The Tbilisi Transport Company issued an international tender for the acquisition of new metro rolling stock a few days ago. The company plans to purchase 97 electric metro cars (13 trains comprising four carriages each and nine trains with five carriages), with the total value of the tender set at EUR 210 million, as outlined in the tender documentation. A total of EUR 125 million will be financed through a loan from the Asian Infrastructure Investment Bank (AIIB). Delivery of the carriages is expected to begin in 2026.
The plan to renew Tbilisi metro carriages was first initiated in December 2020. Later, it was announced that the Russian company Metrowagonmash had won a tender worth approximately EUR 50 million, funded by the European Bank for Reconstruction (EBRD) in 2022 (refer to article). However, Tbilisi City Hall and the EBRD suspended payments to the company following Russia’s invasion of Ukraine. Subsequently, the contract with Metrowagonmash was later extended (Tbilisi City Hall cited financial penalties for early termination). Eventually, the contract was terminated. A new tender for metro carriage procurement was announced a few days ago, as previously mentioned.
The procurement of metro cars is not the only project that has experienced repeated tender announcements and delays.
The Tbilisi Transport Company issued a tender (SPA160025748) for construction and installation works at the Varketili metro station in 2016 during Davit Narmania’s tenure as Tbilisi Mayor. The initial tender cost was set at GEL 396,000. Only one bidder, Kvarelremmsheni LLC, participated in the process. Consequently, a contract between the Tbilisi Transport Company and Kvarelmsheni LLC was finalised on 30 November 2016 after three rounds of bidding.
The final value of the contract was set at GEL 347,852 with the planned completion timeline of 220 calendar days. Ultimately, the metro station was handed over to the City Hall without proper quality inspection of the construction work performed. The expert companies involved – Realexpert and Construction Expertise Bureau LLC – issued reports that assessed only the volume of the work rather than its quality (see article for further details). Notably, Kvarelremmsheni LLC had been blacklisted by the State Procurement Agency in 2015.
As a result, the so-called suspended ceiling system at the Varketili metro station collapsed, injuring 14 people on 30 January 2018. An investigation was launched under Article 240 of the Criminal Code of Georgia addressing violations of safety standards in mining and construction work. The Prosecutor’s Office charged three individuals linked to the incident. The City Court later imposed a bail of GEL 35,000 on each of the accused as a preventive measure.
The necessary cost-estimation documents, as well as architectural and design projects for the rehabilitation of the metro station, were procured in the following years, during 2019 and 2020.
The Tbilisi Transport Company announced a new tender (NAT220001038) for the rehabilitation work of the Varketili metro station in January 2022. The projected cost of the procurement was set at GEL 7,057,389. The project planned comprehensive renovation work, including the complete rehabilitation of both lower and upper vestibules (ceiling, walls, floor, tunnel, etc.), However, the tender was ultimately cancelled.
The Tbilisi Transport Company issued a new tender for the rehabilitation of the Varketili metro station (NAT220005178) which was awarded to the sole participant, Mamisoni. The value of the contract was set at GEL 12.7 million, with an 18-month timeline for completion. However, Tbilisi City Hall unilaterally terminated the contract with Mamisoni in November of the previous year, citing the company’s failure to meet the contractual requirements. The rehabilitation works had not even commenced despite six months having passed since the contract was signed; thus, it became clear that the company was unable to fulfil its obligations within the agreed timeline based on reasonable assessments of the circumstances, according to City Hall.
Following this, the Tbilisi Transport Company signed a simplified procurement agreement with Bada Construction LLC. The value of the agreement was GEL 13,398,611 with an 18-month timeline and the deadline set for June of this year for the rehabilitation of the Varketili metro station. However, nine amendments were made to the agreement over time, reflecting an identification of necessary adjustments to the scope of the project and additional work, resulting in multiple extensions of the contract timeline. At present, an examination of the revised project documentation is being conducted by the Samkharauli Bureau according to the ninth amendment, expected to be completed by 2 December. Therefore, Bada Construction LLC has requested an extension of the agreement until 2 December.
Notably, Bada Construction LLC is also responsible for the reconstruction and repair works of the upper vestibule of the Avlabari metro station.
The Tbilisi Transport Company awarded the rehabilitation work of the Avlabari metro station to Bada Construction LLC in July 2022 through a simplified procurement procedure. There had been several attempts to reconstruct the aforementioned station prior to this. Whilst the Kyivmetrobud JSC was assigned to conduct major repairs in 2017, the project was incomplete, making it impossible to finish the repair work. Subsequently, it became necessary to create a completed project. However, a series of failed tenders were held due to a lack of participants. Finally, an agreement was signed on 17 July 2020 with Vega+ LLC for the preparation of the station’s interior-exterior design project. However, the contract expired in September 2021 without the contractor fulfilling its obligations. Subsequently, the project and cost-accounting documentation was procured from Artstudio Project LLC.
An agreement was signed between the Tbilisi Transport Company and Bada Construction LLC for the reconstruction of the Avlabari metro station in July 2022, as mentioned above. The contract was worth GEL 4.2 million and the works were initially schedules for completion within eight months, by 15 July 2023.
Bada Construction LLC requested an extension of the contract term until 15 March 2024 in July 2023, citing delays in receiving the construction permit, which was only issued in December 2022. Furthermore, additional unforeseen circumstances emerged that were not initially accounted for and thus required modifications to the project documentation, necessitating further time for adjustments.
The company requested another extension of the contract term until 26 December 2024 on 15 March of this year when works were initially supposed to be completed according to the previous amendment. The reason for this request was again unforeseen circumstances that emerged during the works which led to adjustments in the project.
The reconstruction of both metro stations should be completed by the end of this year as of now unless any further unforeseen circumstances emerge during the course of the works. We will continue to monitor the progress and provide updated information to our readers.
It is important to note that the owner of 100% of the shares of Bada Construction LLC is Bachana Adamia, according to the Public Registry extract. Bachana Adamia is a donor to the Georgian Dream, having donated GEL 60,000 to the party in 2014.
Moreover, the completion of the Gotsiridze metro station was also delayed. The works stipulated in the contract, initially set to be completed in eight months, ended up taking nearly three years to finish (see article).
The observation of the aforementioned projects highlights the issues in state procurement. Tenders are often awarded to companies that lack the competence to execute the work properly or fail to deliver quality results.
Note: We had finished working on the article when it was announced that the reconstruction and rehabilitation work of the upper vestibule of the Avlabari metro station had been completed. Tbilisi Mayor Kakha Kaladze informed the public about this at a government meeting.
