The FINANCIAL — In times of swiftly changing markets and business platforms, construction entities worldwide have become increasingly dependent upon innovations and process-upgrading.
Georgia is lagging in pursuing innovative solutions in this industry but nevertheless, the aspiration is present and somewhat notable to a scrutinizing eye. Last week’s ICCA forum packed with industry stakeholders is a proof enough of it. We shall elaborate more about that in a moment but first, it should be mentioned that infrastructure construction can be referred to as “building for generations”. Long term sustainability, thus, is the key pillar point of this field.
The infrastructure and construction industry is constantly innovating from a technology’s standpoint. In some cases, these technologies are new materials; in other – process and/or technique-based innovations. To tackle these and other issues on May 3rd the Infrastructure Construction Companies’ Association (ICCA), in partnership with Experto Consulting, Sakmiani Dila and Construct.ge, has organized the “Construction in Georgia: Novel Approaches and Perspectives” forum at the Rooms Hotel Tbilisi. The event served three purposes according to ICCA’s Executive Director Ms. Ana Sabakhtarishvili: “first and foremost, it aimed to empower and strengthen the construction sector by giving the stakeholders the platform to share their success stories among themselves as well as with other entities related with the construction sector; secondly, I believe it is crucial to regularly hold candid dialogs with high-level government representatives that are directly overseeing the sector; and lastly, the content of the presentations of our newly joined members proves that the construction sector of Georgia has reached a new stage of development that is filled with challenges accompanying the introduction of novel Georgian technologies, the imposing of European standards when building roads, etc”.
Ms. Sabakhtarishvili further told Experto that the association as well as its members appreciate immensely the readiness of the Ministry of Regional Development and Infrastructure to engage in continuous dialogue with industry players and not avoid discussing acute issues related to infrastructure construction. In fact, the Minister of Regional Development and Infrastructure, Mr. Zurab Alavidze reiterated several times during his official address to the forum participants that the companies should develop a habit of using ICCA as a mediator. Encouraging solving the common issues related to infrastructure construction through ICCA was an empowering statement for the association indeed.
After all, infrastructure is a key part of the Government’s plan to improve our economy’s productive capacity. Our investment in infrastructure should support more live-able and prolific communities through well planned, safer and more efficient networks. Thus, ongoing investment in critical infrastructure and regional development is crucial to reduce bottlenecks, improve safety and better connect Georgian products to domestic and international markets.
According to Minister Alavidze, the construction sector is critically important for the country’s economic development and that is why the Georgian government has pledged to spend around GEL 10 billion in the next three to four years on infrastructural projects: “we need to have strong and empowered local industry players to move forward with the implementation phase”. He further elaborated that he understands perfectly well the Georgian construction sector is notably problematic and faces tangible challenges: “to combat that and address the issues in a timely manner, we are actively working with the ICCA association. In fact, all relevant stakeholders are involved in these processes”. The Minister has a hopeful expectation that these mentioned funds shall be spent largely on projects implemented by the Georgian builders: “it is necessary to prepare a soil for this to become a reality, though”, referring to improving the legislative base among other aspects. According to Mr. Alavidze “companies should understand that construction is not only engineering and that acute fiscal and time management are also equally vital when it comes to having a successfully completed project”.
As part of the forum agenda, Experto Consulting has signed a memorandum with the Infrastructure Construction Companies’ Association to promote innovative infrastructural solutions in Georgia. Within the frameworks of this collaboration Experto has presented our French client, Menard Vibro to nearly 200 attendants of the event. The Company is a design & build specialist geotechnical contractor offering expertise in ground improvement and soil remediation works. Menard Vibro is part of the renowned Vinci Group, a brand name that speaks of quality by itself. The Business Development Manager of the Company, Mr. Adrien Michelin informed the forum participants that “Menard’s remediation team has more than 20 years of experience in the field of polluted sites remediation. We successfully tackle problems related to oil & chemical spills in running plants & factories, decommissioning of former industrial sites, brownfield development (industrial, housing, commercial), mining (sludge treatment & minewater treatment) and waste field remediation. In other words – any site where water and/or soil are polluted”. Menard Vibro’s methods do not yet seem to be common in Georgia despite being perfectly adapted to both soil conditions encountered and projects being developed. The Company is interested in exploring the opportunities in Georgia and in implementing these innovative, yet already proven remediation solutions. As a matter of fact, back in 2016, Menard Vibro has successfully executed ground improvement works in Anaklia as a subcontractor to Ludwig Pfeiffer (LP) for the Anaklia WWTP project saving them time and cost significantly.
It is noteworthy that the importance of economic relations between France and Georgia was further elevated at the forum with welcome remarks from Mr. Didier Leroy, Chargé d’Affaires of France in Georgia and Mr. Louis Toulorge, Economic Attaché of the French Embassy in Georgia.
One of the main underlying reasons of this forum for ICCA was to present their five recently joined member companies to the attending industry stakeholders: SAKENERGOREMONTI, a Company that is practically responsible for over 70% of hydro-electric mechanical works done in Georgia; JEU GROUP, one of the leading reliable road construction companies in Georgia; BASALT FIBERS/REBAS, a producer of various products for construction based on Basalt textile fiber, including basalt fittings and basalt fiber net-tissues; DORO GROUP, a road construction company and a supplier of hydraulic shellers produced by LafargeHolcim to the Georgian market; and last but not least, BORUN MINING, a Company that operates in diversified business directions such as: Mining, Construction, Agricultural, Lighting and Consulting.
All speakers were stressing the importance of innovation in their respective fields. However, when it comes to novel approaches, companies must balance innovation with safety and risk, which is why this can be one of the slowest industries to adopt higher-risk innovative technologies. While government sponsorship is positive and in many cases necessary, it is accompanied by the challenges implicit in working under government oversight. In some cases, this is limited to the regulatory burden of government cost-accounting and management systems. At other times, Government representatives are simply reluctant to use/pay for any innovative methods only because they lack reassurance that these novel solutions will be justified by the public later.
While ICCA will be focusing on continuing working on the improvement of procurement legislation to modernize construction norms and establish necessary technical regulations, the construction companies should find more eloquent ways to prove to governmental decisionmakers why the old but gold approach is killing progress and most importantly, why those innovative methods are the way to step into the brighter future.
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