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BUSINESS WEEK November 30, 2015 #17
November 30, 2015, Issue 17
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Partner News Agency ajara business week WWW.ABW.GE
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EPHREM URUMASHVILI: Bitcoin Is Least Risky Crypto Currency
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ICONIC BATUMI “OCTOPUS” CAFE GIVEN NEW LEASE OF LIFE Pg. 7 Pg. 3
REHABILITATION WORKS UNDERWAY AT BATUMI BOTANICAL GARDEN
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GOVERNMENT TO BOOST GEORGIAN TEA FURNITURE HOUSE MARCO IN BATUMI PRODUCTION Georgian Tea Program will Boost Domestic Tea Production, but Its Competitive Potential against Imports Remains Questionable Pg. 4
AJARA GOVERNMENT COUNTS ON CRUISING TOURISM DEVELOPMENT
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Marco is a private company that imports furniture from four Asian countries. The company appeared in the Georgian market in 2011 and currently, operates in four cities of Georgia – Tbilisi, Telavi, Kutaisi and Zestaponi. Teona Basiladze, the Marco Top Manager: - Our mission is to introduce top-quality furniture with special design to our clients and ensure a full package of services, including highlevel services, free transportation and assemblage services. Besides quality, Marco provides permanent efforts to keep affordable tariffs in the whole country and provide 2-5 year guarantee periods.
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AJARA TO SPEND 1.420 MILLION GEL ON NEW YEAR PREPARATIONS Pg. 3 Batumi City Hall and the Ajara Tourism and Resorts Department are preparing the 2016 New Year events that will be held in Batumi. The New Year concert will be staged on Era Square at night on December 31, where the Christmas Fair will be also arranged. This year Batumi is expected to meet the coming 2016 New Year with various and special entertainments and events. Adjarganateba ltd has already won the tender to adorn the city by New Year accessories. Batumi Mayor Giorgi Ermakov: - Batumi City Hall budget will finance the decoration works by 1.420 million GEL.
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MAIN EVENTS ajara business week
November 30, 2015 #17
CONSTRUCTION PROJECTS PROCEED IN INTENSE REGIME IN AJARA
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jara Finance and Economy Minister David Baladze visited the social house construction works in the King Tamar settlement. Representatives of Dagi ltd company introduced the details of the construction works to the Minister. The company has already finished a construction of five floors. The new social house with 10 floors will embrace 54 apartments and the construction company will employ 400 local residents. The project is valued at 3 million GEL. The finished building with white interior will have water supply and sewage systems, electricity and gas supply systems. The social house construction works started in July 2015 and will end in summer 2016.
In 2013-2015 the Ajara government transmitted apartments to 184 families in ownership. In addition, 176 apartments will be arranged as part of the Social Houses projects, the Ajara Finance Minister said. “We launched impressive construction works in 2015. We have already built a new social house in Batumi with 116 apartments, a 54-apartmenmt social house in Shuakhevi, 54-apartment and 12apartmemnt social houses in Keda. A 50-apartment social house is being built in Khelvachauri. A 72-apartment house will be constructed in Khulo and a new 54-apartment house will be erected in Batumi”, Baladze noted.
AJARA GOVERNMENT COUNTS ON CRUISING TOURISM DEVELOPMENT A number of measures should be carried out to enforce the cruising tourism strategy, Mamuka Berdzenishvili, the head of the Ajara Tourism and Resorts Department, noted. Namely, we should create due infrastructure for receiving cruising ships, Batumi Seaport must be integrated into international cruising organizations, we should implement marketing projects for popularizing Batumi as the cruising tourism destination. It is also important that the Batumi Seaport carry out positioning within the joint platform of the Black Sea basin countries.
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he Government of the Autonomous Republic of Ajara, jointly with the Tourism and Resorts Department, has intensified efforts for the cruising tourism development in the Region.
The Ajara Government has invited a foreign expert from Great Britain for exploring the existing situation in the cruising tourism field and preparing a cruising tourism development strategic plan. The foreign expert has already prepared and introduced the strategic development plan.
Mamuka Berdzenishvili, Head of the Ajara Tourism and Resorts Department: -The engagement of Batumi Seaport and the local government is necessary for the cruising tourism development in the Region. The Batumi Seaport should implement infrastructural projects, while the government through our department should carry out advertising campaigns and marketing measures, in general. The Batumi Seaport is to rehabilitate the 10th and 11th berths, modernize the operational activities and implement the socalled Dolphins infrastructural project in order to harbor ships of over 300 meters in length. The department should ensure a development of specific communication platform in the Black Sea, set up an association for cruising tourism positioning of all cities in the Black Sea basin, including Batumi. We should also hire a skilful and experienced foreign marketing manager who
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will ensure positioning of Batumi in western markets. Finally, the seaport should revise the existing duties. In 2014, our city received 30 cruising ships, but this year this figure considerably declined and the Batumi Seaport received only nine cruising ships. I relate this contraction to the
developments after the Crimea annexation, as many contracts were annulled within the Black Sea basin countries. Negotiations are underway with the Batumi Seaport management, Mamuka Berdzenishvili said.
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INTERVIEW November 30, 2015 #17
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ajara business week
AJARA TO SPEND 1.420 MILLION GEL ON NEW YEAR PREPARATIONS “Both Foreign and Domestic Visitors will Enjoy Discount Campaigns in Ajara starting December 25”
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atumi City Hall and the Ajara Tourism and Resorts Department are preparing the 2016 New Year events that will be held in Batumi. The New Year concert will be staged on Era Square at night on December 31, where the Christmas Fair will be also arranged. This year Batumi is expected to meet the coming 2016 New Year with various and special entertainments and events. Adjarganateba ltd has already won the tender to adorn the city by New Year accessories. Batumi Mayor Giorgi Ermakov:
- Batumi City Hall budget will finance the decoration works by 1.420 million GEL. The arranging of the main New Year tree on Era Square started on November 25. Garlands, lighting balls, fire-needles will be fixed to the New Year tree. - What specific works will be performed on the territory of Batumi? - Parks, streets will be beautified by New Year accessories. The company that has won the tender will restore the existing accessories and install them on D. Tavdadebuli, Vazha-Pshavela, L. Asatiani and May 26 Streets. All electrical
goods will have LED lighting and will meet the suitable level of impermeability. - Will you apply a new illumination concept or use the 2014 project? -This year a new concept will ensure the Batumi illumination. New constructions will be installed. Illumination will be performed in two colors and will reflect the snow effect. Twenty seven various accessories will be supplied to the City. The purchased accessories will be fixed on Rustaveli, Gogebashvili, Gorgiladze Streets. Frames of two-wing poles will be installed on Melikishvili Street. Handrails will be installed from the King Tamar settlement up to Batumi airport. Trees will be adorned from Gamsakhurdia Street to Tbilisi Square. Era Square will be beautified by various accessories, as well as M. Abashidze, Dumbadze, Baratashvili and other streets.
As to the New Year events, a special commission was set up at Batumi City Hall to prepare the schedule of events and determine the service suppliers. - Mr. Giorgi, the Christmas Fair is considered an important part of the New Year celebrations. Should we expect the Christmas Fair this year too? -The Christmas Fair was held in Batumi in 2014 and this year we will further refine and beautify it with New Year booths, where domestic products will be sold.
Exhibition-sales will be arranged on Era Square and free concert will be held on the stage there. The events will be designed for children, families, free concerts will be held evenings with participation of famous Georgian bands and ensembles. - Who will Sing at the New Year Concert? - Joni Sabashvili, the head of the Batumi Culture Center, that is the Batumi City Hall mu-
nicipal organization, says the New Year program is in the development process and currently the center is discussing who will sing at the general New Year concert that will be held traditionally on Era Square. “Georgian artists will be mainly represented at the grand concert and we promise the concert will be a magnificent one”, Joni Sabashvili said. The Ajara Tourism Department is also preparing New Year events. To stimulate the winter tourism, the department is conducting negotia-
tions with the private sector, hotels: “On December 25 discount season will be inaugurated in Ajara for both foreign and domestic tourists. Batumi hotels will offer 30%-50% discounts. The project involves about 30 hotels, including Batumi Dolphinarium, museums and so on.
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GEORGIAN TEA
November 30, 2015 #17
ajara business week
GOVERNMENT TO BOOST GEORGIAN TEA PRODUCTION Georgian Tea Program will Boost Domestic Tea Production, but Its Competitive Potential against Imports Remains Questionable
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Mikheil Chkuaseli: This is the money of taxpayers and we should receive maximum effect from such investments
Tengiz Svanidze: Georgian Tea Ratio on Domestic Market is 18%, Imported Tea Controls the Remaining Portion
We welcome the Georgian government is interested in the tea production sector, enlargement of raw materials basis, growth in harvest, because the development of all these directions will increase export revenues, however, It is important what mechanisms the government will apply to manage these funds. The main thing is to reach maximum of efficiency from these investments, Mikheil Chkuaseli, a director for GeoPlant company, a Gurieli tea manufacturer, said. “Major investments are required to rehabilitate tea plantations, increase harvest and improve tea leaves quality. Besides investments, knowledge and experience also required to thoroughly meet agro technical standards. We know the state budget has allocated certain funds for this direction. I have no ground to assert this program cannot be implemented. At the same time, we should remember this is the money of taxpayers and similar investments should bring maximum effect. In other equal conditions similar state investment may be negatively appraised, because this signifies direct intervention in the business sector, but this step is justified for growing the agriculture sector’s output, employment, developing the traditional field, increasing exports potential and
he Georgian Authorities has found impetus for promoting the Georgian tea production sector and drawn up the Georgian Tea state program that calls for rehabilitating the tea plantations. The state program consists of two components based on the cofinancing principle for rehabilitating both privately owned and leased tea plantations and creating modern primary tea processing enterprises. Only legal entities are welcome to the project, while cooperatives must possess the status of an agriculture cooperative. The cost of rehabilitation works on a hectare must not exceed 2 500 GEL (including VAT). If this cost exceeds 2 500 GEL per hectare, the co-financing amount will be determined on the ground of 2 500 GEL. The co-financing portion for legal entities makes up 60% of the total cost of the rehabilitation works (including VAT); while the co-financing portion for agriculture cooperatives makes up 80% of the total cost of the rehabilitation works (including VAT) and 50% of total cost of fertilizers to be applied in the first year after the additional pruning (including VAT). Meanwhile, the state-owned tea plantations rehabilitation conditions are as follows: the co-financing portion for legal entities makes up 70% of the total cost of the rehabilitation works (including VAT), while the co-financing portion for agriculture cooperatives makes up 90% of the total cost of the rehabilitation works (including VAT) and 50% of the total cost of fertilizers to be added in the first year after the additional pruning (including VAT). To maximally promote cooperatives, the involved cooperatives will receive free production machineries, inventories for primary tea processing. Technical assistance will be carried out for the program beneficiaries in terms of tea valuable processing technologies, marketing and organizing sales channels. The program budget for 2016 constitutes 3.5 million GEL. These funds are incorporated in the Georgian Agriculture Ministry budget bill for 2016.
Tengiz Svanidze, an executive director for the Tea Producers’ Association of Georgia, who has taken part in the Georgian Tea program development process, says the program was delayed, but it will bring positive results anyway. “Our association has taken part in the program development process. The government has taken into account many our recommendations, but some considerations were rejected. However, the process, in general, is positive, because the Georgian tea rehabilitation program is underway. I would like to add that the program was delayed a little, because the space of tea plantations has shrunk considerably. The rehabilitation process should have been launched after certification and inventory of tea plantations. However, certification and inventory process was not carried out and, therefore, we rely on the information of the Agriculture Ministry consulting centers. According to this information, Georgia owns 7-8 thousand hectares of tea plantations. I cannot say how reliable these figures are. In the first year, 2 000 hectares will be rehabilitated, the Agriculture Minister noted, but I doubt such space of tea plantations will be rehabilitated throughout 2016. Anyway, the main thing is that the program is underway”, Tengiz Svanidze said. The head of Tea Producers’ Association of Georgia doubts physical bodies who own 2-5 hectares of tea plantations are able to co-finance the program implementation, while legal entities, which own tea plantations and manufacture tea, are able to take part in the program implementation. „The issue is of rehabilitating the plantations and small funds will be directed to the output growth,
introduction of modern machineries and production of high-quality tea. Everything depends on the condition of tea plantations. The program will start in 2016 and if the plantation is to be pruned thoroughly, tea leaves will be picked in three years. If only a half part of the tea plantation is to be pruned, then tea leaves may be partly picked in 2017. Everything depends on the starting condition of tea plantations to be rehabilitated”, Tengiz Svanidze said. The Georgian tea ratio on the domestic market is only 18%, while imported tea controls the remaining market ratio. Anyway, the demand for Georgian tea is growing, he added. “We would receive disastrous outcomes without the tea plantation rehabilitation program, because tea leaves absent in practice. The program is very good, but delayed a little”, Svanidze said and stressed the importance of AD campaigns for the Georgian tea salvation. “Everybody realizes the importance of advertising campaigns. Today Georgian tea manufacturers produce absolutely good-quality tea, but we lack for advertising campaigns to grow perception of Georgia tea. Georgian enterprisers cannot afford taking these costs in most cases. Only major company Gurieli produces highquality tea and at the same time, conducts advertising campaigns. Other manufacturers also produce high-quality tea, but they lack for financial resources to hold advertising campaigns. They provide maximum efforts and somehow manage to sell a small part of their products, while a wider circle of consumers remains unattainable”, Svanidze noted.
currency inflows, drawing potential investors. Therefore, mechanisms for attaining all these goals acquire crucial importance in terms of efficiency. It is also important that the submitted project does not call for compensating and subsidizing the price of raw material. The existing variant includes a part of capital expenditures that are necessary for plantations. A co-participation of private enterprisers are necessary. We should also realize that the program implementation will outline the total space of productive tea plantations in the country, as well as the real results the country should expect from these plantations. I believe the Georgian Agriculture Ministry project is very interesting”, Chkuaseli said. The tea plantations rehabilitation project is the result of joint efforts of the government and the private sector, he added. “Many people assert that the Government should assume the responsibility for planting tea bush, for production and sales of tea. This is a Communist-era approach. The USSR has collapsed and will never resurrect. Therefore, we should perform this job ourselves, we should produce high-quality tea ourselves. We should also learn developing brands”, Chkuaseli noted.
Maradidi Didmanidze: We Should Find Mechanisms for Making Georgian Tea Competitive against Imports The Maradidi tea enterpriser says he has already rehabilitated his own plantations. Nevertheless, he positively appraises the program and plans to take part in it in the future if necessary. Maradidi Didmanidze thinks that The government should develop mechanisms to provide equal conditions for domestic and imported tea products and to ensure valuable competition. “We welcome the government has taken efficient steps in this direction. I have leased 13-hectare tea plantations from the Ajara Finance and Economy Ministry for a period of 36 years and I have rehabilitated these plantations through my own financial resources. Anyway, products sales remain the most challenge. I have stored my products and cannot sell them. The major challenge is that imported tea is cheaper compared my costs for domestically producing tea.
Importers do not pay any additional taxes and the government should develop mechanisms to make Georgian tea competitive in relation to imported tea. I have to spend more than 5 GEL on producing one kilogram of tea. Moreover, electricity and gas tariffs have also increased and naturally, the production costs will further rise”, Maradidi Didmanidze said. According to the Georgian Agriculture Ministry, in 1980s the space of tea plantations in Georgia exceeded 60 000 hectares and the country used to produce 100-120 thousand tons of tea a year. After the 1990s developments, the country lost the main exports market and the output started declining. As a result, Georgia’s one of the most developed industries ruined and a major part of employees lost job places.
The Georgian Tea rehabilitation state program’s main objective is to: a) maximally employ the potential of Georgia’s tea plantations and promote the tea production; b) rehabilitate the existing wild tea plantations (both private and state one); c) promote the production of high-quality tea, including bio tea; d) boost the exports potential of Georgian domestic tea; e) employ Georgian citizens and improve their social and economic conditions; f) create a modern primary tea processing enterprise.
November 30, 2015 #17
INTERVIEW ajara business week
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REHABILITATION WORKS UNDERWAY AT BATUMI BOTANICAL GARDEN
Founded in 1912 the worldwide-distinguished Batumi Botanical Garden is located on the Green Cape, near Batumi, on 112.5 hectares on 220 meters above the sea level. The complex includes all elements of the landscape that are characteristic to the Black Sea relief of Georgia. Tamaz Darchidze, the Batumi Botanical Garden director: - At this stage, we are carrying out several rehabilitation projects at the Botanical Garden. Pathways arrangement works will be finished in the near future. Later, the ground on the park territory will be stacked. The façade of the garden’s administration building is being also reconstructed. The existing damages and fractures are being repaired and insulated. A new toilet is being also built on the Green Cape with six sections. It will be adapted to disabled persons too. The garden’s floristic wealth is gathered in nine phytogeographic departments, due to origins of plants. The garden’s collection consists of 2037 units of woody plants, including 104 units of Caucasian origins, while 1540 taxa come from various floras of the world. The Batumi Botanical Garden is carrying out various programs for plants introduction and conservation, protecting the local flora. We also carry out works in the direction of decorative, gardening and floriculture, plants protection, fruits selection, eco education and tourism development. The garden personnel are engaged in various the-
oretical and experimental fundamental research projects.
We have arranged evergreen flowers square in the upper park of the garden, as well as the garden of Savannah – Sunny Night. The works were performed by Companion ltd. The works contractual value marked 81 598 GEL. - How many tourists visit the Batumi Botanical Garden? - The number of visitors of the Batumi Botanical Garden is growing, as we have refined and improved our services. Electric cars and several foreign-language guides serve our visitors. This year we have added one new electric car to the four ones. We have also hired a Turkish-language guide because of a plenty of Turkish-language visitors. The Garden administration is trying to create maximum comfort to visitors and renew the existing infrastructure.
Forexample, we have renewed information desks and signs on central routes. We are labeling plants in intense regime. The Green Cape’s famous panoramic views were also rehabilitated, because these places attract a majority number of our visitors. The infrastruc-
ture is maximally adapted to disabled bodies to broaden the inflow of visitors to our garden. In the central part of the upper park (the territory nearby the administrative building) we have already organized free wireless internet to make the garden’s environment more comfortable. Furniture and recreation zones will be reconstructed along the central routes. The department is also preparing tourism map-guidelines that will be handed over to each visitor free of charge. This project will be carried out by employing the garden’s advertising opportunities. Broadened meeting will be held with representatives of the tourism sector and travel agencies to better plan the tourism season. - In how many languages do you provide your services at the Botanical Garden? - A special excursion groups with electric cars and guides serve the garden visitors. An hour tour along the main route is carried out in Georgian, English, Russian, German languages. This year we have also introduced the Turkish language services. We also plan to introduce innovations in this direction and employ an audio guide system that is widely used in Europe successfully. This issue is being developed by the department for eco education, tourism and marketing.
We are also developing routes and suitable exponents that will be easily perceptible for visitors
In most cases, two or three visitors enter the Botanical Garden and they want to see and receive information about the garden without accompanying bodies. The audio guide system is designed to similar cases. - Is the Botanical Garden ticketing system also renovated? - The Garden’s ticketing system has been digitalized at all three cash desks at the entrance. This innovation will improve registration and control, alleviate the reception of visitor inflows and processing of statistical information. - Several days ago the Batumi Botanical garden hosted the fruits exhibition too. - Sure, we have held a traditional outdoor fruits exhibition and introduced about 30 varieties of citrus and 25 varieties of other fruits from the exotic and local flora of the Batumi Botanical Garden.
The exhibition attracted many tourists of our region and they liked the event very much. As part of the exhibition, we have also arranged tasting of fruits and final products of these fruits. At the exhibition, Participants of the Green Garden photo competition received certificates and various gifts, while the contest winner received a tablet computer.
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BUSINESS ajara business week
November 30, 2015 #17
FURNITURE HOUSE MARCO IN BATUMI
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arco is a private company that imports furniture from four Asian countries. The company appeared in the Georgian market in 2011 and currently, operates in four cities of Georgia – Tbilisi, Telavi, Kutaisi and Zestaponi. Teona Basiladze, the Marco Top Manager: - Our mission is to introduce top-quality furniture with special design to our clients and ensure a full package of services, including highlevel services, free transportation and assemblage services. Besides quality, Marco provides permanent efforts to keep affordable tariffs in the whole country and provide 2-5 year guarantee periods so as our customers be confident in their choice and remain content with our products and services. -What sort of products do you offer to your clients? We offer all sorts of furniture, as well as decorative lights, corridor accessories, mattresses, wicker furniture, kitchen and tables. We also trade in all sorts of bedroom furniture. - What is your mission and what are the prices?
Hence, our products are distinguished for quality. We have improved and refined the service level. A wide range of products, modern design, quality control, service after sales, consumeroriented strategy – all these factors create the Marco values.
Our Mission is to Ensure Comfort in Clients’ Everyday Life
- Our mission is to ensure comfort in our clients’ everyday life. We offer modern furniture to meet the most refined taste of our clients. We transmit confidence to our clients and we guarantee to make their lives more beautiful and comfortable, to implement their goals and dreams. We are building the world’s one of the best companies. Our achievements are based on the success and professionalism of our staff. Our objective is to occupy the leading positions in all countries, where we operate, to remain creditworthy and maintain stable development process. Our company is oriented on the consumer interests and needs. - What is the company’s top priority direction? - We follow consumer-oriented strategy.
We have renewed the evaluation system to precisely select the furniture and meet the consumer requirements and standards.
RUSSIA-TURKEY TRADE WAR - A CHANCE FOR GEORGIAN CITRUS FRUITS
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ussia wants to replace Turkish citruses by fruits from various countries, including Georgia. Georgian oranges and tangerines are already exported to the Russian market, but if the northern neighbor announces a trade war with Turkey, which has already begun, Georgian exports to Russia will likely increase. Moreover that a better citrus harvest is expected compared with the previous year. Chairman of the Parliamentary Committee on Agriculture Gela Samkharauli believes that this process will contribute to the sales growth in Georgia, however, it would be better if there was peace in the region and the events will be carried out according to plan. Samkharauli notes that sales growth of citruses will depend on the demand and the quality of our products. George Chkhartishvili, CEO of the Citrus Growers Association, also predicts sales growth. According to him, despite the risks, Georgian business must use this chance. As Chkhartishvili says, the citrus business is already quite risky. In his words, farmers themselves create problem, which impedes the realization as they do not want to sell the product at a lower price, as
a result, have to destroy the products. Nino Zambakhidze, Chairman of the Farmers’ Association, says that the business operators should make a decision on exports growth to Russia considering all the risks and take responsibility for themselves. In response to the attack on Su-24 by a fighter aircraft of the Turkish Air Force, Russia restricts imports of goods from this country. Suppliers already face problems at customs posts, clearance, as importers say, is actually stopped. Import from Turkey amounted to $ 1 billion only in ten months of this year- mainly tomatoes and citrus fruits. Minister of Agriculture of the RF Alexander Tkachev told the Russian “Kommersant” that these volumes could be replaced by products from Iran, Morocco, Israel, Azerbaijan, Uzbekistan. 2 50 thousand tons of citrus fruits, which are now coming from Turkey, the head of the Ministry of Agriculture offers to replace by products from South Africa, Morocco, China, Argentina, Israel, Abkhazia, Georgia.
INTERVIEW November 30, 2015 #17
ajara business week
EPHREM URUMASHVILI: BITCOIN IS LEAST RISKY CRYPTO CURRENCY
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The newest information reports that the UK Treasury has developed a research after the acts of terrorism in Paris. According to this research, a crypto currency is assessed as the least risky currency.
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he present-day finance system is actualizing the technology of crypto currencies. Fortunately, Georgia is zealously pursuing the development of this innovative technology and our country is expected to lighten up on the global map of new technologies thanks to the very BitCoin Mining. The last developments, acts of terrorism in Paris and intensified terrorism threats have necessitated making financial transactions safe and transparent. In these realities, BitCoin’s perspectives draw much interest, even more so Georgia is constructing a big processing datacenter. EPHREM URUMASHVILI, a representative of BitFury Group in Georgia, talks about this innovative technology. - Increased terrorism hazards may generate certain restrictions in relation to crypto currencies. Will these restrictions touch BitCoin too? - We should know estimations by leading economic editions and the economic world, in whole, to valuably assess the current situation around money mass turnover, in this case, the turnover of digital currency.
As to the structure of BitCoin and its vulnerable aspects in terms of terrorism financial support, about a month ago the US Justice Ministry organized a meeting in San Francisco, where BitCoin manufacturing companies agreed to share information on the digital currency to the due services. The absolute reality of the platform enables to fulfill this agreement. BitCoin is a crypto currency with a specific nomination or code. Moreover, the protocol of BitCoin, i.e. the process of making a BitCoin is absolutely open information. - Is it a relevant and grounded opinion that the internationally wanted criminals may take control over BitCoin as the system independent from any central finance institutions? - The global practice proves BitCoin is the least risky digital currency that is least applied in this sort of transactions, i.e. forbidden and criminal transactions. All operations that may be financed through BitCoins, including trade in drugs, trafficking and so on, will be immediately investigated by the FBI and other relevant services and all criminals will be identified.
Today, the persons interested in the Black Market maximally avoid using BitCoin in their transactions. They find electronic money the most convenient instrument. Unlike BitCoin, the electronic money has no nomination and so on. Therefore, BitCoin is the most transparent digital currency that is controlled by the due services. - What are the crypto currency perspec-
tives in Georgia? - We should consider BitCoin in the light of global importance. At the same time, we should also consider BitCoin in the light of Georgia’s nearest future. After the BitCoin processing datacenter in Gldani, Tbilisi, launches full-scale operation, our investors will learn that 90% of BitCoin’s full capacity is accumulated in Georgia. This signifies our country possesses cutting-edge technological systems and the datacenter modernized through modern technological systems. This is a shining signal to investors to consider Georgia as an interesting country, especially, in terms of digital currency production.
This innovation surpasses the potential of 100 plants. This signifies Georgia owns an entrance ticket to the future on the global map. This fact is the same success as drawing any other major investment.
modeled place in Georgia, like a silicon field, where enterprises will enter from the nearest markets to finish their technological process in Georgia. I would like to refer to several facts proving the BitCoin’s global acknowledgment. Namely, the European Court has recognized BitCoin as a currency. Moreover, Fidelity, the world’s biggest foundation with 1.5 trillion USD assets, has incorporated BitCoin technologies in making charity donations. As a result, the Fidelity’s BitCoin payment database currently registers more than 26 000 users. At the same time, outstanding payment companies, including American Express, are investors in this business. All these facts prove that BitCoin becomes the most requested and popular payment mechanism and we should be proud in the near future 90% of BitCoin mining will be carried out in our country, Georgia.
The investors of our company aim to create a
ICONIC BATUMI “OCTOPUS” CAFE GIVEN NEW LEASE OF LIFE An iconic building in Georgia’s seaside city Batumi will be restored to its former glory after city authorities decided to include the colourful Soviet-built former cafe in their beach area development plan. The former Cafe Fantasia – known among the locals as The Octopus due to its original shape – will be returned to its original function as a cafe, albeit in new surroundings planned in the Batumi Boulevard Development Concept, local channel Ajara TV reported on Wednesday. Built in 1975, the cafe was an attractive local spot until 2000 when the cafe was shut down and abandoned. Neglect of the building resulted in damage to the building’s structure and deterioration of its surrounding area. Construction works by the nearby Hilton Batumi Hotel to redevelop the area around the former cafe raised fears among locals that the unique building could be demolished to make space for other purposes. In November last year local activists launched an online petition to safeguard the Soviet-era building, while a group of citizen activists protested against its possible destruction by wrap-
ping the building in tape and leaving their fingerprints under the slogan I Defend the Octopus. A follow-up statement by Hilton Hotel management in December said dismantling the construction was not in their plans however the building’s fate still hung in the balance as it was not regarded as a cultural heritage monument. There were also doubts about the technical possibility of restoring the neglected construction before its inclusion in the Batumi Boulevard Development Plan after an expert study showed the building could be safely restored on the historic spot. The wish of the locals to see the object preserved was enough for authorities and related offices to review the possibility and carry out a technical feasibility study,” Adjara Cultural Heritage Protection Agency director Miranda Charkviani told Ajara TV. The new plan for the former cafe included creating new spaces around and beneath it, while also transforming the building back into a cafe. It will function as a cafe with a pool built around [it] and a square set up next to the pool. Beneath the location an underground space will
be created for exhibiting highlights of Adjara,” the region’s Supreme Council member Akaki Dzneladze told reporters. Several local community members said they still had doubts about the final fate of the building, claiming only the status of cultural heritage monument would ensure its long-term safety but also acknowledging the effects of their efforts so far in ensuring the building was saved from imminent demolishing. Only by having a formal status guaranteeing its preservation would mean [the building] is saved … It was thanks to efforts of Batumi residents as well as many people unrelated to Batumi – those who gathered to protest last year – that the authorities heard their voices,” Batumi Community member Shota Gujabidze said while commented on the struggle to restore the cafe building. The Cafe Fantasia was built in 1975 by acclaimed Georgian architect Giorgi Chakhava – author of the internationally recognised former building of the Georgian Ministry of Automobile Roads in Tbilisi - and Meritorious Painter of Georgia Professor Zurab Kapanadze of the Tbilisi State Academy of Arts.
The cafe became a popular spot for Batumi locals and tourists as a place for buying coffee, ice cream and drinks in the boulevard. But it was the construction and artistic qualities of the building that made it unique. The structure of the building was created using special rods bent into complex shapes by hand, before the shapes were filled with a purposely-developed liquid glass material. The outer layer of the cafe was adorned with shapes and mosaic illustrations of sea animals and seaside scenes, featuring a uniquely colourful palette in the era of functional and monochrome Soviet architectural style.
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MARKET ajara business week
November 30, 2015 #17
November 30, 2015 #17
HEALTHCARE ajara business week
WHAT ARE GENERICS – HEALTH MINISTER DAVID SERGEENKO EXPLAINS
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he Ministry of Health plans to implement a new standard in controlling the quality of drugs in Georgia. Consequently, the Ministry considers expanding Generic segment as a prerequisite, for increasing affordability on drugs and encouraging local production. To successfully implement this it is important to set the system of quality control on drugs properly, on which The Ministry of Health has started working intensively, the real results will be known to public soon. A generic drug is identical–or bioequivalent–to a brand name drug in dosage form, safety, strength, route of administration, quality, performance characteristics and intended use. The vast majority of prescription drugs sold in the U.S. – 86 percent –are generic and the recalls keep coming. As for the Georgia, 70 percent of drugs sold on the pharmaceutical market are generic drugs. The Ministry has announced its intention to introduce additional Generic drugs, due to increased prices of medicines. What are generic drugs? The Minister of Health David Sergeenko explains:
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“I am obliged to explain to our people, what Generic drugs really mean. Generic drugs’ initial active ingredient is a brand” When the drug is developed and manufactured, its producer enjoys the first 15 years of copyright. Accordingly the price of brand drugs is usually very high”. “I have repeatedly stated that I welcome expanding affordability on generic drugs, because it is a cost-effective step for the country. We also care about creating properly working control system, which will protect us from lowquality drugs”. Recently the board Chairman of Global Alliance and Bernard Kouchner noted that Generics need to be offered to public at affordable prices. He welcomed the initiative of encouraging local production and expanding the Generic segment on Georgia’s pharmaceutical market.
2016 BUDGET: ADDRESSING HEALTH MINISTERS AT #EAP INFORMAL DIALOGUE: DISEASES HEALTHCARE IN FOCUS DO NOT RECOGNISE BORDERS OF SOCIALORIENTED BUDGET
The Government of Georgia believes next year’s budget has a clear “social orientation” that focuses on the social needs of citizens. On a Governmental meeting members of the Government discussed how to divide the 2016 state budget – and they decided to spend money on social sectors that would greatly benefit the Georgian population. Increasing the amount of money allocated to Georgia’s healthcare and education systems was part of the social-oriented budget, which also focused on providing better assistance for refugees.
The sixth informal meeting of Eastern Partnership (EaP) countries, bringing together European Union (EU) and regional high representations, has concluded in Georgia’s capital Tbilisi Speaking about health issues the EU top official, Johannes Hahn stressed “access for all to high quality health care was proven to contribute not only to individual people’s health but also to economic growth of countries.”
We are faced with complex and common challenges when it comes to cross-border threats to health. We do have a joint health
security interest especially in the context of increased travel and trade flows which bring great benefits but also enhance the risk of cross-border spread of communicable diseases. Therefore, investing in resilient and sustainable health systems and promoting public health is essential for the development of human capital. It also fosters more prosperous societies in our
countries,” he said. It is crucial that we focus our collaborative efforts to reinforce prevention, control and our preparedness to respond rapidly and effectively to common health threats.” Hahn added €41 million had been spent by the EU on more than 40 projects between 2007 and 2013 to address local health issues. Addressing the same health topics Georgia’s Health Minister Davit Sergeenko said Georgia’s health reforms “have been positively assessed by Georgia’s partners.” The Minister stressed that his ministry was working on an action plan on how to make over-thecounter medicines more available for the public. He added the Government covered all the cost medicines at hospitals and other health institutions.
PM: In order to implement the Universal Healthcare Program without any obstacles, it was decided 570 mln GEL will be allocated from next year’s state budget “If in 2012 the expenses of Georgia’s Ministry of Health amounted to 1.8 billion GEL, next year it will exceed 3 billion GEL, which means it almost doubled,” Irakli Garibashvili added. Next year 85 million GEL will be allocated to the Ministry of Internally Displaced Persons from the Occupied Territories, Accommodation and Refugees of Georgia. This will be a 240 percent increase on the 25 million GEL allocated to the Ministry in 2012.
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PUBLICITY ajara business week
November 30, 2015 #17
GUIDE
November 30, 2015 #17
ajara business week
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5 HISTORIC FIGURES WHO HAVE VISITED BATUMI
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ince its founding, Batumi has often attracted foreign visitors and people of different professions, interests and social status visited it at different times. Among many such visitors, there are people of special interest. Source: goBatumi.com Since its founding, Batumi has often attracted foreign visitors and people of different professions, interests and social status visited it at different times. Among many such visitors, there are people of special interest.
Here are 5 historic figures who have visited Batumi:
A well-known Russian poet lived in Batumi from December 1924 to January 1925, in a house located on Melikishvili Street. During these two months in the city, Yesenin, managed to fall in love with two girls - Shagane Talyan, whom he dedicated a poem “Shagane, oh my Shagane!” and someone known as Kabtsova, whom he jokingly introduced to his friends as his new wife . Evenings spent with his new friends in Batumi, had a very positive influenced on his creative work. A poem “Anna Snegina” and dozens of others were written here, including those dedicated to the city.
John Steinbeck In the summer of 1947, John Steinbeck, an American writer along with the legendary war photographer Robert Capa began their journey to the Soviet Union. In his “Russian Diary” Steinbeck describes Georgia with particular admiration and pays great attention to Batumi with its beautiful landscapes, tropical climate and natural diversity. Many health resorts were located in Batumi at that time and citizens of the Soviet republics had to work really hard to get a chance of spending their holidays there. “We have come to believe that the majority of Russians hope to go to Georgia, and not to heaven when they die, since Georgia has a wonderful climate, rich soil and a small private ocean”- he wrote.
Nobel Brothers In 1873, the founders of “Branobel” company went to the Caucasus in search of cheap resources. Already in 1875, in Baku, they established Nobel Brothers Oil Extracting Partnership, which then became the largest company of the Russian Empire. Baku-Tbilisi-Batumi was chosen as a transit route for oil transportation which has contributed significantly to the establishment of the “free port” regime in the city of Batumi. Nobel brothers have made a noticeable contribution to the construction of the Baku-Batumi pipeline, railway and Batumi Oil Terminal and were the first to transport oil from Batumi to Europe. In 2007, the house that once belonged to the Nobel brothers was transformed into a Technological Museum of Nobel Brothers, where in addition to the Nobels’ achievements, one can also get acquainted with the accomplishments of the Rothschilds and Mantashev, tea and tobacco extension process in Adjara and development of printing industry in Batumi.
Mikhail Bulgakov The famous Russian writer visited Batumi twice, first in 1921, when he came to Caucasus in search of more favorable conditions for his creative life. Bulgakov had even planned migration from Batumi to Turkey, but returned to his homeland in the end. The second visit took place in 1928 when Bulgakov arrived in Batumi with his wife, visited Green Cape, and decided to write his “Master and Margarita” novel. He is the author of a play called “Batumi”, which was written for the 60th anniversary of Stalin.
Sergei Yesenin
Joseph Stalin Stalin arrived in Batumi in late autumn of 1901, on a mission of the Tbilisi Committee of the Russian Social Democratic Workers’ Party. He lived at the railway station for a long time, and actually had no permanent place of residence in Batumi, because he was constantly under police surveillance as a suspicious character. While in Batumi, Stalin was actively involved in revolutionary activity, he promulgated workers’ protests, held a hand in the creation of illegal topography,etc. In the end, Stalin was arrested by the police and placed in Batumi prison. The archives still keep photos of Stalin during his questioning.
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 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) 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
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 30, 2015 #17