Natia Turnava: We should make infrastructure development projects worthy in terms of economic and financial sustainability

“Transport infrastructure development is often related to huge resources and long-term investments, therefore, we need to ensure that these investments are worthy in terms of economic and financial sustainability,” – the Minister of Economy and Sustainable Development stated within the frames of the Tbilisi Silk Road Forum.

As the Minister noted, prior to implementation of any infrastructure project, pre-feasibility and feasibility studies are usually conducted to decide whether to proceed with the project or not, considering economic, social and environmental aspects. The PPP framework adopted in 2017, allows to proper evaluation of the businesses and risk sharing mechanisms, which also provides grounds for attracting more funds for the development of the infrastructural projects. 

“We need to conduct financial, commercial study of the project, as well as the technical and engineering studies, because most of these projects are very challenging from an engineering point of view. We can conduct studies but there is no guarantee that the certain project will be a 100% sustainable one. We have a Law on Private Public Partnerships that came into force in 2017 that allows private businesses to be valued properly and to have a risk sharing mechanism in place. This allows private business to get involved in such projects, thus providing more funds for infrastructure development,” – the Minister said.

Speaking about the sustainability of infrastructure projects, Natia Turnava also emphasized the environmental component, noting that the country always focuses on environmentally sound technical solutions. “If we look at environmental sustainability and climate change, the Ministry of Economy and Sustainable Development focuses on sustainable development, we always have these issues on the agenda, we always focus on environmentally sound technical decisions including when taking decisions regarding the railway infrastructure development. Georgia is a tourism destination and it is necessary to preserve and secure our nature,” – the Minister of Economy and Sustainable Development said.

Ministry of Economy and Sustainable Development of Georgia. 2017 ©