Summary

The problems of development of the construction in Georgia from period of transformation of the post Soviet Union is analyzed in this work.

It’s also planned those reasons which will help to develop this sphere.

Construction is one of the oldest branch in the world and one of the sector  of economic activity. The share of construction in a total sector of economy is 8,3% following agriculture, commerce and transport and communications in Georgia. The construction in our country always occupied a significant place. Construction industry was well developed before the collapse of the Soviet Union.  For example, even in 1990-1991, 2332 thousand. square meters of residential buildings came into commission.

from 1992-93 till 1998 the growth rate of construction declined considerably which was caused by the collapse of the soviet state, on the one hand, and by the transition from one economic system to the other one, on the other hand. This is the period when all the sectors of economy began to decline in general. In addition _ military activities first in Samachablo and then in Abkhazia. At the end of 1991 Civil war began followed by chaos and ruin of central districts of Tbilisi. Coupon, money equivalent, that was issued at that period, was depreciated rapidly. Russian rouble and US dollar were mainly used in the country. As a result of various intrigues private deposits of people were lost entirely causing their full impoverishment. In such conditions any construction including individual house – building has been discontinued. The concentration of displaced persons from  Abkhazia and Samachablo chiefly in Tbilisi has raised sensibly the price of flats, only a few people – mainly nouvoriches can manage to build house or buy already completed flats. Because of hard economic and financial conditions even the state itself had to decrease investment in fixed capital of construction  and if in 1990 (in comparable prices) it was 77 million lari, in 1997 it decreased to 1 million Lari.

Currency reform was carried out in 1995. “Lari”, national currency has been  issued which is still comparatively stable currency, at the same time economic reforms have been carried out, privatization has begun and is still in force. Expedient legislative base has been created to develop and stabilize  the country economy. As a result of taken measures a criminal situation has been improved. The stabilization has set which conditioned the development of construction business.

The measures realized by a new government being at power are oriented at the construction of new and restoration of old owing to which many buildings have been restored and many of them built for governmental institutions, including: police buildings, military barracks, hydro-electric power stations commercial centers, hotels, enterprises etc.

The rate  of infrastructure development was increased; the construction of roads, tunnels and bridges began on a country scale. This is one of the main components of four point projects of the government and for rapid fulfillment of this plan everything is done in the country as a whole. As to regions and infrastructure 8,4 billion Lari has been spent only for the development of road infrastructure, thus creating thousand of new working places.

In 2013-2016, in comparison with 2007-2012, two times more roads were built a year on average. In 2013-2016, in comparison with 2008/-2013 highway almost three times longer were built and 2,6 times more bridges were constructed.

From 2013 more than half a billion Lari, have been spent to solve the problem of water – supply  of population. The projects, total value of which is nearly  1,5 billion Lari has been already begun, as a result of which nearly 500 hundred man in addition  will be provided with high quality water supply for twenty-four hour in 2020.

The volume of gas-supply work significantly increased. In 2013-2017 more than 200 thousand subscribers were supplied with gas in a country scale. In addition in 2014-2015 13459 families of 52 villages situated at a dividing line of occupied territory were included into natural gas network. Investment in gas-supply work was  607,2 million Lari. In 2015-2015 24 villages not electrified before were supplied with electricity. The process of inquiry of such villages is underway today. From 2013 up to day 19 hydroelectric  power plant, 1 wind power plant and 2  thermal power plants have been exploited. The total installed capacity  is 789 megawatt. Total investment exceeded 1 billion dollars.

In 2017 to ministry of regional development and infrastructure1258047000 Lari has been allotted including 84917700 Lari for  the development of road infrastructure, for rehabilitation and reconstruction of regional and municipal infrastructure - 176190000 Lari; for the renewal of water-supply infrastructure – 183950000 Lari.

 In 2016, 1565, 9 million US dollar of foreign investment was carried out including 489,5 million Lari for construction, the most of which (239,7 million Lari) was spent on residential  and non residential  buildings on the construction of roads and railways – 50,5 million Lari.

We hope that owing to right state policy the country economy as well as construction business will gradually come out from crisis, the signs of which are already visible.

Hence, as a result of right economic policy of governmental Georgia is overcoming economic crisis and is on the way of rise that is confirmed by world ratings showing the progress of Georgia. We hope this progress will be continued.