The Military Town project was first introduced in April 2019 by then Prime Minister Mamuka Bakhtadze. He emphasised that a nation’s mindset is reflected in its attitude toward its armed forces, thus the project was launched as a gesture of gratitude to the military.
Then Defence Minister Irakli Gharibashvili announced a new housing policy aimed at recognising the dedication to the state of long-serving military personnel. “The Ministry of Defence will support the creation of decent living conditions for service members and their families with plans to construct a military town on Makhata Mountain,” he stated.
The aforementioned infrastructure project, initially introduced by Bakhtadze and later reinforced by Gharibashvili, officially began in 2020. The Ministry of Defence signed a simplified procurement contract (SMP230002509) with Delta Mshenebeli, a company established by the LEPL State Military Scientific-Technical Centre Delta to facilitate the implementation of the project.
Delta Mshenebeli, commissioned by the Ministry of Defence of Georgia, was tasked with constructing 39 multi-apartment residential buildings near 173 Khudadov Street (Makhata Mountain) in Tbilisi (Cad. No. 01.16.09.01.178) with an aim to improve housing conditions for military personnel, individuals with special ranks and former service members, according to the contract. The buildings were to be delivered in a white frame condition with internal communications included. The contract was valued at GEL 22.4 million.
The Ministry of Defence committed to co-financing 50% of the construction costs of the multi-apartment residential buildings for military personnel. As a result, service members could purchase one square meter for approximately USD 100 in GEL. Notably, they were offered the option to pay through interest-free internal instalments rather than relying on bank guarantees.
The residential apartments were designated for personnel employed within the Ministry of Defence system who met the following criteria:
Enlisted personnel, including generals, colonels, lieutenant colonels and those holding the staff ranks of sergeant major and master sergeant.
Majors who had not previously received a residential unit (apartment) from the Ministry of Defence, except for those who were eligible to obtain one from the Ministry through a contractual agreement.
Defence generals, defence colonels and defence lieutenant colonels with over 15 years of service in Georgia’s law enforcement institutions, including at least five years in the Ministry of Defence.
Furthermore, the allocation of living spaces was to follow the guidelines listed below:
Beneficiaries without children – 50 m2 apartment
Beneficiaries with one child – 50 m2 apartment
Beneficiaries with two children – 80 m2 apartment
Beneficiaries with three or more children – 110 m2 apartment
The first phase of the project involved the construction of approximately 72,000 square metres of usable space which has been successfully completed as of now.
The Ministry of Defence announced a tender (NAT240018696) for the second phase of the Military Town project in September of last year. This document covered the detailed planning, construction and the related design services for the construction of the site near 173 Khudadov Street. Two companies participated in the tender: LLC Anagi and LLC Maqro Construction. Despite Maqro Construction submitting an offer that was almost GEL 10 million lower, it was disqualified and subsequently LLC Anagi was awarded the contract. An agreement worth GEL 143,979,136 was signed, valid until 30 April 2029. Military personnel will receive apartments under the same conditions and principles in this phase as in the first stage of the project.
The Ministry of Internal Affairs launched a tender (NAT220022714) for the construction works of the Police City in November 2022. The procurement process had only one participant, LLC Anagi, which was, therefore, declared the winner. A GEL 124,963,260 agreement was signed with LLC Anagi under which a 1,100-apartment Police City was to be built on a land plot located at 69 Anna Politkovskaya Street in Tbilisi. Prior to construction, the existing buildings and structures on the site were to be demolished, a detailed development plan was to be prepared and architectural-construction projects were to be developed.
The contract for the Police City is valid until 30 April 2026. Currently, 70% of the contract value (GEL 87,474,282) has already been paid. It is important to note that the state covers 95% of the total project cost whilst the beneficiaries’ equity participation constitutes 5%. The project involves the construction of seven buildings in the Police City on Politkovskaya Street, which will contain 1,100 apartments, each ranging from 65 to 75 m2. Each apartment will include one balcony, one bathroom, a storage room and bedrooms according to the project documents.
The implementation of the so-called Military and Police Cities project will cost the state a total of GEL 291,342,396. It is also noteworthy that the second stage of the Military Town and the Police City projects are both being implemented by the same company, LLC Anagi.
The Director of LLC Anagi is Irakli Gogolishvili and the owner of 100% of the shares is Nana Aroshidze, according to an extract from the Registry of Entrepreneurial and Non-Entrepreneurial Legal Entities. However, the shares are managed by Zaza Gogotishvili, who also owns 100% of the shares in LLC Saba Construction, with Davit Andghuladze serving as the Director of that company.
Irakli Gogolishvili, the Director of LLC Anagi, donated GEL 60,000 to the Georgian Dream in December 2023. Similarly, Davit Andghuladze, the Director of LLC Saba Construction, has also contributed to the party, donating a total of GEL 110,000.
LLC Anagi has been participating in state procurement since 2011 according to the Tender Monitor. The company has participated in 71 tenders, of which it won 32 cases, as of 2024. The total value of the contracts it has been awarded amounts to GEL 1,215,018,959.
