IFC Collaborates with Government of Georgia to Reform Technical Safety Regulations

IFC, a member of the World Bank Group, has partnered with the government of Georgia to help improve the technical safety of potentially hazardous enterprises. The reform agenda includes improving how the technical inspections of businesses such as gas stations, mining enterprises, elevators, and hoisting mechanisms are conducted. It also introduces new risk-based inspections and outsourcing of some functions to private inspection facilities.

To assist the government in this reform, IFC has drafted an action plan that will transfer on-the-spot inspection functions to private companies, making them responsible for the safety of inspected enterprises. According to Irina Kokaia, Project Manager of the IFC Georgia Business Enabling Environment Project, private inspectorates in Georgia will likely be more compliance-oriented than their state-run counterparts. Private inspectorates are also more likely to provide advice to entrepreneurs on how to improve safety, rather than imposing punitive measures. Under the reform proposal, government agencies will retain the authority to cross-check the quality of these inspections and investigate accidents.

IFC will work with the government to implement this transfer of functions by sponsoring and conducting seminars aimed at improving state inspectors’ skills in supervision and introducing best practices for conducting quality inspections. The reform also envisages restructuring the country’s procedures for ensuring the safety of hazardous enterprises and the safety of ports, airports, and stadiums.

In launching the reform effort, IFC held a two-day seminar that focused on international best practices in technical safety supervision and inspections. Leading experts from Sweden introduced the Swedish Technical Supervision system, and experts from Estonia led discussions on reforms that have taken place in their country. The second day of the seminar focused on practical applications of inspection procedures in Sweden and other countries.

Seminar participants included representatives from Georgia’s Ministry of Economic Development, the Construction Department of the Ministry, the Georgian Technical Supervision State Inspection, the Main Architectural-Construction Inspection, the National Accreditation Centre, and the Environment Protection Inspection Agency.

Vakhtang Lejava, First Deputy Minister of Economic Development and seminar participant, said, “We are interested to learn the experience of our foreign colleagues in technical safety supervision. In many Western countries inspections reforms have led to the outsourcing of certain functions to third parties. Outsourcing, as well as introduction of risk-based inspections, is on the agenda of the Georgian government.”

“IFC will continue its efforts in sharing best international practices, so that the quality of inspections of hazardous enterprises can reach international standards,” IFC’s Irina Kokaia said.

The IFC Georgia Business Enabling Environment Project is funded by BP and its oil and gas partners and the Canadian International Development Agency.