Caucasus Business Week #152

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July 4, 2016 #152

July 4, 2016, Issue 152 - www.cbw.ge

Capital Economic Benefits of Tbilisi’s General Land Use Plan

Business The First Conceptual Restaurant Kozlovna in Tbilisi

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Pg. 10

Econo-mix Analysis of Main Aspects of UNM Economic Program Pg. 4

Shuakhevi HPP: Construction of The largest energy project and its technologies

SMALLER WINERIES MAKE BETTER WINES THAN LARGE COMPANIES Pg. 5

Sh Shuakhevi HPP is the largest inv investment projects that has been ca carried out in Georgia, over the las last 35 years, with its technical as aspects. Shuakhevi HPP project is developed by Adjaristsqali Ge Georgia – a joint venture between In India’s Tata Power and Norway’s Cl Clean Energy Invest (40 percent ea each), and the remaining 20 perce cent by the International Finance Co Corporation (IFC), Th The Shuakhevi project is the fir first hydropower project in Ge Georgia certified by the United Na Nations Framework Conventio tion on Climate Change for ca carbon emission reductions.

Th The project will be constructed in Shaukhevi and Khulo Muni nicipalities with the overall in installed capacity of 187 MW (as we well as an additional 9.8 MW on Sk Skhalta River).

Pg. 7

U Universal Healthcare Program H Should Comprise S B Broader Medicine C Component Th President of Belarus has The re recently signed a resolution that pr protects medications and medica cal equipment from extra prices in retail and wholesale trades, ba based on the USD market value.

Ho How would you appraise the m mentioned initiative and do you fin nd it possible to take the same de decision in Georgia too?

It iis excellent when a government ca cares for its citizens and provides pr products of vital importance such as medicines, controls prices and do does not enable pharmaceutical co companies to operate with high pr profit margins. The mentioned de decision was logic in Belarus, be because since 1995 they have announced construction of «market socialism», where the market, to a certain extent, are subjected to central planning and instructions from the above, but remains socially-oriented. There is a different reality in our country.

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2 GOVERNMENT

NEWSROOM Ministry of Finance Announces About the Surplus Performance of the Budget According to the department, tax revenues of consolidated budget has been performed with an excess of 77,7 mln towards the plan in 6 months and the rate has amounted to 4,158 billion GEL.

Pensions are increased from July 1 According to Ministry of healthcare, growth is made in several directions. Davit Sergeenko explains that pension should be increased to the disabled people and children from July 1. The pensions will be 180 GEL.

ECONOMY

Georgian Economy Grew by 2.1% In May 2016 According to preliminary estimates, the real GDP growth rate made up 2.1% in May 2016, while the average real growth of the first five months amounted to 2.9% compared with the same period last year.

A Free Trade Agreement Between Georgia and EFTA was Signed Exactly 2 years after signing the DCFTA with the EU, Georgia has concluded the FTA with European Free Trade Association (EFTA) that encompasses Switzerland, Lichtenstein, Norway and Iceland.

BANKING

NBG Refinancing Loan of 250 million GEL NBG issued 7-day refinancing loan of 250 million GEL (worth of 112.4 mln US dollars) in last week. According to the Galt & Taggart week review, the National Bank of Georgria issued 91-day refinancing loan, worth of 20 mln GEL in last week.

Lending in foreign currency is diminished The volume of lending by commercial banks in May decreased by 274.0 million GEL and constituted 15.2 billion GEL. 60% of the portfolio accounts for the total share of 2 banks, lending of “Bank of Georgia” – 2,6%; “TBC Bank” – 1,5%.

BUSINESS

Operator of Anaklia Sea Port to be Chosen Before July 31 The finalists include two companies from Singapore and one each from China, Saudi Arabia, Turkey and the Netherlands, said Levan Akhviediani, chief executive officer of Anaklia Development Consortium.

Georgian Peach Exports Extremely Grow Georgia has exported 492 tons of peach from June 1, 2016 to June 28, 2016, up from 52 tons as compared to the same period of 2015. Peach picking season is in active phase and the Kakheti Region is expected to reap more than 30 000 tons this year.

COMPANY

Free Parcel Freight to USA – New Project by Barami Company Barami company is the first shipping company in Georgia that provides air, sea freight and land transportation services.

Barami Logistics has launched a new project in Georgia.

Kvirikashvili: Visa-free travel will signify EU’s strong support of Georgia

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rime Minister of Georgia Giorgi Kvirikashvili says granting visa-free travel to the Schengen Zone for Georgia will be a signal of the European Union’s (EU) “strong support for Georgia” and “a huge stimulus” for the country to continue on its EuroAtlantic path and strive to achieve more success in the future.

Kvirikashvili spoke about Georgia’s European aspirations in front of more than 700 guests at the annual Parliamentary Assembly of the Organisation for Security and Co-operation in Europe (OSCE PA), which is taking place in Tbilisi from July 1-5.

Georgia’s high official stressed the importance of Georgia gaining visa-free travel to the EU’s Schengen Zone, and this was “one of the top issues” in the Georgia-EU recent agenda. Kvirikashvili said Georgia had “big expectations” for being granted a visa waiver and hoped the official process would be completed soon.

Granting visa-free travel for Georgia will be a signal of the EU’s strong support for Georgia and a huge stimulus for us. On one hand our people will feel that their European choice provides very definite benefits, and on the other hand, visa liberalisation will allow us to better share the best European achievements and values through undisturbed travel,” said Kvirikashvili.

He adamantly said Europe was “a very clear choice” of the Georgian people and everyone knew it was the “best way for the country’s democratic development, security, peace and welfare”.

In this context Kvirikashvili briefly mentioned the recent separation of the United Kingdom from the EU and said “despite the existing challenges, the EU’s power and

strength will increase in the future”.

He then went on to speak about the OSCE’s role in ensuring European security and he praised the intentions of the organisation. However he said added efforts and new initiatives were needed inside the OSCE as Europe faced “very serious security challenges”.

For the first time after the Second World War Europe faced attempts of forcible changes of its borders. In these situations the OSCE is practically paralysed due to the insufficiency of making solutions. Dispite large protests no practical steps are being taken to suspend violations,” Kvirikashvili said.

We are in a challenging situation now. Despite the fact we‘re facing conflicts on our soil there is no OSCE presence in Georgia and we believe this is unacceptable. All this inactivity has also led to uncontrolled growth of armament in the South Caucasus,” Georgia’s Prime Minister said.

In front of the hundreds of foreign and local guests, Kvirikashvili highlighted the importance of regional stability, he condemned the terror attacks in Turkey and Europe and stressed Georgia was a big contributor to international peace and security through its participation in international peacekeeping missions.

A major portion of his speech concerned Georgia-Russia relations and the current difficult situation in Georgia’s two occupied Abkhazia and Tskhinvali (South Ossetia) regions. Kvirikashvili emphasised the fact Russia continued to violate all international laws and continued its occupation of Georgian territories.

He went on to brief the audience about the numerous instances

where occupying forces kidnapped Georgian citizens, installed new socalled border signs and engaged in creeping occupation that took over more and more Georgian land. Furthermore, the Georgian population living in the de facto regions were deprived of getting education in their mother language and had their human rights continually violated, he said.

To emphasise this further Kvirikashvili brought up the recent murder of Georgian man Giga Otkhozoria by a Russian-controlled border guard on May 19 near the Abkhazia ABL, who has not yet been punished for the “brutal” murder.

The challenges and risks speak about the necessity of joint actions and new visions. All our efforts will be directed towards peacefully solving conflicts,” said Georgia’s PM, adding when the country gained a visa-free travel regime to the EU or other benefits as it moved closer to Europe, all this success would be shared with the people of Abkhazian and Tskhinvali regions.

On a final note PM Kvirikashvili mentioned the upcoming Parliamentary Elections set for October 8, 2016 and said the Government was doing its best to ensure these elections were held in a fair, transparent and democratic manner without any violence.

He said all international observers recognised Georgia’s 2013 Presidential and 2014 Local Government Elections as fair and transparent, and the upcoming Parliamentary Elections would be held to even higher standards.

This was the responsibility of the Georgian Government and he welcomed all international observers to monitor the Parliamentary race.

Georgia and Germany create new rail connection from China to Europe

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eorgia and Germany are deepening bilateral ties to improve international foreign transport and consultancy services for a wide range of transport-related projects over the coming five years.

Two countries’ national rail operators, Deutsche Bahn (DB) and Georgian Railways, signed a Memorandum of Understanding (MoU) and agreed to expand the scope of their strategic cooperation activities.

DB and Georgian Railways plan to work together to create a new rail connection from China to Europe via central Asia and Georgia, thereby opening up a new route as an additional option for customers seeking an overland connection.

We are proud that DB has the chance to contribute to the renaissance and modernisation of the ancient communication routes

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

July 4, 2016 #152

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

between the continents. With a rail history reaching back to 1871, Georgia has a key role to play in this undertaking,” said Ronald Pofalla, Member of the Management Board for Economic, Legal, and Regulatory Affairs at DB. In March 2016 DB signed an agreement with Chinese national operator, China Railways, to expand the rail connections between Europe and China. Following the deal, DB wanted to make the most of the opportunity afforded by China’s Silk Road initiative, ‘One Belt – One Road’, said Pofalla. This project envisioned a whole array of infrastructural undertakings covering a total of 65 countries.

In another move, DB and Georgian Railways started cooperating on planning the development of rail freight links between Europe and Iran, with Georgia as a transit country.

DB said extending the rail connection to India was an option for the future.

Meanwhile in Georgia, experts at DB’s subsidiary DB E&C will support Georgian Railways to organise and produce rail services, reform its rail system’s structure root-and-branch, and modernise and maintain rail technology including the company’s vehicle fleet.

The MoU between Georgian Railways and DB was signed within the Georgia visit of Germany’s Foreign Minister Frank-Walter Steinmeier. The German official, together with Georgia’s Economy Minister Dimitry Kumsishvili, were involved at the MoU signing ceremony.

The partnership was signed by chairman of Georgian Railways Mamuka Bakhtadze and Niko Warbanoff of DB.

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

July 4, 2016 #152

PUBLICITY

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ECONO-MIX July 4, 2016 #152

Georgia has Chance to Become Aviation Hub in Region

SANI SENER

TAV Holding President

With New Energy – for Better Georgia

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Georgia has the chance to become an aviation hub in the Region, TAV Holding President Sani Sener noted at the ceremony of laying foundation of a new terminal at Tbilisi International Airport.

“TAV Georgia has been making contribution to development of Georgian economy, tourism and aviation for many years. TAV has made more than 100 million USD investments in Georgia over the past years. We have built an entirely new international airport terminals in Tbilisi and Batumi and arranged international-standard infrastructure there. In the Caucasus Region Georgia is an unconditional leader in terms of strategic and economic development. The new terminal enables the country to become an important aviation hub in the region. I believe that the project implementation will bring much benefit and advancement to the Georgian economy and aviation”, Sani Sener noted. TAV Georgia is a subsidiary of TAV Airport Holding. The company appeared on the Georgian market in 2005.

Analysis of Main Aspects of United National Movement Economic Program

MERAB JANIASHVILI Economic Analyst

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he Caucasus Business Week (CBW) plans to publish analytical articles about economic programs of main political parties. This issue introduces an economic program of the United National Movement (UNM) that the party proposed a week ago.

2016-2020 Action Plan of United National Movement The United National Movement (UNM) has already introduced the economic part of its action plan. The program makes focus on reduction of taxes and growth in social assistance.

The newspaper format does not enable to fully discuss the program. Therefore, we will analyze the most important aspects, including employment and tax reduction issues.

Fifth meeting of Business Café Hosted

by Pasha Bank On June 29th ROOMS Hotel Tbilisi hosted the fifth meeting of Business Café - a project initiated by Insource, Executive Search & Consulting Company and exclusively being supported by PASHA Bank from day one. The session hosted the representatives of top management of the leading companies with a special guest – Giorgi Kadagidze, former President of National Bank of Georgia, who presented the topic for discussion “Innovation Management”.

The first meeting of Business Café was held in October, 2015 and since has significantly grown in popularity as it is a format that covers the topics of high relevance to the business community.

Insource and PASHA Bank plan to organize three more meetings till the end of the year.

It is the first time for this kind of meetings to be held in Georgia and they serve as a place for discussions on the current processes and news from different fields of business. The meetings host up to 20 participants and are moderated by a special guest who engages the attendees into experiencesharing.

Among the moderators of the Business Café meetings were: David Gogichaishvili, Alexander Jejelava (currently Minister of Education of Georgia), Andro Dgebuadze and Papuna Toliashvili.

Topics discussed at Business Café meetings are rather diverse: „management of human resources“, „organizational corporate culture“, „Management 3.0 or MBA Books in Mirror“ and „Circular Organizational Structures“.

“We believe that the rising interest in Business Café among the top management of leading Georgian companies is due to the carefully selected topics and the prominence of invited special moderators.

Listening to Giorgi Kadagidze deliver an interactive presentation on Innovation Management was extremely interesting and duly appreciated by our guests. I also need to emphasize that partnership with Insource on this project is outstandingly productive and pleasant,” said Anano Korkia, Head of PR and Marketing Department at PASHA Bank.

Employment

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It is upon the reader to decide whether the UNM has introduced realistic election promises.

Regretfully, the program has been represented in the form of slogans and is not accompanied by due economic analysis.

”

According to the UNM statement, as a result of their tax initiatives, 45 000 new job places will be created in 2017 and the same number of families, i.e. at least 150 000 persons will improve their economic conditions. In the next years, additionally about 30 000 new job places will be created by accumulating additional financial resources in the business sector and population.

Any citizen welcomes similar promises, but another issue is whether these promises are realistic and whether the UNM economic team will manage to fulfill these promises. We remember that under the ruling of the United National Movement (UNM), the unemployment indicator sharply increased.

For example, in 2005 the unemployment level was 13.8%. The figure rose to 15.1% by 2011. In 2009 the unemployment index reached 16.9%, but later slightly declined. As to the quantity of unemployed citizens, the figure marked 241 000 in 2015. Meanwhile the UNM program assures that 45 000 new job places will be created in 2017 and additional 90 000 new job places will be created in the next 3 years. According to roughly estimations, the number of unemployed citizens is expected to decrease to about 106 000 persons. This signifies the unemployment index will decrease by 56% in 4 years and fall to to 5% by 2020 from 12% of 2015. Similar figures are miraculous for even the developed countries.

Tax Abatement In 2017 the income tax will decline to 15%, while the indicator will decrease to 10% for the next 4 years; The profits tax will decrease to 10% for the next 4 years; Business companies with about 90 000 turnover will be considered as micro business companies and will be exempted (instead of current 30 000 GEL) from taxation;

Business companies with 250 000 GEL turnover will be considered as medium businesses and will be taxed by 3-5% rate (instead of current 100 000 GEL); The top margin for exports of products by parcel will be 1500 GEL instead of 300 GEL. Instead of current 100 000 GEL, only companies with over 200 000 GEL turnover will pay VAT. In 2017 we will reduce excise tax rate on oil products by 25% and lower excise rate on alcoholic products to the averaged European indicator. This signifies additional turnover capital for business and cheaper oil products for our citizens; In 2017 we will abolish tax on interest return to create additional preferences to citizens, who have accumulated savings and replenish the family budget through these dividends; In 2017 we will abolish the minimum two-year property ownership period that is required for exempting physical bodies from taxation in the real estate sales process, as well as the six-month period for vehicles. As a result, tax burden will be alleviated to ten thousand of physical bodies. Citizens involved in sales of apartments, land plots, vehicles and other assets will be exempted from extra barriers and taxes; This list is only a part of the whole plan and, as a result of its implementation, the businessmen and entrepreneurs will accumulate more money and the bureaucracy will narrow. In 2017 we will reduce state bureaucracy and other ineffective expenditures by at least 1 billion GEL. To make the business safer and self-confident, the United National Movement will announce full taxation amnesty after the 2016 parliamentary elections; The top margin will rise to 500 000 GEL (instead of current 50 000 GEL), when tax evasion disputes will be subjected to administrative regulations, not criminal proceedings; The Finance Police will be abolished; Preliminary detention mechanism will be restricted on economic crimes starting 2017.

It should be noted uplifting the VAT top margin cannot leave more money in the economy, but this decision will direct more amount to the budget from economy. All auditors know this. As to income tax reduction from 20% to 15%, this decision will narrow budget revenues by 500 million GEL, while profits tax reform scheduled for January 1, 2017 will decrease state revenues by extra 500 million GEL. If we take into account excise tax reduction on oil products, alcoholic beverages, as well as tax removal on interest returns and real estate sales, budget revenues will decline by extra 1 billion GEL. Tax reduction and state administrative costs abatement are wonderful, but at the same time, similar large-scale so-

cial promises are unrealistic, i.e. both tax reduction, budget revenues abatement and growth in social expenditures are unimaginable. And the social promises by the UNM, along with tax reduction, are as follows: Starting November 2016 we will increase state pensions by 50 GEL to 230 GEL. This growth will concern both age pensioners and persons with evidently expressed disabilities and children with disabilities; Consequently, pensions of persons with moderate disabilities will also increase.

Starting 2017 state pensions constant growth will be resumed along with state economy expansion; we will restore allowances to all families that were abolished in wrong way. We will introduce evident, simple and just criteria for appointment of allowances and will not let frequent and ungrounded revision of the developed criteria; The Healthcare system will become socially-oriented and just. Instead of the current practice, when everybody, poor and rich, enjoys budget allowances (178 GEL annually on averaged per citizen), we will introduce improved healthcare package; For poor – premium package (the policy value – 225 GEL a year); For less poor – standard-plus package (the policy value – 205 GEL a year); Citizens with under average income – standard package ( the policy price – 190 GEL a year); Unlike the current situation, all named packages will comprise a component for financing medications too; All citizens, including high-income citizens will be insured from unaffordable medical expenditures (about 70 000 GEL a year); In 2017 we will increase the price of school vouchers by at least 50%; Extreme growth in school voucher and financial autonomy of public schools will enable secondary school guardian boards to considerably increase payroll budgets. As a result, wages of public school teachers will significantly increase to at least 650 GEL; The number of students financed under the Annual state grant programs will increase by 5 000 ones; When determining the needs of persons with disabilities, the government will replace the medical model with social instrument to ensure equal opportunity of education and employment for all citizens.

We will increase employment index of persons with disabilities in the public sector.

It is upon the reader to decide whether the UNM has introduced realistic election promises. Regretfully, the program has been represented in the form of slogans and is not accompanied by due economic analysis. However, even rough calculations clarify that the UNM-pledged allowances are unrealistic and unfeasible.

July 4, 2016 #152

WINE MARKET

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SMALLER WINERIES MAKE BETTER WINES THAN LARGE COMPANIES

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mall companies produce better wines than major ones”, Levan Chubinidze, one of the founders of the Wine Tourism Association, noted.

Winemaking companies that own small wineries manufacturer better products compared to major industrial companies, he said.

Today, winemaking companies compete in terms of quality level.

It is very food that various wine exhibitions are held in the country, but separate meetings should be organized so as the companies set up business relations.

Family wines are directly associated with natural wines, as compared to products of big industrial companies, he noted.

“Interventions in vineyards require much expenditure. The big companies possess more resources to pay more in fertilizers and consequently, receive more wines. Family winegrowers who are not oriented

on sales make better wines because of chemical non-intervention”, Chubinidze said.

The wine tourism association founder talks about the importance of infrastructure for wine tourism development and necessity of training people involved in the sector.

Georgia is a country of wine tourism and comprises serious potential of development in this respect, but we should perform much job, including bring the infrastructure in order, train staffs and this will be a correct investment that will definitely bring results. Families involved in this sector and winemakers are sure they will receive real benefits, Levan Chubinidze noted.

Almost all winemaking companies contribute to the wine tourism development, because everybody knows that this direction comprises huge potential. The Georgian wine has serious perspectives for success,

Chubinidze said.

“When we take more serious steps on the international market, we will be able to offer valuable competition on the global market”, Chubinidze said.

The Caucasus Business Week (CBW) has inquired opinion of both major and small winemaking companies. According to the survey, representatives of winemaking companies, despite their scales, noted that high-quality and natural wines are made in Georgia, both at family wine cellars or major wineries.

Zurab Ramazashvili, chairman of the Telavi Wine Cellar supervisory board, explains that similar statements are absolutely incompetent in the winemaking field. Similar statements comprise even abusing elements, he added.

“I believe this is an incorrect statement, because it humiliates the business”, Ramazashvili noted.

Lado Uzunashvili, founder of Megvineoba Mucado winemaking company, says that his company was founded 2 years before and produces 100% of products for exports. It is a foolish statement as if major companies produce lower quality wines compared to smaller ones. Our company is not a big one, but I could not betray the giants that represent the image of Georgian wine and I cannot agree with this statement, he said.

«It is famous that major winemaking companies produce genuinely good products. This is a one-eyed statement. Similar statements must not undermine big companies.

Similar statements are destructive», Uzunashvili said.

As to wine tourism development, this direction will become priority for our company in near future, he said.

«When my company manages to satisfy the standard of a wine tour-

ist, as a consumer, I will develop this direction», Uzunashvili noted.

Aleksandre Kharebava, head of Megvineoba Khareba company says that wine tasting is an only indicator in this respect and everything will be clarified.

«Besides taste properties, number of company medals and diplomas should be also taken into account.

This is the biggest indicator, but the simplest way is to make conclusion by tasting wines», Kharebava noted.

Irakli Talakhadze, director for Kindzmarauli Marani noted that he cannot make comments regarding the statement because he had not heard about this statement.

Badagoni company representative Gia Shengelia also refrained from making comments.

Giorgi Margvelashvili, one of the founders of TbilVino company has also abstained from commenting this statement.

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CAPITAL

July 4, 2016 #152

Martijn Kanters

Economic Benefits of Tbilisi’s General Land Use Plan

KATE TABATADZE

propertygeorgia.ge

Tbilisi will have a general development plan by April, 2017.

What change will the document make in the capital city? - Martijn Kanters Team Leader Urban Economics & Real Estate for City Institute Georgia has the answer.

- Next year Tbilisi is going to have its so longed General Land Use Plan. How economically beneficial is it going to be for the city?

- General Land Use Plan will make a big change in Tbilisi. Real estate sector is an accommodator for economic development.

Georgia’s economic growth is expected 3-4% in the coming years while this indicator has been average 10% annually for Tbilisi the past 10 years.

After doing economic analysis we came up with low-middle scenario where we forecast economic growth in Tbilisi between 6-8% a year average. This forecast is based on the city’s competitiveness aspects, which are in bad shape.

There are two indicators that determine urban competitiveness: Human Capital and Quality of Life. In the 21st century the main challenge for the city is to develop, attract and retain productive people-it’s all about people!

It’s not so much about the companies any more. If you look at the employment growth in Tbilisi, 5-10% are self-employed people-and by 2030 we expect this figure to reach up to 20% like we have in many European countries today. As for the unemployment rate, it remains high-22%. Still, bigger problem is that we have a very low percentage of active population in Tbilisi-37.5% of total population. Urban planning cannot deal with this but we can deal with other aspect- Quality of Life.

The number of tourist overnight stays per capita is one way how this indicator can be measured. We benchmarked this for all the cities in Central and Eastern Europe. Prague turns out to be the most attractive city with tourist overnight stays exceeding 10 million, while in Tbilisi this indicator is 2 million. However, we see potential here since it’s a big increase from 0.5 million in 2009. Vilnius, Riga and Bratislava have 4 million tourist overnight stays and Tbilisi can get there-it’s completely realistic in 15 years. Quality of life is a very important factor to determine economic growth in a contemporary world. Everybody’s afraid that if we have visa-liberalization with Europe and Georgia will continue to move close to European Union, lots of Georgians will leave the country unless we manage to make this country more attractive. We are still optimistic, realistic optimistic. But it’s time for a reality check.

Everything in the new General Land Use Plan is forecasted until 2030. So, we’re looking 15 years in the future. If everything goes right by that time, economically speaking, Tbilisi will be in the place where cities like So-

phia and Vilnius are today. Georgia is a very politicized country and things can go wrong here, this is the trick. It’s important to create a system to guarantee a long-term stability, not everything has to depend on politics, take the politics out!

- If we look at the industrial market, what can you say is right and wrong about it?

- In Tbilisi we have more than 2000 hectares of industrial land. According to our latest estimates, only 1200 hectares are more or less used and approximately 800 hectares are left vacant.

If we measure industrial land vs population density, the worst district in Tbilisi would be Didube where Industrial Land Pressure Indicator (ILPI) is 15 time more than in an average Tbilisi district, lots of people are leaving in a small area here- almost 8500 people per sq.m. What we are proposing, based on this analysis, is that total demand for commercial usage of all spaces (industrial, commercial, office, public, etc.) be rezoned-450 hectares total, 80% for green space public areas and small percentage for constructions.

- More concretely, how will this rezoning work for green areas?

- Accessibility to nature and public spaces is a big problem in Tbilisi. We are talking about a massive increase in public green areas. In theory, the whole area of Tbilisi is a little bit more than 500 sq.km and built up area is half of that, so we must have lots of green space and this green space is very poorly accessible for people. You have few options in Tbilisi: Turtle Lake, Mtatsminda Park and Botanical Garden and you always have to take a taxi, you cannot just walk to get there. So, the issue here is not just the green areas but the accessibility to them.

In Didube district, which performs worst in regards to ILPI as mentioned above, construction of a big central park is planned. People need to breath.

- Does the General Land Use Plan envision making Tbilisi a walkable city?

- We call it a walkable urbanity and it’s a very important aspect of an attractive and competitive city. You need to be able to walk.

Tbilisi is a terrible city for walking and this has to be improved both in the city center and in districts. This is crucial.

- As for the infrastructure and transportation, what’s your view on Tbilisi Railway Bypass project?

- The weak link here is that there are no options that could be economically feasible.

Railway relocation is a huge project and it’s very expensive, I’ve been involved in a few of them in Europe. If you want to make them work economically you have to construct a lot of real estate. In Prague I was working on a railway project where we could build 1.2 million sq.m. In Tbilisi, total demand until 2030 for all commercial real estate will be around 900 000 sq.m-so we could do one big project and that’s it - and that would be wrong. We simply cannot do huge projects in Tbilisi.

- But we do. What about Panorama project?

- When Co-Investment Fund wants to invest 500 million USD in the city center that is good news but should they do it that way? I would prefer them to act like a real Co-Investment Fund and not an Investment Fund. We need many small projects in Tbilisi rather than a few big ones. We suggest creating Special Intervention Zones, this way we identify strategic points in the city, stimulate it and the investment will spill over the surrounding area.

Tbilisi does not need big buildings.

- Are there some crucial changes for retailers?

- I’m proposing strong limitations in retail sector. It’s the biggest employer in the city and it’s in a very dangerous situation. I had same issues in other cities worldwide, telling shopping center developers to let go of the traditional model. In Tbilisi spending power on fashion is small, otherwise Tbilisi Mall would be full and what we see is that two floors there are still empty. As for East Point, it’s new and we need to give it some time. We have oversupply of fashion retailers in Tbilisi, with so many fashion brand shops only Zara and Massimo Dutti are performing well and they keep the whole group alive. What you buy here costs half price in Europe. In Prague we had the same issue and they just stopped developing large shopping centers. In Tbilisi we have Tbilisi Mall, East Point and the future Gallerea Tbilisi project-this starts to affect the traditional street shopping. You can see shops leaving Chavchavadze Avenue, Rustaveli Avenue and instead new restaurants pop up there, which is logical. Pekini Street has a very uncertain future. Also, we have Tbilisi Central, Katvasvla, GTC-what is going to happen with old shopping centers? How should they reposition themselves? Definitely not with fashion shops. We need to protect retailers and what I suggest is that any big retail development, with more than 5000 sq.m, should be accompanied by a mandatory feasibility study.

As said, for fashion retail, we are on the limit already while the expansion potential we may have is in small supermarkets.

- What about office spaces?

- It’s a less complicated story. In Tbilisi we have about 10sq.m per office employee. We anticipate annual demand on office space in the range of 15-20 000 sq.m. It’s important to note that offices of the future will be very different, they will be smaller and very strongly connected with other functions, such as hospitality, Merani shopping mall is one of the best developments to me. It’s almost fully leased.

We have a number of business people coming from different countries who do business here, but are not based in Tbilisi. These people do not need huge offices, what they need is more short-term offices.

- Last but not least, tell us about the hotel sector in the city’s capital? What’s the story?

- With all these new hotels coming, next year will be a big year for Tbilisi hotel market.

Today occupancy rate is still sky high-75%, but it will go down in the coming years. Hotel operators should get prepared that rates will also go down, maybe down to the average European rates. Hotel accommodations in Tbilisi today are very expensive.

Finally, it is important to note that a better and stricter General Land Use Plan will contribute to the city’s economy and real estate market. Stronger protection of existing assets will contribute to the formation of a real estate investment market and limiting the currently huge supply of development land will direct development to strategic locations and have an upward effect on land prices.

SHUAKHEVI HPP

July 4, 2016 #152

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Construction of The largest energy project and its technologies Shuakhevi HPP is the largest investment projects that has been carried out in Georgia, over the last 35 years, with its technical aspects. Shuakhevi HPP project is developed by Adjaristsqali Georgia – a joint venture between India’s Tata Power and Norway’s Clean Energy Invest (40 percent each), and the remaining 20 percent by the International Finance Corporation (IFC), The Shuakhevi project is the first hydropower project in Georgia certified by the United Nations Framework Convention on Climate Change for carbon emission reductions.

The project will be constructed in Shaukhevi and Khulo Municipalities with the overall installed capacity of 187 MW (as well as an additional 9.8 MW on Skhalta River). The Shuakhevi scheme is comprised of two dams with reservoirs and one weir on the Adjaristsqali, Skhalta and Chirukhistsqali Rivers respectively Shuakhevi HPP has utilized several modern technologies during construction including more modern concrete admixtures to produce longer lasting and more durable concrete, turbines with more modern protective coatings to reduce wear, and modern safety standards to ensure overall safety of the Project facilities.

Overall, the Project is nearly 80% complete. Both dams are well underway and scheduled to be completed on time.

The excavation of the headrace tunnel is complete, and the tunnels from Skhalta to Didachara and from Chirukhistsqali to Skhalta are well advanced.

The Shuakhevi HPP will be comprised of 38 km of tunnels and adits. The construction of the tunnels was achieved by the drill and blast method. The blasting was designed and tested to ensure the amount of explosives was sufficiently minimal not to damage surrounding the surrounding rock mass nor structures.

There are three main tunnels at the Shuakhevi Project; a headrace tunnel from Chirukhistsqali to Skhalta (powering the Skhalta powerhouse), a transfer tunnel from Skhalta to Didachara, and the main headrace tunnel from Didachara to Shuakhevi (powering the Shuakhevi powerhouse).

The surface area of the Skhalta reservoir is approximately ~12ha at full supply level, with a volume of 0.75 mM3 live storage. The surface area of the Didachara reservoir is approximately 15ha at full supply level, with a volume of 1.2 mM3 live storage.

The largest flows at the Project will occur during the spring snow melt during March, April, and May. Any water that is in excess of the reservoir capacity, and that can not be used for generation, would be passed around the dam via the spillways located on each dam.

Sufficient minimal water is expected to be available even during the summer months to operate the power station. It

will take longer time filling the reservoir during the summer months and less power generation per day. The minimum operation level at the Didachara dam is El. 770.

The Shukhevi HPP will generate electricity by utilizing the natural flow of water over a loss in elevation. Water will flow from Chirukhistsqali to Skhalta dam; water from the Skhalta river will then be added and transferred via the Skhalta-Didachara tunnel to the Didachara reservoir, where water from the Adjaristsqali- and Ghorjomi river will be added, and cumulatively the water will be transferred via the headrace tunnel to the Shuakhevi powerhouse. At the powerhouse water will turn the turbines (2 each) which in turn rotate the rotor

heads with in the generators producing electricity.

There are many supervising bodies that oversee the construction of the Shuakhevi HPP. These range from the Ministry of Energy to the Technical Supervision Agency from the Government of Georgia. The Lending institutions for the Project maintain and Independent Engineer that visits the project quarterly for a through quality, cost, and schedule review. On a daily basis, there is an Owners Engineer (Mott MacDonald) present on the Project, whose staff in monitoring all facets of the construction works. In addition, AGL maintains a supervisory staff to ensure compliance with design and specifications for the Project.

Suakhevi HPP will finish 2016 and operation will start from 2017. The Operations and Maintenance team will be a combination for foreign staff and Georgian staff. AGL is striving to identify and train as much of this overall staff from Georgia.

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REAL ESTATE

July 4, 2016 #152

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STARTUP

July 4, 2016 #152

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NINO KUP

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BUSINESS

July 4, 2016 #152

Gurieli Tea Manufacturer to Produce Japanese Tea Geoplant, a Georgian tea manufacturing company that produces tea under the brand name of Gurieli plans to increase exports and introduce organic tea up to the end of 2016. The company head Mikheil Chkuaseli told the Financial newspaper that Gurieli company plans to diversify products and improve packaging quality.

The Prince Gurieli line has been improved in the premium segment and now the company offers classic, fruits, grass tea varieties. We hope to strengthen our position in the HoReCa segment too. Geoplant will also rehabilitate tea plantations and introduce new tea sorts in Georgia, including Sencha Japanese tea variety that is made by infusing whole tea leaves into hot water. This is very popular tea in Japan.

EVENT

BANKING NEWS

The First Conceptual Restaurant Kozlovna in Tbilisi

Kozlovna was opened for the first time in Czech Republic in 2007. Currently over 30 similar outlets are operating in Czech Repuiblic, Slovakia, Moldova, Russia, Kazakhstan, Turkey and now in Georgia. Czech Beer acquired global popularity and represents a synonym of the highest quality. Kozel

is the most popular Czech Beer. Therefore, the Kozlovna (Kozel Pub) is a global network and is represented in dozens of countries.

Presentation of the first conceptual restaurant Kozlovna, was held in Tbilisi a few days ago (address: 46/50 Kostava str.). The event was attended by the Extraordinary

NEWS

STARTUP

Tskali Margebeli Launches Production of Natural Juices The plant construction works started in June 2015 and will end in August 2016. The project is being implemented partly by a EBRD credit line.

The price of the first phase of the project is 32 million EUR. German Krones, Austrian Rauch and Swedish Tetra Pak companies are taking part in the project implementation.

Georgian Tea to Enter Global Market under Trademark of ALTHAUS Georgian tea will be sold under the trademark of international brand of ALTHAUS. Gela Shanshiashvili, head of Caucasus Natural Beverage company, told the Commersant that Georgia tea is a unique, top-quality product and that’s why the company has decided to cooperate with the global brand.

The product should be exported abroad and under the project the product will be sold in Europe under the trademark of Althaus, Shanshiashvili said.

and Plenipotentiary Ambassador of the Czech Republic, embassy representatives, as well as by journalists.

Guests invited to Kozlovna got acquainted with Czech cuisine, where dishes are prepared only based on Czech recipes and technology. Czech beer technologist poured mixed dark and light beers exclusively for them. „Today we opened one of the most famous conceptual beer restaurants in Georgia.

Kozlovna is the first restaurant that will be definitely followed by opening of the other ones and we intend to make our contribution to development of beer consumption culture in Georgia. Consumers will have

27-year-old Georgian PR Manager Becomes Successful Winemaker Keti Berishvili Georgian winemaker

Keti Berishvili is a 27-year-old Georgian winemaker. Her family has been doing this business for the last several years and Keti became involved in it a year ago. Last year, she received the first harvest from her own vineyards. Saperavi and Rkatsiteli wines, fermented together in qvevri (traditional Georgian clay pot for making wine), are already branded. Gogowine now is sold at organic wine shops.

As Keti says, considering that she is just a beginner, her first try was quite successful.

Keti is a PR manager by profession. She underwent master courses in Public Relations at the GIPA (Georgian Institute of Public Affairs) university in Tbilisi but she left her job and a very promising career in banking sector a year ago and moved to the village of Artana in Telavi district, to join her father. Keti’s goal was to produce organic wines and introduce a new direction in which she thinks her family business should move.

She believes in the future and is ready for new challenges.

The wines produced by this young farmer are sold at special shops. Keti Berishvili has even received orders from USA and Denmark and she believes that next year Gogowine will cross the border.

“Of course I will export a small amount at first because the local market is now more important for me. We produce only organic wine and in very little amounts. However, this kind of production is hugely popular among the customers. I presented my first wine at the exhibition held in Italy and received a very good feedback. I am going on and I hope to learn more in winemaking,” Keri Berishvili says.

the opportunity to taste the best Czech beer and dishes,” - said Nikoloz Khundzakishvili, Natakhtari’s Corporate Director.

According to Levan Namgaladze, Kozlovna’s Director, many interesting novelties will be offered to customers. Chef from the Czech Republic was invited who would train Georgian cooks during one month.

Dark and light draft Kozel can be tasted only in Kozlovna, where they are poured for visitors in a special manner. And only here you can taste beer dishes prepared according to Czech and European methodology, e.g. shank, which is being cooked during 24 hours.

PASHA Bank funds a training for socially vulnerable and successful students PASHA Bank sponsored a one-day training organized by Tbilisi Hippo Fund and International School of Intellect and Education (ISIE). The training was arranged for the socially vulnerable students and those with high academic performance. The training was held near Tbilisi in a specially selected casual atmosphere, so that the participants could freely communicate, share opinions and gain basic knowledge about the various subjects. The participants were chosen based on their applications and motivation letters. Specially invited speakers Maka Asatiani (Unicard, Marketing Director), Bidzina Kumsiashvili (Founder at Tbilisi Hippo Fund, lecturer at Pennsylvania University), Jemal Arjevanidze (Specialist at Tbilisi European Youth Center) and Tornike Chargeishvili (Peace Corps Regional Coordinator) presented the following topics: Writing projects, marketing and effective communication, volunteering and informal education. The project was supported

by Tbilisi City Hall, Wehelp.ge, Generations for peace and Tbilisi life.

“PASHA Bank happily agreed to support this project as we think that the experience would benefit the students in a variety of ways. It has become something of a tradition for PASHA Bank to sponsor educational projects, as we believe in the effectiveness and importance of such initiatives. We strive to contribute to the growth and development of the Georgian and regional economy and business with quality education being an absolute pre-requisite,” – said Anano Korkia, Head of PR and Marketing at PASHA Bank.

HEALTHCARE

July 4, 2016 #152

SHOTA GULBANI President of AYFB

Universal Healthcare Program Should Comprise Broader Medicine Component

The President of Belarus has recently signed a resolution that protects medications and medical equipment from extra prices in retail and wholesale trades, based on the USD market value. How would you appraise the mentioned initiative and do you find it possible to take the same decision in Georgia too?

It is excellent when a government cares for its citizens and provides products of vital importance such as medicines, controls prices and does not enable pharmaceutical companies to operate with high profit margins. The mentioned decision was logic in Belarus, because since 1995 they have announced construction of «market socialism», where the market, to a certain extent, are subjected to central planning and instructions from the above, but remains socially-oriented. There is

a different reality in our country.

After the Soviet Union collapse, the Georgian Republic made a jumping motion from the planned economy to the market economy without preparatory reforms and arrangements.

This caused formation of major monopolies in almost all important fields, including the pharmaceutical market.

Naturally, the economic policy of the current government is more oriented on society, but in our country business companies operate in compliance with the free market economy principles. This signifies that the government of Georgia does not set the upper profit margin to pharmaceutical companies, unlike Belarus. I personally back this idea.

Naturally, in theory, this practice may be introduced in Georgia too, but this requires political will and a little strictness. I would like to note

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that in most cases it is necessary to take political decisions, because in this case we talk about medications – one of the most important products for our citizens.

If our government fails to do the same, then other ways should be determined for socially vulnerable groups to alleviate burden of expenditures on medications for the family budget. In this respect it is possible to increase the medications component in the universal healthcare program, because various research works have showed that accessibility of medications remains number one problem in the healthcare sector. But this should not let pharmaceutical companies make a fortune at the expense of state subsidies. Alternative policy should be carried out in this respect that will force companies to lower medication prices.

Cottage Medicine Kit Price Declines by 2.3% in May The Healthcare Platform nongovernmental organization has published the May report for the last group of the Panaskerteli medicine kits. The organization has explored the list and prices of medications of the Cottage Medicine Kit at four leading pharmaceutical networks. The report shows that, as compared to the previous month of April, the price of medications of this group has declined by 2.3%. The cottage medicine kit price in April was 84 GEL. Prices have mainly decreased on medications and accessories. Total price of antiseptics of this group has not changed.

In May the price of Cetirizine medicine decreased to 2.50 GEL from 3.50 GEL. The price of nitroglycerin has diminished by 0.10 GEL. The price of insects repellent aerosol Lavanda decreased to 6.90 GEL from 7.80 GEL. The cottage medicine kit comprises such medications as: antiseptics, burntreating substances, antivenoms, fever relief medications, analgesics, cardiology drugs, sunburn protection and insects repellent means.

The Healthcare Platform continues exploring and monitoring of prices of medications of the Panaskereteli medicine kits and supply of information to interested bodies.

Office Medicine Kit Cheapens by 10.9% in May The Healthcare Platform nongovernmental organization has published a report on the list and prices of medications of the office medicine kit for the month of May. The organization has monitored 23 medications and accessories, including antiseptics, analgesics, cardiology, pressure relief, anti-flu medications, antihistamine and so on. According to the report, in May prices of the office medicine kit medications has declined by 10.9%. in April the price of this group was 101 GEL, while the price declined in May and made up 89 GEL. The difference between the April and May prices on medications of this group is 12 GEL. Tariffs have declined on accessories, especially, on a pressure meter, which cost 25.92 GEL in May instead of 29 GEL of April; The price of Ketorolak medication has decreased from 9 GEL to 1.35 GEL. The price of nitroglycerin has also decreased by 0.10 GEL. The price of Cetirizine has decreased from 3.50 GEL to 2.50 GEL. The Healthcare Platform, as part of Pharma Monitor, continues monitoring of medications of the Panaskerteli Medicine kit and supplies the required information to all interested persons.

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PUBLICITY

July 4, 2016 #152

July 4, 2016 #152

WORLD NEWS

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Quotes

“ The plane crashed in the mountainous Jabal Turkmen area of the Syrian province of Latakia, killing the pilot.

You do not lead by hitting people over the headthat’s assault, not leadership.

”

Dwight D. Eisenhower

Russia’s Putin lifts ban on charter holidays to Turkey

India products to be exported to Europe via Iran and Armenia?

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Aside from the other Eurasian Economic Union (EAEU) countries, the US, China, India, Iran, and Georgia are among the most interesting countries for Armenia, in terms of development of trade and economic relations.

Robert Harutyunyan, Deputy Foreign Minister for Economic Affairs, told the above-said to Banks.am.

“Now, we [i.e. Armenia] are discussing with our partners the chance of exporting Indian products to Europe via Iran, Armenia,” said Harutyunyan. “We want to figure out the [respective] transport costs, time, [and] potential problems, so as to present the results of this study to Indian businessmen.” In the deputy FM’s words, Iran and Georgia also are priority directions for Armenia. we’re a little passive when it comes to Georgia,” added Robert Harutyunyan. “It’s clear that there is a [considerable] Turkish and Azerbaijani [business] capital in Georgia, and this has its impact.

ussian President Vladimir Putin has lifted curbs on tour firms selling holidays in Turkey, brought in after a Russian jet was downed last year.

The move was announced in a decree (in Russian), in which Mr Putin also ordered trade talks with Turkey.

The ban on charter flights hurt the tourist industry in Turkey, a favourite destination for many Russians.

The Kremlin accepted a letter from Turkish President Recep Tayyip Erdogan as an apology this week.

Mr Putin spoke to Mr Erdogan by phone on Wednesday, telling him he planned to lift the travel sanctions.

The lifting of non-travel trade sanctions will depend on the outcome of the trade talks, the Russian leader said in his decree.

Mr Putin also condemned Tuesday’s gun and bomb attack on Istanbul’s Ataturk airport, one of the busiest in the world.

Istanbul airport attackers from ex-USSR Tourism to Turkey hits rock bottom Mr Erdogan had expressed “regret” earlier this week to Mr Putin and to the family of the Russian pilot killed in the incident.

The fighter jet was shot down near the Syria-Turkey border in November. Turkey said the jet had been warned repeatedly after entering Turkish airspace, a claim fiercely denied by Russian officials.

Mr Putin said he had been stabbed in the back and accused Mr Erdogan of collaborating with so-called Islamic State.

Russia responding by hitting Turkey with a raft of sanctions, stopping the Russian package holidays and banning the import of Turkish foodstuffs.

The Russian Su-24, an all-weather attack aircraft, was flying in skies above the Turkey-Syria border area on 24 November when it was shot down by Turkish F-16s.

The plane crashed in the mountainous Jabal Turkmen area of the Syrian province of Latakia, killing the pilot.

A Russian marine involved in a helicopter rescue attempt was killed when the helicopter came under fire from local fighters.

The navigator in the jet, Capt Konstantin Murakhtin, survived the crash and was taken to Russia’s Hmeimim airbase in Latakia by Syrian government forces.

Turkey said planes were warned 10 times during five minutes via an “emergency” channel and asked to change direction.

The Russian defence ministry insisted that the aircraft remained within Syria’s borders throughout its mission and did not violate Turkish airspace and received no warnings.

Azerbaijan to Spend 6 Billion USD within the Framework of the TANAP Construction Project

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xpenditures of the Southern Gas Corridor CJSC within the framework of the Trans Anatolian Natural Gas Pipeline (TANAP) construction project will exceed $6 billion, a senior official of the Azerbaijan’s state oil company SOCAR told Trend.

“Expenditures of the Southern Gas Corridor CJSC, the main share in which belongs to the government of Azerbaijan will amount to $6.2 billion by 2020,” said the representative of SOCAR, which owns the remaining 49 percent in this company.

The Southern Gas Corridor CJSC acts as an operator of the project, which includes, in par-

ticular, the TANAP project worth $9.2 billion.

“Nearly a quarter of the planned investments – more than $2 billion – has been already spent during the TANAP construction,” SOCAR representative said. “The project is running according to schedule.”

TANAP project envisages transporting gas from Azerbaijani Shah Deniz field from the Georgian-Turkish border to the western border of Turkey. The gas will reach Turkey in 2018, and after the completion of the TAP construction, the gas will reach Europe around early 2020. Currently, the shareholders of TANAP are: SOCAR (State Oil Company of Azerbaijan) – 58 percent, Botas – 30 percent and BP – 12 percent.

Kazakhstan joins Central Asia-Middle East transport corridor Kazakhstan has joined the Central Asia-Middle East (Uzbekistan-Turkmenistan-Iran-Oman) transport corridor project, the newspaper ‘Neutral Turkmenistan’ wrote June 30.

Agreement on the establishment of the international transport and transit corridor was signed in Ashgabat between the governments of Iran, Oman, Turkmenistan and Uzbekistan April 25, 2011 at the level of foreign ministers.

The new corridor will allow the countries of Central Asia in the long term to be linked to the ports of the Persian and Oman gulfs via an optimal route. According to experts, Russia and China can also get access to new solvent markets, which could make the project even more economically attractive.

Erdogan also noted that Russia is Turkey’s strategic partner, and the Turkish authorities do not want to ruin relations between the two countries.

Ankara may use Turkish Stream as bargaining chip in talks with Gazprom

A

nkara may use the Turkish Stream gas pipeline project to strengthen Turkey’s position at the bargaining table with Russia’s Gazprom, says Bruce Pannier, US expert on Central Asia and energy issues. “It seems Moscow, and more importantly Gazprom, never forgot about Turkish Stream,” Panier told Trend June 30.

“Just since news of Erdogan’s message to Putin, I see many Russian officials talking about Turkish Stream.

Of course, they could soon resume negotiations on the project. There were some significant differences of opinion between Russian and Turkish officials before the Russian plane was shot down,” he said.

On June 27, Turkish President Recep Tayyip Erdogan sent a letter to his Russian counterpart Vladimir Putin expressing deep regret for the Su-24 bomber incident and extending condolences to the family of the Russian pilot who was killed in the incident.

The incident earlier led to a crisis in relations between two countries.

In his letter Erdogan also noted that Russia is Turkey’s friend and strategic partner, and the Turkish authorities do not want to ruin relations between the two countries.

Dmitry Peskov, spokesman for the Russian president, assessed the letter as an important step towards normalization of relations with Turkey. On June 29, the presidents of two countries held a phone talk and agreed on a private meeting.

As for the Turkish Stream, which is meant to take the Russian gas to Tur-

key across the Black Sea, Peskov said June 30 that it is too early to discuss the resumption of the project.

“For now, it is probably premature to speak about it,” Peskov told reporters. “You know there are various letters of intent signed by Gazprom in Italy a few months ago. Various other routes are being discussed. It is too early to say which routes will be specified and enter the implementation stage.”

Talking about Turkey’s interest in the Russia-proposed project, Bruce Pannier said Ankara could certainly use the extra gas.

“However, Ankara will soon be getting some gas from the Trans Anatolian Gas Pipeline (TANAP) with the promise that volumes, including for Turkish consumption, will increase from that pipeline in the years to come,” he said.

“Again, Turkey could use the gas, but with TANAP due to come on line in 2018, I think Ankara will want to prolong discussions with Russia on Turkish Stream until Turkey starts receiving gas from TANAP. It would strengthen Turkey’s position at the bargaining table with Gazprom,” Pannier believes.

Overall, Pannier believes that Turkish president’s letter to his Russian counterpart was a big step towards improving relations between two countries.

“It seemed like Russia was waiting for such a gesture, so that it could bring relations with Turkey back to what they were prior to the downing of the Russian military plane,” said Pannier.

“With Russian troops in Syria, Moscow benefits from, if not good ties with Turkey, at least some sort of working relationship,” he added.

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PUBLICITY

July 4, 2016 #152

July 4, 2016 #152

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

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

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,

LIMELIGHTTRAVELINFOCENTER Address: 13 Sioni Street, 0105, Tbilisi (at the end of Shardeni Street) Phone: +995 322 999 123 E-mail: info@limelight.ge Web-page: www.limelight.ge Facebook page: www.facebook.com/limelight.ge

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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July 4, 2016 #152