Caucasus Business Week #191

BUSINESS WEEK

DISTRIBUTED FREE OF CHARGE

caucasus1

May 8, 2017 #191

May 8, 2017, Issue 191 - www.cbw.ge

Analytics Service as Investment in Crisis

Company SOCAR Becomes Liquid Gas Monopolist

Pg. 9

Tata Morchiladze: Everyone Could Study PR but Hardly use it

Pg. 6

Pg. 8

Food Products Market Leader Breaks with Bank of Georgia JSC Nikora, Georgia’s biggest trading network and food products major manufacturer, has ceased all banking relations with Bank of Georgia and closed its bank accounts. Nikora company has officially confirmed this information. At the same time, Nikora abstained to unveil reasons for disrupting contacts with Bank of Georgia.

«We confirm that the company has annulled all accounts in Bank of Georgia and moved to TBC Bank. We do not unveil additional details», the Nikora representatives said. Bank of Georgia also prefers to keep silent on the mentioned issue.

It is worth noting that Georgia’s retail trading market leader Nikora had 15-year history of cooperation with Bank of Georgia.

Consequently, unexpected termination of multi-year cooperation raises certain questions.

Medical Tourism Perspectives in Georgia

Pg. 4

Aviation Development Starts in Georgia

Pg. 7

Over the past years Government of Georgia has been spending considerable state budget funds on development of domestic and small aviation sectors. Domestic airports are being built, including Ambrolauri Airport (14 million GEL investments) and Mestia airport (20 million GEL investments); Government has also announced plans for constructing a domestic airport in Akhalkalaki, Tusheti, Zugdidi and Omalo.

Despite the mentioned projects, the existing situation hampers development of domestic air companies. ServiceAir is an only company that performs domestic flights from Natakhtari airport to Mestia and Ambrolauri Airports.

The company is subsidized from state budget, because this direction of aviation is not profitable.

Other airlines do not show interest in domestic flights. High tax rates at Tbilisi and Batumi airports make these directions unattractive for Georgian air companies.

Pg. 11

2 GOVERNMENT

NEWSROOM World Bank supports Georgia to carry out reforms with €47.2m This financial assistance will help Georgia to improve budgeting and fiscal oversight of public institutions, as well as the quality of social services for citizens.

Israeli Companies to Spend 50 mln USD on Arranging Fish Farms in Georgia Partnership Fund of Georgia has signed an understanding memorandum with two Israeli companies – Aquamaof Aquaculture Technologies and JVS I.G. Capital Investment.

ECONOMY

Georgian Economic Growth Accelerates to 5 pct y/y in Q1 Georgia’s economic growth accelerated to 5 percent year-onyear in the first quarter of 2017 from 2.3 percent in the same period a year ago. helped by a rise in exports and by remittances from Georgians living abroad.

Cargo Shipping in 1Q17 Marked 8.7 million Tons The cargo shipping volume has not changed year on year.

In the reporting period, seaports and sea terminals handled 4.3 million tons of cargo and 88.210 TEU containers, upturn year on year.

BANKING

Liberty Bank’s More Than 13 mln Shares were Alienated It should be noted, that it is the largest transaction fixed after February, 2016. Liberty Bank has placed 5,502,254,354 shares, respectively transaction is made on 0.23% of bank’s shares.

LSE Deals on TBC Bank Shares Double A total of 927 000 shares of TBC Bank (TBCB LI) were traded at London Stock Exchange (LSE). The volume of deals has doubled.

At the end of the trading week, the price per share marked 16.25 GBP (+6%w.w; +8.3% m.m).

BUSINESS

Wine Export Increased by 207% in China According to Wine National Agency, 18,4 million bottles of wine are exported in 39 countries worldwide through the first 4 months of the year, the figure exceeds by 59% comparing to the same period of the previous year.

Average Price of New Apartments Drop by 7% Year on Year Transactions on new apartments in the first quarter surpassed transactions on old apartments in terms of quantity and value. About 120 million USD transactions were recorded on new apartments.

COMPANY

Capital of SOCAR Georgia Petroleum Increased by 60 mln USD “SOCAR Georgia Petroleum” is the largest oil product importer and has the biggest petrol station chain on the Georgian market.

May 8, 2017 #191

Central Bank increases refinancing rate to 7% to deal with inflation

T

he National Bank of Georgia (NBG) has decided to increase its refinancing rate in response to expectations of increased inflation.

The Monetary Policy Committee (MPC) of the Bank met today and decided to increase the refinancing rate by 25 basis points to seven percent.

The NBG said the monetary policy decision was based on the macroeconomic forecast, according to which, due to the supply side pressures, inflation is expected to be above its target rate during 2017.

Nevertheless, once the effect of one-time factors affecting [annual] inflation is exhausted, the inflation rate is expected to decline at its target level in 2018. Moreover,

by increasing the policy rate, the National Bank of Georgia intends to control inflation expectations,” said the Bank.

Georgia’s monthly inflation amounted to -0.5 percent in March, while annual inflation (Consumer Price Index change) increased 5.4 percent.

Other things equal this year, a further increase in the policy rate is not expected. With the elimination of the impact of the aforementioned one-time factors, the inflation will start declining and will stay close to the target in the medium term; the policy rate in the medium term is expected to gradually decrease to its neutral level,” the Bank added.

The NBG explained this year that

the factors affecting the demand side of the consumer prices are still weak, although economic activity has improved.

Economic growth in the first quarter is five percent. Following the economic recovery of the main trading partners, the external demand has surged, significantly increasing the revenues from tourism and exports. Moreover, compared to the previous year, the volume of remittances has grown,” the Bank said. The NBG will continue to monitor developments in the economy and financial markets and will use all available instruments at its disposal to ensure price stability. The next meeting of the Monetary Policy Committee will be held on May 4, 2017.

EBRD, EU and TBC Bank to Help Georgian Companies Grasp New Trade Opportunities

U

S$ 100 million equivalent in local currency will finance SME development.

The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) are expanding their joint programme with TBC Bank to support the development of small and medium-sized enterprises (SMEs) in Georgia by adopting EU standards to make them more competitive on international markets, thus allowing them to benefit from the opportunities offered by the Deep and Comprehensive Free Trade Area (DCFTA) between Georgia and the EU. The EBRD is extending a loan of US$ 100 million equivalent in lari (GEL), the local currency, to TBC Bank to support the development of local SMEs. This package will be split into three allocations: one of up to US$ 60 million local currency equivalent to help businesses converge with EU standards and take advantage of the free trade opportunities with the EU; one of up to US$ 20 million equivalent for SME finance to help the development of the private sector; and another of up to US$ 20 million equivalent to support businesses managed or owned by female entrepreneurs. The funds will be on-lent to private sector clients by TBC Bank.

An EU contribution of €19 million (approximately GEL 50 million) will serve to provide investment

BUSINESS WEEK caucasus

The Editorial Board Follows Press Freedom Principles Publisher: LLC Caucasian Business Week - CBW Address: Aleksidze Street 3 Director: Levan Beglarishvili; Mob: +995 591 013936 Sales: Mob: +995 558 36 61 07 WWW.CBW.GE Email: caucasianbusiness@gmail.com

grants, technical assistance and training to partner financial institutions and enhance the ability of local banks to accept the risk related to SME lending.

The EU supports private sector development in Georgia through its EU4Business initiative, which helps SMEs to benefit from the DCFTA by improving the business environment, increasing the knowledge and skills of businesses and by supporting SMEs to get better access to finance. The EU4Business-EBRD credit line is a joint EBRD-EU initiative to help SMEs finance investments. The two partners work together for private sector development in Eastern Partnership countries, notably with the EBRD’s Small Business Support programme, which has benefited from an EU contribution of €18 million (GEL 48 million), as well as the Women in Business programme with EU contribution of €5 million (GEL 13 million). The EBRD’s finance to support female entrepreneurs is also supported by Sweden and the Early Transition Countries Fund.* Bruno Balvanera, EBRD Director for the Caucasus, Moldova and Belarus, said: “We are pleased to expand our support to small entrepreneurs in Georgia. The DCFTA is an agreement that will shape Georgia’s future. This financing facility, which we launched today, will drive and motivate local businesses to take one step further and become more competitive on

regional markets. We would like to express our gratitude to our longstanding partner the European Union for their cooperation in areas of critical importance for the development of Georgia.”

Janos Herman, Ambassador of the European Union to Georgia, said: “SME development is crucial for job creation and economic growth.

We are therefore glad to extend our cooperation with TBC Bank, so that more Georgian SMEs can benefit from free trade opportunities with the European Union. Access to finance in local currency is a much-needed step in this direction and EU grant contribution will allow for affordable investments to bring production in line with EU standards.”

Vakhtang Butskhrikidze, CEO of TBC Bank, said: “We are happy to be continuing our partnership with the EBRD and the EU. Long-term local currency financing is extremely important for the Georgian financial sector and we are proud to be the beneficiaries of such a complex transaction. This credit line will help TBC Bank to strengthen our leading role in the Georgian market.”

With its local presence and 25 years of experience in working to develop the private sector in Georgia, the EBRD is in a strong position to successfully promote this new loan. The EBRD is the largest institutional investor in Georgia and to date has invested over €3 billion in the country.

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

May 8, 2017 #191

PUBLICITY

3

4

ECONO-MIX

Food Products Market Leader Breaks with Bank of Georgia

Georgia Comes behind 100 Countries in terms of Living Standards

‘‘

Merab Janiashvili Economic Analyst

According to information of International Monetary Fund, in 2017 global economy rose by 3.5%, economy of developed countries increased by 2%, while economy of developing countries rose by 4.5%.

Nikora Ceased Cooperation with Bank of Georgia and Moved to TBC Bank JSC Nikora, Georgia’s biggest trading network and food products major manufacturer, has ceased all banking relations with Bank of Georgia and closed its bank accounts. Nikora company has officially confirmed this information. At the same time, Nikora abstained to unveil reasons for disrupting contacts with Bank of Georgia.

«We confirm that the company has annulled all accounts in Bank of Georgia and moved to TBC Bank. We do not unveil additional details», the Nikora representatives said. Bank of Georgia also prefers to keep silent on the mentioned issue.

It is worth noting that Georgia’s retail trading market leader Nikora had 15-year history of cooperation with Bank of Georgia. Consequently, unexpected termination of multi-year cooperation raises certain questions. According to certain information, Bank of Georgia may have violated ethics of business relations, but both parties refrain from unveiling specific details.

Nikora was founded in 1998 by Georgian capital and for more than 18 years the company remains the food products market leader. Currently, the company holding unites meat products, semi-finished goods, fish, dairy products, ice-cream, pastry, salads, frozen confectioneries and wine enterprises. Moreover, InTrade, one of the subsidiaries of Nikora is an exclusive importer of a lot of food products and beverages to Georgia.

Today the company owns a regional enterprise in Poti, trout farm in Ozurgeti and cattle farm in Gardabani District. Moreover, Nikora was the first company in Georgia that started developing a brand network and distributing products in its own stores.

Nikora is the largest network on Georgian market with more than 200 supermarkets. Besides supermarkets operating under the brand of Nikora, the Holding also owns Nugeshi, Libre and Sunday trading facilities. The company manufactures and sells about 500 varieties of products and employs about 4000 citizens.

Nikora has obtained quality management and food safety international certificates: ISO 9001 : 2008; ISO 22000 : 2005 .

It should be noted that Nikora is not the first major business that has faced problems in cooperation with Bank of Georgia. We can recall other histories of several companies, which ended their cooperation with Bank of Georgia with fatal outcomes. For example, Imedi L insurance company was a successful company until it took a Bank of Georgia loan in 2010 for

‘‘

According to International Monetary Fund (IMF), in 2016 averaged annual income per capita in Georgia made up 10 044 USD, based on purchasing power parity (PPP).

This indicator makes Georgia 108th worldwide among 190 countries. The country ranked 108th in 2015 too. According to IFM forecasts, in 2017 income per capita in Georgia will rise to 10 645 (PPP).

Annual averaged income per capita is the widespread indicator for estimating country wealth and economic development. When we compare various countries, the so-called international dollar (PPP) must be used to measure incomes. This instrument implies factor that the Dollar has various purchasing power in various countries.

According to 2016 IMF report, the highest income per capita (PPP) is recorded in Qatar – 127 660 USD. Luxembourg is second with 104 000 USD. Central African Republic is the poorest country with annual 684 USD. In our neighborhood, annual income per capita is 26 490 USD in Russia, 24 900 USD in Turkey, 17 440 USD in Azerbaijan, 8 621 USD in Armenia and 8 305 USD in Ukraine.

According to IMF information, the list of countries with the highest income per capita in 2016 is as follows: Country USD (PPP) Qatar - 127 660 Luxembourg - 104 000 Macau - 95 151 Singapore - 87 855 Brunei - 76 884 Kuwait - 71 887 Norway - 69 249 Ireland - 69 231 United Arab Emirates - 67 871 Switzerland - 59 561 It should be noted that Georgia comes behind almost all European countries in terms of GDP per capita, excluding Moldova and Bosnia Herzegovina.

At the same time, Armenia and Ukraine are behind Georgia in the same category, however, it is also worth noting that several African countries are richer than Georgia.

As noted above, according to IMF indicators, in 2016 annual averaged income per capita in Georgia marked 10 100 PPP Dollar and this figure brought Georgia behind 11 African countries.

According to the 2016 IMF report, Equatorial Guinea is the richest African country with 39 699 Dollar income per capita. Guinea is rich of oil. Seychelles come second with 28 148 Dollars. Seychelles is a small country on island with about 100 000 residents. Before 1976 it was a colony of France and today it is one of the best places for nautical tourism. Mauritius is third with 20 5252 Dollar. It is a small country on island that was a British colony before 1968. The country has high-developed tourism sector. African countries richer than Georgia in terms of income per capita due to PPP Dollar are as follows: Equatorial Guinea – 38 699; Seychelles Islands – 28 148; Mauritius – 20 525; Gabon – 19 252; Botswana – 16 948; Algiers – 14 950; Libya – 14 236; South Africa – 13 179; Egypt – 12 137; Namibia – 11 756; Tunis – 11 657.

According to IMF forecasts, in 2017 in Georgia income per capita will rise to 10 645 (PPP). Developed economies will grow by 2% and developing economies will rise by 4.5%. Several weeks ago IMF reduced Georgia’s economic growth forecast for 2017 to 3.5% from 5.2%. In 2016 Georgia ranked 98th worldwide with 2.7% economic growth, while the country occupies 75th place due to the 2017 forecast (3.5%).

According to IMF forecast, Georgia’s planned economic growth forecast in 2017 comes behind economic growth forecast for averaged developing countries. Under IMF prognosis, economic growth will record 3.5% in 2017, down as compared to Georgian Government’s forecast.

Today Georgia’s GDP per capita is 7-8 times smaller compared to averaged European level. Provided EU economy grows by annual averaged 2%, our economy must increase by at least 7-8% every year.

Even amid 5% averaged economic growth, Georgian economy will be twice smaller than averaged European economy after 50 years. To come up with EU level in 50 years, our country needs at least 7% and higher economic growth. 7% Economic growth will enable us to come up with European living standards in 40 years, while 10% growth will take only 25 years. We remind you that government’s economic growth forecast is 4%. In January 2017 GDP growth constituted 5.2%, February – 4.4% and March – 5.3%.

May 8, 2017 #191

building a hospital in Ajara. Before this deal, for many years Bank of Georgia had taken multiple efforts to unite Imedi L with its subsidiary Aldagi insurance company, but in vain.

In 2012 Imedi L was one of the leaders of insurance market and the company had no financial problems, but in May of the same year the company management sold the firm to Aldagi BCI for 8 million GEL. According to estimations of experts, the deal value was far lower as compared to the real price of the company.

Interesting stories were also recorded between development companies and Bank of Georgia.

After the 2008 war the Bank raised interest rates on loans issued to development companies, suspended approved credit lines, set other enslaving requirements. In the end, Bank of Georgia became a major owner of real estate.

Later, it founded M2 development company.

For example, we can also recall the history with Olympic Star. Starting 2008 Olympic Star was fulfilling obligations before Bank of Georgia due to all rules and laws and the company’s debt was minimized. Despite this, Bank of Georgia started revising the loan conditions in the heaviest period and raised the interest rate from 16% to 18%. After the Georgia-Russia war, the bank suspended credit line to the development company.

In 2009 like all other developers, Olympic Star was also facing problems and therefore, the company decided to take part in Old Tbilisi’s New Life project. Bank of Georgia managed to implant Presto mediation company into the development company in exchange for a loan.

Presto started raising 3% from each sold apartment and 25% from each sold commercial space.

This is only a small part of the histories of cooperation of major business companies with Bank of Georgia. Consequently, it is not surprising Nikora has ceased multi-year cooperation with the major bank and given preference to TBC Bank.

It should be also noted that after TBC Bank bought Bank Republic’s 94% stake in September 2016, it became number one bank in Georgia in terms of deposits and loans, while Bank of Georgia still maintains leading position in terms of assets. However, the ongoing developments show that TBC Bank plans to take leading position in all components. Naturally, Nikora’s moving to TBC Bank will make positive effect on TBC Bank’s reputation and, on the contrary, Bank of Georgia reputation will be considerably shaken.

“At this stage I do not know the final answer, but it might be 300-350 million. We have signed an agreement on 100 million USD with TBC Bank. We already have similar agreements with “Bank of Georgia” and other agreements.

We are working out several types of individual projects in the tourism sector, agriculture, food industry and clinics.

All these projects are very important. Our second most important priority is the energy sector and we are working hard on preparing large and medium hydropower projects, as well as some renewable energy projects”

Bruno Balvanera Regional Director of the EBRD

May 8, 2017 #191

PUBLICITY

5

6

May 8, 2017 #191

Competition Agency Finishes Examination of Poti Seaport Case Competition Agency explains that implementation of a new scheme for handling containers under the current plan of Poti Seaport will violate Georgian law on Competition. However, the examination has not confirmed that Poti Seaport had misused dominating situation, because the new scheme has not been applied for handling containers.

At the same time, for the purpose of healing competitive environment and ensuring Poti Seaport safety and efficiency, the agency has forwarded due recommendations to Poti Seaport, and Poti Municipality.

We remind you that a year ago 14 terminal companies appealed against Poti Seaport plans for introducing joint tariff system. Based on the mentioned appeal, the court suspended the mentioned scheme in summer 2016.

BP Plans to Complete Georgian Section of SGC by mid-2018

Becomes Liquid Gas Monopolist In 2017 the excise tax rate increased on oil products and this fact has already made significant changes on Georgian automobile market. After the mentioned tax amendments, the demand for hybrid vehicles increased at once, first of all.

H

igher excise tax rate also raise the value of vehicle gas CNG considerably, which is used by almost 40% of vehicles registered in Georgia. Prices increased by averaged 20 Tetri. According to the field experts, this growth dropped drivers’ interest this product. In this situation, a part of drivers decided to return to liquid gas LPG, forgotten many years ago. This fuel is an only oil product on which excise tax has not increased. Consequently, if one cubic meter of CNG costs 1.50 GEL, the price of one kilogram of LPG is about 1.20 GEL. Analyst Beka Kemularia makes focus on efficiency of fuel. In the existing situation liquid gas genuinely has technical characteristics that enable to offer real competition to natural gas.

“First of all, we should note that the same volume of fuels generates the same energy in vehicles. This signifies that liquid gas has the same effect for vehicles as petrol. Moreover, it is very easy to replace the natural gas system by liquid gas system in vehicles. As to safety issues, it is much more safer than natural gas.

The price was an only problem for many years. In that period, liquid gas was more expensive than natural gas. Growth in excise tax and making oil products market open have removed this problem. We know that under the ruling of the previous Authorities, oil products market was

represented by only five companies and those companies, under the umbrella of the previous Authorities, did not enable any other company to enter the market. It should be also noted that, in due time, the people, who used to control fuel market, thought that liquid gas could compete with natural gas. I suppose artificial barriers were introduced to prevent liquid gas to enter the market. Today the mentioned factors have been neutralized to a certain degree and I believe liquid gas has good perspectives”, Kemularia noted.

AYFB Vice President Paata Bairakhtari also agrees on this opinion. Liquid gas sector was narrowed because of artificial barriers, he said.

“This is a very sensitive issue, because, in due time, the then Authorities created artificial barriers so as liquid gas consumers had to give up liquid gas consumption. To be more precise, in that period, all liquid gas importer companies were blocked and this factor badly affected price policy and liquid gas price considerably increased as compared to natural gas.

It should be also noted that only SOCAR was enabled to continue operation as liquid gas importer, but SOCAR’s product used to smell so badly that consumption of this gas in vehicles was impossible”, Bairakhtari noted.

However, currently, liquid gas has genu-

inely good perspectives, he said.

“After growth in excise tax rate, natural gas price considerably increased, but hybrid vehicles are too expensive for that category of our citizens, who consume natural gas.

Therefore, liquid gas will be a good solution for similar drivers. However, this is a midterm perspective and it will take certain period to arrange various infrastructure and fueling stations”, Bairakhtari said.

Concerning the issue, Union of Oil Products Imports noted that at this stage liquid gas cannot compete with natural gas, however, mass consumption of liquid gas should not be ruled out, based on European experience. The Union President Vano Mtvralashvili explained that liquid gas is prioritized in many countries because of its quite good technical characteristics. “This is an issue of far perspective, because natural gas is a quite popular product in Georgia and 35-40% of vehicles use natural gas. Moreover, only several liquid gas fueling stations operate in the country. However, despite lack of due infrastructure, vehicle owners will strive to move to liquid gas systems because of price difference. I also want to note that liquid gas is a very popular product in EU countries. In Turkey 70% of vehicles work on this product, because liquid gas is considered to be a high-quality product and it does not harm environment. As to technical characteristics, liquid gas rules out explosive cases, in practice”, Mtvralashvili said.

In the course of time, moving to liquid gas system will become an irreversible process, he said.

“This process will become irreversible, because retail prices are very low. Moreover, the interest in LPG will increase because our vehicle importers convey used automobiles from Germany and a major part of them are equipped with liquid gas systems. In this case number of vehicles will grow if quantity of liquid gas fueling stations goes up”, Mtvralashvili noted.

BP plans to complete the Georgian section of the Southern Gas Corridor (SGC) by mid-2018, said the company’s country manager for Georgia Chris Schlueter.

The Georgian part of the project includes the construction of two compressor stations, a 65-km pipeline and a metering station near the Turkish border. Work on the pipeline has finished, with one compressor station 95 percent ready and the other compressor station 55 percent complete, Schlueter told Reuters. Construction of the metering station is underway, he added.

Georgia on purchase of Azerbaijani gas in 2017 Georgia won’t increase the purchase of Azerbaijani gas in 2017, despite the refusal to purchase Russian gas, Georgia’s Deputy Minister of Energy and Natural Resources Mariam Valishvili told Trend.Valishvili noted that in 2016, the supply of gas from Azerbaijan to Georgia increased by nearly 100-150 million cubic meters and there is no need for additional gas volumes, as the supply of the above-mentioned volume will completely meet Georgia’s need for gas in 2017.

Earlier, Georgia’s Energy Minister Kakha Kaladze said that no deals will be concluded to purchase Russian gas until late 2017 and since April 2017, Georgia will completely switch to supplying the population and enterprises with gas from Azerbaijan.

7

May 8, 2017 #191

Ratio of foreign patients of the clinic is 10-12%.

Namely, childless couples come from Turkey, Iran, Arab countries, Russia, Ukraine. According to the reproductive scientists, there are a number of laws in Georgia that, unlike other countries, are liberal and make the field more attractive.

MEDICAL TOURISM PERSPECTIVES IN GEORGIA M

edical tourism has been developed at the highest level in many countries, including in Thailand, Egypt, Turkey, Israel. Thousand of tourists visit these countries every year. This interesting direction of tourism has real development perspectives in Georgia too, even more so, our country was always famous for its special spa resorts.

Georgia is rich of spa, ski and sea resorts. There are 103 resorts and 182 resort places in the country, according to verified reports.

Despite huge development potential, some of these places are left without due attention and therefore, they have ceased existing as resorts, in practice.

Tourism sector representatives assert that there are many unique and special places in Georgia in this respect.

The Caucasus Business Week (CBW) has examined medical tourism development perspectives in Georgia.

The head of Archil Khomasuridze Institute of Reproductology talks about the field development. As to commercial potential, reproductive health is the key direction in medical sector in this respect, Archil Khomsuridze said.

Consequently, medical tourism has huge perspec-

tives. Several years ago Zhordania Institute had plans for arranging its own hotel, but the project implementation was protracted, because the Authorities of Saakashvili expelled Reproductology Institute from Zhordania Clinic. The institute managed to restore operation only 4 months ago, Khomasuridze said.

Ratio of foreign patients of the clinic is 10-12%.

Namely, childless couples come from Turkey, Iran, Arab countries, Russia, Ukraine. According to the reproductive scientists, there are a number of laws in Georgia that, unlike other countries, are liberal and make the field more attractive. Consequently, the services are cheaper and that’s why foreign patients show interest in our services, Khomasuridze said.

Over the past years, nothing has changed in this country to improve the situation in this sector. Georgian People should change worldview, first of all, and education and information awareness level should be also improved, he said.

Travel companies and medical sector should unite efforts to develop medical tourism in the country, Khomasuridze pointed out. «So far they cannot realize that this direction has huge perspectives in Georgia. Huge job should be performed to valuably develop tourism direction in Georgia. However,

medical tourism development needs other components too. Travel companies and spa resorts should cooperate. Naturally, due infrastructure should be also arranged», Khomasuridze noted.

Nata Kvachantiradze, head of Georgian Tourism Association, explains that medical tourism is a genuinely interesting direction and it is very popular in various parts of the world. There are countries, which has attained much success in this field, she noted.

«We are happy that last period medical tourism popularization has intensified in our country. The Caucasus, including Georgia, is rich of mineral and thermal waters and this enables us to develop spa resorts in many regions. Resort zones are special in this respect that exist almost in all parts of Georgia», Kvachantiradze noted. Medical tourism cannot be developed without development of medical sector. One thing is also very important: comfort and infrastructure.

We have very good resorts, but huge job should be performed in this direction anyway, she said.

«Many resorts satisfy highest standards – Sairme, Borjomi, Tskaltubo – these places are loaded maximally over the past years», Kvachantiradze pointed out.

Development of various spa resorts would be wonderful, as well as arrangement of due infrastructure and these activities should create main preconditions for attracting tourists, she noted. Medical tourism development is one of the priority directions for private sector and state structures also support these activities, she added.

Georgia has much potential for medical tourism development, Kvachantiradze said.

«Medical tourism does not imply only accommodation of people at resorts, it also includes medical component. At this stage, members of Georgian Tourism Association have engaged in various activities. We offer various services to our consumers. In March we were invited to one of the major tourism exhibitions in Italy (sports and medical directions). We met with many partners there, signed contract agreements and this signifies number of visitors will increase in Georgia», Kvachantiradze noted. At this stage, medical tourism is being developed in Georgia and the existing infrastructure cannot satisfy international standards, she said.

Giorgi Utiashvili, head of Akhtala spa resort, explains that medical tourism has huge potential in Georgia, but infrastructure should be developed, first of all. Regretfully, many spa resorts lack for due infrastructure, he added. There are many investors interested in spa resorts development in Georgia, but at the final stage all of them refrain from investing money in this field, Utiashvili noted.

At this stage, Akhtala remains in state ownership and no investor has showed interest in its development.

In 2012-2013 the resort neighboring territory was rehabilitated, but nothing more has made since then.

Despite outdated infrastructure, visitors arrive in the resort on season anyway (June-November), including Georgian citizens, tourists from Russia, Azerbaijan, Israel and European countries. The resort rehabilitation plan has been prepared and now investor should be attracted, Utiashvili noted.

“There is much interest, but they come and go, without bringing specific proposals. A good sanatorium should be arranged with a good hotel and canteen, bathroom, mud treatment should be automated. However, no investor has appeared.

The Authorities take efforts, invite investors, but it is impossible to enforce someone to make investments”, Utiashvili said and added that about 8-10 million USD investments are required to develop Akhtala resort. Averaged daily price is 70 GEL per person in Akhtala with three meals a day, mud treatment, physiotherapy, he added.

Akhtala was included in privatization list in 2015.

Today, National Agency of State Property says that 99.68% stake of the facility has been put out for privatization for 4 340 405 GEL. According to the Agency information, an investor must arrange at least 80-suite hotel, maintain medical profile and invest 6 million GEL. Rehabilitation of Akhtala resort located in Gurjaani started in April 2012 after World Bank allocated 3.5 million GEL loan. The new park will include a cycle and running tracks, children playground, recreational zones and training equipments.

Akhtala is an only resort for mud treatment in Georgia.

Akhtala mud fits for healing bones and joints, peripheral nervous system, gynecological, dermatological, urological and other diseases.

8

PR PERSON

May 8, 2017 #191

Everyone Could Study PR but Hardly use it

Interview with Tata Morchiladze, PR and Marketing Manager for inndesign.ge.

- Who are you by profession?

- I hold a MA degree in diplomacy and international relations, but I have never worked by this profession.

I have worked on various interesting projects, on various positions until I found out that I liked public relations very much and I could succeed in this direction.

Therefore, I decided to continue my career in this field and passed various training courses in PR and Marketing. On January 3, 2009 I was appointed a PR manager for Akhali Nateba company. Since then I have mainly worked on the same position for various companies.

- First job place.

- The first job is the most memorable experience. This period was coincided with my studentship years. I and several my friends, who knew English, were selected for one of the projects, which was being implemented by order of Central European University (CEU). One of the invited lecturers was leading the project. Objective of the project was to explore national, linguistic and religious minorities in the country and we had to pay visits to Ajara, Samtskhe-Javakheti and Lagodekhi.

This was a very interesting job and we gained huge experience from this project. We used to summarize collected materials and prepare reports. Based on those materials, we also published a book in English language. I was a co-author of this book.

- Current job and position.

- Currently, I have been working as PR and marketing manager for inndesign.ge. I have been also working for digital marketing department of InkyGold, a women and children clothes company founded by a Georgian designer. inndesign.ge – is the first Georgian digital catalog that collects information on all Georgia-based companies in architecture, design, housing and repair sectors.

The catalog unites database of Georgian designers and architects. We also have a blog, where interested bodies are able to see various articles with advices and recommendations in various repair and accommodation issues.

- Your first success.

- It is difficult to talk about success. The success is when you love your business and spend huge energy, working potential, time and other resources on this business. Success comes only in this case. The success is when the society sees your efforts and positively appraises them.

To a certain degree, the success is to attain the goal and my first success was when I started working for Akhali Nateba company and grew into a PR specialist there. I and the whole team passed gained huge experience in this company. We were oriented only on best results.

This was a way from 4 stores to 15 stores, to many brands, to a great number of very kind and responsible projects. Therefore, I believe that my first success was the working with such a team and company.

- Business, project that you take pride in even today - I love working on «kind» projects, especially in CSR direction and I take pride in all CSR projects implemented by me. However, I think my blog is one the

“

I think excellent communication skills are required, first of mall. You should be careful and detailsoriented. All these factors are very important for PR specialist.

Continuous development is also very important.

best projects I have done ever.

Despite I ceased active writing 2 years ago, the Taa. ge- has huge influence on my life anyway. I have found a lot of people and gained much experience from this blog. There were years, when we, interested people, used to assemble around Taa.ge blog posts to share knowledge and experience to each other on fashion, beauty, travel, life. To be true, I regret very much I cannot write actively again. A long break has narrowed the circle of readers and active discussions are not held any more. However, I try to share interesting events even to separate persons, who even today visit the blog.

- Field, where you would never work.

- I think there is a field in everybody’s life, where he/ she would never work. Everything depends on specific lifestyle. I personally like active jobs, where you seek novelties every time, permanently move and keep contact with other persons. I think I would not work in financial departments, I would not withstand figures every day. I would not work there, where I would had to do the same things from morning to evening without changes.

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

- I think excellent communication skills are required, first of mall. You should be careful and details-oriented.

All these factors are very important for PR specialist.

Continuous development is also very important. Today everything changes at high paces and yesterday’s knowledge may be absolutely useless today. Therefore, you should permanently try to be in the center of all developments and be oriented on innovations.

- Is it possible today in Georgia to study PR very well or international knowledge and experience are necessary?

- The more knowledge and experience you have, the better it is. However, one may study PR in Georgia too, but this knowledge will be useless without due skills.

Foreign education and experience is very important for development, but this does not signify that domestically-educated specialists bring less benefits. There are trainings courses led by foreign specialists in Georgia, online courses. We also have trainers with foreign education, who can train students very well.

- Is PR understood and perceived in Georgia in its classic form?

- In our epoch processes are being developed at cosmic paces. Approaches, teaching methods, PR methods change. Everything changes in PR field too. There were times, when the importance of PR was ignored, then a certain boom started in PR field. Today, all successful companies have PR departments and this office does not imply only media relations, like previous years. It has become a more complex and interesting direction.

- How easily can you settle crisis situations and take decisions? Do you think crisis situations worsen quality of working process?

- Crisis management and taking due decisions is one of the most important components of this profession.

This is an absolutely ordinary moment in the life of

companies. I am sure a correct and well-organized plan is the most important factor in this situation. Like all my colleagues, I had crisis situations in working process and we have taken right decisions that have brought positive results for the company.

- Interesting episode that has changed your life.

- I cannot name any episode or anybody that have changed my life. In various periods various people (for example, my children) and various job experiences make certain influence on a person. However, I cannot remember any special episode that have radically changed my life. It was very interesting for me to read lectures at Natali Academy, where I used to work as an executive director. In parallel regime, I used to read lectures in Communications for students of a stylist training course.

I love this experience very much. This is a very interesting profession and teaching and sharing knowledge to future generations is the most interesting direction.

- If not this profession, which field would you work in?

- I would be happy to work on a diplomatic position. I liked this profession from my childhood and therefore I graduated MA courses in diplomacy. In parallel regime, I have also studied two foreign languages. But after university graduation I did not continue career in this field and decided to follow other direction.

- What are your strong personal features and characteristics?

- Punctuality, motivation, aspiration for studying new things and striving for self-development are my close friendly features.

- How does your employer company benefit you?

What factors make it interesting for you?

- Inndesign.ge was founded by me and my colleagues jointly. Initially, a new idea arose, when I was pregnant.

Since I had high-risk pregnancy for a certain period, I had to stay at home and I was actively working on transforming this idea into a project. As a result, this idea became a real business in 6-7 months and on March 2 we marked two anniversary since our foundation in online space. We have very interesting partners.

We make quite interesting and useful suggestions thanks to these partners.

We help people save much time, who want to start repair works, search architects and designers or accommodate their apartments.

This is a very interesting field for me and consequently, we do our business with much interest.

- What makes major discomfort in the working process?

- Uncertainty is major discomfort in our business; companies that delay response, when you have to communicate with several persons in the same company on the same theme. This is the heaviest process and frustrates business.

- Where do you see yourself after 20 years?

- All new stages in my life bring more and more experience, more comfort, more challenges. I think after 20 years I will be a director of my own company. I had many interesting ideas in this direction and I think the time has come to more actively work in this direction.

9

ANALYTICS

May 8, 2017 #191

Service as investment in crisis Or (How to make money on service during the crisis) Georgia is a country-consumer, “food” basket is almost fully formed by means of the imported products, the prices of which are linked to the U.S. currency. The government offers various options to end the crisis and bring the national currency in feeling, but at the time being the businesses have to tighten the belt and save money. Georgian companies are starting to cut back the most inconsequential, in their view, expenditure lines. They start saving on the service, where they did not really spent money in good times. But in fact, according to the international statistics, the companies lose more than 20% of the income, if they are not able to provide quality service. And 68% of people that were poorly served, tell that to the friends and acquaintances providing a negative “word-of-mouth”.

The service is directly correlated with the sales growth because 53% of clients are willing to pay more for the goods if they receive a quality service. 76% believe that the service is a measuring factor of how the company values them.

FORGOTTEN SERVICE Expert, Director of Development at Georgia international research company 4Service Group George Tsintsadze said that nobody in the country is aware until the end, that the service can boost the sales or improve the state of the business.

“Business owners believe that the service is a luxury, a way to show how cool is the company. But nobody considers the quality of service as a tool to increase sales. We have only a few companies with a good service, but mostly there are no service at all”.

George associates this with the fact that the local companies often have a lot of processes that are not established, but not just the system service building. A vivid illustration is the situation with banks in Georgia. In general, the banking sector (as well as the other) has only a few of the largest and most successful players - market leaders who are really doing something, introduce new products, and all the other companies simply copy them.

“People choose by the offered products. We have several banks that have good Internet banking,

most favorable price range, and many locations. If all banks offer the same product and all our banks would have the same number of locations, then maybe people would have started to choose them for the service. The same in other areas: people choose, where cheaper, where closer only because all banks can do the same thing,” Tsintsadze said.

The situation is a little bit better with the service, according to him, in the restaurant business because there is a strong competition. A large choice of restaurants with excellent cuisine makes owners pay more attention to the service.

SEE THE FUTURE IN THE SERVICE Georgian business owners themselves suggest that attention to the service is rather the exception than the rule. Only a few strictly follow the standards of high-quality service and understand that in the end it will bring them a lot of advantages.

“The main goal of our company is to provide highly standardized customer service. Georgia is a developing country and the retail market is under

International experience: Service overcomes the crisis or where you need to be careful!

4Service Director for Southern and Eastern Europe/Central Asia Sergey Pashkovsky based on the experience with various countries, stresses that during the crisis the companies should be particularly attentive to the staff and the service.

“The crisis is not a one-time phenomenon but it is always like a wave; it occurs every 4 years. If we compare the major crises of 2008 and 2012 in Ukraine, we see different behavior of the companies. In 2008 it was the first crisis after the prosperity which the Ukrainian companies faced and most of them have chosen a policy of budget cuts at all. This included “all”: marketing, advertising budgets and budget for the staff. But the staff is the main value of the company, which unlike the advertising cannot be bought for money. So that the staff became of a high quality, the one that loves and appreciates the customers, informs these customers about the company values and be able to sell, retain the customers, then the years must pass. The companies mistakenly think that will reduce the costs, the crisis will pass and they get out of it completely updated.

But while firing valuable people after getting out of the crisis, there is an acute shortage of the skilled personnel. This is a missed opportunity, which the market provides “, says the expert.

You should save on staff very competently in a crisis. In any case, there should not be a slogan like “we don’t care how you serve the customers, and how many you sell, we just want to survive.”

According to Sergey Pashkovsky, this will lead to the demotivation, drop in morale, confusion of the objectives. When a company cancels the program on control training and motivation, then it gives a clear signal that “all is lost”. And when the crisis ends, some companies find themselves with a good staff, and some with the bad one and receive the profits of those who were able to retain staff.

“It is necessary to retain “good” people in crisis and to say goodbye to” bad” one. It also can be determined using the monitoring tools. But

this is a conditional division. If you are a service company, one of the criteria of your employees should be the concept of the customer orientation. You should appreciate the customer-oriented employees”, Pashkovsky is convinced.

According to the expert, the service is another component, which you should be very cautious with in the crisis. He noted that in a crisis the client realizes its value (because the value of each dollar becomes much higher) and his expectations from the service grow. If he does not receive the expected level of service quality, he will never come back to this chain.

Georgia as all the countries of the former USSR passes the experience of becoming a system service. In the Baltic States, for example, for a long time already there are no questions about the need for the service. The level of the economic development and the proximity to Europe automatically shows how important is the service. Life itself will convince everyone that if the company wants customers to pay then you should take care of them.

Another reason to invest in service is a relatively small cost. It does not require any capital investments. If the company plans to check out from the competitors using the technology, it is clear that their development is very expensive and long, high-tech gadgetry will advantage only for a short time. If you compete through the price, then the speed will decrease profits and, in addition, it will be difficult to get out from a niche of discounter.

Service budgets are incomparable with the construction of the new plant, the expansion of retail space or the expansion of commodity line. They rather can be characterized as intangible-costs: strength and energy to remind employees about the proper respect towards the clients, carry out PR-work within the company and to reward the staff who really have a great service.

development. Many companies really want to care about their customers, but can not understand and take the benefits. Elit Electronics is a leading electronics company in the retail business in Georgia and one of the main part of our success is the success in the communicating with our customers.

As a rule, we have two basic steps in communication with customers: data exchange during the sales process and communication after the sales process.

We measure our success through the success and quality of our services with these two steps,” says Marketing Director of Elit Electronics Salome Gozalishvili. In the company within the framework of the service improving we create a comfortable space for the customers in stores. In addition, the launch of new technologies to simplify the sales process was conducted. According to Salome, another important part of a decent service standard providing is the holding of the regular training sessions with follow-up exams for trade staff. Moreover, they are able to track and analyze service quality through the research of customer service quality.

“

Business owners believe that the service is a luxury, a way to show how cool is the company. But nobody considers the quality of service as a tool to increase sales.

How to evaluate and improve the service Tegeta Motors, one of the leading companies on the sale of auto parts, also seriously comes up to the evaluation of the service quality. To do this, they use different tools to measure the quality of service. The company has firmly decided with one of the most “common” and efficient, that is “ Mystery Shopping”. Training coordinator Alex Chibarashvili tells us that the company conducts its once a year during 3-4 months. Mystery shoppers check service standards. This control method is quite effective in Georgian realities and, subsequently, service quality has been improving every year.

Wissol also conducts the service control. The company did not use only “Mystery shopping” or customer surveys.

“On the one hand, this is mystery shopper, who checks the work of all staff and prepares the information, on the other hand, we conduct customer surveys on how they are satisfied with our service. The quality of being represented is verified by the patrol station managers, as well as by the regional managers. But we have this control not like a punitive mechanism.

We try to present it as a motivation for our employees. We have no fines.

We try to encourage those who interact with customers. We give bonuses.

Our approach to the staff providing quality service became interesting, important and profitable, “said Shalva Bagaturia. One of the company’s investment are the trainings and staff study. When Wissol has new promotions or new system implemented, then the staff is retrained. The courses of re-qualification for the refuellers are conducted, who later can become managers, for example. Country Director of 4Service Georgi Tsintsadze said that one of the development zones for the Georgian business is that something only a few control service, and most companies let this process take its course. And according to him, the volume of “mystery shopping” by companies is insufficient.“Management of the Georgia companies knows about the evaluation and service improving through the technology” Mystery Shopping “, but they do not allocate budget to implement it, or often they do not want it. Mainly it occurs as follows: they have problems, they are trying to hide them, because they still do not receive money to fix them. This happens in many companies. Many managers simply do not want to show their managers the existence of the problem, so that to look good before them”. In Georgia, there are virtually no middle class, about 80% are low-income people, 15% have the average income and 5% have big income. For those 80% the price solves a lot, so the user selects the product, primarily, by its price. The company, in their turn, are fighting for the availability of the same products and low price. So some of those who use “mystery shopping” are willing to sacrifice the quality of evaluations, only for cheaper price. “Often the company management does not explain their employees why and for what they do Mystery shopping program, their opinion is not asked. Therefore, employees resist. They are given only the final, not worked out result. In addition, some still even impose a system of fines. It turns out that the staff motivation comes from “fear” and their customer orientation is doomed to failure,” explains George.

Crisis is not an obstacle for the customer care Deputy Director for Management and Development of a chain of petrol stations Wissol Shalva Baghaturia as well as the expert of 4Service George Tsintsadze believes that Georgian mentality does not accept service as an additional business opportunity to earn. And we have a big problem in that and the uncovered potential.

“Our company believes that the service is very important, but not to compete in the market.

It is important to emphasize the quality of the product and to show that we care about our customers.”

Shalva, in spite of the economic situation in Georgia, is sure that the country continues to move forward and live, and that means that the business also continues to work. And while especially Wissol Group tries not to pay special attention to the crisis per se, but in general many companies save money on service.

“We think that during the crisis generally it is unacceptable to reduce the costs of service. The crisis relates not only to the company; the crisis concerns each person. It concerns our employees. Of course, in times of the crisis it is difficult to maintain the desired level of service because the people themselves are a bit in the depressed position. You need to make great efforts to withdraw the staff from this psychological state.

We started to work more actively with the employees, over their motivation, mood. You need to move forward when it is hard times, but not when everything is good. Every crisis is a new opportunity for us that we try to use.

When hiring the company pay attention to the emotion of the employee, how they get along with the customers and how they can provide a good service.

10

BUSINESS

May 8, 2017 #191

Tsalenjikha Produced Tea Costs $300 in China Georgian tea manufactured in Tsalenjikha District, Samegrelo Region, is exported to Chinese market. Chinese investors have put 80 000 USD in Lazi tea manufacturer company.

Chedzani Ranrani Biotechnology Company plans to expand investment portfolio and introduce new technologies in the company.

The Georgia-Chinese company manufactures green and black tea by Chinese technologies.

Currently, about 150 local residents are employed. Lazi company has taken part in Tea Rehabilitation State program.

“For many years tea manufacturing remained suspended in Georgia. We arrived and explored the quality of domestic tea. Genuinely high-quality tea grows here. Tea needs careful attitude. Therefore, we manufacture Georgia tea by use of our technologies. Here we produce high-standard green and black tea. We plan to expand business and implement a major project and increase investment portfolio”, Chan Va Khu, Chedzan Ranran Biotechnology Company founder, said.

Georgian Restaurant Chačapuri in Vilnius Locals in Vilnius know about the Georgian restaurant Chačapuri for few years already. However, it is still an exotic place in the city. The restaurant was opened in 2012. “My brother moved to Vilnius to study at the MA program and considering many years of experience in business, he wanted to establish business abroad. However, it turned out a way more difficult than anyone can imagine”- declared Sandro Vekua, manager of the restaurant. Chačapuri offers different type of Chachapuri to the customers. In addition, they have exclusively made recipes which match the taste of local people.

“As a result of our research, we found out that eggplant and coriander were very popular among Lithuanians and at the same time, these are also very typical Georgian products. Therefore, we created Chachapuri with eggplant and coriander and it is very delicious and popular food for our customers”- explains the manager of the company.

Hualing Named the Winners of Conceptual Project of New Hotel Hualing Group named the winners of conceptual project of Economy Ministry.

Giorgi Makharashvili will receive a bonus of 5 000 GEL, II place (3 000 GEL) is occupied by architects of WUNDERWERK ARCHITECTURE: Barbare Kacharava, Gigi Shukakidze, Nikoloz Lomidze; III place (2000 GEL) – Tamar Gorgasanidze and Nina Ostapenko.

Davit Avalishvili will be awarded with the extra prize for the most innovative concept.

To remind, hotel building, locating in Chanturia str., was purchased at 9, 5 million USD by Hualing Group in spring, 2015.

The investor must build a 100room hotel at the place.

Partnership Fund to Invest 5.4 million USD in Lopota Partnership Fund will implement a 5.4 million USD project.

The Fund has signed a due agreement with LLC Lopota Investment.

The agreement calls for expanding Lopota hotel complex. The signing ceremony was attended

by Georgian Prime Minister Giorgi Kvirikashvili.

The hotel complex will be added 85 new suites, administrative building, 300-seat conference hall, chateau, restaurant, cafebar, fitness club, indoor and outdoor swimming pools.

Daraia – New Georgian Brand of Minimalistic Clothes A new Georgian clothes brand DARAIA which appeared in the fashion industry recently is made for women who believe that new style, quality and individuality is important.

The authors of this startup are marketer, Keta Lomidze and actress Tina Aleksishvili, whose alternative perspective of clothes design is not defined by professional designer’s education. However, constant aspiration for fashion and a wish to look for something new inspired them to create a new brand.

What kind of experience do you have in this field and what is your goal?

Tina: At this stage, I’m working on the play and planning to perform in the theatre. I’m quite familiar with working on the clothes design because theatre included a lot of things: Costumes- clothes, decorationarchitecture, art: As a painter is supposed to match the character costumers to the time and era according to the impulse, so is clothes designer supposed to match his design to different styles and diversity considering the fashion.

Keta:In the last few years, I publish magazines: I am also involved in many interesting projects and DARAIA is

one of the innovative projects as well. In the last few years, Georgian production is largely supported and promoted. My aim is to make our production high quality and competitive at the international market and I hope DARAIA will become one of the significant startups in the fashion industry.

Where do you sew DARAIA products, which materials do you use for it and what processes are you involved in?

DARAIA products are made in Georgia by professional constructors and tailors. Their role in this business is really crucial. As for the material, in this case, the name of the brand is just symbolic. It is the most important for us that the fabric is natural and high quality and this includes all the materials, not only silk. Before we have the final version of the product, we focus on every detail and consider each other’s opinions, however the duties are divided.

How is your brand unique and different from other Georgian clothes brands?

We believe that nowadays Georgian market is diverse in the fashion field, it is different and original. When it comes to competitiveness, our biggest advantage is a good quality and natural material for products.

Degustate Wine Club Startup To Run Its Business on Microsoft Azure Platform Microsoft Georgia and Degustate Wine Club Startup announced cooperation. Degustate is the first Georgian company who connects Wine and Technologies. As a BizSpark member, Degustate will be running its business on Microsoft Azure platform.

“We are delighted to announce our partnership with Microsoft, – Nodar Baghishvili, Partner, Degustate says. – Such partnership comes at the right time for us, as BizSpark program will help us with our IT infrastructure environment enabling us to run software on a secure, redundant and scalable platform, and will let us save on hosting and deployment of services, besides regular benefits of secure Microsoft Cloud, we plan to use analytics such profiling customers wine preferences, predictions and all power of Artificial Intelligence of cloud platform. With the access to Microsoft Azure via BizSpark, we can efficiently support the demand for resources of Degustate’s rapidly growing

business”.

Founded in 2017 in Tbilisi, Georgia, Degustate is the first Georgian company which connected two different areas, Wine and Technology, introduction and implementation of respective new technologies and areas of future development.

“More and more entrepreneurs stake on Microsoft Azure cloud platform and make the right choice, – Nikoloz Doborjginidze, General Manager at Microsoft Georgia, says. – Flexibility of the service allows to scale resources depending on real traffic needed and to manage business effectively. Besides, there is no need to spend resources for technical support of the infrastructure as it is done by Microsoft. As a result, these resources can be invested into the main thing – business development”.

Microsoft BizSpark is a global program that helps startups succeed by giving them free access to Microsoft Azure cloud services, software, and support.

May 8, 2017 #191

GEORGIAN AVIATION

11 AGRO BUSINESS

Business Consulting Company

IRAKLI CHIKAVA Commercial director of Consulting Company “Agro Solutions”

If the big farms of dairy cows are not created in Georgia, the production of Imeretian cheese from natural milk will be unprofitable

Aviation Development Starts in Georgia Over the past years Government of Georgia has been spending considerable state budget funds on development of domestic and small aviation sectors. Domestic airports are being built, including Ambrolauri Airport (14 million GEL investments) and Mestia airport (20 million GEL investments); Government has also announced plans for constructing a domestic airport in Akhalkalaki, Tusheti, Zugdidi and Omalo.

Despite the mentioned projects, the existing situation hampers development of domestic air companies. ServiceAir is an only company that performs domestic flights from Natakhtari airport to Mestia and Ambrolauri Airports. The company is subsidized from state budget, because this direction of aviation is not profitable. Other airlines do not show interest in domestic flights. High tax rates at Tbilisi and Batumi airports make these directions unattractive for Georgian air companies.

Fuel price and extra taxes frustrate the industry development, specialists noted. Airlines buy fuel without customs clearance for international flights and they do not pay 18% VAT in this case, while airlines have to buy fuel with 18% VAT and excise tax for domestic flights.

For example, if an airline buys fuel without customs clearance for international flights and do not pay VAT, the price of a ton of fuel is 1 000 GEL, while the airline has to pay excise tax (440 GEL for a ton) and 18% VAT for domestic flights.

Consequently, international flights are more interesting in terms of commercial aspects, compared to domestic flights. Moreover, domestic airlines serve such social objectives as tourism sector promotion, fixation of domestic population in regions, therefore, this direction is not interesting for investors.

To neutralize these uncompetitive conditions, as a result of difference between fuel prices for domestic and international flights, and to promote development of domestic and small aviation sectors, last week Prime Minister Giorgi Kvirikashvili announced plans for amending Tax Code, under which a part of aviation fuel for domestic flights will be exempted from VAT and excise taxes.

“Domestic aviation is a subsidized field. Therefore, we will exempt that part of aviation fuel for domestic flights from VAT and excise tax”, the Prime Minister said.

Giorgi Chogovadze Head of National Tourism Agency

“

Promotion of domestic aviation is a part of tourism sector development policy promulgated

by Government of Georgia

It should be also noted that Government subsidizes the price of domestic flights. After planned amendments, prices will decline and the demand will increase for domestic flights. As a result, these factors will create preconditions for domestic aviation development.

Giorgi Chogovadze, head of National Tourism Agency, also expects ticket prices for domestic flights to shrink. Promotion of domestic aviation is a part of tourism sector development policy promulgated by Government of Georgia, Chogovadze noted.

Government’s initiative will propel cheapening domestic flights and new players will appear on Georgian aviation market, Chogovadze noted.

Agriculture flying machines and tourism helicopters also face the same problems. Besides fuel, the mentioned tax refers to lubricants that are widely used by flying machines, especially, helicopters.

For domestic flights, its prime cost is added an excise tax of 440 GEL per ton and VAT tax, that constitutes 18% of total value of the product. This signifies the state budget will not receive 620 GEL for each domestic flights on average, after removal of the mentioned taxes.

Frequency of domestic flights is another issue, because ticket prices are expected to decline.

As a result, the demand for domestic flights will increase and frequency of flights may also grow.

It is also necessary to set strict control on fuel that will be bought for domestic flights, because it will be exempted from VAT and excise taxes, and this category of fuel be used for illegal purposes.

It should be noted that the contract with ServiceAir airline that performs domestic flights will expire soon and Government has already announced tender for performing domestic flights for the next 3 years, including to the Racha-Ambrolauri direction.

Keti Aleksidze, head of Airports Association says that the schedule of all flights has been already prepared before summer season.

“We perform domestic flights to Mestia direction, Mestia-Kutaisi direction, to Ambrolauri. At this stage, the schedule of flights has been prepared before summer season. The tender value is about 10 million GEL, excluding VAT. However, we cannot say what the trade price will be. Tickets sales prices will be deducted”, Aleksidze noted.

Cheese is traditional food in Georgia. Accordingly, those who own cattle and livestock in the rural areas (cow, buffalo, sheep, goat) almost all of them produces cheese.

Although the tightening of food safety issues made it necessary to open cheese factories, which meet the safety rules of modern food and international standards.

The cheese consumption in Georgia increases annually. It is increasing not only the volume of cheese produced in household farms, as well as the number of cheese produced by factories.

It must be noted, that in the total cheese production the share of produced cheese in the family industries is very high. For example, in 2015 in total cheese production, the share of cheese produced in family farms amounted 93 % and only 7 % was the share of cheese produced by the factories.

In 2015, the capacity of cheese produced in family farms compared with 2014, was increased approximately by 7 % and amounted to 63.8 thousand tones.

As for the cheese produced in cheese factories in 2015 compared with 2014, growth of production was more than 100% and amounted to 4708.4 thousand tones, while in 2014 the cheese factories in Georgia totally produced 2282.7 thousand tones.

It should be stated that in 2015 the total cheese production in Georgia amounted to 68.5 thousand tones.

The basic problem in Georgia is the lack of milk. We do not possess the large farms of dairy cows. Correspondingly, we don’t have stable supply channels of milk and stable price.

Most of the factories are making cheese from the milk powder, because the cost price of cheese made from milk is high.

On the market during the year, the price of 1kg. of natural milk ranges from 0.8-to1.2 Gel. In order to get 1 kg. of Imeretian cheese is needed 8-10 liter of natural milk (the exact capacity in litres depends on the milk fatness).

Let’s say, we buy 1 litre of milk for 1 Gel and at the same time this milk is quite fatty, in order to 1kg. of cheese we needed 8 litres of milk.

In such case the cost price of cheese exceeds up to 8 Gel. Therefore, this product will not compete with cheese producers who consume milk powder. Accordingly, the production will be unprofitable.

Finally, it must be noted that, until there is not made farms of big dairy cows in Georgia and the milk is not be cheapened, the production of Imeretian cheese from natural milk will be unprofitable.

12

PUBLICITY

May 8, 2017 #191

May 8, 2017 #191

13

WORLD TAP AG completes Trans Adriatic Pipeline’s first hydrotest

Bitcoin breaks through $1,500 for first time The world’s most popular cryptocurrency continues to set historic highs this week. Bitcoin cracked the $1500 barrier on Thursday.

Bitcoin was trading at $1,515 against the US dollar at 2:00pm GMT, retreating from the day’s high of $1,544.43, according to the CoinDesk price index. The digital currency has gained more than 32 percent during the past two weeks.

The rally has been credited to growing global demand led by Japan, which recently authorized digital currencies as a legal payment method, and its bitFlyer bitcoin exchange.

The US Securities and Exchange Commission’s (SEC) plan to reverse its decision to reject a bitcoin exchange-traded fund (ETF), has also boosted the cryptocurrency.

Earlier this year, the SEC ditched plans for two bitcoin ETFs, saying it “is disapproving this proposed rule change because it does not find the proposal to be consistent with Section 6(b)(5) of the Exchange Act, which requires, among other things, that the rules of a national securities exchange be designed to prevent fraudulent and manipulative acts and practices and to protect investors and the public interest.”

TAP AG, the consortium building the Trans Adriatic Pipeline (TAP), has successfully completed its first hydrotest in Greece, reads a message on TAP’s website.

“Also known as hydrostatic testing, this is a method for verifying a pipeline’s safety after it has been built,” said the message. “The pipeline is filled with water and pressurized more than its intended operating pressure, so as to test its integrity and ensure its safe performance during operation.”

Reportedly, the hydrotest was applied to the pipeline’s first 1.4 kilometers on the Greek section.

“It is a very significant step in the construction process, since it technically affirms the pipeline’s safety, which is identified as the project’s number one priority,” said the consortium. “Following this successful start, additional parts of the pipeline will be gradually tested until the end of the year.”

Europe’s Gas Diversification Comes At A High Price

EBRD Pushes on With Azerbaijan Gas Loan After Transparency Rift The European Bank for Reconstruction and Development is pushing ahead with plans to lend $500 million to Azerbaijan’s Southern Gas Corridor project after the nation was suspended from an international oil-wealth transparency watchdog.

The development bank is “progressing” its financing to the $40 billion pipeline project with a final board decision expected by the end of the year, Suma Chakrabarti, the EBRD’s president, said in an interview in London.

Azerbaijan withdrew from the Extractive Industries Transparency Initiative in March after the organization suspended it following criticism from human rights groups over the nation’s crackdown on civic freedoms. Executives at the EBRD, whose mandate includes promoting democracy, have said that the status of Azerbaijan’s EITI membership would be an important factor in its decision to lend.

“What’s happened on the EITI is very, very unfortunate,” Chakrabarti said. He was critical of the watchdog’s decision, saying that “quite a lot of people” were “worried about some of the criteria that are now being used in EITI.” Full Disclosure The head of Azerbaijan’s oil wealth fund in March criticized EITI for shifting its mandate beyond the promotion of transparency in how governments use oil, gas and metals wealth. The country will continue to disclose all information related to revenues received from extraction industries.

Commenting on the first hydrostatic testing of the pipeline, TAP’s country manager for Greece, Rikard Scoufias hailed it as “a big step that marks yet another important milestone in the construction process, as the project advances according to schedule.”

TAP is a part of the Southern Gas Corridor, which is one of the priority energy projects for the European Union. The project envisages transportation of gas from Azerbaijan’s Shah Deniz Stage 2 to the EU countries.

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

TAP will be 878 kilometers in length (Greece 550 kilometers, Albania 215 kilometers, Adriatic Sea 105 kilometers, and Italy 8 kilometers).

Russia to resume wheat exports to Turkey, Ankara told to keep tomatoes Ankara has withdrawn a 130 percent tariff on Russian grain following the meeting between Russian President Vladimir Putin and his Turkish counterpart Recep Tayyip Erdogan in Sochi.

Russia will resume exporting wheat to Turkey without restrictions starting from Thursday, Turkish Economy Minister Nihat Zeybekci told Bloomberg.

Turkey introduced the tariff on Russian grain in response to Moscow’s ban on Turkish tomatoes and other produce following the downing of a Russian jet in Syria in November 2015.

While Russia risked losing its second biggest buyer of wheat after Egypt, Turkey had faced higher prices elsewhere.

The Wednesday meeting in Sochi between Putin and Erdogan did not solve the issue of Turkish tomatoes.

Putin said Russian farmers have taken out significant loans to boost domestic production and construct greenhouse facilities, so lifting restrictions now will hurt them.

However, Turkey will sell tomatoes to Russia in seasons when the country can’t grow sufficient amounts. Before the deterioration in relations, 70 percent of Turkish tomatoes were exported to Russia.

Ankara’s apology and the subsequent

thaw between the countries failed to settle the issue. In March, Russia lifted the restrictions against Turkish onions, cauliflower, broccoli and some other vegetables, explaining there is a lack of these food items in Russia.

Turkey complained that it’s only a fraction of tomato sales.

“Russia raised restrictions on some products that totaled $19 million. That’s the value of what’s exported by one little company,” Turkish Foreign Minister Mevlut Cavusoglu told Bloomberg in April.

Turkey has failed to replace the Russian market, and its farmers are facing hard times without exports to Russia.

“We cannot survive without the Russian market. Wastage rates have never been this high,” Munir Sen, the head of the association of fruit and vegetable brokers in Mersin, a city which has Turkey’s biggest seaport, told Bloomberg.

Diversification is a key dimension of the current EU Energy Union policy, but diversification means different things: it can mean switching to other suppliers to take less – in this case – Russian gas, as well as limiting Russia’s dominant position in the market through the availability of alternative supplies if needed.

For example in 2016, 42% of Europe’s natural gas imports – more than ever – came from Russia, which offers a stable supply through its mostly USSR-built pipeline network. But that was also the first year ever that Ukraine bought no gas contractually from Gazprom; the year in which US exports began from Sabine Pass; and the EU had more LNG import capacity than ever.

This topic was explored May 3 by a panel of experts titled “Géopolitique du gaz dans l’Europe du Sud” hosted by French and Spanish think-tanks Institut Français des Relations Internationales (IFRI) and Orkestra.

Apart from domestic production and Russian supply, gas can also reach Europe through LNG terminals, pipelines from Algeria, and initially in small volumes from the Southern Gas Corridor project running from Azerbaijan to Europe. However, these routes have in fact amount to a small supply share, which limits the diversification objectives of the European Energy Union.

At present, there are 25 LNG terminals in the EU, operating at roughly a quarter of their capacity, says Marie-Claire Aoun, director of IFRI. The predicted LNG global oversupply has yet to happen, therefore prices are not competitive enough compared with Asia, where high demand keeps many LNG deliveries away from Europe.

14

May 8, 2017 #191

Huawei Enterprise Business Grows by 47% in 2016 Leading New ICT, the Road to Digital Transformation

H

eld from April 11 to 13, at Huawei Global Analyst Summit 2017, under the theme “Leading New ICT, the Road to Digital Transformation”, Huawei Enterprise Business Group (BG) shared with global analysts, media, and opinion leaders its performance in 2016, as well as its vision, strategy, and practices for digital transformation.

Yan Lida, President of Huawei Enterprise BG, commented: “Huawei Enterprise BG is positioned to propel the development of a digital and intelligent society, and be an enabler and the best partner of digital transformation for industries. In 2016, by harnessing opportunities to drive industry digital transformation through advanced ICT infrastructure, Huawei Enterprise BG achieved rapid growth in several industries, such as government, energy, finance, transportation, and manufacturing. Our sales revenue reached CNY40.7 billion, with an increase of 47.3% year-on-year.”

In the afternoon of April 11, Ma Yue, Vice President of Huawei Enterprise BG, elaborated on Enterprise BG’s “platform+ ecosystem” strategy during his “Leading New ICT, The Road To Digital Transformation” keynote speech. “The core of platform and ecosystem strategies is to build an open, resilient, secure, and flexible platform of ICT infrastructure by continuously investing in new technologies such as cloud computing, the Internet of Things (IoT), Big Data, mobile broadband and artificial intelligence. Then Huawei can build a new ecosystem that features collaboration and mutual benefits, and work with partners to help customers achieve successful digital transformation. Huawei Enterprise BG has increasingly gained recognition from customers and partners, with 172 enterprises of Fortune 500 and 43 enterprises of Fortune 100 choosing Huawei as their partner for digital transformation.”

Ma of Huawei elaborated strategy In 2016, Huawei Enterprise BG has achieved rapid growth in vertical industries. Huawei’s Smart City solution has been successfully deployed in more than 100 cities in over 40 countries. In the finance

sector, Huawei helped many large commercial banks in China complete infrastructure cloudification and served more than 300 financial institutions across the globe, including six of the world’s top 10 banks. In the energy industry, Huawei became the only ICT solutions provider among the members of the Global Energy Interconnection Development and Cooperation Organization (GEIDCO) and Huawei’s Better-Connected Grid Solution has served over 170 electric power companies in 65 countries across the world. In transportation, Huawei cooperated with more than 60 industry partners to serve railways and highways with a total track length of 220,000+ km and more than 15 airports with annual throughput higher than 30 million passengers.

In manufacturing, Huawei worked with KUKA and ABB to promote industrial upgrading to achieve intelligent manufacturing. By the end of 2016, Huawei Enterprise BG had more than 12,000 global channel partners, over 2,000 service partners, and beyond 400 solution partners.

Gao Jun, CIO of Asia Pacific Region and Senior Vice President of Schindler China, Jin Panshi, General Manager of Information Technology Management Department, China Construction Bank, and Liu Jianming, Deputy Director of Electric Power Informatization Special Committee of Chinese Society for Electrical Engineering elaborated on the challenges, opportunities, and successful practices of industry digital transformation.

Gao Jun remarked: “We live in a time of extraordinary change. The elevator industry is facing digital revolution. Schindler actively embraces digitalization strategies and builds five cornerstones to achieve digital transformation including a global business process platform SHAPE, customer experience, products, people, and processes. This can greatly enhance elevators’ operational safety and customer experience, increasing operational efficiency and making it easier to do business for the staff.” Schindler and Huawei’s joint program, the

Internet of Elevators and Escalators (IoEE), is currently has entered the stage of final release. This program will help Schindler collect data and videos of the operation of elevators and escalators to better monitor, analyze, and manage more than millions elevators intelligently across the world.

During the Enterprise BG Track held on April 12, Diana Yuan, President of Marketing and Solution Sales Department of Huawei Enterprise BG, commented: “In 2016, according to analyst institutions’ reports, such as Forrester, IDC, and Gartner, the ranking of our main ICT products designed for the enterprise market has been rising. Huawei has become one of the leading IT manufacturers in the world.” Diana further explained the platform strategy of Huawei Enterprise BG: “Huawei’s platform strategy emphasizes cloud-pipe-device synergy. Based on various technologies, such as FusionCloud platform, FusionInsight Big Data analytics platform, cloud-based network architecture, IoT solutions, and new-generation wireless communications solutions, we work with partners to develop innovative industry solutions and help customers achieve digital transformation and business success.”

Diana Yuan of Huawei introduced Huawei Enterprise BG’s progress Victor Yu, President of Industry Marketing and Solution Department, made a speech of “Digital Transformation for Industries and Enabling OpenLab-based Ecosystems”. He said: “Focusing on public safety, energy, finance, transportation, and manufacturing, Huawei Enterprise BG will give priority to the construction of industry PaaS industry solutions.” To meet the digital transformation needs of industry customers, Huawei will integrate leading business partners by building OpenLabs across the world to provide innovative solutions for industries and promote the establishment and development of the ICT ecosystem of smart society in the future. In the next three years, Huawei plans to invest USD200 million to build another 15 OpenLabs. By the end of 2019, the number of OpenLabs in the world will reach 20.

May 8, 2017 #191

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 76-g Chavchavadze Ave., Tbilisi Tel: 231-11-61, 231-14-54 E-mail: 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

15

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

16

PUBLICITY

May 8, 2017 #191