HOW THE TBILTSKALKANALI IS SOLD?

By Eka Gabadadze

After about one and half centuries of existence, Tbilisi water-supplying system, because of nonprofits, falls in the hardest state. Solvency is again considered in attraction of foreign investors. For now, Tbiltskalkanali is getting ready for tender.

Unexpectedly for everyone, eight widely recognized international companies apply to tender. Being experienced with ITS and AES ones, the Tbiltskalkanali tender is worked out more carefully. Thus, some problems emerged here too. Electricity, then Customs and gas? Now it’s time for water. Seems like Georgian specialists are unable to manage organizations without help and financial aid of foreign investors. Why is simple, as there are number of reasons. However, fact is that Tbiltskalkanali needs help.
Today, many think that Tbiltskalkanali is sold, but all of the related official bodies inform vice versa, explaining that Tbiltskalkanali is going to be rented to the tender winner for a certain period and not sold forever. This field needs too serious investments those are unattainable for State Budget of Georgia now. As the top problem remains collection of amounts for consumed water from customers, which is practically unsolvable if the system remains under State’s rule. At the same time, it is the most profitable and prospective business, as water was, is and will be of vital meaning.
What is the reason of Tbiltskalkanali’s today’s state? According to 1999 estimates and information by Tbilisi State Property Management Department, Tbiltskalkanali made a loss of 4,152,000 GEL to State Budget. Most likely, the loss increased about two times since 1999.
THE CHRONICLE OF ANNOUNCED TENDER
There are eight biggest international companies participating in tender: Berlin Vasseur International (Germany), Sever Trend International (Great Britain), General D’eso (France), Lyons D’eso (France), and Alan Water (Great Britain). Joint Ventures: Achea (Italy), Aqua-Detto (Italy), United Utilities (Great Britain), Water International (Netherlands), Thames Water (Great Britain), and Tappal Group (Israel).
Main criterion of selection is capability of the company including qualification and experience as well as financial state and high qualification of personnel. As to financial abilities, annual turnover of company has to exceed 50 million US dollars. Besides commission will test the experience and qualification that has to be non less then 2 years of related works, company has to be serving for non less then 150000 customers. Each staff has to be experienced non-less then 15 years of related works and 5 years of the same job. Tender also requires supply of high quality water and tariff regulation.
Tbiltskalkanali tender is carried out in frames of World Bank program. Tender commission includes 13 members those are headed by Tbilisi Premier Gia Sharadze. Commission is representative and probably it’s caused by strategic meaning of the object. Members are representatives of Ministries of Finance, Justice, Environment, and State Property Management as well as President Chancellery. With the WB requirement and recommendation, English consulting company GIB carries consulting services.