Caucasus Business Week #161

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September 19, 2016 #161

September 19, 2016, Issue 161 - www.cbw.ge

Econo-mix TBC Bank Takes Lead in terms of Deposits and Loans Pg. 4

Investor An Investment in Education by One of Georgia’s Largest Investors

Education Georgia Misses List of World’s Best Universities Pg. 5

Pg. 9

Investors Allocate $705 million in Georgia In the first half of 2016 investors put 834 million USD net foreign direct investments (FDI) in Georgia. A major part of the sum was directed to the transport and communications sector. Azerbaijan is reported to be the biggest donor. Despite elections, specialists expect the country to have attracted 1.5 billion USD investments by the end of 2016.

Investment inflows in the first half exceeded the previous year’s analogical indicators by 11%. The second quarter’s net foreign investments (445 million USD) are down 4% compared to the second quarter of 2015. The statistics service has provided a bit strange explanation regarding the fact. The press release reads that the second quarter’s investment inflows have declined as compared to the final specified indicators, but the figure exceeds preliminary forecasts by 20%.

Pg. 7

Turning an 8000 year wine tradition into success in Georgia New opportunities are opening for Georgian winemakers and wine lovers through the EU funded programme East Invest 2.

The regional investment and trade facilitation programme, East Invest 2, is working to improve the SME sector across the countries of the Eastern Partnership.

East Invest 2, through one of its actions, has set out to revitalize the Georgian wine industry, by transferring knowledge from Bulgaria in the areas of wine marketing and standardisation.

The project is twinning the Georgian Wine Association (GWA), an independent non-state organization, with the Bulgarian Chamber of Commerce and Industry (BCCI).

Through the project, an online platform is being developed that will promote Georgian wine producers and act as a one-stop-shop for key information and guidance to the wine industry, helping to spur growth and exports to the EU market.

Pg. 6

2 GOVERNMENT

NEWSROOM Justice Ministry launches reform of commercial, tax dispute system The reform would also support the increased inflow of Foreign Direct Investments (FDIs) and genuine advancement of the Georgia’s economy.

Georgia’s trade sector employs 10% more people Today more than 153,000 people are employed in the trade sector. This year Georgia’s trade sector employs 14,000 more people compared to 2015.”

ECONOMY

Georgia receives over $105m in remittances Russia, the United States (US) and Italy top the 14 big donor countries from where Georgia receives the largest amount of remittances. Last month Russia transferred $37 million to Georgia, which was 34.9 percent of all money transfers.

External Merchandise Trade is increased by 16% According to “Sakstat”, the value of export decreased by 10 percent reaching USD 1312 million, while the import grew by 23 percent and amounted to USD 6114 million with respect to January-August of the previous year.

BANKING

TBC Becomes N1 Bank With the Number of Deposits and Loans Creation of the largest bank in Georgia by both loans and deposits, with TBC Bank’s loan market share increasing by 7.3% to 35.7% and the deposit market share increasing by 5.3% to 34.5%.

The volume of money transfers is increased in row for the second month In August, the volume of money transfers from abroad constituted 105.8 million USD (245.4 million GEL), which is 25.3 percent (21.4 million USD) more than the amount in August 2015.

BUSINESS

Winegrowers Receive 15.6 million GEL from Grapes Sales The 2016 vintage coordination center has already registered 110 winemaking companies, of which 32 ones have already joined the grape processing stage, including 6 ones were hired by the Government.

KDV Georgia plans to invest 85 mln EUR in the waste recycling plant The management hopes that they will be able to put the plant under the exploitation late in the next year.

COMPANY

First Rice Processing Plant Underway in Samegrelo The first rice processing plant will be built in the Samegrelo Region. Agro Zana company has already invested 1 million USD in the enterprise construction works.

What will Georgia look like in 2020?

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eorgia’s Government has announced an ambitious urban development plan that will rejuvenate all parts of the economy to bring equal conditions for all regions and help the country use its full potential to improve the lives of citizens.

The project is so large that it will likely reach almost everyone in Georgia.

Prime Minister Giorgi Kvirikashvili presented the Spatial Arrangement Plan that will modernise infrastructural development in Georgia and transform the country from a struggling nation into a modern, 21st Century prosperous place.

This is the modern vision of how to develop our country and manage the growth,” said Georgia’s high official.

Spatial arrangement means planning the space in a rational, sustainable and balanced way; having integrated and territorial development of transport, construction, energy, tourism, manufacturing and other sectors; and improving links between towns and villages.

Spatial development is a large part of the Government’s four-point reform agenda, designed to ensure sustainable development and inclusive growth of Georgia.

One part of the Spatial Arrangement Plan will allow Georgia to effectively manage population growth and infrastructure development and overcome the major current problem of overcrowding in the main cities.

3.72 million people are living on 70,000 m2 of territory. The popu-

lation density of Georgia’s regions is different. For example in capital Tbilisi we have 2,207 people living in a space measuring one square kilometre while in Georgia’s Khevsureti region there is only one person in every square kilometre. And another example, only 30 people stay in the whole of Tusheti region during the winter. This shows we are definitely facing an urban development challenge,” said the PM. Improving the social and economic situation in Georgia, offering equal conditions for all regions of the country and promoting sustainable development was how the Government planned to overcome the urban challenge.

Sixty percent of Georgia’s territory is the mountains regions, which offer unique opportunities however it’s only home to five percent of Georgia’s population. What we’re seeing is cities and towns being overpopulated while villages are becoming empty. But we know Georgia has all the resources to become an economically attractive country if only we correctly use it’s the opportunities open to us, and spatial arrangement will help us achieve this,” said Kvirikashvili.

By injecting fresh life and creating equal conditions in all of Georgia’s regions, people will be willing to return to their home villages. Every region of Georgia should become a four-season resort where tourists can easily access any service they need. We will achieve this if we follow the right method used throughout the world, which is effective spatial arrangement of the country.”

Foreign experts were already involved in Georgia’s Spatial Arrangement Plan and were offering help to create a general plan for overall development.

Kvirikashvili said the Government was currently working on another part of the Spatial Arrangement Plan that envisioned full modernisation of the country’s transport network. He said new transport arteries must first be created, followed by new roads that meet modern European standards.

By fixing all the roads we will build the backbone of Georgia that will connect all the regions. Then geographical location will not be a barrier for doing business or living there anymore,” said Georgia’s PM. According to the Spatial Arrangement Plan, before 2020 the Government will build and reconstruct 1,000km of roads. Additionally, 550 km of highway will be built and about 800km of roads will be rehabilitated, while an extra 300 bridges and 50 tunnels will also be built making it easier to drive in Georgia.

The estimated cost of this was $3.5 billion USD. The Spatial Arrangement Plan also included rehabilitating railway stations, ports and all other tourist infrastructure. It also envisioned that new airports will be built in Georgia.

Improving Georgia’s transport network and other infrastructure would also help the country enhance its role as an international transit hub.

Georgia’s Prime Minister said this new infrastructure would be built to last so it can be enjoyed by the next generations for over 100 years.

European Investment Bank to double its investment in Georgia

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he European Investment Bank (EIB) is promising stronger support for Georgia by doubling the amount it invests in the country in the coming years.

As of today the amount of our investments [in Georgia] is over €700 million and we plan to increase this financial support in the coming twothree years,” said EIB Vice President Laszlo Baranyay after meeting Georgia’s Prime Minister Giorgi Kvirikashvili today in capital Tbilisi.

The infrastructural projects funded by the EIB in Georgia and prospects of future cooperation were key topics of the conversation

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September 19, 2016 #161

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between the two officials.

Our activities cover different economic and infrastructural areas including support of small and medium-sized enterprises (SMEs) and cooperation with several Georgian banks,” said Baranyay.

Georgia’s education and social infrastructure sectors were discussed as the next areas where the EIB was keen to increase its investments.

Georgia is the most reliable country in the region in terms of the economy and politics,” Baranyay told Georgia’s high official.

At the meeting Kvirikashvili proudly talked about the Georgian Government’s four-point reform

agenda, designed to ensure sustainable development and inclusive growth of Georgia. The already implemented, ongoing and future reforms outlined in the four-point reform agenda covered the tax system and capital markets, as well as the education, health and pension systems.

While talking about infrastructure development – one small part of the four-point reform agenda – Kvirikashvili accented the EIB’s support in implementing infrastructural projects in Georgia.

To this, Baranyay promised the Bank would actively support Georgia as it carried out these vital reforms.

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

September 19, 2016 #161

PUBLICITY

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ECONO-MIX

Merab Janiashvili Economic Analyst Hila Peled CEO of Topishare

How to Become a Social Entrepreneur in 3 Easy Steps

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‘‘ According to the last reports, both banks are among top 5 commercial banks of the Georgian bank sector in terms of assets as of August 1, 2016. TBC Bank assets make up 6.7111 billion GEL, while Bank Republic assets marked 1.751 billion GEL.

Historical Deal in Banking Sector TBC Bank Takes Lead in terms of Deposits and Loans

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BC Group and French Societe Generale have concluded an agreement, under which TBC Bank will buy a 93.64% stake of Bank Republic shares at 315 million GEL. This will be the biggest transaction in the history of the Georgian banking sector. It should be noted that Bank Republic is reported among top 5 commercial banks in Georgia.

70% of the deal amount will be paid in cash and the 30% of the amount will be paid by recently issued shares of TBC Bank. As a result, Societe Generale group will own 5.4% stake in TBC Bank. Consequently, it will be one of the biggest stakeholders in TBC Bank. The parties have already agreed to deepen future cooperation in Georgia.

As to the remaining 6.36% stake in Bank Republic owned by the European Bank for Reconstruction and Development (EBRD), TBC Bank has already launched negotiations on buying off these shares.

At the same time, TBC Bank released a statement that it has purchased a selected part of JSC Progress Bank assets (with 108 million GEL market value) and deposits (the market value of 108 million GEL). This transaction makes up only 1.6% of TBC Bank’s total assets.

It should be noted that Progress Bank founded by Kakha Kaladze was sold several times in May 2015. An Israeli financial group has become owner of the Bank.

Kakha Kaladze founded Progress Bank in 2008, but after the 2012 elections, he sold his stake and withdrew from the bank management. In December 2013 Vebion international investment group took over a 78.29% stake in Progress Bank, while the remaining 21.71% stake went to Bidzina Ivanishvili.

French Societe Generale does not plan to withdraw from the market and it will own a 5.4% stake in TBC Bank, Mamuka Khazaradze, head of TBC Bank supervisory board, noted.

The bank’s management has worked on the issue for 18 months. As a result of long and complicated negotiations, the deal was finished successfully and TBC Bank will purchase Bank Republic shares.

This is the biggest deal in the Georgian banking sector history. This deal will advance TBC Bank to the ranks of top 250 major companies at the London Stock Exchange (LSE).

As a result of merger: • TBC Bank becomes number 1 commercial bank in Georgia in terms of loans and deposits. The ratio of TBC Bank in total loans will rise by 7.3% to 35.7%, while deposits will increase by 5.3% to 34.5%.

• TBC Bank positions will strengthen in all operational segments, especially in the retail bank services; quantity of clients will reach 2 million ones; • TBC Bank service network will be further expanded; All over Georgia the number of branches will rise to 170 ones, while the quantity of ATMs will increase to 517 ones.

Transaction will be completed by the end of 2016. TBC Bank’s exclusive financial advisor in this deal is J. P. Morgan, while Baker and Mckenzie LLP acts as an international advisor in legal issues.

“We are sure that the decision on purchase of Bank Republic fully meets the long-term strategy of TBC Bank and iit is a serious advancement for attaining our

‘‘

ocial entrepreneurship may possibly be the hottest thing people are trying to pursue right now. And it sounds like the ideal career for millennials, working while helping others. But it’s not all as rosy as it sounds.

When you want to set up a social enterprise, there are certain things you can’t do without. Founding topishare, I’ve learned a lot along the way. It was a journey. It IS a journey.

Let me tell you how I got here, and what you should do if you want to create a successful social start-up as well.

Rich, Schmich I’ve worked in business for 25 years, of which 15 years setting up and running start-ups. And I’ve made money. A lot of money. Although I’ve supported charities, donated money directly to families in need, and volunteered in the past – I even came up with the idea to set up a coding school in Sudan – my business goals were always to “just make money”. I think I never realized I could combine my passion for helping others and my entrepreneurial mind.

Turning point It was a sunny day. One of those days where the temperature is just right, where the smell of the air is just perfect, and where the sun doesn’t burn, but gently brushes your skin. While sipping some excellently brewed coffee on the terrace in one of Tel-Aviv’s most expensive cafés, I heard myself talking. And I didn’t recognize myself. I had become what I’d always despised the most, a ‘capitalist pig’. I had money but forgot about the suffering of others.

Disgusted with what I had become, I told my husband and daughter I wasn’t going to do it anymore. And that day we decided to leave it all behind.

Entrepreneurial Blood Surrounded by monkeys, snakes, coconut trees, and beautiful views in the deep jungles of Costa Rica, my daughter and I talked about the world’s problems. One night, it was pitch black dark, the jungle only lit by the stars in the sky, we vented about the world’s inequality. How unfair the world is. How the rich are getting richer and the poor are getting poorer. How our inability to talk with each other constructively is creating worldwide conflicts.

And that’s when I said: why don’t we try to do something about it? That’s the first step in starting a social enterprise.

STEP 1: Turn your Frustration into a Solution You need to be motivated by wanting to make a difference and leaving the world a better place. So, don’t start a social business just because you want to make money. You need to be passionate about the cause you want to tackle, and from there you need to think of a strategy that will lead you there. You need to be 100% in. For me equality and conflict are two major concerns I have been frustrated with for a very long time. That’s why through topishare we decided to build a place where your average joe, a business (small or big), and topishare are all equal and are given equal opportunities. We also have created a safe space for people from different areas to have real, constructive conversations about sensitive issues. A few of our partners, such as EurasiaNet, IWPR and Chai Khana, are a major part in our efforts to drive building peace.

STEP 2: Build a Fair Business model(s) But a business is a business. You do want to make money.

That’s why you have to be very smart about how you design your business models (and you will need them to drive the change you want). Design a business model (or several) that will benefit both your consumer/user and you at the same time. As a result, you will both gain. And that should be your aim. We thought long and hard with topishare how we could create an equal and fair system. And we came up with several. We are not going to go with one business model, we’re going with multiple. But with all, one thing is crucial: it should not benefit one more than the other. On topishare, everyone is equal and everyone can earn money.

We are not specifically aiming our business models to developing and emerging markets. People everywhere can benefit, but it will be most advantageous for people located in places with less opportunities to earn money. And as we grow, more and more people will be able to earn money through and with topishare.

STEP 3: Surround yourself with Passionate, Smart People You’ve got the problem, the solution, and have designed a fair business model. Because of who you are, your character traits, you are uniquely positioned to deliver a solution to a real problem. But that’s not it. You need to realize that you, solely, do not have all the answers. You need to realize that you can learn something from every person with whom you interact.

Even more.

You need to surround yourself with passionate, smart people. Meaning, your team needs to be as passionate about solving the same problem as you are, and they need to be very creative and driven. Without a good team, a team that does everything to reach the same goal, you won’t succeed. No matter how noble your cause, no matter how lucrative your solution. At topishare our team is our family.

And I surround myself with people who are smarter than me in areas I am not strong in. Because that is the only way you can grow and get the results you want.

That’s all?

With topishare we’ve created a business that has social impact, alleviating poverty and building peace. Step by step. We didn’t want to receive investments from outsiders until we were sure we’d created something that would have actual impact, that it would be the next thing. And now we know it will be. So, when you decide on setting up and running a social enterprise: make sure you know your cause inside out, make sure it’s your life’s passion to drive change, make sure you’ve designed a fair business model, and – most of all – make sure that you can realize it.

September 19, 2016 #161

goals to become a leading bank in Georgia and the Caucasus Region”, TBC Bank director general Vakhtang Butskhrikidze said.

Consolidation of TBC Bank and Bank Republic has a strong industrial logics and it will bring considerable benefits to the Georgian bank sector in terms of leadership and service improvements. We are happy that we have transmitted our shares to such motivated group of professionals as the TBC Bank management.

We believe that we have selected the best partner for our subsidiary in Georgia. We are looking forward to completing the transaction successfully and we prove our readiness for cooperation to overcome the transient period painlessly”, Bank Republic director general Antoin Gabizon said.

Regarding the deal the National Bank of Georgia has released a special statement notifying that the NBG is based on competition arguments and the mandate for promoting stable and efficient operation of the bank sector and protecting consumer and investors rights.

When analyzing a specific transaction it is important to take into account expected influences on competition issues, efficiency of the finance system and protection of investors and consumers, as well as the small size of the market, where, under the international practice, amalgamation is one of the mechanisms for attaining efficiency. At the same time, growth in effect and efficacy of scales fosters lowering interest rates.

It should be noted that several months ago media outlets spread information that Hualing Group that owns Basisbank in Georgia was interested in purchase of Bank Republic too. Both parties approved information on the mentioned negotiations. At the same time, in summer 2016 Societe Generale group concluded a preliminary agreement with Chinese trade and industrial group LLC Xinjiang Hualing (Hualing Group) and EBRD on sales of controlling interests in its Georgian subsidiary Bank Republic. However, TBC Bank seems to have offered better conditions and therefore, the French bank preferred to make a deal with TBC Bank.

Bank Republic was founded in 1991. In 2006 French Societe Generale bought a 60% stake in Bank Republic.

Later in 2009 the Group increased the stake to 80%.

The EBRD also hold a stake in Bank Republic since 2006.

According to the last reports, both banks are among top 5 commercial banks of the Georgian bank sector in terms of assets as of August 1, 2016. TBC Bank assets make up 6.7111 billion GEL, while Bank Republic assets marked 1.751 billion GEL. After amalgamation consolidated assets will exceed 8.5 billion USD (including 108 million USD assets of Progress Bank). However, in terms of assets Bank of Georgia remains the sector leader anyway, as Bank of Georgia assets account for 9.55 billion as of August 1, 2016.

It should be also noted that, according to the TBC Bank management, negotiations are underway with other Georgian commercial bank on buying off a certain portfolio. The TBC Bank management has not divulged information on the bank. Therefore, it is expected that after the mentioned deal TBC Bank become the new leader of the Georgian bank sector.

“We are delighted to transact with such a motivated and professional management team and believe that we have selected the best partner for our subsidiary in Georgia.We are looking forward to successful completion of the transaction and will closely collaborate to achieve smooth transition process” Antoine Gabizon Chief Executive Officer of Bank Republic declares

INVESTOR

September 19, 2016 #161

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AGL is investing a total of USD 416 million and employing 730 Georgian citizens on this project

An Investment in Education by One of Georgia’s Largest Investors M

inister of Education of Georgia Aleksandre Jejelava, Minister of Education of Adjara Giorgi Tavamaishvili, and representatives from national and regional government attended an event by Adjaristsqali Georgia LLC (AGL), one of the country’s largest investors. At this event, the company presented the educational projects it is financing in highland Adjara and held a scholarship award ceremony for students whose higher educations will be funded by company in accordance with the memorandum it signed with the Ministry of Education.

Speeches were delivered by Ronny Solberg, CEO of Adjaristsqali Georgia; Aleksandre Jejelava, Minister of Education of Georgia; and Zviad Diasamidze, the Director of Land and Social Issues at AGL. AGL is implementing one of the largest infrastructure investments in Georgia, the Shuakhevi Hydro Power Plant (HPP) project. AGL is a joint venture between India’s Tata Power (40 percent), Norway’s Clean Energy Invest (40 percent), and IFC, a member of the World Bank Group (20 percent).

AGL is investing a total of USD 416 million and employing 730 Georgian citizens on this project. The company holds itself to high standards of social responsibility by supporting the economic and social development of the Adjara region and by improving the living standards of those living within the

“

We have implemented more than 70 successful social projects as part of the Shuakhevi HPP construction.

All of these projects were the result of close collaboration with government agencies and local residents

”

project area. One of the company’s primary social responsibility priorities is to improve the quality of education and to raise of awareness in highland Adjara.

In addition to the construction of the Shuakhevi HPP, the company is implementing more than 70 social projects focusing on the long-term development of Adjara. One of the main priorities of these projects is education and awareness raising in the Khulo and Shuakhevi municipalities. These educational projects are planned based on socioeconomic research into the needs of the region and carried out in cooperation with the Ministry of Education of Adjara, local government, and residents of affected areas.

Aleksandre Jejelava, Minister of Education applied to students in his speech: “I would like to wish you to dream without limits, plan and decide something that

seems impossible to you, plan to be in the place of Mr. Ronny, me and other attendees’ in ten, fifteen and twenty years, everything is possible, you are in control of absolutely everything, if you decide not to do your best, then life will definitely be harsh on you, but if you have a desire, use this opportunity that in this case Adjaristsqali and our country gave to you in order to have the world at your feet”.

In his speech, Ronny Solberg stated, “So far, we have implemented more than 70 successful social projects as part of the Shuakhevi HPP construction. All of these projects were the result of close collaboration with government agencies and local residents. These projects, I believe, serve as good illustrations of what can be accomplished through partnership between the state and private sectors.”

6 TURNING AN 8000 YEAR WINE TRADITION INTO SUCCESS IN GEORGIA MAIA CHITAIA

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ew opportunities are opening for Georgian winemakers and wine lovers through the EU funded programme East Invest 2.

The regional investment and trade facilitation programme, East Invest 2, is working to improve the SME sector across the countries of the Eastern Partnership. East Invest 2, through one of its actions, has set out to revitalize the Georgian wine industry, by transferring knowledge from Bulgaria in the areas of wine marketing and standardisation.

The project is twinning the Georgian Wine Association (GWA), an independent non-state organization, with the Bulgarian Chamber of Commerce and Industry (BCCI). Through the project, an online platform is being developed that will promote Georgian wine producers and act as a one-stop-shop for key information and guidance to the wine industry, helping to spur growth and exports to the EU market. The BCCI will be bringing its experience in supporting the Bulgarian wine industry. This story shines a light on one woman entrepreneur who is benefitting from the project.

WINE

September 19, 2016 #161

Baia Abuladze (22) is a young Georgian woman from the region of Imereti in West Georgia, who produces wine under the brand name ‘Baias Wine’.

Traditionally wine making is a male dominated business and Baia is one of only a few women winemakers in Georgia.

‘Georgia has 8 000 years of history in wine making. With more than 500 grapevine varieties, Georgia was always known for its unique tradition in winemaking’, explains Baia. ‘My family also has a long tradition of vinery and my passion towards wine making takes its roots from my childhood, when my Grandfather told me a story of how centuries ago, Georgian crusaders carried grapes in their armor, so if they fell in battle, the grapevine would grow. I decided to contribute to this rich Georgian winemaking tradition’.

Baia is currently producing 5 000 bottles of wine per year under her own name. ‘Gender barriers are no longer a problem for me’, says Baia smiling. ‘Now I face another obstacle – the lack of knowledge of how to acquire quality standards and market my wine not only in Georgia but also to European countries. One of the biggest challenges is a lack of up-todate information about innovation in agriculture, standards and marketing’.

With the signing of the Association Agreement with the European Union in June 2014, new opportunities for Georgian SMEs opened as the DCFTA (Deep and Comprehensive Free Trade Agreement) brought benefits and duty-free trade with the EU. In light of these new prospects, the Georgian Wine Association conducted an assessment of the wine and grape sector and found that Georgian wine producers, like Baia, and people involved in the wine tourism sector lack the knowledge and support for innovative product development, access to finance and have few opportunities to exchange practices with their European counterparts. Also there is no professional, business and information platform about wine and grape products. This is why East Invest 2 is ‘Twinning’ the Bulgarian Chamber of Commerce and Industry and the Georgian Wine Association to implement: “Competence Center for Wine, wine marketing and grape products”.

The online platform being developed, in addition to providing key information and guidance on wine producers, will promote local vineyards. 100 companies mainly from Kakheti and Kartli regions have been selected and interviewed and will be featured on the site with information on their production, pricing and availability for export.

In order to make the platform more sustainable, the Georgian Wine Association plans to link the site with the popular tourism portal http://georgianwine.travel/. This will generate more traffic and offer new cooperation and partnership opportunities between the wine, grape and wine tourism fields.

‘Georgian small and medium entrepreneurs are facing serious challenges in learning the DCFTA requirements’, says Baia. ‘We expect that once the platform will be launched, which is expected in December, all producers will be able to access the information packages and through better knowledge of safe and quality wine production, more producers will export their products to Europe.

I hope that Baia’s wine will be brought to a wider international consumer network thanks to the project and Georgia can turn its 800 year wine tradition into a success.’

QUOTE Gender barriers are no longer a problem for me.

Now I face another obstacle, which is the lack of knowledge on how to acquire quality standards and market my wine not only in Georgia but also to European countries.

And I hope that Baia’s wine will be brought to a wider international consumer network thanks to the project and Georgia can turn its 800 year wine tradition into a success Baia Abuladze, young Georgian wine producer.

FACTBOX • East Invest 2 is financed by the EU and is working to stimulate economic development of Georgia and the rest of the Eastern Partnership.

• Georgia has 8 000 years of history in wine making and more than 500 grapevine varieties; • Georgia signed an Association Agreement with the European Union in June 2014; • The Georgian Wine Association and Bulgarian Chamber of Commerce and Industry are the implementing partners; • More than 100 Georgian winemakers will be registered on the online platform; • 52% of people working in agriculture in Georgia are women.

September 19, 2016 #161

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ECONOMY PASHA Bank – General Sponsor of Spotlight 2016

Investors Allocate $705 million in Georgia

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n the first half of 2016 investors put 834 million USD net foreign direct investments (FDI) in Georgia. A major part of the sum was directed to the transport and communications sector. Azerbaijan is reported to be the biggest donor. Despite elections, specialists expect the country to have attracted 1.5 billion USD investments by the end of 2016.

Investment inflows in the first half exceeded the previous year’s analogical indicators by 11%. The second quarter’s net foreign investments (445 million USD) are down 4% compared to the second quarter of 2015. The statistics service has provided a bit strange explanation regarding the fact. The press release reads that the second quarter’s investment inflows have declined as compared to the final specified indicators, but the figure exceeds preliminary forecasts by 20%. Statisticians stress that inaccuracy in statistical information may be 3%, but it would be not be surprise if the Georgian statistics service publishes 10-15% inaccurate indicators.

As to the previous quarter, Georgia attracted 56 million USD more investments.

Specialists suppose that the investment inflows growth tendency will be maintained in the next quarters too if the elections are held in peaceful environment and political tensions are prevented in the country.

Out of net foreign investments attracted in the second quarter, 256 million USD is stock capital. It should be also stressed that, as compared to previous quarters, reinvestments indicators have considerably increased – 146 million USD, while 42 million USD is debt.

“If the investor likes business environment, is not afraid of corruption burden, is sure of economic development perspectives in the country, then, instead of speculative debt operations, they create stock capital and make reinvestments. Under the previous Authorities, in the business racketeering period,

we received economic system based mainly on speculative investments, that is the fragile economy based on debts”, economist Mikheil Dundua said.

Economist Giorgi Ghaghanidze noted that investments are calculated in the wrong way in Georgia. Investment indicators should not be compared on quarter basis, like foreign trade indicators, he said.

“This is a wrong approach to investments.

This is erroneous comparison. As a rule, we should be based on annual indicators. In countries like ours, in the election year, investments inflows are not high. This is axiom.

For the first time, in 2012 the power was shifted peacefully by elections. Therefore, it is difficult that investors show much confidence in the Georgian economy”, Giorgi Ghaghanidze noted and added that Georgia has to hold at least three elections to deserve the confidence of mega investors.

The second quarter has not recorded significant outflow of capital from the country (about 260 million USD). At the same time, in the first quarter skeptics recorded an outflow of 953 million USD for reduction of liabilities before investors. As a result, more than 1.2 billion USD capital was taken out of the country in the first half. The Banks and Finances newspaper has recently covered this issue.

It should be noted that the volume of investments taken out of the country grows year by year. Profits repatriation is carried out mainly in companies founded by foreign investments, or these investments go out after a certain while. Consequently, the difference between attracted and lost investments narrows gradually. According to the 2015 indicators, over the 5 past years, 4.5 billion USD capital was taken out of Georgia , while in the same period, the country drew only 6 billion USD. This signifies, in practice, investors take back all investments that they put in our country.

Seemingly, they find reinvestments in Geor-

gia not very attractive.

Soso Archvadze, doctor of economics, says that if we compare attracted investments to total indicator of investment profits and the capital taken by residents out of the country, we will receive more alarming picture. We will see that more capital goes out of the country, than comes. Namely, over the past 5 years, the country attracted 6 billion USD investments, but the capital outflow marked 6.5 billion USD. Economic experts noted that when discussing economic condition and volume of resources of the country, we should take into account not only investments attracted from abroad, but their further fate too. Namely, at the next stage of production, profits raised from these investments remain in Georgia or they go abroad.

Academician Avto Silagadze noted that removal of profits tax on reinvestments will be a good signal for investors. “Every year considerable funds go out abroad – hundreds of millions of USD. Introduction of certain tax preferences on turnover of this capital is very important so as the country maintain this capital”, Avto Silagadze noted.

As to sectoral investments, traditionally, investors have made major investments in the transport and communications sector (175 million USD). This is 39% of total investments. The finance sector ranks second with 60 million USD. The power sector is third with 46 million USD. The development sector is fourth with 19 million USD and the processing industry is fifth with 17 million USD. Major volume of investments (146 million USD) was attracted from Azerbaijan and Britain (64 million USD). These investments are mainly composed of SOCAR and BP injections for the power sector development. Turkish investors put 28 million USD and 64 million USD was transferred from offshore zones – Panama, Netherlands, Cyprus.

On September 10th, 2016 the year’s major marketing event Spotlight 2016 took place in Radisson Blu Iveria hotel. For the second year PASHA Bank was the general sponsor of the event.

Spotlight takes place since 2013 and it hosts Georgian marketers and other professionals to share their experience with the public and colleagues. This year above 450 guests attended the event, among them PR and marketing specialists of the local and international companies, advertising agencies and those merely interested in the subject. Last year PASHA Bank launched a new project Spotlight Marketing Library that aims to create a single comfortable space with the professional literature in Marketing, Branding, PR and other related fields that will be available for everyone interested in these topics.

This year PASHA Bank donated more than 50 books to the library and those Spotlight guests who registered at the Spotlight Marketing Library stand received free reader passes from PASHA Bank.

“PASHA Bank operates in Georgia for 3 years already and during this period we have regularly supported educational and professional projects. Spotlight is one of this kind as it creates a platform for marketing and advertising professionals to share their knowledge and experience with each other. We are proud to sponsor Spotlight for the second time and that our mutual projects Spotlight Marketing Library and analytical rubric on Marketer.ge are very popular among those interested in the sphere.” – said Anano Korkia, Head of PR and Marketing at PASHA Bank. „Our cooperation with PASHA Bank started 2 years ago and since then the Bank sponsored Spotlight twice, the video records of which are public and viewed by thousands of users. We have also joined our forces on two major projects: Spotlight Marketing Library where one will find the most contemporary professional literature that is brought to it by PASHA Bank and our favorite rubric on Marketer, where we translate and publish the analytical articles by Harvard, Stanford, Kellogg. Our partnership with PASHA Bank is a good example of companies’ productive collaboration and the initiatives that come from PASHA Bank have a long term effect on the development of our business society as the books, articles and videos are consumed by more and more people each year.“-said Ako Akhalaia, founder of Marketer.

8

PR

September 19, 2016 #161

Anano Korkia

One Meeting That Changed Life and Contributed to Professional Growth Interview with Head of PR and Marketing Department at PASHA Bank

C

aucasus Business Week offers you an interview with Anano Korkia, head of PR and Marketing Department at PASHA Bank Georgia, where she talks about her work experience, successful projects and a meeting that has made important changes to her professional career.

- What is your profession?

- I graduated from Georgian Diplomatic Academy, where I studied international relations. I continued my studies in Turkey and got my Master’s Degree from Istanbul University, faculty of social sciences. I believe that my student years in Turkey have taught me a lot and this period particularly was when my working skills actually started to develop. I remember working as an interpreter between Georgian, Turkish, English and Russian for various companies, observing and exploring the negotiation processes of utterly diverse companies and people. It was indeed a very interesting process for my professional development. Since graduation I have taken various trainings and courses such as Project Management, Finances for Nonfinancial Managers, Neuromarketing and others; I also attended numerous local and international seminars on marketing and the related fields which all together combined with the gained work experience brought me to the point when I can say that my profession is: marketer.

- What about your first job?

- I had several part-time jobs in Istanbul during 2006-2010, most significant of which were with diamond producer companies (from India) that were supplying Turkish jewelry market. I also worked for an English textile company for several months; we were supplying Marks & Spencer outlet centers with stocks from factories around the world: from Turkey, Italy, Egypt and other countries, including even Georgia. My responsibilities were to find relevant stocks, to negotiate prices and to ensure logistics. I remember once I got a sample of an item from a textile company in Georgia (in Ajara) and the label said “Made in Georgia”. I got so excited and happy about it, I even took a photo with my phone and suddenly I noticed the surprised faces of my Turkish colleagues, they could not understand what was so special about that label, they were so used to seeing labels saying “Made in Turkey” that it took time for me to explain to them that seeing an item (and especially of an international brand) produced in Georgia was something really rare.

However, for some reason whenever I am asked about my first job, I think of my first full-time job in Georgia. It was at an advertising company, Stromboli, and I was very lucky to have a supervisor who was very competent in this field and who taught me a lot. My first account was MobiPay and it was a very interesting process for me as we were doing everything from the scratch. From Stromboli I went to Silknet, then Bank Republic and it has been two years since I work at PASHAH Bank.

- You first success.

- It is hard for me to identify my first success. There have been projects that I have initiated and/or executed throughout last years that I am particularly proud of and that have had positive feedback from the company management as well as other stakeholders. Most of the successful projects and activities are result of teamwork and I think I have been quiet lucky to have worked together with really great colleagues throughout my working experience.

- Project that you have implemented and are proud of.

- I cannot fail to say it again that every project that I have worked on owes its success to a team. The latest project that I am really proud of is MEETING ROOM cycle of business conferences. The project aims to bring together participants from various industries providing a platform for sharing ideas and best practices as it relates to raising the capital for various projects in respective industries.

I would also distinguish Spotlight Marketing Library Initiated by PASHA Bank.

The project is supported by Tbilisi Mediathek and Spotlight. Marketing Library was launched in 2015 and it represents one comfortable space with the professional literature in Marketing, Branding, PR and other related fields that are available for everyone interested in these subjects. We have been working on this project for a second year in a row and it has generated very positive feedback, we have so many readers by now that we really did not expect. In 2016 we added quiet a long list of new books on marketing and we plan to continue doing so as the interest from young marketers keeps rising and the up-to-date and trendy literature is not so easy to find in Georgia. Together with my colleagues, especially Diana Tigiishvili, I am

really proud of this project as it actually serves a common good and professional development of people interested in this field.

- The field where you would never work.

- I think I would find it hard to work for medical field. Whenever I get in touch with medical institutions I always tend to think that this is something that I would either be unable to do or that I would find it very hard.

- What factors make a person successful in your field? Besides knowledge, what special personal characteristics are required?

- At certain extent I think it depends on the company you work for. There are companies that contribute to one’s growth more than some others. For example, PASHA Bank is definitely the kind of company that invests in the professional development of the team. It also supports new initiatives and ideas, which is a very important factor for success. This is exactly how you accomplish certain projects and activities that eventually result in the company’s and the person’s mutual success.

On personal level, I strongly believe that being responsible and hard working helps a lot in all fields. In our field I would underline probably creativity, organizational and analytical skills, open-mindedness and contacts. And also, I think that correct application of gained experience is something that contributes to person’s success in any field of work.

- Interesting episode from your business life that have changed your life.

- Work is a quiet substantial part of my life; I spend large amount of time at the office, basically like most of us who work at commercial companies. Therefore starting a new job actually means a change of life to me. As an interesting episode that changed my life I can name one unplanned meeting - I remember I was at a presentation in National Bank of Georgia, where I met my old colleague, who told me about the opening at PASHA Bank. I was not really looking for a new job at that moment but somehow it all continued in a way that I found myself in an interview, then writing a case and then another interview and eventually getting an offer that turned out to be interesting for me. So, basically that one meeting brought certain important changes in my life and definitely contributed to my professional growth.

- Without this profession, who would you be and where would you take efforts?

- I think I would be occupied with my initial choice and would apply what I studied for my BA and MA in international relations. As a student I worked as an intern at the Parliament of Georgia at the Department of International Relations for a full year. For several months I was an intern at the Consulate General of Georgia in Istanbul. I remember I was quiet interested in this field too and most probably I might have continued development in that direction if I had not taken the path I took.

- Where do you see yourself after 20 years?

- That is quiet a difficult question. If you would have asked me that same question 10 or even 5 years ago, I would probably not have been able to tell you that I would be here today.

It isn’t as though I don’t have a plan but life is really full of surprises and most of the times you just have to be prepared to accept changes that are beyond our control.

I am very optimistic about my future and I am sure that in 20 years I will remain to be a person who is happy with her life. But then again, it is hard for me to say where exactly I see myself at the age of 50. Hopefully, somewhere around.

9

EDUCATION

September 19, 2016 #161

Georgian Technical University Georgian Technical University does its best to transmit international-standard education and knowledge to its students. However, PR issues are unsatisfactory and that’s why the university perception is low abroad, GTU vice principal Levan Klimiashvili noted.

“Valuable PR campaigns should be organized by the country and even by the university. The main problems come from lack of information, because any program at our university meets international-standard requirements. As to PR issues, a special department has been organized at the University to work on this direction. This will bring real results in the near future”, Klimiashvili noted.

Georgian Technical University satisfies all standards required for penetrating the international market, Levan Klimiashvili said. All programs have been accredited in Georgia, the USA and Europe.

We provide international-level programs.

University of Georgia Koka Topuria, chancellor of University of Georgia, explains that this indicator is not alarming. He asked: why should Georgia be in this list, when it is a developing and poor country?! The world’s best universities were included in this list. Only surprise is that universities of Azerbaijan and Kazakhstan were mentioned also in this rating. As to Russia, this is not a surprising fact, because it is the world’s huge country, which used to produce rocketry and it should not be surprising this country has been included in the mentioned rating, Topuria noted.

As to Georgia, to pave way to the rating of the world’s best universities, it is necessary to open doors for students from other countries. «This policy will upgrade the education standards to a higher level», Topuria said. Moreover, the higher education sector should be privatized. This signifies all state universities should be transformed into private universities as it was made by the previous Authorities, when LEPL institutes were transformed into non-commerce legal entities, he added. There is quality and price.

Georgia gives valuable education, but tuition fees are low. Therefore, foreign students find these conditions acceptable.

Georgia Misses List of World’s Best Universities “

As to Georgia, to pave way to the rating of the world’s best universities, it is necessary to open doors for students from other countries

”

E

ducation level is one of the main indicators for success and development of a country. Education sector plays one of the most decisive roles in economic advancement. Unemployment problem is the major challenge in Georgian reality.

When analyzing unemployment reasons, specialists frequently conclude that the education quality and lack of qualified staff frustrate a growth in investment inflows and creating new job places.

For many years the higher education quality in Georgia is being sharply criticized. The fact is that some accredited higher institutions in Georgia set much higher tuition fees as compared to European countries, but Georgian universities are not mentioned in international ratings or only occupy the last positions. British organization Quacquarelli Symonds (QS) has published one of the similar ratings with the world’s best 916 higher institutions of 81 countries, including from the USA, Great Britain, Germany, France, Japan, China, Canada, Russia, Kazakhstan, Ukraine, Lithuania, Azerbaijan, Belarus, Estonia and Latvia. According to rating indicators, the USA ranks first (154). The last place is occupied by Latvia (1). Georgia is not mentioned in the list of the best universities. As to our countries, only two of them are included in the rating: Russia (8th position) and Azerbaijan (12th position). The rating authors have not found even one valuable higher institution in Turkey, which pretends to be providing top level higher education.

The Caucasus Business Week (CBW) has tried to determine what this indicator means for our country, how alarming is it and what should the country do that Georgian universities be mentioned in ratings of the world-level universities?

Tbilisi State Medical University State universities rarely get into similar ratings, because financial independence is one of the main preconditions in the process of making ratings, Zurab Orjonikidze, chancellor of Tbilisi State Medical University, noted.

“When we moved from LEPL system to the system of non-commerce legal entities, I said to the Finance Minister and the Parliament Members that Georgian universities would lose much.

I implied ratings. Universities must be independent in terms of finances. Private universities are free. I would not say this is only reason that our university is not mentioned in this rating, but this is one of the main preconditions”, Orjonikidze noted.

It is also important that a university have many foreign students.

Tbilisi Medical University has more than enough contingent in this respect, Orjonikidze added.

«It is believed that if 40% of students come from foreign countries, this is a good university. At the same time, it is a good indicator when 20% of teachers come from foreign countries. 30% of students at Tbilisi Medical Universityare foregn citizens, but the issue with teachers is less satisfactory», Orjonikidze said.

Lack of valuable infrastructure is an additional reason why Georgian universities are not included in similar ratings, he said.

Free University I do not have information on this research and therefore, I cannot comment on this issue, Vakhtang Lezhava, principal of Free University, noted.

A major part of inquired experts suppose that the situation will not change in the near 10 years, because fundamental changes should be carried out in the education system, because the higher education quality is low in the country.

Higher education sector attains success thanks to serious investments, Hamilton school director Gia Murghulia noted.

“We should take into account that financial and infrastructure issues have of crucial importance. Naturally, higher education sector attains success in case of serious investments. In our country all these issues are not satisfactory and desirable. I also mean infrastructure (classrooms, laboratories, educational environment). It is also important that professors who teach at our universities frequently cannot compete with foreign colleagues. It will take about 10 years to improve this situation”, Murghulia explained.

Ivane Kighuradze, parliament majority member and head of the parliament committee for education, noted that about 10 years are required that our universities get into similar ratings.

“The past years have made destructive effect on science and higher education. It will be very difficult to improve this situation. It is necessary that the government pay more attention to higher education. About 10 years are required that our universities get into these ratings”, Ivane Kighuradze noted.

10

BUSINESS

September 19, 2016 #161

Kutaisi University Town will Be Biggest Science-Education Center in Caucasus “This project will enable us to create a very big center of new education and technological development in our country”, the First Vice Prime Minister of Georgia commented on the project that will be implemented in Kutaisi by financial contribution of Cartu Fund.

The mega complex will be located on 1 million square meter space and 60 000 students will go there.

Entirely new standards of education, science and intellectual resources will be established in the university town. Cartu Fund will fully finance the science-education mega project worth 1 billion EUR. The technological university will create a domestic base of professionals for all fields required for the economic development of Georgia. The university will create an education-science hub that will enable Georgian and foreign students to receive American and European standard higher education.

BANK

FASHION

Liberty Bank Introduces Two New Successful Young Athletes as Brand Envoys September 2, 1993 in Mtskheta.

In 2006 he started active training in canoe paddling. In 2007 he won Georgian championship in the 15-year-old age category. In 2008 he won golden medal in one-seat and two-seat canoes in the Georgian championship.

In 2011 he won Georgian Championship for the second time.

In 2012 Zaza won the Georgian Championship for the third time and won the third place of international tournament in Ukraine.

In 2013 he won international championship in Armenia and Azerbaijan, Georgian Championship in absolute age category and 14th place in absolute age category of the World Championship. In 2014 he obtained the Baku Olympic Games license. In the same year, he won a bronze medal at the U23 World Championship.

In 2015 he won 10th place at Baku Games and 4th place at the World Championship. In 2016 Zaza won 2nd place at the licensing championship of Europe and obtained the Rio Olympic Games license, won 3rd place at the World Cup Championship and 5th place at

On September 15, at the Liberty Bank head office, the Bank director general Aleksi Khoroshvili introduced two new brand envoys to reporters – canoeist Zaza Nadiradze and tennis player Mariam Bolkvadze.

“I am happy to introduce new envoys of Liberty Bank, gifted and hardworking people, who have brought multiple glory and victory to Georgia on international level.

Mariam Bolkvadze and Zaza Nadiradze have joined the team of our envoys. This signifies we will particularly care for their professional growth and development, because we want to make their

great success an example and motivation for all young people in Georgia”, Liberty Bank director general Aleksi Khoroshvili noted.

Currently, Liberty Bank has five envoys, including ninefold champion of Georgia judoist Mzia Beboshvili, twofold European Champion chess player Nino Khomeriki and astrophysicist Elene Midelashvili. Liberty Bank shows permanent readiness in any field, including sports, science and art, to discover hardworking, purposeful and successful young people success and promote their professional advancement and development.

Zaza Nadiradze was born on

NEWS

FAST FOOD

Georgian Sock Rejects to Export Products

Subway Invites Entities Interested in Restaurant Opening and Starts Active Development of the Chain

Georgian Sock has refused to export products. The legislative gaps make sock exports unprofitable, the company director Zaza Janezashvili told the Business Contact.

If the products is not made of Georgian or European raw materials, the export is taxed by 12% duty. Georgia does not manufacture threads.

European thread is expensive and grows the product’s prime cost.

New Georgian Airline to Be Founded in Georgia A new Georgian airline will be established in Georgia, Guram Jalaghonia, head of the civil aviation agency, told the Business Contact.

He abstained to divulge detailed information, but noted that the new Georgian airline will be established by foreign investment and Boeing airplanes will fly under Georgian banners. The airline will be founded by the end of 2016, Jalaghonia said.

Givi Ordenidze Representative of “Subway” Fast food famous brand “Subway” moves on the active phase of chain development in Georgia. According to Givi Ordenidze, representative of “Subway”, the condition is already appropriate in the country and interests towards the acquisition of brand’s franchise is increased by now.

Unlike the other famous brands, Subway has a different strategy of franchise issuance and any entity can acquire it, if he meets the demands. Whereas, McDonalds’, Wendy’s and KFC are issuing the so-called master-franchise on one legal entity. “We were not carrying active promotion up to now, as we had been waiting for stabilizing the situation on the market. but now we regard that it is time for active development of the chain. We invite interested entities at Hotel “Court Yard Marriott” at 18:30 p.m. on September 15.

We should submit presentation of opening of a restaurant under Subway brand and answer on all questions – how to purchase franchise license, how to open a restaurant, what are the demands and etc”, – Givi Ordenidze declares and notes, that Subway is very flexible in terms of restaurant opening, so their number reaches 45 000 in the world and is ranked as the 1st by the number of restaurants. Representative of the company notes, that investment volume for opening of a restaurant starts from 100 000 USD, while opening of other brand restaurants might equal to 1 million USD. Subway has 5 cafes in Tbilisi by now, at that 3 of them are owned by the same company, whereas 2 others have a different holder. According to the plan, not less than 30 restaurants must operate within Georgia by 2020.

The company considers, that opening of a restaurant in the different districts of Tbilisi will be profitable, for instance in Gldani, as well as other cities, in Batumi, where merely McDonalds’ is represented from the fast food brands. However demand is great in Kutaisi and Zugdidi as well.

the Rio Olympic Games.

Mariam Bolkvadze was born in Batumi on January 1, 1998. At her 8 she decided to start training in tennis. After trainings and preparations, she started participating in tournaments and, having turned 12, she became twofold champion in the 16 age category.

She was fourfold champion in the 18 age category and ranked among top fifty tennis players of Europe.

At her 16 Mariam started participating in international women tournaments and currently she ranks 443rd in individual category and 597th in pairs. In 2016 she participated in Junior Wimbledon and reached final stage in pairs.

Mariam has won three 10 000 USD tournaments, including two ones in Egypt and one in Batumi.

Iნ Egypt she defeated a Wimbledon Champion. Moreover, she has also beat Naomy Broady in the England National Tournament, who ranks among top 100 players.

In the same year she participated on behalf of Georgia in the Federation Cup, where he sowed 100% winning result.

Georgian Shop MALAT Debuts Capsule Collection at New York Fashion Week Malat Capsule Collection by Georgian Fashion Designers debuted at New York Fashion Week in iconic hotel Dream Downtown NYC. Specially for NYFW designers such as Dalood, Lalo Dolidze, Aka Nanitashvili, Nino Babukhadia, Elosh, Salome Gviniashvili, Vaska Tabatadze, UGLY, Natia Khutsishvili and Natia CUFF worked on capsule collection. Famous foreign designers, stylists and media representatives assessed the show positively.

Malat Presents a collection of handmade items by Georgian designers. You can find ready to wear clothing, shoes, and accessories. The collection is carefully hand picked for unique and stylish individuals.

In April store opened on Broadway in New York. The store was cofounded by three Georgians: Ani Purtseladze, Anika Odzelashvili and Nia Odzelashvili.

11

OPINION

September 19, 2016 #161

When I was in my second grade at school, I wrote essay titled “If I were a magician”.

I was very sincere in wasting my chance for magic that our teacher had proposed for the dreams of “peace around the world” and GUSSR (Global Union of the Soviet Socialist Republics). Got my A mark for it, with my teacher’s postscript: “Well done, magician!”

Dr. Andrei Maximov Maximov&Partners LLC am@maximov.com www.maximov.ge

IS GEORGIA SIMILAR TO SWITZERLAND?

A

fter recent events in the summer of 2016 (failed coup d’état in Turkey and subsequent massive repressions; obscure and turbulent events in Armenia and Kazakhstan; escalated situation in Ukraine) I have been getting phone calls from my friends in Istanbul, Almaty and Kiev who were asking me the same question: “How does it feel residing in Georgia?

What kind of country is it? What can an immigrant expect there?” While answering these questions I started musing: if I were a magician, how would I have changed Georgia creating a country where I would have liked my family to live on and on? Well, since I stopped believing in magic a long time ago, my thoughts got back to the rational direction: what kind of a country could Georgia become in an ideal situation? How can it attract smart, educated, cultural, intelligent, well-to-do and enterprising individuals from the surrounding countries experiencing all kinds of calamities? Those people who are actively searching where to leave as a result of existing current circumstances.

My answer to the questions of my friends is simple: Georgia today and, potentially, in the future is an island of calm and freedom in the raging seas around it. Both in terms of its society and its economy. Let us state what is Georgia notable for. It is: - a country with a very small territory and a very small population, especially as compared with its huge neighbors which cannot be compared to Georgia in terms of their territory, population, military and economic potential—and all of them have been lustily viewing Georgia as a small, but a very tasty morsel; - a multi-ethnic and multiconfessional country with a centuries-old tradition of ethnic tolerance and religious freedom; - a country with a great potential in terms of its nature and climate, yet without an important base of industrially viable raw material resources (with a few exceptions); - a country located at the crossroads of main thoroughfares from Europe to Asia and thus meant for transit traffic.

Such initial data make Georgia comparable only to one country in the world,

so we have no other option than to become, ideally, the Switzerland of the Caucasus. Believe it or not, but even ancient legends relating the story of how God created them are very much alike.

The Georgian version says that God gave away to the Georgians (who came too late for the distribution of lands) the most beautiful place on Earth that He wanted to dwell in Himself. The Swiss version says that there was nothing left for the Swiss during the distribution of mineral resources. So God decided to give them, instead, “unusually beautiful mountains and glaciers, blue-eyed lakes, roaring waterfalls and great-looking valleys.”

Prior to the status of a neutral country which was established for Switzerland during the Congress of Vienna in 1815, it had been torn to pieces by its neighbors: ancient Rome, Holy Roman Empire, France, Italy, Austria-Hungary and Germany. Switzerland experienced civil wars, including religious conflicts. In today’s world the Swiss state does not participate in international conflicts, guaranteeing to all of its citizens the freedom of ideological and political views, freedom of speech, conscience and faith. The country boasts of the freedom of the press and the lack of censorship. After two centuries of neutrality Switzerland has become an acknowledged stronghold of peace and tranquility, with no terrorism around, and, undoubtedly, one of the richest countries in the world with a powerful and diversified economy.

Switzerland is multi-ethnic. There are four state languages in the country.

The population of 18 cantons speaks German, 4 cantons speak French, 1 canton speaks Italian, and 3 more use both French and German. Under 0.5% of the population speaks a relic RhaetoRomance (a kind of a mix between French and Italian, a language of Latin extraction). This linguistic diversity in Switzerland is a result of many centuries of its history plus a mass immigration of foreigners into the country.

Switzerland is multiconfessional.

Catholics and Protestants predominate, but all other religions are represented, including Islam and Judaism. There are

almost half a million of Muslims in this country with a total population of 7 millions. There is a full-fledged freedom of faith, even if in 2009 the construction of minarets was prohibited be the general referendum. Non-stunned slaughter (as in kosher or halal procedures) is prohibited in Switzerland, because the Swiss considered it an inhumane act.

So, can Georgia become the Switzerland of the Caucasus? Well, it does not any other option! What does it need for that?

First of all, stay a neutral oasis of calm in a very sensitive region. It is not such a simple option when 20% of its territory is occupied by its neighbor. Still, the most important thing for Georgia is, in my opinion, to keep intact its main and unique advantages: ethnic and religious tolerance, freedom of thought, speech and faith, also to preserve the social and business environment comfortable for expats and foreigners who reside, work and do business in the country, who came to love Georgia and are ready to become a part of it.

This is why a comfortable language environment should be preserved for them in Georgia. In Switzerland, despite the presence of the four official state languages, not everyone can speak all of them. Each canton may make its own decision regarding which language will become the main to study in school or how well it must be taught. Today, the German-speaking cantons prefer teaching French in their schools, while the French-speaking part of the country opts, on the contrary, for German in their schools. The lingua franca for everyone is, however, English which is not the official state language, but it is taught in schools in all cantons.

Why do we need this analogy? I simply wanted to stress that the Russian language should not have been eliminated from high school programs during the preceding Georgian government.

This is not so much the language of the Kremlin, but rather the language of Pushkin, Tolstoy and Dostoevsky plus (which is much more important for doing business) it is the language of the whole post-Soviet realm, that is of most of Georgia’s neighbors. Would you guess which language use an Armenian and

an Azerbaijani during their resort stay in Georgia? Or imagine that: after Great Britain had left India, its colony, what would have happened if India decided to refrain from using English as its medium of state communication due to the fact that it was the language of the hated colonizers? What would have been left of India in this case considering that it managed anyway to fall apart into three separate states that are in conflict with each other?

In a country like Georgia (just like in Switzerland) an investor must be comfortable with any language, be it Georgian, Russian, Turkish, English or, perhaps, Farsi and Chinese. It is not suggested here, or course, that the languages of all potential investors and/ or immigrants should be made state languages. What is possible, however, is to direct the school education towards options for choice. Plus, of course, not to introduce any limitations.

A foreigner choosing Georgia as a country of peace and tranquility, as an oasis for himself, wants to be confident about his future—for himself, his family and his investments. This is guaranteed, first and foremost, via a democratic and stable regime as well as immigration laws that are comfortable for investors.

The Georgian state does quite a lot in this direction, but deplorable, counterproductive setbacks do happen at times.

For example, the changes of the visa regime in 2013-2014 (and for some countries, first of all, for Iran, the cancellation of the visa free travel) seriously damaged investment flows plus created the depression on the real-estate market as Iranians on a mass scale started pulling out of their acquisitions selling their real estate in Batumi and Tbilisi. These errors were corrected by now, even though they created quite a number of losses. Predictable and comfortable visa regime and immigration laws are one of the basic conditions for making Georgia attractive.

My last comment is that the predictability of the business climate and the long-term nature of investment regulations are also great factors for attracting foreign investment. That is, however, a very large topic.

12

GWS

September 19, 2016 #161

GWS Telavi Winery is 40 years old!

The Company Held Grand Celebration for its Jubilee

G

WS Telavi Winery is 40 years old. Wines and spirits producer company, with one of the oldest history, held grand celebration for its jubilee. A media tour was organized within the Jubilee framework, where the guests got acquainted with the winery history and wine-making technology.

In addition, the guests visited pitcher and wine cask houses located on the company territory. Several types of wine were tasted here as well. Also, during the media tour the journalists had the opportunity to visit GWS vineyard in Acura Village.

The event was attended by foreign partners of the company, diplomats, members of the national Wine association, representatives of local municipality, the other officials and media. Giorgi Samanishvili, the Chairman of the National Wine Agency was among invited guests.

According to him GWS was one of the first companies that started production of modern wine and actively is popularizing it.

“GWS represents one of the first companies, which switched over to production of modern wine. It has been actively operating for 20 years now and popularizing Georgian wine,”- said Giorgi Samanishvili.

„We organized a media tour for journalists and bloggers specially for this occasion. We tasted wines Tamada, Old Tbilisi, new brand Vismino, visited vineyards and together celebrated a 40 – year jubilee of one of the oldest wineries” – said Nata Kandelaki, Brand Manager of the Company.

A film dedicated to GWS’s past and ambitions future plans was demonstrated within the celebration framework. As the company representatives stated, they had the potential to retain leader’s position on the market and proudly present the best Georgian wines abroad.

GWS – is one of the oldest and famous wineries in Georgia, which was established in 1993 in Telavi, on the basis of the oldest winery Telavi-2 (founded in 1976). Currently GWS owns 350 ha of vineyards. Most part of it is 15-25 years old. 280 ha is occupied by red grape species while the other 120 ha by white sorts (70% of grapes is represented by traditional Georgian sorts and 30% by internationally known ones). The Company produces still, sparkling wines and high alcohol products known under the names of Tamada, Old Tbilisi, Adamanti, Vismino and Elibo. The company will shortly offer its customers a wine from its vineyards created by means of bio technology.

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WORLD NEWS

September 19, 2016 #161

Quotes

“ Embrace fear, At the moment, all banking operations between Russia and Iran are carried out in dollars or euro

insecurity and uncertainty as the doorways of opportunity that they are

”

Jenny Blake

If governments follow the FCTC’s advice, vape products would become less readily available and more people will smoke, with far worse health consequences

WHO Tobacco Treaty a Threat to Public Health – thanks to TAP Reason Foundation

Russian-Iranian bank may Greece to be energy hub ditch the US dollar

M

oscow and Tehran are actively working on opening a joint bank with plans to carry out operations in national currencies, according to the former president of the Russia-Iran Friendship Society Bahram Amirahmadiyan.

The decision on setting up the bank was agreed last year but Western sanctions against Tehran have been the main obstacle.

“Of course, the prospect of Russian banks opening in Iran is very attractive and important because it can widen and improve our economic cooperation,” Amirahmadiyan told Sputnik news agency, adding that banking cooperation between the two countries has a long history.

According to the official,

Moscow and Tehran want to carry out all trade operations in national currencies but the plan has yet to be resolved.

“At the moment, all banking operations between Russia and Iran are carried out in dollars or euro. It’s very inconvenient, because all these operations are controlled either by the EU or US central banks,” Amirahmadiyan said.

He added the Russian ruble could also benefit from the bank’s entry into the Iranian market, which would enable Iranian companies to buy Russian goods in rubles.

“I also think the Russian ruble can strengthen a lot on the Iranian currency market, and become a very attractive currency… I hope the same will happen to the Iranian rial in Russia,” he said.

Turkey to invest $675 million in southeastern district

T

urkey will invest 2 billion Turkish Liras ($675 million) to rebuild the Sur district in the southeastern province of Diyarbakır, which has been left in ruins by conflicts between the outlawed Kurdistan Workers’ Party (PKK) and Turkish security forces.

In a written statement on Sept. 9, the Environment and Urbanization Ministry said the extent of the damage was surveyed in Sur after security forces cleared PKK militants from the district.

Some 4,000 buildings would be built in the district’s Çölgüzeli and Üçkuyular neighborhoods to replace those destroyed in security operations, the ministry said, adding the

first 1,000 houses would be ready by the end of 2016.

“With 2 billion liras budgeted, the district will be almost rebuilt. Thousands of houses will be constructed, potable water pipelines and sewer lines will be repaired,” said the ministry.

Over 10 historic buildings, including the Kurşunlu Mosque, would also be restored, the statement added.

Last weekend Prime Minister Binali Yıldırım announced a package for the country’s east and southeastern provinces.

Speaking at a meeting in Diyarbakır, Yıldırım said Turkey would invest 10 billion liras ($3.3 billion) in the package.

Pursuing multi-vector foreign and energy policies, Greece will become an energy hub, Greek Prime Minister Alexis Tsipras said at a press conference Sept.11, RIA Novosti reported.

He said the energy routes of the 21st century will go through Greece. “To a large extent we have succeeded in this thanks to the Trans-Adriatic Pipeline (TAP),” he added.

As part of the Stage 2 of the Shah Deniz development, gas will be exported to Turkey and European markets by expanding the South Caucasus Pipeline and constructing Trans-Anatolian Natural Gas Pipeline (TANAP) and TAP. TAP’s initial capacity will be 10 billion cubic meters of gas per year with the possibility of expanding it to 20 billion cubic meters.

TANAP project, worth $9.2 billion, envisages transportation of gas of Azerbaijan’s Shah Deniz field from Georgian-Turkish border to the western borders of Turkey.

TAP stabilizes slope affected by landslides As part of the rehabilitation works for access roads in Albania, the Trans Adriatic Pipeline AG (TAP) successfully stabilized a slope affected by landslides, TAP reported. TAP started the rehabilitation of access roads and bridges Albania in the 2015 summer. “This will allow heavy machinery and equipment, including a 60 tonne pipebending machine and over a thousand 18-metre pipes weighing up to 16 tonnes, to gain safe access to remote areas along the pipeline route,” TAP said. TAP project envisages transportation of gas from the Stage 2 of development of Azerbaijan’s Shah Deniz gas and condensate field to the EU countries.

The 870-kilometer pipeline will be connected to the Trans Anatolian Pipeline (TANAP) on the Turkish-Greek border, run through Greece, Albania and the Adriatic Sea, before coming ashore in Italy’s south.

D

ocuments released last week by the World Health Organization, in advance of a November meeting in Delhi of its Framework Convention on Tobacco Control, show that the WHO has been operating in secret to limit access to new technologies that have enabled millions of people to quit smoking, according to a brief published today by Reason Foundation, a US think tank.

The brief, written by Julian Morris, vice president of research at Reason Foundation, looks at the work of the Framework Convention on Tobacco Control (FCTC), a treaty created by the World Health Organization in 2004 that seeks “to protect present and future generations from the devastating health, social, environmental and economic consequences of tobacco consumption and exposure to tobacco smoke.”

Since the FCTC came into force in 2005, the number of smokers in the world has increased, mainly in China and other poor countries that were the FCTC’s primary target. As Morris comments in the brief, “The FCTC has not been a stellar success on its own terms.”

Morris argues that a key problem with the FCTC is that it is beholden to the idea that the only way to reduce smoking is for smokers to “quit or die.” It is thus highly sceptical of the potential for new technologies, such as vape devices (also known as “electronic cigarettes”), to reduce smoking-related harms.

Among other evidence, Morris cites a report released last week by the FCTC, commissioned in secret from unknown authors that refers to unpublished evidence from meetings held in secret, which advocates that vape products should be heavily regulated.

Yet, a recent report from the Royal College of Physicians concluded that vaping is “at least 95 percent safer” than smoking, that vape devices should be widely available and that doctors should encourage smokers to use them instead of smoking. Moreover, millions of people have already stopped smoking by using vape products. And where vape products are legally available, rates of smoking initiation have fallen faster than in locations where they are not available.

If governments follow the FCTC’s advice, vape products would become

less readily available and more people will smoke, with far worse health consequences. “The WHO’s opposition to tobacco harm reduction is dishonest and threatens public health,” Morris says.

Morris suggests that many of the problems with the FCTC stem from the fact that it violates all the precepts of good governance – especially transparency.

He notes that at the two most recent Conferences of the Parties (COPs) of the FCTC, in Seoul in 2012, and in Moscow in 2014, all journalists were thrown out of the public gallery and the meetings were held in secret.

The FCTC also excludes many groups whose input would be highly relevant.

Morris notes: The FCTC currently lists only 20 NGOs as Observers on its website. By contrast, the Framework Convention on Climate Change lists over 2,000 NGOs as Observers. Moreover, there is essentially no participation by representatives of many affected groups, including users of tobacco and vape products, vendors, and farmers. Participation by IGOs has also been restricted; even Interpol has been denied Observer status despite its expertise in combating illicit trade in tobacco, a key topic covered by the Convention.”

The primary justification the FCTC Secretariat gives for restricting participation and operating in secret is the avoidance of conflicts of interest. But the real reason, Morris argues, is that the FCTC doesn’t want to allow anyone into the tent who disagrees with its assumption that the only option for smokers is to “quit or die.” As Morris observes: “If the FCTC is genuinely committed to the ‘right to health’ then it must listen to those who are taking control of the things that determine their health – and to those who are helping them to do so.

In other words, it should open itself up to participation by groups representing vapers, snus users, and companies producing these and other less harmful nicotine-containing products.”

Meanwhile, to address genuine conflicts of interest, Morris suggests that the FCTC should “open itself up to scrutiny.

That means, at the very least, permitting journalists to attend all sessions of COPs and technical committees. Better yet, the FCTC might livestream all its proceedings over the web.”

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PUBLICITY

September 19, 2016 #161

September 19, 2016 #161

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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September 19, 2016 #161