AJARA BUSINESS WEEK #23

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BUSINESS WEEK January 25, 2016 #23

January 25, 2016, Issue 23

AJARA1

Partner News Agency ajara business week WWW.ABW.GE

BE INFORMED, DO BUSINESS IN AJARA

NARESH TELGU:

The Shuakhevi HPP is One of the Fastest Developed Hydro Projects in the World and Adheres to International Standards of Quality

Pg. 9

PROFITABLE BUSINESS OR SOURCE OF MISFORTUNE

MAMUKA BERDZENISHVILI: OWNERS OF GUESTHOUSES TO PASS TRAINING COURSES IN 2016

Pg. 4

AJARA TOURISM DEPARTMENT INTRODUCES MAMUKA Pg. 3 “RECOMMENDED BY TOURISM DEPARTMENT” AKHALADZE: PROJECT TO HOTEL MANAGERS “MEMORANDUM Pg. 3 GEORGIA LAUNCHES WITH OTHER FLOUR EXPORTS TO MARITIME IRAQ ADMINISTRATIONS WAS SUCCESS IN 2015” Pg. 5

Batumi based mill complexes have started flour exports to Iraq, the chamber of commerce and industry of Ajara reports.

LLC Ortsva has completed negotiations that lasted for several months with the support of the chamber of commerce. As a result, the company signed agreement with several Iraqi importers and the company will export about 1000 tons of flour to Iraq. The company has already sent several consignments to Iraq. Because of the increased workload, the company will add the third shift, employ new workers. As a result, the Ajara Region’s exports volume has already increased.

Pg. 2

BATUMI TO HOST FIRST INTERNATIONAL EXHIBITION OF MEDICAL TOURISM AND EQUIPMENT Pg. 8

CHAKVI AGRICULTURAL SERVICE CENTER OFFICIALLY Pg. 2 OPENED

MAIN EVENTS

2 HEADLINES ROOMS HOTEL BATUMI MAY OPEN IN BATUMI Rooms Hotel Batumi may open instead of Crowne Plaza in Batumi. Ajara Group provides active job in this direction and a final decision will be taken by late March.

The brand of Rooms has turned out a very successful project for Ajara Group. Therefore, the company is working on expanding the network of Rooms. That’s why the company may change plans and unveil Rooms Hotel instead of Crowne Plaza.

The hotel will receive guests in late June. Under the project, the hotel will include 140 suites, but along with a change in the brand, the quantity of suites may be also revised. The project’s investment value is about 26 million USD. Besides suites, the project also calls for organizing a conference hall, a restaurant, a spa and a casino. It should be also noted initially Ajara Group planned to unveil Holiday Inn hotel in Batumi. The company already owns the due franchise, but later the company revised the plans.

YANAIR AIRLINE TO INCREASE FREQUENCY OF FLIGHTS BETWEEN GEORGIA AND UKRAINE The frequency of flights between Georgian and Ukrainian cities will increase, YanAir director general Sergey Agafonov said concerning the 2016 plans.

YanAir performs flights from Kyiv to Tbilisi and Batumi. The airline performs two flights from Kyiv to Tbilisi in summer period, while one flight is added in the winter period.

As to the Batumi direction, the airline performs two flights a week to Batumi.

GEORGIA LAUNCHES FLOUR EXPORTS TO IRAQ Batumi based mill complexes have started flour exports to Iraq, the chamber of commerce and industry of Ajara reports.

LLC Ortsva has completed negotiations that lasted for several months with the support of the chamber of commerce. As a result, the company signed agreement with several Iraqi importers and the company will export about 1000 tons of flour to Iraq. The company has already sent several consignments to Iraq. Because of the increased workload, the company will add the third shift, employ new workers. As a result, the Ajara Region’s exports volume has already increased.

At this stage, LLC Urekhi and other mill complexes are conducting negotiations on exports of flour to Iraq.

Ortsva started flour export in Iraq Mill factory Ortsva, operating in Batumi, has started flour export in Iraq.

According to Chamber of Commerce of Adjara, company Ortsva finished negotiations of several months with the assistance of Chamber and signed a contract with a partner from Iraq.

As of the achieved agreement, export of more than 1000 t flour is planned in a month.

Several stocks are already sent in Iraq. As a result the factory moves in 3-shift working mode.

Now company Urekhi and other mill plants holds negotiations with partners from Iraq.

January 25, 2016 #23

ajara business week

THE GOVERNMENT CHAKVI AGRICULTURAL WORKS ON THE RURAL SERVICE CENTER DEVELOPMENT STRATEGY OFFICIALLY OPENED

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eeting of the Governmental Council of the Rural Development Strategy was held at Sheraton Batumi Hotel. The council has been functioning for a several months at Ajara AR Government, focusing on strategy content with close cooperation and support of the United Nations Development Program.

The meeting aimed at summarizing the implemented activities and decision making on following issues: Joint vision of rural development; Identify priorities, in line with national and municipal priorities; Identify objectives of each priority; naming appropriate measures for the purpose of grouping results.

The document includes a strategy to implement the necessary coordination, evaluation and monitoring mechanisms; Also, institutions, the existence of which will contribute to the implementation of the strategy. Part of the strategy will be the implementation of the action plan. Meetings have been held with various groups of the society to prepare individual parts of the strategy.

UNDP Invited Expert Ciarán Gannon held a presentation at the workshop.

The workshop will increase rural development model and awareness about pilot activities and ENPARD future programs.

MARITIME ACADEMY TO HOLD PUBLIC LECTURES FOR SERVICEMEN

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EPL Batumi State Maritime Academy will hold special course of public lectures for Georgian soldiers as part of the project of the Georgian Universities for the Georgian Armed Forces”. Professors and lecturers, sailors will read lectures to servicemen for a year on such maritime issues as Maritime Geography – Naval Warfare in the XX Century, COLREG – Preventing Collision in the Sea, and ISPS – Security in the Georgian Waters MARPOL”.

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hairman of Ajara AR Government Archil Khabadze, Minister of Agriculture of Georgia Otar Daneli and Minister of Agriculture of Ajara Zaur Putkaradze officially opened Ltd ‘Mekanizatori’ Service Center in Chakvi, Kobuleti Municipality.

Ltd ‘Mekanizatori’ owns 13 service centers in Georgia providing agro operation services.

Construction of the service center in Chakvi has been just completed on 7,213,4 sq.m area, where parking was arranged for 48 tractors, aggregates and spare parts warehouses, Boxes, laundry, vulcanization and turning, also bathrooms and shower rooms for the staff. An administrative building will be 2-storyed. Shop, Bank and office will be placed on the first floor. A conference hall, dining room and summer terrace will be located on a second floor. The territory also provides petrol and relaxation zones.

28 tractors and 85 aggregates are mobilized in the service center now, which will serve for Keda, Kobuleti, Shuakhevi and Khelvachauri municipalities, as well as territories joined to Batumi.

AJARA FINANCE AND ECONOMY MINISTRY SELLS 154 PROPERTIES IN 2015

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n 2014 the Ajara Finance and Economy Ministry privatized 14 real estates by term auctions and the total privatization value marked 3 008 075 GEL and 6 648 350 USD, i.e. 18 964 115 GEL. Moreover, in 2015 the Ministry privatized 23 real and movable properties by non-term auctions and their total privatization value marked 1 087 132 GEL and 322 156 USD, that is 1 860 310 GEL. The Ministry privatized 117 real and movable properties by direct sales, including 112 apartments. The total privatization value marked 77 369 GEL.

Similar lectures will assist Georgian soldiers in deepening knowledge in the maritime issues, representatives of the Maritime Academy noted.

The privatization price of 154 real and movable properties marked 4 172 576 GEL and 6 970 506 USD, that is 20 901 130 GEL.

The project is carried out by the initiative of the Georgian Defense Ministry. Various universities of Georgia are taking part in the project implementation, including the Batumi Maritime Academy.

The project calls for developing fruitful cooperation between the Georgian Defense Ministry and the educational institutions.

In 2015 the annual unclassified capital incomes plan marked 10 374 000 GEL, while the Ajara real budget revenues constituted 16 318 600 GEL. In 2015 the Ajara Finance and Economy Ministry leased 36 real estates and the annual leasing fee marked 10 340 GEL and 48 363 USD, that is 126 420 GEL.

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

FINANCE MINISTER MEETS WITH FINANCIAL DIRECTOR OF LLC ADJARISTSQALI GEORGIA

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eorgian Finance Minister Nodar Khaduri has met with Chandasheqkhar Damle, the financial director for LLC AdjarisTsqali Georgia.

At the meeting, the businessman updated the Georgian Finance Minister on the construction of Shuakhevi HPP, one of the major hydro power plants in Georgia. The company financial manager thanked the Georgian government and personally the Finance Minister for support.

The Georgian Government will back the implementation of strategic energy projects in the future, the Georgian Finance Minster noted and expressed readiness to personally see the construction works. The Finance Minister also updated the financial director on the coming taxation system reforms, namely, on introduction of the Estonian model. The new system is to increase the interest of new potential investors in Georgia.

AdjarisTsqali Georgia is a joint company that was established by Indian company Tata Power, Norwegian company Clean Energy and the International Finance Corporation (IFC).

“EBRD” TO ALLOCATE A SOVEREIGN LOAN OF EUR 2,2 MILLION FOR A WASTEWATER TREATMENT PLANT PROJECT IN KOBULETI The European Bank for Reconstruction and Development (the “EBRD” or the “Bank”) will allocate a sovereign loan of EUR 2,2 million for a wastewater treatment plant project in Kobuleti.

Respectively, the agreement is signed between Nodar Khaduri and Bruno Balvanera.

The sum should be spent on funding additional measures for full operation of Kobuleti sewage wastewater treatment plant.

The project of Kobuleti wastewater treatment plant envisages construction of Kobuleti wastewater treatment facility. To note, financial resource of 1,5 million EUR allocated by EBRD should be spent on this direction, while a grant of 1,814 million EUR – by Dutch government (represented by ORET) is envisaged for the building design, device acquisition and installation.

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

January 25, 2016 #23

TOURISM ajara business week

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OWNERS OF GUESTHOUSES TO PASS TRAINING COURSES IN 2016

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he tourism products development agency plans to launch new projects. The Ajara Tourism Department renamed the agency in 2015.

Now the agency is oriented on developing the tourism potential in rural and inland areas.

“Our objective is to develop inland tourism potential, besides the coastline tourism. The agency re-branding was carried out with the aim to promote this unemployed potential and to commercialize this direction, to popularize it. One of the directions of the agency is to develop new routes and tourism products in this respect”, Mamuka Berdzenishvili, the head

of the Ajara Tourism and Resorts Department, noted.

This year the agency plans to develop new valuable tourism routes in all municipalities. New services will be also embodied in these routes.

Guesthouses and local dishes will be involved in these routes, visitors will be enabled to see local handcrafted works and other services. The agency also plans to create a database of Ajara-based guesthouses and to publish this information with photo materials on the department’s official website.

In 2015 the agency marked two new routes and this process implies a partly marking of the Batumi-Mirveti-Batumi bicycle route and the Machakhela historical-culture route. Moreover,

the agency has developed tourism packages and routes for the recently inaugurated Goderdzi ski resort. “Our objective is to develop diverse tourism routes in highland municipalities, to diversity tourism products, to create special packages and tours and offer all these products to Batumi visitors”, Tinatin Zoidze, the head of the Tourism Products Development Agency, noted.

To improve the quality of services, the tourism products development agency plans to hold trainings for guesthouse owners. During the weeklong trainings the participants will receive information on the established international standards in hosting services, as well as information booklets with description of main standards of services. Moreover, the agency will also train guides for specific routes. The trainings will include both theoretical and practical aspects.

Furthermore, to popularize the region, the Agency will organize festivals, including summer festivals, birds international festival and au-

tumn festival, as well as info and press tours.

The tourism information center will be also renovated. A new information center will open in addition to eight ones. The new facility will be located in the Batumi Central building.

Tourism products will be also renewed at the information centers (routes, maps, tours, booklets, thematic souvenirs).

“This year we will implement many interesting projects, in which representatives of hotels, food outlets and tourism-related sectors will be involved. Special offers and promo campaigns will be held for local tourism agencies to promote our coordinated operation and to ensure the region’s popularization”, Tinatin Zoidze, the head of the tourism products development agency, said.

AJARA TOURISM DEPARTMENT INTRODUCES “RECOMMENDED BY TOURISM DEPARTMENT” PROJECT TO HOTEL MANAGERS

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he tourism and resorts department of the Autonomous Republic of Ajara has introduced a new project of “Recommended by the Tourism Department” to hotel manages. At the meeting the parties discussed the project objectives, participation mechanisms and expected benefits and results.

The project is to upgrade the service quality in the Ajara Region, as well as to establish international standards of safety and technique. The project is optional and applications should be submitted to the tourism department or filled out on the www.recomend.ge website until March 1, Mamuka Berdzenishvili, the head of the Ajara Tourism and Resorts Department, told the meeting participants.

The applications will be sorted and selected accommodation and food companies will pass special technical examination based on the world recognized 21 principles of HotRec, Hot Star union. The successful companies will receive a special status: “Recommended by the Tourism Department”. This status will become a certain guarantee of reliability and quality for tourists.

The Ajara Tourism Department will introduce its special website www.recomend.ge at the end of January to publish all information around the tourism department’s new projects, as well as applications forms. The department will hold the project presentations for hotels and food outlets until the end of January.

It should be noted that about 15 managers of the region’s leading hotels have attended the presentation.

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GAMBLING BUSINESS ajara business week

January 25, 2016 #23

PROFITABLE BUSINESS OR SOURCE OF MISFORTUNE Considerations on Banning Gambling Games and Bookmaking Clubs

„I will fundamentally study the issue with online casinos. According to our preliminary report, this business is very malicious, and very strict regulations should be introduced. I have to just determine how to execute these strict regulations in this business. If I find that similar regulations cannot be executed in real life, we may apply other measures. At this stage, we will fundamentally explore this issue to prevent the damage that is inflicted to our society”, Georgian Prime Minister Giorgi Kvirikashvili told the parliament’s sitting. As to physical casinos, the Government will determine whether any strict regulations should be introduced. Anyway, physical casinos should not be closed, because it is an important source of revenues for the hotel and tourism industries.

Should we expect that the closure of casinos or any restrictions will narrow the tourism potential of Batumi, Georgia’s tourism center? Owners of online gambling games and casinos assert that similar decisions should be based on public inquiries.

Closure of online casinos will damage the interests of the employees and their family members, the owners assure. AdjaraBet director Paata Qutelia says their casino employs 160 persons, and any restrictions will close a source of incomes to the casino staff.

Satila Erilmaz, a director for the casino at Intourist hotel, says the Authorities should care for the state revenues and the employed persons.

„Our casino employs 200 persons, but if the law changes, casinos will also close.

Our casino has been operating for 6 years and we have spent 4 million GEL on its organization. We have no idea what sort of sanctions may be imposed on us and what kind of laws may be adopted. Restrictions, naturally, will result in firing employees”.

Currently, 10 casinos operate in Ajara. Additional 8 casinos will open by 2020, the Finance and Economy Minister of Ajara reports. Ajara Deputy Finance Minister Besik Bolqvadze noted, more

than 0.5 million persons visited the local casinos in 2014, including 80% are foreign residents.

“Casino business is an important segment of the gambling business and this sector brings essential fiscal, employment, investment, tourism development and general economic effects to the region. Namely, casino is one of the most profitable components of the hotel business as a main factor for drawing investments to the region’s tourism sector. In the same year the gambling business transferred 13.5 million GEL to the Batumi municipal budget, including 70% of these transfers were mobilized from casinos.

In Georgia, including in Ajara, the gambling business enjoys the following advantages: preferential legislative norms for the gambling business, lesser regulations and restrictions in the business, gambling business restrictions in the neighboring countries, liberal visa regime, safe and attractive investment environment, special preferences for the hotels with at least 100 suites in Batumi, Kobuleti and Khelvachauri, namely, they are exempted from a license fee for organizing a casino for a period of 10 years. It should be also noted the gambling business is exempted from VAT”, Bolqvadze said.

Batumi-based casinos pay 15.2 million GEL to the Batumi municipal budget, Batumi City Hall reports.

Young People lose huge funds at casinos and they are led to fatal outcomes, the Ajara Supreme Council MP Murman Dumbadze noted.

“This is a catastrophe in the city, in practice. Closure does not imply restriction of freedom or expulsion of someone. We will set legislative frames to them. The Authorities should take active steps to regulate the casino business. Unregulated sector has led many young people to bankruptcy. We are emotional nation and frequently this character leads us to fatal outcomes.

Revenues from the gambling business is entirely immoral and sinful, revenues from misfortune of

our compatriots, who have lost their properties.

There is no casino in the US State of Texas, even in the capital city of Boston, because the local population thinks their state budget should not be replenished by immoral revenues. The do not need revenues from ruined families. They do not need this business and money from this business.

Money earned by temptation of others cannot bring welfare. Temptation is banned in religion and in all other affairs.

There are gambling clubs everywhere in Batumi and this is temptation of our people. Even bookmaking clubs and gambling machines operate near educational institutions. Pupils enter the store to buy rolls and slot machines stand nearby. And these pupils are tempted, naturally.

It is recognized truth that low-income people spend more in gambling games and lose more.

Naturally, this problem should be resolved stage by stage. Revolutionary measures are unacceptable. Namely, at the first stage, the government should restrict issuing licenses, after a certain while the government should increase duties and in several years they should be completely closed.

For the first time, the Hotel+Casino platform was introduced by Huston hotel to save the business. Later the same practice was introduced in the Baden mineral water resort and in this way this practice was spread worldwide. Therefore, this government should resolve the problem stage by stage and apply transitional variants. Hotels expenditures and revenue should be calculated, entrance restrictions should be set to a certain category of visitors”, Dumbadze noted.

A major part of the population thinks that Batumi based casinos bring catastrophic results and they urge the government to take decisive steps to tackle the problem. The Authorities should take into account our position and take useful decisions for our country, local residents assert.

“If they adopt this law I personally will

adore this new government. This problem disturbs me too, because the temptation is huge, because I am seeking a job place in vain and it is not ruled out that I be involved in the gambling games too. By the way, almost all my friends play gambling games. The final result is the same – bankruptcy”, local resident Giorgi Diasamidze said.

January 25, 2016 #23

INTERVIEW ajara business week

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MAMUKA AKHALADZE: “MEMORANDUM WITH OTHER MARITIME ADMINISTRATIONS WAS SUCCESS IN 2015” “I Urge All Sailors to Carefully Sign Contract Agreements to Avoid Shady Deals”.

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he Maritime Transport Agency is a state body that is to ensure maritime security and to keep transportation in order. The objective of the agency is to establish international standards and simplified services for the ships that sail under Georgian maritime flag and that enter the Georgian waters.

The year of 2015 has turned into a historical period for the maritime transport agency, the agency head Mamuka Akhaladze said. Namely, the agency laid a foundation of a new administrative building and the construction works are expected to end in July 2016. The project will employ 40-50 persons.

“The year of 2015 was fruitful and successful for LEPL Maritime Transport Agency. The agency has completed all projects and campaigns in accordance with the annual action plan.

Moreover, the signature of the mutual understanding memorandum with maritime administrations of various countries was an event of crucial importance in 2015 (South Korea, France, Turkey, the Isle of Man). These agreements ensure mutual recognition of sailors’ certificates.

These agreements enable Georgian sailors to get employed at the ships that sail under these banners and to earn additional revenues for their families and the state budget. It is also worth noting sailors mainly take salaries in USD and EUR and these funds will be directed to Georgia as a foreign currency”, Akhaladze noted.

In February 2015, the agency hosted and successfully passed the audit by the international maritime organization. The audit was carried out by a group of four experts of the international maritime organization. The audit lasted for a year, the deepwater captain said.

“The audit was to examine the compliancy of Georgia with the requirements of international conventions. The similar audit was conducted in Georgia for the first time. Conducting this audit is a serious advancement for the image of the maritime administration of Georgia and for upgrading the quality of services.

The last year the maritime transport agency signed a mutual understanding memorandum with the EU maritime safety agency (EMSA).

Under the agreement, the EU provides free of charge services as part of the CleanSeaNet satellite supervision system that provides continuous supervision over the sea environment pollution.

Application of this system considerably grows the quality of supervision over the sea environment pollution.

This EMSA assistance is of vital importance for establishing the European experience in Georgia, as well as for fulfilling the EU association agreement”, Akhaladze noted.

Mamuka Akhaladze has also attended the 10th Golden Anchor International Maritime

Achievement Awards Ceremony, where 15 awards were transmitted in 8 categories. Deepwater Captain Mamuka Akhaladze handed over one of the awards symbolically to SeaPetrol company.

„We have taken first steps for discussing perspectives of signing a memorandum on mutual recognition of sailors’ certificates. The Turkish part showed readiness to sign the memorandum. We also met with Captain Alev Tunch, a representative of the managing board of the association of ship-owners of Turkey. At the meeting the parties discussed perspectives for drawing ships under Georgian maritime flags and future employment of Georgian sailors.

After Georgia and Turkey sign this memorandum, Georgian sailors will be employed on the ships sailing under Turkish maritime flags.

This ceremony was an important international event that unites high-ranking offices of the world maritime every year.

Finally, I would like to outline the main detail.

The agency hotline has been functioning for three years: 577 22 16 23. Any sailor is able to dial this number for 24 hours and receive qualified, legal and other consultations. We also suggest sailors to visit us and receive our qualified legal consultations before they sign contract agreements with foreign ship-owners. If they had applied to us, we could identify that those ships had been excluded from the registry of maritime flags. We have access to any information on any international shipowners and ships. I urge all sailors to carefully sign contract agreements to avoid shady deals”.

DOING BUSINESS

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ajara business week

Georgia Should Discover Dubai, as a Place for Doing Business!

Natia Kereselidze,

Evergreen Businessmen Services Representative in Georgia

January 25, 2016 #23

Perhaps it will be difficult for me to put an article all information about Dubai’s advantages,which makes it an attractive environment for doing business. The aim of this article is, to show Georgian people this very successful place in the world , for doing business.Power of Dubai’s , and give them chance to have member of this amazing place , where word connect each other. This is for sme of Georgia, to use this opportunities.

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ubai is part of the United Arab Emirates (UAE) which is a safe, politically stable country, with a good education system, up-to-date healthcare facilities and modern infrastructure. Read any article about Dubai and you’re almost certain to see the words ‘ambitious’, ‘record-breaking’ and ‘staggering’, and with famous attractions such as the Burj Khalifa, the Burj Al Arab, The Palm Jumeirah and the world’s largest shopping malls, the city has become a must see destination for the 21st century. Dubai’s impressive growth has not gone un-noticed, and each year thousands of people move to the city to claim a piece of the action. The current population is made up of over 2.2 million people from more than 210 nationalities, all creating a dynamic, cosmopolitan vibe that can be felt running throughout the city. The past 10 years have witnessed incredible growth throughout all sectors of the Dubai economy. The emirate’s government is constantly working to improve its commercial transparency and introduce dynamic regulations that aid the formation of small and medium enterprises (SMEs) and have the ability to react to global financial challenges.

Dubai’s economy is no longer reliant on oil, but is more diversified, relying heavily on trade, services and finance sectors With its central geographic location between Asian and European markets, Dubai has worked hard to establish itself as an integral part of the global trade mechanism. Its central location has also allowed Dubai to become a popular and accessible tourist destination

Why Choose Dubai As An Investment Location?

Dubai, with its ancient commercial and seafaring traditions, has long been recognized as the

Middle East region’s leading trading hub and has emerged as its key re-export center. In more recent years, the Emirate has become a major venue for a number of growing, profitable industries and activities: • Meetings, conferences, exhibitions • Tourism • Corporate regional headquarters • Regional transport, distribution and logistics center • Banking, finance and insurance • Business and industrial consulting • Information and Communications Technology • Light and medium manufacturing

What are the best business opportunities in dubai?

More than 20000 business activities operate in dubai.the segment is not expired.any segment is open to new business.The dubai economic report has showed ,the following directions are the most requested and successful business sectors.

Dubai’s economic is not only OIL ,but its well diversified across 6 major sectors • WHOLESALE-RETAIL TRADE 25,2% • TRANSPORT 13,9% • REAL ESTATE 12,9% • MANUFACTURING 12,5% • FINANCIAL SERVICE 11.6% • CONSTRUCTION SECTOR 7,7% Total trade (2013)=$357,6bn • Imports(2013)=$217.1bn • Total exports (2013)=$140,5bn In previous article, we have already talked about

Dubai expo 2020,This is a very best chance to present your business to millions of vizitors from around the world World Expos have continued to be one of the largest and most enduring global mega-events.

Lasting six months, World Expos attract millions of visitors who explore and discover pavilions, exhibits and cultural events staged by hundreds of participants including nations, international organisations and businesses.

Dubai’s World Expo is held under the theme of Connecting Minds, Creating the Future, echoing the powerful spirit of partnership and cooperation that has driven the UAE’s success in pioneering new paths of development and innovation. Through this theme, Expo 2020 Dubai will serve as a catalyst, connecting minds from around the world and inspiring participants to mobilise around shared challenges, during a World Expo of unprecedented global scope, under the sub-themes of: Mobility, Sustainability & Opportunity.

Expo 2020 Dubai is expected to attract 25 million visits, 70 per cent of which will be from overseas.

This will be the first Expo in which the majority of visitors stem from beyond a nation’s borders.

All of these factors contribute to the development of business in Dubai.Why not Georgian use this chance, for their successful business. When a company named “Evergreen Businessmen Services arrived from dubai to help and guide u how to setup business in the most attractive place in world Dubai.

For more free reports contact us Adress: g.saakadze descent 11 business center “Panorama” Tel: 577433366 Email:tbilisi@setup-biz.com www.deddubai.net

January 25, 2016 #23

AGL ajara business week

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NARESH TELGU: THE SHUAKHEVI HPP IS ONE OF THE FASTEST DEVELOPED HYDRO PROJECTS IN THE WORLD AND ADHERES TO INTERNATIONAL STANDARDS OF QUALITY The Shuakhevi HPP has a new COO – Naresh Telgu. He has 18 years of international experience in various fields of the power sector including the construction and development of power projects, the operation and maintenance of power plants, the transmission and distribution of power, and business development. He obtained his Bachelors Degree in Electrical Engineering and his Masters in Business Administration (Finance).

- The construction of the Shuakhevi HPP is entering its final phase. What is the current stage of construction and what is the progress of the project?

- The 187 MW Shuakhevi hydro project is one of the fastest developed hydro projects in the world with tunnels this long (37km) developed within five years. Our team at the project site consists of ourselves and the experienced contractors and consultants who have collaborated with us. We strive to build the project to international standards of quality.

Currently, the project is around 65% complete.

But let me mention here that the majority of underground geological risks associated with underground works have been reduced since we have already completed 29.3 km of tunnels out of total 37 km.

- How many people were employed in the project implementation?

- During the construction phase there were around 1200 personnel employed. I would like to thank the people who have worked so hard to bring the project to this stage. Our employees from Georgia, Turkey and a various other countries developed their skills and learned new ones. They also had to adapt to standards and procedures that ensure safe working conditions for all.

- In addition to constructing the Shuakhevi HPP, your company implements various social projects. What important projects are you currently funding in Adjara?

- Corporate social responsibility is one of key focus areas of the company. AGL’s three main community support priorities are awareness-raising and education, community development and infrastructure development. AGL has been active in improving the living standards and general infrastructure of local communities through its CSR initiatives. Part of these activities includes “restoration” obligations such as road and bridge rehabilitation, water system development and vocational training related to these activities. AGL undertakes these projects in cooperation with local municipal governments.

Our main Initiatives (2014 – 2015) included the following: Awareness Raising & Education: financial man-

agement seminars, road and traffic safety trainings, sustainable firewood use awareness training, healthcare awareness seminars, AGL scholarships for local students from affected communities, agricultural seminars and pedagogical skills training for local English teachers, and English language enrichment activities for local students such as after-school programs and contests. Community Development: small business development and agricultural development (beekeeping programs, nuts cultivation). Regional Development: rehabilitation and gravelling of village roads, rehabilitation of potable water supplies and drainage systems, rehabilitation of school libraries and supplying schools with equipment, refurbishment of school yards and sport halls and construction of gabions.

- Mr. Naresh, before arriving in Georgia you took part in implementing a variety of important projects in many countries. What social responsibility practices are implemented in other countries? Are social projects done with projects in every country?

- I have been associated with the development and implementation of power projects including thermal, hydro, wind and geothermal projects.

These projects were implemented or are being implemented in many different locations around the world including India, Vietnam, Indonesia, Zambia, Bhutan and Nepal. The sponsors of this

company have a strong focus on social projects and have created an atmosphere that promotes being a good neighbour. We are working with local communities to create a better life for everyone.

- The Shuakhevi HPP will be completed in one year and hydro power plant will start operating. We have learned that the process of staff selection has already started. What challenges are you facing with this process?

- The Shuakhevi power plant will be commissioned in December 2016. Planning for operations phase is already in progress. We need to create a world class organisation for this phase. The resource identification process for mainly technical positions has already started and we would be developing our human resources to standards that match the best in the world. I think we need to create a balance between experience and youth to create a team that is technically competent, with excellent practical knowledge, to operate the Shuakhevi power house at an optimum efficiency level.

- In your opinion, what is the main thing the country will gain after completion of Shuakhevi HPP? - The 187 MW Shuakhevi Project is the first project in Georgia with debt financed by three large multilateral agencies: the IFC, ADB and EBRD, with a project budget of around 416 million USD.

It is a benchmark project for Georgia, to show case to the world how a largescale project can be implemented in this country in record time and with world class quality.

It will be the largest hydro project to be commissioned in 2016 or 2017. Georgia will also benefit from the domestic sale of electricity to in the winter when the country faces a power deficit. We are thankful for the support of the Government of Georgia and Adjara as well as the municipal governments of Shuakhevi and Khulo during this critical construction phase.

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EXHIBITION ajara business week

January 25, 2016 #23

Batumi to Host First International Exhibition of Medical Tourism and Equipment ExpoMed Batumi 2016 to Be Held in April

On April 14-16 GEONET EXPO Exhibition Company will hold EXPOMED Batumi 2016, the ďŹ rst international exhibition on medical tourism and equipment. The exhibition will be held at Sheraton Hotel in Batumi. The company invites both domestic and foreign companies for participation. The exhibition will expose modern medical technologies, medical universalities, dental clinics, pharmacies, pharmaceutical manufacturers, hygiene and makeup things, leading plastic surgery clinics and medical tourism companies. EXPOMED Batumi 2016 international exhibition is expected to improve medical services in the region.

Representatives of leading medical clinics of various countries are invited to Georgia. Presentations will be held as part of the exhibition, medical technologies will be introduced and bilateral meetings will be held. Companies from Georgia, Russia, Turkey, Ukraine, Azerbaijan, Armenia, Iran and Poland will take part in the exhibition.

Co-organizers of EXPOMED Batumi 2016 are: the Autonomous Republic of Ajara, the Health and Social Protection Ministry of Ajara, the chamber of commerce and industry of Ajara, the association of international investors of Georgia. Media promotion will be ensured by Ajara TV and the Ajara Business Week (ABW) newspaper.

In his interview with the ABW, OSMAN CHALISHKAN ( MZHAVANADZE) , the Director of the company, talks about the importance of the exhibition and its perspectives.

- What is the goal of this exhibition?

- This is an international exhibition of EXPOMED Batumi. We expect professionals from at least seven countries to participate in the event.

Moreover, we want each country to refer at least two companies to. The objective of the exhibition is to enable Georgia-based companies to easier establish contacts with foreign companies. We also want to stimulate companies to seal memorandums here. We plan to hold presentations and this will be very important for the region and the whole country.

We hold all exhibitions in the off-season period, when the Region lacks for visitors. We are trying to involve all ďŹ elds in our activities, hotels and food restaurants and so on. The objective of GEOMED Expo is to ensure high-pace economic activity in the region in all seasons. This year we

have added two exhibitions to the planned events, namely EXPO TEXTILE Batumi 2016. One exhibition will be also held in the automobile sector, as well as in the furniture sector. We want the Foreign Affairs Ministry of Georgia to join the process, because the diplomatic corp. possesses huge potential to wider spread information on the international level.

- As to EXPOMED Batumi, which countries will be represented at the exhibition?

- Representatives of Turkey, Iran, Poland, Ukraine, Belarus, Russia, Azerbaijan and Armenia will take part in the exhibition.

- What about negotiations with Georgian companies. Are they ready to cooperate with foreign companies?

- Prior commencement to organizational works, we conducted negotiations with several

major companies. Naturally, they showed willingness and full support, because they are interested in holding the exhibition in Batumi. This exhibition enables Georgian companies to establish relations with foreign partners.

-As to medical tourism, do you think the region has real potential in this direction?

- I think not only the Ajara region, but the whole country owns huge potential for medical tourism development. This exhibition will bring

long-term results, because all participant foreign companies will set up close relations with domestic companies, and all these efforts will bring positive results, including in terms of medical tourism development.

- Approximately how many visitors do you expect to participate in the exhibition?

- We expect about 80 companies to participate in this exhibition. The event will be very representational.

January 25, 2016 #23

HEALTHCARE

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ajara business week

Social Initiative “What Hurts?” to Help Health Ministry Determine Public Needs

G

eorgian Health Minister David Sergeenko and Global Alliance president Jean-Elie Malkin have held a joint news conference and introduced a joint social project – “What do you worry about?”

The Georgian Health Minister and the Global Alliance president overviewed the importance of this project.

The project calls for inquiring Georgian citizens through special questionnaires starting January 25. The new initiative is to assist the Georgian Health Ministry in precise determination of the medical needs in the Georgian society.

Starting January 25 questionnaires will be able on the website (www.1505.ge) and the Health Ministry regional offices. The sociological research company will process and summarize the inquiry results.

The project has been developed to exactly determine the desires, expectations and needs of the Georgian population in terms of healthcare services, Georgian Health Minister David Sergeenko said.

Our country has taken serious steps for improving the Health system for the past several years, but many challenges should be still resolved.

Our social initiative calls for creating additional channel of communication with our society.

“The fact is the current communication is not sufficient to thoroughly explore the needs of our society. Our current mechanisms cannot fully cover the target groups, while there positions and considerations are very important for us. Our objective is to fix any opinion and position and accumulate them in the resources, where we will simply and efficiently respond to the demands of our citizens to change and revise our plans based on the public opinion.

There is no ideal and perfect health system anywhere in the world. We know successful

experience of several countries and interesting practices that Global Alliance is sharing to us as part of our cooperation. However, the attitude and position of our population is also very important and we plan to outline these moods.

Therefore, we have backed the proposal of Global Alliance on organizing a joint inquiry”, David Sergeenko said.

We should determine the priorities of Georgian citizens, their expectations and demands in the healthcare system, Global Alliance president Jean-Elie Malkin said.

As part of “the What Hurts?” social initiative, we will ask Georgian citizens to answer certain questions. For instance: how much do they spend on health, how much expenses do they consider optimal for health, are they content with the quality of medications, diagnostics and services, prices and so on.

The inquiry results will enable us to make our visions and approaches more realistic and valuable for further improvement and development of the healthcare field and to offer more realistic plans to the Ministry around the existing problems”, Jean-Elie Malkin said.

The questions may be answered on the www.1505. ge website and the Health Ministry official website, as well as at the public reception hall of the Health Ministry, regional and urgent medical assistance centers of the Health Ministry, the social agency service centers.

The sociological research company will process and summarize the inquiry results.

In April the Georgian Government and the Global Alliance international consulting group signed an agreement with the aim to develop and improve innovative instruments and mechanisms for the health system management. Global Alliance, led

by Bernard Kouchner, the ex Foreign Minister and triple Health Minister of France, is staffed by worldwide recognized experts in the health system management issues.

The healthcare system improvement documentation has been already developed under the mentioned agreement. These documents call for reorganizing the primary health system, increasing efficiency of spending, expanding accessibility of medical services and medications, integrating with European healthcare norms and legislation and establishing European standards of management. At this stage, the document is being translated into Georgian. The Georgian government has extended the agreement with Global Alliance up to May 1.

Jean-Elie Malkin also talked about the importance of this initiative and made few comments on behalf of H1N1 virus.

The Georgian Health Minister also stressed the importance of this new campaign.

For the past months the Georgian Health Ministry and Global Alliance have been zealously cooperating for the Georgian Health System improvement in behalf of the Georgian population.

This is a very tight and efficient cooperation and this cooperation becomes more and more efficient and valuable and I would like to express my gratitude to the Minister and the Health Ministry personnel for this efficient cooperation in order to ensure affordable and high-quality medical services to Georgian citizens.

This initiative will enable us to check the pulsation of Georgian citizens and to receive precise information on their needs and expectations, because the improved system is to improve the public healthcare issues.

Consequently, the Minister stressed the importance of this initiative and the main principles.

It is important that Georgian citizens be able to talk about their problems and needs. This is not a sociological research, but this inquiry will enable us to make deep analysis and this research

will be carried out in a simple way – filling out online questionnaires. As a result, we will be able to improve the system and to take useful steps for the Georgian population.

This is very important for the Ministry. As noted, Global Alliance tightly cooperates with the Georgian Health Ministry. We will collect information on the most problematic issues in the population, while the Georgian society will be able to unveil their problems and positions to the Health Ministry.

I would like to finish my speech and refer to the cases that are relevant in Georgia and are related to the H1N1 virus. The Minister showed very good and efficient reaction to this virus and this reaction first of all responds to the public needs and their expectations. This reaction is an expression of efficient management. This was a very good and valuable reaction to provide valuable response to similar cases and broaden family doctors’ involvement in efficient management of the process.

This fact reaffirms the importance of continuation of the healthcare reforms that is a priority of the joint program of the Minister and me and the priority calls for improvement of the primary healthcare chain.

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PUBLICITY ajara business week

January 25, 2016 #23

January 25, 2016 #23

GUIDE ajara business week

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SKI RESORT GODERDZI 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

Distance from Batumi: 109 km Altitude: 2000 m The maximum height above sea level: 2366 m The total length of ski trails: 8 km Accommodation: cottages and guest houses Visit the new winter resort “Goderdzi” and spend truly unforgettable ski vacation! Enjoy the fresh air, beautiful mountain scenery and well-equipped ski runs!

Non-package prices: • Accommodation in a cottage - 60 - 150 GEL (See details and contacts) • Accommodation in guest houses (three meals) 35-40 GEL (See details and contacts) • Meals: breakfast – 10 GEL / lunch - 15 GEL / dinner-15 GEL • Lift tickets (cable-way): 5 GEL one-way / full day lift pass - 30 GEL • Ski boots and ski - 5 GEL per hour / 30 GEL for a one-day rental (the price does not include clothes, sunglasses, sock cap and gloves) • Toboggan - 5 GEL per hour for a one-day rental - 20 GEL • Snowboard - 5 GEL per hour for a one-day rental - 20 GEL • Skiing instructor - 20 GEL per hour • Transfer from Batumi to Khulo - 5 GEL / from Khulo to Goderdzi- 7 GEL • Transfer from Danisparauli to the ski resort - 3 GEL How to get to the ski resort “Goderdzi”?

• You can get to Khulo center by public transport from Batumi. The bus departs from Batumi bus station every day (Bus station address: 1, Mayakovskii St. Tel: +995 422 27 85 47) Fare - 5 GEL. • From the Tourist Information Center in Khulo. Transport departs every day from the Information Center on the following schedule: •• From Khulo to Goderdzi: at 11:00 •• From Goderdzi to Khulo: at 16:00 •• Address: Khulo, M. Abashidze St. (near cable way) Tel: +995 577 90 90 15 •• Fare: 7 GEL • It is also possible to hire a vehicle (4-wheel-drive-vehicle) in the center of Khulo, Batumi or Kobuleti. Car rental cost is 250-300 GEL from Batumi to Goderdzi, 60-70 GEL from Khulo to Goderdzi.

For more information or reservations, please contact to Khulo Tourist Information Centre: • Address: Khulo, M. Abashidze St. (near cable way) • Cell.: +995 577 90 90 15 / +995 577 90 90 93 • E-mail: tic@gobatumi.com

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

January 25, 2016 #23

• 247 guest rooms and suites • Nephele Sky Bar on 20th top floor with open terrace and best views • Pelion Restaurant, Lobby Café and Bar Tandila • Eforea spa, fitness room, indoor swimming pool and open sun terrace • 7 meeting rooms and ballroom • Complimetary Internet access throughout the hotel • Smoking rooms available • 181 car parking spaces