IFC Helps Georgian Government Simplify Licensing Process for Extracting Subsoil

Tbilisi, Georgia, July 2008—IFC, a member of the World Bank Group, has helped Georgia’s Ministries of Economic Development and Environment and Natural Resources amend a regulation on issuing a license for the extraction of useful subsoil. The new law was adopted in June 2008.

“The government of Georgia has a good record of cooperation with IFC experts, whose participation in amending the regulation brought new, client-oriented elements to the table,” said Zviad Cheishvili, former Deputy Minister of Economic Development of Georgia, who was in charge of this reform.

This new regulation reduces the time it takes to obtain a license, the number of applicant visits to the issuing agency, and the number of documents for applicants to collect and submit to the agency. Prior to the amendment, a license seeker was obliged to visit the agency five times and submit five sets of documents, a process that took several days, and often weeks to complete. The amendment also specifies that only winning bidders are required to pay a fee for preparing auction documents. This move encourages interested parties to participate in the process at no cost, even if they are not shortlisted.

“With this new regulation in place, license seekers like me have additional incentives to participate in tenders on equal terms with others and the opportunity to explore the natural resources that Georgia is so blessed with,” said Zurab Tevzadze, Head of Geological Department of Burji, Ltd.

The new regulation serves as an important step toward implementing a one-stop-shop principle and simplifying the regulatory framework that will allow new companies to enter the market.