Statement on Zugdidi Sports Complex Construction

April 2, 2023

 We would like to respond to one more discrediting information on construction of Zugdidi Sports Complex, disseminated by “National Movementvia media.


Municipal Development Fund (MDF) would like to clarify that Sports Complex in Zugdidi Town had undergone construction by MDF with financial support from Asian Development Bank (ADB) since April 2021.


The construction works were being conducted by the bidding winner Chinese Company JIANGSU NANTONG SANJIAN CONSTRUCTION GROUP Co. LTD (China) - NANTONG SANJIAN GEORGIA. The company failed to proceed with the works progress as required, and in spite of numerous written or verbal warnings, failed to fulfil the undertaken obligations, resulting in termination of the contract with that company until due date, and enactment of the Advance Payment and Contract Performance Guarantees for recovery of damages.

The information as though MDF paid GEL 4 million to the Chinese company for uncompleted works, is just a lie and a slander. The payment to the Company was made only in accordance and in proportion with works, actually accomplished by the Supervision Company. Out of the advance amount paid to the Company, the State took back GEL 1 278 775, based on the Advance Guarantee, whereas GEL 1 136 421 was returned to the State as the penalty cost, as per enactment of the Contract Performance Guarantee. Finally, the Company received only GEL 2 102 588 for works actually accomplished.

Even the visual material disseminated by “National Movement” shows the quantity of the structural works executed by the Company, what for it received the cost of actually accomplished works, as it is Contract stipulated.

After the contract with the Chinese Company was terminated, MDF evaluated the remainder works as per the current market prices and price quotations, and respectively, the new bidding was announced with the new price. Moreover, the cost for purchase of sports inventory was also added to the bidding conditions. Two announced biddings failed, since the bidder of the first bidding did not meet the bidding requirements, as for the second bidding, nobody participated in it. 

At present, the third bidding has been announced since March 2, and that bidding will be finalized on April 27.

The Sports Complex Project provides for construction of big and small swimming pools, halls designated for training devices, heavy athletics, boxing and wrestling, as well as arrangement of separate changing rooms and shower units. The building will house the open café and a small shop too, whilst the parking lot will be arranged in the vicinity of the Sports Complex site. The Sports Complex is to be fully adapted to the people with disabilities.