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BUSINESS WEEK November 2, 2015 #120

November 2, 2015, Issue 119

AJARA1

Partner News Agency ajara business week WWW.ABW.GE

BE INFORMED, DO BUSINESS IN AJARA

Shuakhevi HPP - Investment Volume of 400 Million USD

David Baladze –

Amendments To Law On Free Tourism Zones Will Stimulate Investors Pg. 3

Vladimer Lychev Hilton Representative: Gambling Business Makes Batumi Pg. 4

AGL – A COMPANY’S STRATEGY FOR THE GREATER GOOD OF GEORGIA

Attractive Travel Destination In All Seasons Pg. 3

BATUMI HOSTS 5TH INTERNATIONAL GLOBAL TRADE DEVELOPES MINI DONOR CONFERENCE WORKSHOP TO BIG ENTERPRISE

Sheraton Hotel in Batumi is hosting the 5th international donor conference “Ajara – Cooperation for Development 2015” with over 100 participants from 16 countries. The Ajara government chairman greeted the conference participants.

The Finance and Economy Minster of Ajara has updated the audience on the economic processes in the Region and thanked the donor organizations for cooperation. He also overviewed the future plans and projects.

“In the light of the Ministry’s midterm plans we should improve the budget process. The Ajara government has moved to a program budget and

the budget priorities are based on the need of our population and attainable financial resources.

Higher investment inflows precondition the Region’s economic growth. The Ministry provides active efforts for promoting the Region’s investment potential and the ongoing privatization process fosters the business sector expansion.

In January to September 2015 a total of 90 assets were privatized and this process bolsters the development of tourism, housing, agriculture, industry sectors and creates new job places for our citizens”.

Pg. 2

Georgia to Unveil New Ski Resort in 2015

Filbert is Georgia’s one of the important exports items. Filbert is an old and traditional nuts culture of strategic importance. As to Georgia, initially, filbert was spread in the Black Sea southeast coastline, the Caucasus and Small Asia.

The last 14 years’ analysis has showed nut and filbert are recorded in Georgia’s ten top exports items every year. Moreover, for about 8 years filbert and nut were reported in five top exports items. According to the 2013 report, Georgia ranked second in exports of peeled filbert after Turkey. Filbert grows in almost all regions of Georgia. The Samegrelo Region is a leader in filbert production. The regions of Guria, Imereti, Kakheti, Ajara and other ones also make considerable contribution to the filbert production development in Georgia.

A new filbert processing enterprise is being constructed in Kobuleti. LLC Global Trade has transformed a mini workshop into a big enterprise as part of the Produce in Georgia program.

LLC Global Trade received a 207 918 GEL land plot for a symbolic value as part of the Economy Pg. 5 Ministry program.

American Warship Makes Port Visit In Batumi

Pg. 9

Pg. 11

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MAIN EVENTS

November 2, 2015 #120

ajara business week

BATUMI HOSTS 5TH INTERNATIONAL DONOR CONFERENCE investment inflows to ajara in 1h15 records 44% year on year growth to 165 million usd

S

heraton Hotel in Batumi is hosting the 5th international donor conference “Ajara – Cooperation for Development 2015” with over 100 participants from 16 countries. The Ajara government chairman greeted the conference participants. The Finance and Economy Minster of Ajara has updated the audience on the economic processes in the Region and thanked the donor organizations for cooperation. He also overviewed the future plans and projects.

“In the light of the Ministry’s midterm plans we should improve the budget process. The Ajara government has moved to a program budget and the budget priorities are based on the need of our population and attainable financial resources.

Higher investment inflows precondition the Region’s economic growth. The Ministry provides active efforts for promoting the Region’s investment potential and the ongoing privatization process fosters the business sector expansion.

In January to September 2015 a total of 90 assets were privatized and this process bolsters the development of tourism, housing, agriculture, industry sectors and creates new job places for our citizens”.

Direct private investments in Ajara marked 276 million USD in 2014, including foreign investments ratio made up 55%, Baladze said and added Ajara is the most urbanized region in Georgia and ranks second in Georgia in terms of a number of employed residents.

“In January to June 2015 investment inflows grew by 44% compared to the same period of 2014 and made up 165 million USD. The annual investment inflow in 2012 marked 152 million

USD. A growth in budget incomes proves an upturn in employment indicators, as nearly 90% of the budget incomes were drawn from income tax. According to the January-September report, income taxes to the republican budget exceeded 122 million GEL, up 23% compared to the same period of 2014 and up 41% compared to 2012.

According to the January to September period in 2012, the income tax transfers to the budget made up 86 million GEL. We plan to strengthen the institutional potential of our Ministry and make the current activity more efficient and transparent for our society.

With a support of our donors the Ministry of Finance and Economy of Ajara has implemented and keeps implementing many important projects, including: Ajara Solid Wastes Management Project with a support of EBRD and SIDA, “Water Supply and Swage System Rehabilitation Project in Ajara Village Communities” with a financial support of KFW, the Ajara Region Development Strategy Project (the international cooperation agency of Germany), the Ajara Economic Observatory (the Foreign Ministry of Poland and the Polish Aid), the Batumi Business Incubator (UNDP)”, David Baladze noted.

At the conference the Ajara Economy Minister noted the event aims to share the international experience, deepen cooperation with foreign partners and outline impulses for future initiatives.

The forum was attended by members of the Ajara government and the Ajara Supreme Council, representatives of accredited diplomatic corps, international organizations and other invited guests.

CHAIRMAN OF AJARA AR GOVERNMENT AJARA GOVERNMENT PLANS TO OPEN A MEETS AMBASSADOR OF USA NEW CONVENTION CENTER IN BATUMI ajara government will discuss the possibility of opening a convention center in ajara.

chairman of ajara ar government archil khabadze met with the newly appointed ambassador of us to georgia mr. ian kelly.

T

hey talked about the development of cooperation between two countries.

Archil Khabadze introduced investment environment and tourism potential of Ajara to the guest.

Ian Crawford Kelly (born 1953) is an American statesman and senior foreign service officer who is the current United States Ambassador to Georgia. He previously served as the U.S. Ambassador to the Organization for Security and Co-

operation in Europe (OSCE) from 2010 to 2013.

Prior to his ambassadorship, Kelly held a variety of high-level roles at the U.S. State Department, including serving as the department spokesman under Secretary Hillary Clinton, and has extensive experience working on issues relating to NATO, Russia, and the Balkans. Mr. Kelly arrived to Georgia with his spouse in September.

BUSINESS WEEK

The Editorial Board Follows Press Freedom Principles Publisher: LLC Caucasian Business Week - CBW Director: Levan Beglarishvili Address: Aleksidze Street #12 Editor-in-chief: Zura Kukuladze. Tel: 599 00 82 12 Mobile phone: +995 591 013936 WWW.ABW.GE Email: ajarabusiness@gmail.com

AJARA

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ead of the Department of Tourism said the plan of creating the convention center has already been agreed on.

Mamuka Berdzenishvili said that the funding of the convention center construction will be considered to be done in two ways. The first is attracting international aid organizations to obtain funding. The second alternative way – challenging the potential investors who are interested in the project.

“Batumi is a very active city during the Navy season, from November-April period. Various activities need to be held in this period in the city. For this, additional infrastructure is needed.

Building a convention center in Batumi is one of the most important steps to be taken in this regard. The Department is already working on the issue of finding the suitable location and acquiring the needed funds,” Mamuka Berdzenishvili said

The English-language weekly is distributed to over 1000 assets in Ajara, including, major companies, commercial banks, international organizations, state offices, high-class hotels, shopping malls, Batumi airport, Kobuleti, Sarpi. Businessmen and Managers Read ABW.

Source: www.commersant.ge, www.bpi.ge, www.gbc.ge, www.agenda.ge, www.civil.ge

INTERVIEW

November 2, 2015 #120

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ajara business week

AMENDMENTS TO LAW ON FREE TOURISM ZONES WILL STIMULATE INVESTORS der the existing norms, the construction schedule may be extended for only 3 months. In reality, this entry frightens investors and they abstain from making investments in this direction. The bill also admits several services that were not regulated by the legislation and investors could not offer these services to customers. Several new changes will be interesting for investors in this respect.

In a number of cases, the agreement period constituted only 21 months, but the amendments will remove these regulations and investors will have insured certain risk factors.

The law on promoting free tourism zones development will be revised. according to the bill, the preferences (including liberation from profits tax and vat) for state-owned assets will be also expanded over the property in the ajara autonomous republic.

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he Georgian government aims to promote investors in their activities, provide more efficient and flexible mechanisms and eradicate the law shortcomings that create additional barriers to the investors interested in the tourism sector, the Government’s office said.

DAVID BALADZE, the Ajara Finance and Economy Minster, provides detailed information on the current situation in the Kobuleti tourism zone and the Ajara government expectations in this respect.t - What changes will enter the law on tourism zones and what innovations will be introduced for investors?

- Certain changes were necessary to be made to the law on tourism zones because of the existing legislative gaps. For example, I would name the problems with the schedule extension. Un-

The new bill will insure the risks that the investors were facing previously. New amendments will stimulate investors to make investments in Georgia’s tourism sector.

- According to our information, the bill changes the construction schedules. This signifies investors will not be obliged to build a hotel in 18 months and a reasonable schedule will be given to them. Do you consider the limited schedules to have frustrated the tourism zone development and failed the project in Ajara?

- This is true. The existing law sets a certain period and this creates threats to investors. Forcemajeure situations often take place, while the law enables to extend the schedule for only 3 months in force-majeure situations. In a number of cases, the agreement period constituted only 21 months, but the amendments will remove these regulations and investors will have insured certain risk factors.

These limited schedules represent a clear sample, when one unveiled hotel and two ongo-

ing hotel construction projects were suspended in the Kobuleti tourism zone because of these limited schedules.

- Several months ago Keti Bochorisvhili noted the bill would introduce the explanation of a hotel, because the existing explanation of the term of a hotel implies a construction of only one hotel and this factor restricts the resort development potential. In reality, what will this explanation change in drawing investments to the tourism zones?

- This legislative initiative was to eradiate legislative gaps and the improvement of these shortcomings will motivate investors to put money in the tourism zones development in Georgia.

-Are investors able to select a desirable land plot or will the investors receive land plots under a specific plan?

– This is a free process. We have allocated land plots and investors are able to select desirable and interesting sites.

-At the introduction of the Kobuleti tourism zone project, the zone was said to mainly unite 3-star hotels. In this case, will this approach change and will the zone admit higherclass hotels too?

-There were certain restrictions regarding land plots and specific projects. However, the new bill will enable investors to select two land plots if they want to implement bigger projects.

The new bill will insure the risks that the investors were facing previously. New amendments will stimulate investors to make investments in Georgia’s tourism sector.

HILTON REPRESENTATIVE: GAMBLING BUSINESS MAKES BATUMI ATTRACTIVE TRAVEL DESTINATION IN ALL SEASONS

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fter the sanctions removal, Iran considers Georgia one of the most interesting directions, Lychev noted and suggested the Georgian Authorities to enhance bilateral relations with Iran.

The gambling business has made Batumi an attractive travel destination in all seasons, Lychev noted.

“Batumi possesses a very good concept. The government has reconstructed the old part of the city, road infrastructure, cycling tracks, seaport.

Batumi is also interesting in terms of gambling zone, as this business attracts clients in both summer and winter seasons. Iran is getting rid of sanctions and Iranian customers consider Georgia as one of the most attractive directions. It is very interesting to deepen relations with Iran in this respect.

A combination of a resort, a business center and a gambling zone ensures makes Batumi a place of travel interest throughout the year. Seasonal factor is important, but the business center and the gambling zone neutralize it”, Vladimer Lychev said.

At the same time, the Hilton network representative emphasized negative sides of sea resorts and noted it is not easy for tourists to arrive in Batumi. Lychev suggests the government to arrange more direct and low-cost flights.

“It is not easy to get to Batumi. The number of flights is not sufficient. When tourists are thinking of where to spend the time, they may choose other destinations because of lack of direct flights to Batumi and prefer places with simpler and cheaper travelling conditions”, Lychev told the ABW.

“

A combination of a resort, a business center and a gambling zone ensures makes Batumi a place of travel interest throughout the year.

Seasonal factor is important, but the business center and the gambling zone neutralize it”,

“

VLADIMER LYCHEV, a regional representative of the hilton brand, talks about the black sea resorts development perspectives.

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SOCIAL RESPONSIBILITY

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AGL – A COMPANY’S STRATEGY FOR THE GREATER GOOD OF GEORGIA Shuakhevi HPP - Investment Volume of 400 Million USD

Company With High Social Responsibility AGL (Adjaristsqali Georgia, LLC) is developing hydropower resources on the Adjaristsqali River and its tributaries. The company is implementing one of the largest infrastructure investments in Georgia, the Shuakhevi Hydropower Project (HPP).

AGL adheres to high standards of corporate social responsibility in its work by supporting the economic and social development of the Adjara region and improving the living standards of the people in the project area.

Awareness Raising and Education Community Development

English language program

6Business

6Language

Support

6Apicultural

Project

development Project

Supporting the development of local business initiatives in the Khulo and Shuakhevi municipalities is one of the main priorities of our company.

AGL has launched a beekeeping project in the Khulo and Shuakhevi municipalities. The aim of this project is to improve and restore the livelihoods of the affected farmers to pre-project level.

We provided training for local residents on business planning and proposal writing, Georgian tax regulations and state incentives for people living in the mountainous regions.

Through providing training and grants we aim to improve income generating capacities of local communities and this way facilitate to improve their living conditions.

Farmers are trained in new trends and modern technologies of beekeeping, where they acquire needed skills for setting up beekeeping enterprises.

Apart from training, participants are provided with bee families, beehives, and any other necessary equipment.

and Pedagogical Skills Training Training in English language and teaching skills have been offered to local English teachers from the Khulo and Shuakhevi municipalities. Last semester, forty local teachers participated in the program. These teachers focused on practical skills such as classroom management and modern foreign language teaching methods as well as on improving their English language abilities.

6English Essay Contest

Rural infrastructure development is another social priority for the company. These infrastructure projects are designed for the long-term development of the region. It is important that the infrastructure projects are suited to the needs and wishes of local communities, and so all of the company’s projects are planned with the participation of local populations and municipal governments.

The list of the infrastructure projects which the

company is implementing in these municipalities is quite large and includes roads, drainage systems, permanent water supplies, and school facilities such as playgrounds, sports fields, and libraries.

Infrastructural projects target the development and long-term benefit for the region.

Scholarship

Program The Company started its Students Scholarship Program in 2015 in order to support talented local students pursuing higher education. Eight students from the Khulo and Shuakhevi municipalities had their education financed through this project.

Scholarships are awarded to students who are enrolled in state accredited universities in 2014 and have high academic performance.

AGL will continue to finance these students’ education for three years contingent upon their continued success on their semester exams.

Last spring, AGL organized an English-language essay competition for local school students on the topic “Georgia in 2045,” in which students were asked to compare the dramatic changes in the last thirty years in Georgia with their visions for the future of Georgia in the next thirty years. 44 students participated in the contest. The goal of the essay contest was to improve students’ writing and critical thinking skills.

6After-school

Infrastructure Development

6Students

English

6Student

Internship

Activities

Program

The Company offers school extracurricular English activities for local gifted and talented public school students to help develop their Englishlanguage communication skills. These students work with native English speaking teachers in the afternoons to discuss current affairs and local problems in team-based and mock-government debates and interact with representatives of local government.

AGL are helping develop and strengthen professional staff in the Georgian hydropower sector by inviting university students from the Faculty of Engineering at Georgian Technical University to intern at the Shuakhevi HPP. These interns are gaining theoretical knowledge and practical skills by working in different units on rotation. Students participate in the building of power stations and dams and in the construction of tunnels.

INTERVIEW

November 2, 2015 #120

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ajara business week

GLOBAL TRADE DEVELOPES MINI WORKSHOP TO BIG ENTERPRISE

As Part of Produce In Georgia Program

“

We have concluded agreements with leading enterprises of several European countries.

ploy additional 60 individuals after the enterprise launches operation at full capacity. According to the latest reports, the Ajara Region will harvest about 2500-3000 tons of filbert in 2015.

-As a result, farmers will not have to take extra costs to sell filbert in other regions…

- We will manage two enterprises. We will buy filbert, then process it and export pilled filbert to foreign markets. Another enterprise will fry sorted filbert. We will buy raw material from immediately local peasants and this is of crucial importance for them, because they will be able to bring their product directly to us and we will pay good sums to them. All these factors will considerably alleviate the local farmers’ conditions.

-Where do you export the product?

- We will export our product to Germany, Austria, Spain and various counties of Europe.

Therefore, we process the product in line with European standards. We sort filbert due to size in bigbag packages and canvas sacks. We have concluded agreements with leading enterprises of several European countries. We do not sell our product on the domestic market.

-This year the filbert price hit the record price of 7 GEL, while in previous years the price was under 3 GEL. Later, the price declined again. The filbert purchasing rice changes every day. What factors drive a change in filbert prices?

-At this stage, the filbert market is mainly controlled by Turkey and we have mainly signed our contracts with Turkish companies. When the filbert price declines in Turkey, this signifies the filbert price will rise in Georgia. Like the previous year, the filbert price will be high in 2015 and this tendency is already discernible. Currently the filbert price exceeds 6 GEL. Our advantage is that we export our product to foreign markets.

Negotiations are underway on taking an ISO certificate and we will obtain this certificate as soon as we put into exploitation our enterprise.

Our staff will be trained. This is difficult job, but we have huge motivation. We should strengthen

our regions, all cities and villages, to recover the Georgian economy. Strong village signifies the strong Georgian economy. We see these impulses in the new Georgian Authorities. New infrastructural projects and enterprises are opening in regions and this is of crucial importance for creating thousands of new job places.

“

The Government has assisted us in developing the exports-oriented production.

We have taken obligation before the government to launch production in 2 years by investing 831 672 GEL.

“

ZVIAD SHAVISHVILI LLC Global Trade director

Filbert is Georgia’s one of the important exports items. Filbert is an old and traditional nuts culture of strategic importance. As to Georgia, initially, filbert was spread in the Black Sea southeast coastline, the Caucasus and Small Asia.

The last 14 years’ analysis has showed nut and filbert are recorded in Georgia’s ten top exports items every year. Moreover, for about 8 years filbert and nut were reported in five top exports items. According to the 2013 report, Georgia ranked second in exports of peeled filbert after Turkey. Filbert grows in almost all regions of Georgia. The Samegrelo Region is a leader in filbert production. The regions of Guria, Imereti, Kakheti, Ajara and other ones also make considerable contribution to the filbert production development in Georgia.

A new filbert processing enterprise is being constructed in Kobuleti. LLC Global Trade has transformed a mini workshop into a big enterprise as part of the Produce in Georgia program.

LLC Global Trade received a 207 918 GEL land plot for a symbolic value as part of the Economy Ministry program.

Zviad Shavishvili, LLC Global Trade director: -Mr. Zviad, how many tons of filberts will you process a year and how much harvest do you expect to reap in Ajara?

First of all, I would like to note that we are implementing a very important project. At the end of 2015 the Ajara region will acquire a new enterprise equipped with modern technologies.

Local residents will be employed there and this factor is of crucial importance. The Government has assisted us in developing the exports-oriented production. We have taken obligation before the government to launch production in 2 years by investing 831 672 GEL. The company head assures the enterprise will launch operation ahead of schedule. Our enterprise will process about 5 000 tons of filbert a year. The mini workshop has already employed 40 persons, but we will em-

“

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BUSINESS ajara business week

Turkish Investments Expected To Increase In Ajara

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ext year turkish investors are expected to become more active in ajara next year.

The reason for this prediction has become the Istanbul-Batumi business forum organized in Istanbul by the government of Ajara, the Ministry of Finance and Economy and the International Investors Association- Georgia.

According to Osman Chalishkan, Secretary General of International Investors Association, they familiarized the Turkish partners with the local business environment, the current and ongoing projects and discussed a future cooperation. Bilateral meetings with 50 companies were also held within the business forum.

“Turkish investors are interested in the region and observing events. They very much want to invest a large amount of investments in 2016,” says Chalishkan.

He says that the Istanbul Chamber of Commerce Chairman proposed holding of the Busi-

ness Forum in Batumi in May noting he would arrive in the region with the 200-person delegation to personally familiarize with Afjata’s investment environment.

November 2, 2015 #120

Batumi Hosts Fifth International Exhibition and Sales of Agro Food Products and Technologies 2015

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rom October 30 to November 1 Batumi’s skating palace hosted Agro Batumi 2015, the 5th international exhibition and sales of agro food products and technologies. The event was organized by GEONET Expo company, Georgia’s one of the earliest exhibition companies, that organizes exhibitions in Batumi to develop this field in the Ajara Region.

The event co-organizers are the Ajara Government, the Ajata Agriculture Ministry, Batumi City Hall, Ajara Chamber of Commerce and Industry, the Association of International Investors of Georgia. The Ajara TV company was a media partner of the event.

Agro Batumi 2015 is a large-scale project that acquires growing attractiveness and efficiency year by year. The participant companies were able to introduce and advertise their products before the society for three days.

Companies from Georgia, Turkey, Ukraine and Iran have taken part in the exhibition. AD and information tours were held during the exhibition, as well as presentations and meetings with media agencies.

FINCA BANK GEORGIA IMPLEMENTS PERSONAL BANKING SERVICE

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INCA Bank Georgia has opened it’s first personal banking branch at Chavchavadze ave. 52. Service center was opened by CEO of FINCA bank, Vusal Verdiyev and deputy mayor Irakli Lekvinadze with chairman of Tbilisi city assembly Giorgi Alibegashvili.

According to Vusal Verdiyev, personal banking service center offers it’s customers full personal banking services. He noted that opening of this branch is a very significant step forward.

“The opening of the personal banking branch represents an important step for FINCA Bank Georgia as it sustains and expands the services we provide for our clients while staying true to the FINCA mission. The deposits we offer are used for financing micro and small enterprises, helping small entrepreneurs to increase incomes and create jobs.”

Customers of FINCA bank personal banking line will have personal bankers and will join more than 80 000 bank clients throughout the whole country.

At the same time, the bank presents a completely new, innovative service — a library where customers will enjoy a pleasant environment.

As a driving force for financial inclusion in the country, FINCA Bank Georgia, JSC has over 17 years of experience in the country and has contributed to the development of small businesses and improvement of many lives. FINCA Bank Georgia encourages development of savings culture, as savings contribute to the creation of a stable social and economic environment for future generations.

November 2, 2015 #120

RESTAURANT ajara business week

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Roof Terrace – New Café in Batumi

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new café has opened at the Old Town hotel’s roof in Batumi. Roof Terrace director Khatia Ardzenadze told the Ajara Business Week (ABW) the café represents an indoor space. Georgian and Italian specialists have designed the interior.

“Many guests prefer to spend the time at our asset. This place especially attracts the people who like rainy weather. Many visitors get pleasure of watching Batumi’s rainy views from the glass wall. In wintertime, the indoor Terrace is the best place for entertainment and having a rest.

Roof Terrace offers various cousins, but the preferences is given to the Italian and Georgian cuisines. Pizza, pasta prepared by various recipes, tapped and bottled beer, a wide variety of cocktails and alcoholic beverages, 15 varieties of coffee are waiting for you. Roof Terrace will find favor in the eyes of all guests”, Khatia Ardzenadze said.

Roof Terrace is open from early mornings till 2 AM, but Saturdays the Seaside band plays music live.

“Besides the location, Roof Terrace is also special, because this place is not designated for only tourism season. Roof Terrace invites you in any seasons of the year. Initially, when we decided to open the café, we wanted to arrange a place where people would have a rest at any season. I think we have managed to implement this idea.

Beautiful views to the sea and the city add main advantage to our city, because in the Old Batumi this is the highest place. As to the kitchen, we have employed experienced chef from Ukraine, who prepares delicious dishes.

Our visitors frequently celebrate birthdays at Roof Terrace. If birthday celebrations miss the live music days, we can organize karaoke, not only background music plays. Our visitors are able to spend wonderful time here”.

Beregi –Batumi Residents’ Favorite Place Beregi is one of the most favorite places for Batumi residents together with the Batumi coffee brewed on sand.

Restaurant Beregi is situated in the center of Batumi, at the seaside, near the yacht club.

The asset unites two restaurants and three cafébars. The network is able to host 500 persons simultaneously

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ega Diasamidze, one of the managers of the restaurant: -Your restaurant has become Batumi’s visiting card. _That’s right and we are proud and glad. Our restaurant also provides the environment that is characteristic to Batumi. On entering the asset, visitors find themselves in Batumi-related atmosphere and our guests like this situation very much. They visit our asset to have delicious dishes. They are also interested in the Batumi sand coffee and spending pleasant time at the seaside.

-Coffee prices are the lowest in Batumi at your restaurant…

-That’s why our restaurant is a success from the very inception. There are many other restaurants in Batumi and the competition is sharp, but we provide special environment - the Sea, beach, sailing in the sea. Romantic atmosphere is created in the evening.

Foreign guests like Ajarian Khachapuri, Georgian dishes, in general, Khinkali and Kebab.

Professional chefs work here. We employ about 25 persons. Our menu includes almost all Georgian dishes. Visitors especially like dishes with nuts. Khinkali is also very popular.

-Who visit your restaurant?

-Batumi residents do, who like Beregi restaurant and the Batumi beach, as well as foreign guests from various countries. They like our cuisines, especially Khinkali, barbecue and Kebab.

Today it is important that you host guests with high quality products to attract more clients to your asset. The main thing is not to only receive profits. We are trying to maintain the existing prices to draw more clients. Amid sharp competition, it is difficult to find, implement and offer something new, special and distinguished with higher quality.

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PUBLICITY ajara business week

November 2, 2015 #120

November 2, 2015 #120

SKI RESORT

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ajara business week

Georgia to Unveil New Ski Resort in 2015 Goderdzi Resort to Open on December 5

Ski Resort on Goderdzi Pass will Considerably Grow Tourist Inflow to Ajara In this period of the year, only shepherds’ calls could be only heard from Zankebi to Chanchakhi or only grazing cattle and sheep used to violate the surrounding silence. Passengers and vehicles used to rarely appear in the Goderdzi Pass.

The situation has entirely changed today.

Various vehicles are crossing the area today, the roar of caterpillars, excavators and bulldozers saturate the whole space. The Goderdzi Resort is getting ready for the season inauguration.

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oderdzi Resort, the Ajara’s new ski resort will open in 2015. The highest ropeway station is located on 2 350 meters. The resort includes the region’s longest skiing track of 4 kilometers.

For the last years many projects and programs were implemented in the Ajara highland, but the Goderdzi Resort project is special for its scales and sizes, as well as fir its major in investments.

The resort will satisfy all standards and requirements of the world’s distinguished ski resort complexes.

The resort construction works started in 2012 and will end this year. The resort will open on December 5. Two years ago a total of 13.264 million GEL was spent on the development works, while in 2013 a total of 2.208 million GEL was spent on infrastructure arrangement and protection works.

In 2014, the project was financed by additional 3.518 million GEL, but incomplete infrastructural works did not enable to put the asset into exploitation.

The infrastructural problems and land legalization details were resolved. The state budget

has allocated 22 918 800 GEL for the ski resort projection and construction works, Archil Khabadze said.

The ski resort construction has attracted overall attention. Zimo, Foni, Doppelmayr, EnergoSektorMsheni and Iberia G are famous brands in Georgia and foreign countries. These companies have implemented many important projects.

Doppelmayr is distinguished in Europe for arranging ropeways and skiing tracks. Goderdzi Resort was beautified by ropeways, poles of Doppelmayr company. Equipment of 5 million GEL was installed at the resort. The company has performed works worth 2 million EUR at the resort.

At this stage, security systems were arranged on the resort territory. Hotel-style wooden cottage was arranged on 380 square meters in the resort zone. Moreover, a cottage with 72 beds was constricted for visitors on the territory.

“The existing hotel-style infrastructure enables the resort to host 134 vacationers simultaneously with an overnight stay, but the infrastructure’s capacity constitutes 4 000 persons an hour. The resort has not determined precise tariffs

for services. We provide intense job on pricing, because the ski resorts services represent innovation in this place. We will introduce temporary prices of services. In the 2015-2016 winter season we will regularly question our visitors concerning the temporary prices and services. Based on the collected information, we will take a due decision. At this stage, we will set differentiated tariffs due to hotel services, i.e. there will be different prices in hotel-style cottages, guesthouses and the Goderdzi Resort’s hotel suites. Orientation prices will be determined for specific suites of the hotel, without meal tariffs. I suppose overnight stay per person will not cost over 50 GEL”, LLC Goderdzi Resort director Jemal Bolkvadze noted.

The State budget has financed the ski resort projection and construction works by 22 918 800 GEL in the village of Danisparauil, the Khulo Municipality.

Ropeway systems were imported and installed at the resort as part of the agreement signed by LLC Goderdzi Resort and Austrian company Doppelmayr Seilbahnen.

“We have drawn about 20 million GEL investments for the resort development. Additional 5 million GEL was accumulated on the company account. We aim to develop the resorts as quickly as possible”, Ajara Economy Minister David Baladze said.

From old buildings, we have maintained only several steady walls, David Koniadze, one of the managers of the resort, said.

“Our constructions will withstand many centuries. The hotel offers expensive and cheapo suites. The Goderdzi Resort visitors are already able to stay overnight here. This resort will be distinguished in Georgia for its special air and attractive environment for tourists”, Koniadze said.

The Goderdzi ski resort inauguration will considerably increase tourist inflow to the Ajara Region, representatives of the Ajara Tourism and Resorts Department, noted.

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HEALTHCARE

November 2, 2015 #120

WHY GENERICS ajara business week

On Georgia’s Pharmaceutical Market, 70% are Generic drugs VALERI KVARATSKHELIA Deputy Minister of Healthcare Pharmaceutical companies did bring Generic drugs before, and will bring in future as well, If we had only original and brandy medicines on our market, prices would be much more expensive, some countries banned original drugs and oriented on Generic drugs by doing so they decreased the expenses. Generics have their positive sides, with cost. that’s why bringing new ones is not an issue. We need to expand its spectrum.

Today on Georgia’s pharmaceutical market 70% are Generic and only 30% are band drugs. Generics cost 20-30 percent cheaper than the original drugs. The state should not interfere in the business and adhere this principle, however, many of the more of developed countries made the decision before us that if state buys drugs, they have to be Generic.

Consequently, the quality control of drugs should be at a high level, which is exactly this type of drug quality control. Therefore, in the near future the laboratory of quality control of drugs will start functioning in the country.”

Generics Function the Same Way as Brand Drugs Do Recently the Ministry of Health announced its intentions to introduce generic drugs on the Georgian market. According to the Ministry, this step will regulate the existing prices of drugs in the country.

In pharmacology, the original brand drug is an innovative synthesized formula, the creation of which requires at least 10-12 years of research and studying the markets.

After their creation, such drugs are protected by copyright. Their owners, as a rule, enjoy a 20year exclusive right to produce and sell the drug.

This often leads to a high price of the drug once it reaches the market. Once the copyright expires, other manufacturers are given a right to also produce this drug.

Creation of generics no longer requires expensive studies to be conducted.

After the biological equivalence to the reference drug is proven, second, third, etc., generations of generics can be created.

Attaining this level of advancement would be a revolutionary step for the Georgian pharmacology.

How Well is Society Informed About Generics?

Affordable Pricing Is Driving the Generic Drug Market By regulation, a generic drug must contain the same active ingredients as the original formulation. The active ingredient is any compound that has a medicinal property that makes a drug work—to treat, cure, or prevent any disease.

“Bioequivalent” means that the active ingredient works in the same way and in the same amount of time as the branded drug. Also, generics should have the same label as the branded drug. The label includes drug information like intended use, adverse reactions, major safety risks, general warnings, recommended dosages, and routes of administration.

This assures consumers that the medicines are proven to be safe and effective. However, in some medications—like anti-epileptic drugs and blood thinners—generic drugs might not be as effective as branded, or patented, drugs.

We Import Generic Drugs from US and EU DAVID KILADZE Founder of GPC Generics are created for decreasing medical costs in pharmaceutical sector. Expending Generic spectrum means that affordability on many drugs will increase.

When our company has started introducing Generic drugs, we applied such as US and EU markets that have strict quality control over drugs.

We implement import from those markets, however drugs undergo series of control in Dutch laboratory.

We have set out monitoring and tracking system with our American partners, where we are obliged to inform each tablet movement in our pharmacy network. If these systems work properly, then the quality of drug control will be high.

“Given Georgia’s social conditions, our patients often demand lower cost drugs because they can not afford the brand medicine. When we offer generic drugs to our patients as an optimal way-out, we often have to convince them that the generics are as effective as the brand medicines and are not harmful. This is because the Georgian pharmacological market is not developed enough to have a wide variety of generics. People are not familiar with such drugs, hence they feel uneasy about them,” Doctor Tinatin Gigauri told CBW. Generics range from low, average to high quality, depending on the producing country, production process and the appropriate certification. Increasing demand on generics in Georgia is believed to make the existing pharma companies decrease prices on their brand medicines.

Do You Know What Generic Drug is?

Analytic center “Caucasus Ranking” has conducted a survey, aimed at analyzing the level of how society is informed about Generic drugs.

Georgia’s 400 citizens were chosen for this survey, from which 83% had never heard about Generics and only 28% informed citizens were purchasing these medicines.

“Together with telephone survey in Tbilisi, quantitative studies are conducted in Batumi and Kutaisi for pharmaceutical market. It is clear that consumers cannot distinguish the brand and generic drugs and are not interested in the production place of drugs and their patent date. However, more than 2/3 of Georgia’s pharmaceutical sector comes from the generic drugs, “- Giorgi Kapanadze, Director of Caucasus Ranking noted.

EVENTS

November 2, 2015 #120

ajara business week

AMERICAN WARSHIP MAKES PORT VISIT IN BATUMI, GEORGIA the uss porter (ddg-78), an arleigh burke-class guided-missile destroyer from the united states’ (us) navy 6th fleet, has made a port visit in batumi, georgia.

AJARA TOURIST INFORMATION CENTRES: • Batumi boulevard information centre - 2, Ninoshvili str.; m.: 577 90 90 91; t.: 0 422 29 44 12; w.h.: 09:00-22:00 (Everyday) • Batumi cable-way information centre Gogebashvili street; m.: 577 90 90 93; t.: 0 422 29 44 10; w.h.: 24/7 • Batumi airport information centre - 220, Airport highway; t.: 0 422 29 44 14; w.h.: according to flights schedule • Sarpi information centre - Sarpi Customs; mob: 577 90 90 72; w.h.: 09:00-21:00 (Everyday) • Kobuleti information centre - 642 Aghmashenebeli street; tel: 0 422 29 44 13; w.h.: 09:00-20:00 (Everyday) • Keda information centre - Aghmashenebeli street; w.h.: 09:00-19:00 (In summer) • Shuakhevi information centre - 22 Rustaveli street; w.h.: 09:00-19:00 (In summer) • Khulo information centre 29 M. Abashidze street; w.h.: 09:00-19:00 (In summer)

T

he visit was to reaffirm the US’ commitment to strengthening ties with NATO allies and partners like Georgia, while working toward mutual goals of promoting security and stability in the Black Sea region, the US Embassy in Tbilisi said.

While in Georgia the vessel will conduct routine combined training with the Georgian Coast Guard and provide ship and press tours.

“The Porter’s port visit will further build on previous US Navy visits to Georgia that enhance the professional partnerships and personal relationships between the US and its allied and partner nations,” the Embassy said in a statement.

The warship will also open its door to guests and media representatives while docked in Batumi.

The Porter, forward-deployed to Rota, Spain, was deployed in a multi-mission role in the US Navy’s 6th Fleet area of operations to contribute to regional maritime security, conduct bilateral and multilateral training missions and to support NATO operations and deployments throughout the Black Sea region.

The US Navy routinely operated ships in the Black Sea, consistent with the Montreux Convention and international law.

DIPLOMATIC MISSIONS IN BATUMI: • Azerbaijan - 14 Dumbadze street; t.: 0 422 27 67 00 • Estonia - 60 Gorgasali street; t.: 0 422 27 09 10 • Turkey - 9 Ninoshvili street; t.: 0 422 25 58 00 • Iran - 83 Parnavaz Mepe street; t.: 0 422 22 86 01, 0 422 22 86 02 • Armenia - 32 Gogebashvili street; t.: 0 422 21 63 02

The US warship docks near Batumi’s iconic Ali and Nino statue. Photo from the US Embassy’s official Facebook page.

American Warship Makes Port Visit in Batumi, Georgia

SIGHTSEEING AND CULTURE BATUMI CIRCUS - 13 Services: Parking, Toilet The staff speaks: Georgian, English, Russian Prices; Discounts are available CONTACT • Mob.: 599 68 02 23 PUPPET AND YOUTH STATE THEATRE - 13 Working hours: 10:00-17:00 Services: Parking, Toilet The staff speaks: Georgian, English, Russian Prices; Ticket: 2 Gel Discounts are available CONTACT • Tel.: 0 422 27 62 34 • Mob.: 599 40 45 38 • E-Mail: info@puppet-show.org • CINEMA APOLLO - 13 • Working hours: 12:00-00:00 • Services: Credit cards accepted, Free Wi-Fi, Exhibitions, Cafe, Toilet • The staff speaks: Georgian, English, Russian • Prices • Ticket: 6-10 Gel • Tel.: 0 422 22 72 27 BATUMI BOTANICAL GARDEN - 13 Working hours: 09:30-18:00 Services: Credit cards accepted, Free Wi-Fi, Exhibitions, Guide service, Cafe, Information board, Parking, Toilet The staff speaks: Georgian, English, Russian, German Prices Ticket: 8 Gel Guide service: 30 Gel Discounts are available • Tel.: 0 422 29 49 29 • Mob.: 577 10 16 07 • E-Mail: info@bbg.ge AJARA KHARITON AKHVLEDIANI STATE MUSEUM - 13 Working hours: 10:00-17:00 Services: Free Wi-Fi, Exhibitions, Guide service, Information board, Parking, Toilet The staff speaks: Georgian, Russian Prices Ticket: 2 Gel Guide service: 5 Gel Discounts are available • Tel.: 0 422 27 11 75 AJARA STATE ART MUSEUM - 13 Working hours: 10:00-18:00

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Services: Exhibitions, Guide service, Information board The staff speaks: Georgian, English, Russian Prices Ticket: 2 Gel Guide service: Free Discounts are available • Tel.: 0 422 27 38 94 BATUMI ARCHEOLOGICAL MUSEUM Working hours: 10:00-18:00 Services: Exhibitions, Guide service, Information board The staff speaks: Georgian, Russian Prices Discounts are available • Tel.: 0 422 27 65 64 • Mob.: 599 15 41 50 THE NOBEL BROTHERS BATUMI TECHNOLOGICAL MUSEUM Working hours: 10:00-18:00 Services: Exhibitions, Guide service, Information board, Parking The staff speaks: Georgian, Russian Prices Ticket: 3 Gel Guide service: 5 Gel Discounts are available • Mob.: 599 43 03 68 DANCING FOUNTAINS Working hours: 20:00-00:00 Services: Parking • PricesTel.: 0 422 27 88 08 • E-Mail: info@boulevard.ge Ticket: Free BATUMI ILIA CHAVCHAVADZE STATE DRAMA THEATRE Working hours: CLOSED until late June / early July 2015 Services: Parking for around 15 cars. Accessible for disabled people with 10 wheelchair spaces. Toilets (but not accessible). No theatre bar or restaurant but plenty of bars and restaurants nearby.

The staff speaks: Georgian, Russian, English, Turkish • Tel.: 0 422 27 06 14 • Mob.: 555 36 63 99 • E-Mail: info@batumitheatre.ge BATUMI SUMMER THEATRE Batumi Summer Theatre is located in a central part of Batumi Boulevard and is designed for concerts and other entertainment events. An architecturallyunique wooden building is adorned with wooden ornaments and features a ceiling painted in imitation of the sky. The Summer Theatre has a long history. It was renovated in 2013 and has operated since then.

• Tel.: 0 422 29 45 24 Adress: Batumi boulevard BATUMI ART CENTER Working hours: 10:30-22:00 Services: Exhibitions, Parking, Toilet, Café, Concerts, Performances, Opera, Traditional Georgian Folk Song and Dance, Orchestra Performances The staff speaks: Georgian, English, Russian, Turkish, French Tel.: 0 422 27 62 40 • Mob.: 555 37 75 99 • E-Mail: info@muscenter.ge ZOO Working hours: 11:00-19:00 (Except for Monday) Services: Parking, Toilet The staff speaks: Georgian, English, Russian el.: 0 422 22 17 30 • E-Mail: office@parkbatumi.ge CONTEMPORARY ART SPACE Working hours: 11:00-19:00 (Except Monday) The staff speaks: Georgian, English, Russian • E-Mail: batumiartspace@gmail.com Working hours: 11:00-20:00 The staff speaks: Georgian, English, Russian Prices:Free entrance • Tel.: 0 422 27 97 00 RUSUDAN PETVIASHVILI ART CAFE-GALLERY Working hours: 11:00-24:00 The staff speaks: Georgian, English, Russian • Mob.: 599 74 52 23

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PUBLICITY ajara business week

November 2, 2015 #120