International companies participating in a GEL 416 million tram project tender in Tbilisi have asked Tbilisi City Hall to extend the submission deadline, mentioning unresolved technical and financial issues. The project’s goal is to build a 7.5-kilometer tram line connecting the Didi Digomi district to the Didube metro station, along with the construction of a tram depot. The tender was re-announced in February, setting March 31 as the deadline for bid submissions.
The companies involved in the bidding process stated that the design-build model used for the project requires detailed preliminary studies which have not yet been fully provided.
Bidders say the tender documentation lacks essential geological and hydrological data, making it difficult to properly assess engineering risks and prepare accurate proposals.
They also emphasized technical concerns about the planned depot site located in a ravine approximately 10 meters deep, through which a major collector pipe runs. Companies say the engineering challenges related to this location require further clarification.
Participants have also raised concerns about currency risks in the proposed contract structure. Companies warn that if the contract is signed in foreign currency but payments are made in Georgian lari, fluctuations in exchange rates could create significant financial uncertainty during the project’s implementation.
Bidders say several other aspects of the tender remain unclear, including:
- Responsibility for relocating existing utilities,
- Limited access to the construction site for preliminary research,
- Unspecified technical standards and system integration requirements.
Companies have also recommended introducing international dispute-resolution mechanisms, such as arbitration or a Dispute Avoidance and Adjudication Board (DAAB), to manage potential contractual conflicts.
Given the outstanding questions, participating firms argue that submitting responsible and competitive proposals is not currently possible.
They have therefore urged Tbilisi City Hall to extend the tender deadline by at least two months, allowing additional time for clarifications and technical preparation.
