The government’s plan to develop a new Government City on Arsenali Hill is drawing criticism from civil society figures, including Irakli Abesadze, head of the Center for Civic Participation. Under the project, main state institutions, including ministries, the Parliament’s administrative offices, Tbilisi City Hall and the government administration, will be moved to newly constructed buildings on the site. The relocation also means that many high-value government properties in central Tbilisi will be put up for sale.
Abesadze argues that this process amounts to accelerated large-scale privatization, driven by the government’s need for fast budget revenues. He claims that the authorities intend to ‘rapidly alienate the best investment objects’ in the capital, including landmark ministry buildings and the Parliament’s current premises. He also relates the ongoing university reform to this trend, noting that several university facilities have already been named as potential assets for privatization.
Abesadze states that the move carries significant corruption risks, as it would make it easier for private interests to acquire state property at undervalued prices. At the same time, he says the government is motivated by short-term fiscal pressures. Selling prime real estate, he argues, offers a swift way to generate income to support the existing administrative system amid challenging economic conditions.
The relocation plan is outlined in a market study published by the Municipal Development Fund which details the upcoming shift of government institutions to the new complex on Arsenali Hill.
