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October 17, 2016 #165
October 17, 2016, Issue 165 - www.cbw.ge
Energy Challenges of Introducing Renewable Energy Sources in Georgia
Wine market Russia to Increase Wine Imports Tax – Fate of Georgian Wines
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Why Free Industrial Zones are Inefficient in Georgia RAKIA Returned 85% Stake in Poti FIZ to Government
PR This PR manager Names Three Things You need to Succeed Pg. 6
Energy Transit from Iran to Georgia and Europe PMCG research center, jointly with Konrad Adenauer Foundation , holded a presentation of research results and public discussions on the issue – “Challenges and Opportunities of Energy Transit from Iran to Georgia and Europe”. The research made focus on appraisal of perspectives for gas transit between Iran and Europe and Iranian gas supply to Georgia. Iran’s energy resources acquired relevance after removal of economic sanctions from the country. Georgia and Europe have only several gas suppliers. It is important that the supply sources be diversified. The research work has outlined main goals and geopolitical and economic aspects that Georgia should follow in its economic relation with Iran. Due to existing technical difficulties and geopolitical factors, exporting Iranian gas to or via Georgia is not technically feasible in the short run, while respective prospects are difficult to predict in longer term timeframe. Pg. 11
Populism is the Enemy of Economy
Pg. 4
For a healthy economy only natural disasters are worse than populism, that is hurricanes, inundations, forest fires or grasshopper plague. Yet while the elements are beyond human control, populism is a purely man-made phenomenon. It has several manifestations, each of which has its special repercussions for the country’s economic development. A relatively harmless type of populism is the giving of pre-election promises. There is nothing much about that that we could discuss or analyze here. Economic programs of all participants in the October 2016 elections in Georgia have a straightforward populist character. They are also based upon mutually exclusive messages: “We shall lower taxes while increasing social incomes” or “We shall raise salaries for the teachers and the medical doctors while cutting down budget deficit and the state’s external debts”…
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2 GOVERNMENT
NEWSROOM Khaduri: We Need Moral Support from IMF rather than Fiscal Contribution We are working to launch a new program with Intentional Monetary Fund (IMF), based on government’s 4-clause plan, Finance Minister Nodar Khaduri told the Business Contract.
Georgia, Kyrgyzstan Agree On co-op in Economy, Security The agreement was inked in Tbilisi, as Kyrgyzstan’s President Almazbek Atambayev and his spouse have arrived in Georgia for a two-day visit.
ECONOMY
Georgia’s external trade grows 24% In the first 10 months of 2016 Georgia’s external merchandise trade (excluding non-declared trade) was $9.10 billion - 24 percent growth year-on-year (y/y), latest figures show.
Chinese Company Shows Interest in Georgian Power Sector The company representatives introduced their plans to the Partnership Fund. The Chinese party submitted specific investment proposal and expressed readiness for joint projects based on the Foundation experience.
BANKING
Money Transfers In September Amounted to $100,2 million According to NBG in September 2016, the volume of money transfers from abroad constituted 100.2 million USD (231.5 million GEL), which is 13.1 percent (11.6 million USD) more than the amount in September 2015.
Co-Investment Fund’s Subsidiary Sells 2 mln Shares of TBC Bank Group Malone Finance Limited has sold 2 million shares of TBC Bank Group (LSE: TBCG). Value of each share made up 12.40 GBP. Malone is subsidiary of the Coinvestment Fund of Georgia.
BUSINESS
Georgian Blueberry Sales to Double in UAE Interest in Georgian blueberry in UAE surged in 2016, but the company reserves have run out and blueberry exports to UAE was suspended, the company manager noted.
Davidoff Nicaragua Box Pressed Already on Sale in Tbilisi Offered in two sizes, the Davidoff Nicaragua Box Pressed will come in Robusto, measuring 5 inches by 48 ring gauge, and Toro, at 6 by 52. They are set to carry suggested retail prices of $14.50 and $17.20.
COMPANY
Gepherrini, Georgian Brand of Bags, to Launch Footwear Production Natakhtari Fund presented the report on completion of the fifth wave of the fundraising campaign to the public.
Access to Georgia’s financial market easier for foreign investors
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eorgia is making it easier for foreign investors to access the local financial market by becoming the 55th domestic market link for an important player in the securities services industry. Clearstream, a post-trade services provider, started operating a new domestic market link to Georgia via its local custodian and cash correspondent bank, the National Bank of Georgia (NBG). Today NBG welcomed Clearstream’s entrance to Georgia and noted it offered useful services to foreign investors, such as purchasing Georgian state securities and save with Clearstream. Clearstream, with 45 years’ experience, started efforts to tap into Georgia’s market about two years ago. Now the company was ready to provide
post-trade infrastructure for Georgia’s securities industry offering access to a growing number of international markets. Clearstream is facilitating the process of purchasing securities for foreign investors in foreign countries which is quiet long process. Clearstream has learnt Georgian market, legislation, regulation and signed agreement with Bank of Georgia. All these works took two years,” said NBG’s statement. Through this effort, thousands of Clearstream customers who already had accounts in several currencies could add a sub-account in Georgia’s national currency Lari, where they could save and purchase Georgian securities. These procedures are costly and time-consuming for investors and many of them were expected to refrain from
investing in Georgia,” said NBG. NBG added several investors were using this “new infrastructure”, and even though it’s still very new, already positive effects were being felt in the development of Georgia’s securities market. Earlier this year Clearstream announced it planned to enter Georgia. At the time it said: “The opening of our link to Georgia follows the enhancement of the GEL into a full settlement currency. These strategic moves mark another step in our approach to increase access to the CIS and Caucasus regions”. Currently Clearstream offered security services only for state securities however the company planned to expand its service as demand grows. In the future the company’s service will also include private securities.
Georgia joins international Energy Community family
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eorgia is developing its energy sector and is one step closer to ensuring this sector meets top European standards after joining the international Energy Community (EC) family. Georgia has recent been appointed a member of the EC, an international organisation that deals with energy policy. In Sarajevo, capital of Bosnia and Herzegovina where the 14th EC Ministerial Council meeting took place, Georgia signed the accession protocol on joining the EC group. As well as approving Georgia’s energy development, today the EC Ministerial Council made important dcisions on expanding the environmental and climate dimension of the EC group and adopted a list of priority infrastructure projects to facilitate the integration of the pan-European energy market.
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 17, 2016 #165
Mobile phone: +995 591 013936 Email: caucasianbusiness@gmail.com
With yet another new country joining the Energy Community family, this framework for the creation of a pan-European energy system is once again showing that it is relevant and successful” said Dominique Ristori, director general for Energy at the European Commission. The Protocol on the Accession of Georgia to the Energy Community was signed by Georgia’s Energy Minister Ilia Eloshvili and Minister of Foreign Trade and Economic Relations of Bosnia and Herzegovina Mirko Sarovic. Georgia is expected to join the Energy Community as a fullfledged member sometime in 2017, following the ratification of the accession agreement by Parliament of Georgia. Currently EC members are all European Union (EU) countries as well as Albania, Bosnia and Herzogovina, Kosovo, Mace-
donia, Moldova, Montenegro, Serbia and Ukraine. Negotiations to see Georgia become a new member of the Energy Community started in 2014 and these talks were successfully completed this year. Meanwhile, also the Ministerial Council adopted four decisions expanding the current scope of the environmental acquis.
www.cbw.ge <<
Southern Gas Corridor Most Important Project for BP
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World Gold Prices Fell to its Minimum But not in Georgia
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Georgia is One of the 10 countries, Where People Spend Most of their Income on Food
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New Hotels and Ropeways Underway in Gudauri
Editor: Nutsa Galumashvili. Mobile phone: 595 380382 Reporters: Medea Samkharadze; Mariam Kopaliani; Merab Janiashvili 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 17, 2016 #165
PUBLICITY
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ECONO-MIX
Why Free Industrial Zones are Inefficient in Georgia
George Janjgava Ambassador of Georgia to the Kingdom of Saudi Arabia
Merab Janiashvili Economic Analyst
Free industrial and economic zones, as a rule, work successfully in big and closed or semi-closed economies, however, in Georgia this practice has not justified
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AKIA, one of the major Arab investor companies in Georgia, has returned an 85% stake in Poti free industrial zone (FIZ) to the Government, Ministry of Economy reports. The Arab company maintains a 15% stake in Poti FIZ. LLC RAS Al Khaimah Investment Authority Georgia is a subsidiary of RAS Al Khaimah Investment Authority (RAK), the Poti FIZ management company. Besides 15% stake in Poti FIZ, the company also owns Sheraton hotel, where, an about 30 million USD investment project is being implemented for the hotel renovation. The Arab company also owns Tbilisi Mall. It should be also noted that, under the Government resolution of September 16, the agreement on sales of 98.26% stake in Poti Airport to Rakia has been also suspended. Under this agreement, investor was to develop the airport infrastructure. Vice Prime Minister Dimitri Kumsishvili said that the returned asset’s value is about 100150 million GEL. The Government has taken back the free industrial zone on more than 300 hectares and Poti airport on 150 hectares. Moreover, negotiations are underway with potential investor on making 600 million USD investments in Poti FIZ, Government officials noted. “Investments of 600 million USD will be made in FIZ. Therefore, our objective is to make Poti FIZ and Poti airport as instruments for implementing our investment policy”, Dimitri Kumsishvili said. According to government officials, RAKIA has failed to fulfill obligations for Poti FIZ development. As a result, a fine was imposed on the Arab company, but the latter applied to the Government for pardoning this fine in exchange for 85% stake in the asset. The Government does not specify the amount written off from the Arab company in exchange for the mentioned deal, under the pretext the agreement conditions signed by the Government and the investor are confidential and information on fines and other details must not be divulged without the company’s consent. It is unclear why the agreement between the government and the company is confidential. It is inadmissible that the government conceal information about its relations with a private company from citizens, excluding
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rade volume between Georgia and Saudi Arabia increased by 200% and Saudi investments exceeded $100 million, said Ambassador of Georgia to the Kingdom of Saudi Arabia George Janjgava, who is the first resident Georgian Ambassador working in the Kingdom. He said that from January to September 2016, more than 20,000 Saudi tourists and 6,000 non-Saudis (residents in Saudi Arabia) visited Georgia. It is expected that by the end of this year that the number of Saudi tourists will increase to 30,000. Last year, Georgia was visited by 10,000 Saudi citizens and 3,000 residents of the Kingdom. He pointed out that Georgia is becoming a new tourist destination for Saudis because they can enter the country without a visa and stay there for one year like the US and EU citizens. Also, foreign residents from Africa and Asia living in Saudi Arabia who possess Saudi Iqama (Residency Permit) can enter Georgia with their original Iqama and stay in the country for three months. 1He pointed out that the Kingdom imported from Georgia around 90,000 heads of sheep, mineral water, army vehicles for medical purposes etc. During this summer, in King Fahd Airport in Dammam, Georgian Airways Company started operating direct flights from Dammam to the Georgian capital Tbilisi for the first time. During the coming period, the Embassy will be working on establishing direct flights from King Khaled International airport in Riyadh and King Abdulaziz International Airport in Jeddah to increase trade and number of tourists from Saudi Arabia. The Ambassador mentioned the advantages of investing in his country, investors can cooperate with European Union countries due to Deep and Comprehensive Free Trade Agreement –DCFTA. Gorgia also has Free Trade Agreements with CIS countries and Turkey and has recently reached FTA with China. He pointed out that Georgia is looking to attract large Saudi companies in the future. Georgian Ambassador mentioned that his country is rich with pure water, that there are thousands of rivers and springs (there are 2,500 springs of mineral water). Georgia has a big potential for therapeutic and spa tourism. Country’s population is around 4 million. Major touristic cities are Tbilisi, Batumi, Borjomi and Kutaisi. Also, there are 12,000 historical and cultural monuments. Some 6 million tourists visited Georgia last year.
RAKIA Returned 85% Stake in Poti FIZ to Government
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Trade Volume Between Georgia and Saudi Arabia Increased by 200%
October 17, 2016 #165
information about deals on defense items or security issues of other countries. Free industrial zone was organized in Poti under the ruling of the United National Movement (UNM). The previous ruling party used to adopt and implement very favorable decisions for investor, but detrimental decisions for the country, including concealment of Enguri HPP agreement, as well as the agreement with CT Park with absolutely losing conditions for the country and so on. As to Poti FIZ perspectives, Ministry of Economy explained that the asset has maintained the status of a free industrial zone and its development is continued. FIZ was established in Poti in June 2008 for a period of 99 years. According to statement of the then President Mikheil Saakashvili, ten thousands and hundred thousands of new job places would be created in the FIZ. In reality, the FIZ failed to fulfill even a half part of the President’s promises. Private companies have not showed much interest in Poti FIZ and the asset’s workload made up only 10-15% over the past 8 years. It should be also noted that similar hopeless situation exists in Kutaisi free industrial zone too, where Egyptian company Fresh was to make 2 billion USD investments, but these promises also turned out exaggerated. Nor Kutaisi FIZ manages to work at full capacity. Despite free industrial or economic zones have not justified in Georgia, new ones are being still created. For example, over the past years 2 new zones were created: 1) one near Tbilisi with BitCoin data center and 2) another was created by Hualing company, nearby Fresh FIZ in Kutaisi. However, nor the new free industrial zones are showing spacial success. Free industrial and economic zones, as a rule, work successfully in big and closed or semiclosed economies, however, in Georgia this practice has not justified. And nobody has analyzed reasons why free industrial zones do not work in Georgia. Despite failures, the government keeps creating new free industrial zones, but the reality suggests that either FIZ organization strategy should be revised or similar zones should not be created any more, because taxes are lower in the whole country compared to European countries and it is better that the government direct efforts for promotion the whole state economy, not its specific zones and sections.
“We have returned these assets to make them an investment policy instrument so as the state actively apply the industrial zone, draw more and major investors. The government has started negotiations with major industrial group. If the negotiations are success, we will draw 600 million USD investments to the FIZ”
Dimitri Kumsishvili Minister of Economy
October 17, 2016 #165
PUBLICITY
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PR
This PR manager Names Three Things You need to Succeed Caucasus Business Week offers you an interview with Ketevan Adeishvili, Head of Sales and Marketing Department of Unix Development Company, who speaks about her first job as a newspaper distributor, about her achievements in public relation sector and names three features a successful PR manager need to have. - What is your profession? - I am a marketing specialist, to be more exact, marketing manager and marketing researcher. I also hold BA and MA degrees in business administration. As to specific sector – over the past years I have been working in the development sector. - Your first job place. - I was student, 18-19 years old, when I decided to earn pocket money by distributing newspapers. I have delivered about 700 newspapers to various families – My first salary was 350 GEL. Then I used to work as probationer in National Tourism Agency. Prior to taking a final decision on career development, I also worked for BDO auditing company, receptionist-administrator at Bank of Georgia, personal consultant for ACT marketing research-consulting group, marketing manager for AS Georgia project of DIRSI and later I became head of sales and marketing department of the company. - Your first success. - In my school period I was afraid of making public speech. To overcome this inhibitation, I decided to get rid of my comfort zone and I started frequently taking part in scientific olympiades after enrollment in university.
My first success is related to experience from participation in similar Olympiads, when I overcome the fear of audience, efficiently introduced research themes and deserved winning places. - Business and project of which you are proud even today. - Dirsi is similar project for me. The project that nobody knew initially and today even Tbilisi minibus taxi sheets indicate DIRSI. According to modern tendencies on the real estate international market, developers and architects give preference to developing urban space complexes. DIRSI project was inspired by this idea – this is one of the first MINI CITIES in Georgia, where a residential block is integrated with all social facilities for residents: accommodated yards, children playgrounds, boulevard, kindergartens, schools and so on, Moreover, DIRSI is the major residential complex in Georgia with about 40 blocks and 5000 apartments. Consequently, I believe DIRSI project has played important role in real estate market development – Namely, large-scale residential complex construction precedent in Georgia with
In my school period I was afraid of making public speech. To overcome this inhibitation, I decided to get rid of my comfort zone and I started frequently taking part in scientific olympiades after enrollment in university. My first success is related to experience from participation in similar Olympiads, when I overcome the fear of audience, efficiently introduced research themes and deserved winning places
October 17, 2016 #165
“I would Be Architect if I had not Chosen Marketing and PR” due infrastructure. The project has demonstrated to all market players and users the gaps of point construction and inspired them to reevaluate priorities. - Field where you would never work. -I would not work in the field where services and products offered to people and society would make negative influence. I think gambling games and tobacco industry are similar fields. - What makes a person successful in your field? Besides knowledge, what special characteristics are required? - I would name the following necessary features – commitment, sociability and vigour. - Is it possible to valuably study PR in Georgia or international knowledge and experience is necessary? - I believe it is possible to valuably study PR in Georgia, but professionals in any field should maximally get familiarized to international knowledge and practice, especially in PR and marketing directions, because these field change and develop every day. - How easily do you settle crisis situations and take decisions? Do similar situations effect the business quality? - I have collected enough experience of managing crisis situations. I would say that there is no unresolvable situation. The situation may be settled by maintaining positive attitude and directing efforts to problem solution.
Frequently, emotions and stress hinder to discover new opportunities. Crisis situation is only challenge, additional interesting task and you just become content by resolving them. -Interesting episode that has changed your life. -To be frank, I cannot remember any special episode that has radically changed my (business) life. I believe positive changes come thanks to longterm and consecutive work. - If not this profession, which field would you work in? - Supposedly, I would be an architect if I had not chosen marketing and PR. This signifies I would remain in development sector and do not betray creative activities. - What are your strong and weak sides, as a businesswoman? - Characteristics of a professional and a person, in general, is better seen in distance. As to myself, I am not afraid of leaving the comfort zone – I am always ready for new challenges and testing myself. - What creates major discomfort in your working process? -It is major comfort when you are a decision-making person in your business, when the company top management and you understand each other very well and consumer-oriented long-term relations are main values. - Where do you see yourself after 20 years? -I have two interesting ideas and I see myself in several innovative projects after their successful implementation.
October 17, 2016 #165
WINE MARKET
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Fate of Georgian Wines Russia to Increase Wine Imports Tax MARIAM KOPALIANI
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eorgian wine exports to the Russian Federation may decline. Higher taxes will create problems to distributors and producers. It is not known when exactly the new rate will come into force, but the working process was intensified in this direction. Russia plans to double excise tax on wines. Ministry of Finance of Russia has already submitted due initiative to the Government. The amendments are part of the 2017-2019 tax strategy project and it will not supposedly refer to sparkling and fruit wines. The information was published by the Commersant Russian newspaper. Meanwhile, Georgian winemakers expect that wine exports to Russia will decline after growth in wine imports excise tax. Under the project, excise tax for imported wines will increase to 18 Rubles from 9 Rubles per liter, while the rate will rise to 10 Rubles from 5 Rubles on wines with geographical indications protected by Russian brands. Pavel Titov, President for Wine House Abrau Diurso: Higher excise tax will cut wine consumption and decrease domestic production and hinder imports replacement process. Maxim Kashirin, President for Simple wine importer company,
said that higher excise tax will reduce consumption of more expensive and imported wines. «This is very bad signal for our business that currently is in unfavorable condition amid currency exchange rate fluctuations and demand reduction», the businessman said. The Caucasus Business Week (CBW) was interested in how higher excise tax may affect Georgian winemaking companies. A majority of heads of winemaking companies noted that this decision will bring negative effect, but not destructive. Mikheil Khundadze, director for Georgian Wine Corporation, said that it is difficult to talk about what we do not know definitely in advance. It is impossible to determine preliminarily how the market will receive it. «Naturally, if excise tax grows, importers will have to supply products at higher tariffs and the market realities depend on consumer conduct. Based on economic factors, when something grows in value, its consumption declines», Khundadze noted. The company exports a major part of its wines to the Russian market, he said. Zurab Margvelashvili, TbilVino director general, explained that this decision will make quite negative
The amendments are part of the 20172019 tax strategy project and it will not supposedly refer to sparkling and fruit wines
impact on Georgia and Georgian companies. «As a rule, higher taxes and prices do not bring positive results, even more so there is crisis in Russia, solvency of population has declined. Therefore, any growth in tariffs will negatively affect sales indicators», Margvelashvili noted. Badagoni director Gia Shengelia explained that the mentioned decision will negatively effect Georgian winemakers. Namely, Russian distributors may ask Georgian winemakers to lower product tariffs. As a result, Georgian winemakers will have to bear losses. Moreover, if product prices grow in retail sector, sales will decline definitely, he said. «If wine price grows, Georgian wine sales will be suspended, in practice, because market competition has sharpened because of wines imported from Crimea and Abkhazia», Shengelia noted. Russian market accounts for 35-40% in Badagoni company exports, Shengelia said. Zurab Chkhaidze, head of Kakhetian Traditional Winemaking, also expects negative results from the mentioned decision. Over the past years the Russian Federation has been trying to develop winemaking sector and viticulture and the Russian Authorities pay much attention to the domestic production development. However, the mentioned decision will not extremely affect Georgian wines, he said. «We do not expect good results, but this is not tragedy», Chkhaidze noted. Russian market accounts for 35-
According to the National Wine Agency, as of August 2016, Georgia exported 28 156 547 bottles of wines to 46 countries (in 0.75 liter bottles), up 42% year on year. In the reporting period, the exports value made up 64.8 million USD, up 16% compared to the same period of 2015. Exports have increased to EU countries, China and other traditional markets.
40% in total exports of Kakhetian Traditional Winemaking, he added. Since Russia ranks first among Georgia’s wine exports markets, the CBW also asked National Wine Agency to comment on the mentioned initiative. The agency director Giorgi Samanishvili abstained to make analysis at this stage. This is only idea and initiative, he said. “It is very difficult to analyze what will be effect on the Georgian market. It is only idea and this is less important. When the Russian Authorities adopt these changes, I will comment then”, Samanishvili noted. According to the National Wine Agency, as of August 2016, Georgia exported 28 156 547 bottles of wines to 46 countries (in 0.75 liter bottles), up 42% year on year. In the reporting period, the exports value made up 64.8 million USD, up 16% compared to the same period of 2015. Exports have increased to EU countries, China and other traditional markets: China - 184% (3 368 361), Ukraine - 75% (3 042 192), Belarus - 47% (667 656), Russia - 45% (14 664 610), Poland - 34% (1 367 960), Estonia- 39% (413 364), Kyrgyzstan - 107% (163 966), the USA - 10% (171 316) Japan - 12% (101 448), Great Britain - 65% (67 522), Latvia 9% (772 926) and so on. As of August 2016 Russia ranks first among Georgia’s top five exports countries. Top five exports markets are as follows: Russia (14 664 610), China (3 368 361), Ukraine (3 042 192), Kazakhstan (2 287 826) and Poland (1 367 960).
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REAL ESTATE
October 17, 2016 #165
OPINION
October 17, 2016 #165
Construction Companies Complain About Difficulties With Financing
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s is known, the Georgian construction business isfocused on short-term projects – that is, the construction of houses and their quick sale, while almost no one is engaged in a long-term development – the construction for the purpose of renting the apartments. Most developers interviewed by Commersant say that the main reason for this is the difficulty of obtaining financing and reduced demand for rental property. In particular, according to the founder of thecompany Iverioni Archil Jakeli, such projects require a lot of funding while the income is meager and payback is long-term. Business in the current Georgian realities cannot afford to wait so long because the money invested in projects should be returned not in 10 years, but now. “During the construction of apartments for the purpose of rent, developers receive a meager income, even commercial spaces are more profitable – despite the fact that they are not very interesting for developers. Those who start construction, one way or another are focused on the sale of apartments. All have the resources in order to start a project, to dig a pit, make a foundation and build the first three floors, but if atthis time sales of apartments do not begin, the catastrophe can happen,” – he says. According to Redix company founder Lasha Papashvili, he agrees with the view that the Georgian developers do not look far ahead, but this is not because the developers are stupid and short-sighted, but because such an approach is dictated by reality. “The reason for lack of interest in long-term projects is the lack of finance. The companies do not have their money, and they are deprived of the possibility of obtaining large bank loans. Our company ismainly engaged in such long-term projects and does it quite well. But Redix is a large company and smaller developers can not afford to keep capital so long that is the reason for such an approach,” – Lasha Papashvili notes. In his words, Redix carries out many long-term projects, but they mainly concern the lease of commercial premises and hotels. According to CEO at the construction company GDG Bezhan Tsakadze, today 20-25% of the buyers of apartments acquire them for rent, as a result the market is saturated that makes developers’ activityunprofitable. “The developer’s business is to build and sell apartments. Lease of apartments in itself could be profitable, but it is not our business. Our task is to build and sell” – he concludes.
(including, for example, providing full-fledged compulsive medical insurance for all citizens or subsidizing grape and citrus producers), it can find itself in a bind. The choice would have to be between socially dangerous reforms or arm twisting of the businesses by means of raising taxes, along with simultaneous increase in the size of state agencies and in the numbers of state officials being a social group most loyal to the state. Populism is, at the same time, an impediment for starting reforms that are aimed at raising the effectiveness of the economy. In the political arena there are always those “good Dr. Andrei Maximov people” who will vehemently deMaximov&Partners LLC; am@maximov.com www.maximov.ge fend the interests of the have-nots. Thus, for example, the authorities in Tbilisi were not capable of solving the issues of regulating the market or a healthy economy it is difficult to get back to the efof the private and public transporonly natural disasters are fective economic model. Usually tation means (disregarding which worse than populism, this danger is more likely for the political party was in that is hurricanes, inuneconomies based on charge at the moment). dations, forest fires or grasshopper a resource rent—as The true interest Georgia wants to join the plague. Yet while the elements are has been the case in of the local EU, but if it can get there beyond human control, populism Russia, Venezuela, economy is, later on, it will be the is a purely man-made phenomand Nigeria. And however, quite only country that does enon. It has several manifestarecently in Saudi different. It is to not have and that never tions, each of which has its special Arabia, in which had the OSAGO insurrepercussions for the country’s the consumer make air tickets economic development. society is showing as inexpensive as ance (Compulsory Motor Third Party Liability). No A relatively harmless type of its displeasure with possible through one in power was brave populism is the giving of pre-electhe necessity to the competition enough to introduce tion promises. There is nothing tighten belts for the of the airlines compulsory procedure much about that that we could first time. That may and thus radically for vehicle inspection discuss or analyze here. Economic turn the Kingdom that would have cut by programs of all participants in from a safe and quiet increase the half the existing national number of the October 2016 elections in social and political fleet of private cars. The Georgia have a straightforward haven in the Middle tourists, those authorities did not have populist character. They are also East into one more for whom the the heart to get a limit based upon mutually exclusive hotbed of religious transportation on owning right-hand messages: “We shall lower taxes content. Yet the expense drive cars or to implewhile increasing social incomes” “death spiral” (in the component has ment even the minimal or “We shall raise salaries for the words of the famous a priority when environmental requireteachers and the medical doctors political expert G. choosing the ments for car exhausts while cutting down budget deficit Esping-Andersen) along with their effective and the state’s external debts”… can be charactercountry of their control and subsequent Such a pre-election rhetoric does istic not only for travel goal unavoidable penalties. a lot of damage in an indirect resource-based Alas, just as an English manner. High-ranking decision economies. Much proverb states: “If you makers who will have to commit worse is the situdo not solve the problem, it will themselves in the future to taking ation when in the context of solve you”… As a result, streets in fundamental, overriding deciincreased underemployment Tbilisi and other Georgian cities sions, are not discussing currently and high social commitments are in total disarray, the country is the subject-matter and the stepthe only solution for the political filled with old clunkers and even by-step introduction of actual, leadership aiming to balance the when they only get out onto the realizable reforms, but gave a start state budget is the tax increase street, that creates dangers for all to an senseless race of unachievfor businesses which brings about traffic participants. Any driver will able pledges. Well, it’s a different the worsening of the investment think many times about getting a matter that there is nothing new climate and the downturn of the gas mask when he drives his family about this since Ancient Greece… economic growth rate. A characover the serpentine road behind an Just as before, as per a famous teristic example is Hungary today ancient Russian car made in 1970 saying, “dogs may bark but the where Prime Minister Viktor that should have been long ago comcaravan moves on”. Elections will Orbán was forced to introduce mitted to a museum or behind a bus pass, pledges will be forgotten, high-level “crisis” taxes in order of an unknown brand name or year and the elected official will have to create new jobs in the governof production. to deal with the real economy. ment sector and to increase social I will provide some more examples Worse than the unfulfilled prespending to the population, that from my own experience in Ureki. election promises, however, only is to his electorate. During the summer almost every fulfilled pledges. Thing is that If any country, including Georgia, child who comes to this wonderful it is fairly easy to cross the line were to enter this dangerous path resort place for his or her vacation during this process after which of excessive social expenditures
Populism is the Enemy of Economy
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9 suffers a bout of intestinal infection. These animals leave, naturally enough, many waste products of their bodies all over the unique black magnetic sands, and that in the most terrible heat conditions. Looks like one could solve this “complex” problem in no time at all, once and forever. Local authorities, however, have not been able to cope with this issue for many, many years now. Georgia’s main transnational route Batumi-Tbilisi passes through Ureki, so big camions from Turkey, from the ports of Batumi and Poti move in a steady flow towards Russia, Armenia, Azerbaijan, to the countries of Central Asia. Cows with their offspring and horses with their colts become here participants in the fast traffic. There are several shaded locations between Grigoleti and Kobuleti where animals can find respite during hot season, so they can rest straight on the road completely blocking it. Drivers of trucks and private cars are not always ready to such surprise appearances, so road accidents happen there all the time. It is great if there is no loss of human lives, but, unfortunately, that happen there too, from time to time. Is it all possible to solve this issue of not letting cows appear on the highway? This is, of course, a rhetorical question… Populist care for national economy is too often supplemented with a grand dose of patriotism. This happens, for example, when the local air company using patriotic slogans keeps hindering with every possible means the entrance of foreign companies (including budget airlines) to the market of aviation services. Patriotic populism hides the acute intention to keep intact the monopoly for expensive air tickets. The true interest of the local economy is, however, quite different. It is to make air tickets as inexpensive as possible through the competition of the airlines and thus radically increase the number of tourists, those for whom the transportation expense component has a priority when choosing the country of their travel goal. And the increase of tourist flow would immediately introduce the multiplier effect in the economic growth, increasing the household incomes as well as tax revenues for the treasury. No less populist has been the protection of Georgian cab drivers from the necessity of getting their job license or any regulation of their activities. The rhetoric is to create an impression of caring for the people and their prosperity, but in reality both service quality and tourist’s safety gets only worse, so that ultimately the image of Georgia suffers as a country attractive for tourism. The list of examples could be continued, but the scope of a newspaper commentary puts a limit on that. Looking around you will find yourself many examples of how the treacherous populism does harm to the effective economy. Fighting it can only be successful within the framework of practical deeds, and Georgian government headed by Giorgi Kvirikashvili was, until recently, moving forward in the right directions in various branches of the economy. Under the conditions of election campaign, however, the objectives of country’s leadership have, naturally enough, shifted somewhat. I am sincerely hoping that after the election on October 8 populism will not disfigure economic priorities of the newly elected executive branch of the government.
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BUSINESS
October 17, 2016 #165
Zviad Tsikolia Constructs New Sport Aircraft in Georgia New sport aircraft, made in Georgia will be sold throughout the world. Designer Zviad Tsikolia constructs Georgia’s first one seat aircraft. In his exclusive interview with Commersant radio Tsikolia talked about his intention and the process of construction. The completion of the plane is due to finish in the near future but designer can not name the exact date, because as for him company faces different kinds of issues in the construction process, such as financial and material problems. Zviad Tsikolia plans to create limited plane which will be sold everywhere in the world. In addition the plane has its customers already. TBC bank has allocated initial investment for this project, however designer now invests by himself. Sport Aircraft will fly on short distances.
INOVATION
AWARDS
Tesla Toys: New Player on Georgian Digital Market
ompany Tesla Toys is a new player of mobile applications and IT project market in Georgia. The company was founded by few friends. Director of Tesla Toys Jaba Bokuchava talked with Marketer.ge about their startup and future
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goals. What does Tesla Toys mean and what is the main goal of the company? The goal was to establish our name on mobile application and IT project market in Georgia. Our task was to create such functional product that would simplify the
NEWS
FOOD
KPMG in Georgia Adds a Second Partner As Business Doubles
Burgio - From “Wandering Around business” to Burger Bar
Over the last three years the revenues of KPMG in Georgia have doubled, reflecting growth in all service lines (Audit, Tax & Legal and Advisory). Since 1 October 2016 Kakha Rukhadze is officially promoted to Partner in the KPMG CIS LLP partnership, increasing the number of Partners in KPMG Georgia to two. This promotion is not only a reflection on Kakha, but of the confidence in Georgia and the professional services market generally.
Spy RecipeGeorgian “Spy” in your Kitchen Spy Recipe is a family business, which creates ecologically clean, special spices for particular dishes. The package is in English, Russian and Jewish, which makes it easier to prepare Georgian dishes. At present, they have 6 variety: Svanuri, Satsivi, khinkali, Beans, Eggplants and chashushuli. Production is basically located in old Tbilisi in different shops.
working process. How does your company work? We work on both, startups and business projects. Our company is ready to serve small and medium enterprises and create them new communication platform on Android and iOS devises, also
One year ago, a car riding in the streets started to sell burgers in Tbilisi. This business was initiated by married couple from Moskov, Giorgi Zlobin and Valeria Giachagte. This year, their “wandering” start-up turned into a bar, which offers homemade delicious products to the customers. Giorgi Zlobin talks about how they started the business and which difficulties they had to overcome in order to achieve the success. How did you start your business? Last Spring, we started to sell the burgers by car. Soon, we discovered that according to the law, we could not have a moving business, therefore, in spite of our big effort; we had to stop the business. We stopped in front of Dive Bar and we started to make burgers at the weekend. We have a very good memory about this period. We met a lot of nice and interesting people and received a good reputation, because we prepared the burgers with local ingredients. How did you manage to turn “Burgio” from moving fast food to the bar? One year later, we found a small place for our restaurant in Sololaki, on Amagleba street,#8. After having found an investor, we started to do repairments and 3 months later on 26th August, we had a huge opening ceremony. We had a great experience. I learned a lot about workers, different materials, electricity and canal systems. At present, I work as an accountant and supervising the company at the same time. I also establish new connections and experiments for ingredients. What are the difficulties you have to overcome when you want to open a burger bar in Tbilisi? It is easy to start a business in Georgia, but it is a different matter to maintain it and make it real. Dealing with deadlines is maybe the biggest problem in Georgia. What special services do you provide for your customers? We have a very simple and small menu, which allows us to focus on details. At the same time, we change the weekly offers and we bake the bread ourselves, prepare potatoes and the most delicious bacon. We also have homemade pickles. We also make Craft Beer and from today we will start to sell IPA as well. What are your expectations and future plans? We have big plans for the future, but we will keep it as a secret. Most importantly, we will introduce new initiatives and we are not going to stop! The ones, who want to start their own business but they have some obstacles, I would give a piece of advice: Start your business and work hard!
to make mobile applications and web projects. Company has already worked on large projects; We have created mobile application Radiola Turner, which is player for Georgian radio stations. Applications enabled radios to have a connection to smart phones. Another challenge for us for us was management system and mobile application of Buckswood School, which involved constant informative system for school stuff and also for parents. Brand name comes from the concept of the company, tools that Nicolas Tesla invented was as simple as toy, respectively we named our company Tesla Toys. In the near future company plans to develop different startups, apart from this Tesla toys inc. works on several business projects.
National Tourism Awards Encouraging Tourism and Hospitality Industry in Georgia Welcome to Georgia! National Tourism Awards is an Annual National Award Ceremony in the field of tourism in Georgia. Project’s main mission is to encourage tourism and hospitality industry in Georgia and to promote the awareness of the country worldwide. On the Second Welcome to Georgia! National Tourism Awards 2016 Ceremony winners will be name in 19 separate categories among the Awards participants: hotels; travel agencies and tour operators; festivals and events; restaurants, food spots and wineries; travel photographer; business and entertainment venue; companies focused on the hospitality industry or tourism sector. One of the nominations “THE FASTEST GROWING COMPANY OF THE YEAR IN THE SME SEGMENT” is created by the Official Partner JCS “Bank of Georgia” within the Welcome to Georgia! National Tourism Awards. Growing is the main element for developing any business and for country’s economic development. One of the most important segments which contributes significantly to the development Georgian economy is SME segment. Due to this reason, JCS “Bank of Georgia” and the Welcome to Georgia! Award created a special category for companies working in the tourism and hospitality industry, SME segment, to encourage and motivate those businesses. The only criteria for participation in this category are that company’s annual turnover should be within 12 million GEL and the companies should be achieving significant success in 2016. The Second Official Award Ceremony will be held on December 2 in the recently opened hotel “The Biltmore Hotel Tbilisi”.
ENERGY
October 17, 2016 #165
Energy Transit from Iran to Georgia and Europe PMCG research center, jointly with Konrad Adenauer Foundation , holded a presentation of research results and public discussions on the issue – “Challenges and Opportunities of Energy Transit from Iran to Georgia and Europe”.
Teona Lavrelashvili PMCG
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he research made focus on appraisal of perspectives for gas transit between Iran and Europe and Iranian gas supply to Georgia. Iran’s energy resources acquired relevance after removal of economic sanctions from the country. Georgia and Europe have only several gas suppliers. It is important that the supply sources be diversified. The research work has outlined main goals and geopolitical and economic aspects that Georgia should follow in its economic relation with Iran. Due to existing technical difficulties and geopolitical factors, exporting Iranian gas to or via Georgia is not technically feasible in the short run, while respective prospects are difficult to predict in longer term timeframe. Financing such a project will be unrealistic at the current stage of developments, mainly due to a number of major risk factors – high construction and maintenance costs due to mountainous terrain; shortterm tendency towards low oil prices, and unclear trend in the longer term; possibility of a military conflict in the region (Karabakh in the first place) that may disrupt construction or functioning of infrastructure ; Unwillingness to allow such a project on the part of the major geopolitical power in the region – Russia, and leverages it possesses; and, possible existence of more favourable alternative routes to the West, while the Georgian market is too small to count. In addition, both Georgia and Iran would have to face strong regulatory challenges as they would have to adapt to EU standards, especially if any of the two would want to enter the Energy Community, although this can be seen both as a challenge as an opportunity (cnf. the successful example of Bulgaria as a beneficial case of stronger regulations) The Western energy cooperation with Iran involving Georgia will diversify Georgia’s energy supply, which is a positive step towards more energy security, but will also increase competition between leading energy
exporters and geopolitical actors. Therefore, overall regional implications will comprise more instability due to increased geopolitical rivalry in this complex region, against the background of Armenia-Azerbaijan tensions that are on the rise. Russia-Turkey relationship has not fully recovered yet, while Russia’s relations with the West are deteriorating. However, China is increasingly interested in the region mainly within the framework of its Silk Road initiatives, and may play a stabilising role due to its special relations with Russia, while Iran is emerging as one of the powerful regional actors. While Georgian route for transit of Iranian gas to Europe is theoretically feasible, there are currently insufficient incentives among the major Western energy companies and governments to realise such endeavour, although it cannot be totally excluded that more interest will eventually emerge, depending on the trends in the energy markets and European economy, and the situation in the region. Diversification of gas supplies with possible cheaper price for Georgian consumers, while the presence of a new player in the market will increase competitiveness and also decrease the price. At the same time the new infrastructure projects possess the potential to attract FDI, bring in revenues and create jobs in the country. Increasing the volumes of the gas transit will also bring additional fees. On the geopolitical level, such projects on one hand may increase the importance of Georgia as a transit country for the West,. Furthermore, attracting high amounts of FDI will compel the investors to demand high levels of transparency and efficiency coming from all involved parties, hence give Georgia an opportunity to modernize its energy sector and bureaucratic practices in this field aligned in international best-practices. Twining projects with European administrations and expert missions could contribute to achieve that goal. This means that Iran or Georgia would need to construct a new interconnection. Georgia’s consumption of gas is only 300400 mcm/a therefore it’s not economically justified to invest
in respective infrastructure in order to reach such a small market, unless there are significant volumes transported further to the west. Both Iran-Armenia19 and Iran-Azerbaijan pipelines have relatively limited capacity, and even although the latter is several times bigger, significant investment and construction work will be needed to make the project viable. Based on what has been said above, it seems there is limited plausibility in the short term to organise export of Iranian gas to Georgia or via Georgia to Europe. This is by no means a priority for Iran, and Tehran is further demotivated by rising
Diversification of gas supplies with possible cheaper price for Georgian consumers, while the presence of a new player in the market will increase competitiveness and also decrease the price. At the same time the new infrastructure projects possess the potential to attract FDI, bring in revenues and create jobs in the country tensions with Turkey. Furthermore, Europe does not demonstrate great enthusiasm toward such project, due to a number of reasons – its preoccupation with internal problems; shifting attention to spot market for LNG and to the renewable energy; instability in the Middle East that seems to be of prolonged nature; unwillingness of big banks to financially support such a proj ect in the light of still pertaining American sanctions on Iran. At this stage of work the answer to the main question – in the short term perspective feasibility of transporting Iranian gas via Georgia to Europe – seems to be rather negative. However, in the longer time frame such a project makes sense and most probably will come to life in one or another form (and along one of the optimal routes) depending on the prospects for the stabilisation of the region, and on the dynamics of demand on gas and its price.
11 Challenges of Introducing Renewable Energy Sources in Georgia The importance and use of renewable energy sources (RES) has been raising in recent years on a global scale. Therefore, the significance of this issue is increasing for Georgia as well. However, Georgia has already been an observer of Energy Community (EnC) since 2007 and applied for full membership in 2014.
On 12th of October, 2016, PMC Research, together with Konrad Adenauer Foundation hosted a presentation and public discussion of the research findings “Challenges and Opportunities of Renewable Energy in Georgia”. The researcher, Zviad Gachechiladze presented his analyses of RES in Georgia and explained the technical Medea Samkharadze side and also, administrative Reporter procedures for the country to receive recognition from the EU. This event itself refers, that Georgia is going tial of Renewable Energy to take more steps towards sources and it could be very introducing RES in the profitable and useful for the country and there are few country to actively work reasons for that: First of all, in this sector. It can also Georgia is remarkably rich increase new job opportuin hydropower resources nities in electricity sector. and also have a potential However, she mentioned of wind, solar, biomass and few barriers which might geothermal resources. On make the process complithe other hand, reduction in cated and slow. According CO2 emissions and a larger to her, it is important to take scale development of RES in Georgia will have positive steps slowly and measure the possible outcomes in effect on the environment advance. The as well. It will first crucial issupport sustain- During the public sue Georgia has able developdiscussion at to deal with is ment goals of the Ministry the challenges the country of Energy, of fulfillment of implying that the deputy RES directive, living environof Minister of so that Euroment will be Energy Mariam pean market much cleaner will be open for Valishvili, talked and we will Georgia to sell avoid the danabout different the energy. She gers of ecologiperspectives also mentioned cal disaster we and explained that it is a very are facing now. the current expensive The first Wind negotiations project and Power Plant was between government already officially Georgian needs to invest opened on 6th a lot of money of October, 2016 government and the EU. in it. Therefore in Gori Municia lot of meapality and it will surements have be fully functo be considered. tional in December. Project is worth 34 million USD. The It has been mentioned during the discussion, Power Plant will enable the that there should be more Ministry of Energy to proresearchers and specialvide part of the electricity ists exploring and workcountrywide at the expense ing on this topic to define of the wind energy. During the public discussion the benefits and possible complications of introducat the Ministry of Energy, ing RES in Georgia.Mariam the deputy of Minister of Valishvili also said that the Energy Mariam Valishgovernment is intensely vili, talked about different working on administrative perspectives and explained process with the EU, but if the current negotiations the administrative barriers between Georgian governare not handled, it will not ment and the EU. be sensible for Georgia make She mentioned that Georgia an agreement. has definitely high poten-
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PUBLICITY
October 17, 2016 #165
WORLD NEWS
October 17, 2016 #165
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Quotes
“ Every moment “The opening of this bridge will take place in a month, maximum in six weeks, and that will become a strong impetus for the cargo transportations to increase”
in life, every opportunity is a choice to innovate and have an impact
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Frances Colon
The EU Celebrates 20th Anniversary of its Disaster Preparedness Day
Azerbaijan Built 200 km of Railways Since 2016
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zerbaijan Railways CJSC has built nearly 200 kilometers of railways since early 2016, Javid Gurbanov, head of Azerbaijan Railways CJSC, told reporters in Baku Oct. 13. He said that the construction and renovation of Azerbaijan’s railways continues. “On Oct. 12, we commissioned the updated production base for the construction of railways in Sangachal settlement,” said Gurbanov. “We will try to complete the construction of Baku-Ganja high-speed railway until late 2017. The trains’ speed on this railway will reach 100 km/h and this will make it possible to get to the final destination within 3.5-4 hours.” He noted that the construction of 8.3-kilometers-long railway section has been also completed in Azerbaijan’s Astara city within the International North-South Transport Cor-
ridor. “Construction of the bridge across the Astarachay River on the border of Azerbaijan and Iran nears end,” Gurbanov said. “The opening of this bridge will take place in a month, maximum in six weeks, and that will become a strong impetus for the cargo transportations to increase.” Azerbaijan and Iran are participants of the large and perspective International North-South Transport Corridor, which is meant to connect Northern Europe with Southeast Asia. At the initial stage, it is planned to transport 5 million tons of cargo via the North-South corridor per year and to increase the figure to over 10 million tons in the future. In addition to its international aspects, the corridor will have a significant role in reducing transportation costs as well as boosting the volume of trade turnover between Iran and Azerbaijan.
Turkish Stream’s Construction to Start in 2018
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onstruction of the Turkish Stream natural gas pipeline will begin in 2018 after the latest intergovernmental agreement has been signed this week, Sputnik International news agency quoted CEO of Russia’s Gazprom energy company, Alexei Miller as saying Oct.11. “According to our plan, construction itself will begin in 2018,” Miller told Russia’s Rossiya-24 broadcaster, noting that the agreement signed on October 10 entered into force that day. Russia and Turkey signed on Oct.10 an intergovernmental
agreement on a gas pipeline for deliveries of Russian natural gas to Turkey and Eastern Europe. Miller said his company would own 100 percent of the pipeline’s offshore section running below the Black Sea, adding that Gazprom planned to finance the construction of its first and second legs. A gas discount mechanism for Turkey announced by the Russian president earlier will be linked to delivery volumes, the CEO said. “This mechanism is related to the volume of our gas supplies on the Turkish market,” Miller said.
The European Commission ensures rapid and effective delivery of EU relief assistance through its two main instruments: humanitarian aid and civil protection
Bob Dylan wins the Nobel Prize in Literature Singer-songwriter Bob Dylan has been awarded the 2016 Nobel Prize for Literature. The prize was awarded by the Swedish Academy in Stockholm which said the 75-year-old received the prize “for having created new poetic expressions within the great American song tradition”. During Alfred Nobel’s final years, he wrote a series of fictional stories and literature was the fourth prize the scientist mentioned in his will, which read: “The said interest shall be divided into five equal parts, which shall be apportioned as follows: /- - -/ one part to the person who shall have produced in the field of literature the most outstanding work in an ideal direction...” The prize has been awarded to 113 Nobel Laureates since 1901. Dylan was born on May 24, 1941 in Duluth, Minnesota and grew up in Hibbing. After he moved to New York in 1961 he met record producer John Hammond and signed a contract for his debut album, Bob Dylan in 1962. He has released 37 studio albums, with the latest being Fallen Angels, released in May 2016.
The Recent Rating of the Safest Airlines Revealed International Portal AirlineRatings, published the rating of the safest airlines. This year, only 20 companies were in the list, whereas there were 407 airlines which were willing to become part of the list. AirlineRatings offers us the following list:American Airlines; Alaska Airlines; All Nippon Airways; Air New Zealand; Cathay Pacific Airways; Emirates; Etihad Airways; EVA Air, Finnair; Hawaiian Airlines; Japan Airlines; KLM; Lufthansa; Scandinavian Airline System; Singapore Airlines, Swiss; United Airlines; Virgin Atlantic; Virgin Australia.
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n the occasion of the International Disaster Risk Reduction Day, the EU, together with State Security and Crisis Management Council and its partners, celebrates 20 years of Disaster Preparedness programmes. To mark the 20th anniversary of its DIPECHO programme, the EU, State Security and Crisis Management Council and DIPECHO partners organised a ceremony on 13 October coinciding with International Disaster Risk Reduction Day. The ceremony took place at the “EXPO Georgia” in Tbilisi, Georgia. Representatives from international and local organizations participated, including representatives of the authorities of Georgia the Emergency Management Agency under the Ministry of Internal Affairs, the Ministry of Education and Science, the Ministry of Sport and Youth Affairs, the Ministry of Labour and Health and Social Affairs. ‘Saving lives and livelihoods by preparing for natural disaster’ has been the core principle of the European Commission’s disaster preparedness programme “DIPECHO” since 1996. “We are happy to contribute to the DIPECHO programme for 20 years that helps to prepare people to natural disasters and increase their resilience to emergencies. Disaster preparedness and recovery are essential to saving lives”, said Juha Auvinen, Head of Unit of the DirectorateGeneral for European Civil Protection and Humanitarian Aid Operations The fourth phase of the programme to “Improve Resilience of Communities and Institutions in the South Caucasus” has recently started. This programme funded by the EU and managed by its Directorate-General for European Civil Protection and Humanitarian Aid Operations (ECHO) is implemented in cooperation with four partner organizations: the Danish Red Cross (implementing partner Georgian Red Cross Society), Oxfam, Save the Children, and ArbeiterSamariter-Bund Deutschland (ASB). The programme aims at increasing resilience and reducing the vulnerability of communities and local institutions in areas prone to natural hazards, with a special emphasis on children, women and youth. It hopes to boost the local capacities of communities to better prepare for and respond to disasters. In addition it
will further develop disaster management and risk reduction in education and national security planning. The concerted efforts of all partners involved in the implementation of this programme will also strengthen cooperation among stakeholders and foster the sharing of best practices in disaster risk reduction and climate change adaptation. The programme is implemented in close coordination with the government of Georgia as well as regional and local authorities to encourage the development of DRR policies and legislation for disaster risk reduction and sustainable programme interventions. About EU Humanitarian Aid and Civil Protection The European Union and its Member States are the world’s leading donor of humanitarian aid. Relief assistance is an expression of European solidarity towards people in need all around the world. It aims to save lives, prevent and alleviate human suffering, and safeguard the integrity and human dignity of populations affected by natural disasters and man-made crises. The European Commission ensures rapid and effective delivery of EU relief assistance through its two main instruments: humanitarian aid and civil protection. The Commission, through its humanitarian aid and civil protection department, helps over 120 million victims of conflict and disasters every year. With headquarters in Brussels and a global network of field offices, the Commission’s humanitarian aid and civil protection department provides assistance to the most vulnerable people solely on the basis of humanitarian needs. Launched in 1996, the Disaster Preparedness ECHO programme (DIPECHO) is the core element of ECHO’s DRR global efforts, in which it has thus far invested €325 million. The key goal of the programme is to increase communities’ resilience and reduce their vulnerability. DIPECHO is a people-oriented programme, helping communities at risk of disasters to better prepare themselves by undertaking training, establishing or improving local early warning systems and contingency planning. It also encourages citizens, civil society groups and local, regional and national authorities to work more effectively together.
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PUBLICITY
October 17, 2016 #165
October 17, 2016 #165
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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October 17, 2016 #165