PMC Research Center Published Final Report about the State Procurement System of Georgia

Jul, 2014

The research paper “Analysis of the State Procurement Policy of Georgia” studies the strength and challenges of the existing state procurement system of Georgia. The research is based on the analysis of state procurement policy, conducted interviews with representatives of large procuring entities and suppliers of goods and services, with representatives of the State Procuring Agency. The research also analyzes 24 best practices of the 18 European Union countries’ electronic procurement systems to examine whether the existing procurement system complies with the European best practices. “The research is conducted in the framework of The East-West Management Institute’s (EWMI) Policy, Advocacy, and Civil Society Development in Georgia (G-PAC) Program, funded by the United States Agency for International Development (USAID). The report has been made possible through generous support of the American people via USAID. Please, follow the link below to view the document:  English   Georgian    

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PMC Research Center Issued Final Report about the Fiscal Sustainability in Georgia

Jul, 2014

The research “Analysis of the medium term fiscal policy sustainability in Georgia” assesses the fiscal sustainability of the country in medium and long-term periods. A stable development oriented fiscal policy is crucial for the sustainable economic development of a country. A slowdown in the economic growth rate, an increase in fiscal deficits and a public debt in Georgia have raised concerns about the sustainability of its fiscal policy. Therefore, the need for adjustment of fiscal policy over a medium term was highlighted. “The research is conducted in the framework of The East-West Management Institute’s (EWMI) Policy, Advocacy, and Civil Society Development in Georgia (G-PAC) Program, funded by United States Agency for International Development (USAID). The report is made possible by the generous support of the American people through the USAID. The content is the responsibility of the PMC Research Center and do not necessarily reflects the view of USAID, the United States Government, or EWMI”.Please, follow the link below to view the document:Final Report

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PMC Research Center Presents Procurement Research Findings

Jun, 2014

On Tuesday, June 24, at the Sheraton Metechi Palace hotel, PMC Research Center (PMC RC) delivered a presentation and public discussion on “Analysis of the State Procurement System of Georgia”. The research had been conducted with the support of the USAID program - Policy, Advocacy, and Civil Society Development in Georgia (G-PAC), which is implemented by the East West Management Institute (EWMI).The research provides an analysis of the state procurement policy of Georgia, advantages and challenges of the state procurement system and its compliance with the best international practices. Special recommendations were developed based on the research’s findings. Results and recommendations were discussed during the public discussion.“Very often, the problem is the low quality of the purchased goods and services. In order to further improve the state procurement system of Georgia, PMC RC developed 20 recommendations including the following: the obligation of conducting electronic tender should become broader and, for example, include the funds of the president, government and reserve funds of Tbilisi City Hall. The opportunity for a direct, simplified contract being awarded to companies with high-budget projects should be limited”, argued Besik Namchavadze, Senior Researcher at PMC RC on the recommendations developed in the framework of the research.Namchavadze also emphasized that “the most commonly purchased products should be standardized and the capacity for the preparation of the technical requirement for procuring goods and services should be enhanced. The relevant agencies should be given adequate time for tender preparation, in order procurement plans not to require changes for many times. Active involvement of civil society institutions in the process is necessary”.According to PMC RC, carrying out the mentioned recommendations in practice will decrease the probability of procuring entities not acquiring goods and services of the required quality. Recommendations were also developed regarding technical issues, and it was agreed that all mentioned recommendations will ensure that tenders become more effective.  

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Program Budgeting Manual Presented

Jun, 2014

On June 18, in the framework of the Good Governance in Georgia (G3) USAID organized a presentation on preparing a program budget. Stephen M. Haykin, USAID's mission director in the Caucasus opened the event. Officials of the Government of the Autonomous Republic of Adjara (GoARA), the Georgian government and PMCG participated in the presentation. The event focused on sharing the positive experience with the representatives of the government was a conclusion of sorts to the project - “Strengthening Government of Autonomous Republic of Adjara Institutional Capacity for Program Budgeting” which was implemented by PMCG, under the USAID G3 program that aimed to increase the program capacity of the GoARA, including all agencies of the government. As one of the major components of the project, our consultants provided technical assistance to formulate and implement the program budget for 2014 in all GoARA agencies. At the first stage, we facilitated participatory processes of medium term planning and program budgeting, that helped to define the main priorities of the institutions and identify the appropriate steps for the next several years. An analytical report of GoARA Program Budgeting Processes, providing a broad description of the processes of developing mid-term priorities, draft programs and sub-programs of the government’s agencies was created. After round table discussions and analysis with GoARA, in close collaboration with the Ministry of Finance of Georgia, PMCG consultants developed a Program Budgeting Manual. “The Program Budgeting Manual contributes to represent budget in the form of programs and activities”, explained Irakli Khmaladze, consultant at PMCG adding that “the manual is an efficient tool to clearly see all the planned goals, as well as to evaluate achieved ones”. Detailed information  

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PMCG Shares Georgia’s Successful Experience with Belarus

Jun, 2014

PMCG is today holding seminars in Minsk, Belarus to share Georgia’s successful experience in reforms. The initiative is being implemented with the financial support of the Czech Ministry of Foreign Affairs, while our partner organization in Belarus – Belarusian Economic Research and Outreach Center (BEROC) - assisted with the organizing process. The seminars will take place over three days and will cover Business Registration, Civil Registry, Construction Licensing and Permitting, Customs and Tax Reform as well as the reform of the Ministry of Finance, Electronic Auctions, Service Agency by the Ministry of Internal Affairs and Everyone Sees Everything – State Procurement Reforms.Our experts who were directly involved in the process of planning and implementing these reforms will discuss real cases while the results, planning stages and the problems causing the need for the reforms will also be covered.Officials from the government, policy makers, civil society and international organizations such as USAID, UNDP, IMF, IFC, European Commission in Belarus, The World Bank, European Bank for Reconstruction and Development, and representatives of other funds are attending the seminar. “We would like to introduce the successful Georgian reforms to our Belarusian counterparts that together with the simple and transparent means of technical solutions will ultimately make citizens’ lives easier”, explains Zaza Broladze, Deputy CEO at PMCG.

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PMCG to Work on Strategic Development of Tourism in Adjara

Jun, 2014

 The Department of Tourism and Resorts of Adjara awarded a contract to PMCG to develop a medium term strategic plan, a relevant operational plan and a performance monitoring and evaluation plan for the region’s tourism sector.  Our consultants will build up an action plan taking into account the streamlined existing goals of the department. In order to ensure that the department’s staff is ready for the challenges ahead, PMCG will train and support them to clearly outline the importance of each stage of the plan. A crucial part of the process will be the formation of the detailed action plan that will give the department clear instructions of how to operate more effectively on an institutional basis. In the framework of the contract, our consultants will explore the department’s current situation, conduct institutional evaluation, analyze the environment (PEST), work out the final strategic goals, target results and will conduct an action plan. Finally, PMCG will give management the contemporary tools to refine the monitoring and evaluation process. Vano Tavadze, Senior Consultant at PMCG highlighted that, “PMCG’s team will assist the regional agency to integrate the strategic planning with the budgeting process and secure a wider stakeholder involvement in the formulation of overarching organizational priorities”, adding that “this is PMCG’s first public contract obtained through a competitive state procurement bidding procedure”.

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“Analysis of the Medium-Term Fiscal Policy Sustainability in Georgia”

Jun, 2014

On Thursday, June 5, at the hotel "Holiday Inn", with the support of the USAID funded program G-PAC, PMC Research Center organized a presentation and public discussion of the project “Analysis of the Medium-Term Fiscal Policy Sustainability in Georgia"The main purpose of the research was to analyze sustainability of the Georgia’s medium-term fiscal policy.In the framework of the event, PMC Research Center discussed Georgia’s medium and long term fiscal stability. In particular, whether the country’s budget system is ready to handle the present and future challenges and how budget deficit and government debt can affect this process.“Even though, the state budget deficit and government debt increased in 2014, Georgia will remain solvent in medium as well as in the long-term to serve its obligations unless the scenario of economic crisis of 2009 repeats, or the economic slowdown and national currency depreciation continues on a permanent basis. On the one hand, the budget deficit decrease to 2% of GDP and increase of economic growth to 6% will lead to the stability of the fiscal system. On the other hand, certain risk of depreciation of the national currency and increase in the price level exist. National accounts indicate that in the first quarter of 2014, budget expenditures completion rate was 83%.This fact increases the probability that significant amount of money will be spent by the end of the year", said Besik Namchavadze, the senior economist at PMC Research Center adding that "therefore, the government’s response to the budget performance in the first quarter of 2014 is crucial.”Based on the findings of the study, relevant recommendations on the design and implementation of the effective and sustainable fiscal policy were delivered to the policy-makers and ruling authorities.Economic experts, representatives of the government of Georgia, the parliament of Georgia, private sector, NGOs, international organizations, media, the diplomatic Corps and academics attended the discussion.

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PMC Research Center to Present Research Findings

Jun, 2014

On June 5, PMC Research Center will present the findings of the research “Analysis of the Medium-Term Fiscal Policy Sustainability in Georgia”, which was implemented within the framework of the USAID-funded program G-PAC. During the event, PMC Research Center will discuss Georgia’s medium and long-term fiscal stability. In particular, whether the country’s budget system is ready to handle the present and future challenges and how a budget deficit together with state debt can affect this process. Based on the research findings, relevant recommendations on the design and implementation of the effective and sustainable fiscal policy will be delivered to the policy-makers and government officials.Economic experts, representatives of the government of Georgia, the parliament of Georgia, private sector, NGOs, international organizations, media, the diplomatic corps and academics attended the discussion.

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PMCG Introduces Effective Management Tools to Newly Created Self Governances

May, 2014

On May 26-27, PMCG carried out the training course “Management and Division of Municipal Property & Liabilities” in the framework of the USAID program - Good Governance in Georgia (G3). Tasks were assigned to interim working group members on the division of municipal property and liabilities. Comprehensive performance of these tasks were essential to fully develop the specific skills and knowledge for this area, one of the key objectives of the course.Employees of the seven new self-governing cities: Akhaltsikhe, Ambrolauri, Gori, Mtskheta, Ozurgeti, Telavi and Zugdidi, as well as the representatives of the Ministry of Regional Development and Infrastructure (MRDI), Vano Khukhunaishvili Center for Effective Governance System and Territorial Arrangement Reform (CEGSTAR) and the Public and Civil Registry attended the course. Our consultants introduced general information regarding municipal property and liabilities to the participants. The course also covered the tools of effective management, including the principles and rules on property and liability division in newly established self-governments, according to the Code on Self-Governance, adopted in 2014. According to one of the attendees, Koka Kiguradze, representative of CEGSTAR “the training course is significantly helpful for the participants of the process to effectively fulfill responsibilities”. Please follow the links below to get more detailed information about the project:Related news G3 official web page

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The First Steps Towards Construction Permits Streamlining in Afghanistan

May, 2014

  On 9-15 May, the PMCG team visited Afghanistan under the International Finance Corporation (IFC) funded construction permit (CP) project. During an onsite visit, all necessary information was obtained from their Afghan counterparts to draw up process maps, illustrating the current CP process in the Kabul Municipality. Information was gathered through interviews with all government stakeholders, participating in construction permits and private sector representatives. Based on the findings of the onsite visit and analyses of existing process maps, PMCG will give recommendations to the IFC Project team to provide effective technical assistance to the Kabul Municipality in the reform process. The visit was held as part of PMCG’s contract with the IFC to implement this CP reform project in Kabul, Afghanistan. “PMCG is working to adapt successful Georgian reforms in the construction permitting system to Afghan reality. This should not be a mechanical replication and our consultants are assessing the existing situation in Kabul to suggest detailed recommendations which should be very practical and achievable,” explains Mr. Zaza Broladze, Deputy CEO at PMCG.   Please visit the link below to get more detailed information about the project: Afghanistan Construction Permits Reform Project – Business Process re-engineering

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