Caucasus Business Week #143

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April 25, 2016 #143

April 25, 2016, Issue 143 - www.cbw.ge

economy

What should We Expect from Kvirikashvili’s Initiatives Pg. 7

bank FINCA Bank became the first SMART Certified financial institution in Georgia

georgia

Korea’s National Assembly supports Georgia’s development

Pg. 5

Pg. 2

European-standard Adjusted Trains to Serve Disabled Bodies In summer 2016 bi-level rail cars will operate in the Georgian Railway network Pg. 4

Prime Minister: Georgia Welcomes Investments by Korean K Water Georgian Prime Minister Giorgi Kvirikashvili met with Chung EuiHwa, head of the national assembly of Republic of Korea, who is paying a visit to Georgia. At the meeting the parties discussed bilateral cooperation development perspectives. The Georgian Prime Minister thanked the Korean National Assembly Chairman for support of territorial integrity and sovereignty of Georgia and the assistance after the Tbilisi flood in 2015.

The parties stressed huge potential for development of bilateral relations and the inauguration of the diplomatic representation of Korea in Tbilisi also promotes these relations.

The parties also discussed the free trade relations, education system reformation issues that is one of the priority components of the government’s four-clause reformation plan.

The head of the Korean Republic National Assembly expressed readiness to support Georgia and be reliable partner on the international arena.

The Georgian government welcomes Korean investments in Georgia, especially investments made by K Water, the Korean State water company, as part of Nenskra HPP construction project in the Svaneti Region. The project’s investment value is 1 billion USD.

TBC bank initiated the research to reveal the public’s financial literacy The study was implemented with the support of internationally recognized research organizations such as the TNS and the School of Economics ISET. Totally 1,000 respondents took part in the survey from the 7 major cities of Georgia (Tbilisi, Batumi, Kutaisi, Zugdidi, Poti, Gori, Rustavi).

People at age 18 to 65 were interviewed. From there 45% represented men and 55% - women.

The aim of the research was to detect public’s awareness of financial issues and education. In addition, the reliance of commercial banks and trustworthiness of any other financial institutions was tested.

The aim of the research was to detect public’s awareness of financial issues and education. In addition, the reliance of commercial banks and trustworthiness of any other financial institutions was tested.

Pg. 8

Newsroom

2 Government

Saganelidze Predicts the Delay of Transformation Process of the Partnership Fund

Executive director of Partnership Fund announces about the necessity of transformation the fund into the corporation, but he sees the signs of the process delay.

ICAO has Raised Georgia Red Flag Status

International Civil Aviation Organization (ICAO) has raised Georgia Red Flag Status.

According to Economy Minister, the fact was preceded by successfully fulfilled international commitments by Georgia.

economy

Working Group to Work on Development of Winemaking and Tourism in Kakheti

A working group is created for development of winemaking and tourism in Kakheti Region, which should comprise of government departments.

Skyland Petroleum to Supply Oil and Gas From Georgia to China

Skyland Petroleum Limited announced Wednesday in Shanghai that beginning 2016, it would supply oil and gas to China from Russia, Tajikistan and Georgia, Xinhua reported.

banking

NBG President to Submit 2015 Performance Report to Parliament until May 1

Under the Georgian organic law on NBG determining that every year, in no later than 4 months, after the fiscal year completion.

French Financial Group Societe Generale may Leave the Georgian Market

After the British HSBC, the French group Societe Generale could leave the Georgian financial market. The group now owns the bank “Republic” which may be sold.

business

Pace of Mobile Number Portability Slowed down in Georgia

In 2015 the pace of mobile number portability (MNP) slowed down in Georgia compared to 2014.

State Procurement Rules Changed in Georgia

The State Procurement Agency has imposed restriction on access to competitors’ offers for the companies involved in the public procurement process in the country.

company

Spanish DeRAZA Iberico plans to start business in Georgia

Biggest meat producer Spanish company plans to launch business in Georgia.

Delegation of the company will visit to Georgia in these days.

Korea’s National Assembly supports Georgia’s development “Georgia is God’s gift and I am looking forward to the time when Georgia and the Republic of Korea will work together.”

This was what chairman of Korea’s National Assembly Chung Ui-hwa said after meeting with Georgia’s Parliament Speaker David Usupashvili in Tbilisi today.

Future prospects for cooperation between Korea and Georgia were actively discussed by the two high officials.

Ui-hwa hoped Georgia would attract the attention of the whole world and become an exemplary country for reform, democracy and business. He also expressed readiness to provide assistance to Georgia and share Korea’s experience with Georgia as it progressed on its path of reform and

development.

Korea has achieved industrial development in the shortest period of time thanks to assistance from other countries. Now we will try to share this assistance with others,” said Ui-Hwa. Meanwhile Usupashvili spoke about the problems that had touched both countries – problems with their northern borders.

We see a disturbing development of North Korea’s aggressive actions in the region and we show solidarity to the Korean people. We support the Korean people in resolving these problems,” said Usupashvili.

Also, Korea supports Georgia’s territorial integrity and sovereignty at the international level and we will always feel this

support,” said the Georgian high official.

Korea is the fourth ranked country in Asia in terms of its developed economy … and we are pleased the relations between our countries are increasingly deepening at the political level.

We, both countries, are fighting for peace and stability,” he added.

At the meeting Usupashvili noted a billion-dollar investment

by Korea had recently launched in Georgia’s energy sector and Georgia was very grateful for this as it encouraged economic development.

Meanwhile, also today Parliament of Georgia signed a Memorandum of Understanding with Korea’s National Assembly to forge closer ties.

Parliament Adopts Corporate Income Tax Reform Bill Parliament passed on April 15 with its first reading bill on corporate income tax reform, known as Estonian model.

According to the bill, corporate income tax (a regular rate is 15%) will only apply to distributed profit; undistributed profits, reinvested or retained, will not be subject to income taxation starting from January, 2017.

But unlike other businesses, the rule will apply to banks, insurance companies, microfinance institutions and pawnbroking businesses starting from 2019, according to the bill.

The 2016 state budget targets revenues from corporate income tax at GEL 980 million, accounting for more than 11% of budget expenditures and 12.3% of total tax revenues of GEL 7.98 billion planned for this year.

Deputy Finance Minister Lasha Khutsishvili told lawmakers that according to government’s estimation the state confers will get GEL 600 million less

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April 25, 2016 #143

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in corporate tax revenues next year when the reform goes into force and there will be GEL 300400 million less in 2018.

“On the third and fourth year of the reform, this loss is expected to be fully compensated at the expense of economic growth,” which this reform should stimulate, he added.

Government’s initial draft envisaged enacting the new rule from July, 2016 but decided to delay it until 2017 citing the request of some business lobby groups, which said that applying of the reform in the middle of the tax year would be “quite problematic for implementation.”

According to the bill a calendar year, which is now the tax period for corporate income tax, will be replaced by a month.

In other amendments to the tax code, only the Finance Ministry’s Revenue Service will remain authorized to carry out tax inspections; Finance Ministry’s Investigative Service, or financial

police as it is known informally, as well as other law enforcement agencies will no longer have these powers.

Currently existing legislation allows relevant authorities to order freeze of bank accounts of business entities in case of tax disputes. The Revenue Service will retain this power, but decision on freezing bank accounts will require authorization from court within 48 hours. If the request is declined or if the court fails to consider the request within 48 hours, freeze on bank accounts should be removed, according to the bill.

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Kobi Might Become Part of Mountain Resort Area

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Armenia Airline Founded

by Georgian Businessman Operated its First Flight to Tel-Aviv

Editor: Nutsa Galumashvili. Mobile phone: 595 380382 Reporters: Nino Kuparashvili, Lazare Gvimradze; Shiva Parizad.

Designer illustrator: Ilia Chrelashvili. Technical Assistant: Giorgi Kheladze

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

April 25, 2016 #143

publicity

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Georgian Railway

European-standard Adjusted Trains to Serve Disabled Bodies

I

n summer 2016 bi-level rail cars will operate in the Georgian Railway network.

“This is a special event in the history of Georgian Railway, because we have never purchased trains of this type and quality”, Georgian Railway director general Mamuka Bakhtadze told the BPI. The Stadler bi-level train is made under the EU highest technical regulations. Moreover, the train is adjusted to disabled bodies and this is a priority direction in Georgian railway, Mamuka Bakhtadze said.

Georgian Railway has

bought four trains from Stadler Bussnang AG that is one of the leading companies in the railway field. The project is valued at 40 million EUR and this is a considerably preferential price, Mamuka Ba­khtadze said. Under the bidding condition, the Supplier was to attract a cheap loan and Stadler has drawn quite cheap loan from the Swiss Bank.

“The railway industry turnover records certain slowdown and railway purchases have decreased in the CIS countries.

Therefore, we would like to thank the Swiss company because it has taken into account the existing situation. On the

other hand, it is important that the Government has taken into account our arguments in relation these trains and enabled us to purchase trains”, Bakhtadze noted.

At the first stage, two railway vehicles will run on the Tbilisi-Batumi direction and two other ones will be added to the infrastructure in 2017 that will run on Tbilisi-Poti direction. Travelling by train is more comfortable. At the same time, prices will not change and the consumers will receive the same quality and services for the same price.

All bi-level trains will run from Tbilisi to the Black Sea direction without break and will

stop at only seaside resorts – Batumi, Kobuleti and Ureki.

“Electric trains on TbilisiBatumi direction enables to cut the time by 20 minutes, while after the railroad modernization project the time will be reduced by 1 hour”, Bakhtadze noted.

The train consists of 16 carriages and each one is able to hold 450 passengers. They are adjusted to disabled bodies and each carriage embraces 20 places for displaced bodies. The train consists of three classes – VIP, business and economy class.

The trains will be served by licensed machinists and captains. Moreover, Georgian railway also plans to adapt depots.

Georgian Section of Baku-Tbilisi-Kars Railway is Ready

Georgian Railways Became the General Sponsor of Basketball National Team

Georgian section of the Baku-Tbilisi-Kars railway is ready for operation, Mamuka Bakhtadze, Director General of Georgian Railway declares.

Bakhtadze exclusively declared to Azerbaijani news agency Trend that works are only finished on the area of Turkey. According to him, Georgia and Azerbaijan are at the important stage of transport sphere development in terms of connecting the Persian Gulf and the Black Sea ports.

Bakhtadze considers that the potential freight corridor can be estimated at several million tons.

In view of all projects, which we are discussing today, in the long term, this traffic can reach about 10 million tons.

T

Tbilisi-Batumi Highway Project Reduces Travel time By 1 Hour Head of Georgian Railways together with economy Minister Dimitry Kumsishvili visited main line of Tbilisi-Makhinjauri railway, where modernization project takes places. “Today, we have finished building of the second tunnel, in the frames of railway modernization project.

Georgian government has granted the implementation of the project, which aims to increase bandwidth of Khasuri-Zestaponi section. This project is significant for the development of Anaklia deep sea water, so commission date of this project is directly related to completion of Anaklia port, which is planned to finish in 2019,” Mamuka Bakhtadze said.

“With this project travel time from Tbilisi to Black Sea resorts will be reduced by one hour,” Bakhtadze added.

he cooperation memorandum was signed between “Georgian Railways” and National Basketball Federation. GBF’s President Mikheil Gabrichidze and General Director of “Georgian Railways” Mamuka Bakhtadze signed the agreement.

Financial support will be provided for the Super League, the national and age teams. Besides the national team, this support spreads on three age teams – U-16, 18 and 20. “Side by side for victory” – the Georgian railways supports Basketball Federation and encourages fans to be more engaged in order to make basketball more popular in the country.

The signing ceremony was attended by officials – Minister of Sports and Youth Affairs of Georgia Tariel Khechikashvili and Supervisory Board’s Chairman of “Georgian Railways”

Koka Guntsadze. Heads and official guests made their speeches and after the signing, the comments were made in connection with this remarkable fact.

April 25, 2016 #143

Modernization of Georgian Railway Should be Finished in 2019 “Modernization of railway project is very important for Anaklia Deep Water Sea Port, so the completion date of the project is determined by 2019”, – Mamuka Bakhtadze, general director of “Georgian Railway” declares.

The works are in active phase, the 8th tunnel of 1125 m is already opened within the frame of the project. According to Mamuka Bakhtadze, the free section of the tunnel might be used for the transport highway in the future.

“We hold consultations about it with the Ministry of Infrastructure and Economy Ministry, in order to use the remained asset effectively. We also have consolations with Ministry of Environment Protection, as the nature is unique and the decision should

be considered in all directions”, – Mamuka Bakhtadze has declared.

It should be noted, that as a result of amendments made to the projects, the capacity of the railway is increased up to 48 million t, while in the case of introduction of complete auto-blocking system, it will reach 100 million t per year.

To remind, construction of 6 railway tunnels is planned within the fame of the project, at that 3 of them are already built with a total length of 2 095 m.

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Forbes: One Way to Measure the Effectiveness of Vinexpo is the Example of Georgia

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In Tbilisi Technological Institute Will be Fully Operated in 7 years

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Not Enough Business Centers while Office Space Demand on the Rise Across Georgia

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Cultural Center Instead Of A Dysfunctional Factory – FABRIKAIn Tbilisi

bank

April 25, 2016 #143

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FINCA Bank became the first SMART Certified financial institution in Georgia

FINCA Bank Georgia announced it has received Client protection Certification by the SMART Campaign, a global initiative that certifies the adoption of the high ethical standards in the treatment of clients in the microfinance industry. FINCA Bank Georgia became the first SMART certified financial institution in the country.

“We have always held a strong commitment to responsible banking as well as the wellbeing of our clients.

This is independent validation lends credibility to our strict internal standards and policies and our commitment to always treat our clients fairly and ethically,” Vusal Verdiyev, CEO of FINCA Bank Georgia said.

FINCA Bank Georgia has over 18 years of experience in the coun-

try and has provided financial services to small business owners to increase income, create jobs and improve lives. The institution became a licensed, regulated banking entity in 2013, offering its clients access to saving products. FINCA Bank is making a difference – reaches underserved people in rural and urban areas: 79% of total clients are from rural areas who potentially have limited access to financial serves, over 80 000 people earn their livelihoods in the businesses that FINCA Bank Georgia finances.

FINCA Bank Georgia received the certification in recognition of FINCA’s commitment to the best interests of clients, which includes institutionalizing the SMART campaign’s seven Client Protection Principles. These principles include: appropriate product design and delivery, prevention of over-indebtedness, transparency responsible pricing, fair and respectful treatment of clients, privacy and client data, and mechanisms for complaint resolution.

In extending congratulations to the bank, Isabelle Barres, Direc-

tor of SMART campaign, said: “We are proud that FINCA Bank Georgia became the first SMART certified institution in Georgia and has joined 44 other leading financial institutions to position itself as a leader in client protection. Their deep commitment to the wellbeing of their clients will serve as a shining example for other microfinance and financial institutions around the world to pursue high standards for client protection”.

The consumer’s rights protection is one of the important issues in the finance sector and it is wonderful that FINCA Bank has created such a precedent, Zurab Gvasalia, president of the Georgian Banks Association, noted.

To protect the consumer rights it is important that the consumers know how justly and fairly they are treated.

When you prioritize the consumer rights protection and make no compromises to the consumers’ detriment, this is an inseparable part of your value.

This is a main principle for granting this certificate.

I am sure this case will generate other precedents too. FINCA Bank has entered the bank field with interesting visions and it has satisfied the standards that are required for obtaining a similar certificate”, Zurab Gvasalia noted.

Giorgi Kepuladze, head of the board of Society and Banks NGO, recognizes that there are certain problems in protection of consumer rights in Georgia.

“In most cases even clients do not have information on their own rights and it is important to broaden this perception. The Society and Banks has launched a hotline and our clients are able to receive consultations from us in similar cases. In case of problems, we provide medication for consumers”, Giorgi Kepuladze said.

Giorgi Samadashvili, operational director of FINCA Bank

Georgia, thinks that similar recognition is one of the competitive advantages.

“This is a widely-recognized and disseminated certificate worldwide. We are sure the practice that we have established is acknowledged and meets high ethical norms. Compared to our competitor, they give us certain advantage. However, on the other side, this is also responsibility for maintaining high standards and not losing ethical norms that we have already established in the course of time. On the contrary, we are to strengthen them”, Samadashvili said.

tbilisi

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April 25, 2016 #143

City Hall Reserve Fund Pays no Entertainment and Club Costs Irakli Lekvinadze Tbilisi vice mayor

A

s a result of merger of three economy-profile offices at Tbilisi City Hall, the administrative staff was cut to 60 employees from 132 ones, Tbilisi vice mayor Irakli Lekvinadze told the Business Contact. The main function of economyprofile offices is to increase the number of job places in the capital city.

As to the city hall reserve fund, the Fund is transparent and the money resources are mainly directed to social projects and force-majeure situations, Irakli Lekvinadze noted and referred to infrastructure damaged by strong wind in Tbilisi several days ago.

“The city hall reserves fund is transparent and it is not used to finance entertainments and clubs, contrary to the previous practice. In the last year. This year we have considerably increased the city hall’s reserve fund”, Lekvinadze said.

This year about 60 historical monuments will be rehabilitated in Tbilisi, while about 1700 historical-culture monuments are registered in the capital city. Their rehabilitation is the responsibility of the Tbilisi development fund.

In his interview with the Business Morning Giorgi Baidarashvili, the director of the Tbilisi Development Fund, talks about the Fund’s plans and projects to be implemented in 2016 in Tbilisi.

- A new wave of restoration-rehabilitation works has started in Tbilisi and considerable funds are mobilized to this goal. How many projects do you plan to implement and when do you expect these works to end?

- The Tbilisi City Hall operates in old districts and is trying to maximally preserve the historical-culture heritage of the city. Our budget for 2016 makes up 42 million GEL, of which 10 million GEL will be spent on 15 projects that were commenced in 2015. There are separate individual monuments. This year we will carry out large-scale project and rehabilitate Aghmashenebeli Avenue and the Dry Bridge. We also plan to connect one part of thie Collective Farm’s Square with the territories near Rustaveli Avenue and rehabilitated Pushkin Street.

- Do you plan to restore all damaged historical buildings?

- There are many historical and culture monuments in Tbilisi and the capital city is rich and special place in this respect. We should properly use this factor, while the budget resources are limited. Total budget of the city hall is about 800 million GEL. We have 1700 monuments in the capital city and a major part of them is much damaged. I frequently repeat that it is impossible to rehabilitate all 1700 monuments at once.

- What a percent of these monuments will be rehabilitated?

- For example, this year we will try to maintain the appearance of about 60 monuments.

- How have you defined the priorities?

-In the last year the project was carried out for 8 months and it was called as the urban development concept of the historical part of Tbilisi. The monuments were registered in the inventory under this concept and we determined priority directions due to emergency state degree. We have specified those monuments that must be rehabilitated first of all. We have already determined all these details.

- Elaboration of the Tbilisi development strategy and attracting due invest-

There are many historical and culture monuments in Tbilisi and the capital city is rich and special place in this respect. We should properly use this factor, while the budget resources are limited.

ments is one of the directions, on which you are working. What would you say about this?

- This is a broader issue and is related to one special office of Tbilisi City Hall.

Our main objective is to care for historical appearance of Tbilisi and old territories.

As to the investments, the Fund did not embrace the investment direction previously. In October 2015 we revised the organization structure and formed a new one with new directions and due services.

For example, we have organized an office for communication with investors and donors.

As to other directions, we are working with donors and we plan to launch several important projects. In the New Tbilisi concept, the program for restoring individual monuments is one of the main directions. There are many monuments and they are located in different zones of the capital city. This signifies we cannot cover all those monuments a long period. Therefore, we have developed a separate direction. We have appraised the condition of 1700 monuments and we are trying to get to individual monuments. The first stage implies a restoration of areas with major tourism routes and their interconnection, because if you see the Tbilisi map, you will see a unity of rehabilitated zones, where tourists move. Part of this space has been rehabilitated and another part should be rehabilitated. We are trying to connect similar parts with each other. The second phase implies a restoration of individual monuments. The third component involves very interesting historical entrance halls and their number is 34. In the near 18 months we will restore them.

The fourth component embraces museums that create additional conditions for attracting tourists. We also plan to arrange very interest routes in the component of city gardens.

- Do you plan to transform streets into pedestrian zones?

- We have decided to arrange a pedestrian street on that part of Aghmashenebeli Avenue that is located from the Chorokhi Street turn up to Saarbrucken Square.

In general, pedestrian zones have their own substantiation. Good Architectural environment is one of the main arguments, as well as considerable concentration of historical-culture monuments. Close location to second transportation arteries is very convenient for walking and underground stations, bus lines or routes do not create problems in these sections.

- Have you envisioned the position of local residents over the project?

- Their position cannot be negative.

We know about their position. Following the security norms, at the first stage, we

closed the movement towards Chorokhi Street and traffic jam was not created there. Today we have already started rehabilitation of communication-engineering networks and this is related to excavation of streets. Therefore, vehicle traffic to Dodo Abashidze Street will be closed. Traffic jams are not created there either. This project will pass test period for 6-7 months until it has been finished.

- You have mentioned entrance halls and when will you start working on this direction?

- We plan to start rehabilitating several entrance halls this year. We have prepared several serious publications with due research works. We have talked with their authors too. It is impossible to do everything at once, because the building requires full rehabilitation.

Tbilisi and Istanbul Establish Ties as Twin Cities The capital cities of Georgia and Turkey are now twin cities.

The deal between Tbilisi in Georgia and Istanbul in Turkey means the bilateral relationship will strengthen, allowing the partnership to deepen and solidify.

The Mayor of Georgia’s capital Tbilisi David Narmania is in Istanbul to meet with local officials and discuss ways to deepen ties between the neighboring cities.

Narmania and his Turkish counterpart Kadir Topbs signed a memorandum yesterday, making Tbilisi and Istanbul twin cities.

We sorted out very specific issues for future cooperation.

These issues are supporting investments, developing tourism and deepening cultural ties between the cities,” said Narmamia.

There are some fields where Istanbul’s experience is very important for Tbilisi. For example we can have active cooperation with Istanbul in the field of managing the municipal transport and maintaining the cultural heritage while renovating the city,” he said.

The memorandum also emphasized Tbilisi and Istanbul would support each other on the international arena and cooperate in all international platforms.

economy

April 25, 2016 #143

What should We Expect from Kvirikashvili’s Initiatives 1. Taxation system reformation – introduction of the Estonian model of profits tax, as

well as decriminalization of economic crimes and reduction of tax audit timeframes;

2. Reformation of involvement, transparency – creation of the so-called front-office that will work under one-window principle for communication with the business sector;

3. Development of regions – promotion of entrepreneurial activities in regions with various state programs and intensification of infrastructural projects;

4. Fundamental education reform.

Merab Janiashvili Economic Analyst

T

hree months have passed since appointment of Georgia’s new Prime Minister.

Giorgi Kvirikashvili took over the position only in 2016, but the business sector has already demonstrated positive attitudes to him, especially, after introduction of the last initiatives. It should be noted Giorgi Kvirikashvili is the favorite prime minister of businessmen. After resignation of Irakli Gharibashvili the private sector representatives named him as the best candidate. It should be noted the business sector had established useful cooperation with Giorgi Kvirikashvili, when he was still the Economy Minister of Georgia.

Various research works prove that the business sector expectations have improved. The business confidence index published by ISET confirms that this index has increased to 38% from 16%. As a result, a new term has arisen in the Georgian economy – the Effect of Kvirikashvili.

Specialists of the TSU International School of Economy (ISET) assert that no serious macroeconomic changes are reported in Georgia and the business sector confidence index growth may be considered as a vote of confidence in Georgian Prime Minister Giorgi Kvirikashvili.

Naturally, not only Kvirikashvili’s person has preconditioned the business sector’s positive attitudes. The new prime minister has already voiced many desirable initiatives, including four-clause plan that Kvirikashvili submitted at his meeting with businessmen in January 2016. Kvirikashvili has outlined the following directions: 1. Taxation system reformation – introduction of the Estonian model of profits tax, as well as decriminalization of economic crimes and reduction of tax audit timeframes; 2. Reformation of involvement, transparency – creation of the so-called front-office that will work under one-window principle for communication with the business sector;

3. Development of regions – promotion of entrepreneurial activities in regions with various state programs and intensification of infrastructural projects; 4. Fundamental education reform.

The taxation system reformation project proposed by Kvirikashvili has raised special interest.

The government is working on establishing the Estonian taxation model in Georgia that calls for removing tax on reinvested sums. The due bill has been already submitted to the Parliament of Georgia. Under this bill starting January 1, 2017 enterprisers, who reinvest profits in their business, will be exempted from 15% tax on the reinvested funds.

Estonia implemented similar taxation reform 10 years ago and the Georgian government plans to introduce this model in Georgia too. The Estonian experience has showed that removal of a tax on reinvested profits decreases budget revenues for the first two years. However, finances reinvested in the economy grow the business sector scales in the course of time and the taxable basis is increased and the budget revenues start growing too. In general, the business sector always welcomes reduction in taxes, but this reform does not have any contradictor, in practice.

The single problem that may arise after removal of profits tax is that the budget revenues may decrease by 500 million GEL in 20176-2018. According to the government statements, they plan to compensate these funds by cutting administrative expenditures.

As to economic crime decriminalization, the due reforms started long ago, because the current legislation is unreasonably strict. For example, if the enterpriser transports goods of more than 25 000 GEL without consignment notes, the legislation determines 5-year imprisonment term.

The amount of 25 000 GEL is not a sum, for which people should be jailed for 5 years. Natu-

rally, tax-evasion must be punished strictly, but no enterpriser is protected from mistakes in the tax administration process. Experts assert that the economic crime decriminalization is a very important issue, especially for foreign investors.

They should be confident that an insignificant mistake will not lead them to imprisonment. „The most important thing is that we will carry out tax administration reforms to make it oriented on consumers. Tax inspection will be carried out in the determined timeframes and only the taxation office will carry out it, while the account seizure will be carried out by the court decision. Moreover, the imported equipment will be exempted from VAT. We also work on decriminalization of economic crimes”, Giorgi Kvirikashvili noted at his meeting with businessmen.

Introduction of the so-called one-window principle will be innovation for the business sector. Improvement of communication between state institutions and private sector is a significant part of the reformation process, Giorgi Kvirikashvili said. To this end, the Georgian government provides active job for developing the so-called front-office that will provide public services to legal and private bodies under the one-window principle.

“Additional block of the reforms implies acceleration of infrastructural projects. For example, East-West highway project, as well as projects for construction of other highways that connect various regions of the country and neighboring countries will be implemented at higher paces.

Implementation of all other projects will be also accelerated”, the Prime Minister said.

Moreover, for the purpose of development of regions, Kvirikashvili has proposed a new component as part of the Produce in Georgia program.

This component is named – Host in Georgia. The new component enables the interested enterprisers to build a new hotel in any regions of Georgia,

7 excluding Tbilisi and Batumi, and expand and re-equip the existing infrastructure and sign the franchising agreements with international hotel operators and invite a foreign brand to the Georgian market. Consequently, the hotel business will be able to take a cheap credit with the support of the Authorities.

Moreover, the startups system will be introduced in May 2016, under which beginner enterprisers will be able to obtain financial resources through innovative business ideas. It should be noted that for many years the business, especially small and medium business sectors consider a lack of finances as a main problem. They criticize commercial banks and complain about absence of other alternative sources. Consequently, financing from the Startups program is to considerably intensify economic processes in the country. Details of this program are not known at this stage, but it should be noted similar programs run in almost all countries in Europe and America. The small and medium business is the best employer and with the support of this sector the unemployment problem may be overcome.

Besides economic reforms, the Prime Minister also plans to carry out fundamental reforms in the education system. The state resources must be redistributed to the existing demands, while the current education system produces unemployable citizens, the Prime Minister said. „Today our education system and especially the higher education system directly produces unemployable citizens. I would refer to the sample of my children. Despite my huge efforts I have failed to persuade them to launch their own business. I cannot understand why a young person should study business at BA level. I cannot understand why 18 year old citizens should study business for 4 years. The acquired skills do not satisfy the fundamental education principles.

Many people graduate these courses in Georgia and then they remain disoriented and unemployed and they have to re-qualify themselves.

Even more so, the government should not spend resources on this direction, while the private sector has to spend their finances to refer employees abroad for higher qualification. Today we produce fivefold more graduates compared to the vacancies the Foreign Ministry offers for the next year”, Giorgi Kvirikashvili said.

Thus, the initiatives proposed by Giorgi Kvirikashvili imply fundamental reforms in the education and taxation sectors. It should be noted that both entrepreneurs and citizens welcome the Prime Minister’s initiatives.

However, if these reforms do not bring real results, the positive expectations arisen in the business sector after appointment of the New Prime Minister will disappear soon. However, Giorgi Kvirikashvili noted in his speech at the parliamentary assembly of the Council of Europe: “We have made our choice. We have passed long way to be a part of united and free Europe. Our country cannot be free until our citizens do not have good living standards”.

Thus, to make Georgia a European country, it is necessary to develop the state economy, first of all.

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Hazardous Chemicals Leave Georgia

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banking

Bitcoin is the World’s Safest Currency

Eftem Urumashvili

Nodia, Urumashvili and partners

TBC bank initiated the research to reveal the public’s financial literacy

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“The company’s total value which has been operating for many years exceeds $ 1 billion. Many well-known and respected people are represented at the BITFURY’s Board of Trustees, such as an advisor to Bill Clinton, renowned economist Hernando de Soto, the former director of the New York Stock Exchange, the President of “Samsung”. How do you imagine - can this company be considered unserious?

Accusations that BITFURY is a nonexistent company and generally has no capital - is absurd and a lie,”- he says.

“This is a technology of the future.

Tomorrow is for the Bitcoin blockchain technologies. Accusations that Bitcoin technologies are used for money laundering, terrorist financing, organized crime, and drug trafficking are an absolute lie. In October 2015 the UK Ministry of Finance conducted a study that concluded that Bitcoin is the low-risk currency in the world, that is, it is not used for illegal operations. It was recognized by the most qualified government and the most qualified financial market in the world. The UK market has confirmed that the level of transparency in the production of Bitcoins eliminates funding of illegal transactions.

“The Georgian Co-investment Fund created by Bidzina Ivanishvili and a group of investors is associated with the processing center which is located in Gori.

With the initiative of TBC Bank, for the first time a large-scale study on the public awareness about the basic fundamentals of finance has been conducted in Georgia.

PASHA Bank – Special Partner of Golden Brand 2015 Awards

nino kuparashvili

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Golden Brand 2015 annual awards ceremony was held in Radisson Blu Iveria with PASHA Bank being special partner of the ceremony for the second year in a row.

Golden Brand is considered to be the most prestigious and influential annual business award in Georgia. Since 2006 it has been awarding locally operating companies for various achievements.

The ceremony was traditionally attended by representatives of leading companies. Among the special guests were governmental and diplomatic corps representatives.

Shahin Mammadov, CEO at PASHA Bank addressed the guests and once again underlined the Bank’s readiness to contribute to the development and growth of local business.

Mr. Mammadov awarded a Golden Brand prize to winning companies: - Elit Electronics - Ipkli - Georgian coffee producer Cherry - Laboratory My Home - Aspria - Gas stations network Formula Gas “We are glad to have the opportunity to be partners of Golden Brand Awards for the second time already. We believe that this annual event serves all the winners and nominees as additional motivation for developing their business and achieving more.

PASHA Bank gladly supports such initiatives,” said Shahin Mammadov, CEO at PASHA Bank.

April 25, 2016 #143

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We have a lot of programs to assist businesses, but until now there was no study that would reveal the dynamics

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he study was implemented with the support of internationally recognized research organizations such as the TNS and the School of Economics ISET. Totally 1,000 respondents took part in the survey from the 7 major cities of Georgia (Tbilisi, Batumi, Kutaisi, Zugdidi, Poti, Gori, Rustavi).

People at age 18 to 65 were interviewed. From there 45% represented men and 55% - women.

The aim of the research was to detect public’s awareness of financial issues and education. In addition, the reliance of commercial banks and trustworthiness of any other financial institutions was tested.

TNS took responsibility of interviews’ providing. Additionally, the questionnaire was prepared by the professionals of ISET, based on the practices of ADB and OECD. According to the international experience, the survey included 4 main questions on the following topics: inflation, risk diversification, compound interest, the benefits, which were formulated in the form of simple tasks.

In case people would have answered 4 correct answers from 4 questions asked, were evaluated as they had high financial literacy. Accordingly, in case they got 2-3 right answers

they would be included in medium while if they would have answered 1 to 0 right answers they would be in the list of low financial literacy.

As a result, according to the study conducted, it turned out that three indices of financial education showed: low (52%), medium (42%) and high (6%).

Nikoloz Kurdiani, Deputy Director General of “TBC Bank” talked about the results of the study: “We have a lot of programs to assist businesses, but until now there was no study that would reveal the dynamics. Accordingly, we have decided to resort to the practice proven worldwide and conduct such a survey using a standard methodology.

The new survey will be carried out in 2 years. Also, we have an idea to carry out such studies once a year.

Anyway, it is important the society to have a tool that would allow to set the level of financial literacy of the population.”

When asked how the people manage their budget expenditures, whether they control it or not, 85% said that they control it, however 15% said that they do not control it at all. Mostly people in Tbilisi manage their budget expenditures, than in the regions. In addition men are less sensitive than women towards financial controlling.

Also when the respondents were asked whether they saved some money in last year 35% answered that they

did it and 65% answered that they did not save any money at all.

It should be also noted that although the trustworthiness of banks is strengthened more and more in each year, anyway the 45% of interviewed people who have answered the question that they have saved some money in previous year still prefer to save money in cash than in banks.

The results of the study will meaningfully help TBC bank to develop future strategy plans in terms of financial education improvement.

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Winter Season in Gudauri is Still Kicking

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Georgian Language to Be Taught in Greece

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Another Pharmaceutical Factory To Launch in Georgia

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Panaskerteli Index: Medication Prices Reduction Tendency is Evident

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The U.S. State Department transmitted The Emerging Young Leaders Award to Georgian Student

April 25, 2016 #143

publicity

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Business

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April 25, 2016 #143

London Hosts Georgian Wines Tasting and the Georgian Supra Event

The Real Wine Fair, the natural wines international exhibition, held in London, the United Kingdom. By support of LEPL National Wine Agency of the Georgian Agriculture Ministry, seven Georgian winemaking companies producing natural wines have taken part in the exhibition – Pheasant’s Tears, Golden Wine, The Nikoladzes’ Marani, Mandili, Iago Wine, Atenuri and Iberieli.

The exhibition has also introduced two Georgian events – tasting of Georgian wines and the Georgian Supra.

Design

Agriculture

Georgian Designers Unveil Clothing Shop of MALAT on Broadway in NY Clothes and accessories produced by Georgian designers are sold at a store on Broadway in New York. The store was co-founded by three Georgians: Ani Purtseladze, Anika Odzelashvili and Nia Odzelashvili.

Ani Purtseladze supervises the business in New York, while Anika and Nia Odzelashvilis manage to combine the business activities in the USA with the life, studies and working in Georgia.

In the interview with the BusinessPressNews, Anika and Nia Odzelashvilis talk about their products and the future business plans.

First Steps Anika Odzelashvili: “The store opened on March 9. The idea arose spontaneously. At one of the evenings, we were dressed up in clothes of a Georgian

designer and the idea was born in that situation to introduce clothing by Georgian designers to others.

It is very difficult here to rent a space. Significant financial background is required for that, as well as administrative documents. You should prove your solvency for this or that specific space you hire. Our partner Ani lives in new-York. She spends major time in the USA. She could prove to have similar background and this factor has contributed to our plans for renting the space. All these efforts required considerable expenses. We have undertaken our business by our own resources”.

Nia Odzelashvili: “As to doing business in New York, the major problem is related to tax regulations, because we do not know them very wekk. Moreover, it is difficult when you do not know

news

Life Saver

Marlboro’s Back

Young Georgians create drone to reduce landmine casualties

Marlboro, the famous brand of Philip Morris, has reappeared in the Georgian market. Marlboro cigarettes are freely sold in the retail network jointly with all other brands.

The resells noted that not Omega Group, but GD Group has delivered a new consignment of cigarettes of the Philip Morris brand. Since now, GD Group will carry out distribution of Philip Morris products. The price of cigarettes has not changed and they have not increased in value, in practice, the resellers assert.

First Wine SPA to Open in Kakheti Schuchmann Wines Georgia winemaking company plans to unveil a wine spa in the company-owned chateau in the village of Kisiskhevi, the Kakheti Region.

The company director Roland Burdiladze noted the SPA procedures include massage, sauna and bathing services and all procedures will be related to wine.

the market, segment. It was very difficult to find a due place there”.

Goods and Svanetian “I Love You” in New York Anika Odzelashvili: “We cooperate with 14 Georgian designers.

We mainly offer handmade goods. Clothes sewed by a specific person is also considered a handmade product. We trade in clothes, accessories and now we have also introduced shoes.

Several designers use Georgian details too”.

The Store was named after the Svanetian word – Malat – I Love YOU. Everybody asks what does this word stand for and we also explain its meaning, where the Svanetian Region is located and so on. Georgians often visit our store, but major part of our clients are foreign citizens”.

Karlo Khutsishvili and Ana Khutsishvili

The Georgian school students have created demining equipment titled “Life Saver”. At this stage the invention needs to find financial supporters. One of the creator of the equipment Karlo Khutsishvili is also the author of another invention. Due to this latter mentioned invention he was invited to the US space center (NASA).

Karlo Khutsishvili says that the equipment can be managed through Ipad. He also adds that the device has more privileges than any other devices.

“My sister Ana, my cousin Tornike Mazmiashvili and I had worked on the project. When we have heard that in each 19 minutes people die due to landmines explosion, it gave us an idea to find the solution how to safe them and their lives”, – says Khutsishvili.

“There are such systems where people are needed to be involved in the demining cases. In our case people are less involved that is rather important fact.”

Life Saver is demining system that is managed through Ipad.

In advance we indicate the coordinates in the Ipad, in order the device to get acquainted where to start demining process.

“It does not need any management, it automatically selects the places in the map where the where the mines will be placed”,says Karlo Khutsishvili.

Business Development and Future Plans: Anika Odzelashvili: “Despite we have not organized active PR campaigns and taken much expense, we are content with the current sales volume. We hope this positive trend will be continued in the future too”.

Nia Odzelashvili:“We received an offer from Los-Angeles. In that period our shop had opened two weeks before. Therefore, we decided to continue development.

However, Los-Angeles remains in our future plans – There is a very good market. At the same time, there is anotehr opportunity to expand our business to a new shopping mall in New York. However, this is not near perspective and we will continue development on the existing basis”.

24-year-old Farmer’s Business in Kutaisi 5 months ago Gegi and Soso got interested in quail farming.

Thus Internet helped them to gather all necessary information.

Nowadays, two friends are the owners of quail farm in Kutaisi.

Gegi Aptsiauri is 24 year old. Having various business plans the choice stopped on the quail farming by now. At first the friends bought the cage, after that they have purchased an incubator and first 500 pieces of eggs. Again through Internet they have managed to find the Quail eggs. Firslty, 300 quails were incubated, after this from 1 300 eggs 900 were hatched. Currently they are having about 1 000 quails in the farm.

Gegi and Soso have a big hope that they will grant 5000 GEL from the government program “Produce in Georgia”. Thus, after this happens, they will expand their business. The friends plan to transfer the farm in the village of Kvilishori that is located in Tkhaltubo Region. In this area they have even bigger plans. Gegi Aptsiauri is too far from agricultural field by standpoint of his profession. He is currently studying doctoral program at Aviation University. Before he studied at Technical University, in Ukraine he got specialized in theoretical and applied mechanics.

healthcare

April 25, 2016 #143

Meeting of the Healthcare Reform Council was held with participation of the Ministry and Global alliance representatives

Joint Council Summarized Results of One-Year Work of Global Alliance and the Ministry Healthcare

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ernard Kouchner, the Chair of the Global Alliance Supervisory Board, Jean-Elie Malkin, President of Global Alliance, Valerie Kvaratskhelia, Deputy Minister and the other Council members attended the meeting.

For the purpose of increasing efficiency of the healthcare system, the participants reviewed documents prepared within the framework of the agreement signed between the Georgian Government and Global Alliance.

„The first phase of our cooperation can already be considered as successfully completed.

The set of documents is prepared that represents not only recommendations or initiatives just written on a paper, but also a practical and a comprehensive program, which covers all areas of reform implementation. This is the strategy for development of the Georgian healthcare system as well as its specific action plan”, - said Bernard Kouchner at the meeting and noted that this was quite ambitious project, which should change the healthcare system in Georgia: “ The primary document is already prepared, as well as the proposal, which describe all those items the fulfillment of which is to be decided by the Ministry. The main objective of the process is that all Georgian citizens have access to healthcare services and to primary healthcare.

Receipt of high-quality services depends on qualification of healthcare personnel, their remuneration, administrative and economic factors. The first stage was successfully completed and now we face the second stage – the implementation of those proposed 14 items the implementation and consideration of which is within the competence of the Ministry.”

Kouchner emphasized importance of the recommendations, which were based on the international best practice.

Strategic documents cover programs for cost-effective management, development of primary and electronic healthcare innovative models, disease control and monitoring, creation of staff motivation systems. Draft laws were prepared and specific mechanisms presented, which would increase access to healthcare services. „At the summarizing meeting of the Council we addressed the necessity to continue the healthcare reform and increase the system efficiency, we reviewed all aspects of our cooperation. Certain documents were submitted, which will allow us to make the final decision.

I would like to thank our consultants and the Ministry staff for performed work, who were working during the 24 hours to achieve the desired outcome”, said Valeri Kvaratskhelia.

It is important that the documents provided by the consultation group cover several key areas. Mr. Kvaratskhelia stressed the DRG system of payments and explained: “We already passed certain stage in universal healthcare and now it is time to make it cost-effective.

In such case DRG is the irreplaceable form of payment. Consultations given by experts in primary healthcare are also significant. As you know, primary healthcare in Georgia, in fact, has to be created again. Everyone who has a headache visits hospital. Treatment in this type of medical institutions is much more expensive and increases costs. Therefore, primary healthcare reform is the key.

Regulations in the area of pharmacy are also important. Amendments need to be introduced to the Law on Pharmacy.

Therefore, we made decision to work on drafting a new law in cooperation with consultants, since we can afford such luxury. In addition, there is no Law in the country on medical items, which is already written by consultants and we will continue working on that.”

Jean-Elie Malkin the President of Global alliance made emphasis on the most important aspect of the reform.

“Our goal was to prepare comprehensive reform program and not just separate components of it. I am glad that in cooperation with the Ministry and personally with great support and efforts of Mr. Sergeenko, the Minister, we managed to prepare such a complex program, in case of implementing which the access to healthcare services, quality medicines and diagnostics will increase for the Georgian population. The first stage is successfully completed. Both the Ministry and we performed significant work.

We closely cooperate with our Georgian partner, the Ministry of Healthcare. The major task was to propose those 14 items, which we developed. Now the priority should be given to funding, provision of high – quality service and primary healthcare development. We have to work on implementation of the proposed recommendations,” – said Malkin.

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Price of Medicine Chest for First Medical Aid Totaled 155 GEL in March

Georgia, Gilead Signed 10-Year Agreement to Eliminate C Hepatitis Virus Deputy Minister of Healthcare of Georgia Mr. Valeri Kvaratskhelia and the Vice President, Greg Alton has signed an agreement between Georgian government and pharmaceutical giant Gilead.

Long term contract will provide Georgia with continuous number of C hepatitis medications until absolute elimination.

John Martin, General director of the United States Centers for Disease Control, representatives of Spain Embassy and other officials attended the ceremony.

Gilead chose Georgia as a test site partly because the nation has the world’s third-largest number of HCV-positive people, behind Egypt and Mongolia. The country’s small population and pre-existing medical infrastructure also made it ideal for the experiment. An estimated 7 percent of the nearly 5 million adults in Georgia have a chronic HCV infection.

The goal of the study is to prove to governments and health agencies worldwide how much investment into new drugs can change the landscape of hep C.

The HealthCare Platform continues publishing the pharmacy network research report as part of the Panaskerteli Pharma monitoring program.

After the medicine chest for babies, the organization has explored the list of drugs and prices, that are necessary and recommended for initial care.

Timely and proper initial care has decisive role for human life. Therefore, It is necessary to keep such medications as: Medications against Intoxication: Rehydron Optim – 26.00 GEL Festal – 1.76 GEL Drotaverine – 3.92 GEL Analgetic: Ibuprofen – 2.50 GEL Ketorolak – 9.00 GEL Drugs against Coffin and Fever: Salbutamol Sulfat Inhalation Aerosol – 7.10 GEL Paracetamol – 0.35 GEL Ambroxyl – 1.3 GEL Antihistamine: Citerizine – 2.50 GEL Blood Pressure Drugs: Captopril – 4.75 GEL Adipin – 29.40 GEL Heart Medications: Corsiz – 1.50 GEL Validolum – 0.44 GEL Ammonia Solution – 1.01 GEL Co-Enalapril – 5.30 GEL Sleeping Aid: Somna-Ritz - 5.00 GEL

Antiseptic: Sterile Bandage – 1.04 GEL Cotton – 1.00 GEL Adhesive Plaster – 1.00 GEL Brilliant Green – 0.30 GEL Hydrogen Dioxide – 1.25 GEL Iodine (Betadine) – 0.51 GEL Turmanidze Ointment – 4.99 GEL Coal (white carboactive) – 3.49 GEL Oxolinic Ointment – 1.20 GEL Injection Water – 0.80 GEL Accessories: Phonendoscope – 12.80 GEL Disposable Medical Gloves – 0.53 GEL Scissors- 2.95 GEL Thermometer – 24.80 GEL Total: 154.45 GEL The HealthCare Platform has explored the list and price of medications for a medicine chest of first medical aid at four leading pharmacy networks.

The organization has examined 23 medications and determined that the March price of medicine chest for first medical aid under the Panaskerteli Pharmacy program made up 154.45 GEL. Jointly with the Association of Young Financier and Businessmen (AYFB), the HealthCare Platform continues exploration of medicine chests for various segments of consumers and will supervise changes in prices in the Georgian pharmaceutical market.

Price of Family Medicine Cabinet Totaled 173 GEL in March

The HealthCare Platform has finished defining the list and prices of medications required for the family medicine cabinet. The examination work was carried out as part of the Panaskerteli Pharma monitoring campaign.

After exploration of a minimum set of medications for the categories of babies, children, first medical aid, the Healthcare Platform has also examined a necessary set of preparations and accessories for the family medicine cabinet.

The organization has identified 29 most required and consumable medications (including accessories) and their prices are as follows: The Panaskerteli Family Medicine Cabinet Heart Disease Drugs: Corsiz – 1.50 GEL Validol – 0.44 GEL Ammonia Solution – 1.01 GEL Co-Enalapril – 5.30 GEL Anelgetic and Drugs f for Fever: Paracetamol – 0.35 GEL Ibuprofen – 2.50 GEL Ketorolak – 9.00 GEL Ambroxol – 1.30 GEL Eyedrops: Albutsid – 2.00 GEL Otipax – 7.20 GEL Intestine: Rehydron Optim – 26.00 GEL Festal – 1.76 GEL Drotaverine – 3.92 GEL Activated Charcoal (white activated carbon) – 3.49 GEL

Antihistamine: Cetirizine – 2.50 GEL Antiseptic: Sterile bandage – 1.04 GEL Cotton – 1.00 GEL Brilliant Green – 0.30 GEL Hydrogen Dioxide – 1.25 GEL Iodine (Betadine) – 0.51 GEL Cohesive Bandage – 1.00 GEL Turmanidze Ointment – 4.99 GEL Blood Pressure Drugs: Captopril – 4.75 GEL Adipin – 29.40 GEL Accessories: Scissors – 2.95 GEL Disposable Medical gloves – 0.80 GEL Thermometer – 24.80 GEL Blood Pressure Meter – 29 GEL Injection Water (30g) – 0.17 GEL Total: 172.23 GEL The HealthCare Platform has identified prices of the required medications at four leading pharmacy networks.

The price of 29 medications and accessories marked 172.23 GEL. The Panaskerteli Pharmacy continues monitoring of the most required medications in various consumer segments and supervising price tendencies on the market.

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publicity

April 25, 2016 #143

World news

April 25, 2016 #143

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Quotes

“ President Recep Tayyip Erdoğan and Prime Minister Ahmet Davutoğlu attended this year’s opening ceremony.

Turkey’s first world botanical expo kicks off

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he 2016 World Botanic EXPO, one of the largest horticultural shows in the world, kicked off with an official ceremony on April 22 in Turkey’s Mediterranean resort city of Antalya.

President Recep Tayyip Erdoğan and Prime Minister Ahmet Davutoğlu attended this year’s opening ceremony.

The World Botanic EXPO, which is the first hosted by Turkey in the event’s 160-year history, will last six months, April to October, and will take place on a sprawling, 121-hectare exhibition site.

The expo, themed “Flowers and Children,” is meant to promote Turkish history and cultural diversity as well as Turkey’s rich agricultural and economic potential. Reflecting this, the slogan of the event is “A green world for future generations.”

It features national and international events such as concerts, congresses and symposiums, dance shows, musicals, plays, workshops, streets shows and special events for national days and the holy

month of Ramadan.

Up to 8 million visitors are expected to visit the six-month event. Beside green areas, the expo will feature “Turkey’s Eiffel Tower,” a lake, a biodiversity course, a children’s island, a glass bridge, an agriculture and biodiversity museum, a science and technology center for children as well as food courts, amphitheaters, watermills, and gardens from participating countries.

The expo also displays horticultural varieties and products from abroad, especially vegetation and green culture.

The expo will boast 25,000 trees from 120 different species. Besides a 650,000square-meter green field, there is an 80-square-meter lake on the exhibition site. Some 300,000 square meters are reserved for visitors. More than 50 countries are expected to participate in the expo, including China, Japan, Nepal, Sierra Leone, Tanzania, Qatar, Uganda, Mexico, Zimbabwe, Burundi, the Netherlands, Germany, Hong Kong, Senegal and South Africa, to name but a few.

When enough people care about autism or diabetes or global warming, it helps everyone, even if only a tiny fraction actively participate

”

Seth Godin

Armenia BP: TANAP to turn poverty is Turkey into energy at 76% hub in region According to the World Bank (WB) estimates, those in the Republic of Armenia (RA) who spend less than 5 US dollars a day constitute 76 percent of the country’s population; this is noted in the recent WB report, according to 168 Zham daily newspaper. “And the WB considers those who spend less than 5 dollars a day to be poor. “The thing is that the WB presents the poverty level with two separate standards. One, from the viewpoint of spending 2.5 dollars a day; the other, from the viewpoint of spending 5 dollars a day. From the viewpoint of [spending] 2.5 dollars, the poverty level in Armenia amounted to 26%, in 2014.

“According to the RA National Statistical Service [(NSS)], poverty rate in the republic amounted to 30%, at the end of 2014 (2 percentage points less, as compared to 2013).

Same Level of Corruption Recorded in Russian, U.S. Businesses – Survey

Azerbaijan to reduce gas consumption thanks to wind farms in Caspian Sea

hirty-four percent of respondents in Russia and and the United States agree that bribery and corruption are widespread in their country, a survey by multinational financial services company EY reported.

The survey results show business professionals in both countries agreed that corruption in business was widespread in their respective nations.

EY — better known as Ernst & Young.

— conducts annual investigations into economic corruption worldwide. The 14th annual survey was conducted from October 2015 to January 2016 by global market research agency Ipsos MORI. They held 2,825 interviews in a sample of the largest companies in 62 countries and territories.

In the survey’s foreword, global leader of the fraud investigation David Stulb wrote: “There remains a worryingly high tolerance or misunderstanding of conduct that can be considered inappropriate.”

In last year’s EY survey, 48 percent of Russian respondents said that corruption was a widespread issue in their industry.

“The Russian authorities are con-

Construction of wind farms on the platforms in the Caspian Sea will save about 200,000 cubic meters of gas per year, Akim Badalov, head of the State Agency for Alternative and Renewable Energy Sources, told reporters Apr. 22 in Baku.

This project, as the offshore Oil Rocks field, will be the first in the world, said Badalov.

“Earlier, we planned to build a power plant in the sea without using platforms,” he noted adding that then the project’s cost would exceed one billion Azerbaijani manats. Badalov said that the construction of wind farms on the platforms will save about 500-550 million manats, therefore, several Chinese companies are interested in this project. The wind farm will be built on the platforms in the Caspian Sea between the islands of Pirallahi and Chilov and its capacity will be 200 megawatts.

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tinuing to develop and perfect legislation in the fight against corruption,” business newspaper RBC reported Friday, citing Dmitry Zhigulin, a partner at EY. Andrei Yakovlev of the Higher School of Economics said that the recorded improvement may not only come from a real decrease in the level of corruption but also the method in which the survey was carried out. “The sample size used by EY was not that big and they focused on larger companies. They have made some rather large claims based on a small number of responses,” he said, RBC reported.

A 2016 survey by multinational audit firm PricewaterhouseCoopers (PwC) reported that the economic crime rate in Russia fell by 20 percent as a result of anti-fraud measures. Thirty percent of respondents were affected by bribery and corruption, and 48 percent of respondents have experienced an economic crime in the last 48 months.

Forensic services leader Jeremy Outen wrote in the PwC foreword that while economic crimes remains a serious problem for business in Russia, a positive trend has been emerging.

BP’s spokesman stressed that the construction of the TANAP pipeline will turn Turkey into an energy hub in the region.

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rans-Anatolian gas pipeline will play an important role in ensuring the energy security of Europe, said Bud Fackrell, the spokesman of the BP Turkey to the Turkish newspaper Pusulahaber on April 22.

BP’s spokesman stressed that the construction of the TANAP pipeline will turn Turkey into an energy hub in the region.

Fakrell also stated the strategic importance of the Azerbaijani-initiated Southern Gas Corridor project.

In addition, Saltuk Duzyol, TANAP General Manager said to Azertac that all opportunities will be used for commissioning TANAP before June 2018.

He said that tender with an approximate cost of $4.5 billion is complete and agreements have been signed within the framework of the project. So far, welding of pipes on the 440-kilometer section of the pipeline has been finalized.

TANAP project envisages transporting gas from Azerbaijani Shah Deniz field via the Georgian-Turkish border to the western border of Turkey onwards Greece where it will be connected to the Trans Adriatic Pipeline.

The Shah Deniz gas will be sent to Turkey in 2018. After the completion of the TAP pipeline, this gas will be transported to the Europe approximately at the beginning of 2020.

Azerbaijan’s state owned energy company SOCAR owns 58 percent shares in TANAP, while Botas and BP have 30 percent and 12 percent of

shares respectively.

The Southern Gas Corridor project is a priority for the EU and it will provide transportation of 10 billion cubic meters of Azerbaijani gas from the Caspian region to Europe via Georgia and Turkey.

At the initial stage, the gas will be produced within the second phase of Azerbaijani gas condensate field Shah Deniz which is considered as the main source for the Southern Gas Corridor.

At later stages, other sources can be connected to the pipeline.

The gas that will be produced within the second development stage will be exported to Turkey and to European markets through the expansion of the South Caucasus gas pipeline and the construction of TANAP and TAP. It is the main investment project of Azerbaijan.

Since the EU tries to diversify away from one main gas supplier to its markets and tries to reduce its dependence on Russian gas after the ties between these two has become tense due to issues related to Ukraine crisis and use of gas as political tool, the realization of the SGC project will contribute to the enhancement of the energy security of the EU. Albania, Bulgaria and some other European countries are also earlier expressed their willingness to be connected to the TAP pipeline.

Moreover, the realization of the SGC project will increase Azerbaijan’s role in the region and bring it closer to the EU.

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publicity

Georgian Railway Urges You to Cross the Railway Track in Only Specially Alloted Zones and Take Care of Your Life!

Crossing the railway track in the unpermitted places violates article 106 of the Georgian Code of Administrative Offences and this lawbreaking results in due sanctions.

April 25, 2016 #143

April 25, 2016 #143

Embassy United States of America Embassy 11 Balanchivadze St., Dighomi Dstr., Tbilisi Tel: 27-70-00, 53-23-34 E-mail: tbilisivisa@state.gov; askconsultbilisi@state.gov United Kingdom of Great Britain and Northern Ireland Embassy 51 Krtsanisi Str., Tbilisi, Tel: 227-47-47 E-mail: british.embassy.tbilisi@fco.gov.uk Republic of France Embassy 49, Krtsanisi Str. Tbilisi, Tel: 272 14 90 E-mail: ambafrance@access.sanet.ge Web-site: www.ambafrance-ge.org Federal Republic of Germany Embassy 20 Telavi St. Tbilisi Tel: 44 73 00, Fax: 44 73 64 Italian RepublicEmbassy 3a Chitadze St, Tbilisi, Tel: 299-64-18, 292-14-62, 292-18-54 E-mail: embassy.tbilisi@esteri.it Republic of Estonia Embassy 4 Likhauri St., Tbilisi, Tel: 236-51-40 E-mail: tbilisisaatkond@mfa.ee Republic of Lithuania Embassy 25 Tengiz Abuladze St, Tbilisi Tel: 291-29-33 E-mail: amb.ge@urm.lt Republic of Latvia Embassy 16 Akhmeta Str., Avlabari, 0144 Tbilisi.

E-mail: embassy.georgia@mfa.gov.lv Greece Republic Embassy 37. Tabidze St. Tbilisi Tel: 91 49 70, 91 49 71, 91 49 72 Czech RepublicEmbassy 37 Chavchavadze St. Tbilisi ;Tel: 291-67-40/41/42 E-mail: czechembassy@gol.ge Web-sait: www.mzv.cz Japan Embassy 7 Krtsanisi St. Tbilisi Tel: +995 32 2 75 21 11, Fax: +995 32 2 75 21 20 Kingdom of Sweden Embassy 15 Kipshidze St. Tbilisi Tel: +995 32 2 55 03 20 , Fax: +995 32 2 22 48 90 Kingdom of the Netherlands Embassy 20 Telavi St. Tbilisi Tel: 27 62 00, Fax: 27 62 32 People’s Republic of China Embassy 52 Barnov St. Tbilisi Tel: 225-22-86, 225-21-75, 225-26-70 E-mail: zhangling@access.sanet.ge Republic of Bulgaria Embassy 15 Gorgasali Exit, 0105 Tbilisi, Georgia Tel: +995 32 291 01 94; +995 32 291 01 95 Fax: +99 532 291 02 70 Republic of Hungary Embassy 83 Lvovi Street, Tbilisi Tel: 39 90 08; E-mail: hunembtbs@gmail.com State of Israel Embassy 61 Agmashenebeli Ave. Tbilisi Tel: 95 17 09, 94 27 05 Embassy of Swiss Confederation’s Russian Federation Interests Section Embassy 51 Chavchavadze Av., Tbilisi Tel: 291-26-45, 291-24-06, 225-28-03 E-mail: RussianEmbassy@Caucasus.net Ukraine Embassy 75, Oniashvili St., Tbilisi Tel: 231-11-61, 231-12-02, 231-14-54 E-mail: ukraina_pu@wanex.net; emb_ge@mfa.gov.ua Consular Agency: 71, Melikishvili St., Batumi Tel: (8-88-222) 3-16-00/ 3-14-78 Republic of Turkey Embassy 35 Chavchavadze Ave., Tbilisi Tel: 225-20-72/73/74/76 embassy.tbilisi@mfa.gov.tr Consulate General in Batumi 9 Ninoshvili Street, Batumi Tel: 422 25 58 00 consulate.batumi@mfa.gov.tr Republic of Azerbaijan Embassy Kipshidze II-bl . N1., Tbilisi Tel: 225-26-39, 225-35-26/27/28 E-mail: tbilisi@mission.mfa.gov.az Address: Dumbadze str. 14, Batumi Tel: 222-7-67-00; Fax: 222-7-34-43 Republic of Armenia Embassy 4 Tetelashvili St. Tbilisi Tel: 95-94-43, 95-17-23, 95-44-08 E-mail: armemb@caucasus.net Web: www.armenianembassy.ge Consulate General, Batumi Address: Batumi, Gogebashvili str. 32, Apt. 16 Kingdom of Spain Embassy Rustaveli Ave. 24, I floor, Tbilisi Tel: 230-54-64 E-mail: emb.tiflis@maec.esRomania Embassy

Tbilisi Guide 7 Kushitashvili St., Tbilisi Tel: 38-53-10; 25-00-98/97 E-mail: ambasada@caucasus.net Republic of Poland Embassy 19 Brothers Zubalashvili St., Tbilisi Tel: 292-03-98 Email:tbilisi.amb.sekretariat@msz.gov.pl Web-site: www.tbilisi.polemb.net Republic of Iraq Embassy Kobuleti str. 16, Tbilisi Tel: 291 35 96; 229 07 93 E-mail: iraqiageoemb@yahoo.com Federative Republic of Brazil Embassy Chanturia street 6/2, Tbilisi Tel.: +995-32-293-2419 Fax.: +995-32-293-2416 Islamic Republic of Iran Embassy 80, I.Chavchavadze St. Tbilisi, Tel: 291-36-56, 291-36-58, 291-36-59, 291-36-60; Fax: 291-36-28 E-mail: iranemb@geo.net.ge United Nations Office Address: 9 Eristavi St. Tbilisi Tel: 225-11-26/28, 225-11-29/31 Fax: 225-02-71/72 E-mail: registry.geo@undp.org Web-site: www.undp.org International Monetary Fund Office Address : 4 Freedom Sq., GMT Plaza, Tbilisi Tel: 292-04-32/33/34 E-mail: kdanelia@imf.org Web-site: www.imf.ge Asian Development Bank Georgian Resident Mission Address: 1, G. Tabidze Street

Freedom Square 0114 Tbilisi, Georgia Tel: +995 32 225 06 19 e-mail: adbgrm@adb.org; Web-site: www.adb.org World Bank Office Address : 5a Chavchavadze Av., lane-I, Tbilisi, Georgia ; Tel: 291-30-96, 291-26-89/59 Web-site: www.worldbank.org.ge Regional Office of European Bank for Reconstruction and Development Address: 6 Marjanishvili St. Tbilisi Tel: 244 74 00, 292 05 13, 292 05 14 Web-site: www.ebrd.com Representation of the Council of Europe in Georgia Address : 26 Br. Kakabadze, Tbilisi Tel: 995 32 291 38 70/71/72/73 Fax: 995 32 291 38 74 Web-site: www.coe.ge Embassy of the Slovak Republic Address: Chancery: 85 Irakli Abashidze St. Tbilisi, 0162 Georgia Consular Office: 38 Nino Chkheidze St. Tbilisi, 0102 Georgia Phone: 2 222 4437, 2 296 1913 e-mail: emb.tbilisi@mzv.sk

Hotels in Georgia TBILISI MARRIOTT Tbilisi , 13 Rustaveli Ave. Tel: 77 92 00, www.marriott.com COURTYARD MARRIOTT Tbilisi , 4 Freedom Sq. Tel: 77 91 00 www.marriott.com RADISSON BLU HOTEL, TBILISI Rose Revolution Square 1 0108, Tbilisi Tel: +995 32 402200 radissonblu.com/hotel-tbilisi RADISSON BLU HOTEL, BATUMI Ninoshvili Str. 1, 6000 Bat’umi, Georgia Tel: 8 422255555 http://radissonblu.com/hotel-batumi SHERATON METECHI PALACE Tbilisi , 20 Telavi St. Tel: 77 20 20, www.starwoodhotels.com SHERATON BATUMI 28 Rustaveli Street • Batumi Tel: (995)(422) 229000 www.sheratonbatumi.com Holiday Inn Tbilisi Business hotel Addr: 1, 26 May Square Tel: +995 32 230 00 99 E-mail: info@hi-tbilisi.com Website: http://www.hi-tbilisi.com Betsy’s Hotel With Marvellous Tbilisi Views Addr: 32/34 Makashvili St. Tbilisi Tel: +995 32 293 14 04; +995 32 292 39 96 Fax: +995 32 99 93 11 E-mail: info@betsyshotel.com Website: http://www.betsyshotel.com

Restaurants Corner House Tbilisi, I. Chavchavadze ave. 10, Tel: 0322 47 00 49; Email: contact@cornerhouse.ge Restaurant Barakoni Restaurant with healthy food.

Georgian-European Cuisine Agmashenebeli Alley 13th Phone: 555 77 33 77 www.barakoni.com CHARDIN 12 Tbilisi , 12 Chardin St. , Tel: 92 32 38 Cafe 78 Best of the East and the West Lado Asatiani 33, SOLOLAKI 032 2305785; 574736290 BREAD HOUSE Tbilisi , 7 Gorgasali St. , Tel: 30 30 30 BUFETTI - ITALIAN RESTAURANT Tbilisi , 31 I. Abashidze St. , Tel: 22 49 61 DZVELI SAKHLI Tbilisi , 3 Right embankment , Tel: 92 34 97, 36 53 65, Fax: 98 27 81 IN THE SHADOW OF METEKHI Tbilisi , 29a Tsamebuli Ave. , Tel: 77 93 83, Fax: 77 93 83 SAKURA - JAPANESE RESTAURANT Tbilisi , 29 I. Abashidze St. , Tel: 29 31 08, Fax: 29 31 08 SIANGAN - CHINESE RESTAURANT Tbilisi , 41 Peking St , Tel: 37 96 88 VERA STEAK HOUSE Tbilisi , 37a Kostava St , Tel: 98 37 67 BELLE DE JOUR 29 I. Abashidze str, Tbilisi; Tel: (+995 32) 230 30 30 VONG 31 I. Abashidze str, Tbilisi Tel: (+995 32) 230 30 30 BRASSERIE L’EXPRESS 14 Chardin str, Tbilisi Tel: (+995 32) 230 30 30 TWO SIDE PARTY CLUB 7 Bambis Rigi, Tbilisi Tel: (+995 32) 230 30 30

Cinemas AKHMETELI Tbilisi. “Akhmeteli” Subway Station Tel: 58 66 69 AMIRANI Tbilisi. 36 Kostava St. Tel: 99 99 55, RUSTAVELI Tbilisi. 5 Rustaveli Ave. Tel: 92 03 57, 92 02 85, SAKARTVELO Tbilisi. 2/9 Guramishvili Ave. Tel: 8 322308080,

15 SH. RUSTAVELI STATE THEATRE Tbilisi. 17 Rustaveli Ave. Tel: 93 65 83, Fax: 99 63 73 TBILISI STATE MARIONETTE THEATRE Tbilisi. 26 Shavteli St. Tel: 98 65 89, Fax: 98 65 89 Z. PALIASHVILI TBILISI STATE THEATRE OF OPERA AND BALLET Tbilisi. 25 Rustaveli Ave. Tel: 98 32 49, Fax: 98 32 50

Galleries ART GALLERY LINE Tbilisi. 44 Leselidze St. BAIA GALLERY Tbilisi. 10 Chardin St. Tel: 75 45 10 GALLERY Tbilisi. 12 Erekle II St. Tel: 93 12 89

Real Estate International Real Estate Company (IREC) Tbilisi. 9 P. Aslanidi St. Tel: +995 32 238 058 Mob: 599 95 76 71 Email: Info@irec.ge www.irec.ge

GSS Car rental offers a convenient service for those who are interested in renting car in Georgia. Rental fleet mainly consist of Japanese made SUV’s, the company has various models of cars including sedans and minivans which are in good technical condition.

Contact information: Email: info@gsservices.ge.

Address: Shalva Dadiani 10

Akhvledianis Khevi N13, Tbilisi, GE. +995322958377; +995599265432

Theatres A. GRIBOEDOV RUSSIAN STATE DRAMA THEATRE Tbilisi. 2 Rustaveli Ave. Tel: 93 58 11, Fax: 93 31 15 INDEPENDENT THEATRE Tbilisi. 2 Rustaveli Ave. Tel: 98 58 21, Fax: 93 31 15 K. MARJANISHVILI STATE ACADEMIC THEATRE Tbilisi. 8 Marjanishvili St. Tel: 95 35 82, Fax: 95 40 01 M. TUMANISHVILI CINEMA ACTORS THEATRE Tbilisi. 164 Agmashenebeli Ave. Tel: 35 31 52, 34 28 99, Fax: 35 01 94 METEKHI – THEATRE OF GEORGIAN NATIONAL BALLET Tbilisi. 69 Balanchivadze St. Tel: (99) 20 22 10 MUSIC AND DRAMATIC STATE THEATRE Tbilisi. 182 Agmashenebeli Ave. Tel: 34 80 90, Fax: 34 80 90 NABADI - GEORGIAN FOLKLORE THEATRE Tbilisi. 19 Rustaveli Ave. Tel: 98 99 91 S. AKHMETELI STATE DRAMATIC THEATRE Tbilisi. 8 I. Vekua St. Tel: 62 59 73

The Best Georgian Honey of chestnuts,acacia and lime flowers from the very hart of Adjara Matchakhela gorge in the network of Goodwill, Nikora and smart

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April 25, 2016 #143