Caucasus Business Week #213

BUSINESS WEEK

DISTRIBUTED FREE OF CHARGE

caucasus1

October 23, 2017 #213

October 23, 2017, Issue 213 - www.cbw.ge

Interview Professor Oliver Reisner on Activities to Preserve Cultural Heritage Pg. 6

Healthcare New Cardiovascular Technologies will Improve and Save Lives of Georgian Patients Pg. 2

PR Person Khatia Moistsrapishvili: New challenges has appeared in Public Relations Pg. 8

Georgian Government

VS IMF

Georgia Lacks Professional Staff Unemployment remains Georgia’s one of the key challenges.

However, we have the situation, when a major part of population is unemployed, but the private sector starves of qualified staff anyway. Almost all fields lack for professional workforce.

Specialists explain thar the changing demand and standards on the market have shaped this reality.

Mismatch between the demand and supply is also reflected in the 2016 report of Health Ministry. According to specialists, a lack of vocational schools has made professional staff deficient, however, even the existing vocational schools cannot satisfy the market demands, standards and requirements. Imeri clothes manufacturing company cannot expand business because of a lack of qualified staff. The company built a new workshop in Kutaisi, nearby the current clothes factory, in spring 2017.

Pg. 7

Georgia Grows into Regional Tourism Center

Pg. 4

Summer tourism season has come to a close. Both government and field experts expected the sector to bring considerable revenues and this is not surprising if we analyze the statistics of the past years: the sector keeps growing year to year. To be precise, 5 901 094 visitors arrived in the country in 2015, the figure rose to 6 360 503 visitors in 2016 (8% growth year on year). If we compare the mentioned indicators to the 2017 January-September report, the country hosted 5 822 835 visitors, including the number of tourists, people who have stayed in the country for more than 24 hours, constituted 2 783 594 persons, up 28% year on year. The country’s revenues from the tourism sector exceeded 1bln USD in the second quarter of 2017, however, similar positive statistics are frequently accompanied by criticism too.

For example, the Embassy of Great Britain in Georgia has released a special statement, where urged its citizens to show particular caution when visiting Georgia.

Pg. 9

Newsroom

2 Government

Frank Group is Interested in Investment in Georgia

It was noted that Georgia is more than 2 billion in the market, since free trade agreements with the European Union and neighboring countries, as well as China have recently launched.

Ministry of Finance Sells 20 million GEL T-bills

According to NBG, three commercial banks took part in the T-bill auction. The demand constituted 36 120 000 GEL, while the bottom interest rate totaled 8.950%, the top rate hit 9.380%, while average weighed rate amounted to 9.087%.

economy

Georgia Receives $124.4 million in Remittances in September

In September 2017, the volume of money transfers from abroad constituted 124.4 million USD, which is 24.2 percent (24.2 million USD) more than the amount in September 2016.

Trade with the EU Increased by 5.6%, while 31.2% - with the CIS

In January-September 2017 the external trade turnover of Georgia with the EU countries amounted to USD 2064.9 million, grew by 5.6 percent compared to the corresponding indicator of the previous year.

banking

European Financial Group Purchases 74.64% Shares of Liberty Bank

JSC Liberty Bank announced today a change of control, whereby “EFG”, a company established and organised under the laws of the Kingdom of Netherlands, purchased 74.64% of equity interest in the Bank.

TBC Bank is Market Leader in Terms of Retails Deposits

TBC Bank’s ratio on retail deposits market has risen to 40.9% (Q2/2017 -40.2%). The growth in the third quarter marked 8.3%.

Meanwhile, Bank of Georgia has increased retail deposits portfolio by 6.7% quarter on quarter.

business

BTK Railroad Section to Open Officially on October 30

President of Turkey Recep Tayyip Erdoghan will also attend the ceremony. According to the Minster of Transport and Communication of Turkey Ahmet Arslan test works have reached a final phase.

Fruit Processing Plant Opens in Mtskheta

Caucasus Organic Fruits, a new fruits processing plant, has opened in Mtskheta. Total investments in the enterprise made up 1.7mln USD, of which state co-financing marked 250 000 USD, while 500 000 USD is a preferential agro loan.

company

Menu Group Attracts 3mln USD for Boosting Regional Development

At this stage, Menu Group UK Ltd is a leader of food delivery services in Armenia, Georgia and Belarus.

As a result of a 5-year performance, the number of the company’s annual orders exceed 1 mln.

October 23, 2017 #213

New Cardiovascular Technologies will Improve and Save Lives of Georgian Patients Tbilisi hosted the International Educational Conference and Master-Classes in “Present and Future Developments in The Management of Complex Tachyarrhythmias” for electrophysiologists and general cardiologists.

The event was organized with the support of the European and Georgian Heart Rhythm Associations, and the global leader in medical technologies, Medtronic, in Radisson Blu Iveria Hotel.

During the conference the President of the Georgian Heart Rhythm Association Mr. Giorgi Papiashvili, the members of the European Heart Rhythm Association, the Profesor del Departamento de Medicina Professor from Spain Mr. Josep Brugada presented the latest achievements in treatment of complex cardio vascular diseases.

“Georgia is among the countries where cardiovascular diseases are the number one cause of death with arrhythmia playing a leading role. Cardiovascular diseases cause more deaths in Georgia than any other diseases combined. The latest cardiovascular technologies brought to our country and advanced training and educational programs for our physicians will offer patients highly advanced treatments for cardio vascular diseases, while also broadening local access to new levels of cardio vascular expertise.

Profesor del Departamento de Medicina Professor from Spain Mr. Josep Brugada: - Can you please describe some of the advantages of the new AF therapies?

Well, AF therapies have evolved over the last two decades, since the very beginning of the late 90s, where we started doing ablation in patients with atrial fibrillation, we have increased the tools and developed tools that are now very useful for our patients. Most recent one is cryoablation. Cryoablaiton is, as demonstrated, a big interest in paroxysmal atrial fibrillation, but it is through those other techniques – mapping techniques and different sorts of catheters we have developed, which makes atrial fibrillation very successful and very safe at the present time.

Can you also talk about the benefits from the planned masterclasses that Georgia can expect?

Well, first of all, it really is a pleasure to be here in Georgia, for the symposium. I have been invited by Dr. Papashvili, who is the president of the Georgian Heart Rhythm Association, he is a fellow of mine, one of the people who was trained in Barcelona with me ten years ago, and now he’s president of the association. And so for me it is a

BUSINESS WEEK caucasus

The Editorial Board Follows Press Freedom Principles Publisher: LLC Caucasian Business Week - CBW Address: Aleksidze Street 1 Director: Levan Beglarishvili Sales: Mob: +995 558 36 61 07 WWW.CBW.GE Email: caucasianbusiness@gmail.com

pleasure to be here. And I am sure that all the master classes and the whole symposium will be of great interest to all the general cardiologists, and also to all electrophysiologists and arrythmologists in Georgia. it will hopefully increase the interest of the Georgian cardiology in invasive electrophysiology and we can cure the majority of the patients with arrythimias.

Robert Hatala, Cardiologist: - Can you talk about the specific benefits that Georgian professionals will gain from these master classes, and what some of their general goals are?

First of all, I would like to say that this is not my first time in Georgia, I have been here in your beautiful country three years ago, and I return with great pleasure. One of the reasons is also that my colleagues here in Georgia achieved dramatic success in the last maybe 10 years.

You have excellent specialists who were educated and they performed really high quality medicine.

This symposium is basically aimed to reach the general cardiologists and to underline the high importance of treating cardiac arrhythmias today. Why? Because cardiac arrhythmias constitute a major part of cardiovascular deaths, up to 30% of all cardiovascular deaths are due to arrhythmias, and so in order to advance cardiology in general in your country, treating arrhythmias is an integral part. I believe that there are several targets during this symposium, and one of the targets is therapy of prevention of sudden cardiac deaths.

The sudden cardiac death is a major issue all over the world, all over Europe, the European Heart Rhythm association has started ten years ago an initiative, which was called implantable defibrillator for life, ICD for life. I believe this is a very important part of our efforts.

I believe that modern therapy of arrhythmias is not experimental therapy. It’s a therapy which was very strong evidence, is very strongly evidence-based, and achievements are really remarkable. So it would for my understanding excellent, if all these possibilities for modern medicine would be also implemented in the healthcare policy of your country,

which covers things like awareness among the physicians – this is what we are going to do today here – but also you have to create some economical basis for that, and this is via imbursement of these therapies.

And so people who have survived sudden cardiac deaths, which were very lucky to survive sudden cardiac deaths, because they were successfully resuscitated, and the proportion of these people is very low, it’s below 5%. So these people absolutely need a device that will protect them against recurrence of the arrhythmia in the future.

So if we could together with our colleagues here in Georgia achieve this, I would be very happy.

The President of the Georgian Heart Rhythm Association Mr. Giorgi Papiashvili: According to Giorgi Papiashvili, heart arrhythmias are one of the leading causes of death from cardiovascular diseases. Consequently, he thinks that such symposium is very important. In addition, he believes that survival rates in patients with heart disease could be significantly improved with the availability of medical technologies and appropriate treatment: “It is very important that the population and doctors are more informed about complicated arrhythmias and modern methods of treatments. The absolute majority of sudden deaths are caused by arrhythmias, which is not known to our population. Our conference serves to increase awareness towards this problem”.

Event provided excellent opportunity to bridge cross country experience in modern therapies for complex cardiovascular diseases, such as tachyarrhythmia; provided opportunity to discuss current global trends of cardiovascular diseases and contributed to greater networking among Georgian physicians and its international colleagues. , addressing the challenges and impact of the cardio vascular diseases in Georgia through strengthening national health system, bringing advanced technologies to the country, improving access to the latest therapies and helping to improve and save lives of many Georgian patients.

Editor: Nutsa Galumashvili. Mobile phone: 595 380382 Reporters: Nina Gomarteli; Mariam Kopaliani; Merab Janiashvili Technical Assistant: Giorgi Kheladze;

Source: www.commersant.ge, www.bpi.ge, www.gbc.ge, www.agenda.ge, www.civil.ge

October 23, 2017 #213

publicity

3

4

econo-mix

Georgian government VS IMF

The EU Assists Georgia to Integrate Rural Development into National Policies

‘‘

Tato Khundadze Economic Analyst

Today Georgian economy has a vital need of just and efficient taxation system. According to indicators of Brooking Institute, Georgia ranks 8th in terms of unequal distribution of incomes. Today the business sector has a vital need of more efficient state institutions and the global competitiveness index research also proves this.

Last week International Monetary Fund (IMF) published a fiscal monitor report: Tackling Inequality. In this report IMF sharply criticizes governments all over the world for reduced income tax rates and directly urges them to raise the tax for the rich. According to the report, inequality is a problematic issue, because, besides social injustice, it also hampers economic development, as inequality generates social crisis and weakens public services and makes economy less productive. What is the situation in Georgia in this respect?

Progressive tax, which is an important instrument against inequality, has been banned by Georgian legislation, in practice. By active efforts of Mikheil Saakashvili, a new amendment was recorded in article 94 of the basic law of Georgia in 2010. According to the record, only national referendum is authorized to introduce a new tax or raise the top margin of the existing tax. In general, according to Georgian legislation, 200 000 signatures are required for attaining an announcement of national referendum.

However, surprisingly, this rule does not refer to the mentioned law on taxes and only Government is entitled to appoint a referendum.

Despite IMF and Venice Commission recommendations, Georgian Dream has not extracted the mentioned norm from the new edition of the basic law that is to come into force in March 2018.

Inequality-related issues were ignored since announcement of independence, but not only in Georgia. It was globally recognized that economic growth would become a precondition for attaining the highest welfare in the society in the course of time. However, expectations about “a rising tide lifts all boats” was not justified.

Government policy that serves to attain only macroeconomic stability has turned out inefficient. Both global and domestic Georgian experience prove this.

Joseph Stiglitz, Nobel Prize laureate in economic sciences, says that inequality is not a side effect of economic development. It is the result of purposeful economic policy that serves financial interests of only major business sector. Inequality is related to two principles: political dimension associated with justice and economic aspects related to efficiency.

Let’s start with political aspects. Georgia has set flat taxes that ensure equal conditions for both big and small business sectors, which equals 20% if profit gets distributed. Income tax is also a flat tax and a teacher, whose pretax income is 250 USD, pays 20% of revenues, like a director of a major commercial bank, who takes about 100 000 USD a month. According to the dominant economic theory, marginal productivity determines the amount of salaries that expresses a human contribution to the society in equivalent volume.

It is disputable issue whether a teacher creates 400 times less added value compared to the director of a commercial bank. However, the fact that teachers and a bank director pay 20% income tax from their revenues cannot withstand criticism.

Flat taxes are not efficient in terms of economic aspects either. Let’s return to salaries of a teacher and a bank director. A teacher pays 50 USD in income tax. In case of progressive tax, this 50 USD would go to the pocket of this teacher fully or partly and he/she would be able to buy more essentials and food products and this money would remain in the

‘‘

Up to thirty representatives of the Government of Georgia attended a working meeting of the Inter-Agency Coordination Council for Rural Development (IACC) on October 18, 2017 which focused on integrating rural development into the national policies of Georgia.

Harmonization, coordination, synergy and complementarity in public policymaking and delivery were among the main topics of discussion facilitated by the European consultants invited to assist Georgia in effective planning and delivery of rural development policy.

The event was opened by Nodar Kereselidze, First Deputy Minister of Agriculture of Georgia and Chairman of the Inter-Agency Coordination Council, who highlighted the importance of making rural development an integral part of the governmental programmes in all sectors of economic and social development. implementation of the national Rural Development Strategy 2017-2020, elaboration of the Rural Development Action Plan for 2018-2020, and on the further steps to be made on the national, regional and municipal levels.

The main theme of the workshop was to identify the best suitable model for integrated rural development policy in Georgia and to ensure its alignment with the European Union Policy Framework on Rural Development.

“The examples of the European countries prove that effective rural development provides countless opportunities for addressing the immediate needs of people all over the country, combating poverty and inequality, increasing the standard of education, healthcare and environment protection, and ensuring the inclusive economic growth for all.

A comprehensive policy framework, which promotes inter-sectoral coordination and stronger partnerships, is an important step forward to achieving these goals,” said Kaido Sirel, Deputy Head of Cooperation Section of the Delegation of the European Union (EU) to Georgia.

The workshop of the Inter-Agency Coordination Council of Georgia for Rural Development took place in the framework of the European Union’s Neighbourhood Programme for Agriculture and Rural Development (ENPARD) and was supported by the United Nations Development Programme (UNDP) in cooperation with the Ministry of Agriculture of Georgia.

The European Union is supporting rural development in Georgia through its ENPARD Programme. Implemented since 2013 with a total budget of EUR 102 million, the main goal of ENPARD is to reduce rural poverty in Georgia.

The first phase of ENPARD in Georgia focused on developing the potential of agriculture. The second phase focuses on creating economic opportunities for rural population that go beyond agricultural activities. More information on ENPARD is available at: www.enpard.ge

October 23, 2017 #213

domestic economy.

Eventually, low-income citizens spend a major part of their incomes on domestically produced primary goods and food products and this factor stimulates the aggregate demand. What is the situation in case of a banker? A banker pays 20% of its incomes, that is about 20 000 USD a month in the form of an income tax and he saves 80 000 USD. Only a small portion of this sum is spent on food products and primary goods. These funds are mainly spent on goods that are mainly imported. This means money resources go to foreign countries. For example, the former director of Bank of Georgia spent 682 785 EUR on purchasing and repair of an apartment in Madrid, Spain in 2015.

In case of progressive income tax, we would have an essentially different reality, namely, low-income teacher would be exempted from income tax (or pay only a small portion of incomes) and spend the remaining part on services and goods manufactured by the domestic business. This automatically brings additional revenues to the business, creates new jobs and reduces poverty. At the same time, the bank director would pay a higher portion of incomes to the state budget and this means the country would have better public services, including: better schools, kinder-gardens, well-paid police and effective healthcare system.

The above-mentioned arguments are not theoretical manipulations. Intentional practice shows that progressive taxation is an efficient mechanism for stimulation of economy and overcoming inequality and poverty.

An absolute majority of EU countries practice progressive income tax system, for example, in Finland upper margin for the highest-paid bodies is 62%.

In Germany, France, Austria, Ireland and other developed countries of Europe, the upper margin of the income tax exceeds 40%.

After the world war second quite high progressive taxes were set in impoverished and annihilated European countries. For example, in western Germany in 1958 after constitutional amendments the upper margin of progressive tax was 53%. The figure constituted 60% in France after the 1945 liberation.

Amid massive bombardment in England in 1941, the income tax for the richest citizens was 97.5%.

Today Georgian economy has a vital need of just and efficient taxation system. According to indicators of Brooking Institute, Georgia ranks 8th in terms of unequal distribution of incomes. Today the business sector has a vital need of more efficient state institutions and the global competitiveness index research also proves this.

A lack of qualified and educated workforce is a key problem before Georgian business. According to the mentioned index indicators, Georgia ranks 106th in terms of general education and comes back of Armenia and Azerbaijan, while the country ranks 101st in terms of higher education. Other reality would be a little surprising in the country, where the profession of a teacher is one of the lowest-paid professions. Progressive income tax would be an important step for overcoming similar perversive condition. Maybe the time has come when Georgian political establishment should pay attention to IMF recommendations and give priority to the people’s interests.

“Our activities include a variety of fields, but I would like to mention the banking sector, which has provided significant support. Especially “Bank of Georgia” and “TBC Bank” were able to distribute credit services to small and medium businesses and women entrepreneurs. They were also given the opportunity to finance the standardization process envisaged by the Deep and Comprehensive Free Trade Agreement”.

Bruno Balvanera

Regional Director of the European Bank for Reconstruction and Development

October 23, 2017 #213

publicity

5

6

interview

October 23, 2017 #213

Professor Oliver Reisner on Activities to Preserve Cultural Heritage ninna gomarteli

Professor Oliver Reisner has 25 years of research on Russian and Caucasian history in theory and practice. He’s currently an Associated professor in European and Caucasian studies at Ilia State University, School of Arts & Sciences.

Mr. Reisner shares about current and upcoming projects of Association for the Preservation of German Cultural Property in the South Caucasus with CBW: Tell us the story, how you got interested in Caucasian history?

First I got interested in the Caucasus after a three months trip to the Near East in 1987 and after reading the Russian romantic Mikhael Lermontov’s novel “A Hero of Our Time”. In 1988 I was invited by the Shota Rustaveli Institute for Georgian Literature from 1 October until 4 January 1989. This scholarship changed my life and I started to pick up the history of the national movement in Georgia as my research topic. I wrote a collective biography of the members of the “Society for the Spread of Literacy Among the Georgian Population”, the generation of the Tergdaleulebi, Georgian students socialized at higher education institutions abroad, mainly in Russia that intended to modernise the Georgian nation.

What were the first steps of Association for the Preservation of German Cultural Property in the South Caucasus, when did you found it?

The establishment of our association was initiated by Heike Gabriel, a very committed and active cultural attache of the German Embassy in Tbilisi back in 2013. She picked and brought the right people together that started to work on the issue, Georgians and Germans living in Georgia alike. In 2015 and 2016 we conducted an inventorisation of German cultural heritage in Georgia for the National Agency for Cultural Heritage Protection of Georgia. We identified 23 former German colonies and more than 1.200 buildings that still exist. For the most important buildings we prepared detailed passports. Most of them have been assigned the status of cultural heritage monuments by today. With funding from the German Ministry of Foreign Affairs we conducted our first restauration work of the roof of the former Lutheran Church in Trialeti (former colony Alexanderhilf).

Selected results are presented in the following publication by the Council of Europe “Cultural Route of the German minority in Georgia” Download: that was published in 2017. Based on them Manana Akhalkatsi from the Geothe Institute created German language worksheets for schools: link , so that they can find their way into the classroom. You can follow our ongoing activities on Facebook.

You hold cultural events in the South regions, are local inhabitants informed about the history and cultural heritage?

In close cooperation with the local authorities from Bolnisi and the German Embassy in Tbilisi we contributed to the celebrations of the 200th anniversary of the arrival of the first Swabian settlers from the kingdom of Wurttemberg in the Caucasus invited by the Tsarist authorities to assist in colonizing its newly acquired peripheries. We provided guided tours in Bolnisi on 7th October and presented the results of a summer school with German and Georgian students – five wonderful projects on how to inject new life to the German cultural heritage that was left without function for years. The projects range from an entertaining learning pathway for kids and adults, the establishment of a German language kindergarten and a youth center for different kinds of cultural activities, a new and inclusive concept for annual cultural festivals and finally a virtual space to bring all the interesting stories, pictures, information and archival documents together for visitors from all over the world.

We are convinced that without the active involvement of the local population and the younger generation this heritage is doomed to disappear. Therefore we elaborated a project for an interactive inventorisation of cultural resources for 15 out of the 23 former settlements that are located in the region of

Kvemo Kartli as a contribution for the establishment of a German cultural route in Georgia. Together with the NGO “Community Development Center” (CDC) and the Georgian Association of History Educators (GAHE) we would like to involve the local population in plans on how to develop their communities building on the German heritage as well as other cultural resources that would foster a clearly home grown development of those communities. So far, we were not able to get the funding for this project, but we are confident, we will do so in 2018.

What are the upcoming events/projects in the framework of the Association?

In December 2018 we will present the findings of our inventorisation work at an international conference organised by the Georgian National Museum. The coming year 2018 we will continue our inventorisation with a detailed inventorisation of the very first settlement in Marienfeld. It was established late in 1817 and forms today a part of Sartichala on the road from Tbilisi to Kakheti. Also we will inventaris New Botanika, the very last settlement that was established by rehabilitated Germans returning from Kazakhstan in 1956, where they were deported in October 1941 after Hitler’s attack on the Soviet Union. Also we will prepare a special tri-lingual edition of the results of our work over the last years for the Agency of Cultural Heritage Protection of Georgia for the Frankfurt Book Fair 2018, where Georgia will be host country. This forms a huge opportunity to spread the news about this unique cultural heritage in Germany.

Certainly we will support the German and Georgian students in implementing their project ideas beginning with the learning pathway in Bolnisi that will be supported by the Agency Creative Georgia of the Ministry of Culture and Heritage Protection.

Finally we will launch a new project linking the region of emigration and their destination in the virtual space through “Wandering objects, migrating people”, which we will implement together with the University Tuebingen, Ilia State University, the City Museum of Tuebingen and the new Regional Museum in Bolnisi by the Georgian National Museum Department. Here we want to experiment with new ways of presenting objects and telling stories about the German colonists, their fates and their families from the departure 200 years ago until today relying on modern media and ways of knowledge transmission.

We will be busy in the coming year as well.

Who are the supporters and the members of the organization?

We have only about 40 members, but a very active cooperation with the Association of German descendants in Georgia EINUNG, the Evangelical-Lutheran Church in Georgia, the Ministry of Culture and Monument Protection, the Sakrebulo of Tbilisi, the German Embassy and Ministry of Foreign Affairs and private donors and sponsors. We

expect in 2018 to do more for preservation and rehabilitation as well as community outreach to strengthen the awareness among the current population about the resources at their disposal.

Briefly about the missions, which one’s progress would you emphasize until now?

We have now a clear picture on how rich the heritage is that survived in Georgia unlike many parts of the Volga basin in Russia. It is a unique heritage that will attract interested tourists, but the programme must be diversified beyond the German heritage linking it with natural landscapes like the Dashbashi Canyon near Trialeti, hiking and velo tracks, traditional cuisine and other special offers.

The next step is to get the local population more actively involved since they still live in that heritage and are the foremost people to be involved and supported in securing the heritage for the future.

We hope by bridging the communities with German expertise we can help them to improve their own living conditions.

As we know, you are a professor in European and Caucasian Studies at Ilia State University. How would you evaluate education system in Georgia nowadays, what are the tips you would give?

This is a very broad topic. Over the last 14 years took huge efforts to reform its education system according to European standards, introduced modern school curricula, erased systemic corruption at university entrance exams through the introduction of a nationwide anonymous testing system, joined ERASMUS and thus opened European universities to Georgian students and finally started to tackle the problem of professional education. Reforms in education need time to take effects.

Most important seems to me to prioritize support to quality education on all levels, acknowledge and accordingly remunerate educators according to the importance of education for a country with only few natural resources fully relying on its citizens capacities to develop Georgia in a creative and interesting way. More emphasis therefore needs to be put on skills and capacities, self-reflection and empathy instead of reproducing knowledge. This also requires the retraining of teachers and educators at higher education institutions. Lifelong learning opportunities on all levels as well as support measures to convince the employers to actively participate in the professional education sector. The latter one seems to me to be the biggest challenge for the moment. However, Georgia came a long way compared to the “dark nineties” when I came here for my PhD. Georgia has chosen its European way and I have chosen my Georgian way to accompany Georgia in the future.

Employment

October 23, 2017 #213

7

Unemployment remains Georgia’s one of the key challenges. However, we have the situation, when a major part of population is unemployed, but the private sector starves of qualified staff anyway.

Almost all fields lack for professional workforce. Specialists explain thar the changing demand and standards on the market have shaped this reality.

Mismatch between the demand and supply is also reflected in the 2016 report of Health Ministry. According to specialists, a lack of vocational schools has made professional staff deficient, however, even the existing vocational schools cannot satisfy the market demands, standards and requirements.

Imeri clothes manufacturing company cannot expand business because of a lack of qualified staff. The company built a new workshop in Kutaisi, nearby the current clothes factory, in spring 2017. The company management expected the output to double.

Today, Maia Simonidze, head of the company supervisory board, explains

is a psychological moment. Part of our society is accustomed to sleep up to 12 o’clock waiting for money transfers from family members from abroad. This psychological factor creates problems. Therefore, the new plant could not launch working at full capacity because of lack of qualified staff”, Simonidze noted.

Imeri company is located in Kutaisi.

Before 2013, the company used to sew clothes for German Lubeck and Italian Moncler. Over the past 2 years the company decided to make accent on the domestic market too and today the company owns three stores (2 ones in Kutaisi and 1 in Tbilisi).

Exports’ ratio in the company orders

professional staff after huge efforts. Naturally, the country lacks for professional staff and this moment also complicates doing business. The situation should change in this respect and more vocational schools should be launched», Nikolashvili said.

Koki Gakharia, co-owner of KABA company, also talks about a lack of professional staff. The country and, the fashion business especially, face problems with professional staff.

«Besides sewing, many other criteria should be satisfied in the plant. Problems with professional staff starts from schools. Currently, our company does not have this problem and

domestic qualified workforce in the country. The Authorities are responsible for this situation, because nothing important has been done to train and prepare professional staff and popularize vocational education.

Today we have this legislation – if a person decides to abandon the 9th class and go to vocational school, he/she cannot receive higher education. They have to to go back to the 9th class, pass the full course up to 12th class and take exams for a higher school after that. Taking into account the mindset of Georgian parents, they do not want to kill future perspectives of their children”, Petriashvili noted.

that only one workshop continues operation in Imeri, because the company could not employ qualified staff.

The company needs about 100 qualified workers in the new plant and the company is ready to train them, however, the plant has failed to attract this workforce.

“Today it is very difficult to find qualified staff. Salaries at our factory range from 400 to 450 GEL. The many does not have resources to pay more. I have no idea why they do not come, maybe low salaries or other reasons.

Unemployment has long rooted in our society and this factor has limited working capacities. People have lost principle – how can I sit at home without job. For many years they have seen family members and friends unemployed and now they also prefer to stay unemployed. I think this

accounts for 90%. The company receives orders for various clothes of men and women, including: manteau, coat, skirts and so on.

Nika Nikolashvili, founder of Nikoli children clothing startup, says that Nikoli was founded on February 14, 2017. The 100% Georgian plant is located in Tbilisi.

Initially, drawing capital is the most complicated moment, including human resources and material resources, he said. It is very difficult to buy high-quality fabric in the country. In reality, there is no fabric company in Georgia and this factor creates huge problems. The country should carry out changes in this direction and a fabric plant should be organized, he added.

«At this stage, our company employs 4 tailors. We have employed

it has hired experienced staff», Gakharia said.

Luca Polare, Georgian ice-cream brand, states that there are many problems in business sector, but all of them are soluble, starting from competitive capacity ending with GEL depreciation over the past period.

Employing qualified staff is also a serious problem, the company representatives noted.

The company faces serious problems with employing technical specialists and bakers, they added.

Several months ago Irakli Petriashvili, head of Association of Trade Unions of Georgia, was also talking about unqualified staff. The Authorities are responsible for this situation, he said.

“There are a lot of facts, when in Georgia companies invite foreign workers, because employers cannot find

Statistics of employment of foreign citizens also stresses there is a deficiency of qualified staff in the country. According to Service Development Agency of Ministry of Justice, 9 337 foreign citizens received labor permit in 2015, 9 635 - in 2016. A total of 22 362 foreign citizens received labor permits in Georgia since September 2017.

This is a very high indicator for 2.5 years, Irakli Petriashvili noted.

“I do not know specific enterprises, where big groups of foreign citizens work. I know that citizens of China, India, Turkey are mainly employed, while Georgian citizens remain unemployed and leave the country to earn their living. Issuance of so many labor permits to foreign citizens will bring catastrophic results”, Petriashvili noted several months ago.

Georgia Lacks Professional Staff

PR Person

8

October 23, 2017 #213

Interview with Head of Public Relations and Marketing Department of Revenue Service, Khatia Moistsrapishvili

“Personal relations, of course, it’s impossible to communicate with all of them personally, but I find it so important, it’s worth an effort to create contacts wide network”.

‘New challenges has appeared in Public Relations’ Why did you decide to work in this field and what opportunities does PR give you in terms of career growth?

It happened itself, I was in journalism field when I received several proposals to enter PR, I made my decision at some stage. I won’t say, it took me long to make up my mind, on the contrary, I had to decide very rigidly and painfully, with what I proud today. I can’t imagine myself feeling more comfortable in any other field.

What is it necessary to hold successful communication with the public?

Knowledge and skill of relationship, which is the combination of numerous skills.

What three tips would you offer someone just starting out in PR? ‘’Advice’’ is a bit exaggerated, although what I consider as important is: generally, you should love what you do and be able to work for it hard; second- people won’t forgive you superficiality, duplicity, not knowing a topic. Consequently, any topic that you are planning to represent to public, position to share, must be thoroughly prepared, knowing all details and be ready for any question. And third- you’ll be privileged if you won’t hide from what interests public, in any circumstances.

What do you wish you would have known before starting your career in PR? It’s hard to say specifically. I used to be a news correspondent, TV host and author of analytical programs for years. There-

“

24/7 regime, open relationships with no constraints- there is no reason, that can justify unresponded question from PR Manager’s side.

fore, I gained solid skills in terms of public relations. Although, learning is continuous process, and one must develop himself constantly.

How would you go about finding relevant contacts and sources?

Personal relations, of course, it’s impossible to communicate with all of them personally, but I find it so important, it’s worth an effort to create contacts wide network.

What’s your typical working week?

Eventful, with lots of planned and unscheduled tasks.

How would you prioritize and start your work day?

My work day starts very early, before getting to work.This is some nice coffee with chocolate, I check e-mail of work, short, but energising communication with family members, look up news through internet and if it’s also a sunny day, it will be a successful day for sure.

What skills are needed to be a successful PR Manager?

Let’s discuss this topic in more details, to be a successful manager means implementing successful projects based on team principles, support your team-members to grow professionally, realize lucrative ideas and form new leaders. As for progressing PR Manager, one should be able to communicate with public, all with the above-mentioned skills.

This is a very sensitive field, you must adjust public’s mood, attitude, foresee risks and

difficulties, which affect them and mostly impossible - share information, that they resist, most importantly, let them receive and get interesting result for you.

What trait do you value the most in your co-workers?

Sincerity, team-player, humor, respectful to colleagues, patience and forgiveness.

What is the best PR practice technology can’t change?

24/7 regime, open relationships with no constraints- there is no reason, that can justify unresponded question from PR Manager’s side. There is always an answer. This is already a PR technology, that is oriented to your desired conclusion.

What are some of the growing trends in the public relations industry?

Public Relations field has become dynamically progressive over 10-12 years. Although, there were essencial amendments last to years, bringing new challenges: Visual storytelling and content- of course press releases are still actual, as a way to share information, although the form has changed significantly. New generation release must be short, witty and interesting. We need to use visual content to increase interest. Digital marketing is new and solely actual these days. Mentioned platform actualization created and activated new source of information sharing - Live video, that was followed by Real-time marketing as a chain reaction. I would also mark out reputation rule.

Tourism

October 23, 2017 #213

Photo: www.gotravelyourway.com

As Regional Tourism Center bfm.ge

Summer tourism season has come to a close. Both government and field experts expected the sector to bring considerable revenues and this is not surprising if we analyze the statistics of the past years: the sector keeps growing year to year. To be precise, 5 901 094 visitors arrived in the country in 2015, the figure rose to 6 360 503 visitors in 2016 (8% growth year on year).

If we compare the mentioned indicators to the 2017 January-September report, the country hosted 5 822 835 visitors, including the number of tourists, people who have stayed in the country for more than 24 hours, constituted 2 783 594 persons, up 28% year on year. The country’s revenues from the tourism sector exceeded 1bln USD in the second quarter of 2017, however, similar positive statistics are frequently accompanied by criticism too.

For example, the Embassy of Great Britain in Georgia has released a special statement, where urged its citizens to show particular caution when visiting Georgia.

“Crime level is low in Tbilisi, however, time to time burglars prowl at night in the center of the capital city, especially near bars and clubs and entrances of residential buildings.

There were cases, when taxi drivers committed sexual assaults. We recommend you to walk without much money and do not walk

at night. Take care when crossing streets. The red lamp and the Zebra crossing do not mean that drivers will slow down driving. Road accidents happen very frequently, because of improper driving and violation of traffic regulations. The city lacks for public toilettes and you will have to use ones at cafe-bars”, the Embassy recommendations read.

Giorgi Chogovadze, head of National Tourism Administration, responded to these recommendations. This is an ordinary fact caused by excessive caution, Chogovadze said.

“British Embassy publishes similar statements every time, when British citizens pay visits to this or that country. I can recall samples, when similar statements were made, when British citizens were visiting France, Italy or other countries of EU. However, this does not rule out that there are problems in Georgia. Nobody denies this factor. Growing inflow of tourists has just uncovered those critical moments and criti-

9

Georgia cal fields, where more attention is required”, Chogovadze said.

It should be also noted that, according to the rating of Crime Index 2017 composed by the Numbeo portal, Georgia has showed the best results in terms of security. Namely, Tbilisi ranked 19th among 378 cities of the world and surpassed other cities in the region in 2017, the NUMBEO research portal reports. Crime index in Tbilisi constituted 19.96 point and security index totaled 80.04 point. For comparison, Yerevan ranks 88th and Baku is 71st. In a number of cities the security index were composed due to several cities. For example, Turkey’s safest city is Bursa (29th place), Izmir ranks 67th, Antalya is 93th, Ankara – 179th, Istanbul – 246th.

Russia’s safest city is St.-Petersburg (42.28 point). Moscow ranks 205th, Novosibirsk is 239th and Yekaterinburg is 261st.

Numbeo is the world’s one of the major databases collecting information on consumers in various cities and countries of the world.

The tourism department director also talked about the meeting at Ministry of Economy led by Prime Minister Giorgi Kvirikashvili, where the January-September performance was summarized. The meeting participants identified the existing problems,including in terms of service quality, which remains one of the key challenges today. The meeting participants agreed to provide active job on the issue, Chogovadze said.

“We show a complex approach to this issue, even more so the meeting was led by Prime Minister and we have discussed all directions how to improve service quality, starting from trainings ending with large-scale changes in the education system. We have identified the problems that are frequently mentioned by international tourists and Government of Georgia does not turn a blind eye on these problems. We will continue making advancements stage by stage so as Georgia come up with Europe and world standards in terms of service quality. Government’s comprehensive involvement in resolution of tourism sector’s challenging issues is a clear sample to this”, Chogovadze said.

Tourism sector expert Shalva Alaverdashvili has talked about problems in the service segment. He told the the Banks&Finances that there are certain gaps in service direction and both foreign and domestic tourists frequently complain about these problems, he said.

“I would evaluate the 2017 tourism season by 9 point of 10 ones. I do not agree with the idea that there are serious problems in tourism sector in terms of services. We have overcome bad phases. Naturally, we are far from the good situation, but this is not a catastrophic situation. 90% of discontent tourists are Georgians, not foreign ones.

The most negative and worst evaluations come from Georgians, especially ones liv-

ing abroad. Moreover, over the past period blogs emerge as one of the most critical sources, especially Russian bloggers, who mainly write negatives about our country”, Alaverdashvili said.

Ia Tabagari, head of association of tour operators, says that the active tourism season has outlined all the existing problems that should be resolved immediately.

“Georgia has grown into the regional tourism center and the inflow of tourists has exceeded initial expectations. However, a higher inflow of tourists has also brought more problems. The country turned out unready for many issues, namely, the issue is of such problems as disordered infrastructure, invaluable travel centers, invaluable transport. We know that a major part of tourists arrives in the capital city and then leave for various tourism places from there.

Therefore, all these factors require due analysis and support. There are invaluable toilets and relaxation places at highways. On the other hand, we should take into account that low-income tourists arrive in Georgia and this factor cannot make contribution to the segment of domestic residents involved in the tourism-hospitality industry.

We have problems in the service field and we have serious problems in terms of ecology. If we do not provide due job, these problems will further deepen in the course of time”, Tabagari said.

business

10 Business Association of Distributors and Nexia TA Sign Cooperation Memorandum NEXIA TA, an auditing and consulting company, has held a workshop for members of Business Association of Distributors with the aim to promote business sector development.

The workshop on the topic “Management’s Financial Decisions in Commerce Sector, Legislative Amendments and Related Challenges” was organized with the support of Business Association of Distributors. Iuri Dolidze, head of accountancy and audit supervision office, and the department head David Mchedlidze updated the participants on the new requirements in the legislation, explained their approaches and technical details. Nexia TA managing partners and direction managers introduced challenges and new opportunities to the audience and discussed various issues. The parties signed a memorandum on cooperation, under which the association members will enjoy special preferences for Nexia TA services.

Churchkhela by Nugbari Exported to European Markets Churchkhela producer company “Nugbari” will be exporting 3,500 pieces of sweets in Czech Republic within a few days. Products will be sold in a number of trading stores in Prague, Budapest, Vienna and Bratislava in a trial regime.

In addition, the Americans and Koreans were also interested in Georgian Churchkhela’s. Bidzina Pkhovelishvili, the founder of Nugbari, said that two weeks ago, 2,000 units were sent to the US in a trial regime, and in case of a positive assessment, negotiations will begin on large parties. The same situation is with South Korea, where a week ago, 1000 units were sent to South Korea’s branding. LTD Nugbari was founded in 2015. Company employed 35 people. The enterprise located in Tsnori, produces up to 3000 Churchkhelas. The price of unpacked ones is 2.70 GEL, as for packed ones, it costs 3.00 and 3.20 GEL.

Remus by Polish Miniatura City Theatre Performs in Georgia Award-winning performance “Remus” directed by one of the best polish theatre directors Remigiusz Brzyk comes in October to Tbilisi and Batumi.

It is a universally comprehensible drama of a minority struggling for its salvation in a world which gave away authority to the majority. “Remus” tells the story of Kashubians, ethnic minority in Poland but on a higher level it is a performance about identity and nationality in modern, globalized world. The performance is based on „Life and Adventures of Remus” by Aleksander Majkowski – the most important literary work written in Kashubian. Here the real world mixes with the world of Kashubian legends and fairy tales.

It is a colourful work of fiction, analogous to „Don Quixote”, with the main character being accompanied on his travels around the Kashubia by a faithful companion, a musician called Trąba.

October 23, 2017 #213

EEA Real Estate Forum & Project Awards 2017 — The Third Real Estate Forum EEA Real Estate Forum & Project Awards 2017 — the Forum and the Award for projects in the real estate to countries of Eastern Europe is going to be held on November 23 in Kyiv, Ukraine.

The Forum will bring together more than 200 professional companies of the real estate markets from Kazakhstan, Azerbaijan, Georgia, Belarus, Moldova and Ukraine. Organizers of the Forum and the Award — URE Club association and the Europaproperty. com edition.

Guest registration of the EEA Real Estate Forum & Project Awards 2017 is already open! For more information, please visit the official website: http:// www.eeaawards.com/

Potato International Center Representative Opened in Georgia The opening ceremony of Georgian Potato International Center was held in Tbilisi. The Center’s representatives plan to introduce innovative technologies for potato care and import new perspective varieties. the Leader of Regional Center of the Potato International Center in Central Asia and Caucasus, Rusudan Mdivani, talked about the importance of representation.

“Cooperation gives us the opportunity to have more access to the world’s achievements in the agricultural sector, innovations and modern technologies for the care of potato that we naturally will sustain in Georgia” – Deputy Minister of Agriculture Yuri Nozadze speaks about prospects of cooperation.

“Potato, as well as wine, is part of Georgia’s great culture. The representative of

the International Center of Potato will become the regional office of the Center, from which the Central Asia and the Caucasus countries will be covered. The organization will promote development of the sector not only in Georgia, but in all the regions, “- says the Chief Operating Officer of the Potato International Center Michael Gerba.

International Center for Potato represents an Agricultural Consulting International Counseling Group (CGIAR), which was founded in 1971 by its initiative. The mission of the International Center for Potato is to cooperate with partners in achieving food safety, helping the needy population and protecting gender equality through the development and implementation of agricultural research and innovation.

Success Story of Blind Farmer from Adjara Lurja 2015 is a cooperative developed as part of EUfunded program of ENPARD. The cooperative is located in the village of Ochkhamuri, Kobuleti District. Several members of the cooperative are blind persons.

Thanks to a grant, farmers in Adjara arranged strawberry and raspberry plantations and picked the first harvest in 2016.

The financial support implied a transmission of plant seedlings, installation of newest dripping technologies and other necessary technical equipment. In his interview with eugeorgia. info, Aleksandre Tsevelidze, one of the founders of Lurja 2015, talks about the cooperative plans and potential of berry cultures in Adjara.

-Why have you decided to arrange berry plantations?

– I am a veterinary doctor, by profession, from Gori. I had comprehensive information about taste characteristics and importance of berry

fruits for human health. This was one of the reasons why I have decided to arrange berry plantations. At this stage, our cooperative owns 3 hectare land plot with strawberry and raspberry plantations.

Besides taste characteristics, berry fruit are used also for healing purposes and it is an in-demand product on both domestic and international markets. It is grows quickly and gives crops in the second year. We would have to wait 4-5 years in case of mandarin and nuts, but in this case I picked the harvest in a year. Therefore, berry plants are more profitable.

-We know that blueberry is in special demand.

-Naturally, we know about this. One of the members of our cooperative arranged blueberry plantation on 3 000 square meter land plot. Now we are conducting an experiment and we are interested to arrange plantation of domestic forest black berry.

11

October 23, 2017 #213

Nenskra Hydro Seeks a Provider of English Language and Computer Skills Courses to Be Arranged in Svaneti Region

J

SC Nenskra Hydro, Nenskra Hydropower Plant project company will offer free English language and computer skills courses to the community members in Chuberi and Nakra villages, Mestia municipality. At this stage, the company seeks a provider, which will ensure an implementation of such courses in the above-mentioned villages, for a one-year period. Any interested individuals or legal entities, can submit their offers, although priority will be given to the residents of Samegrelo-Zemo Svaneti region. Selected

providers will be announced in November.

The courses will be financed by the project company of Nenskra HPP, within the framework of Community Investment Program, developed by this company.

Community Investment Program is an associated investment program of Nenskra Hydropower Plant project, which was developed based on needs of population residing in the villages Chuberi and Nakra of Mestia municipality. The project aim is to facilitate sustainable economic development of region

and create of more opportunities for the local population. Community Investment Program includes such directions as: small-scale infrastructural projects, support for development of small and medium enterprises, skills improvement, etc.

“The main objective of Community Investment Program is to create more opportunities for the population of villages Chuberi and Nakra. It is very important for us that all projects within this program are implemented with active involvement of local community

members and are fitted to real needs of population”, – said Teimuraz Kopadze, Chief Operating Officer of Nenskra Hydro. JSC Nenskra Hydro is a project-based company established 2015 as a result of cooperation between Korea Water Resources Corporation K-Water and JSC Partnership Fund. The company will construct the Nenskra Hydropower Plant in the Nenskra and Nakra river valleys in Mestia Municipality of the Svaneti region. The 280-MW Nenskra Hydropower Plant will generate approximately 1’200.00 GWh of electricity annually.

Brand History - Ipkli T

hea idea of founding company - The story of company ‘’Ipkl’’i starts since 1993, when it was hard to think about starting your own business in Georgia, considering hard economy situation in the country back then. The first steps of ‘’Ipkli’’ was so modest, that no one would imagine it would become such growing and developed company.

Muffin with raisin was a first product of ‘’Ipkli’’, baked by Shakro Bakuradze, the owner of the company himself.

The key to success- One of the crucial moment in company history, as in any bread-lover’s life, was 1996, when the first long loaf bread was baked in ‘’Ipkli’’. The bread got so popular among Tbilisi inhabitants, that it replaced any old-style bread. ‘’Ipkl’’i white bread is still on a leading position among Georgian customers. This success let company to expand, which was followed by launching

Tsereteli ‘’Ipkli’’ bakery in 2001.

The biggest factory in Tbilisi was opened in 2009, which implied noncontact bread baking technology. It was not an easy journey for the company to achieve success, although, the team members of ‘’Ipkli’’ worked hard to gain loyal customers on the market. This is the most important power, which empowers company to overcome difficulties and keep developing.

The interests of customers is the most important, which is taken care by 300 team members, conversely from 90’s; Team is simultaneously growing and strengthens along the company development.

The company has numerously awarded and became a winner, as achieved success in the field. Among the awards are: the leader of the field, best quality and golden brand title.

Each reward is a motivation for ‘’Ipkli’’ to offer their consumers more novelty and profit from

the company, that ‘’bakes with heart’’.

The history of the name and logo- The name ‘’Ipkli’’ is a Georgian word, which means wheat sown in Autumn, it also marks one of the type of wheat.

Logo sample was created later, which expressed thematically wheat ‘’Ipkli’’. Despite, logo had amendments, the first features were preserved. ‘’Baked with heart’’ is the motto of the company, as bread is

made with love and caring in ‘’Ipkli’’. Nowadays, word ‘’Ipkli’’ is associated with only company for the customers, who contributed to turn small bakery into the bread-making biggest company in the country.

12

publicity

October 23, 2017 #213

October 23, 2017 #213

world

13

Foreign investments to Armenia in first half exceed one billion USD

Foreign investments to Armenia in first half exceed one billion USD Foreign investments in the Armenian economy surged by 36.6% in the first half of 2017 as opposed to the same time span of 2016 to over $1 billion, economic development and investments minister Suren Karayan told journalists on Wednesday. The minister specified that foreign direct investments (FDI) during the reporting period increased by 26.3% year-on-year to about $ 328 million.

‘In fact, one third of the investments are foreign direct investments, which means that foreign investors invested in the authorized capitals of Armenian companies, which are actually portfolio investments that will ensure further development,” Karayan said.

According to him, Armenia is also carrying out a number of legislative initiatives to attract investors, which will help create a favorable field for them.

In this connection, the minister singled out a government-approved draft law on foreign investments, which introduces redomicilation (relocation) of foreign companies, the prospect of granting Armenian citizenship to foreigners who will carry out a certain amount of investments, as well as the Law on Free Trade Zones.

Also, according to Karayan, steps are being taken to conclude agreements on mutual encouragement of investment with a number of countries, including Jordan, the United Arab Emirates, Montenegro, Korea, India, Australia, Brazil, Mexico, Moldova, Japan and others.

Trans-Caspian Route Proposes New Alternative Transportation Links Between Belgium and China Shenzhen, China, OBOR workshop seminar (One Belt One Route workshop) was held within the framework of the 12th China (Shenzhen) International Logistics and Transportation Fair. The seminar was organized

by Wallonia Export – Investment Agency (Belgium) with the assistance of the Shenzhen Logistics and Supply Chain Management Association (China). Speakers at this event were – Mr. Michel Kempeneers, COO of Wallonia Export – Investment Agency, Mr. Li Zhi, Director General of Shenzhen Logistics and Supply Chain Management Association, Mr. Bernard Piette, General Manager of Logistics in Wallonia, Mr. Zhang Wen, Director of International Transport Department of CRCT and many others. Representatives of the International Association “TransCaspian International Transport Route” also took part at the seminar and presented to the audience current situation and development perspectives of TITR (Middle Corridor).

Further within the framework of the event a Memorandum of Understanding was signed between Walloon Export and Investment Agency and International Association “TransCaspian International Transport Route” with an aim of future effective cooperation.

The EBRD Board of Directors has approved a $ 500 million regional project that will help finance the delivery of crucial energy supplies from the Caspian Sea through to Europe along the Southern Gas Corridor (SGC) and make an important contribution to energy security and diversification.

The EBRD financing will fund the completion of the Trans-Anatolian Natural Gas Pipeline (TANAP) that passes through Turkey, reads a message of the Bank.

TANAP is a key part of the SGC which will strengthen Europe’s energy security, promote interconnectivity and open gas markets. It will also help provide a better energy supply mix for consumers in the Balkans and southeastern Europe as well as achieve significant CO2 reductions through the substitution of obsolete coal-fired power plants.

The Bank’s engagement in the project will ensure adherence to the highest environmental standards and allow continuing extensive dialogue with all stakeholders of SGC.

The Southern Gas Corridor includes gas infrastructure investments into a 3,500-kilometre pipeline running through six countries with a total cost of $40 billion.

The key components are the Shah Deniz offshore gas field in Azerbaijan, the Southern Caucasus Pipeline in Azerbaijan and Georgia, TANAP in Turkey and the Trans Adriatic Pipeline (TAP) through Greece, Albania and Italy. The initial annual throughput capacity will be up to 16 billion cubic metres, which is equivalent to the annual energy consumption of more than 10 million households in the region.

Turkish Retailer DeFacto Is Said to Hire HSBC, Citigroup for IPO

Turkey’s Transport Ministry bans sailing of commercial yachts, passenger ships to Greece after seizures The Transport Ministry issued a ban on Turkish-flagged commercial yachts and regular passenger ships sailing to Greece as of Sept. 25 after the Greek authorities seized 11 vessels for allegedly violating a maritime regulation overseeing the quality of international sea transportation. In a statement sent to regional port authorities, the ministry banned the sailing of Turkishflagged commercial yacths to Greece as of Sept. 25, as well as regular passenger ships as of Oct. 12, citing the Paris Memorandum of Understanding on Port State Control (Paris MoU) inspections. Transport Minister Ahmet Arslan said Athens’ measures put Turkey’s position as a “white flag” country at risk, with a potential downgrade to “gray flag” status.

“As of today we have stopped the sailing of commercial yachts to Greece. The fact that Greece started to inspect and seize such small commercial vessels, shorter than 24 meters, by claiming that they did not comply with the rules, began to put at risk Turkey’s status as a white flag country. This is unacceptable,” Arslan told state broadcaster TRT Haber on Sept. 25. “We have also warned our

correspondents and sent our experts there. We said that if Greece changes this exception, our commercial yachts will travel to Greek islands and contribute to your trade. But we will not allow those vessels to sail as long as Greece maintains its attitude regarding this rule,” he said, adding that he would discuss the issue with his Greek counterpart on Oct. 12 during his visit to the country.

Meanwhile, Samos Star, a firm operating between Turkey’s Seferihisar coast and the Greek island of Samos, told passengers about the authorities’ decision to ban the sailing of commercial yachts to Greek waters.

According to reports, the seizure of four commercial yachts bound for the Greek islands of Kos and Rhodes, as well as a freighter off the port of Kalamaki, played a role in the ministry’s move. A number of firms operating tours to Greek islands have also announced that they would halt their plans as of Oct. 12, though some said they have not received any official text on the issue. Bodrum Sailors Association head Mustafa Demiröz said the issue should be resolved through dialogue.

A Turkish clothing retailer that counts Mark Mobius among its shareholders hired Citigroup Inc. and HSBC Holdings Plc for an initial public offering next year, three people with knowledge of the matter said.

Owners of ready-to-wear fashion outfit DeFacto Perakende Ticaret AS also appointed Istanbul-based Unlu & Co. as global advisers for the planned share sale on Turkey’s stock market, said the people, asking not to be identified because the plan isn’t public. Is Yatirim Menkul Degerler AS and Ak Yatirim Menkul Degerler AS were hired as local brokers, they said. DeFacto’s owners, which also include Chairman Ihsan Ates, are seeking to raise as much as $350 million from the share sale, one of the people said. DeFacto, Citigroup, HSBC, Is Yatirim and Ak Yatirim all declined to comment. DeFacto had 439 shops at the end of 2016 in 19 countries, with 330 outlets in Turkey. Chairman Ihsan Ates said in August that the company plans to add more than 100 shops this year in Turkey and countries such as Russia and Kazakhstan, as well as in the Middle East and North Africa. The IPO will probably be based on the company’s 2017 financials, which means that it’s likely to take place in the first half of next year, said the people. A fund within Mobius’s Templeton Emerging Markets Group bought 8 percent of DeFacto in 2015 for an undisclosed price.

Templeton may exit the stake through an IPO, DeFacto Chief Financial Officer Onder Senol said in December of that year.

Companies are taking advantage of increased appetite for share sales from Turkey as political uncertainty subsides. The value of IPOs this year already surpassed funds raised in the last three years combined, according to data compiled by Bloomberg.

14

publicity

October 23, 2017 #213

October 23, 2017 #213

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 Kingdom of Spain Embassy Rustaveli Ave. 24, I floor, Tbilisi Tel: 230-54-64 E-mail: emb.tiflis@maec.esRomania Embassy 7 Kushitashvili St., Tbilisi Tel: 38-53-10; 25-00-98/97 E-mail: ambasada@caucasus.net Republic of Poland Embassy

Tbilisi Guide 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 European Investment Bank Regional Representation for the South Caucasus Address: 1,G.Tabidze Street, Freedom Square Phone: +995 322 006284

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 River Side Hotel With incredible service and views Addr: Mari Brosse street turn, Old Tbilisi.

Tel: +995 32 2242244; +995 32 2242288 Fax: +995 32 2 242277 Email: info@riverside.ge Website: www.riverside.ge

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

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,

15 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

75 Agmashenebeli Ave. Tbilisi Tel: 577 18 27 87 Email: hostelmtevnebi@yahoo.com

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

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

October 23, 2017 #213