Georgia Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in georgia, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Selling to the Public Sector
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Selling to the Government

The Competition and State Procurement Agency is a state organization that governs government procurement through the e-tender system introduced in 2011. State purchases in the range of $1,850- $74,000 (GEL 5,000- to 200,000) are conducted through a simplified electronic tender which is a substitute to single-source procurement. Purchases above $74,000 (GEL 200,000) mandate a call for a regular e-tender.

The Law on State Procurement requires an international tender announcement for contracts exceeding around $740,740 (GEL 2 million) for products and services, and around $1.48 million (GEL 4 million) for public works projects.

Budgetary constraints limit the government’s purchasing power. International organizations and foreign governments finance many major procurement purchases, and respective tenders are carried out in line with their regulations and requirements.

Credit terms are one of the most important factors in government purchasing decisions. Product quality and supplier reputation are other factors. However, government procurement is often driven by a lowest bid consideration versus a best value for money approach, which can lead to the cheapest offer winning at the expense of quality.

The time allowed for preparing bids after the announcement of a tender is frequently short. Documentation requirements, including Georgian translations, can be onerous for companies not based in Georgia. In addition, some companies experience challenges with qualifying for tenders due to narrow specificiations or lack of familiarity with U.S. products.

Information about tenders is available from the Georgian Competition and State Procurement Agency and individual ministries such as the Ministry of Defense.

The Georgian government finances some public work projects through borrowing from Multilateral Development Banks. Please refer to the “Project Financing” Section for more information.

U.S. companies bidding on foreign government tenders may also qualify for U.S. Government advocacy. Within the U.S. Commerce Department’s International Trade Administration, the Advocacy Center coordinates U.S. Government interagency advocacy efforts on behalf of U.S. exporters in competition with foreign firms in foreign government projects or procurement opportunities. The Advocacy Center works closely with our network of the U.S. Commercial Service worldwide and inter-agency partners to ensure that exporters of U.S. products and services have the best possible chance of winning government contracts. Advocacy assistance can take many forms but often involves the U.S. Embassy or other U.S. Government agency officials expressing support for the U.S. exporters directly to the foreign government. Consult the Advocacy Center’s program web page on trade.gov for additional information.

Financing of Projects

For project financing and risk insurance, American investors and exporters may contact the U.S. International Development Finance Corporation (DFC), formerly the Overseas Private Investment Corporation (OPIC), which provides direct financing and insurance coverage against political risk, currency inconvertibility, expropriation, and political violence.

The Political and Economic Section of the U.S. Embassy in Tbilisi can provide contact information and assistance to any U.S. firm about export financing, insurance, local and domestic business associations and partners, and business climate information.

Multilateral Development Banks and Financing Government Sales

Price, payment terms, and financing can be a significant factor in winning a government contract. Many governments finance public works projects through borrowing from the Multilateral Development Banks (MDB). A helpful guide for working with the MDBs is the Guide to Doing Business with the MDBs. The U.S. Department of Commerce’s International Trade Administration has a Foreign Commercial Service Officer stationed at each of the five different MDBs: the African Development Bank; the Asian Development Bank; the European Bank for Reconstruction and Development; the Inter-American Development Bank; and the World Bank.

Georgia is a borrower from Multilateral Development Banks such as European Bank for Reconstruction and Development, Asian Development Bank, and World Bank.

Learn more by contacting:

  • Commercial Liaison Office to the Asian Development Bank

  • Commercial Liaison Office to the European Bank for Reconstruction and

  • Development

  • Commercial Liaison Office to the World Bank.

Georgia also has other internal sources of project financing separate from the banking sector, such as the Co-Investment Fund and Partnership Fund, and the government supported “Produce in Georgia” program. For additional information on this topic, including content of relevance to U.S. investments, please visit the U.S. Department of State Investment Climate Statement.

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Welcome to the Global Business Navigator, an artificial intelligence (AI) Chatbot from the International Trade Administration (ITA). This tool, currently in beta version testing, is designed to provide general information on the exporting process and the resources available to assist new and experienced U.S. exporters. The Chatbot, developed using Microsoft’s Azure AI services, is trained on ITA’s export-related content and aims to quickly get users the information they need. The Chatbot is intended to make the benefits of exporting more accessible by understanding non-expert language, idiomatic expressions, and foreign languages.

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