**Tbilisi City Hall Awards $150 Million Metro Contract to Chinese Company**
The city of Tbilisi has made a major announcement in its efforts to modernize its metro system. On July 10, Mayor Kakha Kaladze revealed that the city had awarded a $150 million contract to local company GT Group to supply new metro cars from Chinese state-owned rail giant CRRC.
**A Long and Winding Road**
This decision comes after two years of delay due to previous plans with Russian manufacturer Metrovagonmash. The initial plan, announced in 2021, was to buy 44 subway cars worth nearly $50 million from Metrovagonmash with financing from the European Bank for Reconstruction and Development (EBRD). However, following Russia’s invasion of Ukraine in 2022, the EBRD suspended payments to Metrovagonmash due to international sanctions. The city eventually canceled the deal, seeking other suppliers.
In 2023, Tbilisi officials claimed that Metrovagonmash was still the supplier, but after the U.S. Treasury Department sanctioned the company in May 2023 for its role in Russia’s military production, authorities had to cancel the deal once again. A fresh tender was launched in 2024 with funding from the Asian Infrastructure Investment Bank (AIIB), seeking to purchase 97 subway cars.
**Critics Question Favoritism**
Some critics have raised concerns that the latest tender was designed to favor CRRC and discourage European competitors. Irakli Abesadze, head of the Center for Civic Participation, alleged that the tender’s terms were “tailored to serve someone’s interests,” leaving no space for fair competition.
Czech-based Škoda Group submitted a symbolic bid of just one GEL per subway car, suggesting they saw little chance of winning. This has led Abesadze to claim that CRRC was the preferred choice from the start.
**GT Group Under Scrutiny**
The local partner in this deal, GT Group, has also faced questions over its political ties. The company has received significant public funding and has been linked to the ruling Georgian Dream party. Transparency International Georgia reported that GT Group had secured more than 4.4 million USD in simplified public procurement contracts in 2020.
**A New Era for Tbilisi’s Metro?**
While this contract marks a major step forward in modernizing Tbilisi’s metro system, it has raised concerns about the fairness and transparency of the tender process. As the city prepares to deliver 111 new metro cars starting in November next year, many will be watching closely to see how this project unfolds.
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