Nika Melia, Tbilisi Mayoral candidate, told Davit Narmania that he was unable to use GEL 200 million in 2013 during his tenure as Minister of Regional Development and Infrastructure during the debates held between Tbilisi mayoral candidates on TV3 on 29 May, 2014. Davit Narmania responded that GEL 800 million was spent on infrastructural work during his tenure as Minister which is GEL 140 million more as compared to the work implemented in 2012. According to the statement by Nika Melia, the Ministry of Regional Development and Infrastructure used to spend up to GEL 700-800 million annually on infrastructural projects.

took interest in the accuracy of Nika Melia’s statement and checked it.

was writing about the unused expenses of the Ministry of Regional Development and Infrastructure earlier in 2013. According to the report on the implementation of the state budget published on the website of the Ministry of Finance, the adjusted budget plan of this Ministry in 2013 amounted to GEL 1 003 599, 8  while the cash implementation was equal to GEL 798 595,1 (GEL 143 519.9 more than in 2012). Accordingly, unused expenses amounted to GEL 205 004, 7. Unused expenses are mainly the result of two programs, in particular:

Unused expenses within the regional and municipal infrastructure rehabilitation project amounted to 94 764.7 GEL which is mainly caused by the fact that the implementation of this project was postponed since the technical documentation presented to the donors by the winner organizations was rejected in the tender announced for the purpose of constructing the Rustavi-Tbilisi highway.

Unused expenses within the recovery and rehabilitation of water supply infrastructure project amounted to GEL 67 261, 9 which was caused in the main by the fact that the signing of the credit agreement with 16 donors within the scope of the water infrastructure recovery project II (EIB, EU) was delayed, several projects were postponed due to some changes in project indicators and work was not implemented on time (behind schedule) due to financial difficulties created in the contractor organisations.

It should be noted that Narmania’s Ministry used only 78 % of the allocated budget in 2013 despite the fact that it spent GEL 143 million more as compared to 2012.

checked the second part of Nika Melia’s statement where he talked about the cost of infrastructural projects implemented by the Ministry of Regional Development and Infrastructure.

According to the report on the implementation of the state budget, the adjusted budget of the Ministry of Regional Development and Infrastructure in 2012 amounted to GEL 767, 980.0 while the actual performance was GEL 655,075.2 which is GEL 179 493.3 less than the corresponding figure in 2011.

It is possible to look for the plan of the infrastructure projects to be implemented in 2012 as well as the report (p.110-122) of their actual performance (p.40-45) in the report on the implementation of the state budget. It is noteworthy that the Ministry of Regional Development and Infrastructure was able to use 85% of the adjusted budget in 2012.

The adjusted budget (p. 94-102) of the Ministry of Regional Development and Infrastructure in 2011 was equal to GEL 854, 484. 8 while the actual performance was GEL 834,568.5. The Ministry of Regional Development and Infrastructure used 97% of money allocated for it.

The adjusted budget (p. 175-185) of the Ministry of Regional Development and Infrastructure in 2010 was equal to GEL 728 220.8 while the actual performance was GEL 716 704.5 which is  GEL 38 665.1 more than the corresponding figure in 2009. The Ministry of Regional Development and Infrastructure used 98% of money allocated for it.

The adjusted budget (p. 75-79) of the Ministry of Regional Development and Infrastructure in 2009 was equal to GEL 558, 382. 9 while the actual performance was GEL 519, 445. 1. It is noteworthy that the Ministry of Regional Development and Infrastructure was created in 2009 and it used 93% of the budget allocated for it.

checked the accuracy of the data indicated by Nika Melia during the debates. According to the information we obtained it is revealed that Melia is telling the truth in the first part of the statement when he talks about the unused GEL 200 million. The Ministry of Regional Development and Infrastructure was not, in fact, able to use GEL 205 004.7 in 2013.

As for the second part of Nika Melia’s statement, besides 2009 and 2012, the Ministry of Infrastructure and Regional Development was, in fact, implementing GEL 700 to 800 million worth of infrastructural projects. It should be noted that as compared to the previous years, Davit Narmania’s Ministry was able to use the least amount of money in terms of percentage.

Originally published in The Financial, issue N. 24 (404)