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July 18, 2016 #154
July 18, 2016, Issue 154 - www.cbw.ge
PASHA BANK: General Sponsor of Poti International Chess Tournament for the Third Year Pg. 4
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Company news Rompetrol Georgia Organizes International Conference on Competition Law Issues
Development Archi Group, development company that prioritises quality and ecology Pg. 8 Regulations that will Bring No Benefits
Why do Leading Companies Ignore Genuine Milk?! Pg. 7
CA new bill of amendments to the tobacco control law has been submitted to the Parliament. MP Guguli Maghradze proposed the initiative at the supreme legislative body in spring. The bill calls for introducing radical changes, including prohibition of smoking at public places and full restriction of many products related to tobacco. The legislative initiative will be discussed in autumn session to decide whether to adopt new regulations or not. According to the new amendments to the tobacco control law, a number of new regulations will be introduced, including full prohibition of smoking at public places, full restriction of outdoor advertising of tobacco, forbidding of sales of tobacco and tobacco products and its accessories to passengers in vehicles. Moreover, tobacco sales should not be visible and closed boxes should be used at commerce facilities, including at booths, stores and supermarkets.
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Singapore Healthcare Synergy of Public and Private Responsibilities Since 2013 the Government of Georgia has been implementing the universal health program and its financial component grows every year. The opposition wing representatives frequently criticize the program. They urge the Government to revise the program’s intent and determine the list of services more precisely. The opponents mainly criticize the ruling team for unequal conditions for persons with chronic diseases, because they need the most continuous medicamental treatment, while the universal health program does not support medications component in most cases. It is impossible to appraise efficiency of the universal health program, because this process requires certain time. Despite this, the second stage of the reforms has been planned and implemented in the health ministry. Pg. 11
2 GOVERNMENT
NEWSROOM EBRD is Supporting Georgia’s Leading Telecoms Company EBRD is supporting Georgia’s leading telecoms company MagtiCom with a $100 million loan to improve and expand its broadband penetration in the regions of Georgia.
Government to Subsidize Grape Harvest This year the Government will subsidize Grape Harvest 2016, Georgian Prime Minister Giorgi Kvirikashvili noted before the government meeting and expressed hopes that farmers and peasants will fully sell out their products.
ECONOMY
In January-June Georgia’s Exports Declined by 12%, Imports Grew by 30% In January-June 2016 Georgia’s foreign trade turnover made up 5705 million USD (without unorganized trade), up 20% as compared to the same period of 2015.
Producer Price Index is declined by 6% In June 2016 the Producer Price Index (PPI) for Industrial Products decreased 2.0 percent over May 2016 and 6.0 percent compared to June 2015. The index rose 19.9 percent over the 2010 average.
BANKING
The Volume of Money Transfers Increased in June 2016 In June 2016, the volume of money transfers from abroad made up 105.4 million USD (230.6 million GEL), which is 4.9 percent (4.9 million USD) more than the amount in June 2015.
Finca Bank adds additional points of customer commitments “Finca Bank” is also involved in the campaign, started by National Bank of Georgia (NBG), in order to strengthen protection of consumers’ rights. The bank adds additional points of customer commitments.
BUSINESS
Exports Price of One Bottle Georgian Wine Declines by 25% In the first half of 2016 Georgia exported 19.8 million bottles of wine to 40 countries, up 44% compared to the same period of 2015. In the reporting period, the exports value made up 46.6 million USD, up 18% year on year.
Tobacco Industry New Regulations will not Come into Force on January 1, 2017 The Parliament has not showed clear position around the bill, because MPs believe that similar bills should not be adopted in a hurry.
COMPANY
Itsi Tskali Water Bottling Company to Open in Ambrolauri A new enterprise will open as part of the Produce in Georgia state program. LLC Itsi Tskali has been included in the list of state-approved enterprises.
PM: Georgia is very serious about its EU future
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n international conference “Georgia’s European Way” opened in coastal Batumi, where hundreds of Georgia’s allies and representatives from the European Union (EU) are gathering for the two-day event. The 13th annual conference dedicated to Georgia’s European future and regional challenges began this morning with a welcome speech by Georgia’s Prime Minister, which focused on Georgia’s European intentions and the challenges facing the country. In his opening remarks Kvirikashvili stressed it was important the conference took place in Batumi, which he said was a “European town … at the crossroads of Greek, Roman, and Ottoman civilizations from ancient times”. Georgia is Europe,” he said and stressed Europe was the end goal and the irreversible choice of Georgian people. Kvirikashvili then highlighted Georgia’s progress to Europe and said the country had made “impressive” efforts towards full membership of the EU. In this context Kvirikashvili spoke about Georgia’s steady progress in implementing the GeorgiaEU Association Agreement (AA)
and Deep and Comprehensive Free Trade Area (DCFTA) deals. He also stressed Georgia had successfully fulfilled all its requirements for visa-free travel to the EU and the country had significantly overhauled its legal and electoral systems. Moreover, we met and applied many of the AA provisions even before the agreement officially entered into full force on July first,” Kvirikashvili said. We urge EU members to understand that Georgia’s commitment to Europe represents not a new problem for the EU to solve but a visible demonstration of everything right with the Union. Georgia does not mean more injury to the EU. Rather, it is a useful tourniquet to an injury occurring elsewhere,” Kvirikashvili said. He hoped the process of assimilating Georgia into the EU would happen “at the earliest possible opportunity”. In his speech Kvirikashvili also spoke about the current situation in Georgia’s occupied territories Abkhazia and Tskhinvali (South Ossetia) and condemned Russia’s continuing continuing occupying activities there. He said it was very unbeneficial that the only international monitoring mission operating in Georgia
– the European Union Monitoring Mission (EUMM) – had no access to the breakaway regions and that there was no presence of the Organisation for Security and Co-Operation in Europe (OSCE) in Georgia. We must, therefore, intensify our efforts to restore a comprehensive OSCE presence in Georgia,” Kvirikashvili said. When speaking about the October 8 Parliamentary Elections in Georgia, Kvirikashvili promised the election race would be conducted at high, European standards. The International Conference in Batumi has been organised annually by the State Minister of Georgia on European and Euro-Atlantic Integration since 2007. This year‘s partner of the event is GLOBSEC, a Slovak think-tank that focused on domestic and international security. The participants of the conference included EU Commissioner for the European Neighborhood Policy and Enlargement Negotiations Johannes Hahn, Deputy DirectorGeneral in Charge of Directorate (Neighbourhood East) Katarina Mathernova, EU Special Representative for the South Caucasus and Crisis in Georgia Herbert Salber and many other local and foreign top figures.
UNESCO World Heritage: Monuments of Georgia’s ancient capital removed from endangered list
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istorical monuments of Georgia’s ancient capital Mtskheta are no longer recognised as being in danger of deterioration by UNESCO. The decision to remove the Georgian monuments from the danger list came after a meeting of the UNESCO World Heritage Committee in Istanbul, Turkey on Wednesday. Located 20km outside capital Tbilisi, the monuments sprawled across Mtskheta include the 6th Century Holy Cross Monastery of Jvari as well as 11th Century Svetitskhoveli Cathedral and Samtavro Monastery. The complex of medieval religious sites was put on the UNESCO List of World Heritage in Danger in 2009 following “deterioration of its stone fabric and fresco paintings caused by work carried out to its edifices”, UNESCO said. The 40th session of the international organisation’s World Heritage Committee, which opened on July 10 in Istanbul, adopted a decision to remove the monuments from the list. The committee’s decision “reflects recognition of Georgia’s efforts to improve the safeguarding and management of the site”, the official World Heritage Committee website said.
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 18, 2016 #154
Mobile phone: +995 591 013936 Email: caucasianbusiness@gmail.com
With this decision, the Mtksheta monuments will again feature on the UNESCO World Heritage List. UNESCO’s World Heritage Committee received details of recent work carried out at the medieval sites of Mtskheta from the Minister of Culture and Monument Protection of Georgia Mikheil Giorgadze and his delegation, who attended the session in Turkey. Georgia’s Culture Ministry said the state office would continue its close cooperation with the UNESCO World Heritage Centre and ensure monitoring of the historical buildings. Georgia and UNESCO have been cooperating on a three-year agreement to ensure protection and preservation of the historic part of Mtskheta by imposing special rules on urban development in the city. Initiated in 2015, Georgia’s Government used the agreement to set a special buffer zone to protect the historic zones of the city. The Historical Monuments of Mtskheta were first inscribed on the World Heritage List in 1994. The locations include the three churches as well as “major archaeological remains bearing witness to
the high level of art and culture of Georgia over four millennia.” The List of World Heritage in Danger currently features 49 properties across the world including the 11th Century Bagrati Cathedral and 12th Century Gelati Monastery in western Georgian city Kutaisi. The two monuments were included in the list after restoration works in 2012 threatened to “undermine the integrity and authenticity” of the sites.
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PPI for Industrial Products Decreased 2.0 percent over May 2016
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2, 12 mln to be Spent on Construction of Telavi-Akhmeta Section of Kakheti Main Gas Pipeline
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ISET: Tbilisi – the Cheapest City in June
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Turkish Airlines Holds 19 Percent of Georgian Air Market
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 18, 2016 #154
PUBLICITY
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ECONO-MIX
Spa Sector has Great Development Perspectives in Georgia
NUTSA ABRAMISHVILI
Director of Schuchman Wines Georgia
Regulations that will Bring No Benefits
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Schuchman Wines Georgia plans to implement wine spa services not only in Kakheti region but also at some other locations in Georgia. According director of the company Nutsa Abramishvili, introduction of wine spas in Georgia has received great attention from foreign and local tourists, Business Contact reports. “Every material, that is used in wine spa is made by local raw products and is 100 percent bio production. All of the products comes from local vineyards, that has 800 000 year history,” she said. Our long-term goal is to implement the service as a network project and we are working hard to reach this goal. Spa sector is on its very earliest phase in Georgia and it is worth to mention that it has great potentials. Our company is in wine business, but we are trying to interconnect these two sectors that will provide highest quality service,” Nutsa Abramishvili noted. The company unveiled a wine spa in the company-owned chateau in the village of Kisiskhevi, the Kakheti Region in May.
MERAB JANIASHVILI Economic Analyst
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PASHA Bank – General Sponsor of Poti International Chess Tournament for the Third Year Already for three years in a row PASHA Bank has been sponsoring the Poti International Chess Tournament. The Festival took a start on July 13th. It has been annually organized since 2006 by Poti Local Municipality. Till 2016 the tournament used to be held under the auspices of Ms. Nana Aleksandria, a world chess legend, two times world vice-champion, 12 times winner of world chess Olympics. It consists of tournaments in 10 different categories between juniors as well as adult professional chess players. The festival is the biggest in Caucasus by volume and the most important one considering the caliber participants many top rated male and female chess players. The festival is listed in the annual calendar of world chess federation FIDE. The chess games are transmitted live via internet enabling chess aficionados worldwide to watch them in real time. “One of the main characteristics of our business approach is the fact that we are oriented on long-term partnerships. PASHA Bank has been operating in Georgia since 2013 and it is the third year in a row that we are the General Sponsor of the chess festival. This sport has always been popular in Georgia and there are world-class Georgian chess players who have achieved international recognition and ultimate success. We hope that this tradition will continue and festivals like this will encourage and motivate young people to develop their skills in chess and beyond,” commented the head of PR and Marketing Department at PASHA Bank, Anano Korkia.
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A number of parliament members and government officials have also showed negative attitude towards the new bill.
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new bill of amendments to the tobacco control law has been submitted to the Parliament. MP Guguli Maghradze proposed the initiative at the supreme legislative body in spring. The bill calls for introducing radical changes, including prohibition of smoking at public places and full restriction of many products related to tobacco. The legislative initiative will be discussed in autumn session to decide whether to adopt new regulations or not. According to the new amendments to the tobacco control law, a number of new regulations will be introduced, including full prohibition of smoking at public places, full restriction of outdoor advertising of tobacco, forbidding of sales of tobacco and tobacco products and its accessories to passengers in vehicles. Moreover, tobacco sales should not be visible and closed boxes should be used at commerce facilities, including at booths, stores and supermarkets. The bill also bans advertising tobacco products, their accessories and smoking devices and grows the space of health warning indications on cigarette packs to 65% from 30%. Moreover, smoking will be banned at minibus taxis, buses and private taxis. These regulations refer to drivers of these vehicles, first of all. The bill calls for removing tobacco trade along highways, where drivers can directly buy cigarettes. Moreover, obligatory licenses will be introduced for tobacco sellers. The bill envisions introduction of many other regulations. Opponents have already staged criticism over the bill, including state officials and state structures, businessmen and economic experts. Everybody agrees that the Authorities should take efficient steps to reduce the smoking level in the country, but adoption of this edition of the bill will not tackle the problem, but generate other ones. The fact all sellers will be obliged to take special licenses creates corruption preconditions. Moreover, many street sellers or small enterprises will just go bankrupt, because they will not be able to satisfy new regulations. At the same time, cafes and restaurants will have
to arrange special zones for smoking, which must be less than 20% of total space and isolated from the remaining space. Naturally, arranging similar infrastructure requires additional expenditures and enterprisers will have to increase prices of products and services. As a result, ordinary consumers will bear losses. It should be noted that even the bill author does not expect fundamental positive results in terms of reduction of smoking level in the country. The international experience suggests that similar laws bring unimportant effects, MP Guguli Maghradze told the Resonance newspaper. “Similar restrictions are expected to reduce the smoking level by 1% on average, but similar bills protect rather the rights of potential smokers and nonsmokers”, the bill author explained. Actually, the international experience proves that only regulations cannot bring efficient results. The most efficient mechanism consists in social campaigns carried out by the Government for the smoking level reduction, when the Authorities carry out various education activities to persuade citizens in harm effects of smoking. Anyway, similar campaigns require considerable expenditures too. Introduction of regulations reduces the smoking level by 0.5-1% and these restrictions should be implemented stage by stage in the course of time by maximally adapting them to public interests. The new bill lacks for these characteristics. “Tobacco industry does not object to new regulations, but these regulations should be foreseeable for the business and should be oriented on results. I cannot understand what is the benefit of regulations that will worsen the situation, will not reduce the smoking level and increase corruption risks? It is important to take into account both pros and cons», Nikoloz Mchedlishvili, vice president of the international chamber of commerce noted. A number of parliament members and government officials have also showed negative attitude towards the new bill. According to the previous week’s information, several ministries and government struc-
tures submitted negative conclusions concerning the bill. «The bill comprises issues that, to my thought, may be fulfilled actually, but I believe changes are of radical character and radical changes are always difficult to execute, because sudden change of habits in people causes internal protests and therefore people easily violate the restrictions. I would rather back the bill for introducing restrictions stage by stage. I repeat we should do our best to reduce the smoking level in the country and protect nonsmokers, but this process should be carried out reasonably and we should avoid decisions that will remain on paper and will not be fulfilled in reality», Vakhtang Khmaladze, head of the parliament’s committee for legal issues, said. It should be noted, besides radical regulations determined by the bill, the monitoring system for fulfillment of new requirements remains also unclear. Who will control whether a taxi driver smokes or not in vehicle?! Who will measure the space of smoking zones at all cafes and bars, whether the smoking zone’s total space is less than 20% or not?! It is necessary that the Authorities valuably appraise expected results of this or that steps and take decisions only after that.
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Italians Produce Pizza in Armenia to Export it to Russia and Georgia
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Vakhtang Khmaladze not to Support Tobacco Regulation Restrictions
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Group IPM plans to Engage in Green City Project at Tbilisi Sea
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Millennium Biltmore Hotel to Open in Tbilisi
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Georgian Wine has not been formed yet Stable Market for Realization
July 18, 2016 #154
PUBLICITY
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BANKING
TBC Bank’s Mortgage Center
YOUR MORTGAGE GUIDE KATE TABATADZE PG Editorial Director
- Mortgages constitute one of the most in-demand products in the banks’ portfolios, as well as for brokerage firms and companies that work on real estate sales. What advantages does TBC’s Mortgage Center have over its competitors? The main advantage of TBC Bank’s Mortgage Center is the ‘one-window principle’ – within a single space, our customers can familiarise themselves with offers from every leading developer that is active on the market, and at the same time, receive a mortgage loan from TBC Bank at the best possible terms. Within the quiet and calm environment of the Mortgage Center, customers can study the developers’ projects, decide on the specific requirements that ought to be met by the prospective real estate purchase, and then obtain a mortgage loan from us at favourable terms. Information about the projects is also available on our website. In order to remain competitive on the market, we try to cooperate with as many developers as possible, whilst maintaining the principle of trustworthiness at all times. Tbilisi, Batumi, Bakuriani, Gudauri and Marneuli – we offer our clients a choice between 80 ongoing construction projects in the capital and the aforementioned regional locations. - Is there a growing demand for newly built flats? Judging by various studies, there is a significant growth in demand, although it must also be said that sales of ‘secondhand’ flats are dynamic as well. - What are the main factors that are taken into consideration by your customers when they make their choice? There are numerous important aspects that people pay attention to. These include the quality and ecological characteristics of the construction materials, the property’s status as a recreational zone, and infrastructure. The demands of today’s customers are quite sophisticated, and developers are trying to supply potential buyers accordingly. Of course, this affects the price, but high quality and a comfortable environment are important factors for the tenants. It must also be noted that there is a substantial demand for fitted-out flats, although many still prefer to fit out their property in accordance with their own design. - Can your services be used by foreign nationals or Georgians living abroad? We provide loans both to Georgians living abroad and to foreign nationals, although in such cases, the co-financing percentages are comparatively higher, and the repayment period shorter – a maximum of 4 years. This is of particular interest to
80 construction projects across Georgia, and 2750 flats for sale – TBC Bank’s Mortgage Center, which appeared on the Georgian market in September last year, has managed to establish itself as one of the leading organisations in the real estate lending sector in the space of less than a year. Head of the Retail Loans Department at TBC Bank, Nino Kacheishvili, spoke to Property Georgia about the sector’s development prospects and the Mortgage Center’s services.
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Georgian emigrants: through the Mortgage Center, they can obtain competent and reliable information about the existing projects, and obtain a mortgage loan from a trustworthy bank simply by making a phone call, and without having to come to Georgia. As a result, they can save time, which is important for every one of us. - What is your target segment? Our target segment includes every person who is interested in purchasing real estate. They can make their choice in accordance with their income level. For example, if 1 sq.m of floor space in the suburbs of Tbilisi costs $400, and we are looking for an economyclass property, then we can buy a 30 m2 flat for $12 000. In this case, co-financing would amount to approximately $3000, while the monthly loan repayment rate would be $110. The most popular area of Tbilisi in terms of sales is Saburtalo, where m2 of living space costs $800 to $1000 on average, followed by Dighomi, Varketili and Gldani. The central areas are most expensive, with the average price in Vake amounting to $1500 to $2000 per m2.
- What will your main principles be for continuing to work within a competitive environment? We do not have any direct competitors today, although there is a multitude of brokerage firms and companies working on real estate sales and rentals. The aforementioned service is also available on various websites, where newly built flats form a separate category. This is logical since, as we have already mentioned, the demand is growing in this regard. We are open for everyone. The Mortgage Center cannot be the only outlet for purchasing real estate, but we aim to be among the top 5 players on the consumer market. - Your expectations from www.propertygeorgia.ge? Property Georgia is an interesting portal for those who have investment plans and wish to choose the right project for themselves. There is a lack of analysis on today’s market, and more information is needed about the city’s development prospects. Practical advice will be useful for the consumer. propertygeorgia.ge
Award from Euromoney Magazine TBC Bank was named the “Best Bank in Georgia 2016” by Euromoney Magazine for the fifth time in the past six years, having also won the award in 2011, 2012, 2014, and 2015. The editorial team commented that TBC Bank earned this year’s country award in recognition of its superior profitability and balanced growth strategy. TBC Bank’s robust loan growth, improved efficiency, and good progress on diversification of its loan portfolio were highlighted as important achievements against the backdrop of a challenging economic environment in the wider region. “We are very proud to receive the “Best Bank in Georgia” award for the fifth time since 2011.
This award recognises the hard work and dedication of the whole team, which is reflected in our strong financial performance year after year and our leading market position” remarked Vakhtang Butskhrikidze, TBC Bank’s Chief Executive Officer. About the Awards for Excellence Now in its 25th year, the Awards for Excellence continues to be one of the most respected honours in the financial services industry. The Awards cover more than 20 global product categories, best-in-class awards in all regions and the best banks in close to 100 countries around the world. The full list of winners will be published in Euromoney’s July 2016 issue and online at the publication’s website.
DAIRY MARKET
July 18, 2016 #154
MARIAM KOPALIANI
Why do Leading Companies Ignore Genuine Milk?! In the last period the dairy products market competition has intensified. There is no official information on how the market ratio are distributed between companies. Sante and MilkoFood are named as unofficial leaders of the market that control about 50-60% market ratio. The remaining part is shared by small companies. It should be noted over the past years many small milk processing companies appeared in Georgia. The Caucasus Business Week (CBW) has tried to identify reasons for this progress – whether this progress is the merit of business environment in the country, the field promotion by various forms or there is a niche on the domestic market that still remains unemployed. We contacted representatives of small dairy products companies and they noted that the state policy has incentivized appearance of new dairy companies on the market.
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The existing farms are not sufficient. Sante and MilkoFood are the market leader companies. MilkoFood works on milk powder by 100%, while genuine milk occupies only 10-15% in Sante production
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GREEN RANCH COMPANY After Telavi Wine Cellar winemaking company, Zurab Ramazashvili, head of Green Ranch milk processing company, has taken efforts in the dairy business too. The company supplies processed milk to Soplis Nobati company. The company owns a farm in Akhmeta and has 61 cattle (Swiss and Dutch cows) and produces about 1000 liters of milk a day. In the last period the Authorities have been demonstrating huge attention to the agriculture sector. The preferential agro credit program has been introduced. Produce in Georgia program also runs and these efforts provide much stimulus for small business companies, Ramazashvili said. He also talked about the current problems in the sector and noted that the field lacks for professional staff. Therefore, the company cannot expand output without training employees. “Today our country lacks for professionals in this field. There are people who have lived the whole life in village and they are expected to know how to care for cattle, but it turns out they do not know many details and this knowledge is necessary. Today I employ several persons that know the field and they will train new employees too”, Ramazashvili said. The field development is taken to a science level in foreign countries, while in Georgia this field remains in the germ form. Therefore, in Georgia similar enterprises require huge investments, Ramazashvili said. “You may own excellent cattle and equipment, but management skills are required. At this stage, exploration and improvement process is underway in the company to make the production more effective”, Ramazashvili noted. LLC Green Ranch is located in the Akhmeta District, the Kakheti Region. In 2015 the company took part in the agro credits program and obtained 500 000 GEL financial support component. COMPANY GLEKHURI The company has been operating on the market for several years, produces several varieties of dairy products, including cheese and butter, Anzor Khinikadze, head of Glekhuri dairy products company based in Tsalka, the Kvemo Kartli Region, noted. We produce 4 sorts of cheese (Sulguni, Imeruli, Datsnuli (plaited), Plaited Smoked, Smoked Sulguni), natural butter and custard and sour-cream. All these products are made of genuine milk and our products are sold in Tbilisi. Imeruli Cheese occupies a major portion in production and distribution. In the last period the number of milk processing companies multiplied thanks to joint efforts of the government and the nongov-
ernmental sector. Almost all new enterprises have been recently established thanks to grants or preferential loans. For example, in Tsalka there are 4 milk processing companies, including 3 ones were founded by grants and 1 was established as part of the preferential agro credit program», Khinikadze said. This is the big stimulus. There was no similar support and promotion in previous years, he said. Previously, the demand for natural products was huge than now, because milk powder cheapens the production. “In the last period milk powder is widely used and the demand for natural products has slightly changed. Milk substitutes have replaced natural products to such a degree that I would not dare enter the market today if I were a beginner and new businessman, because it is difficult to find a niche on the market. Previously, the demand for genuine milk was huge on the market, when I started business, Now this demand has declined and we buy milk from farmers”, Khinikadze said. Despite the mentioned difficulties, dairy production in Georgia remains a perspective field anyway, Khinikadze noted. The company makes advancements every year. In 2016 the company plans to satisfy all international standards. In the future Glekhuri will launch manufacturing of export products too. NEBIERA DAIRY PRODUCTS ENTERPRISE In the last period the quantity of new milk processing plants has genuinely increased and this is a very good tendency, Kakha Tskipurishvili, head of recently founded company of Nebiera, said. Both the Authorities and the nongovernmental sector have made huge contribution to these positive changes and preferential loans also make much stimulus, as well as Produce in Georgia program and others. Today no small enterprise is founded by their own financial resources, he said. There are many small companies on the market, but the market lacks for milk anyway, Tskipurishvili noted. «The existing farms are not sufficient. Sante and MilkoFood are the market leader companies. MilkoFood works on milk powder by 100%, while genuine milk occupies only 10-15% in Sante production», Tskipurishvili said. Major companies show less interest in genuine milk because of two reasons. First, genuine milk grows the prime cost and secondly, this is hazardous. Genuine milk may comprise some bacteria and consumers may be infected, while milk powder rules out similar threats, he said. Almost all small milk processing companies make accent on cheese production, Tskipurishvili said. Nebiera company was built by financial support of one of the UN programs in 2009 and was handed over to the Gori State University in a year. In two years the company suspended operation. In January 2016 the Gori State University transmitted the enterprise to me for a 5 year leasing period, Tskipurishvili said. To resume operation, the company invested 50 000 GEL in the production. At this stage we are establishing HACCP - Hazard Analysis and Critical Control Point and threats analysis system and the process will end in about 50 days, he said. Currently, the company produces 3 varieties of cheese, including pasteurized Imeruli, pasteurized Georgian and Plaited Sulguni cheese. As to prices, the price of 1 kg of plaited cheese is 12 GEL, Imeruli – 9 GEL and Georgian – 10 GEL.
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DEVELOPMENT 8 Archi Group, development company that prioritises quality and ecology
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rchi Group was founded in 2006. The company has been implementing many large-scale construction projects in various fields in Tbilisi and regions. The company makes focus on housing and development projects; Archi Group has finished 6 residential buildings, 1 commercial project and 8 ongoing projects in Tbilisi. In the nearest 3 years, about 10 new projects will be implemented. In 2010 Archi Group expanded the range of activities and launched hotel construction projects in Georgia. Currently, two European-level hotels function in Shovi and Kvariati (Sunset Shovi and Sunset Kvariati). Moreover, the company plans to unveil 3 new top-class hotels in Tbilisi and one international brand hotel with European standards in Bakuriani. Archi Group has also launched construction of Ytong plant in Tbilisi jointly with German giant company Xella to manufacture energy effective and fire-resistant structural blocks. The project’s investment value made up 15 million USD and the company will produce first products in the first half of 2018. All construction projects of Archi Group are fully financed by foreign investments and this factor creates precondition for timely finishing all projects. With focus on European standards, Archi Group prioritizes to care for environment, city appearance and green zones, along with providing high-quality residences for Georgian citizens. Archi Tower, a premium-class 23-floor multifunctional residential complex, proves this assertion. It is located on Chavchavadze Avenue N37, from where picturesque panoramic views open to the Vake Park and the Turtle Lake. The project’s total space is 35 000 square meters and total value makes up 35 million USD. The founder of Swiss Capital, who does business in Georgia, is one of those who has given preference to Archi Group, especially Archi Tower. Eyal Elboim has been implementing investments in various directions in Georgia, including in the real estate direction. His comment on the question: Why Archi Tower?! When I decided to make investments in
July 18, 2016 #154
Georgia, I comprehensively explored companies operating in the country, including on the real estate market. In that period many development companies had to suspend construction processes because of financial problems. As a result, thousands of customers have suffered from financial losses. In that period Archi Group was one of those companies that withstood all challenges and intensified construction works instead of deceleration. Consequently this was a main factor because of which I have decided to show interest in projects of Archi Group. I have actively supervised the company activities. I have explored construction materials that they use, for example, German structural block Ytong that is ecologically clean and considerably reduces energy costs for consumers. Moreover, the block is persistent to fire for about 4 hours. Therefore, structures built by Ytong blocks are much safer. The time factor is very important for me, as a businessman. And Archi Tower provides all comforts for business people: 24 hour doorkeeper’s services, lobby, swimming pool, fitness hall. Moreover, this complex also comprises 24-hour supermarket, a pharmacy, various branded stores, bank and other facilities. I can enjoy all these additional comforts directly thanks to elevator. And this will enable me to save time, avoid traffic jams in the city to get desirable thing, products or services. When buying an apartment, many problems are related to repair works such as rooms design, purchase of materials, search of masters to ensure ideal fulfillment of all details. This issue requires much time and energy, but apartment owners are able to resolve all issues by visiting the office only once in Archi Tower. All repair materials are German and Italian. All the above-mentioned proves righteousness of my decision.
Rompetrol Georgia Organizes International Conference on Competition Law Issues
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eading Foreign specialists are conducting international conference on the topic: «Competition Law – New Challenge for Georgia». The international conference was organized and financial support was carried out by Rompetrol Georgia. The conference proceeds under the aegis of Tbilisi State University. The conference is being held at hotel Rixos in Borjomi. This is the first conference of simi-
lar scales and level dedicated to competition law issues. The world’s leading specialists and international law company partners are making speeches at the conference. «In Georgia the competition agency launched operation several years ago. Rompetrol is trying to incentivize the field development in Georgia on behalf of our country. The objective of the agency is to promote market liberalization, free trade and competi-
tion. Rompetrol is trying to develop the competition law in Georgia and these efforts will make positive influence on the competitive environment development», Rompetrol representatives noted. As part of the international conference, trainings called as - Capital Provision Norms, Merger and Competition Principles» are being held. Speech-makers of the three-day conference and trainings are as follows: James Hanks – Venable LLP partner, expert, lecturer. The speech topic is: Major Statutes and Cases in the US Antitrust Law. Bertold Bar-Bouyssiere – DLA Piper partner. The speech topic is: The Application of Competition Law in Life Science Industries (Interface competition/patents and etc.) Felix Scala – head of the competition law department in German Office of Deloitte. The speech topic is: Antitrust Compliance Programs from an European Perspective. David Iakobidze – economist and professor at Georgian Technical University. The speech topic is: Structured Transformation of Competitive Environment in Small Economies. Varsha Kale, advisor of the London anti-
trust and competition group for Meyer Brown, and Aleksandra Aninoiu, lawyer for Antitrust and Competition London Office of Meyer Brown. The speech topic is: Cartels under the EU law: Legal developments and Practical Challenges. Rob Davis – advisor for Venable LLP. The speech topic is: US Developments related to Proof of Agreements and and Hub-and-Spoke Conspiracies. Dr. Jan Joachim Dreyer – Partner of DLA Piper. The speech topic is: Recent Developments in German Competition Law – enforcement highlights. About 70 persons interested in the mentioned issues are taking part in the conference, including magistrates, lawyers, competition agency representatives, business ombudsman and officials of the Prime Minister’s economic board. The conference and trainings started on Monday and will end on July 13. KMG International (former Rompetrol Group NV) was bought by KMG in 2007. The company owns two oil refineries in Romania and a network of petrol filling stations in EU countries.
STARTUP
July 18, 2016 #154
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Made In Georgia! – Georgian Handbags from Gepherrini Gepherrini MC is a new Georgian brand that manufactures top-quality handbags. The company was founded on August 7, 2014 and it has been exporting Georgia-made goods to foreign markets. To approve the product quality, the company provides 6-12 month warranty service. In his interview with the Marketer, Ilia Geferidze, founder of Gepherrini, talks about how the new Georgian brand was created and what products are manufactured by the company. MARKETER.GE
t “ The US marke
m is different fro et and Georgian mark rices the existing p ly are respective able adapted. Desir things may be ordered on is too individual bas
”
- How did the company foundation idea arise and how was the brand developed? - The idea was to create such products that were not manufactured in Georgia. Finally, we choose handbags. In the course of time, we added women, men and children handbags, launched production of leather bracelets and men wallets. From the very beginning, we made focus on issuing top-quality products at affordable prices. Initially, this was difficult because of lack of due workforce. In the course of time we started opening stores stage by stage. Currently, we manage 3 stores. In September 2015 we launched exports to Russia and opened 3 stores there. Starting April 2016 our handbags are sold in the USA, New York: Manhattan, Broadway and Madison boutiques. - What difficulties arose in the initial phase of business? - Difficulties arose in the production process, because there were not qualified workforce in this field. We employed workers from shoemaking enterprises, because they could work on leather. We used to go to various enterprises and supervise over the working process. It took 8 months to manufacture one valuable handbag. However, finally we improved our production and launched top-quality handbag production by participation of Georgian workforce. - What makes you different from other brands? -We produce nonstandard models. Our clients find our products different and special. Peculiarity of our products makes our goods different from other brands. Our prices are also affordable and we ensure top-quality production. The differentiating sign of our models is that we produce each model in small
volumes. It should be noted that we use geometric forms for handbag models. We also provide warranty services: 6 month warranty period for leather-containing products and 1-year warranty for leather products. -What segment do you make focus on and how affordable are your products? -We make accent on medium and upper average segments. We do not produce cheap products, a certain category of our products meet the medium segment standards, we provide absolutely affordable prices. We manufacture high-class products and sell them in the USA for quite expensive prices. Products exported to the USA are different in the quality of raw materials too. Transportation costs make the products prime cost higher. Therefore, selling prices range from 198 USD to 999 USD. The US market is different from Georgian market and the existing prices are respectively adapted. Desirable things may be ordered on individual basis too. - What are your future plans? - Our only objective is to expand exports and we want to cover the CIS territory. Recently we have finished negotiations and in two weeks we will enter Ukraine. We plan active promo campaigns and are working with several consulting companies. We have shot AD commercial for the US market their broadcast will start in a month. Miss Georgia 2015 Nuka Karalashvili and Elit Model Look winner Tatia Akhalaia participate in the commercials. We are taking active steps on the Georgian market too and we plan various advertising activities, however, at this stage, we are more interested in exports, because it is impossible to make valuable forecasts on the Georgian market.
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BUSINESS
July 18, 2016 #154
Georgian Architect’s Designed Hotel Project Got International Competition Award Georgian Architect’s designed hotel project at Shekvetili got international competition award. An architect George Khmaladze received an influential architectural competition’s “Architizer” prize, as a result of the project created for Shekvetili Region. The international competition holds annually. George Khmaladze projected the building of McDonald’s in Batumi, which took 1st place in the competition in 2014. The hotel at Shekvetili was awarded in such category, which is yet unbuilt project. George Khmaladze said to “Business contact” that only one project will receive the title of “The Project of the Year 2016” in this competition, thus, the award “Special Mention” was given to his project. “The victory in the project is pretty important in order to raise awareness. McDonald’s project was well known inside the country, but after the competition, it has gone beyond the borders.
AVIATION INVESTMENT
EBRD is Supporting Georgia’s Leading Telecoms Company
T
he European Bank for Reconstruction and Development (EBRD) is supporting Georgia’s leading telecoms company MagtiCom with a $100 million loan to improve and expand its broadband penetration in the regions of Georgia. The EBRD financing will enable MagtiCom to acquire the fixed-line broadband internet network platform from the Caucasus Online in order to further expand into regions outside of Tbilisi. MagtiCom, that is renowned for its drive for technological development, will be able to offer better and higher-speed internet services to its customers across the countries. The expansion of higher-quality
internet connectivity will also increase competition in the telecommunications market of Georgia by driving other operators to follow the quality of network and services. “This project is yet another example of EBRD’s efforts to support economic inclusion in the country. Georgia is a growing economy where the rural areas need a greater connectivity,” saidBrunoBalvanera, EBRD Director for Caucasus, Moldova & Belarus. “Investing in the knowledge economy is part of the EBRD’s efforts to foster innovation in the country. Thisinvestment will support the development of higher quality of mobile network, internet as well as TV platform inthe more remote regions of Georgia. This in turn will help
NEWS
STARTUP
Social Enterprise Zeskho to Launch Svanetian Salt Exports Social enterprise Zeskho has been manufacturing Svanetian salt for 4 years. The company has won the European Foundation project and the company launched production in Tbilisi. At this stage the company distributes the product in 4 supermarkets. After HACCP method introduction, the company will launch exports to Europe.
The Former Designer of Tiffany Opened Jewellery Store in Georgia Israeli jewelery brand “Simeli” has appeared in Georgia. Brand owner Simon Elishakov was the designer of the worldfamous jewelry brand “Tiffany” and later he established his own company. According to him special line for Georgia was launched in order to make products available to everyone. Elishakov noted that Simeli creates exclusive models for women, men and children.
to boost the local economies and the country’s telecom sector as a whole. We are glad to work with such a strong partner as MagtiCom who has extensive expertise in the telecoms segment and high corporate governance standards. MagtiCom constantly strives to innovate and to offer the latest technological solutions to its customers. Since launching in 1997, MagtiCom has been rigorously innovative by introducing all stages of the mobile evolution by offering 2G, 3G, 4G and 4.5G networks; along with the fixed telephony and satellite television. The financial support of the EBRD will assist MagtiCom to accomplish its goals- that is to provide to its customers easier
KOK2 to Decorate T-shirts By using the Works of Georgian Artists KOK2 is a new company, that produces T-shirts decorated with the works of Georgian artists. The clothes are distinctive as the pictures are entirely placed on the surface of T-shirts. The company’s main objective is to create new and exciting products through this way to introduce the works of Georgian artists to the public. KOK2 began its production a month ago and had already got an approval from customers. In general, T-shirts are designed for those who likes variety ad bright colors. Mikibo Kokhreidze, who is the designer and the founder of KOK2, talked with Marketer about how the idea came up and what are their plans for the future. “We have decided to unite the works of Georgian artists in one space by placing them on the T-shirts.” They wanted to bring in innovation in this genre and developed a very engaging brand idea. Also they supported Georgian artists and make their works popular for society. “At this stage, we cooperate with 5 painters, choosing the best out of their creations, then a number of these paintings are printed on the T-shirts.” In the future they intend to collaborate with more Georgian artists. All Tshirts have the same price. Thus, it makes up 80 GEL. Probably, it can be expensive for Georgian market, but the cost of the shirt is high itself due to they print them in Turkey and after that sewing starts. “The customers like our works very much, although some of them believes that it has very poor quality and uncomfortable. In fact, everything is vice versa. The textile is soft and comfortable and the drawing on the T-shirts is soft as well.” They plan to export their products to Germany, Great Britain and France. In addition, they would like to cooperate with more Georgian artists. “We plan to to add as well bags, pillows, ties, sneakers, socks and underwears to our current production. At the end of July, our website will be launched, which is now under construction.”
solutions,high quality network access, and full communications ecosystem; especially in the rural parts of the country, said the representative from MagtiCom The EBRD is a leading institutional investor in Georgia. Since the start of its operations in the country, the Bank has invested over €2.73 billion in 195 projects in the financial, corporate, infrastructure and energy sectors, with 91 per cent of these investments in the private sector. The EBRD’s strategic plan for the countries where it invests, including Georgia, for the period 2016-18 has three priorities: strengthening economic resilience, addressing global challenges and supporting regional integration.
First flight on route TbilisiDammam, Saudi Arabia Tbilisi international airport welcomed the first flight from Dammam to Tbilisi. Direct flights on the route Dammam-Tbilisi-Dammam will be performed during the summer season from July 13 till September 18, three times a week, on Tuesdays and Fridays and Saturdays by B- 735/737 and CRJ 100 type aircrafts. The charter flights operated by Georgian Airways will be performed in cooperation with Yekta Safar Georgia, Seven Sky and Dream Travel. The tours offered for them is considered in Tbilisi, Batumi and Borjomi. The tour for tbilisi includes city tour and tour to mstkheta and considering their sensitively to 5 start hotels , they will be based in Hotel Preference .Batumi also as tourists hub will host the guest with beautiful sea side , the guests will be all based in Intourist, collessum,president plaza. “the trip to Borjomi is not only enjoying the astonishing and amazing nature but also with collaboration of Rixos hotel we offer our guest to have the special treatments “ he added. “we faced several challenges with this tours, considering 5 star hotels demand from our clients and lack of hotels and also the halal meat, the Islamic type of meat, in Restaurant “ . The passengers are not only considered as leisure tourist but also they are interested in investment in georgian market and real estate.one of the activity of mentioned companies is to introduce and promote georgia as tourist-investment hub. “We believe Georgia is perfect hub for tourists, also we are ready to cooperate with high standard resorts and tourist destination in different region in Georgia” Mr.aliakbar said. The tours are being handled with highest standards specifically for the demand of Arabs. Halal meat, arab -georgian tour leaders and other facilities to let the guest have their best expressed discovering Georgia. According to the company , the flights also will be from 3 other cities in Saudi Arabia including Riaze and Jadeh.
HEALTHCARE
July 18, 2016 #154
Singapore Healthcare Synergy of Public and Private Responsibilities SALOME SHIKHASHVILI Healthcare Platform’s communications specialist Since 2013 the Government of Georgia has been implementing the universal health program and its financial component grows every year. The opposition wing representatives frequently criticize the program. They urge the Government to revise the program’s intent and determine the list of services more precisely. The opponents mainly criticize the ruling team for unequal conditions for persons with chronic diseases, because they need the most continuous medicamental treatment, while the universal health program does not support medications component in most cases.
It is impossible to appraise efficiency of the universal health program, because this process requires certain time. Despite this, the second stage of the reforms has been planned and implemented in the health ministry. The program calls for modifying the universal health program and growing its efficiency. The government has invited a group of international experts and the company that has developed the next stage of strategy and action plan jointly with the Health Ministry. At this stage, the issue is in the phase of implementation. The documents have not been pub-
lished yet. The model that Global Alliance consulting company has offered to the Health Ministry has not been unveiled yet. It is impossible to separately discuss which directions the universal health program will cover and what will be the fate of this program. We can only make presumptions based on reforms that have been implemented in the last period. It is interesting what mechanisms Georgia’s neighboring countries have employed to improve the Healthcare system and what type of insurance systems the world’s successful countries apply. Let’s discuss
the experience of Singapore. Even in 2000 the World Health Organization granted the 6th position to Singapore among 191 countries in terms of the Health System indicators, while in 2003 the Political and Economic Risk Consultancy — (PERC) included the country in the world’s top three systems. In 1984 Singapore introduced MediSave, medical deposit account, as a an alternative form of insurance. This type of accounts implies monthly obligatory deposits on individual target accounts charged from certain revenues of population. These deposits are to cover medical expenditures. After death of a beneficiary a descendant succeeds to this account. MediSave is one of the components of obligatory pension scheme, where the deposit constitutes 33% of the wage (13% of the employer’s ratio and 20% of the employee’s ratio). 6.5-9% of this deposit is transferred to the employee’s MediSave account. The deposit for persons under 35 years old constitutes 6.5%, in the 35-45 age category the deposit is 7.5% and in 45-65 age category the deposit is 8.5%. The deposit is 9% for persons over 60 years old. A special organization determines the maximum amount on the account (today it constitutes 37 000 USD). Self-employed person whose annual revenue is 6 000 USD is obliged to place deposits on the MediSave account. MediSave enables a beneficiary (consequently family members too) to receive the base medical services (hospital services and certain categories of outpatient medical services). Owner of a deposit account is able to choose supplier of medical services. Besides medical deposits accounts system, the country applies insurance schemes too. The government subsidizes certain category of population. State hospitals and public health are financed by state subsidies. This type of financing makes up one third of total healthcare expenditures.
11 Besides medical deposit accounts, the following schemes are also applied in the country: MediFund, MediShield and ElderShield. MediShield is the national insurance scheme and includes the component of expensive and chronicle diseases that are not covered by MediSave. The scheme calls for co-financing, co-insurance. In the last years the Authorities enabled private insurance companies to create schemes like MediShield. As a result, Singapore citizens have option to choose between MediShield and private insurance companies. MediFund represents a charity foundation established by the Authorities that finances medical services of the poor citizens that are not subsidized or of the persons who participate in MediSave or MediShield schemes, but face financial difficulties to take healthcare costs. ElderShield (for aged people) represents a private insurance scheme as a supplement to the mentioned three schemes. Its objective is to finance medical expenditures of patients with heavy damages. A major part of employees (as well as their family members) are involved in private medical insurance scheme — Integrated Shield Plans. This scheme finances medical services expenditures that are not covered by the above-mentioned schemes. It is important that to join the private medical insurance scheme (Integrated Shield Plans), it is necessary to get involved in the MediShield scheme. The medical deposit accounts system requires certain state inferences so as the Supplier reduce the volume of stimulated demand, because the price competition component is low in Singapore Health System, while the competition in the service quality grows healthcare costs and service prices. The Singapore’s health system evidently proves that efficient healthcare system cannot be achieved without combination of state and individual responsibilities.
Office Medicine Kit Price Grows by 3 GEL The Healthcare Platform nongovernmental organization continues publishing the list and prices of various medicine kits as part of the Pharma Monitor project. At this stage, the organization has explored the price of medications of the office medicine kit and compared the June prices to the May indicators. According to the May report, the office medicine kit price totaled 89 GEL, while the figure has risen to 92 GEL. The office medicine kit price has increased slightly as a result of growth in prices of several medications. The price of Ambroxil was 0.85 GEL in May and 0.95 GEL in June; The price of Ketorolak also increased to 2.22 GEL. Detailed information on the list and prices of medications is given in the chart. The Healthcare Platform NGO continues examining changes in prices of medications of the Panaskerteli Pharmacy and updating information in permanent regime for interested bodies and the whole society.
In June Family Medicine Kit Price Declined by 2 GEL The Healthcare Platform has published a new report on the Panaskerteli Pharmacy group as part of the Pharma Monitor project. The report on the list and prices of family medicine kit shows that in May the family medicine kit value was 106 GEL, and the figure declined to 104 GEL in June. Total price of the family medicine kit decreased after several medications cheapened. To be precise, the price of pressure relief mean Kaptopropil declined to 3.81 GEL from 4.38 GEL; the price of analgesics and febricide Ibuprofen declined to 2.65 GEL from 2.80 GEL. The price of Otipax decreased to 6.95 GEL from 7.20 GEL. The price of Labucid decreased to 0.95 GEL from 10.20 GEL. The price of iodine increased to 1.04 GEL from 0.51 GEL. As a result, the price of medications have decreased by 2%. More specific details about the list and prices of medications of the family medicine kit are indicated in the chart. We remind you that the Healthcare Platform nongovernmental organization has been exploring the list and prices of medications of necessary, required and interesting medicine kits for various segments. The organization collects information in 4 leading pharmacy networks and introduces reports to the society.
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PUBLICITY
July 18, 2016 #154
July 18, 2016 #154
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WORLD NEWS Quotes
“ “A successful realization of the project will allow Ukrainian manufacturers to actively develop on new markets”
Globalization and free trade do spur economic growth, and they lead to lower prices on many goods
”
Robert Reich
This is first of three major offerings approved by President Vladimir Putin for this year as the government seeks cash to bridge the widest budget deficit since 2010.
Turkey to Russia Said to Raise Antonov airplanes to be $816 Million From manufactured in Azerbaijan build logistics center for Diamond Miner Sale – Ukraine’s President BTK railway project
T
he Presidents of Ukraine and Azerbaijan – Petro Poroshenko and Ilham Aliyev - discussed strengthening of ties in economic, political, energy, transport, military and technical sectors, as well as intensification of cooperation within international organizations. Under the previously inked contract, Ukraine’s state-owned aircraft manufacturer Antonov will sell its 10 military transport planes AN-178 to Azerbaijan. Petro Poroshenko said that sending Ukrainian AN-178 cargo airplanes to Baku is one of the most promising projects. In the nearest future such aircrafts will be jointly produced in Azerbaijan. “A successful realization of the project will allow Ukrainian manufacturers to actively develop on new markets”, Ukraine’s President declared.
Ilham Aliyev, commenting on the Protocol of the 5th Presidential Council between Ukraine and Azerbaijan, said the following: “The visit of Petro Poroshenko to Azerbaijan is highly important at the current level of our bilateral relations. I am sure we will have great results in the future that will bring our nations together”. The Ukrainian and Azerbaijani parties also expressed interest in resuming the Odesa-Brody crude oil pipe-line, which connects the Ukrainian cities of Odesa at the Black Sea and Brody near the Ukrainian-Polish border. The Republic of Azerbaijan exports big amounts of its oil to the European market, that is why the project is essential for both countries. “We discussed in detail the issue of the Odesa-Brody project realization and ordered to resume it”, Aliyev stated.
Japan’s JFE Steel becomes TAP subcontractor
J
apan’s JFE Steel Corporation concluded a contract to provide hot coils, plates and UOE pipes to the unincorporated consortium of Greek pipe manufacturer Corinth Pipeworks Pipe Industry SA (CPW) and MarubeniItochu Steel Inc. (MISI), which won a contract to supply steel materials to the Trans-Adriatic Pipeline (TAP) project in Europe, JFE Steel said on its website. TAP project envisages transportation of gas from Azerbaijan’s Shah Deniz gas and condensate field to the EU countries. The 870-kilometer pipeline will be connected to the Trans Anatolian Pipeline (TANAP) on the TurkishGreek border, run through Greece, Albania and the Adriatic Sea, before coming ashore in Italy’s south. TAP shareholders are BP (20 percent),
SOCAR (20 percent), Snam SpA (20 percent), Fluxys (19 percent), Enagás (16 percent) and Axpo (5 percent). The message also said the JFE Steel Corporation will serve as one of the TAP project’s major subcontractors. “JFE Steel will manufacture the steel at its Fukuyama district and Keihin district facilities in Japan,” said the message. “The hot coils and plates will be shipped by the end of 2016 via MISI to CPW, which will process them into pipes.” JFE Steel Corporation manufactures and sells steel products. JFE Steel was formerly known as Kawasaki Steel Corporation and changed its name to JFE Steel Corporation in April 2003. The company was founded in 1950 and is based in Tokyo, Japan.
Turkey plans to build a logistics center in its Kars province within the implementation of the BakuTbilisi-Kars (BTK) railway project, said Turkey’s Minister of Transport, Maritime and Communication Ahmet Arslan. Arslan made the remarks before his meeting with the head of Azerbaijan Railways CJSC Javid Gurbanov, Haberturk newspaper reported July 13. The minister said the construction of the BTK railway will be completed until the end of 2016. “With the implementation of the Marmaray project for development of Istanbul’s railway network, the Great Silk Road’s railway segment will be continuous, allowing directly transporting raw materials and finished goods from Central Asia through Azerbaijan and Turkey to Europe,” explained Arslan.
Young entrepreneurs from different countries gather in Yerevan for allArmenian forum Armenian young entrepreneurs from different countries gathered in Armenia on Friday for a seven-day business forum. Vache Gabrielyan, Armenian vice minister and minister of international economic integration and reforms, told journalists before opening the event that the forum serves as platform for young business people for establishing new ties. The aim of the forum is to unite young business people from Armenia, Artsakh (Nagorno Karabakh) and Armenian communities worldwide and give them an opportunity for effective cooperation. As many as 30 young entrepreneurs from the United States, Russia, the United Kingdom, France, Ukraine, Lithuania, Turkey, Israel, Iran and the United Arab Emirates came here for the forum. Forty people from Armenia and 20 from Artsakh are taking part in the meeting as well.
R
ussia raised 52.2 billion rubles ($816 million) from the sale of Alrosa PJSC, the world’s largest diamond miner, according to a person with knowledge of the deal, the country’s biggest privatization in three years marred by economic uncertainty. Shares were priced at 65 rubles a piece, the person said, a 3.8 percent discount to the stock’s Friday closing price. Alrosa’s book closed on Friday at about 4:30 p.m. Moscow time, with the formal pricing and allocation announcement planned for Monday morning, two people familiar with the process said. Officials had been looking to sell the Alrosa stake at 71 rubles a share, Kommersant reported on Monday. This is first of three major offerings approved by President Vladimir Putin for this
year as the government seeks cash to bridge the widest budget deficit since 2010. Russia’s economy has had to absorb some blows, from the collapse of oil prices to punitive sanctions over the annexation of Crimea. Alrosa’s shares closed down 0.1 percent at 67.55 rubles in Moscow, valuing the company at 498 billion rubles ($7.8 billion). Russia’s benchmark Micex Index added 0.6 percent. Alrosa’s shares are up 21 percent this year, which compares with a 7.6 percent gain for the Micex. At the same time, its estimated price-to-earnings ratio for the next 12 months is the lowest since December at 5.4, according to data compiled by Bloomberg. In 2013, a 16 percent stake of the gems miner sold by the government and the company itself raised $1.3 billion.
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PUBLICITY
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July 18, 2016 #154
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,
LIMELIGHT TRAVEL INFO CENTER 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 18, 2016 #154