Gurian-Consulting Press Office -

Buried treasures in Georgia

pict_Buried treasures in Georgia

What are these assets?

  • 70% of agricultural plots are state-owned (according to the latest 2014 census). In order to achieve stronger economic growth, it is essential that the State sells these assets and transfers them to the private sector in order to exploit them.
  • There are approximately 960 semi-precious mineral mines in Georgia. These mines are all 100% state-owned. 61 fixed-term licences have been issued for these assets. But licensees, as they do not own the assets, are not at all interested in upgrading mining sites with high-tech equipment to improve the quality of production and productivity of these mines. Their main interest is to generate as much revenue as possible in the short term with as little as possible in overhead, equipment and technology.
  • Georgia has many public buildings. 70 to 80% of them belong to the State. Most of them in a state of disuse. To enhance their value effectively, it would also be essential to privatize them.
  • Forest resources. All forests in Georgia are 100% state-owned. Nowhere else in the world does this situation exist.
  • State Enterprises. There are 135 state-owned enterprises in Georgia, which are financed from the state budget. In fact, Georgia finances them through taxes and the latter are generally in deficit. According to our information, 7 of them are practically in bankruptcy. It would also be essential to privatize these companies or to establish partnerships between the State and private entities in order to enhance their value.

All the assets mentioned above should be re-qualified as public assets, in order to transfer them to the private sector and enhance their value. These measures are essential to achieve the objective of double-digit economic growth in the future," concluded Makalatia.