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Sustainable Procurements / Sector Overview

By signing the Association Agreement with the European Union, Georgia has undertaken the obligation to promote sustainable development for the benefit of present and future generations and stressed the importance of labor and environmental issues related to trade. This commitment includes, inter alia, promoting the development of international trade to meet the key goals and objectives of sustainable development.

In order to fulfil the abovementioned obligations, in the framework of the EU-funded EU4Environment Programme, in close cooperation with the Environmental Information and Education Centre of the Ministry of Environmental Protection and Agriculture of Georgia and the State Procurement Agency, with the involvement of national and international experts, under the guidance of United Nations Environment Programme (UNEP), a number of activities are being conducted in order to implement Sustainable Public Procurement into the national legislation and practice of Georgia.

Each acquisition provides a potential opportunity to promote and encourage sustainable development. In this regard, the concept of Sustainable Public Procurement should be noted. Sustainable Public Procurement is one of the efficient instruments for achieving sustainable development and shifting to green economy patterns that Georgia aims at. It should be mentioned that SDG 12 (Ensure Sustainable Consumption and Production Patterns) is considered as an instrument to ensure energy efficiency, sustainable infrastructure, resource efficiency, and access to decent work conditions. Target 12.7 aims at promoting sustainability-oriented public procurement in line with national policies and priorities.

At the international level, Sustainable Public Procurement is defined as a process whereby organizations meet their needs for goods, services, works and utilities in a way that achieves value for money on a whole life basis in terms of generating benefits not only to the organization but also to society and the economy, whilst minimizing damage to the environment. 

Sustainable development requires contracting authorities to take into account social, economic, and environmental aspects while exercising their rights and obligations. None of the mentioned aspects shall have priority over others; rather, the right balance is important. It should be emphasized that applying Sustainable Public Procurement is possible at any stage of procurement, from market research to contract enforcement and monitoring.

Sustainable Public Procurement aims to strike the right balance between the three pillars of sustainable development - the economic, social, and environmental aspects.

• The economic aspect of Sustainable Public Procurement is related to the use of the methodology for calculating the total life-cycle cost. Procurement must be efficient, which means accepting the most economically advantageous bid;

• The social aspect of Sustainable Public Procurement relates to the protection of social equity, various social groups, human rights and the principles of labor law;

• The environmental aspect of Sustainable Public Procurement includes air, water and soil emissions, climate change, biodiversity, and proper use of natural resources throughout the life cycle of the procured product.

As a result of applying the Sustainable Public Procurement, rational, responsible, and sustainable spending of public funds by the contracting authorities will serve as an example for economic operators to pursue sustainable policies, environmental and social goals, and will motivate them to apply innovations and new technology. From an economic point of view, Sustainable Public Procurement has the potential to reduce costs and improve technologies, since whole the life-cycle costs are taken into account and better quality products last longer. Thus, Sustainable Public Procurement may become the major driver of innovation and a real indicator in the formation of a market of sustainable products, goods, works and services.

Useful link:

• Videoclip about Sustainable Public Procurement – EU4Environment (Georgian Subtitles)
https://www.youtube.com/watch?v=SzwUG32o-5E

 

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