Privatization of State Property by Auction — Participation and Terms

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Where is auction information published and where does bidding take place?

Information is placed on www.eauction.ge or the official website of the State Property Agency, www.privatization.ge, which counts as official publication. The announcement and the bidding take place on www.eauction.ge, and public-auction information is additionally published in a periodical distributed over the whole territory of Georgia.

Who is declared the winner of an auction?

The right of ownership, use or management is granted to the participant who offers the highest privatization fee or transfer-for-use fee. In an auction announced with conditions, the winner must also undertake to satisfy the announced conditions.

What is the bid and how does a bank guarantee work?

The bid is an amount payable to the account specified by the entity conducting the auction to secure performance. Freezing funds on the participant's bank account equals payment of the bid; the frozen amount is transferred to the conducting entity immediately upon the win or upon a breach of the established rules and conditions. An unconditional and irrevocable bank guarantee is also used.

Can property leased before 2007 be purchased directly?

Yes. Immovable property leased before 1 January 2007 may be privatized by direct sale by the property manager in favour of the respective tenant. The privatization amount equals five times the annual market lease price, determined by a certified evaluator of an accredited body. A lease contract registered in the public registry is an essential condition.

What does the irrefutability presumption of registered data mean?

In relations with a private-law legal entity the property manager must rely solely on registered data, including data on persons holding directive and representative powers. Unregistered certificates do not constitute a legally valid basis.

6 min·26 Aug 2026

Auction-Form Privatization of State Property — the General Picture

The auction is the most transparent and competitive form of disposing of state property in Georgia. The purpose of disposing of state property by auction, or of transferring it for use, is to grant the right of ownership, use or management to the participant who offers the disposing entity the highest privatization fee or transfer-for-use fee during the bidding process.

Where an auction is announced with conditions, the winner is the participant who undertakes to satisfy the announced conditions and, during the bidding, offers the highest fee. This approach combines a price competition with a competition of substance: the state selects not only the best financial offer but also a reliable performer of the assumed obligations.

Auction-form privatization of immovable property held in state ownership is carried out by the property manager — the ministry, the State Property Agency, or a body acting within delegated authority, as well as, with a defined exception, a person using state property. Among the forms of privatizing immovable property the law distinguishes the auction, direct sale, direct sale on the basis of competitive selection, and free transfer into ownership.