Caucasus Business Week #148

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June 6, 2016 #148

June 6, 2016, Issue 148 - www.cbw.ge

Interview Israeli Society Appreciates Absence of Bureaucratic Barriers in Georgia Pg. 6

Banking News Terabank Unveils Renovated Branch on Pekin Avenue in Tbilisi

Pg. 8

Bank Importance of Gov’t Programs for Small and Medium Business Development Pg. 7 ProCredit Bank Loses Case against Employee

Used Vehicles’ Ratio in Georgia’s Vehicle Fleet is 99% Sector Suffers from Absence of Regulations

Pg. 5

In the previous week Ana Machitadze, the former employee of ProCredit Bank, won a legal dispute against ProCredit Bank.

Her interests were defended by Archil Kaikatsishvili, head of the Association of Young Barriers.

The dispute has lasted for more than 2 years. On May 27, 2016 the Chamber of Civil Affairs of Tbilisi Court of Appeals, chaired by Besarion Tabaghua, thoroughly satisfied the action submitted by plaintiff Ana Machitadze against JSC ProCredit Bank. According to the court decision: a) The decree issued by JSC ProCredit Bank director Ketevan Khuskivadze on April 29, 2014 on firing Ana Machitadze was abolished; b) Ana Machitadze was restored on the position of an individual clients consultant at the Vake service center of JSC ProCredit Bank; c) JSC ProCredit Bank was imposed to pay a compensation to Ana Machitadze for the forcibly missed workdays, for the period starting April 29, 2014 up to the court decision; d) JSC ProCredit Bank was imposed to cover trial and pre-trial expenditures taken by the plaintiff.

Pg. 4

Up Coming Gated Community Krtsanisi Residence Urban Development collaboratively with Cushman & Wakefield | Veritas Brown have reached and signed a beneficial long-term agreement on an exclusive base for the upcoming Krtsanisi Residence development. The project is spread over 26, 000 Square meters in Krtsanisi Residential Area. The address was particularly selected for its incomparable combination of geographical location and climate zones. The development comprises limited number of exquisitely designed community that incorporates Town Houses, Lofts and Villas with magnificent modern exterior. The project is scheduled to be completed in May 2017.

While capturing the premium, ecologically friendly, secured and private environment the development is just in 3 minutes drive from the Old City.

Pg. 11

2 GOVERNMENT

NEWSROOM Georgia has a new Education Minister Prime Minister Giorgi Kvirikashvili held a special briefing and announced Aleksandre Jejelava was Georgia’s new Minister of Education. ejelava has about 20 years’ experience in management through roles in Georgia and abroad.

Georgia-China $9m deal will improve health of Georgian people A special agreement was signed in Georgia’s capital Tbilisi between Georgia’s Finance Minister Nodar Khaduri and China International Trade Representative and Vice Minister of Commerce Zhong Shan.

ECONOMY

Inflation Rate in Georgia on May 2016 In May 2016 the monthly inflation rate amounted to -0.4 percent in Georgia. Compared to the same month of previous year the Consumer Price Index change (annual inflation rate) posted a 2.1 percent increase.

Tourism Administration Announced About fixing the Highest Number of Visitors According to the department, 522,359 international travelers have visited Georgia in May, 2016, the growth is 14,9% comparing to the same period of the previous year.

BANKING

Number of Overdue Loans Increased in April According to the National Bank’s monthly review, in April 2016, the number of overdue loans has increased by GEL 30 million 500 thousand and amounted to GEL 355 million 300 thousand.

Innovative option is added to VTB Bank’s Mobile Pay VTB Bank announced about appending new technological option to Mobile Pay. According to the bank, money transfer is now available by putting a mobile device closer to another one.

BUSINESS

EU Facilitates Tea Plantation Rehabilitation Georgian tea producers, representatives of state institutions, tea cooperatives and tea plantation rehabilitation companies will meet in the country’s capital Tbilisi to discuss the state program on tea plantation rehabilitation, called “Georgian Tea”.

10 Mln USD To Be Funded in Poti for the Textile Factory Construction The company “Adjara Textile” is about to open new plant in Poti. Initially, around 300 persons will be employed in the factory, however, it is foretasted to increase the number of employees till 3000.

COMPANY

Inter RAO Sells 100% Stake in Georgian Mtkvari Energy Mtkvari Thermal Power Plant is located near the town of Gardabani. It uses two 300 MW power generation units built in the 1990s and firing natural gas as their primary fuel.

Economy Minister: Georgia’s economy will grow 3% and more in 2016 Georgia’s economy will grow more than three percent, believes Georgia’s Economy Minister Dimitry Kumsishvili, citing recent positive indicators as the basis for his encouraging forecast for the local economy.

While presenting April’s economic indicators Kumsishvili said Georgia’s economy had experienced positive growth since February and he believed this trend would continue.

In April 2016 the country’s estimated real Gross Domestic Product (GDP) growth rate reached 4.3 percent year-on-year (y/y), while the estimated real GDP average growth equalled 2.3 percent for Q1 2016 y/y and 2.8 percent for the first four months of 2016 y/y.

Kumsishvili identified several sectors that saw the most increased GDP:

- Production of construction materials (25 percent); - Hotel and restaurant sector (25 percent); - Construction (15 percent); - Production of food and drinks (10 percent).

The Economy Minister further explained that Georgia’s economic growth was also caused by the Government’s efforts to encourage local businesses.

Inflation is reducing and in April it reached 3.2 percent. Reducing the inflation rate was caused by minimising the negative expectations in the Georgian economy. This is gradually reflecting on our citizens pockets – they now will pay less while buying products,” said Kumsishvili.

Georgia’s reducing unemployment was also mentioned by Kumsishvili. Last year the annual unemployment rate in Georgia de-

clined by 0.4 percentage points and equalled 12 percent. The National Statistics Office of Georgia (Geostat) said this was the lowest level in the past 12 years.

Kumsishvili highlighted the positive effect of the strengthening the Georgia’s national currency, the Lari (GEL). He said the Lari had strengthened 15 percent since March and one of the major reasons for this was regulating Georgia’s export-import balance.

Geostat said Georgia’s trade deficit equalled $2.071 million in January-April, which made up 63 percent of total trade turnover.

Growing tourist numbers was also another driving force for the Georgian economy and its currency.

Kumsishvili said Georgia received $92 million more income from tourists in the first four months of 2016 than in the same time in 2015.

New Tax Code comes into force Georgia enjoys simplified and liberal Tax Code A new Tax Code that aims to improve the investment climate, attract more investors and additional capital to Georgia has come into force.

From now on Georgia will enjoy the benefits of a more simplified and liberal Tax Code, announced Georgia’s Ministry of Finance.

Parliament of Georgia approved amendments to the Tax Code at its third reading on May 13 with 85 votes in favour and none against, and the law came into force yesterday.

The majority of changes are now in place while one part of the Tax Code Law which modifies Georgia’s income tax rules, will come into play in January 2017.

Georgia’s economic team created the amendments to align the country’s tax system with the Corporate Income Tax (CIT) – the Estonian Taxation Model. Under the Estonian Taxation Model all businesses, except profit-sharing businesses, should be exempt from income tax.

More specifically, if a company reinvests their profit they will no longer be obliged to pay income tax. In other words if a private entity does not receive a dividend from his/ her company, he/she will not pay income tax meaning he/she will not pay tax for the reinvested money.

A dividend is a sum of money typically paid annually by a company to its shareholders out of its profits.

However, Georgia’s tax rules will

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June 6, 2016 #148

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not change for companies or individual entrepreneurs who are prohibited from profit-sharing. This includes individual entrepreneurs, insurance and micro financing organisations, banks, public legal entities and nonprofit organisations.

Georgia’s Finance Ministry announced the new Tax Code would bring the following positive results to the country: - Will accelerate economic growth; - Will increase the access of companies to financial resources; - Will increase the liquidity of business assets; - Will increase investments in Georgia; - Will increase the amount of capital in Georgia; - Will increase the sustainability of businesses during times of crisis; - Will reduce external financial constraints; - Business will have more opportunities for development; - Will establish a more attractive climate for starting a business and production in Georgia; Will simplify tax accounting and administration.

Furthermore the Ministry said the amendments to the Tax Code will cause the following changes: - During tax disputes, confiscation of bank accounts will happen only if this is decided by the court.

Until now the Revenue Service had the right to sequester bank accounts without the court’s involvement.

- Imported goods will be exempt from Value Added Tax (VAT), which will simplify tax administration; - About 100,000 taxpayers will be exempt from tax debts. More specifically taxpayers will not pay tax debts that were accrued before 2011 and will not pay tax sanctions which were accrued before 2013; - Tax system will be controlled only by the tax authorities.

The Government of Georgia started working to simplify the country’s Tax Code after Georgia signed its Association Agreement (AA) deal with the European Union (EU) in mid-2014.

Since then Georgia’s economic team has worked to improve the country’s investment climate, attract more investors and additional capital to the country. In this process the Government invited the business associations and organisations to use their opinions in decisionmaking processes. Non-governmental institutions were also actively involved in modifying the country’s tax rules.

Georgia’s partner donor organisations, especially experts from the United States Agency for International Development (USAID), Governing for Growth (G4G) and officials from Estonia, were instrumental in improving Georgia’s Tax Code.

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

June 6, 2016 #148

PUBLICITY

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BANK

Georgia Has the Strong Potential to Become a Self-sufficient Net Exporter by Means of Deregulating the Power Market

RONNY SOLBERG

AGL’s CEO

ProCredit Bank Loses Case against Employee

’

AGL’s CEO Ronny Solberg attended the “Georgia Cross-Border Electricity Trading” summit. As the representative of Georgia’s largest energy sector investor, he addressed summit participants and discussed the Shuakhevi HPP’s relationship with the government as well as the project’s challenges and achievements.

“From the point of view of an investor who has been doing business in Georgia for several years, Georgia has the strong potential to become a self-sufficient net exporter by means of deregulating the power market and amending existing regulations. This will lead to even more foreign direct investment and enlarging the scale of the country’s economy,” noted Mr. Solberg.

The summit was held in Tech Park and opened by Vice Prime Minister,Minister of Energy Kakha Kaladze. Representatives from international financial institutions, private sector companies, and numerous industry experts also attended the event.

German Bank must Pay 31 000 GEL Compensation

MERAB JANIASHVILI Economic Analyst

I MEETING ROOM by PASHA Bank Hosts its First Business Conference On May 25th in Radisson Blu Iveria PASHA Bank hosted the first business conference within the scope of its new project MEETING ROOM. The conference was supported by Georgian National Tourism Administration and Colliers International Georgia and its topic was “Hotel Development in Georgia – The Best Practices”. Georgian National Tourism Administration expressed its keen interest towards the forum. Considering the growing number of visitors to our country private sector’s involvement in development of hospitality sector is of major importance. Mr. George Chogovadze presented to the audience the visitor statistics, achievements and future plans of the Tourism Administration.

Mr. Mark Finney - a specially invited guest speaker from Colliers International UK Office - spoke about international brand operators and benefits they bring. Colliers International is a leading global real estate services company, with its full service licensed office in Georgia providing real estate research, valuation and advisory, corporate brokerage and development consulting services to its clients.

The conference was attended by the representatives of the companies working in hospitality sector and related fields, among them: Hotels and Preference, Rixos, Hilton, Marriott, Dreamland Oasis, Axis, Anagi and others. „We are happy that MEETING ROOM has launched successfully creating an important platform for exchanging ideas and experiences. We believe this gathering will positivel influence the development of hospitality sector in our country with PASHA Bank playing its modest role in the process. Under the umbrella of MEETING ROOM PASHA Bank will host several more business conferences focused on different industries.“ – Said Mr. Goga Japaridze, CCO and Member of Board of Directors at PASHA Bank.

MEETING ROOM is a new project by PASHA Bank – a cycle of business conferences that aim to bring together participants from various industries providing a platform for sharing ideas and best practices as it relates to raising the capital for various projects in respective industries.

June 6, 2016 #148

“

It should be also noted that everything started with an ordinary term “May the God Bless You”

”

n the previous week Ana Machitadze, the former employee of ProCredit Bank, won a legal dispute against ProCredit Bank. Her interests were defended

by Archil Kaikatsishvili, head of the Association of Young Barriers. The dispute has lasted for more than 2 years.

On May 27, 2016 the Chamber of Civil Affairs of Tbilisi Court of Appeals, chaired by Besarion Tabaghua, thoroughly satisfied the action submitted by plaintiff Ana Machitadze against JSC ProCredit Bank. According to the court decision: a) The decree issued by JSC ProCredit Bank director Ketevan Khuskivadze on April 29, 2014 on firing Ana Machitadze was abolished; b) Ana Machitadze was restored on the position of an individual clients consultant at the Vake service center of JSC ProCredit Bank; c) JSC ProCredit Bank was imposed to pay a compensation to Ana Machitadze for the forcibly missed workdays, for the period starting April 29, 2014 up to the court decision; d) JSC ProCredit Bank was imposed to cover trial and pretrial expenditures taken by the plaintiff.

The young barriers explain that as of May 27, 2016, the compensation amount for forcibly missed workdays makes up 31 602 GEL and this sum must be fully paid by ProCreditBank to Ana Machitadze by the time of the court decision execution.

It should be also noted that this decision is a case in the history of the Georgian judiciary system. There are a very few cases when a physical body manages to restore his/ her rights at the job place through the court system and, moreover, to receive compensation for missed days.

It should be also noted that everything started with an ordinary term “May the God Bless You”.

Ana Machitadze started working at ProCredit Bank in September

2007. She was sacked in April 2014.

One of the reasons for firing her was that she was frequently saying to clients: “May the God Bless You”.

The employee was fired because of her incompetences, unskillfulness and nonconformity to the occupied position. ProCredit Bank noted that Ana Machitadze had not fulfilled the determined financial plan, had not conducted inner presentation on performance, while excessive familiarity to clients expressed in the words “May the God Bless You”was considered as unskillfulness and incompetence.

In the previous week, at the trial of Tbilisi Court of Appeals the judge offered again to resolve the dispute by negotiations, but ProCredit Bank refused this offer. After this, judge Besarion Tabaghua noted that the Supreme Court of Georgia had passed clear and evident decision that Ana Machitadze had been dismissed illegally.

Namely, the Supreme Court of Georgia agreed with the decision

by Chamber of Civil Affairs of Tbilisi Court of Appeals, under which Ana Machitadze’s address “May the God Bless You” was not a familiar attitude to clients.

The court of appeals explained that the address May the God Bless You cannot be appraised as a familiar attitude because of established standards and forms of relations in the Georgian society.

The court also noted that the mentioned activity could not be ground for dismissing a person from job.

It should be noted ProCredit Bank appealed against the first-instance court decision to the supreme court in February 2016.

However, the commercial bank lost the case even in this case against the physical body.

Young Barriers, who have defended the interests of Ana Machi-

tadze, hope that ProCredit Bank will execute the court decision without delay in the legal timeframes. The young barristers also hope that, in general, commercial banks will be more srious and competent in treating all disagreements and disputes that may arise in the Georgian bank sector.

“We hope that JSC ProCredit Bank will not create problems in terms of execution of the court decision. At the same time, we expect that the bank will show dignity position and bring apologies to the society for the illegal step and religious discrimination, because this fact has been recognized and approved by the Court”, Archil Kaikatsishvili said.

www.cbw.ge <<

The Representatives of JSC Partneship Fund Met with the Regional Director of EBRD

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Georgia’s Economy Minister on the Antidumping Law

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State Budget to Finance Building New Bridge in Mtskheta

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Batumi Boulevard Management Spends 1.442 million GEL on Rehabilitation Works

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Turkey Accelerates Construction of BakuTbilisi-Kars Railway

Used Vehicles’ Ratio in Georgia’s Vehicle Fleet is 99% NINO KUPARASHVILI

Union of Auto Importers of Georgia

Sector Suffers from Absence of Regulations In the last period, almost all business sectors in Georgia are facing difficulties, including the automobile imports market. The situation in the sector aggravated in 2015 after the GEL exchange rate against USD extremely depreciated.

What is the current situation? Have the sales increased? In general, is it easy to make and develop the automobile imports business?

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AUTOIMPORTS

June 6, 2016 #148

Currently, the sector continues operation without regulations and this is a major problem, Misha Alkhanishvili, executive director for the union of automobile importers of Georgia, noted.

All countries have set regulations for imports, exploitation and technical inspection of vehicles, excluding Georgia. This sector remains unregulated in our country, Alkhanishvili said.

Namely, there are no requirements on what standards of emission is admitted in the vehicles imports process and which not. It is also unclear whether technical condition of the vehicle must be examined in the exploitation period or not.

Moreover, customs tariffs remain unregulated and the existing legislation does not promote vehicle imports, he added.

«Customs tariffs are tailored to used vehicles. This creates certain problems. That’s why there are so many amortized vehicles in the country with polluted air, increased number of road accidents and so on», Alkhanishvili said.

Unregulated market and promotion of imports of old, used and amortized vehicles damage those companies that import new automobiles officially. Today, inflow of used vehicles exceeds imports of new automobiles several times and even tax tariffs, imports tariffs and exploitation regulations serve the secondary market interests, Alkhanishvili noted.

«Today used automobiles are the bestsellers. The imports statistics suggests that the picture is extremely different in Georgia compared to other civilized countries. New automobiles occupy 90% of imports in the developed countries, but we have different situation in Georgia.

Used vehicles constitute 99% of the whole vehicles market», Alkhanishvili said.

Official automobile importers remain in quite grave situation.

Other countries of our scales

annually import 50 000 new automobiles, while in Georgia this figure only makes up 3-5 thousands. All other imported vehicles are used ones, he added. «if the country imported 120 new vehicles this year against 100 ones of the previous year, naturally, the statistics seem to be growing, but this is not sufficient and normal figure», Alkhanishvili said.

The Union and its member leading automobile importers have developed their own visions and concept and submitted them to the Business Ombudsman. He pledged to take into account our position, Alkhanishvili concluded.

Toyota Center Tegeta Toyota Center Tegeta is content with the current market realities. No significant upturn was recorded this year compared to 2015. The current year started a little sluggishly, but now the situation goes smarter, the company commercial director Gega Metepshishvili said.

«This is ordinary case in business.

We never consider achieved result satisfactory», Metepshishvili said.

This year Toyota introduced a new model of RAV4. Automobiles of 20 000-40 000 USD price category are the bestsellers in Georgia. RAV4 and PRADO belong to this category and its minimum price makes up 40 040 USD. As to problems, all businesses have them and the automobile imports business cannot be exception. Consequently, the union of automobile importers, which was founded several months ago, will submit our initiatives to the Government. The union will also take part in all processes related to road traffic organization and improvement. This strategy will attract more new automobiles to Georgia and the prices will also go down, he said.

It will be excellent if the government promotes imports of new automobiles and electric and hybrid vehicles. Moreover, aged

and used vehicles imports should be narrowed, but not forbidden, Metepshishvili noted.

“Everybody should be able to buy desirable automobiles, including right-steering and retro vehicles, but corresponding taxation regime should be applied. The country follows certain strategy and vision about the vehicle fleet development. It is necessary that imports taxes meet long-term strategies. We are developing our proposals.

We have already met with the government officials and we will hold official presentation of all these initiatives in the near future”, Metepshishvili said.

Importers will also participate in revision of state tender system, he added.

State tenders should become more competitive and the government should earn higher revenues. Consequently, not only prices will determine state tender results in terms of sales of automobiles and equipment, but long-term exploitation costs and revenues from post-exploitation sales will be also envisioned in the decision-making process, he noted.

“In the procurement process accents should be made on not one-time sum, but total costs of exploitation and ownership”, Metepshishvili said.

Tegeta Premium Vehicles PORSCHE sales are stable, because we have imported new models.

Moreover, we have set 20% discount for MAZDA vehicles and boosted the sales in this way. Allterrain makes are the bestsellers, Ketevan Khuntsaria, commercial director for Tegeta Premium Vehicles (official distributor of PORSCHE and MAZDA makes) noted.

Caucasus Auto Imports In the last period automobile prices have declined because of excessive supply and lower demand. The excessive supply was also driven postponement of prohibiting the registration of right-steering vehicles, Caucasus Auto Imports head Giorgi Surguladze noted.

“Dealers have imported rightsteering automobiles to create reserves and then sell them at higher prices. Those who previously were importing 10 vehicles, now import 50 ones and currently the market is oversaturated”, Giorgi Surguladze noted.

Moreover, dealers make advance orders and automobiles arrive in Georgia after several months, when the demand falls. The demand declines because of seasonal factors too. In general, the market is smartening, Surguladze said.

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INTERVIEW

Tourism, real estate and hotel business remain basic directions. This year we have started promoting Hi-Tech Startups and introducing the Israeli model to Georgia.

Israeli investors have stopped putting money in Eastern Europe, while in Georgia Israeli investment projects are continued, despite their tiny scales.

NUTSA GALUMASHVILI

Itsik Moshe President of the IsraelGeorgia Chamber of Business -The inflow of Israeli tourists to Georgia is growing. What factors have driven this tendency and what would you your forecasts? What format do you work in and what are the most important issues today?

-The Israel-Georgia Chamber of Business started establishing contacts, when none of the parties believed in this potential. Israel considers Georgia an attractive country in terms of investments and tourism potential. The Israel-Georgia Chamber of Business tightly cooperates with the national tourism administration of Georgia and the Tourism Ministry of Israel for the purpose of boosting tourist turnover between Israel and Georgia. We have sponsored two publications by Israeli student Koral Kratensten that describe Georgia’s tourism potential: “21 Days in Georgia” and “Georgia: On High Heels, Jeans or Ties”. The objective of the author is to show that, besides beautiful cuisine and picturesque landscapes, Georgia is a country of rich culture, legendary history and traditions of many centuries. All these factors grow the interest in this country and positively affect tourist inflows to Georgia.

Both publications were warmly accepted in Israel. Moreover, by support of House of Israel, Koral Kratensten has been meeting with various social groups in Israel to tell them about Georgia.

Recently I met with the Minister of Tourism of Israel in Jerusalem and discussed perspectives for cooperation with Georgia. We plan to apply to the Israeli Tourism Ministry for developing the mechanism that will assist Georgian tour operators in working in this sector of Israel and at the same time, create guarantees to prevent tourists from staying in Israel on illegal basis.

- You have submitted a specific plan to the Israeli Tourism Minister for developing tourism between the two countries. What does this plan imply and do you have any specific concepts?

- The Israel-Georgian Chamber of Business is ready to provide free of charge consultations to travel companies on the issues related to Georgian tourists’ entrance to Israel under the visa-free regime. As I have noted,

June 6, 2016 #148

Israeli Society Appreciates Absence of Bureaucratic Barriers in Georgia we plan to apply to the Israeli Tourism Ministry to issue special licenses to Georgian tour operators, which operate on the Israeli direction. These licenses will enable Georgian tour operators to easier convey tourists to Israel (as known, frequently, many tourists are not let enter Israel at airports because of security issues). At the same time, travel companies will have to submit financial guarantees for obtaining licenses.

- Positive attitudes to the tourism sector are evident, but what kind of moods are discerned among investors towards other directions of Georgia?

How attractive is the Georgian market for them? Do they believe in stable development of Georgia or there are certain fears and unclear expectations in the pre-election period?

- Some things may be seen from one side, not from another side. As a rule, accents are different from the outside. There are different proportions. In general, everything is comparative in this world and currently, the global economy remains stagnant, in practice. In this situation, Israeli investors have stopped putting money in Eastern Europe, while in Georgia Israeli investment projects are contin-

ued, despite their tiny scales. The time and experience have proved that contacts between friendly countries do not depend on political regimes. Despite certain problems and information deficiency on each others’ business culture and potential, the Israeli society is quite confident in Georgia’s stable development, business friendly environment. The Israeli society appreciates absence of bureaucratic barriers and always shows positive attitudes towards Georgia. Nevertheless, huge job should be still performed, active efforts and involvement of state officers are required to eradicate these problems.

- What are target directions for making investments in and is there potential to boost investment-making process?

- Tourism, real estate and hotel business remain basic directions.

This year we have started promoting Hi-Tech Startups and introducing the Israeli model to Georgia. Georgia possesses much potential in this field and joint efforts will enable us to fully employ this potential and express it in specific figures.

I appreciate the recent initiative by the Ministry of Foreign Affairs and

the Ministry of Economy and Sustainable Development. This initiative calls for active involvement of embassies in the process of attracting investors.

Currently, there is no investor seeking any country for making investments in, in any field. Representatives of small countries should show more initiative and make a maximal use of the global crisis and Georgia’s regional advantage, in general.

- As noted, today one of the main problems is related to the fact that many Georgian tourists visit Israel and then stay there. As a result, the issue of increasing job quots has become relevant. How serious is this problem today and is this issue resolvable?

- Today, many mediator companies offer employment opportunities in Israel to Georgian citizens (on illegal basis) and they frequently request 10-15 thousand USD in exchange. This is a regretful reality, but poor families are ready to somehow pay even this sum. At this stage, we are conducting negotiations with the government of Israel to allocate due job quotas for Georgian building specialists. At the first stage, 500 workers may be employed in Israel and this signifies 500 Georgian

families will receive legal revenues without commission fees and deportation fears. As a result, 500 professional and experienced builders will return to Georgia.

- Several months ago you mentioned bureaucratic barriers in the country.

There were certain problems in relation to the company of Israeli investor Meir Shavit. In that period you applied to the Prime Minister by a special letter, where you were describing the existing bureaucratic barriers. According to our information, the problems before Meir Shavit have been resolved. But what about the general picture? Has something changed? Do the bureaucratic problems exist anyway?

- I would not call them bureaucratic barriers and I would not act as a judge either. It was and remains important for me, the president of the Israel-Georgia Chamber of Business, that similar issues be resolved as soon as possible under the governing legislation.

The problem did not consist in bureaucracy. In that period we were asking the Government to allocate a specific contact body for Israeli investors, because this decision could provide the environment of confidence and safety and would enable investors to apply to the mentioned body in case of problematic issues.

The government has satisfied our initiative, allocated a contact body and the issue was resolved.

The core of the issue does not consist in whether problems exist or not. The main thing is how tightly we can cooperative to jointly resolve problems as soon as possible.

- What problems and advantages would you outline in Georgia as compared to other countries?

- The main problem is that Georgia has a small market. The advantage is that the country shows readiness to promote Israeli investors.

- What specific projects will be implemented in Georgia and what a volume of investments will be made in Georgia as part of these Projects?

-At this stage, four new hotels are being constructed (two ones will open in the near future), a washing house.

The direction of startups has been also activated, as well as agro tourism.

I believe the new tourism directions such as Wellness Tourism and Weekend Tourism are very interesting for the Georgian tourism sector.

Both directions rely on VIP tourists and businessmen, who cannot travel because of hectic schedule.

Therefore, we will develop special tours for them to ensure their spiritual and physical healthiness, full relaxation and create best impressions on Georgia. Each tourist should become Georgia’s friend and envoy in their own countries.

June 6, 2016 #148

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ECONO-MIX

are a lot of other projects that are being carried out as part of the joint concept for development of small and medium business sectors.

Importance of Government Programs for Small and Medium Business Development After the change in power in 2012, the new government launched a new state program for the small and medium business sector development, but this initiative is frequently criticized under the pretext of budget funds squandering.

BFM.GE

S

imilar formulation of the issue is incorrect and many factors should be taken into account.

This process should be valuably appraised and analyzed in terms of efficacy of government interventions for the business sector advancement. Moreover, we need realistic perception of the current condition of the small and medium business sectors.

The practice of the world’s developed countries prove that it is impossible to develop this field in any country without clear state policy. In this article we will overview the issues that hinder development of this field.

Attainability of Finances We can talk endlessly about reasons and various circumstances because of which the small and medium business sectors remain undeveloped, but attainability of finances remains number one problem. Today in Georgia commercial banks represent an only source for drawing capital. Alternative mechanism for attracting

finances such as the securities market has become useless, in practice. The bank sector owns 58% of the stock exchange assets and thanks to this factor, the bank sector creates the situation when clients have to seek financial resources only at commercial banks. To this end, guaranteed successful business plan and substantiated accountancy do not suffice. The socalled guarantors with high revenues do not suffice, because the loans’ averaged weighed interest rate exceeds the analogical European indicators considerably and it represents heavy burden on the business.

It should be also noted that, besides revenues, businessmen also lose mortgaged property, when their businesses fail and they go bankrupt. The nearest past of Georgia has recorded many similar facts.

This is the reality in which representatives of the small and medium business sectors have to seek financial resources. If the government manages to co-finance the interest rate through special programs and, in this way, alleviates monthly payments on behalf of the business sector, this will not be wasted money, because this is an investment that will be returned to the economy in the future! If the government does not make this, then it should promote the securities market

development to make bank credits alterable. Today, securities market represents a driving engine for the world’s developed economies.

Incompetence Lack of competence creates one more and decisive problem in the small and medium business sectors.

This gap concerns all opportunities and issues related to the business sector development. This may include a lack of information about government projects that enable to obtain cheap loans. Qualified business plan can persuade a potential investor in the business profitability. Lack of competences among beginner businessmen also create serious vacuum. At the same time, the programs that the government has been implementing free of charge for upgrading qualifications of entrepreneurs and developing entrepreneurial skills should not be appraised negatively, for example, trainings conducted by the Entrepreneurship Development Agency for managers of exports-oriented companies, as well as trainings for those wishing to launch micro business activities, in terms of drafting a business plan. They have received a grant of 5 000 GEL as part of the project. There

International Experience For example, the European Commission finances several support networks for stimulating small and medium business sectors in the EU: The production network of Europe that assists small companies in resolving such issues that, as a rule, are problematic for them and are related to huge finances. It provides required information for the business such as: sales markets, expected legal obstacles, search of potential business partners all over Europe. This network embraces 600 partner organizations in more than 50 countries and consists of about 3 000 qualified employees that are experts in small and medium business issues.

Europe’s small business portal – unites all sorts of information for small and medium business sectors. Small companies and enterprises are able to search such information as access to finances, penetration into new markets and so on.

Small and medium business internationalization portal – designed for small and medium businesses to take roots on domestic markets and considerably boost exports to international markets.

The mentioned mechanisms represent only a small part of the promotion policy that is carried out by the European Union for developing the small and medium business sectors. We see that in the developed EU market the arranged system operates efficiently and it subsidizes the ordered small and medium business sectors, while in Georgia extreme criticism is staged on the field that produces about 8% of GDP and employs more than 60% of the total workforce.

www.cbw.ge <<

Francois Hollande Fully Supports Visa Liberalization of Georgia

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TI: 51% of the Population Considers Agriculture as the Most Essential for Economy

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Natural Products Started Massive Production of Cheese

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Partnership Fund Finished Construction of Greenhouse of Imereti Greenery

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Philippines – Georgia Friendship Mini Park Park to be Inaugurated in Tbilisi Zoo

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BANKING NEWS

June 6, 2016 #148

Terabank Unveils Renovated Branch on Pekin Avenue in Tbilisi – from 10:00 to 21:00. On day-offs, the branch will work from 10:00 to 15:00.

Terabank that previously operated as Kor Standard Bank offers bank services with completely different concept. Cozy and comfortable home interior, cushioned furniture and decorative things allow clients to carry out financial operations in pleasant environment.

Besides the changes that have become so evident after the bank re-branding, banking procedures, products and service standards have been also refined and developed at TeraBank.

Both domestic and international agencies have jointly worked on the re-branding process.

O

n June 2 TeraBank solemnly unveiled a new branch of the My Financial House concept on Pekin Avenue N24a. Different bank environment, refined procedures

and new products – you are able to enjoy all these advantages at the Terabank branch on Pekin Avenue.

Besides the mentioned advantages, the branch works in various hours and workdays

The bank’s shareholders, who are Sheikhs of United Arab Emirates, have actively promoted the project implementation. The main shareholder Nahayan Mubarak Al Nahayan is implementing more than 250 million USD investments. According to the spread information, he plans to increase the amount of this sum.

As to the current activities, Terabank provides high-quality retail services and is actively engaged in business crediting. At this stage, 18 branches of the bank are being renovated under the My Financial House concept. The Bank plans to unveil 5 new branches and ATM-s in regions by the end of 2016.

New website helps tourists find, book local guides in Georgia A new online platform is being created in Georgia allowing tourists to find and book a guide to lead them to the country’s most beautiful destinations.

The Tourism Development Initiative Society started developing a webpage about two months ago that provides a guide booking service to tourists coming to Georgia.

CBW had an interview with the organization’s director Giorgi Kvezereli.

- When and how did you decide to establish your organization?

- JSC Tourism Development Initiative Community was founded on October 23, 2014. The main objective of the organization is to improve the current situation in the tourism sector. Therefore, we decided to implement such projects that would promote the tourism field.

Each person involved will provide informational support to tourists and simplify their tour planning.

- Tourism business giant TripAdvisor serves millions of tourists every day. How do you plan to inspire tourists for visiting Georgia through your website?

- TripAdvisor is a big league project in the world, while Travel in Georgia makes focus only on Georgian direction. The website represents the first tourism-information catalogue, the system that enables users to receive information on current innovations and new products in the country. At the same time, they are able to make online booking of all services that are represented on the Georgian tourism market currently.

Naturally, it is difficult to compete with the mentioned portal.

However, our software and system is identical to those of Trip and other successful Internet giants and we also hope to attain success, - How would you appraise the existing business environment in the tourism field. What problems have the sector companies to overcome?

-Absence of the law on tourism creates major problems and no one talks about this. Low-quality services, high prices, unqualified specialists, problems with guides, service staff, drivers, toilets, disordered infrastructure and, in general, Georgia’s positioning and perception is growing at slow paces because of various reasons.

- What was reaction in Georgia and abroad regarding the foundation of your organization?

- I can openly prove that everyone who is interetsed in the Geor-

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GEORGIA

June 6, 2016 #148

gian tourism sector fate approves the visions and approaches of our organization, its development tendencies and problem-solving ways, as well as other important issues.

As to international reaction, Travel in Brasil, the analogical project to Travel in Georgia, has been already founded and the mentioned website will start serving Brazil visitors in the near future.

Our organization plans to fully cover Europe, South America and a part of Asia by 2020, thanks to our tourism system.

- We have learned that your organization plans to hold various events and campaigns. Would you unveil details about them?

- This is true. First of all, we want to appreciate the people that have performed huge job and spent much time on the tourism sector formation and its development. We also plan to complete drafting the law on tourism. We started law-developing process in 2015, but certain reasons made us cease the process. Anyway, a major part of the work has been done and currently, we need consultations with the government and the private sector. We want to host tourists in compliance with international standards, provide high-level services and protect the rights of theirs, guides, HoReCa, travel companies and so on.

- What are your expectations in the coming tourism season and how profitable will be this summer for Georgia?

- Because of the current developments in the world, it is realistic that the number of tourists increase in Georgia this year. Consequently, revenues from the tourism sector will bring positive results to the Georgian economy.

I would like that all our citizens care for the tourism development in Georgia. We should care for everything that we have preserved for tens of centuries, which have made our country, population an important and unique nation and location on the global map.

Georgia Joins the World Rheumatoid Arthritis Day under the Aegis Everything is in Our Hand Patients with Rheumatoid Arthritis Founded a Union

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atients with rheumatoid arthritis (RA) have founded a union and Georgia has joined the World Autoimmune Arthritis Day, which has been marked in Georgia since 2012. The event aims to raise public awareness of the disease in an effort to provide availability of timely diagnostic and treatment services.

The meeting brought together Inga Mamuchishvili, a chairperson of the Union of Patients with Rheumatoid Arthritis, Marina Sagharadze and Rusudan Ediberidze, founders of the Union, as well Tinatin Samkurashvili, a PR consultant at GEPRA, a company supporting the Union.

The Representatives of the Ministry of Labor, Health and Social Affairs, Parliament, the Health Care Committee of the City Council, doctors, patients and other guests were invited to the meeting. „The Union of Patients with Rheumatoid Arthritis has been founded in Georgia for the first time. We plan to play a kind of a mediator’s role between patients and government structures. This is a terrible disease, which makes a person suffer from pain for years.

There are some methods of treatment, part of which has been financed, in particular, patients under 18 have received support, however, this disease does not depend on the age. It may occur both in a 2-year old child and an elderly person. Our aim is to raise awareness of the problem. The treatment is quite expensive. We would like to make the public and

government structures aware of the need of permanent treatment required for the disease. This is a chronic disease causing disability.

I have personally suffered from the disease, I am an RA patient myself, this is why I have decided to speak up on the issue. It is rather difficult for an individual citizen to raise a big amount of funds for the treatment,“ said Marina Sagharadze, one of the founders of the Union of Patients with Rheumatoid Arthritis.

Inga Mamuchishvili, a founder of the Union of Patients with Rheumatoid Arthritis, and a doctor, said that the goal of the Union was to raise public awareness of the disease to make sure that a big portion of the population who has already noticed RA symptoms, goes to a doctor in a timely manner “to make tests and start treatment. First a family doctor, then a radiologist and rheumatologist should be involved in the process to diagnose the disease timely.

RA is rather an aggressive disease, which damages the connecting tissue basically located in the osteoarticular system.

The body is in chaos and the immune system starts fighting the joints. Therefore a person with rheumatoid arthritis is doomed to become disabled unless right

treatment services are provided“. „Today’s initiative and the foundation of the Union makes me rather happy because I am an RA patient myself and have had the disease for already 20 years.

It is rather challenging to live with rheumatoid arthritis. Therefore I think that this organization will raise patients’ awareness, improve communications and will do a lot of good and necessary things for the patients“, said Rusudan Machabeli, one of the founders of the Union of Patients with Rheumatoid Arthritis.

Finally, an online petition has been published urging the Ministry of Health, Labor and Social Affairs and the City Council of the Tbilisi Municipality to increase access to the biological drugs for RA patients.

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New Modern Wagons will be Added to the Metro

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Around the World in a Day with Hilton Batumi

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Georgia to Negotiate Visa-Free Regime with Tuvalu

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Georgia Wins Gold and Silver Medals at Concours Mondial de Bruxelles 2016

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French President Opens “Cité du Vin” in Bordeaux, Meets with Georgian PM

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BUSINESS

June 6, 2016 #148

Construction of $10m Textile factory underway in Poti Orbi Group plans to launch construction of Twin Tower, a new interIn Poti, it is planned to fund 10 million USD for the construction of the textile factory. The company “Adjara Textile” is about to open new plant in Poti. Initially, around 300 persons will be employed in the factory, however, it is foretasted to increase the number of employees till 3000 in the further future.

According to Osman Chalishkan, who is the Secretary General ofInternational Investors Association (IIA), the company has already chosen the place to start construction process of the factory. At this stage the works on the project are underway.

ENTERPRISE GEORGIA

TOURISM

Brotmeister to open new Plant in Georgia

Within the framework of State Program “Enterprise Georgia” one more new plant is established. Thus, another pastry products manufacturing enterprise is added to Georgian market.

Ltd. “Brotmeister“, together with the Austrian partners, Austrian Pastry and confectionery production-oriented company,

has launched new plant on June 2, at 10:00 a.m., in Tbilisi in the village Dighomi, with the support of Ministry of Economy’s Entrepreneurship Development Agency.

The total investment fund of the project makes up 240 000 USD. As for the number of employees equals 35 people. However, after opening another

NEWS

EXPORTS

The 5-star Four Season Hotel to open in Tbilisi The 5-star hotel, titled “Four Season Hotel” will be built in Tbilisi in the very near future.

The hotel will be located on Rustaveli Avenue N12.

Four Seasons Hotels and Resorts is the world brand, having hotels in the United States, Italy, England, Russia, Azerbaijan and other countries.

According to the information spread in “Facebook”, 70 million dollars will be invested for “Four Season Georgia”-‘s construction.

Georgian-Made Led TV Sets Are Available in Stores The realization of the first Georgian production of LED TV sets started today.

As the director of GeorgianAzerbaijan company AG -TELECOM Michael Ghlonti declared to “businesspressnews” initially the production is available only in one store so far. According to Mikhail Glonti, the production manufacturing process takes place everyday. As a result the delivery is based on the demand.

plants in the farther future, 20 more new employees will be added to them.

It should be noted that initially it is planned to open up a modern cafeteria, for the production realization. Herewith, special confectionery and bakery shops will be also opened throughout Tbilisi.

For the network creation 7-8 branches will be launched.

In 2014, in Tbilisi, 150 sq.m. building was built, which at present is fully equipped with modern equipment and is completely ready to start its operations.

It also should be pointed out that funding was

Georgian Mineral Water Exported To Saudi Arabia Georgian Mineral water company Sairme exported its product to Saudi Arabia, world’s one of the largest markets.

According to the company, Georgian products is sold in Saudi Arabia for several months. New stock will be sent in the near future, – Irakli Kirvalidze, export director of the company has declared to GBC. According to him, long-term and stabile partnership is planned with Saudi Arabia. The product will be for middle and high-income population at the mentioned market. The company makes export in 17 countries at this stage. Increase of sale volume has amounted to 16% at the export market.

“Despite the economic factors, Sairme Mineral Waters has been the sole water producer company in 2015, which export sales are increased. The growth took place at the expense of mastering new markets, as well as supply”, – Irakli Kirvalidze notes.

The company’s exporting policy is oriented on market diversification . Export was made in 4 new countries in the previous year: Turkmenistan, Kazakhstan, Moldova and Israel.

“Now we hold negotiations on entrance with several countries of Europe, Oman, United Arab Emirates, Iraq and Iran market. The process is at the developing stage and several other countries will be added to the list of company’s export markets”, – representative of the company declares.

Kirvalidze notes as well, that the company has to buy raw materials in foreign currency and so devaluation of GEL has made an impact on the company, but it does not have the scale.

provided in part of the European Bank for Reconstruction and Development Bank (EBRD) Business Advisory Services program (bass) Georgia for branding perfection.

The Vice-Premier, Minister of Economy and Sustainable Development of Georgia Dimitry Kumsishvili, also the Deputy Minister, Ms. Ketevan Bochorishvili, and the Chief of the Entrepreneurship Development Agency Ana Kvaratskhelia attended the plant’s opening ceremony today on June 2, 2016.

Contact Person: Nino Skhirtladze, the International Agency for Enterprise Development

Swiss Hospitality & School Opens Branch Campus in Georgia Director of the Tourism Administration Giorgi Chogovadze says that the Agency offers a different type of training for the representatives the service sector in Georgia’s regions. According to him, last year more than 1100 people were retrained. But in George Chogovadze’s words, it is not enough to improve the quality of service in the field the tourism and service. Chogovadze says the Administration is actively collaborating with two different universities, which are the world’s best-known institutions of similar profile. Director of the National Tourism Administration believes that a variety of such schools will improve quality in the country’s tourism sector. More specifically, the National Tourism Administration is conducting talks with the Swiss Les Roches which is one of the world’s leading hospitality schools and is ranked among the world’s top three hospitality management schools. Swiss hospitality school was founded in 1979. Approximately 1 490 students from 97 different countries attend every semester, with an additional 580 students on internship around the world at any given time.

June 6, 2016 #148

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REAL ESTATE

Up Coming Gated Community Krtsanisi Residence For additional information Please call: +995 599 21 21 00 WWW.VERITASBROWN.COM

U

rban Development collaboratively with Cushman & Wakefield | Veritas Brown have reached and signed a beneficial long-term agreement on an exclusive base for the upcoming Krtsanisi Residence development. The project is spread over 26, 000 Square meters in Krtsanisi Residential Area. The address was particularly selected for its incomparable combination of geographical location and climate zones. The development comprises limited number of exquisitely designed community that incorporates Town Houses, Lofts and Villas with magnificent modern exterior. The project is scheduled to be completed in May 2017.

While capturing the premium, ecologically friendly, secured and private environment the development is just in 3 minutes drive from the Old City. The Krtsanisi Residence is surrounded by Diplomatic Corps (Embassies of Switzerland, Japan, France, The United Kingdom of Great Britain and Northern Ireland, Lithuania and Germany) that additionally guarantees high level of safety, security and privacy to the community residents.

Technologically it is above the level in every detail and meets all the international standards that are guaranteed by the internationally and locally revered names that are contracted to secure all the important sectors of the development.

“We believe that the Krtsanisi Residence will provide more than just services and amenities, that is an atmosphere that inspires.

We are committed to create the unprecedented residential opportunity that will reflect all international standards.

Market research and our experience have revealed that there is big demand for modern residential community and we believe that our combination of unique architecture, amenities and exceptional service standards will satisfy the needs of the buyer.

To secure all the important sectors of the development we have approached internationally well known names in their respective fields. The Krtsanisi Residence will feature the latest technological advances and the highest level of design, for this purpose we have approached Henning Larsen Architects who is the international architectural company with the strong background. Our goal was to create vibrant, sustainable buildings that reach beyond themselves.

Henning Larsen Architects is behind the design of numerous visionary and distinctive projects.

This is reflected in many prestigious and international awards received by the office through decades. They have developed the concept and architectural design of the project and created environmentally friendly, energy efficient solution, that characterizes our project by a high degree of social responsibility.

An apartment interior is open to the outdoors that allows natural light to come in the rooms. The

ceiling height is adding value to our project, the higher the better that is why we decided it to keep it 3,22 Meters high. Additionally, Krtsanisi project has the open space planning that adds sense of elegance to the development. Good architecture retains the value, so when it comes to the residences we believe that there is no better place than Krtsanisi Residence” Giorgi Arveladze, Managing Partner at Urban Development.

Speaking about sustainable architecture and going green, nowadays, is all about finding alternative solutions to decades-old problems. Such advances aren’t always obvious to the naked eye, however, many modern buildings are full of exciting innovations that make them far friendlier to nature than their predecessors. Whether they add green space into our urban or power up using renewable energy, structures designed with sustainability in mind are becoming more common around the world and now in Georgia.

“The location of the asset is ideal, Krtsanisi is now becoming a new heartbeat of the city with its location, surrounded by ecologically friendly, secure and private environment. The Krtsanisi Residence is our first ambitious project. We are creating familyfriendly community, which will be the best place for socializing and interaction. Moreover, big squares and multiple amenities will bring old Tbilisi culture back in to the modern gated community. In this regards, our idea was to create the high-level expectation in every detail. The environment is changing for the worse due to our masses

of energy consumption; however, we still need more buildings for businesses and residences with our expanding population. That is the reason why it is important to develop more eco-friendly atmosphere. Initially, our concept has been built around this idea, so we created an energy efficient, eco-friendly gated community.

Correspondingly, we recommend new investments to be drown into eco-friendly buildings. In the fastexpanding city where majority of districts are highly polluted, we are constructing a beneficial and non-harmful to the environment, resource efficient project.” David Kvirikadze, Managing Partner at Urban Development Life in Krtsanisi Residence will offer exceptional residential and ownership experience. Residents will be assisted by attentive and discreet staff that are intensely aware of all unique preferences and will perfectly anticipate every day needs. Besides, the project benefits form extraordinary services such as concierge, security 24/7, handy man, gardener and cleaning service. As for amenities the development will feature meeting room/business lounge gym and sauna, parking, open playground for kids and outdoor fitness equipment.

“We believe that the exclusive service belongs to the exclusive home. Your Residence becomes an extension of your own highly refined world. Knowing that your Residence will be impeccably managed gives you a total ease and freedom. In Krtsanisi Residence we are not buying an apartment we are buying a commu-

nity”. Giorgi Arveladze, Managing Partner at Urban Development “One of the most prestigious and promising real estate project” - this is how Krtsanisi Residence is defined. Opinions toward the project are actively shared within the society and industry professionals in a way of interests and growing demand to live in the ecologically healthy environment with close proximity to downtown and qualities that time does not change such as the location. Considering these views and architectural uniqueness Krtsanisi Residence is indeed the most desirable projects in the city.

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Our goal was to create vibrant, sustainable buildings that reach beyond themselves

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CULTURE

June 6, 2016 #148

Theatre history: In 1976, Tadashi Suzuki relocated his theatre troupe, the Waseda Shogekijo—which for the previous ten years had spearheaded the new theatre movement in Japan—from its home in central Tokyo to Toga, a remote village in the mountains of western Japan. The move was in part an indictment of the overconcentration of political, economic and cultural institutions in Tokyo. Working from a thatched-roof house, built in the traditional “praying hands” or gassho-zukuri style, which the group had converted into a theatre, they renamed themselves the Suzuki Company of Toga (SCOT).

Since then the site has grown into a complex of lodgings, rehearsal rooms, and assorted performing spaces, including a studio theatre, a second gassho-zukuri theatre, a black box theatre, an outdoor “rock” theatre, and a spectacular lakeside amphitheatre. It is in these facilities and theatres that the company is run, follows the precepts of Tadashi Suzuki and under his direction. Now approaching its 35th anniversary, SCOT holds singular status in Japan as a performing arts group that in addition to fulfilling the artistic vision of Suzuki on stage, demonstrates a high standard of excellence in the operation of those places and performing spaces, and enjoys the backing of both the local and national government.

Paradoxically, the move from giant metropolis to isolated mountain valley gained SCOT even more followers, who cherished the pilgrimage to this remote place as part of the

September 22 - October 8 INTERNATIONAL PROGRAM INTERNATIONAL PROGRAM NEW GEORGIAN SHOWCASE

International Program Suzuki Company of Toga, Japan

The Trojan Women Directed by Tadashi Suzuki

With Elegant Touch of Reality…

total theatre experience.

Moreover, following Suzuki’s notions of the universality of theatre, this special location played host for many years (1982-1999) to the Toga International Arts Festival, which offered concentrated workshops in the Suzuki Method of Actor Training created by Suzuki being learnt by performing artists throughout the world, and invited theatre companies from around the world not only to give performances but to live, work, and collaborate with each other. In the true meaning of the word “festival” the diverse cultures of these groups were highlighted and celebrated.

And while acknowledging each other’s cultural similarities and differences, the stimulus provided by such encounters spawned entirely new notions of theatre and undoubtedly many new forms of culture.

Toga village has also served as springboard for the international activities of SCOT. Many of the theatrical productions developed and performed in Toga have gone on to tour the globe. Since their first overseas performance at the Théâtre des Nations Festival in Paris in 1972, the company has performed in more than eighty cities in some thirty countries. In addition to offering a summer and winter festival, featuring performances by SCOT, Toga continues to serve as a center for international research activities and for the training of practitioners in the performing arts, as well as an archive of documents and materials pertaining to the performing arts. www.tbilisiinternational.com www.facebook.com /TbilisiInternational

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WORLD NEWS

June 6, 2016 #148

Quotes

“ TAP is a joint project by Britain’s BP, Azerbaijan’s SOCAR, Italy’s Snam, Belgium’s Fluxys, Spain’s Enagas and Swiss Axpo.

Peace, commerce, and honest friendship with all nations... entangling alliances with none

”

Thomas Jefferson

Work starts on new pipeline bringing Azeri gas to Italy

C

onstruction work is starting on a new pipeline project bringing Azeri gas through northern Greece and Albania to Italy, reducing Europe’s energy dependency on Russia. The Trans Adriatic Pipeline will run for 878 kilometers (550 miles), from Greece’s border with Turkey to southern Italy, and includes a 105kilometer (65-mile) stretch under the Adriatic Sea. First deliveries to Europe are expected in 2020. Greek Prime Minister Alexis Tsipras said the project would create 8,000 jobs in his financially struggling country, which has more than 24 percent unemployment. He spoke at a ceremony Tuesday to mark the beginning of the pipeline’s construction in the northern port city of Thessaloniki.

TAP is a joint project by Britain’s BP, Azerbaijan’s SOCAR, Italy’s Snam, Belgium’s Fluxys, Spain’s Enagas and Swiss Axpo.

TAP project envisages transportation of gas from the Stage 2 of development of Azerbaijan’s Shah Deniz gas and condensate field to the EU countries.

Arlier, the European Bank for Reconstruction and Development (EBRD) managing director of energy Riccardo Puliti said in an interview to Reuters that bank is considering financing of up to 1.5 billion euros for TAP. “We are considering up to 500 million euros of our own money for TAP plus we will try to arrange with other banks up to 1 billion euros in a syndicated loan,” Puliti said.

“Together with financing from the EIB, project sponsors’ equity and export credit agencies, I think the (project) will be fully financed,” he added. The 870-kilometer TAP will be connected to the Trans Anatolian Pipeline (TANAP) on the TurkishGreek border, run through Greece, Albania and the Adriatic Sea, before coming ashore in Italy’s south.

Four Turkish companies win huge highway project

T

wo Turkish consortiums won tenders on May 17 to build sections of a 7 billionTurkish-Lira ($2.35 billion) motorway project that will connect to a new bridge over Istanbul’s Bosphorus Strait.

Limak Holding and Cengiz Holding, which both have interests in many fields from energy to construction, together won a tender to build the Asian section of the road project, Transport, Maritime Affairs and Communications Minister Binali Yıldırım said in a televised interview. Kolin Construction and Kalyon Group won a second tender to build the European section of the road, he said.

Both sections were tendered under the build-operate-transfer model. All of the companies have recently won many tenders separately or together, including the 22 billion-euro third

airport of Istanbul.

The 7 billion-lira investment on the 115-kilometer motorway is expected to span three years, Yıldırım said.

The General Directorate of Highways opened as part of the Third Bosphorus Bridge’s Northern Maramara Highway project in two separate packages upon a build-operate-transfer model.

A total of eight consortiums submitted their bids for the European section and the Asian section in early May. Authorities had already announced that the offer promising the quickest construction period would win the tender. The construction period is expected to last 36 months.

Yıldırım said both consortiums would exercise operational rights for around four years after construction is completed before transferring the rights to the General Directorate of Highways.

The 28-strong EU needs unanimity to keep the sanctions in place and the bloc’s unity has been increasingly tested on that.

Armenia and EU seen on track to U.S. to free extend economic businesses sanctions on Russia from double taxation Armenian authorities are working on a draft agreement on avoidance of double taxation with the United States of America, Armenian economy minister Artsvik Minasyan said.

“The Armenian ministry of economy continues the work on the agreement on avoidance of double taxation with the United States of America. According to the latest report, the work is progressing well.

The date when it may be considered and ratified will be announced in the near future”, Minasyan said.

The draft agreement had been already discussed in 2015 November by the Armenian and American experts at a meeting of the US-Armenia Task Force. Armenia’s foreign trade turnover with the United States in the first quarter of 2016 slashed by 40% from the year earlier to $28.8 million.

WHO Warns Georgia and Russia of Zika Virus Outbreak this Summer The Zika virus could spread to Europe this summer, although the likelihood of an outbreak is low to moderate, the World Health Organization has said.

Areas most at risk are those where Aedes mosquitoes may spread the virus, like the Black Sea coast of Russia and Georgia and the island of Madeira.

Countries with a moderate risk include France, Spain, Italy and Greece, while the risk in the UK is low.

The UN agency is not issuing any new travel advice at this time. The WHO is calling on countries to eliminate mosquito breeding sites and to make sure that people – particularly pregnant women – have information on the potential harmful consequences of the disease. The agency says most countries that could be affected are well prepared to pick up any new cases and deal with them quickly – but others must bolster their ability to diagnose the virus. Zika has been linked to a rise in brain defects in babies and the virus has been seen in more than 50 countries during this outbreak.

T

he European Union is on track to renew economic sanctions on Russia over the crisis in Ukraine when they expire in July, though an extension could be contested and only short-term, diplomats and officials said.

The 28-strong EU needs unanimity to keep the sanctions in place and the bloc’s unity has been increasingly tested on that.

While some states stress the resurgent Russia has not delivered on commitments in the so-called Minsk peace process for east Ukraine, others want to restore trade ties with Moscow.

EU foreign policy chief Federica Mogherini told German newspaper Die Welt on Thursday she expected the energy, financial and defense sanctions to be renewed.

“EU heads of state or government had tied the lifting of the sanctions to a full implementation of the Minsk Agreements. So far, this has not been reached,” Mogherini said in an interview.

“There have always been different opinions on some elements of our sanction policy. It will probably stay that way...What is important is that we keep this unity and decide all together.”

The EU slapped sanctions on Russia after Moscow annexed Crimea from Ukraine in March 2014. It stepped them up later that year as the Kremlin backed rebels fighting Ukrainian

troops in east Ukraine, where more than 9,000 people have been killed.

The EU says it will ease sanctions only upon Russia’s full implementation of the Minsk agreements, but progress on applying the peace accords - negotiated by Berlin and Paris - has stalled for months.

Moscow and Kiev blame each other for failing to stick to the deal, which includes organizing local elections in east Ukraine, restoring Kiev’s control over the whole border with Russia, and the withdrawal of heavy weaponry from the conflict zone.

Italy, Greece, Cyprus, Hungary and Bulgaria are among EU states skeptical that sanctions should be extended, diplomats say, facing off against Britain, Sweden, Poland and the Baltic states.

“I don’t see how we could not extend them in July. The conditions, including Minsk, are not met,” said one EU official.

Another official said the most likely scenario was a six-month extension, adding that G7 leaders would discuss the matter at their next summit in Japan on May 26-27 as the EU and the United States aim to keep a joint stance on Russia.

Last year, G7 leaders meeting in Germany vowed to keep sanctions in place until Russia fully implements the terms of the peace deal.

Italian Prime Minister Matteo Renzi later briefly opposed extending the restrictive measures at the end of 2015, but eventually fell into line.

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June 6, 2016 #148

June 6, 2016 #148

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

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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,

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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June 6, 2016 #148