Caucasus Business Week #164

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October 10, 2016 #164

October 10, 2016, Issue 164 - www.cbw.ge

ECONO-MIX New Government should Care for Accelerating Economic Growth Paces

Business Non Alcoholic Beverages Industry Maintains Positive Trend

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Startups Itsik Moshe : Georgia should Have Glut of Startups Pg. 9

Whether Georgian Products Overcome Azerbaijani Restrictions

2017 State Budget Key Parameters Last week the 2017 state budget bill was submitted to the Parliament of Georgia. The document determines the 2017 forecast revenues by 8 715.0 million GEL, while the forecast tax incomes were fixed at 8 170.0 million GEL, that is 22.3% of total GDP. Under the submitted bill, in 2017 total amount of revenues and payments is fixed at 10 555.0 million GEL. State budget assignments marked 10 555.0 million GEL, including: budget funds – 9 520.0 million GEL, grants – 135 million GEL, credits – 900 million GEL. Total amount of state budget expenditures made up 8 787 million GEL, including: payrolls budget – 1 442.8 million GEL, goods and services – 1 105.6 million GEL; interest rates – 450 million GEL; subsidies – 300.4 million GEL; grants – 993.3 million GEL; social aid– 3 223.4 million GEL; other expenditures – 1 271.4 million GEL. In the 2017 budget, contrary to the 2016 budget, instead of 3% upturn, GDP growth is planned at 4%. According to the bill, GDP per capita will increase by about 600 GEL to 9 813 GEL.

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International Incoming Calls Extremely Rise in Value

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Tariffs of international incoming calls, both cellular and landline calls (the so-called city network), have considerably increased. The bottom margin tariff introduced by the Georgian National Communications Commission (GNCC) in 2012 is said to be the main reason for surge in tariffs, which demonstrate growing tendencies.

GLCC Law Firm is interested in electronic communications field and, for many years, it represents many companies engaged in transit of international calls. At the same time, GLCC protects their interests before administrative bodies and the court.

“Growth in tariffs minimized international calls to Georgia by more than 50% year to year. For example, in 2012 more than 41 million calls were registered every month. Pg. 11

2 GOVERNMENT

NEWSROOM Georgia Gets Green Light for EU Visa-Free Travel EU states have agreed to grant Georgian nationals visa-free travel to the Schengen zone, once new safeguards are in place to suspend the deal in case of abuse.

Georgia to Export 94% of Goods to China Without Customs Duties After the agreement comes into force, ships under Georgian banner will be able to transport cargo consignments to Chinese seaports without additional taxes and tariffs.

ECONOMY

Tbilisi Has the Cheapest Airbnbs in Europe Tbilisi has the cheapest Airbnbs in Europe, and also some of the cutest. This place, which was once a tiny theatre sleeps three people, and costs just £28 per night to rent.

Georgia to Produce Modern-Standard Locomotives The parties have already signed a due agreement. At the signing ceremony, Prime Minister Giorgi Kvirikashvili said that the project is of crucial importance for both Georgia and the Region’s economic development.

BANKING

EBRD Supports first Wind Farm in Georgia The EBRD has arranged a $22 million syndicated loan to the company Qartli Windfarm LLC for the development, construction and operation of the wind farm.

Galt&Taggart Submits Higher Economic Growth Forecasts than IMF The IMF new forecasts for global economic growth is pessimistic and makes up 3.1%, following slowdown in economic growth and demand, unexpected factors, including Brexit.

BUSINESS

$1.5 million Textile Factory to Open in Ajara Turkish businessmen are interested in developing textile production in Ajara. Representatives of Turkish company Igur Textile are visiting Georgia to receive information on the existing business environment in the country.

Lushnu Company Getting Ready to Launch Svanetian Salt Exports Negotiations are in final stage with one of the countries. The Customer is waiting for a specific certificate from the manufacturer to launch salt exports.

COMPANY

Natakhtari Fund will Assist 156 Adolescents in Acquiring Profession Natakhtari Fund presented the report on completion of the fifth wave of the fundraising campaign to the public.

Free Trade Agreement Negotiations with China Finalized

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ree Trade Agreement negotiations with China have been successfully finalized in a record-breaking 7 months, – relevant Memorandum between the Ministry of Economy and Sustainable Development of Georgia and the Ministry of Commerce of the People’s Republic China was signed at the Administration of the Government.

The first Vice Prime Minister, Minister of Economy and Sustainable Development of Georgia Dimitry Kumshishvili and Minister of Commerce of the People’s Republic of China Gao Hucheng signed the respective agreement. Prime Minister of Georgia Giorgi Kvirikashvili attended the ceremony.

Prior to signing the document, Prime Minister of Georgia and the Minister of Commerce of the People’s Republic of China

Gao Hucheng conducted a meeting and discussed one of the most important topics on its agenda – further development of bilateral cooperation.

A major, historic moment in terms of elevating trade and economic relations between the countries to a completely different stage that will stimulate business and trade in both states, – with these words Giorgi Kvirikashvili assessed the forthcoming signing the Free Trade Agreement with China. The head of the Government thanked the Minister of Commerce of China for his contribution in the successful termination of the negotiation process.

According to the Prime Minister, China has already become Georgia’s major investor. He also indicated that our country is proud to be pioneering in the South Caucasus in terms of

launching and finalizing free trade agreement negotiations with China in the record-breaking period of time.

According to the Parties, trade and economic as well as investment relations between Georgia and China are developing in full swing. The conversation also touched upon the growing trend of Georgian wine export.

It was indicated that based on the 8-month data of 2016, 3.5 million bottles of wine have been exported to China – respective number represents a 15% growth as compared to the last year.

Agreement between Georgia and China concluded within the frames of New Silk Road project – “One Belt – One Road” was also discussed. Respective document envisages cooperation in strategic fields, including transportation, energy sector, transit and logistics.

CBW Business Media Group to Issue Real Estate & Infrastructure Magazine in January

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he Real Estate & Infrastructure, a new magazine on the Georgian real estate and infrastructure topics, will be introduced to the Georgian market in the near future. The magazine will be issued by the Caucasus Business Week (CBW) business media group.

The Real Estate & Infrastructure English-language magazine will be published starting January 2017.

We decided to enter the new market segment, because corresponding demand has risen in the business sector and audience. It is necessary to satisfy this demand and provide adequate answers to existing questions. The magazine will be issued twice a year with 6 000-6 000 circulation each, David Baghashvili, the CBW media group marketer and the Real Estate & Infrastructure project manger, noted.

“We frequently receive requests from our audience to provide comprehensive information on real estate reali-

BUSINESS WEEK caucasus

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

October 10, 2016 #164

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

ties in Georgia, about which market player is reliable and which not. Consequently, we have seen the real demand on the market, but the current resource could not satisfy this demand. Therefore, we decided to develop this direction and issue a new magazine, an only edition in this market segment.

All major companies and investors note that market lacks for high-quality editions and it is timely to issue this magazine.

The magazine will not publish only advertising materials. It will also cover information-analytical issues. We have decided to make a good image-building edition. The idea has justified.

Our editorial policy turned out acceptable for everybody and development companies have approved it very much”, David Baghashvili noted.

The magazine will be distributed free of charge through the CBW distribution network.

“The Real Estate &Infrastructure will be supplied to all target audiences, including top class hotels, VIP departments

of airports, business chambers, diplomatic corps and business sector. Moreover, our edition will also reach real estate and infrastructure companies.

Because of importance of the magazine, high-ranking officials of the Georgian Authorities will receive and read the Real Estate & Infrastructure”, the project manager noted.

The magazine with 100 pages will be issued twice a year.

“The magazine will satisfy high-quality standards. Naturally, low quality cannot work on this direction. The Real estate & Infrastructure will have a very good design and high-quality paper. We also give priority importance to the content of the edition. We cooperate with very good and experienced companies and we must satisfy highest-quality standards. It should be noted initially we planned to issue a 60-page magazine, but following the current demand, we decided to issue 80-100 page magazine”, David Baghashvili said.

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

October 10, 2016 #164

PUBLICITY

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ECONO-MIX

New Government should Care for Accelerating Economic Growth Paces

Maros Sefcovic Vice-President of EU Commission

Southern Gas Corridor Excellent Example of New Energy Source

People all over the world are enjoying the sweet taste of Georgia-made alcoholic beverages thanks to increased exports to all parts of the globe. So far this year Georgia generated $126 million by selling wine, brandy, Chacha and other alcoholic beverages abroad.

Latest figures showed Georgian wine was becoming a sought after drink.

More than 32 million bottles of Georgian wine were exported to 50 countries in the first nine months of 2016, bringing $74.6 million back into the economy, said the National Wine Agency of Georgia.

Between January-September 2016 Georgia exported 35 percent more wine year-on-year (y/y), and generated 12 percent more revenue by selling 32,421,418 bottles of wine abroad.

The top five countries that imported Georgian wine in January-September 2016 were: Russia – 17,056,936 bottles China –3,852,245 bottles Ukraine – 3,457,028 bottles Kazakhstan – 2,535,163 bottles Poland – 1,633,514 bottles The National Wine Agency said wine exports increased to the European Union (EU), China and Georgia’s more traditional export markets.

Year-on-year exports of Georgian wine increased to: China – 154 percent (3,852,245 bottles) Ukraine – 61 percent (3,457,028 bottles) United Kingdom – 60 percent (67,522 bottles) Belarus – 51 percent (789,876 bottles) Poland – 47 percent (1,633,514 bottles) Estonia – 43 percent (485,688 bottles) Kirgizstan – 39 percent (163,966 bottles) Russia – 36 percent (17,056,936 bottles) Germany – 18 percent (223,862 bottles) Japan – 20 percent (134,808 bottles) United States – 5 percent (191,086 bottles) Latvia – 1 percent (841,098 bottles) Meanwhile export of Georgia-made brandy also increased to over six million bottles. Figures showed a 34 percent y/y between January and September 2016.

In this time Georgia exported 6,016,653 bottles of brandy to 16 countries, worth $13.6 million (12 percent more y/y).

Merab Janiashvili Economic Analyst

Employment mainly increased in the service field, where quantity of employed citizens in total statistics rose to 45% from 43% in 2014-2015

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fter the October 8 elections, a new parliamentary period will start. There is much probability that Georgian Dream will maintain majority of votes at the parliament and this consideration is confirmed by all inquiries and forecasts. Let’s overview the past 4 years in terms of economic indicators – what achievements our country has made and what challenges are relevant today.

In 2012-2016 many economic parameters have improved, but low economic growth is the main challenge and this factor is in direct relation with the living condition of our citizens. For example, in 20132016 Georgia’s averaged economic growth pace made up 3.3%. This figure makes the country a regional leader, but this indicator remains a very low achievement for a developing country. As to the last decade, in 2006-2015 Georgia’s averaged economic growth made up 5.1% and this indicator also makes our country a regional leader. In the same period, Latvia’s economic growth made up 1.8% on average, Estonia – 1.9%, Russia – 2.5%, Lithuania – 2.6%, Moldova – 3.6%, Turkey and Poland – 3.8%. At the same time, over the past decade, GDP per capita has increased from 4900 USD to about 10 000 USD. Despite similar upturn, Georgia is ahead of only Armenia and Moldova among European countries.

Moreover, our country has considerably improved positions in many international ratings and it occupies leading positions in them, including in terms of business doing simplicity (2016) Georgia ranks 24th, in the economic freedom index (2016) Georgia ranks 23rd, and according to the Global Corruption Barometer (2013), only 4% of inquired respondents confirm to have paid bribes and this figure makes our country one of the leaders in the world in this category.

We have serious advancements in the Global Competitiveness Index, where the country ranked 88th in 2012 and advanced to the 59th position in 2016. It should be also noted that Georgia has considerably improved positions in the rating in terms of property rights protection. For example, according to the 2011-2013 reports, Georgia deserved low rating in property rights protection field and it ranked 120th, because for many years property rights were violated.

However, in the 2016-2017 report, Georgia improved positions by 4 places in the rating and moved to the 54th position. However, the 2015 report was a breakthrough, when Georgia improved positions by 27 places and moved to the 58th position in terms of property rights protection. According to the business bribery risks (2014), Georgia ranks 11th in the rating.

In 2015 the unemployment index recorded the 12 years’ low. In 2015 the quantity of employed citizens exceeded 1.75 million persons. As a result, the unemployment indicators reduced by 12%. It should be also noted that employment has mainly increased thanks to private sector. In 2014 the private sector employed 441 000 persons, the figure rose to 479 000 persons in 2015. At the same time, in previous years 50% of the employed citizens were engaged in the agriculture sector, while in 2015 this ratio declined to 48.6% for the first time.

Employment mainly increased in the service field, where quantity of employed citizens in total statistics rose to 45% from 43% in 2014-2015.

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Georgia exports 32m bottles of wine, earns $74m

Georgia will Need 80-90 years to Come up with EU by Annual 3.3% Economic Growth

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The Southern Gas Corridor is an excellent example to a new source of energy for Europe, said Vice-President of EU Commission in charge of Energy Union Maros Sefcovic.

He made the remarks at the Inter-Parliamentary Meeting of the European Forum for Renewable Energy Sources (EUFORES). The Southern Gas Corridor is one of the priority energy projects for the EU. It envisages the transportation of 10 billion cubic meters of Azerbaijani gas from the Caspian region to the European countries through Georgia and Turkey.

At the initial stage, the gas to be produced as part of the Stage 2 of development of Azerbaijan’s Shah Deniz field is considered as the main source for the Southern Gas Corridor project. Other sources can also join this project at a later stage. As part of the Stage 2 of the Shah Deniz development, the gas will be exported to Turkey and European markets by expanding the South Caucasus Pipeline and the construction of Trans-Anatolian Natural Gas Pipeline (TANAP) and TAP.

October 10, 2016 #164

Over the past 4 years, besides many macroeconomic advancements in international ratings, as noted above, low economic growth is Georgia’s main challenge. As a result, the country still occupies the the last third place in terms GDP per capita among European countries. Economic growth particularly narrowed in 2015-2016. For example, Georgia’s economic growth pace in 2015 made up 2.8%. In the first half of 2016 the growth still remains weak for Georgia’s standards. Note that over the past 3 years the highest quarter economic growth was recorded in the 3rd quarter of 2013, when Georgia’s GDP rose by 7.6%. As to 2016, in the first quarter’s economic growth marked 2.6%, in the second quarter – 3%. According to January-August indicators, the Georgian economy grew by 2.8% and the country comes behind Armenia (3%) and is ahead of such countries in the region as Ukraine (-9.9%), Belarus (-3.9%), Russia (-3.7), Moldova (-1.1), Azerbaijan (1.1) and Kazakhstan (1.2%).

Georgia ranks 105th among IMF 190 member countries in terms of economic growth paces and 94th among the world’s 151 developing countries. In this respect, Georgia recorded the best indicator in 2007 – 9th place in global rating.

Quick economic development is of vital importance for Georgia. Currently, heavy economic situation is aggravated by tensions with Russia. Consequently, if we do not accelerate economic growth, the country will remain vulnerable to external enemies. Georgia has a developing economy and considerably comes back of EU countries. Therefore, it is necessary for us to achieve higher economic growth compared to developed countries to come up with them as soon as possible. For example, today (according to the 2015 indicators) Georgia has 8 times lower GDP compared to averaged indicator of Europe. EU’s annual economic growth makes up 2% on average. Therefore, Georgia has to attain at least 7-8% annual economic growth to attain the EU level. Even averaged 5% economic growth will enable Georgia to have twice lower economy than EU in 50 years. To come up with EU, Georgia’s annual GDP pace must be 7% and more.

7% annual GDP growth will enable Georgia to attain the current European level in only 40 years, and for example 10% upturn will enable the country to attain the EU level in 25 years.

Therefore, 3.3% upturn over the past 4 years makes the country a regional leader, but this is not sufficient to attain European level, because by this pace the country will attain EU in 80-90years.

Over the past 4 years Georgia was in a certain transient period because of change in power and the situation was aggravated by currency crisis and regional tensions, but our country has coped with all these challenges in satisfactory manner. Therefore, we should not lose the nearest 4 years by complaints about the past and fight with the United National Movement, because if Georgia fails to accelerate economic growth, in 20-25 years the country will be depopulated or will be absorbed by the northern neighbor. Therefore, the new government, despite its configuration (including coalition government) must make focus on quick economic development and must carry out efficient reforms.

“We hope that the reformation process will make Georgian business more competitive on EU market. Peculiarity of the ongoing reforms implies making investments and reaping results stage by stage. We provide prompt contribution and receive benefits later. This is the topic of discussions between EU and the business community.

We should comprehensively emphasize what benefits these reforms will bring”

Janos Herman EU ambassador to Georgia

October 10, 2016 #164

PUBLICITY

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GEORGIA-AZERBAIJAN

Whether Georgian Products Overcome Azerbaijani Restrictions Government of Azerbaijan has taken decision on increasing customs duties and restricting imports. The new decision will come into force soon and will be valid for two years. Government of Georgia assures that the decision will not affect Georgian products and exporters.

MARIAM KOPALIANI

eggs. The decision of government of Azerbaijan will make negative impact on Georgian companies, Uchumbegashvili said.

«Contrary to Georgian practice, government of Azerbaijan develops the domestic market and the country does not import either meat or chicken.

Azerbaijan cares for domestic production and has increased taxes and this is a reasonable decision and all normal countries practice similar approaches», Uchumbegashvili said.

In whole, the ratio of Azerbaijan in exports of companies is 7-8% and even this figure is very considerable for Georgian companies, he said.

“It is impossible to count customs tax in any other category, unlike VAT. These are lost expenditures. Therefore, tariffs will become uncompetitive”, Uchumbegashvili noted.

October 10, 2016 #164

“Negotiations with Azerbaijan were conducted on the level of memorandum. We have not launched production yet. It should be also noted that annual output of Azerbaijan is 11 million tons of cement, while annual consumption is only 7 million tons.

Therefore, Azerbaijan does not have much demand for imported cement”, Guberidze noted.

Berika winemaking company Azerbaijani restrictions will less affect Georgian winemaking companies, because Georgian wines are exported to this country in minimal volumes, LLC Berika director Lasha Revazishvili said.

However, it will be wonderful if everything proceeds due to the government’s promises. Otherwise, Georgian exports will considerably decline to Azerbaijan, he noted.

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zerbaijani officials have confirmed that changes will not concern Georgia, Deputy Economy Minister Genadi Arveladze said.

“We have concluded a bilateral and multilateral free trade agreement with Azerbaijan and this agreement is free of growth in similar imports tariffs.

Consequently, this decision will not affect Georgian products. We have consulted the issue with Azerbaijani colleagues and they have confirmed this circumstance”, Arveladze said.

According to Azerbaijani media agencies, customs duties on imports of several products will increase for a period of two years, including on meat products, poultry meat, egg, fruit, vegetables, nuts, juices, strong and soft drinks, including mineral waters, building materials – concrete, cement, ceramics and brick.

According to the new law, one kilogram of chicken meat will be taxed by 1 USD, 1000 chicken eggs will be taxed by 100 USD, 1 kg of cucumber will be taxed by 0.20 USD, 1 kg of filbert - by 0.40 USD, 1 kg of apple – by 0.30 USD, one liter of mineral waters - by 0.70 USD. Government of Georgia seems calm, but Georgian businessmen with entrepreneurial ties in Azerbaijan provide different assessments. A part of Georgian exporters forecasts contraction in revenues because of the mentioned decision, while another part assures that restrictions will only slightly aggravate the tax burden.

Tskali Margebeli company (Nabeghlavi) If these restrictions do not concern Georgian products, this will be wonderful. Otherwise, increased imports taxes will boost smuggling and distributor companies will try to deliver products to Azerbaijan bypassing customs procedures.

The ratio of Azerbaijan in the company’s exports is unimportant, but the decision will affect the company revenues anyway. In this case, our company may increase exports to other neighboring countries,

Svimonishvili noted.

“We will maintain exports in Azerbaijan, but the volumes will decline. It is important how Azerbaijani distributors will cope with the situation and what tariffs they will set. In general, imported water is expensive in Azerbaijan and higher prices may slow down the demand. We will maintain the existing tariffs, but the product price will rise in value in Azerbaijan.

We have communicated with our Azerbaijani partners, but they remain in waiting regime”, Svimonishvili noted.

Poultry Development Association of Georgia Despite statements by government of Georgia, the mentioned decision will negatively affect Georgian companies, Zurab Uchumbegashvili, head of Poultry Development Association of Georgia and Kumisi company, noted.

Georgia exports only breed chicks (broiler chicken) and incubation eggs to Azerbaijan, but the Azerbaijani market is closed for poultry meat and

Senaki Cement Factory (under construction) Azerbaijan is expected to increase imports tariffs on building materials, including on concrete, cement, brick, ceramics and asbestos. It is not desirable for our country, when Azerbaijan grows imports tax, Mindia Guberidze, director of Senaki cement plant, noted.

Following the free market principles, tax rate should be zeroed or minimized. Taxes should not become precondition for admitting or blocking products to the market. Only quality, prices, supply conditions and other indicators should be decisive in imports issues, Guberidze said.

As to cement production in Georgia and its impact on the company, the company had no plans for cement exports to Azerbaijan. Even if the company exports cement to Azerbaijan, no significant impacts are expected, he said. The new cement factory will make focus on Georgian market and Black Sea region countries, Guberidze added.

According to the new law, one kilogram of chicken meat will be taxed by 1 USD, 1000 chicken eggs will be taxed by 100 USD, 1 kg of cucumber will be taxed by 0.20 USD, 1 kg of filbert by 0.40 USD, 1 kg of apple – by 0.30 USD, one liter of mineral waters - by 0.70 USD.

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BUDGET

October 10, 2016 #164

Fitch Ratings: “Georgia continues to grow, overcomes external shocks”

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eorgia is continuing to enjoy strong governance indicators by regional and rated peer standards despite facing external shocks, says global rating agency Fitch Ratings.

A flexible exchange rate, strong growth in tourism and recovering remittances are contributing to the adjustment of the external sector to a shock stemming from the collapse in oil prices and its impact on trade with and remittance flows from CIS countries,” said Fitch Ratings While forecasting Georgia’s growth on a five-year average basis, Fitch Ratings expected growth to strengthen as the external environment improved, and as infrastructure projects supported the construction industry, although the import dependence of these projects will dull their impact on headline growth.

Growth has held up fairly well in the face of the external shock…Fitch forecasts growth of 3.2 percent in 2016, driven by reviving confidence, higher government spending, tourism and the start of work on a gas pipeline project. Corporate tax reform will bolster mediumterm growth, but offsetting fiscal measures may dampen output in the near term,” said Fitch.

The global ratings agency forecast Georgia’s Gross Domestic Product (GDP), Foreign Direct Investments (FDIs) and economy would continue to grow in the final few months of this year.

Georgia runs a persistently large current account deficit, forecast at 11.9 percent of GDP in 2016 compared with a peer median of 2.4 percent of GDP, although net FDI inflows are also well in excess of peers,” said Fitch Ratings.

The current account is forecast to narrow throughout the forecast period, as remittances and tourism pick up, but will still be close to 10 percent of GDP by 2018.

FDI inflows generally have a heavy import requirement,” it said.

Overall Fitch Ratings affirmed Georgia’s Long-Term Foreign and Local Currency Issuer Default Ratings (IDR) at ‘BB-’ with Stable Outlooks.

2017 State Budget Key Parameters State Budget Grows by 410 million GEL

tions include: social protection and pensions – 2 413.0 thousand GEL to finance social expenditures as part of the Georgian law on highland regions development; healthcare protection programs – 831.0 million GEL; medical facilities rehabilitation and equipment – 30.0 million GEL; The next year’s budget will also finance Hepatitis C diagnosis programs, including per-treatment examinations and monitoring of treatment process.

The state budget will finance this direction by 20 million GEL. Infrastructure

For the purpose of better internal and international integration of Georgia, it Merab Janiashvili Economic Analyst is of special priority importance to ensure general regional and infrastructural development of the country.

“Along with the tourism sector development, the country will become ast week the 2017 state macroeconomic parameters. In a regional center. Construction-rebudget bill was submitted the process of developing the 2017 habilitation of roads, power facilities to the Parliament of Geor- state budget bill, the economic and water infrastructure will remain gia. The document deter- growth indicator of a relevant issue for the mines the 2017 forecast revenues the current year was Healthcare and country, as well as regionby 8 715.0 million GEL, while the taken into account, as forecast tax incomes were fixed at 8 well as the next year’s social guarantees al development of the country; the government 170.0 million GEL, that is 22.3% of forecasts. Information occupy priority will continue working for total GDP. on the current year’s place in the improving the current Under the submitted bill, in 2017 economic tendencies 2017 budget bill. condition of internationtotal amount of revenues and pay- has been widely repThe mentioned al, domestic and local imments is fixed at 10 555.0 million resented in the state direction portance roads to boost GEL. State budget assignments budget annexes. The domestic cargo turnover marked 10 555.0 million GEL, in- next year’s fiscal and comprises and interconnection and cluding: budget funds – 9 520.0 mil- macroeconomic in- programs that Georgia’s role in terms of lion GEL, grants – 135 million GEL, dicators are planned are to ensure regional and international credits – 900 million GEL. Total by conservative ap- universal access cargo turnover and tranamount of state budget expendi- proaches and the 2017 to healthcare sit”, the 2017 state budget tures made up 8 787 million GEL, GDP real growth and bill reads. services for the including: payrolls budget – 1 442.8 GDP deflator prognowhole population, Ministry of Regional Demillion GEL, goods and services – 1 sis makes up 4%. velopment and Infrastruc105.6 million GEL; interest rates – In the midterm pe- improve the ture will receive 1 086.4 450 million GEL; subsidies – 300.4 riod, the real eco- quality of million GEL, including million GEL; grants – 993.3 million nomic growth prog- healthcare 663 million GEL for road GEL; social aid– 3 223.4 million GEL; nosis is around 4.5%, services and infrastructure developother expenditures – 1 271.4 million while GDP deflator is ment, 217.8 million GEL GEL. around 4%. Follow- ensure offering In the 2017 budget, contrary to the ing macroeconomic social guarantees for municipal infrastructure rehabilitation; 200.4 2016 budget, instead of 3% upturn, indicators, the 2017 to beneficiaries GDP growth is planned at 4%. Ac- nominal GDP volume based on existing million GEL for water supply infrastructure restoracording to the bill, GDP per capita makes up 36.6 billion needs tion and rehabilitation; It will increase by about 600 GEL to GEL, while its growth is also worth noting that 9 813 GEL. forecast by 2020 is expenditures for conplanned at about 47.7 billion GEL. structing highways have increased by Main Microeconomic Based on the existing macroeco100 million GEL up to 379 million GEL Parameters nomic prognosis, the 2017 consoliin 2017. dated budget’s tax revenues will be

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Macroeconomic stability and improvement of investment environment is one of the priority directions for Government of Georgia. Amid unfavorable economic trends in the world, maintaining and improving Georgia’s positive macroeconomic parameters is of crucial importance, because these parameters create essential preconditions for economic expansion and generating new job places.

Since the Georgian economy has been integrated in the global economy and depends on the global trends, it is of vital importance to carry out required measures for maintaining and improving healthy

8 850 million GEL, 24.2% of GDP. Healthcare and Social Aid Healthcare and social guarantees occupy priority place in the 2017 budget bill. The mentioned direction comprises programs that are to ensure universal access to healthcare services for the whole population, improve the quality of healthcare services and ensure offering social guarantees to beneficiaries based on existing needs.

Budget allocations for healthcare and social services make up 3 330.0 million GEL (31.5% of total budget payments). The mentioned alloca-

Education Education is one of the priority directions for the Authorities. High-ranking officials frequently confirm that the Government makes accents on developing inclusive education.

“Unbiased, transparent and efficient mechanisms will be created for maintaining and attracting qualified staff at education institutions on administrative, academic and other positions; unbiased and reliable statistics of the education system will be ensured, corresponding international practices and methodologies will be established, joint methodologies will be developed for

creating reports on performance and creating strategic plans of educational institutions, annual unbiased monitoring and appraisal of the education system will be carried out, publicity of corresponding documents will be ensured; education sector financing mechanisms will be improved for increasing its efficiency, access to education will increase, education quality will be improved, research potential of higher education institutions will be upgraded; rehabilitation and building of public schools will be continued, infrastructure of vocational schools will be developed”, the budget bill document reads.

Ministry of Education and Science will receive 1 025.0 million GEL, including: 609.0 million GEL for universal education and financing higher salaries of secondary school teachers (in September 2015 base salary increased to 355 GEL from 305 GEL, while this amount will rise to 405 GEL in April 2017), as well as to finance bonuses to teachers working in highland regions, under the Georgian law on highland regions development; 13.5 million GEL for financing vocational education; over 178.4 million GEL for financing higher education and research programs; 89.1 million GEL for developing infrastructure of education institutions; Agriculture “The main guarantee for agriculture development is a clearly determined agrarian and regional policy and growth in agriculture sector allocations several times; Financial resources for the agriculture sector development will be mobilized from the Georgian state budget and international organizations and loans and grants issued by donor countries, namely, investments (domestic and foreign).

The ratio of private investments will considerably increase in the agriculture sector financing structure stage by stage; the Agriculture Development Foundation will also operate; As part of the agrarian policy strategy implementation, land ownership issues will be resolved, the agriculture sector will be supported by services and raw materials, small and mediumsize farmers will receive cheap money resources, agrarian sector output will rise, as well as it profitability and competitive capacity. Revenues from agriculture sector will increase, modern system of agrarian education and science, consulting will be formed”, the 2017 budget bill reads.

Allocations for Ministry of Agriculture makes up 238.1 million GEL, including: 68.1 million GEL for melioration and irrigation system development; preferential agro credits – 42 million GEL; vintage support measures – 25 million GEL; covering liabilities and loans of agriculture equipment – 16 million GEL; agriculture cooperatives support measures – 5.4 million GEL; agro insurance support measures – 5 million GEL: As to other ministries and other programs, allocations are as follows: Ministry of Defense – 743.2 million GEL; Ministry of Internal Affairs – 585 million GEL; Ministry of State Security – 110 million GEL; Ministry of Corrections – 146 million GEL; Ministry of Energy – 121 million GEL; Ministry of Economy and Sustainable Development – 97.7 million GEL (including 19.7 million GEL for Produce in Georgia program); Ministry of Foreign Affairs – 105.6 million GEL; Ministry of Culture and Monuments Protection – 96.5 million GEL; Ministry of Justice – 65.6 million GEL; Ministry of Refugees and Accommodation - 85 million GEL; Ministry of Sports and Youth – 98.3 million GEL; Ministry of Environment and Natural Resources – 38 million GEL; Ministry of Finances – 85 million GEL; Allocations for regional projects foundation makes up 280 million GEL; Allocations for highland regions development foundations – 20 million GEL. Government’s reserve fund – 50 million GEL; President’s Reserve Fund – 5 million GEL.

8

PR

In PR Practical Efforts Bring The Real Results Caucasus Business Week offers you an interview with Nino Nodia (Zuzu), Pr manager of Voulez Vous, who spoke about her first job, work experience and shared some pieces of advice to younger generation. Nino has been working in perfumery sector for 15 years.

-What is your profession?

- I have graduated from the faculty of art at Ivane Javakhishvili Tbilisi State University.

-Your first job place.

-I started working at Channel 2 TV company. I had author programs – Climax, Dushashi. I have worked at the TV channel for 4-5 years.

- Your first success.

- Before my career in PR field, I was a producer for my friend Nato Metonidze as part of Art Imedi project.

At the same time, we made music for Gia Kancheli movie and theater as part of “Everybody Has Something to Remember” project. I think this project is the most important and successful ones for me and I am very proud of it. And we achieved this success thanks to the people with which we have worked, thanks to our music. I am proud of this project even today.

- The field where you will never work - I wold not work in the field, where

I am not competent, for example, in metallurgy, mining and chemical sector. I will not work in any field without deep knowledge and skills.

And it is difficult to study something new in my age.

- Why or how have you taken decision to take efforts in PR? Did it happen by accident or did this field attract you from the very beginning?

-To be frank, I have been working for Voulez Vous for more than 15 years.

I found this job place at JOBS.Ge vacations web portal. This may seem unbelievable, but this is true. My friend Eka Enukidze called me and told me that Voulez Vous was seeking a manager. When I went to the Interview, I found that they needed a brand manager. They learned that I had experience in show business, I was a famous person and they offered this position to me. This was a certain experiment. We started cooperation and I believe this cooperation is success.

‘Special education is very important and necessary for success. However, I think practical efforts bring real results. I do not have special knowledge in this field, I have not attended special courses.

I have achieved all this thanks to my intuition, my friends.

Moreover, when I do something, I study the product and its pros and cons, because I must be just before myself definitely.

When I study the product, I supply it to the consumer in the form that I would like to have personally,

October 10, 2016 #164

‘If not perfumery, I would Be Editor for Leading International Fashion Magazine’ - What factors make a person successful in your field?

- As a rule, everything in Georgia is special. Therefore, it is necessary to have good circle of friends and close people, because when you do this business, you have to get in touch with many fields. Therefore, based on the Georgian set of mind, it is necessary to have many friends in any field to resolve the issues as soon as possible.

This is an additional mechanism to make PR successfully in Georgia.

Special education is very important and necessary for success. However, I think practical efforts bring real results. I do not have special knowledge in this field, I have not attended special courses. I have achieved all this thanks to my intuition, my friends. Moreover, when I do something, I study the product and its pros and cons, because I must be just before myself definitely. When I study the product, I supply it to the consumer in the form that I would like to have personally. Therefore, I always consider issues from the position of a consumer.

- Is PR field perceived and understood in its classic meaning in Georgia?

- There are certain standards in developed countries, written laws, but the Georgian spontaneous character also has its charm. Frequently, spontaneous and unplanned decisions bring better and more natural results.

- If not PR field, which field would you work in?

- I like fashion very much. Therefore, if not perfumery, I would be an editor for one of the good international magazines. I like clothes and dressing themes very much, maybe even excessively. I am an art critic by profession and it may be surprising, but my diploma was “Development of Ornament Line in Christian Lacroix Art”. It was very difficult for me to write this work, because no corresponding literature existed in that period and even the Internet was innovation.

-What benefits do you receive from the company where you work? What makes your job place interesting?

- The company where I work is my second home, in practice. I feel very comfortably there. It is wonderful that my directors always have been friends rather than superior managers. This factor also creates comfort for me, because my director is a very open-minded young person with family, who knows all details that may arise before a women, mother, wife. Therefore, our relations are based on human principles and we also try to justify expectations.

- Where do you see yourself after 20 years?

- To be frank, I am content with this segment. Without this field, I would work as an editor for a fashion magazine.

9

STARTUPS

October 10, 2016 #164

‘We had only $10 left for the week, and the prospect of a large investment in the near future would make living on pennies more bearable’

When You Say No to an Investor With Only $10 Left in Your Pocket The conversation we had went well, our COO and CTO thought. It was 2014 and we’d been working on our start-up topishare for about 6 months, already having several investors running after us. Our first meeting, where we ‘felt the waters’, seemed like a great opportunity to increase the inflow of cash to accelerate building our product.

But I cut the meeting short and told him we weren’t interested.

My co-founders were shocked. We had only $10 left for the week, and the prospect of a large investment in the near future would make living on pennies more bearable.

And I understood what they meant. But I stood by my decision. Because raising funds is like getting married, you can’t just share your bed with everyone.

After our first meeting, we’ve had many different investors, both angel and VC, wanting to invest in our start-up.

With one we were very close to sealing the deal, until I decided to pull the plug when I learned he actually did not share our vision and wanted to sell our users’ data to third parties for profit.

And that’s what you should know, finding the right investor that understands not only your product, but also your vision and your goals, is very important.

It determines the future of your start-up, the future of your baby.

Looking back at that first meeting I know that everything happens for a reason.

One and a half year later we are continuing to invest in our start-up.

We have been very successful, and moved our start-up to Georgia.

We are growing every day, mostly organically, having hired four very qualified employees.

Right now it’s the right time for us to plan a

Hila Peled CEO of Topishare

‘marriage’ with an investor, as we’ve found the ‘golden egg’: a way to expand fast globally without any major costs.

We’ve agreed on several strategic partnerships and are certain we’ve created a place online where everyone is equal.

As part of this we are planning to share our success through an innovative approach So with 10 dollars left in our pockets we left the meeting back in 2014.

The investor came running after us, offering us a ride back to our apartment. But I decided to spend half of our last dollars on a taxi to get back home. And I know I made the right decision.

Georgia should Have Glut of Startups DAVID BAGHASHVILI

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overnment of Georgia should provide efficient support to Georgian startups definitely, otherwise their development is unimaginable, Itsik Moshe, head of Georgia-Israel Chamber of Business, noted.

In his interview with the Caucasus Business Week (CBW) Mr. Itsik talked about the Israeli experience and noted that in 1990s the government of Israel set up special “Risk Foundation” for developing startups, while now there are about 200 foundations in Israel and the government does not interfere in their operation.

There are several factors that should be satisfied for promoting startups: a certain amount of finances, timing in much proportion, good team, idea and business model, the president of the Georgia-Israel Chamber of Business, noted.

-What is the main precondition for making startups successful?

-Neither idea nor money is decisive for startups. You should be proficient in timing and take a decision to become a country of startups.

-Who should finance startups - Government or the business sector should be also involved?

-In Georgia the business sector cannot launch startups. There are many reasons for such inference and, therefore, it is desirable to share the

real experience. All international companies find it difficult to get adjusted to Georgian business, while it is useless to establish their methods in Georgia. And startup is an only field, where the Israeli experience may be exactly copied.

Israel started developing startups in 1990s by the government’ s experience. The Authorities of Israel created the so-called Risk Foundation and started financing all good ideas. The foundation used to hold 50% ratios, assist in management, sales of product. 50% of revenues were taken by the foundation and then it used to withdraw from the business. And at the next stage the business sector was joining the startup. Today there are about 200 similar foundations in Israel and the government does not interfere any more.

- We know that Israel pays much attention to startups.

What about the business sector’s interest?

- In Israel all successful companies strive for financing startups, because this is prestige and a chance for making profits. In 2015 this process reached its peak in this sector.

1400 new startups were created.

400 companies attracted 3.5 billion USD and 69 companies were sold for 5.41 billion USD. - Over the past years many startups were launched in Georgia, including Startup Georgia that

is trying to develop the sector thanks to considerable financial support. But besides the already financed projects, there are many other people, who have certain ideas and who try to create new products in the various fields and to develop the existing ones. Besides the government resources, there is the need of other resources too. What is the alternative if the Georgian business sector does not show interest in this direction?

-The business sector joins the process, when the successful field appears. The same will happen in case of startups too if it is developed by support of the state sector.

-How important is the development of startups for the country and in general, why should we support development of this field?

-In Israel startups of about 5-7 billion USD are sold every year. This is the field that does not need either industry or investments or plants.

- What is your position, as a businessman, towards startups?

Which field are you interested in? Do you have experience of relation with young startupers?

-As part of Israel-Georgia cooperation, we have formed a format that includes promotion of startups and sharing of the Israeli experience.

Our activity is a startup startups, in practice. Several companies have already entered Georgia thanks to us and they work in this field. This is not business for us.

- Several advice that you would give to startupers.

- Neither money nor idea is decisive for startups, but it is important to know the problem, proportions for adapting ideas. The following correlation of factors is required for startups: Timing – 30%, Team - 23%, idea – 20%, business model – 17% and financing – 10%.

-How good and appropriate country is Georgia for startups?

-Lack of financial resources retard quick development of the country, but Georgia has human resources, talented people and this is sufficient to boost startups and the whole society will engage in this process.

10

BUSINESS

October 10, 2016 #164

New Georgian Whiskey JIMSHER to Appear on Market in New Year Period The first Georgian whiskey JIMSHER will appear on the Georgian market by the New Year. The new Georgian beverage was developed by Jimi Chkhaidze. The three new varieties of whiskey tells entirely new history with Georgian accents, Jimi Chkhaidze said. JIMSHER whiskey is made of Georgian cereals by traditional whiskey technology. At the presentation three varieties of whiskey will be introduced: Whiskey – traditional Saperavi from Barrel; Whiskey – distilled and aged in Tsinandali Barrel and Whiskey from Georgian brandy barrel. Design of the beverage bottle and label was created by Georgian designer Zviad Tsikolia. The first Georgian whiskey will be sold on Georgian and exports markets.

BANK

RESEARCH

PASHA Bank Participated SIBOS Geneva – Banking Seminar organized by SWIFT

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global financial community to debate and collaborate in the areas of payments, securities, cash management and trade. People who work in financial markets around the world participate as exhibitors and attendees and discuss issues relevant to the financial industry.

During one week, SIBOS brings together some 7,000 decision makers and topic experts from financial institutions, market infrastructures, multinational corporations and technology partners. With half a dozen conference tracks, a hundred speakers and as many conference sessions, nearly 200 exhibitors, and plenty of networking events, SIBOS is the place to do business and collectively shape the future of the financial industry.

“PASHA Bank was traditionally presented at SIBOS

ASHA Bank participated in SIBOS (SWIFT International Banking Operations Seminar) for the seventh year in a row. This time the seminar took place in Geneva, Switzerland.

PASHA Bank traditionally represented three countries: Azerbaijan, Georgia and Turkey. The Bank provides regional corporate and investment banking services to large and medium-sized enterprise.

Therefore it attracted high interest among the attendees for partnership through interbank financial instruments.

SIBOS is an annual banking and financial seminar organized by the Society for Worldwide Interbank Financial Telecommunication in various cities around the world. Started out as SWIFT international banking operations seminar, it has grown into a premier business forum for the

NEWS

HEALTHY NUTRITION

Babuatsvera: New Startup with Creative Name and Handmade Crafts

Chaqafutlet – Chaqafuli as Croquette and Katy&Acho Cooking Project

Babuatsvera (Dandelions) is another creative startup, which makes handmade crafts, jewelry, accessorizes and book marks. Company uses polymer clay as a working material. Startup.ge has talked with founder of Babuatsvera Mariam Elisashvili.

KULA Founder to Launch Production of Tinned Georgian Traditional Dishes This year the founder of KULA cannery will open another plant to produce various tinned products. Geo Concentrate company will manufactures tinned Georgian traditional dishes.

The company director general Vano Goglidze told the Business Contract that the cannery will produce tinned Chaqafuli, Khashi, Chashushuli.

Katy&Acho Cooking is a video project by Archil Zambakhidze and his spouse Ketevan Papava. They launched the project in 2014. Archil is a lawyer by profession, Keti is an economist and both of them work by profession. However, love of culinary has inspired them to develop a very interesting project. They organized a studio in the kitchen and started shooting video clips due to the existing recipes and invented new ones. Their menu comprises such original names as: Chicken Hangover, Chaqafutlet, Boldog and so on. In a short period, video clips attracted hundreds of gourmands. They were shooting cooking process without doubles, despite neither Acho nor Keti have passed special trainings in culinary. Anyway, their video culinary clips have deserved confidence in audience. Love of culinary and adherence to Jamie Oliver activities led the couple to NGO (Food Revolution Community). They wrote to the organization that they wanted to become the organization members and foster dissemination of healthy food ideology.

In response they received a questionnaire, they filled it out and became official envoys of the organization in Georgia. They started shooting videos and preparing monthly articles and fulfilling various assignments after that. “Joy is our style and we make joyful videos. Culinary is our hobby. We want to deliver our message to everybody that it is not necessary to be a chief to make yummy dishes and there is nothing difficult to make delicious meals. On the contrary, this is simple and even necessary!

Health of ours and our children depends on ourselves and we should not let health of anybody to worsen by Junk Food. We should receive maximally healthy and clean food. For example, hamburger is healthy, but not at fast food restaurants, but at home. One of our slogans says: You Are What You Eat!” Archil told us. The couple has also published a book named as “Culinary as Hobby”. The book includes 33 delicious recipes.

The book presentation was held at Lisi Lounge on September 21, where Keti and Archil prepared dishes on the spot. The main advantage of the book is that each recipe indicates full time for cooking and expenditures and this factor considerably simplifies the guardsman’s mission.

Here we also introduce a joyful video, where the couple cooks Chaqafuli in he form of Croquette. The couple has named the dish as Chaqafutleti.

with its own stand among such banks as Barclays, Deutsche Bank, Citi, Raiffeisen Switzerland and others. We are happy to be able to apply the experience we gained at SIBOS and to share it all with our clients through our services,” commented Shahin Mammadov, CEO and Chairman of Board of Directors at PASHA Bank.

“We have long-term relationships with our clients and we try to implement contemporary international finance tools to ensure that they can conduct their business comfortably in Georgia and abroad. Our strategic partnerships with major international banks help ensure our clients get the best service and support from strong financial institutions wherever they are doing business around the world,” Mammadov added.

Non Alcoholic Beverages Industry Maintains Positive Trend The market of nonalcoholic beverages maintains positive trend in Georgia. The market has grown by 10% in 2015 compared to 2014, the report published by GAMMA marketing research agency, based on the retail trade audit, reads.

The research is being conducted in 8 cities since 2007. The ratio of various categories of nonalcoholic beverages in 2015 is as follows: sulphuric soft drinks (CSD) ranks first with 49.5% ratio in total sales, gasified mineral waters (25.5%), spring waters (15.5%), cold tea (2%), natural juices and nectars (5.5%), other drinks (2%).

According to statistics, in 2014one person consumed 77.5 liters of nonalcoholic beverages, while the figure rose to 85.5 liters in 2015. The indicators have increased thanks to increased consumption of spring water and cold tea in 2015.

On sulphuric soft drinks market, Coca-Cola was leader with 49% ratio, Natakhtari (Efes-Georgia) was second with 17%, Georgian Beer Company (Zedazeni) is third with 12%, Castel Georgia is fourth with 4% and other ones – 6%.

It should be noted that the soft beverages market is recording positive tendencies in 2016 too.

Georgia as a Boutique Georgia is a miniature country. With an area of just 69,700 sq.km. it is less than 9% of the size of its neighbor Turkey, and only 4% of Iran

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

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n size it is comparable with the other countries in Transcaucasia. But that is where all other comparisons end as, looking closer, the interested observer comprehends the natural and climatic variety concentrated in this patch of land. The west of the country is in the northern part of a sub-tropical zone, while to the east the fertile earth is replaced by desert. At the same time thanks to vertical zoning all of the landscapes of the European continent are present here — from desert and semi-desert through the humid subtropical marine zones to alpine areas and beyond to eternally snow-covered lands. The soil in Georgia ranges from tawny grey and saline semi-desert in the dry steppe and temperately damp woodlands to the terra rossa and podzol soils of the humid subtropical zones and the high, alpine mountain meadows. But all this is in cross-section in a relatively small area.

There is no less variety for the tourist in Georgia with history and religion, ethnography, extreme pastimes and pastoral life all represented. In other words, our little country of Georgia is a showcase country in many ways, with a generous display of nature and climate, history, religion, ethnography and agriculture.

So what conclusions can we draw from the obvious and familiar concept of variety described above relating to the economic development of the country? From the point of view of strategy, not looking at the historic or economic legacy, or the need to solve tactical tasks dictated, perhaps, by social problems or election campaign populism. Purely from the point of view of strategy, niche products must predominate in the Georgian economy. Those unique and expensive (with a high value added), ecologically pure, one-of-a-kind products which it is impossible or too difficult and costly to procure in other countries.

Whatever the initiatives in Georgian agriculture you can be sure of one thing — it is useless for the Georgian farmer and agricultural worker to strive on the international mass-produced agricultural markets for a significant “piece of the action”. The area under vine in Spain, China or France is dozens of times larger than the whole of Georgia (including its mountains and deserts) which means they can employ the most up-to-date technology.

11

OPINION

October 10, 2016 #164

Potatoes from Egypt, Israel or Morocco will always be cheaper and better than those from Bolnisi.

Gurdjaani peaches cannot compete with Spanish ones for price and quality. Western Georgian citrus fruits lose out to their Chinese counterparts. Does this mean, then, that Georgian products have no place in world markets, and that orienting Georgian agriculture toward the export market is an unprofitable dream? Not at all!

But the Georgian agricultural products must be for niche markets.

If it is wine, it must be boutique wine, from quality grapes grown on a small family farm, in a limited bottling and at a relatively high price. If potatoes, they must be organic potatoes. Basically, all organic products are niche market products. Back in 2012 Georgian agriculture had a great opportunity to use their situation to reorient towards growing organic products: for a number of years Georgian farmers did not use fertilizer or additives in the soil because they could not afford it. Organic products can only be grown in soil which has not seen such additives for three to five years (depending upon the specific requirements of various countries). But in the end a different agri-policy was chosen and the farmers started to increase yield by using chemical additives with all of the subsequent consequences. Now, as far as I know, organic products are not a Georgian export. But there are some small initiatives to grow them for personal consumption. Nevertheless, without a shadow of a doubt, organic products are the future for Georgian agriculture.

Georgian honey is another example. It can’t compete, whether by price or volume, with the major international honey producers.

But it can and must use its unique competitive edge. Giorgi Kepashvili is a successful exporter who tells me that of the 54 types of soil which exist worldwide, 49 are represented in our country! Consequently, 3/4 of the honey-producing plants distributed here in our tiny Georgian homeland do not grow anywhere else in the world in such concentration. Furthermore, very often honey is gathered in the high alpine regions where technogenic influence on the environment is small to non-existent.

Here it is possible to collect unique variegated (polychromatic) honeys from a variety of plants which in the world market are worth ten times more than single variety (monochromatic) honey.

Georgia may become (and is becoming, on the quiet) a place to grow new products with high added value like soft fruits. In recent

years bramble and bog whortleberry plantations have become more popular. I was recently lucky enough to attend a seminar on the theme of soft fruit in Gurdzhani where the farmers expressed an active interest in the new prospects, and the state emphasised its readiness to assist.

Let us now look at tourism. Can Georgia develop mass-market beach-style tourism and compete with Antalya, Thailand, Croatia, Montenegro and other world-class resorts? Of course, development is possible - but competing is not! Batumi in high season is the exception rather than the rule.

And tormented Ureki, turning itself from a potentially unique health resort with its black magnetic sands into a cheap and

There is no less variety for the tourist in Georgia with history and religion, ethnography, extreme pastimes and pastoral life all represented.

In other words, our little country of Georgia is a showcase country in many ways, with a generous display of nature and climate, history, religion, ethnography and agriculture

overcrowded popular resort for the local population and tourists from the nearest Transcaucasian countries is the rule rather than the exception. Georgia’s task is also a niche tourism: health & spa resorts, extreme sports, historic tours and pilgrimages, ethno- and agro-tourism. In conclusion I’d like to add two things. In my view, Georgia as a niche or boutique country, must eschew gigantism even if the ecological, landscape and historic components of the new projects feasibility studies are thoroughly studied. It doesn’t matter whether the subject is a vast hydro-electric station, an ultra-contemporary steel works or a seven-star skyscraper hotel in the centre of Tbilisi old town.

And finally, any strategy for Georgia’s economic development must exclude the destruction of the “boutique” economy. There is no contradiction in this argument: certainly the most modern transport infrastructure can be fitted into the “China shop” that is the Georgian niche economy. But the latter has to be treated with the utmost respect.

International Incoming Calls Extremely Rise in Value Tariffs of international incoming calls, both cellular and landline calls (the so-called city network), have considerably increased. The bottom margin tariff introduced by the Georgian National Communications Commission (GNCC) in 2012 is said to be the main reason for surge in tariffs, which demonstrate growing tendencies

GIORGI KHELADZE

GLCC Law Firm is interested in electronic communications field and, for many years, it represents many companies engaged in transit of international calls. At the same time, GLCC protects their interests before administrative bodies and the court.

“Growth in tariffs minimized international calls to Georgia by more than 50% year to year. For example, in 2012 more than 41 Irakli Gaprindashvili million calls were registered evManaging partner for ery month, while, currently, the GLCC legal company figure makes up 14 million calls and this number declines day by day.

Introduction of temporary regulations in March 2012 was inspired by research work conducted under the aegis of GNCC. The research works has showed negative balance between domestic by the Communications Comand foreign operators in terms mission in 2012 have lost their of payments. Namely, more initial function for preventing money was withdrawn from the negative market tendencies. domestic market as compared One detail should be also taken to inflows to the country”, Irakli into account. In the communicaGaprindashvili, managing part- tion sector, the market tendenner for GLCC Law Firm, noted. cies have proved that introducNote that for the purpose of re- tion of regulations and adding solving the existing situation, tax burden on it have, in practice, the commission has preferred minimized international calls to introduce temporary regula- traffic from the market, however, tions and stimulate and promote these calls have not disappeared. the market in this way. As a re- They were just removed from sult, the GNCC determined the official statistical and financial bottom margin tariff for inter- indicators, and the money curnational incoming calls and set rent that was to remain on the 0.1 USD on international cellular domestic market and enter the incoming calls and 0.05 USD on state budget in the form of an exlandline calls. cise tax, is hidden through variThe mentioned regulations ous schemes and it is impossible changed several times and, at this to control these schemes at this stage, the price of international stage, regretfully. incoming calls makes up 0.25 The fact that major influential USD for domestic influential op- operators require bank guaranerators and 0.16 USD for smaller tees, deposits or advance paydomestic operators. Besides the ments in exchange for making mentioned regulations, in 2015 international calls through their GNCC also intronetworks, adds duced excise tax “Consequently, heavier burden on termination of onto small cominternational calls, they ignore panies operating by making amend- introduced in the electronic ments to the Geor- excise tax and communications gian tax code. As irreversible field. These rea result, the tariff quirements are made up 0.15 GEL damage is very heavy for on cellular calls inflicted to small operators and 0.08 GEL on domestic market amid the abovelandline calls per and small and mentioned high minute. tariffs.

The current mar- medium-sized Experts assert that ket realities, in- operators” the current situacluding extreme tion on the Georcontraction in gian telecommuinternational incoming calls, on nications market have led several the one hand (from monthly 41 small and medium operators to million per minute to 14 million) suspending operation. and growth in the so-called black «It is impossible for them to opertraffic, have showed that intro- ate in similar market conditions duction of regulations has in- and maintain business profitabilspired certain companies on the ity», the GLCC managing partner market to use various schemes noted and added that it is necesto conceal incoming calls and sary that GNCC control the mensell international incoming min- tioned issue more strictly and efutes cheaper by ignoring the ficiently. Namely, he urges GNCC mentioned regulations so as to to introduce new and stronger receive higher profits and rev- regulations for the network enues, GLCC Law Firm noted. owner operators to recover the “Consequently, they ignore intro- market and take efficient steps duced excise tax and irreversible on behalf of all operators or redamage is inflicted to domestic move the existing temporary market and small and medium- regulations for equalizing the sized operators”, Irakli Gaprin- international and domestic calls dashvili said and noted that the that would be a logical solution temporary regulations adopted from the existing situation.

12

PUBLICITY

October 10, 2016 #164

WORLD NEWS

October 10, 2016 #164

13

Quotes

“ “The initial capacity of the new pipeline will amount to 23-25 million tons per year with the possibility of future expansion to 56 million tons.”

I realized if you can change a classroom, you can change a community, and if you change enough communities you can change the world

”

“This has been much more rapid than anticipated and demonstrates political support for the agreement.”

Erin Gruwell

Azerbaijan, Kazakhstan Plan to Lay New Oil Pipeline

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zerbaijan and Kazakhstan are planning to lay new Eskene-Kuryk-Baku oil pipeline with a length of 739 kilometers, according to an article by Azerbaijan’s Energy Minister Natig Aliyev, published in the country’s official press Oct. 6.

The minister said that Kazakhstan has huge proven reserves of hydrocarbons, which account for 5.5 billion tons of oil and 3 trillion cubic meters of gas.

“This makes it possible for Kazakhstan to produce 33.6 billion cubic meters of gas and 80 million tons of oil per year, however, the country has no guaranteed independent, reliable and secure oil export route except the Baku-Tbilisi-Ceyhan (BTC) pipeline,” reads the article.

Capacities of Tengiz-Novorossiysk, Atyrau-Samara, Atasu-Alashankou pipelines and the route of the Caspian Pipeline Consortium (CPC) are insufficient to meet the growing export potential, according to the article.

Aliyev said that considering the capacity of these routes and the volumes of export planned to be

achieved, Astana has focused on the Kazakhstan Caspian Transportation System (KCTS).

“The KCTS envisages construction of Eskene-Kuryk-Baku pipeline with a length of 739 kilometers,” the minister said in his article. “The feasibility study of the Eskene-Kuryk section of the pipeline envisages construction of an oil pumping station at the Tengiz field, Tengiz-Oporny-UzenAktau main oil pipeline, an oil terminal and a new port in Kuryk village, as well as reconstruction and expansion of the port in Aktau city.”

“Construction of this pipeline will enable Kazakhstan to export its oil to ports in Georgia and Turkey,” the article reads. “The initial capacity of the new pipeline will amount to 23-25 million tons per year with the possibility of future expansion to 56 million tons.”

The KCTS must ensure the export of Kazakh oil to international markets mainly from the Kashagan field (second and third phase) via the Caspian Sea, through the Baku-Tbilisi-Ceyhan pipeline and other oil transportation systems both in Azerbaijan and other transit countries.

Japan’s IHI to make compressors in Turkey

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HI will become the first Japanese company to establish a factory for compressors in Turkey, which it sees as a base for exporting the machines to Europe, the Middle East and other growing markets.

The Tokyo-based heavy industry group will partner with Turkish industrial machinery maker Dalgakıran Makina on the joint-venture plant.

IHI aims to begin production there in the fiscal year starting April 2018 and reach annual output of about 200 compressors in fiscal 2021, according to executives.

The joint venture, to be formed as soon as this year, will be 51 percent owned by IHI and headed by a transplant from the Japanese company. It is expected to have a staff of roughly 60.

Around 1.5 billion yen ($14.4 million) in capital spending is planned.

Dalgakıran has a presence in Germany, Russia and other markets.

Impellers, gears and other core components will be made in Japan by IHI. Less-critical parts are to be procured from local and other sources.

Toyota Motor, Honda Motor, Isuzu

Motors, air conditioner maker Daikin Industries and other Japanese manufacturers already have factories there.

Mitsubishi Electric plans to begin A/C production in Turkey in 2018.

IHI will market its Turkish-made compressors to foreign manufacturers as well as fellow Japanese ones. It also makes compressors in China.

IHI has strength in small and midsize compressors. Its mainline turbocompressors equip factories in industries as varied as steel and food, supplying compressed air for powering machine tools, applying paint and carrying out other tasks.

Automotive turbochargers, an offshoot of compressor technology, have grown into a business that generates a tenth of IHI’s sales.

The Turkish investment forms part of IHI’s plan to spend about 10 billion yen on equipment and research for its rotating machinery segment, which includes compressors, in the three years from fiscal 2016. By fiscal 2018, the company aims to raise this segment’s sales to 60 billion yen, 20 percent higher than last fiscal year.

Azerbaijan to connect air spaces of Europe and Asia Azerbaijan Airspace Supervision & Efficiency Centre (ASEC) will be built at Heydar Aliyev International Airport. The relevant agreement was signed by CJSC Azerbaijan Airlines (AZAL) and French company Thales, AZAL said Oct. 6.

The project will be implemented within the framework of the implementation of air traffic management system (ATM) and air traffic flow management (ATFM) in collaboration with Eurocontrol.

Azerbaijan Airspace Supervision & Efficiency Centre at Heydar Aliyev International Airport will be a key center for planning of air traffic flow between European Central Flow Management Unit (CFMU), located in Brussels and Air Traffic Flow Management Center, located in Singapore. The fast growth of the Asian and Chinese markets, as well as the strategic position of Azerbaijan contribute to growth in both internal and transit air traffic, and therefore, our country is assigned an important role in air flow management throughout the region. Smooth implementation of ICAO Global Air Navigation Plan requirements will have a positive impact on air traffic flow growth in the future.

Yerevan apartments have become considerably cheaper in USD According to official data, sales and purchases of apartments in Armenia’s capital city of Yerevan have increased by 11 percent in August, on an annual basis. That is to say, consumer demand has become more active. But, at the same time, many maintain the opposite. As per a Yerevan realtor, the number of apartment buyers is less than last year. According to the same official data, the market value for one square meter of the apartments in Yerevan has increased somewhat in one year. As per the aforementioned realtor, however, there is a major decline in prices, in terms of the US dollar (USD). During this period, the USD consolidated its position 1.3 times in Armenia. For that reason, despite some rise in official prices in terms of the Armenian national currency—the dram, apartments in Yerevan have become considerably cheaper in USD.

Paris Climate Agreement to Take Effect Nov. 4

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he landmark Paris agreement on climate change will enter into force on Nov. 4, after a coalition of the world’s largest polluters and small island nations threatened by rising seas pushed it past a key threshold on Wednesday.

U.N. deputy spokesman Farhan Haq said late Wednesday that the European Union and 10 countries deposited their instruments of ratification on Wednesday. The percentage of emissions they account for topped the 55 percent threshold needed for the treaty to take effect, he said.

Haq said the 10 countries were Austria, Bolivia, Canada, France, Germany, Hungary, Malta, Nepal, Portugal and Slovakia.

“I am delighted to announce that today the Paris Agreement will cross the second and final threshold needed for entry into force, and will enter into force on 4 November 2016,” Ban said in a statement issued from Europe. “Global momentum for the Paris Agreement to enter into force in 2016 has been remarkable. What once seemed unthinkable is now unstoppable. “ The deal takes effect 30 days after 55 countries, accounting for at least 55 percent of global emissions, have adopted it. Sixty-two countries had done so as of Tuesday but they accounted only for about 52 percent of emissions.

A U.N. website said that as of Wednesday afternoon 73 of the 197 parties to the treaty, accounting for 56.87 percent of the world’s greenhouse gas emissions, have deposited their instruments of ratification.

The Paris agreement commits rich and poor countries to take action to curb the rise in global temperatures that is melting glaciers, raising sea levels and shifting rainfall patterns.

It requires governments to present national plans to reduce emissions to limit global temperature rise to well below 2 degrees Celsius (3.6 degrees Fahrenheit).

While the targets in the agreement are not legally binding, the treaty

does require countries to report on emissions and their progress on reaching the goals in the national climate plans they submitted to the U.N. The countries are also required to maintain those plans, update them every five years and to pursue measures to implement their stated goals.

“It’s clearly a momentous moment in terms of global action on climate change,” said David Waskow, international climate director at World Resources Institute. “This has been much more rapid than anticipated and demonstrates political support for the agreement.”

The accord, which was adopted by consensus on Dec. 12, 2015, has entered into force at what is considered record speed for international diplomacy, reflecting a sense of urgency in the fight against global warming and a desire to seal the deal before Ban and Obama leave office.

Democratic presidential candidate Hillary Clinton supports the accord, while Republican Donald Trump opposes it.

International momentum had been building to ensure that the deal could enter force before the next U.N. climate conference, which starts Nov. 7 in Marrakech, Morocco.

Morocco’s Ambassador of Multilateral Negotiations Aziz Mekouar said with the treaty entering into force Marrakech will now host the first Conference of Parties to the Paris agreement.

“Last year, it was an historic event,” Mekouar said, referring to the conference where the agreement was first adopted. “This year, it’s even more of an historic event.”

Michael Oppenheimer, a professor of geosciences at Princeton University, warned, however, that there’s still a long road ahead.

“There’s a lot of hard work ahead to fulfill the main Paris goal, avoiding dangerous climate change. Without focused efforts starting now, we are not going to avoid falling over a very steep cliff,” Oppenheimer said in an email.

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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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