In 2017-2021, Georgian state agencies have signed 96 large contracts[1] worth GEL 135 million mainly with foreign companies for the procurement of legal services related to international arbitration disputes. Expenses on legal services until 2017 were much lower - the total value of 32 large contracts signed in 2011-2016 did not exceed GEL 5 million.
The procurement of legal services has significantly increased since 2017. The Ministry of Justice, the Roads Department, the Ministry of Economy and Sustainable Development, JSC Georgian Oil and Gas Corporation, JSC Georgian State Electrosystem, and LEPL Anaklia Deep Sea Port Development Agency have been purchasing legal services through simplified (direct) public procurement. Most contracts have been related to international arbitration disputes. Such large contracts have not been signed through electronic tenders.
From 2017 to 2021, the largest amount of money – GEL 82.4 million - was spent in 2020.
Data source: www.tendermonitor.ge [1]
During the last 5 years, the Ministry of Justice of Georgia spent the most on purchasing legal services, having signed 14 large simplified public procurement contracts with a total value of GEL 82.2 million. Then came the Roads Department of the Ministry of Regional Development and Infrastructure of Georgia, which has signed 19 large contracts with a total value of GEL 22.5 million. JSC Georgian Oil and Gas Corporation was the third with 4 contracts with a total value of GEL 21.3 million.
Data source: www.tendermonitor.ge [1]
The legal service providers were mostly foreign companies. 85% of the GEL 135 million contracts were signed with three foreign companies: White & Case, an American company (total value of the contracts - GEL 81 million), Hogan Lovells International, an English company (GEL 23 million), and Gaillard Banifatemi Shelbaya, an American-English company (GEL 11.5 million). Hogan Lovells International has been a lobbying company [2] of the Georgian Dream party since 2020.
Data source: www.tendermonitor.ge [1]