure Code;  Acquisition of real estate or rights in real estate;  Financing and use of educational, healthcare and social protection vouchers;  Procurement of TV/Radio air;  Public Broadcasting on procurement of TV/Radio and via-satellite broadcasting services from non-residents;

 Number of Procuring Entities – up to 5000  Means of Procurement: Single Source, Price Quotation, Open Tender

 The primary agency in charge for public procurement in Georgia is State Procurement Agency that is a legal entity under public law and is responsible for coordinating and monitoring of state procurement. SPA was established by amendments to Law on State Procurement in March 2001 and its Supervisory Council was appointed by Presidential Decree in June  Number of staff – 37 permanent, 9 temporary  Financing (2009): GEL (app USD) – State Budget GEL (app USD) – own income, 50 GEL per bid submitted

 develop and publish normative acts and standard bidding documents  study and systematically analyze the state procurement  develop training programs, methodological materials, and formats for seminars and workshops  develop and monitor centralized procurement data base  maintain the registry of qualified suppliers and blacklisted companies  consult and guide procuring entities  introduce modern information systems in state procurement  publish normative acts and reports on state procurement  provide dispute settlements related to state procurement  supervise the legality of procedures related to state procurement

 Major amendments to legislation:  100% E-GP from September 1, 2010  Abolished 70% preference on local labor force  Obligation for procuring entities to announce estimated contract value  Introduced oral bargaining mechanism  Abolished quarterly reporting obligation for Procuring entities with less than GEL annual procurement, annual reporting introduced instead  Civil Society representatives introduced in dispute resolution procedures  Procurement system was crosschecked against OECD-DAC Pillars  60% of WB’s recommendations provided in Country Assessment Report (2008) were implemented with these amendments.

 World Bank  , IDF Grant For Strengthen E-Government Procurement in Georgia  2010 – support in procurement of full IT infrastructure for E-GP  EU&OECD – Sigma  2010 – development and implementation of Action Plan, Training Strategy, National Strategy, capacity building  GTZ  2010 – development and implementation of public awareness campaign, strategy for SME wider involvement, digitalization of paper records

 E-Ordering  E-Invoicing  E-Catalogue

THANK YOU STATE PROCUREMENT AGENCY Pekini Ave. N28 Tbilisi 0160, Georgia Tel: (995 32) , Fax: (995 32) Web: