The Municipal Development Fund (MDF) is implementing several large-scale, multi-million-lari projects in Batumi. While some projects have already been completed, a number of unresolved issues related to these projects remain on the agenda.
In Old Batumi, the process of restoration and rehabilitation of cultural heritage monuments and historic building façades began years ago and has still not been completed. Two months before the 2024 parliamentary elections, the same fund ceremonially opened a rehabilitated boulevard in Batumi, with the prime minister in attendance. By the summer of 2025, however, the boulevard’s infrastructure was already deteriorating. Meanwhile, a coastal protection structure built between the New Boulevard and the airport runway construction of which was completed in 2022 has still not been officially accepted by Batumi City Hall.
Over the past several weeks, Batumelebi has also examined on site another project implemented by the fund: the rehabilitation and restoration of the Abastumani resort, which began in 2019 and continues to this day.
All four projects were implemented or are being implemented by the Municipal Development Fund. Hundreds of millions of lari from the state budget have been spent on these projects. How effective is the oversight of implementation, quality, and spending? Batumelebi has raised these questions before, but answers were not forthcoming.
In October 2025, it became officially known that the situation was far from satisfactory.
According to Revaz Sokhadze, the newly appointed Minister of Infrastructure in the Georgian Dream government, out of 214 ongoing projects managed by the Municipal Development Fund, 161 projects worth more than 1 billion lari in total were problematic. He made this statement in parliament.
Several weeks earlier, former Executive Director of the Municipal Development Fund of Georgia, Davit Tabidze, was arrested on charges of abuse of official authority. As a preventive measure, he was released on bail of 300,000 lari.
On October 30, former Deputy Minister of Regional Development and Infrastructure, Koba Gabunia, was arrested on charges of abuse of official authority. He had served as the curator of the Municipal Development Fund. As part of the investigation, searches were conducted in the personal and residential properties of Koba Gabunia, former Minister of Regional Development Irakli Karseladze, and other individuals at a total of 20 different locations.
Against this background, Batumelebi once again examined projects implemented by the Municipal Development Fund.
Heroes’ Alley Project
On June 5, 2024, the Government of Georgia announced that the full rehabilitation of Heroes’ Alley named after Zhuli Shartava and the construction of pedestrian overpass bridges—projects that began in Batumi in 2021 had been completed. The opening ceremony was attended by Georgian Dream Prime Minister Irakli Kobakhidze, former Minister of Regional Development Irakli Karseladze, and other government officials.
More than 25 million lari from the state budget was spent on this project.
According to the government, the project included replacement of underground utilities, installation of an irrigation system, pedestrian paths, commercial and recreational spaces, fountains, bicycle parking areas, and various decorative lighting fixtures.
Construction of three metal pedestrian overpass bridges connecting different sections of the alley was also completed. Elevators were installed on the bridges to ensure access for persons with disabilities.
One year after the opening, the infrastructure of Heroes’ Alley is neither properly functioning nor safe especially for children. Elevators intended for persons with disabilities, which should allow access to the bridges, are closed.
Batumelebi published an extensive article on this issue on July 30, 2025. Since then, no changes have been made.
Old Batumi Rehabilitation Project
The 200-million-lari project to rehabilitate and restore façades in Old Batumi was launched by the Municipal Development Fund in 2023 in such a way that the actual project documentation according to which work on cultural heritage monuments was to be carried out was never publicly seen. Individuals employed at several different sites confirmed to Batumelebi that no certified restorers were involved.
On site, work was carried out by Saba Construction, the company that won the tender. The company was obligated to perform the work using the Design-Build method. While working on this issue, we contacted Saba Construction, but the company told us that all questions should be addressed to the client the Municipal Development Fund.
The Municipal Development Fund did not answer our questions, instructing us instead to submit a written request. We received a written response, but it was incomplete and avoided the key question: specifically who, and which specialists, prepared the rehabilitation project for the monuments.
The Fund’s Response
In Batumi where citizens have held protests to protect historic monuments and where several court cases are ongoing to save them it remains unknown who prepared the Old Batumi restoration and rehabilitation project, what qualifications and experience the authors have, and whether they enjoy public trust.
Coastal Protection Infrastructure
Another multi-million-lari project in Batumi was implemented by the Municipal Development Fund: a coastal protection structure built from the New Boulevard to the airport runway, completed in 2022.
A total of 56.9 million lari from the state budget was spent on construction of the structure and restoration of the adjacent coastline.
Despite the project having been completed three years ago, no state or municipal body has assumed responsibility for the maintenance and operation of the structure.
Batumi City Hall has not accepted the facility the city has not signed the handover and acceptance act prepared by the Municipal Development Fund.
Why there was no inter-agency coordination at the proper time, and who is responsible for maintaining the structure, are questions Batumelebi has raised repeatedly.
In response to our inquiries in 2024, the Municipal Development Fund wrote:
“Under the relevant international agreement, construction works on the Batumi coastal protection and a section of the coastline commissioned by the Fund were completed in February 2020 [the so-called ‘defect liability period’ was also completed in February 2022]. Accordingly, after this period, issues related to ownership, use, operation, maintenance, and/or functioning of the facility fall outside the Fund’s authority and competence.”
The revised version of the acceptance-handover act obtained by Batumelebi is dated December 7, 2022, and was sent to the Mayor of Batumi for signature. However, it bears only the signature of the Executive Director of the Municipal Development Fund.
According to the act, the book value of the protective structure is 56,960,486 lari, and the Fund transfers the asset to Batumi Municipality free of charge, as a grant, from balance to balance.
It appears that Batumi City Hall did not respond to letters sent by the Fund. Last year, we requested copies of these responses from both Batumi City Hall and the Municipal Development Fund, but received none from either institution.
As of today, the facility has still not been officially accepted by Batumi City Hall. This is confirmed by public registry records: the Fund’s right of superficies over the coastal area has not been removed. No new registry extract has been issued since 2022, and the land—owned by Batumi Municipality and hosting the protective structure remains registered as being under the Municipal Development Fund’s construction right.
Abastumani
Large-scale infrastructure projects funded by the state budget began in Abastumani after Bidzina Ivanishvili took an interest in the resort. From 2018 to the present, public institutions have financed infrastructure projects in Abastumani with hundreds of millions of lari. Most of the contracts awarded under procurement related to these projects went to companies linked to donors of the Georgian Dream party.
The rehabilitation and restoration project of the resort is still ongoing. Construction of the so-called bypass road has not yet been completed. Construction of the Abastumani–Baghdati road was halted after Bidzina Ivanishvili, the founder of Georgian Dream, visited the site. The suspension was explained by the introduction of a new project under which vehicular traffic would no longer pass through the resort. Ivanishvili stated that electric vehicles would be introduced in Abastumani.
At the same time, rehabilitation of historic houses continues.
In parallel, restoration of former sanatoriums was not completed within the originally set deadlines.