Caucasus Business Week #149 by Caucasian Business Week

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June 13, 2016 #149

June 13, 2016, Issue 149 - www.cbw.ge

econo-mix The Eﬀect of Kvirikashvili Brings Eﬀective Results

Bakery BrotMeister Austrian Master Baker now in Tbilisi! Pg. 4

PPP PPP Model Ensures Social and Economic Development

Pg. 7

Pg. 11

Georgia – A Secret Gem of Europe, Highly Attractive For Travelers Ski Resorts Lack for Cloakrooms, Rivers and Gorges Look like Trash Dumps Pg. 9

Krtsanisi Residence: One of the most attractive projects in the city CW | VB is one of the global Real Estate consultancy firms that has been operating on Georgian market already for 4 years and has provided its services to biggest business companies operating in Georgia. CW | VB in Georgia has worked on projects like Tbilisi Mall, Merani Mall and for companies like Axis Towers, M2, Silk Road Group properties, TBC Bank properties etc. In April 2016 Cushman & Wakefield | Veritas Brown and Urban Development have reached an agreement and signed long-term exclusive brokerage mandate for the upcoming Krtsanisi Residence development project 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.

Pg. 6

Role of Nursery Schools in Development and Education of Preschool Children

Photo/Thomas Madsen

How Important is the development and care for preschool children. What is the role of kindergartens in this respect? James Heckman, the Nobel Laureate in Economic Science, has appraised the role and importance of preschool education in this way: «Early childhood education stimulates well-doing in the future and early childhood success preconditions success in the future». Actually, preschool education services are the most important investments in the long-term development of the country. Namely, children’s cognitive potential and, consequently, the potential of a child is maximally developed. International research works have proved that well-organized preschool education helps children improve their academic performance at secondary schools, including in receiving high scores, diminishes the number of pupils failed in classes and upgrades educational achievements in terms of enrollment into universities. Pg. 8

2 GOVERNMENT

NEWSROOM Georgia-EU visafree talks should end successfully before October elections Usupashvili made this comment after meeting with high oﬃcials in Germany including President of the Bundestag Norbert Lammert.

150 New Buses will Appear in Tbilisi from September “Almost everything is completed and the bringing of the new buses have been already resolved, but the final word should say EBRD. Thus, we are waiting for the conclusion.

ECONOMY

China will Transport Cargo to Belgium via Georgia According to Javid Gurbanov, head of the Azerbaijan Railways CJSC, two trains will use TransCaspian International Transport Route. The cargo will arrive in Poti Sea Port and the cargo will be distributed at the place.

Direct investment of 376 million has been made in Georgia in Q1 As of preliminary data, the volume of direct foreign investments made in Georgia has made up 376 million USD Q1, 2016, which is more by 103% comparing to the preliminary data of Q1, 2015.

BANKING

Bank Cartu has the worst coefﬁcient of reserves 87,5% of credit lending - 13,5 billion GEL accounts for 7 banks. Bank Cartu has the worst coefficient of reserves. By the Supervisory Norms, non-performing loans are regulated by 30%, 40% and 100% reserve requirements.

Silk Road Bank sells the bank Erkan Tatishev, chairman of Supervisory Board of the Group declares, that banking activity is not among their priorities. Negotiations are already held with European and American Funds. Tatishev is sure in the success of the deal.

BUSINESS

Activity is Declined at the Real Estate Market in May The decline is 11,6% y-o-y, while sharp drop is fixed comparing to April. Namely, transaction number is declined by 16.4% comparing to the previous month.

Business sector’s turnover is increased by 15,4 % Business sector’s turnover is increased by 15% in Q1. According to “Sakstat”, the sector’s turnover has made up 12,7 billion GEL, which exceeds 15,4% to the same period of the previous year.

COMPANY

European Aviation Safety Agency Grants Authorization to Georgian Airways EASA has issued an air safety joint permission to Georgian Airways airline as part of the EU safety authorization for foreign air operators – PART-TCO.

PM Kvirikashvili: “Georgia is a trusted, reliable energy transit country”

xperts, scientists and policy makers are gathered in Georgia’s capital Tbilisi and attending an international conference dedicated to energy; discussing all things from sustainability to the challenges the energy industry faced. The conference, International Energy Forum: Energy Security Old and New Geopolitical Paradigm, opened early this morning and focused on the rapidly changing global energy environment, the pressure of globalisation and the existing trends in the energy field. Georgia’s Prime Minister Giorgi Kvirikashvili addressed participants and spoke about Georgia’s energy security, the current and planned energy projects, Georgia’s role as a transit country and about the country’s strategic geographical location. He also mentioned the investment opportunities and the importance of the New Silk Road and Economic Belt project, connecting East and West. Recently we celebrated the 20th anniversary of the first transit project, the Baku-Supsa pipeline. The pipeline turned out to be the first project that put Georgia on the energy map,” said Kvirikashvili. Since then we have implemented several important projects including the Baku-Tbilisi-Ceyhan pipeline, the South Caucasus gas pipeline and the Shah Deniz project, which guarantees supply of additional gas to the pipeline. The overall volume of investments made in the energy sector

amounts to $45 billion, of which $2 billion was invested directly in Georgia,” Kvirikashvili added. In his speech the PM stressed the need to intensify cooperation with Azerbaijan. According to him, in terms of energy supply, Azerbaijan was the “number one strategic partner of Georgia”. Kvirikashvili also highlighted the importance of the United States (US) support for ensuring energy security. The US is an important strategic partner of Georgia. This is a partnership that has been in place for 25 years, since Georgia regained independence. Therefore implementation of strategic projects, such as the Baku-Supsa, Baku-Tbilisi-Ceyhan oil pipeline and the Baku-TbilisiErzurum gas pipeline became possible largely due to the US support,” Kvirikashvili said. The head of the Georgian Government stressed his country had demonstrated that it was a stable partner for the West, and it represented a decent base for the expansion of cooperation between countries of the East with the West. After his speech Kvirikashvili answered questions, one of which came from a representative of opposition United National Movement (UNM). The person asked about the country’s current energy strategy and said the number of investments in Georgia’s energy sector had decreased and there were attempts from the Government to make Georgia dependent on Russian gas. In response Kvirikashvili said

Georgia was currently undertaking several major energy projects, among them were several that had been suspended by the UNM government when it was in power from 2003-2012. Kvirikashvili stressed it took billions of dollars and lengthy studies and negotiations to carry out a major energy project, and cited the Nenska Hydro Power Plant project as an example of this. He said the current Government put maximum eﬀorts to attract significant energy investments and welcome back the investors who left the country under the previous government. When it came to negotiating with Russia’s energy giant Gazprom, Kvirikashvili said Georgia’s gas demands had increased 40 percent and the country was searching for ways to fill this deficit from new sources. Finally we settled this problem through an agreement with Azerbaijan’s SOCAR. Now Georgia gets less than 10 percent of its energy resources from Russia and our energy dependence on Russia is very low,” he said. He would not elaborate any further on the Georgian Government’s cooperation with Gazprom, particularly because, as he said, the Russian investments were provided under the previous state leadership. The one-day conference was organised by the Economic Policy Research Centre (EPRC), the Konrad Adenauer Foundation (KAS) and the US Embassy to Georgia.

Johannes Hahn: “Georgia deserves quick decision on visa liberalisation”

he European Union (EU) Commissioner for European Neighbourhood Policy Johannes Hahn says Georgia has fulfilled all requirements for visa-free travel to the Schengen zone and the country “deserved” a quick decision from EU authorities about being granted a visa waiver. Hahn said this to Georgia’s President Giorgi Margvelashvili this afternoon in Brussels, Belgium where the two oﬃcials sat down to discuss Georgia’s European prospects and other important issues. The EU high oﬃcial stressed the swift solution from the Council of Europe (CoE) about Georgia’s EU visa liberalisation should meet

BUSINESS WEEK caucasus

The Editorial Board Follows Press Freedom Principles Publisher: LLC Caucasian Business Week - CBW Address: Aleksidze Street 12 Director: Levan Beglarishvili WWW.CBW.GE

June 13, 2016 #149

Mobile phone: +995 591 013936 Email: caucasianbusiness@gmail.com

the “legitimate expectations” of the Georgian people. President Margvelashvili confirmed Georgia met all EU requirements for a visa waiver and now the country was waiting for the appropriate “recognition” of these achievements from the European Parliament and the CoE. “I hope the process will be completed soon and positively,” said Margvelashvili. At the meeting today President Margvelashvili also told Hahn about the complicated situation in Georgia’s occupied regions of Abkhazia and Tskhinvali (South Ossetia) and spoke out the continuing violations committed by Russian occupying forces in and

near the breakaway areas. Margvelashvili particularly highlighted the recent murder of a Georgian man by Russian-controlled border guards on Georgian territory near the Administrative Boundary Line (ABL) with de-facto Abkhazia. He also mentioned the new border signs erected by border guards a couple of days ago near eastern Avlevi village, at the ABL with de facto Tskhinvali. Georgia’s President stressed the importance of the EU in regulating the conflict, as the EU Monitoring Mission (EUMM) was the only international mechanism acting near the ABLs in Georgia after the RussiaGeorgia war in August 2008.

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 13, 2016 #149

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.

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ECONO-MIX

Georgia Provides Good Opportunities for Doing Business

ARMANZHAN BAITASSOV

A shareholder of Forbes Georgia and publisher of Forbes Kazakhstan

The Eﬀect of Kvirikashvili Brings Eﬀective Results

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“I am pleased we have enforced our idea. This is an unique environment for exchange of ideas and acquiring new contacts. Many Kazakh businessmen are implementing projects in Georgia and many products are exported from Georgia to Kazakhstan. I believe the more similar forums are held, the deeper bilateral relations will go. Kazakh businessmen think that Georgia provides very good business environment. There is much opportunity for developing business. We see results that Georgia has achieved over the past years. We believe the inflow of Kazakh tourists to Georgia will increase. Businessmen see that there is good environment in Georgia. The hotel sector has been developed and this aspect will boost inflows of tourists”, Armanzhan Baitassov said.

First Quarter Saw 10 Years’ Best Economic Indicators

MERAB JANIASHVILI Economic Analyst

G Tbilisi hosted GeorgiaKazakhstan Business Forum Georgia is looking at ways to enhance ties with its “strategic partner” Kazakhstan by developing bilateral tourism, real estate and business relations. About 40 Kazakh businessmen are in capital Tbilisi to attend the Georgia-Kazakhstan Business Forum. Georgia is seeking to attract more investments from Kazakhstan and has informed the foreign guests about the opportunities offered by Georgia’s businessfriendly environment and ways both sides can benefit from closer ties. Kazakhstan was and will be our strategic partner. So far Georgia has received about $300 million USD investments from Kazakhstan,” said Georgia’s Economy Minister Dimitry Kumsishvili this morning while speaking at the forum. Georgia showcased a range of investment projects currently underway at the Business Forum in the fields of agriculture, tourism, real estate, logistics, retail, transit and more. We are offering investors all the potential that we have in real estate, development and tourism directions. At the same time we are introducing them to all the support programs offered by the state. From this I hope positive decisions will be made and Georgian and Kazakh businesses will deepen their friendships,” Kumsishvili said. The Minister added the Georgian side wanted to attract more investments from Kazakhstan, meaning more money was in the local economy and this would help create jobs and improve the well-being of Georgia’s people. The Georgia-Kazakhstan Business Forum was organised by Forbes Georgia and Forbes Kazakhstan. The Forum was held today in Georgia’s capital Tbilisi. Kazakhstan was typically an important foreign investor and has supported a number of projects and companies in Georgia over the years. KazTransGaz Tbilisi is a subsidiary of the Kazakh company KazTransGaz, which was established in Tbilisi in 2006. Currently the company served about 384,055 gas customers in Tbilisi. Between 2006 and 2014 KazTransGaz Tbilisi invested about 92 million GEL to improve the technologies and service for Tbilisi gas users. Another Kazakh company that operates in Georgia is Batumi Industrial Holdings, which is a 100 percent daughter company of KazTransOil, the national oil transporter in Kazakhstan. Batumi Industrial Holdings owns Batumi oil terminal and has operated Batumi Port for 49 years. Two banks - Halyk Bank and BTA Bank – operate with Kazakh capital in Georgia. Meanwhile Georgia’s state-owned shareholding company, the Partnership Fund, and Kazakhstan’s stateowned oil and Gas Company KazMunaiGas, opened a five-star Rixos Hotel in the Likani district of Borjomi in south-central Georgia. About $38.5 million USD was invested in the hotel, which opened last year.

June 13, 2016 #149

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

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eostat, the national statistics service of Georgia, has published the macroeconomic indicators of the first quarter of 2016. The report shows that the country has seen similar positive figures for the first time since 2007-2008, when GDP growth was recording 9-12%. According to the Geostat report, in the first quarter of 2016 the foreign direct investments rose by 103%. According to an early report, the FDI inflows in the first quarter of 2016 made up 376 million USD, up 103% compared to the same period of 2015. In the reporting period Azerbaijan emerged as Georgia’s major investor country with 36% ratio. Turkey ranks second with 15% ratio and the United Kingdom is third with 12%. The ratio of three leading sectors in total FDI inflows marked 79%. Major part of foreign direct investments were made in the sector of transport and communications and total FDI injections in the field made up 200 million USD, 53% in total FDI inflows. The finance sector is second with 58 million USD and the power sector is third with 40 million USD. Record indicators were registered in the tourism sector too. In January to May 2016 the inflow of international tourists and visitors has extremely increased. In May 2016 the inflow of international visitors increased by 14.95%, while the inflow of tourists, i.e. those who have stayed in the country for 24 hours and more has increased by 24.3%. According to the 2015 total indicators, the tourism sector revenues marked 1.94 billion USD and the year on year growth made up 8.3% (+149 million USD year on year). The tourism sector ratio in GDP also increased by 16.2% and made up nearly 6.8%. The Geostat’s first quarter

report casts light on why the Georgian national currency has strengthened over the past 3 months. Foreign currency inflows in terms of FDI were enhanced by the tourism sector revenues too. The negative trade balance in the trade turnover has also slightly improved. It should be noted that in the first quarter of 2016 the business sector turnover rose by 15.4% compared to the same period of 2015 and made up 12.7 billion GEL. The business sector’s output has also increased. In the reporting period, the sector’s output made up 6.5 billion GEL, up 15% compared to the same period of 2015. In the first quarter of 2016 the ratio of major business sector in total turnover marked 82.8%, medium-sized business – 7.6% and small business – 9.7%. Moreover, the number of employees in the business sector has also increased by 5.9% to 577 000 persons. This signifies that the business sector has created 32 257 new job places in addition. It should be noted that according to the 2015 employment report, in 2012-2015 the number of employees increased by 50 000 persons, while in only January to March 2016 the employment index increased by 32 000 individuals. Naturally, the above-mentioned macroeconomic indicators have influenced the basic indicator of the economic advancement and in the first quarter of 2016 the GDP growth made up 2.8%. In April the economic growth made up 4.3%. At the government meeting, Georgian Prime Minister Giorgi Kvirikashvili has widely overviewed the improved economic indicators. “I believe domestic and external investors positively appraise many indicators and their ex-

pectations will be more positive. Both domestic investments and FDI inflows will increase in the country. Even more so we have implemented and the Parliament as adopted the taxation system liberalization package that will make the economic environment more attractive starting January 1, 2017”, Prime Minister Giorgi Kvirikashvili said. It is worth noting several weeks ago Mr. Kvirikashvili noted that Georgia would reach the level of a medium European country in 10 years. Moreover, ex Prime Minister of Georgia Bidzina Ivanishvili said that by 2030 Georgia’s GDP would increase four times and will reach 40 000 USD in terms of solvency parity. Naturally, everybody welcomes these forecasts and promises, but if we genuinely want to achieve the level of a medium European country in 10-15 years, Georgia should record similar positive economic indicators in all quarter periods and the GDP growth rate must exceed 10%.

www.cbw.ge <<

SOCAR Reduces Georgia’s Dependence on Russian Gas

Baku-Tbilisi-Kars Railway Already Built in Georgia

Tourism’s Total Contribution to GDP Growing in Georgia

Petrol Quality to Meet EURO Five Standards in 2017 in Georgia

Georgia to Finish Construction of Main Transportation Arteries in 2020 Azerbaijanis Make up Greatest Number of Foreign Tourists in Georgia Brand export is increased by 69% Revenues From Wine Export is Increased by 16% Georgia Launches Ikalto Valley Development Project

June 13, 2016 #149

PUBLICITY

REAL ESTATE

Nino Kipiani Director | Head of Country Cushman & Wakefield | Veritas Brown

- What are your estimations on the Krtsanisi Residence development project? - We are delighted to be bringing our in-depth local and international expertise and market knowledge to this exciting residential project in the city. Considering the interest and growing demand to live in an ecologically healthy environment in close proximity to downtown, we consider the Krtsanisi Residence development to be one of the most attractive projects in the city. 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 that additionally guarantee high level of safety, security and privacy to the residents. (Embassies of Switzerland, Japan, France, UK and Germany surround the site). It is worth mentioning that decades ego the location was specially designated for high-level political leaders. - Why should one choose Krtsanisi Residence? - Housing density and living conditions diﬀer greatly in Tbilisi districts. The Krtsanisi district benefits with its limited density when compered with other districts in Tbilisi. The demand on that area has been quite high from foreigners leaving in Tbilisi as they value the importance of its microclimate, privacy and secure atmosphere. Lately it has become very popular among local citizens as well. Apart from above conveniences and benefits, owning residence in the Krtsanisi area proved to be valuable. Considering a high level of demand on renting apartments, investors are looking at it as an investment opportunity. As mentioned above, the development comprises the limited number of exquisitely designed

community that incorporates Town Houses, Lofts and Villas with magnificent modern exterior. Technologically it is above the level in every detail and meets all the international standards that are guaranteed by the international and local companies contracted for this development. Moreover, Urban Development is one among few companies that care about environment and develop eco-friendly, resourceefficient residences. The company is oriented on minimizing the impact the developments have on the environment. Sustainable or “green” developments use land more responsibly, offer improved indoor air quality, consume less energy and water, and incorporate renewable or recycled materials. - What are the services that the Krtsanisi Residence will provide to its residents? - Life in the Krtsanisi Residence will offer truly exceptional residential and ownership experience. The residents will benefit with attentive and discreet staff that are keenly aware of their unique preferences and will perfectly anticipate their every day needs. Residents will enjoy services of concierge, security 24/7, handy man, gardener and cleaning service. Project amenities will feature meeting room, gym and outdoor fitness equipment, sauna, parking, outdoor playground etc. CW | VB will provide a service of renting apartments in case of request. As I mentioned before, interest for the Krtsanisi area is very high and even though the completion of the project is one year away, we already have families interested to rent. We believe that the exclusive service belongs to the exclusive home. Your home becomes an extension of your own highly refined world, knowing that it is professionally managed, gives you comfort and keeps you relaxed. www.veritasbrown.com

June 13, 2016 #149

BAKERY

BrotMeister Austrian Master Baker now in Tbilisi!

The first cafeteria of BrotMeister, the new Georgian pastry brand, has been already unveiled on Taktakishvili Street, the Vake District in Tbilisi. The cafeteria combines a pastry store and a modern Austrian bakery-cafeteria and oďŹ&#x20AC;ers 35 varieties of products to its clients. The company director general David Shanidze told the CBW that in the near future a network of specialized pastry stores will open in various districts of Tbilisi. The network will unite 7-8 branches by the end of 2016 and this will be an only network to care for establishment of genuine bread culture in Georgia. It should be noted that a new enterprise equipped with cutting-edge European bakery equipment was unveiled several days ago. The project implementation expenditures made up 250 000 USD. The project has been implemented as part of the Produce in Georgia government program. The very governmental program has stimulated us to implement this project. ProCredit Bank has also provided essential contribution to the project implementation, David Shanidze said. The funds attracted as part of the state program will be completely spent on opening an enterprise in Dighomi and purchasing modern technologies. The company plans to arrange the network of stores at its own expenses. CBW had an interview with executive director of BrotMeister, Mr. Aslan Ckhaidze

- When did you decide to introduce the brand to the Georgian market? - The idea of introducing an Europeanstandard and Austrian-standard pastry manufacturing brand arose in 2008. The reigning social-economic and political complications in that period did not enable us to implement the project immediately. We managed to enforce this idea after the Authorities introduced the Produce in Georgia state program. To this end we have set up a brand of BrotMeister. - The company appeared on the market two months ago. An enterprise and a store-cafeteria have been unveiled. How does BrotMeister plans to find its niche on the market amid sharp competition? - The brand plans to produce high-quality pastry based on Austrian standards and this strategy will enable BrotMeister to defeat the sharp competition on the domestic market. - What is the target segment for your products, based on the economic state in the country? -The highest quality and Austrian standards make the manufactured product expensive, but based on the flexible pricing policy of our company, we hope it will be attainable for all segments of our society.

- We know that you cooperate with such international brand as Backaldrin that manufactures pastry saturated with proteins and vitamins. How does the brand plan to stimulate a growth in demand for such pastry products? - High quality and stability of manufactured products, as well as updating our citizens of usefulness of pastry saturated with proteins and vitamins will ensure a growth in demand for our products in the Georgian society. - Will you sell your products in other supermarkets and hypermarkets? Besides your own stores, will our citizens be able to buy your products at other stores too? - To gain the confidence in our society, we are sure that BrotMeister pastry must be sold at the brandâ&#x20AC;&#x2122;s specialized stores. Therefore, the company plans to open the brand stores in all wards of Tbilisi. - Why should the consumer give preference to your products compared to other brands? - Naturally, consumers are free in their choice, but in the event they choose our brand proudcts, they can be sure that they will enjoy genuine, tastful and healthy bread.

BUSINESS

June 13, 2016 #149

New Large Scale NightClub GATE Opens in Batumi A new nightclub will open on the territory of Amusements Park in Batumi. The new major nightclub is called as GATE. GATE nightclub hosted the first event on June 7, when distinguished and influential bands of electronic music SEBO K (Berlin) and Vako T (Georgia) performed their compositions. Club GATE is equipped with high-level audio equipment that has no analogy in Georgia. The equipment is served by German specialists. Two-floor glass building with original design consists of several diﬀerent spaces. The main part of the club is a closed territory, where Batumi visitors and electronic music lovers, despite climate conditions, will spend leisure in comfortable environment in both rainy and hot weathers.

DESIGN

MOUNTAIN REGIONS

20-Year-Old Graphic Designer Won Cannes Lions Golden Award gladly accepted this proposal. As a result, in the design category we won gold medal”, – Sandro Laliashvili said. “Me and my partner Michael Todua will do our best and try everything our participation to be effective, but I do not want to raise expectations any higher.” He has worked on the projects “Muzame” and King David Residences so far. At the moment he works for the two Geor-

20 years old graphic designer – Sandro Laliashvili won Cannes Lions Golden award in design category. Sandro is involved in the ﬁeld of advertising only for several months. Despite the small amount of time, Sandro participated in Cannes Lions Festival and took part in the competition on behalf of the company ABK and won with his team members. In summer Sandro is going to travel in Cannes,

where with his partner he will present the project. He lived and graduated from the school in Dusheti. Now he is a 2nd year bachelor’s student at GIPA, where he is studying in the faculty of media art. “One evening, when I was coming back from the lectures, Nino lazarashvili called me and offered me to participate in the competition on behalf of the company ABK. Of course, I

NEWS

CLOTHING

Georgia Starts Here: Website Shows Best of Georgia

The Clothing Featured with Georgian Elements

“We are a bunch of local Georgians – the most welcoming people on earth, and their friends from abroad who have already traveled to our country. We gathered with one goal – to provide English speaking people all over the world the most accurate and useful tips and tops on Georgia. We believe that the advices kindly provided by our team and friends will make travelers experience in Georgia unforgettable”.

“Silk Road Group” to invest 100 million USD in Georgia Silk Road Group“will implement 100 million dollars investment project during two years in Georgia. “In general, we have a lot of project plans that we are working on right now. Thus, we are about to invest 100 million USD for project implementation process during 2- year period”, – said Giorgi Ramishvili who is the manager of the “Silk Road Group”.

Elene Kapanadze clothing designer

Elene Kapanadze who is 22-year-old clothing designer has a garment business and at the same time she is studying journalism. According to her becoming designer was her childhood dream. “Fashion has always fascinated me and becoming designer was my childhood dream”. She began this activity by accident, when she decided to bring her clothing line in the shop co.mode. “My mother helped me for the first model creation. She taught me the sewing techniques, and since then I have started to independently create clothes.” Initially, she had very little capital. For the first time, Elene made dress which was sold really fast. With this fund She made shirts, which also turned out very profitable. Thus, gradually her capital raised so. She says that the most important fact to start a business is the desire. “In addition, you need to love your work, always to searching for the new and never give up”, – she says. Clothing business is quite profitable in Georgia. Especially now, when online shopping is very popular and has been actively using this service. “Quite a lot of people express their interest towards my products and clothes. There are many factors to be considered in the cloth creation processs. You should always follow fashion trends, to take into account the relevance of colors and etc.” Her clothes may be purchased through the Internet store – Elli Georgian Designer and co.mode– the store. The clothes are designed for diﬀerent categories of consumers. “At the moment I am working very hard to make my online store popular. In the near future I plan to open up my own shop”, – said Elene Kapanadze. She would recommend everyone to start any business with small capital and huge talent, and not vice versa. According to her the main thing is the desire to work and in such way any business will surely succeed.

gian musicians “band’s logo, who are working in the United States. “Thus, I am a freelancer, and I like the schedule of the work I do. It is also convenient that you can work anywhere in the world without leaving home.” “It is very interesting to me, when I am creating something new and different. Graphic design is a creative process and that’s why I like my job”, -he said.

50 businesses in mountain regions benefit from state support Dozens of businesses in Georgia’s mountain regions are benefactors of state support that reduces their tax obligations and supports the development of local businesses. About 50 enterprises located in diﬀerent mountainous areas are benefitting from the special taxation system, while 13 today were granted the status of ‘Mountainous Area Enterprise’, announced Georgia’s Ministry of Finance. The special taxation system saw entrepreneurs in the mountainous regions be exempt from paying profit and property taxes (legal entities), while physical entities were exempt from paying income and property taxes for a 10 year term. This was part of the Government’s recently introduced Mountain Law of Georgia, which aimed to support entrepreneurs in Georgia’s mountainous areas and make business easier for them as a way to stimulate their local economies. The Mountain Law partially came into eﬀect at the beginning of this year and new aspects of the law will continue to be implemented throughout the year.

EDUCATION

June 13, 2016 #149

Role of Nursery Schools in Development and Education of Preschool Children Felix Kindergarten Prioritizes Individual-oriented Approaches How Important is the development and care for preschool children. What is the role of kindergartens in this respect? James Heckman, the Nobel Laureate in Economic Science, has appraised the role and importance of preschool education in this way: «Early childhood education stimulates well-doing in the future and early childhood success preconditions success in the future». Actually, preschool education services are the most important investments in the long-term development of the country. Namely, children’s cognitive potential and, consequently, the potential of a child is maximally developed. International research works have proved that well-organized preschool education helps children improve their academic performance at secondary schools, including in receiving high scores, diminishes the number of pupils failed in classes and upgrades educational achievements in terms of enrollment into universities. Moreover, economic calculations have showed that preschool education is one of the best investments that the country may make for economic development. Still and all, how does a kindergarten determine the mental development of a preschool child and how necessary is the preschool education to make a child capable for maximally using his/ her own potential? Temur Tordinava, head of the agency for management of Tbilisi Kindergartens, and Ninu Kiknavelidze, a psychologist for Felix kindergarten, have provided comprehensive answers to the above-mentioned questions. - Mr. Temur, does the preschool age determine the level of development of a child and what is the role of kindergartens in this respect? - The preschool age category from 2 to 6 years old is very important and children of this age category pass a preparation period in various directions. Their preparation for secondary school is also very important. We launched school preparation program in October 2015 and this program is being implemented at all kindergartens in Tbilisi for a year. This year, more than 16 000 pupils will go to secondary schools and they have passed the mentioned program. Consequently, I am sure that this contingent will be more prepared for the secondary school, compared to the previous contingents, because the school readiness program calls for developing a number of school skills among children to assist them in adapting to the secondary school space. - What innovations does this program contain, compared to the previous years and what additional methodology has been included in this program? - This program is more perfect and valuable in terms of methodology and it combines the skills that, most of all, develops analytical skills of children and accustoms them to analytical thought. This is a very important issue, but, at the same time, the core of the mentioned program is that it is based on such games and roles that do not make children get tired and the teaching process is based on game principles. This signifies children receive pleasure from all these games. I would like to add that the mentioned

Ninu Kiknavelidze, a psychologist for Felix kindergarten program is the first step that will be widely established at Tbilisi kindergartens, in all 162 kindergartens. At the same time, this program requires more development and improvement and, naturally, this process will take certain period. However, I do believe this was very important step at the initial stage in this system. - I would like to mentioned another issue - training of psychologists and logopedists. This is a serious challenge before kindergartens. Your opinion is very interesting why was this issue actualized? How many teachers were trained in this direction and how eﬃciently is this mechanism used in practice?

Temur Tordinava, head of the agency for management of Tbilisi Kindergartens - Pedagogic methodology at Tbilisi nursery schools and, in general, in our country was one of the major challenges for many years. Regretfully, nothing has changed in this respect. The role of psychologists and logopedists is of crucial importance in the preschool period, because if any problem exists, they must provide timely reaction and consequently, timely interfere in the process. Many years ago, this position was abolished at many kindergartens. Therefore, a new project has been developed and, at he first stage, 60 psychologists and 30 logopedists were trained. Combined literature, guidebooks and joint strategy were developed for them. At this stage, psychologists and logopedists are being selected at various nursery

schools and starting September 2016 all kindergartens will have a psychologist and a logopedist, who will work under the joint strategy and joint literature. Why is this so important? Each child may need individual approaches, but under methodology and joint standards as practiced in all kindergartens in Tbilisi, joint food menus – this was also a part of the joint reform. We believe that the reform of the system of psychologists and logopedists has decisive importance. This reform was also actualized and requested by parents. «First of all, I agree with you that the preschool education is of crucial importance for further development of an individual. This is the period, when a person starts communicating with the world, identifying connections between reasons and results, receives information, forms attitude to himself/herself and the surrounding world, where he/she is integrated. Therefore, this is a very sensuous process, because the first impressions are very important for each person and they determine what kind of a person he/she will be in adult ages, how his/ her resources will be used maximally and how he/she will manage personal fulfillment. In our everyday life we follow stereotypes as if the education process starts in the school age. This is not true. This process starts from the very birth, in practice, and all of us, parents and all adults, play crucial role in this process. As to peculiarity and priorities of Felix kindergarten. This is the approach oriented on an individual and I mean potential and interests of a child that are the most important instrument in the process of working with a child. The level of achievements made by a child must be determined, his/her strong sides must be outlined and you should rely on these sides to attain the desirable results. The interest is necessary, because if you do not take into account the fields of interest for physical and psychological development of a child, you may lose the child’s involvement quality in the process. Therefore, the child’s potential and interest are very strong factors to

a certain extent that each individual should protect definitely, when communicating with a child. We also apply multi-sensor mechanism, under which an individual has 5 channels for reception of information – seeing, hearing, perception and so on. Therefore, in this period it is very important that all five mechanisms of reception of information be applied when communicating with a child. The information that is delivered to children, must be rich in terms of senses. In practice, children suﬀer from sensuous hunger and their sensuous interests may be unsatisfactory, while this aspect is important for their development. I also agree with the considerations that teaching by games is the most important process, because if you deliver any information to a child and he/she cannot grasp the importance of this information and the way to apply it, this child will not learn this information. Every process has its own objective to attain a specific goal. If a child cannot realize the information in practical life, the teaching process will not be successful. Therefore, this is a creative and child-oriented process», Ninu Kiknavelidze, psychologist for Felix kindergarten, noted. - Mrs. Ninu, I would like to make focus on one issue about children with inclusive and other special needs. Which methodologies are applied in this respect and what approaches will you apply in the process of working with them? - One of the mighty aspects of the Felix kindergarten organizers is that we follow the idea that education must be attainable absolutely for all children. I would like to note that I have cooperated with the Ministry of Education and participated in the monitoring process in both preschool education period and secondary and vocational schools. In this respect, the team of Felix has gained huge experience and our kindergarten has an access to all resources to carry out transition to the inclusive education process. We have also acces to human resources, have a multidisciplinary team that are of crucial importance

in this process. This individual approach, in general, is a constituent part of the inclusive education to meet the potential of our children. These factors are very important in the academic process, especially in early ages, when cognitive and perception mechanisms start developing in a child. - The issue of mixed age groups were actualized in the last period. This issue was also envisioned in the law and discussed quite loudly at the committee hearings. Is there any research proving that a group of age-mate children gives more positive results in terms of personal development? - There are diverse positions around this issue, because it is possible to integrate children of various ages together . However, I would like to note that this is a methodology and if you start it and work under this methodology, you must have been well-trained in this methodology. You should valuably know this approach and must have gained due practices, because there are a lot of elements that must be taken into account. There are several types of groups in various age categories. For example, a three-year and five-year groups together or fouryear and six-year groups together. There are several variations and they differ in terms of teaching methodology. Anyway, when you take a decision on teaching by methodology, first of all, you should take responsibility that you are specialized in this issue. This a very cautious issue and it may bring negative results without qualified staff. When there is age differences, you can offer diverse approaches to children. I mean social diversity. You should plan such activities, where they will be jointly integrated. This may be painting, music and so on. You should also carry out other activities and provide teaching courses for specific age groups. - How does Felix kindergarten plan to integrate parents in the educational and pedagogical process? What are your plans in this direction? - Parents represent one of the most important chains. Cooperation with parents is of crucial importance and this cooperation should be carried out by an educational institution. As to our kindergarten, the potential of children is evaluated and re-evaluated in every three months. This is the period, when you can say whether you have attained some result and whether this or that child has enhanced capabilities. Every three months parents are able to receive information on capabilities of children in terms of development, including speech, cognitive abilities and so on. It is also important that kindergartens and parents jointly outline the future working plans and objectives and mix their positions in this respect. Informative trainings should be also held for management of child behavior, due mechanisms should be determined for specific age categories for establishing communication with children and for maintaining positive behavior in children and so on. Therefore, I would say again that the role of parents is the most important and this strategy will definitely bring real results.

TOURISM

June 13, 2016 #149

What are expectations of tourism companies and the field specialists this year? Ia Tabagari, the head of the association of tour operators, noted that in 2016, contrary to the previous year, no essential changes have taken part in the tourism infrastructure. However, there is no hazard the tourist inflow will decline. Both ski resorts and sea resorts have registered a great number of booking transactions. New hotels opened in Batumi and its surroundings (starting from Sarpi through Kobuleti) and we expect significant growth in tourist inflows from the neighboring countries, she said. Ski resorts emerge as the most sought-after destinations, including in Tush-PshavKhevsureti, Zemo Svaneti, Ajara Highland. Tourists show least interest in the Racha-Lechkhumi Region, Tabagari said. Certain problems exist in the adventure tourism direction because of lack of footpath, marking, professional, certified ski resort guides. Even tour operators stress this problem, Tabagari noted. It is positive tendency that the interest of tourists in Georgia grows. On the other hand, the problem deepens because the increased inflow of tourists aggravates the environment pollution issues and the resorts are littered more, Tabagari said. “Wastes are not withdrawn. A major part of tourists prefers to visit the Glacier. According to the 2015 indicators, several thousands of tourists visited the Glacier. The lack of cloakrooms and litter bins creates serious problems. Tourists also stress this negative aspect. Several years ago this problem was not notable, because the inflow of tourists was lower, while today this problem has deepened, because the number of visitors has increased. This is the responsibility of municipalities rather, because the cleaning services cannot satisfy high standards. Rivers and gorges have turned into trash dumps”, Tabagari noted. Travel Companies A major part of questioned tourism companies noted that in 2016 tourists show growing interest in Georgia’s resorts. This year the demand is growing for sea resorts, especially from Dubai, Teona Chkhutiashvili, representative of Nonstop Travel tourism company noted and added that her travel company has recently entered the market and cannot submit comparative indicators for the 2015 season. We expect satisfactory results this year. The demand is growing from Russia and even from Europe, Lika Gugushvili, the head of BeneTour travel company, noted. Before the tourism season com-

Georgia – A Secret Gem of Europe, Highly Attractive For Travelers Ski Resorts Lack for Cloakrooms, Rivers and Gorges Look like Trash Dumps Hot tourism season will open in Georgia soon. Several days ago Georgian Prime Minister Giorgi Kvirikashvili also overviewed this issue and noted that the tourism sector’s ratio in GDP had increased, according to the 2015 indicators. Anyway, the field contains higher potential for development, the Prime Minister added. “Within 5 months of this year a record number of tourists and travelers was recorded. In May 2016, the inflow of international visitors rose by 14.95%, while the ratio of foreign tourists, who stay 24 hours and more in Georgia, increased by 24.3%. “This is a very important positive indicator. Considerable upturn is recorded from our traditional partner countries, i.e. the neighboring countries from where we host tourists. Considerable growth was also recorded from the EU countries. These indicators are very positive. The inflow of international tourists also increased by 15.3% in the past 5 months and the tourism sector revenues throughout 2015 made up 1.94 billion USD. The year on year growth marked 8.3%, i.e. up 149 million USD compared to the same period of 2015. The tourism sector ratio in GDP has also increased by 16.2% and made up nearly 6.8%. Nevertheless, the tourism sector has much more potential for growth”, Giorgi Kvirikashvili noted.

mencement, the World Health Organization (WHO) spread information that the virus of Zika may attack Europe with high risk zones at the Black Sea coastline, namely, in Georgia and Russia and Madeira Iseland, i.e. the locations where Zikatransmitting mosquitoes are widespread, Nino Makhviladze, the head of Intercontinental tourism company noted. The WTO has urged the countries to prevent proliferation of mosquitoes. Therefore, this information could badly aﬀect the tourism season in 2016, because tourists always avoid similar hazardous information and expectations, Makhviladze said and added that at this stage there are no grounds to think that foreign tourists have changed their minds regarding visits to Georgia.

Region Meets Tourism Season with Innovations Ajara Innovations will be introduced in terms of tourism products and services, the Tourism and Resorts Department of the Ajara Government, noted. The Ajara Tourism Department inaugurated the summer tourism season oﬃcially on May 28. This year the hotel visitors will enjoy services of hotels and restaurants recommended by the Ajara Tourism Department. The quality certificate “Recommended by the Tourism Department” provides guarantees for safety, hygiene and high-standard services. Moreover, the region guests will be able to enjoy new tourism products in Ajara highland,

such as Mirveti biking route, Machakhela historical-culture route, Khikhani adventure route and Keda-Shuakhevi gastronomic route that enable ecotourism followers to discover new tourism products in Ajara. Travel packages on these routes may be bought at renovated tourism-information centers that also provide comprehensive information on tours. The tourism and resorts department also says that the region oﬀers innovations in terms of opening hotel complexes in the Region. In Summer period several new low-cost and high-class hotels will launch operation in Batumi. As a result, more than 700 new hotel suites will appear in Batumi (about 1400 accommodation places). Batumi International Airport is

meeting the new tourism season with new flights appointed. This summer 5 new airlines will perform charter and regular flights to Batumi from Israel, Kazakhstan and United Arab Emirates. The Ajara Tourism and Resorts Department expects upturn in tourist inflows from 10 target countries as a result of active PR and marketing campaigns. Sighnaghi The tourism season in Sighnaghi will last from May through October. The tourism season was inaugurated several days ago in the Region and everything proceeds successfully, the Sighnaghi governor David Janikashvili noted. Unlike the previous year, the inflow of tourists has nearly doubled, especially from Russia and Ukraine. If this process continues irreversibly, the Sighnaghi District will earn considerable revenues in this season, Janikashvili noted. Infrastructural works have been already completed in the city. Street lighting systems have been replaced, the city clock has been repaired and put into exploitation after a 6-year break, new square has been arranged, pavements were rehabilitated, and so on. Arrangement of a new tourist footpath will be completed in several days. The footpath connect the city with the Sighnaghi Stronghold. The footpath was not functioned since 2007, Janikashvili said. Currently, 37 guesthouses operate in the city and this suﬃce to host growing inflow of tourists, the Sighnaghi Governor noted. Representatives of Sighnaghi-based hotels talk about growing inflow of tourists and increased positive expectations. The management of Hotel Kabadoni, owned by businessman Lasha Papashvili, says that in 2016, unlike the previous year, the number of Russian and Azerbaijani tourists has considerably increased. The management of Hotel Solomon 1805 owned by Temur Chkonia also talks about extreme rise in tourist inflows in 2016. The hotel launched operation six years ago and this year it has registered a record number of tourists. The tourist inflows grow at the expense of Russian tourists, basically, the hotel management noted. “The number of foreign tourists, especially Russian tourists has doubled, contrary to the previous years”, the Solomoni 1805 management noted.

June 13, 2016 #149

PUBLIC-PRIVATE PARTNERSHIP

11 China to Allocate Georgia over $9Mln for Healthcare Development The Chinese government will allocate Tbilisi $9.1 million to improve the health infrastructure, the Georgian Finance Ministry said in a statement on Friday. Earlier in the day, Georgia’s Prime Minister Giorgi Kvirikashvili and Chinese Vice Premier Zhang Gaoli signed an agreement on economic and technical cooperation. “Under the agreement, Beijing will allocate Tbilisi gratuitous aid amounting to 60 million yuan [$9.1 million]. The funds will be used to improve the health infrastructure in the regions of Georgia, where the outpatient and inpatient services will be introduced, the center of crisis intervention, as well a psycho-social rehabilitation department for children and adolescents,” the statement read. China is one of five major trading partners of Georgia. In February, the negotiations between the two countries were launched on the establishment of a free trade zone. The parties expect to finalize them by the end of the year.

Hualing Opened Tbilisi Sea Hospital

PPP Model Ensures Social and Economic Development Elene Nizharadze PPP Center A major part of the developed countries make focus on the Public to Private Partnership (PPP) model, following results of the successfully implemented PPP projects worldwide (improved social and economic conditions). With special accents on strategic infrastructure and social services, the PPP model is to create and develop projects that will improve social and economic conditions of the society. The World Bank (WB) describes the PPP model as a long-term cooperation format between the private and public sectors (for at least 30 years) with the aim to provide improved services for the so-

ciety. A considerable part of risks moves from the public sector to the private sector that also assumes responsibility for projects management. Investment returns directly depend on the performed job. The private sector involvement in structuring, financing and implementing projects is of crucial importance to improve social and economic conditions of the population, the USAID representatives noted. The PPP model implies mobilization of ideas, forces, resources of both private and public sectors and the whole society. And this format is one of the decisive aspects for economic growth, businessfriendly environment and attainability and development of health and education services.

According to this interpretation, the PPP model calls for cooperating with the civil society with focus on philanthropic character of partnership. The format implies involvement of the society in the process for improving the living conditions, when the parties equally share the responsibilities. Interpretation of these organizations diﬀer from each other, to a certain extent. However, the objective of this model in both cases is the same – development and improvement of social and economic conditions of the society. Both developed and developing countries agree that it is necessary to involve the private sector in the infrastructure development process. Therefore, it is important to analyze whether we are able

to establish and develop the PPP model and implement projects that will be useful and profitable for the involved parties and the whole society. To this end the PPP policy should be developed on national level and the strategy should be based on the following conditions and principles: The strategy must consist of 5 basic stages: initiating, panning, implementing, monitoring and finishing the project. It is evident that the PPP model provides universal opportunities for sustainable social and economic development of Georgia. However, it is not suﬃcient to only establish this model: projects must be structured and implemented in the right way for the purpose of replenishing financial and infrastructural shortcomings in Georgia.

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Small Companies Produce Better Quality Wines than Large Ones

The Incentives for Green Roofs Development by the City Hall

Dubai Chamber Wraps up Trade Mission to Georgia

“Silk Road Group” plans to invest 100 million USD in Georgia

Georgian Startups To Compete To Represent The Country At Seedstars World Championship

El Al Airlines Performed the First Flight Tel Aviv – Tbilisi – Tel Aviv

A hospital is opened at the area of Tbilisi Sea City. “Hualing Group” has invested more than 2 million GEL in hospital construction. According to the Group, multi-profile hospital is equipped with high tech apparatus. “New City of Tbilisi Sea” is located at the land area of 420 ha near Tbilisi Sea. The complex includes residential apartments, hotel trade centre, 5-star hotel, wellness-spa centre and recreation area. “Hualig Group” started to make investments in Georgia in 2007. As of the news, published at the webpage of the company, the company’s investment capital in Georgia amounts to 500 million USD. Mobile Dispensary to be Placed in Batumi Boulevard Special medical mobile groups will work in old boulevard at Batumi beach during the summer season. According to Ministry of Healthcare, mobile dispensary with the appropriate equipment has been housed at the seaside park, near the beach. Doctors will give first aids to any person if necessary. Everyone will have the possibility to go free screening of hepatitis C at the place. The dispensary is mobile and will work from 10 pm to 22 am. “The number of medical injuries are increased seasonally and mobile dispensary is the best way to save ambulance crews and give timely medical aid”, – the Ministry declares.

Azerbaijani Company to Construct Pharmaceutical Storehouse in Kutaisi A pharmaceutical products storehouse is being constructed at the Hualing Free Industrial Zone in Kutaisi. The FIZ management has already signed an agreement with an Azerbaijani company that has been registered as Vector group. The pharmaceutical products storehouse will be built by Azerbaijani investments in the FIZ in the near future and the facility will launch operation at the end of 2016. The company plans to import medications to Georgia and later launch exports abroad, the Hualing FIZ executive director told the Business Contact. The Hualing FIZ was oﬃcially unveiled in October 2015. Currently, about 12 Chinese, Azerbaijani and Ukrainian companies operate in the FIZ.

PUBLICITY

June 13, 2016 #149

WORLD NEWS

June 13, 2016 #149

Quotes

“ Even with 80m potential consumers in a fast-moving consumer goods market estimated to be worth about $24bn a year.

I wish people would love everybody else the way they love me. It would be a better world

”

Muhammad Ali

Tesco sells Turkey business in push to refocus on core assets

esco has sold its grocery business in Turkey for £30m to private equity-backed local competitor Migros, underlining the attractiveness that non-political assets in the politically troubled country still hold for investors. The UK supermarket chain is shedding non-core assets, especially underperforming overseas businesses, in an effort to refocus on its main business as competitive pressures rise. It is also selling Giraffe, a familyfriendly UK restaurant chain, to Boparan Ventures, an investment vehicle that owns several restaurant businesses including chip shop chain Harry Ramsden’s. Tesco did not disclose the sale price for Giraffe but sources close to the company said it was less than the £49m it paid for it in 2013. Turkey is a deeply competitive grocery market where local groups have not just fended off rivals, but also gained shares as foreign players

have retreated. Even with 80m potential consumers in a fast-moving consumer goods market estimated to be worth about $24bn a year, chains such as Carrefour and Tesco have lost market share to local discounters with a better understanding of Turkish buying habits. Migros, backed by European private equity group BC Partners since 2008, has more than 50 years experience and nearly all Turkish management and has fared comparatively better. All of them are hoping to steal business from neighbourhood “ma-andpa” stories, called “bakkals” that control just under half of the retail market, and woo loyal customers with personalised service, meticulous presentation and an attention to the seasonality of Turkish cooking habits. Losses at the nearly 170 Kipa stores in Turkey totalled £137m on about £745m in revenue in the 2014-15 financial year.

Silicon Valley Conference Hosts Industry Leaders and Feature Successes in Armenian Tech Sector

rmenia IT Forum to Address Key Issues and Identify Opportunities for Armenian Technology Companies Leading members of the Armenian diaspora and those interested in technology companies and startups in Armenia convene at the Armenia IT Forum at Synopsys in Mountain View. The daylong gathering provides an opportunity to network, share ideas and identify investment opportunities in Armenia with CEOs, venture capitalists, academics, and entrepreneurs. The Forum is organized within the framework of the ArmTech Congress and held under the high patronage of the Prime Minister of Armenia. Between 2008 and 2013 Armenia saw 22% growth in its technology sector year-over-year, and continues to foster startups and talent through education initiatives as well as recently adopted legislation designed to make launching and growing a startup, incubator, accelerator, or re-

search organization much easier. Sponsors of the event include Microsoft, Hewlett Packard Enterprise, IBM, the Union of Information and Technology Enterprises, the Union of Employers of Information and Communication Technologies, and PicsArt, a photo app company with 65 million active users founded by two Armenian entrepreneurs. Organizers include the Government of the Republic of Armenia, ArmTech Congress, CEED, World Bank Group, Synopsys, and the Enterprise Incubator Foundation (EIF). The four panel discussions at the Forum will address critical issues including: • The IT Industry in Armenia Recent Developments and Success Stories • Building an Ecosystem for Global Startups and Connecting to Global Markets • Challenges and Opportunities of Investing in Armenia • The Role of Education in Unlocking Startup Talent

Some part of the cargo will be sent to the Baltic countries within the route of international railway project ‘Viking’.

Azerbaijan’s Azerbaijan’s railways to SOCAR com- first time link China to missions Baltics, Russia to India new well in Caspian Sea Azerbaijan’s state oil company SOCAR will additionally produce more than 12.77 million cubic meters of gas and 36,500 tons of oil per year as it has put into operation a new well in the Caspian Sea, said SOCAR in a message June 10. The well was put into operation at the Gunashli oﬀshore field in the Azerbaijani sector of the Caspian Sea after being overhauled. The Gunashli field plays an important role in Azerbaijan’s oil and gas industry. The field’s shallow part is developed by SOCAR on its own, while its deep-water part is developed jointly with foreign partners. Currently, SOCAR is implementing a program for stabilizing and increasing the oil production.

Turkey Growth Beats Estimates as Household Spending Surges Turkey’s economy expanded more than forecast in the first quarter on household consumption, which grew by the most in five years following a 30 percent increase to the oﬃcial minimum wage. Gross domestic product grew 4.8 percent in the January-to-March period compared with 5.7 percent in the previous quarter, Turkey’s state statistics bureau said on Friday. The median estimate of 17 analysts in a Bloomberg survey was 4.4 percent. Seasonally adjusted output rose 0.8 percent. Households’ expenditures, which makes up more than two-thirds of the economy, rose by 6.9 percent, the highest pace since the third quarter of 2011, while government spending grew 10.9 percent, the most since 2009, Turkstat said. The minimum wage increase as well as a refugee influx from neighboring Syria drove the increase in consumption, said Kapital FX economist Enver Erkan, whose 4.7 percent GDP forecast was the most accurate in the survey. “It gives you the numbers but it’s hard to call it healthy growth,” Erkan said by phone, referring to the one-time nature of what’s driving expansion.

he first cargo train from India to Russia passing through the territory of Azerbaijan will be launched in late August 2016 as part of the North-South Project, Javid Gurbanov, head of the Azerbaijan Railways CJSC, told reporters in Baku June 9. “The freight train will take oﬀ from India’s Mumbai city, then it will be transported by ferry to the Iranian port of Bandar Abbas in late August,” he added. “Then by railway the train will arrive in Iran’s Rasht city.” Gurbanov added that the goods will be transshipped to trucks in Rasht city and delivered to Azerbaijan’s Astara city. Gurbanov also stressed that then the cargo will be delivered to Moscow by railway from Astara city. “This multimodal transportation will be carried out together with the railways of Azerbaijan and Russia,” he said. The agreement among Russia, Iran and India on the North-South International Transport Corridor was signed in Saint Petersburg (Russia) on September 12, 2000. Azerbaijan joined the agreement in September 2005. North-South International Transport Corridor will link Northern Europe and South-East Asia. It will serve as a bridge to connect the railways of Iran, Azerbaijan and Russia. The North-South transportation corridor is meant to connect the Northern Europe with South-Eastern Asia. It will serve as a link for connecting the railways of Iran, Azerbaijan and Russia. The corridor is planned to transport five million tons of cargo

a year in the first phase and over 10 million tons of cargo in the future. Gurbanov also said that two cargo trains, which will become part of the international railway project ‘Viking’, will be sent to the Georgian port of Poti from China through the territory of Azerbaijan in late July early August 2016. He said that major logistics company DHL will be involved in cargo transportation. “Two trains will be sent from China to Kazakhstan’s Dostyk station in late July-early August 2016,” Gurbanov said. “From there, the trains will arrive in the Georgian port of Poti via the Trans-Caspian International Transport Route, that is, across the sea and the territory of Azerbaijan.” “There the cargo will be distributed according to its destination,” he added. “Some part of the cargo will be sent to the Baltic countries within the route of international railway project ‘Viking’.” The piggyback ‘Viking’ train project was launched in 2003. The project’s participants are Ukraine, Belarus, Lithuania, Latvia and Bulgaria. Later, Bulgaria, Romania and Turkey joined the project. The total length of the Ilyichevsk (Ukraine)-Minsk (Belarus)-Draugyste (Lithuania) route is 1,766 kilometers. In February 2016, Ukraine and Lithuania signed a memorandum on the accession of the container train ‘Viking’ to the Trans-Caspian International Transport Route from Europe to China through Azerbaijan and Kazakhstan.

PUBLICITY

June 13, 2016 #149

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,

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 13, 2016 #149