Caucasus Business Week #230

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March 19, 2018 #230

March 19, 2018, Issue 230 - www.cbw.ge

Real Estate Apartments in Khrushchev Projects Hold 4% in Tbilisi

Pg. 9

Klaus Holm Laursen:

Tamar Dighmelashvili: “Small vessels will conMarketing and Public tinue to provide flexibility Relations is an art and commercial opportuni- for me ties for the cargo owners”

Pg. 7

Pg. 8

AYFB: Developments around RMG Gold Give Negative Signal to Investors

We May Have Absolute Chaos after April 10

Association of Young Financiers and Businessmen (AYFB) expresses confusion regarding the recent developments around RMG Gold.

Namely, 13 political parties demand for abolishing auction for 16 hectare land nearby LLC RGM Gold in the village of Didi Dmanisi. According to representatives of these political parties, this is an illegal auction and they ask Minister of Economy and Sustainable Development Dimitri Kumsishvili and Chairperson of National Property Agency Ekaterine Sisauri for abolishing this auction.

Since no political party has named specific law violation facts as a ground for auction abolition, AYFB has examined the auction terms to clarify which articles could had been violated. The examination process has not exposed any fact of breaking and/or ignoring the law. Therefore, AYFB declares that the mentioned auction fully complies with provision on managing state property in the form of public auction. Consequently, it is unclear why these political parties demand for annulling the auction and abolishing its terms.

Georgia Attracted Historical Amount of Foreign Direct Investment in 2017

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Pg. 4

In 2017 the inflow of foreign direct investment to Georgia hit a historic maximum. According to Geostat, the national statistics service of Georgia, in 2017 FDI inflows constituted $1.861 billion, up 16.2% from the previous year ($259.1 million).

Prior to publishing the 2017 indicators, Geostat reported that major FDI inflow was recorded in 2007, apparently more than $2 billion.

However, the recent report shows that Geostat previously published wrong information.

“We have fulfilled the recommendations given by the November 2016 IMF mission. Those recommendations called for keeping records on FDI positions [balance] in Georgia in an integrated format [in accordance with international investment conditions, which call for recording balances jointly with flows]. As noted earlier, this process has improved historical data dynamics and harmonized balances and flows. Changes concerned the 2006-2017 indicators.

Results will be reflected by statistics of payment balance, international investment positions and external debts, which are compiled by the NBG” the Geostat statement reads.

Pg. 4

Newsroom

2 Government

Small Business to Pay 1% Turnover Tax on Taxable Income

From 2018 small business companies will pay 1% of total incomes, instead of today’s 5% tax. The smoothed tax regulations will refer to about 120 000 physical entrepreneurs and they will enjoy the status of a small entrepreneur.

EU allocates 11.8 million GEL to fund 8 new civil society projects in Georgia

The European Union is allocating 11.8 million GEL to fund eight new projects for 20182020 in Georgia in order to support civil society and human rights in the country.

economy

Georgia Received $159.3 Million Revenue From Tourism in January

In January, Georgia received $ 159.3 million in revenue from tourism. In January-February the number of tourists increased by 25% and the number of visitors increased by 17.2%.

RMG GOLD among Georgia’ 50 Top Investors in 2017

RMG is Georgia’s major investor in heavy industry and investments by the related companies promote development of mining industry in Bolsnisi, Dmnisi and Tetri Tskaro region.

banking

International Bank of Azerbaijan to Withdraw from Georgian Market

The controlling interest of IBAR is owned by Government of Azerbaijan. IBAR launched operation in Georgia in 2017 as International Bank of Azerbaijan – Georgia.

IBAR finished the fourth quarter of 2017 in profits of 750 960 GEL.

Liberty Bank Started Issuing New Mortgage Loans

Simple mortgage loan will be issued without any extra cost.

The loan does not charge for issuance of loan, service and foreclosure payments – the borrower will pay only the percentage with the fixed term of the loan.

business

Oil Products Turnover Declines at Batumi Seaport

According to Reuters, 202 322 tons of oil and oil products were transported from Batumi Seaport in January-February 2018, while the figure marked 399 858 tons in the same period of 2017.

EU Launches Market Surveillance Project in Georgia

The objective of the project is to assist the Government of Georgia to comply with EU best practice in line with the objectives contained in the EU/Georgia Association Agreement and DCFTA.

company

Coca-Cola to Launch New Beverage on Georgian Market

Coca-Cola will introduce a new product to Georgian market very soon – Coca-Cola + Coffee.

The news has been published on Coca-Cola Bottlers Georgia Facebook page.

March 19, 2018 #230

Review of EU-supported Agriculture and Rural Development Initiatives

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U-funded and supported agricultural and rural development programmes in Georgia, including wine sector reform initiated by the Food and Agriculture Organization of the United Nations (FAO) under the European Neighbourhood Programme for Agriculture and Rural Development (ENPARD), were the main topics of discussion during the high-profile meeting held on 14th of March.

The EU mission led by Susana Marazuela Azpiroz, DG AGRI Head of Unit A5 – Neighbourhood and Enlargement met the Minister of Environment Protection and Agriculture of Georgia Levan Davitashvili.

At the event, the EU mission was introduced to the main achievements under EUfunded agriculture and rural development initiatives implemented in Georgia since 2013.

Minister Davitashvili stressed the importance of the EU’s support and commitment to help improve the lives of Georgians and reduce rural poverty in the country. He spoke about the implementation of the agriculture and rural develop-

ment strategies in Georgia and underlined the EU’s crucial support in this process. The Minister stated that agriculture and rural development remains a key priority within the restructured Ministry and thanked the EU Delegation for continuous support.

The participants of the event also discussed EU’s technical assistance programmes supported by FAO to improve capacities in the Ministry of Environment Protection and Agriculture of Georgia. Special attention was paid to the ongoing process of discussing new institutional models for the reformation of the wine sector in Georgia. Privatepublic partnership governance models specifically created for the Georgian wine sector was recently introduced by FAO under ENPARD. The reform is expected to lead to a better coordination among the Georgian wine institutions and the overall development of the country’s wine sector competitiveness.

Susana Marazuela Azpiroz welcomed the Ministry’s successful work in the areas of

agriculture and rural development and continuous cooperation with EU. In the framework of the visit, EU delegation members visited the national Wine Agency and got acquainted with its activities.

The event was attended by the First Deputy Minister of Environment Protection and Agriculture, Nodar Kereselidze, Head of National Wine Agency of Georgia, Giorgi Samanishvili, Head of Cooperation at EU Delegation to Georgia, Vincent Rey and FAO-ENPARD Coordination officer Javier Sanz Alvarez.

The European Neighbourhood Programme for Agriculture and Rural Development (ENPARD) is recognised as one of the most successful agriculture and rural development initiatives funded by the European Union in Georgia. The first phase of ENPARD in Georgia focused on developing the potential of agriculture. The second and the third phases focus on creating diversified economic opportunities for rural population that go beyond agricultural activities. More information on ENPARD is available at: www.enpard.ge.

86% of Government Bonds are Held

by Banks

H

ow to assess the fact that 86% of the government securities are held by commercial banks? What harm does this cause to society, and whose interest is traced in the absence of a proper level of competition in the local financial market?

Most experts interviewed by Commersant consider it negative that the population does not have access to government bonds that has a negative effect on the financial situation of citizens.

“The National Bank and the Ministry of Finance decided that only commercial banks can participate in bond auctions while the remaining potential investors were simply pushed aside. Theoretically, bonds can be bought through the bank, but in this case the bank’s role as an intermediary deprives it of meaning. In fact, the situation develops in such a way that no one except banks can enjoy the benefits

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: +995 591 01 39 36 WWW.CBW.GE Email: caucasianbusiness@gmail.com

of selling government bonds,” Vakhtang Svanadze, head of the securities registrar CSR, notes.

In his words, the state has long lobbies the interests of the banking sector at all levels, otherwise other parties, including the population, could be involved in the auctions.

The head of the brokerage company Caucasus Group Gogi Loladze believes that inability to participate in auctions for ordinary citizens still remains the main problem. Moreover, even brokerage companies that could quite participate in auctions are deprived of this opportunity .

“Today, brokerage companies do not have direct access to auctions, so we are forced to act through banks while mediation kills competition, especially in a situation where intermediaries are banks. In order the citizens to contribute to the development of the economy, they should have access to small denomination

bonds as today the government sells mostly large cap size securities that are available only to banks, “he says.

According to the stock market expert Vakhtang Khomizurashvili, the problem is also that the amounts from the sale of government bonds are used to finance the budget, while as a rule, they should be spent on more long-term and strategic goals - infrastructure, regional development, road, bridges, construction and etc.

“The problem is also the lack of a secondary market for government securities. All operations with bonds are carried out through commercial banks and this part of the financial market is not regulated. The banks are the primary dealers who completely monopolized the market of government bonds.

In a normal situation, third parties should be able to freely buy government securities, but unfortunately, today we have no such opportunity,” the expert concludes.

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

March 19, 2018 #230

publicity

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econo-mix

March 19, 2018 #230

Record Year for Foreign Investment

Merab Janiashvili Economic Analyst

It should be noted that the investment volume grew in real sectors of the economy, including in agriculture, the mining industry, the processing industry, energy and the development sector. In the real sector, investment volume rose by 39.3% ($173.6 million) and constituted $615.5 million.

In 2017 the inflow of foreign direct investment to Georgia hit a historic maximum. According to Geostat, the national statistics service of Georgia, in 2017 FDI inflows constituted $1.861 billion, up 16.2% from the previous year ($259.1 million). Prior to publishing the 2017 indicators, Geostat reported that major FDI inflow was recorded in 2007, apparently more than $2 billion. However, the recent report shows that Geostat previously published wrong information.

“We have fulfilled the recommendations given by the November 2016 IMF mission. Those recommendations called for keeping records on FDI positions [balance] in Georgia in an integrated format [in accordance with international investment conditions, which call for recording balances jointly with flows]. As noted earlier, this process has improved historical data dynamics and harmonized balances and flows. Changes concerned the 2006-2017 indicators. Results will be reflected by statistics of payment balance, international investment positions and external debts, which are compiled by the National Bank of Georgia (NBG),” the Geostat statement reads.

It is ridiculous that before this correction Geostat and NBG published controversial indicators on the 2007 FDI inflows. As a result of recalculation, the 2007 indicator was corrected to $1.752 billion. From 2006-2017 the quarterly FDI inflows were as follows: (Table #1) According to Geostat, in the fourth quarter of 2017 FDI inflows were $497.4 million, up 89.1% ($234.3 million) over the same period in 2016.

FDI inflows in the construction sector rose by 114% ($156.9 million) and constituted $294.6 million. In the financial sector, investments rose by 98% ($150.4 million) and made up $304.3 million. In the power sector, FDI in-

‘‘

Association of Young Financiers and Businessmen (AYFB) expresses confusion regarding the recent developments around RMG Gold.

Namely, 13 political parties demand for abolishing auction for 16 hectare land nearby LLC RGM Gold in the village of Didi Dmanisi. According to representatives of these political parties, this is an illegal auction and they ask Minister of Economy and Sustainable Development Dimitri Kumsishvili and Chairperson of National Property Agency Ekaterine Sisauri for abolishing this auction.

Since no political party has named specific law violation facts as a ground for auction abolition, AYFB has examined the auction terms to clarify which articles could had been violated. The examination process has not exposed any fact of breaking and/or ignoring the law. Therefore, AYFB declares that the mentioned auction fully complies with provision on managing state property in the form of public auction.

Consequently, it is unclear why these political parties demand for annulling the auction and abolishing its terms. AYFB is sure that the mentioned activity directly violates the right of a private investor and restricts its economic activity. This fact encroaches on Georgia’s investment environment. Moreover, these accusations have not legal ground and directly threaten the company operation, which replenishes the local budget by about 80%.

AYFB believes that the country has been taking unprecedented efforts for improving investment climate in the country and similar unsubstantiated accusations and rude interference in legally operating company seriously damages the international, investment image and reputation of the country. AYFB urges Ekaterine Sisauri, Chairperson of National Property Agency, and Ministry of Economy not to halt absolutely legal auction and not to restrict the private investor’s operation.

‘‘

AYFB: Developments around RMG Gold Give Negative Signal to Investors

Georgia Attracted Historical Amount of Foreign Direct Investment in 2017 flows rose by 61% ($71.5 million) and amounted to $188.6 million.

Major grow in FDI inflows was recorded in real estate and the hotel and restaurant sector. The former sector increased by 68% (+64.6 million USD), while a 58% upturn was recorded in the latter sector ($33.1 million). In total, the investment in these sectors was $159.8 million and $90 million, respectively.

It should be noted that the investment volume grew in real sectors of the economy, including in agriculture, the mining industry, the processing industry, energy and the development sector. In the real sector, investment volume rose by 39.3% ($173.6 million) and constituted $615.5 million.

Major FDI inflow was registered in transport and communications – $527.1 million, which is 28.3% of total FDI volume. The financial sector ranks second, with $304.3 million (16.3%); and the construction sector is third, with $294.6 million (15.8%). As to the contributing countries, major investments were made from Azerbaijan ($482.1 million or 25.9%), Turkey ($279 million USD or 15%) and the United Kingdom ($250.4 million or 13.4%).

It is also worth noting that in 2017 a recordhigh indicator was registered in terms of reinvestments. For example, in 2015 the ratio of reinvestments in FDI made up 9.5%, in 2016 the number had increased to 19.4% and in 2017 had reached 38.2%.

Despite 2016’s record-breaking success in terms of FDI inflows, Georgia’s economy has essentially not increased. Last year GDP growth constituted only 4.8%. This fact confirms that Georgia follows incorrect investment policies, as the country should promote foreign investments oriented around supporting domestic production and export development. Only this type of investment brings true benefits to the country.

“I would like to comment on that fact Georgian Capital has placed 300 million USD Eurobonds at the stock exchange.

This is the first case when Georgia-based non-finance company, investment business holding, has placed 300 million USD Eurobonds at Irish stock exchange.”.

Giorgi Kvirikashvili Prime Minister of Georgia

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March 19, 2018 #230

‘’Oracle sees big potential in Georgia, which will definitely develop’’ Business conference Oracle Day in Georgia took place in Tbilisi on February, 21. The main goal of the event was to introduce Oracle’s state-of-the-art digital technologies and expertise to Georgian IT leaders. In particular, how to optimize business processes using Oracle’s innovative cloud technologies.

Oleg Zhukov, Oracle Cluster Leader for Russia, Kazakhstan, Central Asia and Caucasus, opened the business conference. Company representatives and invited experts presented new technologies and innovative IT solutions to Georgian specialists. Besides, they discussed cloud technology and shared ready recipes that will help to adapt to the digital era of business, reduce costs and update IT infrastructure.

Oleg Zhukov discussed with us specifically what “Oracle Day in Georgia” was about and what is country’s potential in technologies: - Agenda of Oracle Day in Georgia included such important topics as cloud technologies, cyber security and Oracle Information security solutions, Oracle Analytics Cloud: a single platform for Business Intelligence and Data Discovery, smart chatbots, Modern Data Warehouses on Oracle Engineered Systems, new features of Oracle’s database 18c and the new DBMS focus – Autonomous Database, and more.

- How valuable are your products for state structures?

- State structures in Georgia are actively developing and are interested

in our products. The main direction that we offer to the Georgian market is cloud technologies. Interest is mainly directed at optimizing costs for all initiatives, of course, if companies start to collaborate with Oracle as a cloud provider. We also assist in the development of software and Engineered Systems. And Cloud is the main priority.

- What challenges does Cloud respond and how does it help businesses to combat cyberattacks?

- Cloud is a market where all kinds of data are secured, it’s important nowadays. For big amount of information, we can use additional analytical software to analyze all kinds of data related to the specific topic and suggest future decisions.

The Cloud is able to predetermine certain types of hazards and to avoid it. Another direction we have and which is “future” is the creation of large software products that eliminate human errors by using new generation algorithms, artificial intelligence, and all these tools are already built in in our database.

It can see the current errors and exclude them in the future. Oracle Autonomous Database Cloud is

self-driving, self-securing and selfrepairing. Speaking about Georgia, I would like to note that the country is very modern and is not afraid to adopt new technologies because they care about making things safer.

- What are the latest trends in business information technology? Meaning, Oracle intellectual chat-bots, artificial intelligence, machine learning, cloud services, predictive analytics and so on.

- What only recently was an intriguing trend, is now a reality and a new imperative in business management. What is the Oracle Intellectual Chat-Bot? It can speak, as text as well as by sound. It analyzes and interacts with you in a familiar language.

- And how do you assess the market in Georgia?

- We have wonderful partners and customers in Georgia. They are eager to use new technologies and they are trying to learn more about them, because they are concerned about costs, optimization of business processes and the reduction of bureaucracy. Oracle finds quite a significant potential in Georgia, which, for sure, will be developing.

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opinion

March 19, 2018 #230

Irakli Danelia - Business and Economic Centre (BEC)

Preparations for conducting negotiations for an upgraded DCFTA trade regime started in

Role of Poti Industrial Zone in Free Trade Agreements

In addition to these bilateral and multilateral trade agreements, various forms of free economic zones have been created in the world, including free industrial zones (FIZ). The abovementioned trade agreements enable FIZ to operate successfully in Georgia and make the country attractive for investors. Thanks to DCFTA, the Georgian market has gained access to the 500 million market of the EU, while through the agreement with China, Georgia will enter the 1.4 billion Chinese market.

The Role of Poti FIZ It is interesting to note the role Poti FIZ may play in Georgia-EU and Georgia-China trade The Georgia-China agreements for transforming the country into a trade hub. Prior to addressing this role, the potential of Poti FIZ must be explained. agreement is of crucial The formation of free industrial zones (FIZ) is directly related to the stimulation of Georimportance to the Georgian gia’s economic growth. FIZ formation has a positive influence on such macroeconomic economy, as about indicators as volume of production, level of unemployment, inflation and trade balance.

Therefore, Poti FIZ is a crucially important component of the state economy. Why is Poti at the center of this economic growth? The simple answer is based on the geographical location of Poti FIZ, which is attractive for both west and east. It connects the Caspian Sea with Europe and Asia, making it a key point in the New Silk Road transport route.

Poti FIZ was founded in June 2008 on the extensive development zone of the seaport of Georgian products are (a 3,046,037 square meter land plot), and it was transmitted to an investor for a 99exempted from customs year period.

Under Georgian legislation, FIZ is a variety of free economic zone with additional contaxes in China. ditions and tax preferences. Poti FIZ is part of the territory of Georgia with established borders and a law-determined special status. The zone-owner company issues land to investors via lease.

According to the tax code, companies registered in and operated within a free industrial zone enjoy various preferences, for example: • Profits earned in a Free Industrial Zone are exempted from profits tax, excluding the cases determined by the Tax Code; • Delivery of foreign products into the zone is exempted from VAT; • Fulfilled operations are exempted from VAT; • Property in the zone is exempted from property tax; • Delivery of property into the zone is exempted from import tax; • Delivery of products from FIZ to other territories of Georgia (outside of FIZ territory) is exempted from imports tax; • The employee pays an income tax based on income declaration. eorgia is the only country in the region Poti FIZ becomes more relevant due to the signature of free trade agreements, as that has signed free trade agreements it gets the chance to transform the trade process into investments and promote not only general Georgia-China and Georgia-EU trade relations, but also growth in with both the EU and China. Preparations Europe-China trade relations. In order to make use of free trade benefits, Chinese for conducting negotiations for an upand European parties must realize that it is necessary for products to have the “Made graded DCFTA trade regime started in 2009. The in Georgia” classification – otherwise, the agreements will not match. As a result, both European Commission submitted recommendainterested parties will have to relocate production to the Georgian economic space tions for implementing reforms in various fields. either partially or in full, because this status is conferred to a product only if at least 51% of its production is performed in Georgia. FIZ establishes special preferences for After fulfilling these recommendations, DCFTA making investments, which will be attractive for foreign capital, assuming efficient inbegan on September 1, 2014. Today, Georgia is able stitutional and legal support and FIZ management’s capable strategy. to export 9,600 products without customs taxes Chinese investors show an active interest in Georgian production. Seventy five percent as part of the improved trade regime. Unlike other of Poti FIZ is owned by CEFC China Energy, a major Chinese company, which operates Georgian free trade agreements, DCFTA implies a in the fields of finance, commerce, trade and logistics. The company plans to further develop Poti FIZ, including goods production, as well as export to markets with which Georliberalization of trade in both goods and services. gia has free trade agreements. FIZ is located near Poti Seaport, and this factor considerably This agreement calls for harmonizing Georgian reduces logistic expenditures, a factor which increases its potential and attractiveness. legislation with EU legislation via trade relations.

Taking into account the gravitation factor, under the trade agreement with China, Poti FIZ DCFTA enables Georgia to gradually receive will potentially produce goods for export to EU and CIS member countries with which Georthree (of four) freedoms of the EU market: free gia has signed free trade agreements.

EU participants may have different strategy, because Poti FIZ directly borders the European transportation of goods, services and capital. The market. The EU may use this zone, as part of DCFTA, not only to export its products to China, fourth freedom allows Georgian citizens to travel but also to export goods to its own market. Unlike for China, the geographical proximity of the freely, thanks to visa regime liberalization. Under EU and relative low price of production, resources and workforce in Georgian will stimulate the the DCFTA regime, Georgia-produced goods and implementation of this strategy. Poti FIZ may raise interest in other countries (like Iran, Azerbaijan, services that satisfy certain conditions gain acArmenia, Turkey and the USA) which do not have comparable agreements with the EU and China, but want to participate in these markets. cess to the world’s major market, which unites 28 European and Chinese investors are already familiar with Poti, as it is an important part on the New Silk countries. The free flow of goods and services will Road. Therefore, it is absolutely logical to shape a logistics hub in Poti FIZ. improve Georgia’s export potential.

Existing Challenges The Georgia-China agreement is of crucial imporFor successful fulfillment of this plan, the FIZ requires institutional and legal support, infrastructural plattance to the Georgian economy, as about 94% of forms, establishment of international connections and modern strategic systems for the zone’s management.

Focusing only on legal challenges: Georgian products are exempted from customs In the Georgian law on Free Economic Zones, it is necessary to specify that FIZ is arranged for a certain period, taxes in China. Exempt products include wine, which must be at least five years. Investors should be sure that no changes are expected and the government will not hazelnuts, honey, mineral water, beer, soft drinks, nationalize the zone to serve internal or foreign fiscal liabilities. Moreover, a paragraph should be added to Article 9 of tea, fish and other marine products, cereals and this law covering exemption of excise products from the excise tax when delivering product from the territory of Georgia medications, cables, washing machines, fertilinto the zone. This norm is practiced in most free industrial zones around the world.

Paragraph 4 in Article 7 of the above-mentioned law should also be revised to allow the use of buildings in the FIZ for resiizers and locomotives. The Georgia-China free dential purposes. In successful zones, like Jebel Ali in the United Arab Emirates, the investor is able to choose from one of about trade agreement is also a significant stimulus for 9,000 hotel suites operating in the zone. A similar practice occurs in Chinese zones, too. Therefore, it is not expedient to ban living implementing new investment projects, developin Georgian free industrial zones. ing entrepreneurship and encouraging the export The operation of FIZ must be subjected to EU-Georgia DCFTA implementation, and legal agreements with China should be also taken of Georgian products. into account. In the near future, it is therefore necessary to establish EU standards and technical conditions in Georgian FIZs. Issues among economic agents in the zone should be resolved by international arbitration norms. Moreover, it is necessary to develop a special program for developing territories via a special investment regime and free economic zones, which will expand the functional part of the zone. Based on the international practice of complex free zones, which represent a combined model of several zones, it will be beneficial to add a service zone to the existing Poti FIZ. A service zone is a specialized region with preferential rules for various services.

The implementation of these activities will result in regions of Georgia where businessmen from Asian countries will invest capital and export Georgia-assembled products to the EU with Made in Georgia certification. Georgia will become a place for the production of cheap products in free economic zones through outsourcing.

Finally, special trade zones will ensure investment in Georgia’s strategic infrastructure sector.

2009 94%

Georgia will become a place for the production of cheap products in free economic zones through outsourcing. Finally, special trade zones will ensure investment in Georgia’s strategic infrastructure sector.

In successful zones, like Jebel Ali in the United Arab Emirates, the investor is able to choose from one of about

9,000 hotel

suites operating in the zone

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March 19, 2018 #230

interview

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“Small vessels will continue to provide flexibility and commercial opportunities for the cargo owners” - In recent years, specialists talk about the fact that Georgia, which has ambitions of energy and transit hubs in the region, loses its freight that are of vital importance for the country’s economics. The transit corridor of the country is not competitive, it loses strategic and regional function. Do you share this opinion and what do you see the reason is?

-The primary market supported by the corridor is Georgia, Azerbaijan and Armenia, and I am convinced that the strategic importance remains very high for this market. A true transit ambition includes focus on the markets east and south of the Caspian Sea and beyond. The competition for these markets is very strong because the logistic fundamentals are in the competing corridors favor (distance, border crossings, terrain, extra handling due to the Caspian Sea etc). Because of these fundamentals, the Caucasus corridor always was an alternative to the main corridors, that has to be more efficient to be competitive or benefit from short term geopolitical aspects to direct the cargo flows. I believe the stakeholders in the Caucasus corridor have opportunities to improve the efficiencies to reach international standards in handling, and hence can be more competitive to fulfill more of its strategic potential.

-Many are saying that the freight rates in the port of Poti are one of the highest in the world and it’s one of the reasons for the reduction of cargo turnover. Do you agree with this and why it is not possible to implement flexible tariff policy in Georgia?

-The cost competitiveness of the corridor is determined by the total cost and transit time – on land, in the ports and on the sea, combined. It is worth noticing that the port handling cost and sea freight are just in most cases are just a minor contributor to the overall cost picture, and as such the allegation is unfounded. The Caucasus corridor is complex with multiple borders and extra handling for cargo from the eastern side of the Caspian Sea. I am convinced that the primary opportunity to improve the competitiveness of the corridor is to be found in the cooperation between the many stakeholders in the logistic chain.

-Another reason for the reduction of freight turnover is insufficient transport infrastructure, lack of specialized wagons and ferries on black and Caspian seas, weak bandwidth of corridor, also artificial barriers and delays in cargo. How reasonable are these reasons?

-We are also from time to time confronted with comments referring to crossing on the Caspian Sea as well as lack of certain rolling material etc, even at today’s volumes levels. However, in APM Terminals Poti, we are focusing on improving elements on which we have control or influence, such as reducing port closure and improve efficiencies in the port operation.

This very often depends on cooperation with many stakeholders, who preferably should share our ambition to operate at international standards, in order to be successful.

-As they say, the Port of Anaklia is being built to receive big ships. I won-

der if there is a large volume of ships in the Poti Port and in your opinion, will it be capable Anaklia deep-water port?

-The market location and size defines what large vessels means for a given market – so it is unlikely that truly large container vessels will call in the Eastern Black Sea in years to come, and smaller vessels will provide more flexibility and commercial opportunities for the cargo owners.

-You mentioned in one of your interviews that the market volume is 400 thousand container annually and Anaklia port is targeted at 2 million container, deep water port construction is announced in Poti too. Based on what do you think the market will increase at least five times more?

-I don’t think anybody within the industry believe in such growth.

-In closing, will Poti’s deep-water port be the rival of Anaklia port?

-Poti Sea Port has for 160 years been the main entrance into the Caucasus corridor, and from point of economy it is most beneficial and likely that it will remain to be the case.

Klaus Holm Laursen Managing Director, APM Terminals Poti

About Poti Sea Port Poti Sea Port is the largest port in Georgia, a multi-purpose facility with 15 berths for cargo and RoRo service, with total quay length of 2,900 meters and more than 20 quay cranes. APM Terminals assumed a controlling interest in Seaport Poti in 2011, and to date has invested over USD 80 million in refurbishing and improving the port’s infrastructure and equipment. APM Terminals Poti handled 319,000 TEUs in 2017.

PR Person

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March 19, 2018 #230

‘’Marketing and Public Relations is an art for me’’ - Why did you decide to enter this field, and what kind of opportunities does this profession give you?

I’ve always realized I must choose a profession based on what activities I enjoy. Marketing and Public Relations is an art for me, diverse and infinite, and thus very interesting. It gives me a chance to bring my personal and professional interests together. I love communicating with people, the process of creation and implementation. This is something I do with joy.

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

I think it’s important to speak with ease to hold a successful communication with any person or group of people. Public Relations is bilateral purposeful communication between an organization and its target audience to meet one another’s interests.

If your messages are clear and simple, the aim can be achieved more easily.

- Three tips you would give to someone who wants to work in this field.

My advice would be: be free, think out of box. I think that’s how healthy ideas are born that are spread all over the world. Communicate with free, creative and limitless people: it played a huge role in my personal development.

Be positive – it’s crucial to have the skill of seeing positive points in a negative topic. Think positive, this is a weapon that can help reach the audience.

Interview with Head of Marketing and Public Relations department of Rustavi Metallurgical Plant, Tamar Dighmelashvili.

Think like a child – as if there are no limits, and see beyond the task in a different way. Never think as an adult, and if someone shows you a painting, never see a hat; be able to talk about stars and forests. Meet every difficulty with a child’s enthusiasm and agility.

- What do you wish you knew before you started your career in PR? I wish I was more multilateral in terms of general education, and more informed on various topics.

- Describe a typical work week.

None of my work weeks are typical, usually they are all different from one another. New projects, new people, new challenges.

- What is the best way of finding relevant contacts and sources?

Along with digital technology development, it gets easier to find relevant contacts and sources. If you have a skill at easily directing relationships, your acquaintances will expand daily.

Of course there are popular ways like official meetings, attending and participating in events, exhibitions, conferences, but it’s important to hold harmonious relationships with them.

- How do you prioritize and start your work day?

- My work day starts bright and early, mostly with music. I always look through news of my subscribed channels and social networks, then

I check my to-do list and add some more tasks, of course all of these with coffee.

- What are the skills a Public Relations Specialist need?

- We partially discussed a PR Manager’s skills, if we want to review it in more details, I would add creativity, logical mind, agility, adapting to any environment easily, analytical thinking and sense of humor, which I think is the most important aspect in our field, as well as in general for a human being.

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

- A sense of responsibility, professionalism, critical thinking, healthy communication skills.

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

- I would say, the latest trend is content marketing, which is getting more and more efficient. This was caused by a large number of communication channels with customers, and consequently, it got harder to influence people by standard advertisements.

Also, artificial intelligence development will be a revolution for the marketing and public relations field, as the internet changed our lives a few years ago.

Although artificial intelligence can’t replace a human, it will enable us to give our routine work to them and allow people to spend more time on generating ideas.

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March 19, 2018 #230

We May Have Absolute Chaos after April 10

ninna gomarteli

vs CT Park

tbilisi City Hall Starting April 10, 2018, the Tbilisi Transport Company will execute regulations of the parking system in constant regime. Parking fees shall be paid to the City Park account up to April 10, 2018. The payments will reflected on the account of Tbilisi Transport Company starting April 10 and citizens will not have to pay parking fees repeatedly.

5

“City Park is considering all legal options and will resort to all necessary mechanisms of the Georgian and international court systems. The company owners will also spread this information in Israeli and international business communities.

This fact will have a negative impact on Georgia’s investment climate, and apparently, the ruling bureaucrats do not worry about this, as they follow their own private interest,” the City Park statement reads.

Tbilisi City Hall has made the decision to terminate its agreement with City Park. The agreement will take effect on April 10. Several days ago, Tbilisi Mayor Kakha Kaladze noted: “Tbilisi City Hall has made a decision to terminate the agreement with the City Park company, and the decision will come into force on April 10, 2018.”

“The company has showed irresponsibility and misused authority and that’s why we have made this decision,” Kakha Kaladze said.

The Tbilisi Transport Company will replace City Park to execute necessary functions until a new system can be shaped, Kaladze said. Tbilisi City Hall also explained that the agreement termination will not change parking fees or the penalty sanctions amounts.

Consequently, the parking fee will be paid in the same manner and amount.

“Starting April 10, 2018, the Tbilisi Transport Company will execute regulations of the parking system in constant regime. Parking fees shall be paid to the City Park account up to April 10, 2018. The payments will reflected on the account of Tbilisi Transport Company starting April 10 and citizens will not have to pay parking fees repeatedly.

Starting April 10, 2018, parking fees will be paid to the account indicated by the Tbilisi Transport Company and citizens will receive information about this in advance. Up to April 10, 2018, City Park will impose fines for violations and these fines shall be paid to the account indicated on the fine papers. Starting April 10, lawbreaking citizens will be fined by the Tbilisi Transport Company. Fines imposed before April 10 shall be appealed through City Park, while the process will move to the Tbilisi Transport Company starting April 10. If lawbreakers do not pay their fines, according to the current practice, the fine will rise to 150 GEL from 10 GEL. The lawbreaking vehicles will be evacuated to existing locations up to April 10, but starting April 10, violating vehicles will be taken to the location preliminarily announced by the Tbilisi Transport Company,” the Tbilisi City Hall statement reads.

As for City Park, the company asserts that the Tbilisi City Hall has made an illegal and ungrounded decision, and the company plans to appeal it. According to company management, this decision is an example of how Georgian authorities treat foreign investors.

“The statement released by Tbilisi Mayor Kakha Kaladze yesterday on unilateral termination of the agreement with LLC City Park is an illegal and politically motivated decision, and the best sample how the Georgian Authorities treat foreign investors. The whole state office, including various branches of the Government, have been pushed by specific forces and this is a coordinated decision for the illegal expulsion of City Park from Georgia. The Authorities have acted dishonestly, ignored communication with investors and the two lawsuits underway, in which LLC City Part argues against absurd accusations of law violations. The Authorities have tried to organize an illusion of legal proceedings, when a final outcome (illegal termination of agreement on behalf of specific groups, ignoring law and court) was determined preliminarily.”

“City Park is considering all legal options and will resort to all necessary mechanisms of the Georgian and international court systems. The company owners will also spread this information in Israeli and international business communities. This fact will have a negative impact on Georgia’s investment climate, and apparently, the ruling bureaucrats do not worry about this, as they follow their own private interest,” the City Park statement reads.

As to how many people City Park employs and what will happen to them, City Park explains that the company employs about 200 people. “As to employment issues, we have no information about this,” City Park representatives said. Tbilisi Vice Mayor Irakli Khmaladze does not rule out that a portion of the City Park personnel may be employed by the Tbilisi Transport Company. If there is a need for strengthened resources, experienced people may assist the operation of the Tbilisi Transport Company.

“At this stage, we cannot specify the situation in relation to the employees. We have to assume functions. We have certain resources. We have our own employees and controllers. If necessary, resources may be expanded. Naturally, experienced people may continue operation at Tbilisi Transport Company. One thing is clear – there is high public interest in relation to parking regulations, our decision is right, just and oriented on civil rights.

Therefore, we will take all steps to alleviate and prevent negative outcomes,” Khmaladze said.

Caucasus Business Week (CBW) has interviewed officials about their appraisal of this Tbilisi City Hall decision and what outcomes they expect.

Vaso Urushadze, the executive director for Eco Transport Center, noted that it would be better if Tbilisi City Hall had introduced an action plan and strategy, and not only this agreement termination. “How should the balance be restored between parking locations and number of vehicles? Today we have the following balance: 15 vehicles for each parking place.

What kind of payment system will we have? These issues were to be arranged in advance,” Urushadze said.

Itzik Moshe, president of Israeli-Georgian Chamber of Business, says that the current situation around City Park will bring unfavorable outcomes for both Georgia and Israel.

“City Park did not enter Georgia through the Israeli Business Chamber. Regretfully, we do not know details of the contract agreement.

Naturally, unpleasant effects will emerge in Israel and Georgia in the transient period until casting light on this issue. We have 20 years of experience in similar issues. In about 90% of the cases we have uncertainty because of different business cultures. Frequently, the contractual parties perceive the contract details differently,” Itzik Moshe said.

The President of Israel-Georgia Chamber of Business expressed willingness to engage in this process, if asked. “I would like to note that Tbilisi City Hall has always backed Israeli companies,” Itzik Moshe added.

Former Tbilisi Mayor David Narmania has also commented on the agreement termination with City Park. City Park has made a lot of serious mistakes over the years, Narmania said. “I welcome the termination of the agreement with this company. It is important that the procedures after the agreement termination be less painful and society receives better conditions. We should not forget who originated this criminal agreement, and they should be called to account,” Narmania noted.

Another former Tbilisi mayor, Gigi Ugulava, has also appraised the agreement termination with City Park.

“Now the main thing is that as soon as possible I will ask our faction at the City Council to summon Tbilisi Transport Company officials and request them to introduce an action plan as to what Tbilisi Transport Company will do after April 10; I think the current administration of the City Hall is unprepared for this situation and we may have chaos in the capital city after April 10. I understand very well that nobody likes parking inspectors. But this is a necessary evil that the city must continue to keep basic order. Even the worst order is better than chaos, which we have left in the 1990s.

Today we may be in a worse situation than in the 1990s, because the quantity of vehicles has increased considerably and now it is a key issue that Tbilisi City Hall introduce a new action plan and address which resources they have and the differences between City Park and the new system after April 10,” Gigi Ugulava said.

City Park and Tbilisi City Hall signed an agreement in 2007. The agreement’s validity period was set to expire on December 31, 2024. In the case of agreement termination, City Hall must pay 25 million GEL to the company.

Tbilisi Vice Mayor Irakli Khmaladze says that City Park may be called to account. The guaranteed amount is about 0.5 million GEL, he said. “However, additional legal procedures are required and we will continue negotiations in a bilateral regime. The transition process should start within the next month, because parking operation should be continued without disruptions,” Khmaladze noted.

City Park used to pay only 40% of revenues to the municipal budget, and 60% was absorbed by the company, Khmaladze said.

“As part of this agreement, incomes were generated in the Tbilisi budget from various sources. All incomes had various methods of distribution. About 40% of the total income was transferred to the municipal budget and 60% was transferred to the company account,” Khmaladze said.

business

10 Microsoft Digital Evolution Forum Takes Place in Georgia Biggest event in sphere of business Digital Transformation, organized by Microsoft in Georgia takes place in Tbilisi tomorrow, March 13. This day we will bring together more than 100 Managers and Top managers in order to connect with technical experts and Microsoft Partners, who will demonstrate successful IT solutions across Finance, Retail industries and Government.

New technologies completely replace the traditional process, prompting business executives and business leaders to change and improve their routine work practices. Digital transformation is the only tool for survival in conditions of intense competition. There will be someone who will offer the customer the best experience and a bargain price.

Data, analysis, monitoring, face recognition, social networking management solutions, virtual shelf and chatboots. About all these innovations you will hear at Business Solutions track in frames of Digital Transformation Forum.

Georgian Capital to Allocate 200 USD Mln in Wind Power Projects “Georgian Capital” will invest 200 million dollars in wind projects – Irakli Gilauri, Director General of Investment Company “Georgian Capital” said.

According to him, the energy sector deals with the construction of 250 MW power plants and wind power stations.

“At this stage we have a 9-month surveillance of wind projects, we should sum up 12-month observation to carry out the project. We will know specific projects within 2 months. We carry put observation on 6 different sites, 3 of them seem very promising,”- Irakli Gilauri.

Aqua Energy Georgia to Build Hydro Power Plant at Tbilisi Sea A hydro power plant (HPP) will be built at Tbilisi Sea. The project has been put forward by LLC Aqua Energy Georgia.

The company has already applied to Tbilisi City Hall for a building permit, but the city hall has readdressed the company to Ministry of Economy, because the design building-construction component belongs to the fifth category due to its characteristics and functions.

In this case it is upon Ministry of Economy to process all three stages of a building permit. The project calls for building a 600 kw/hour HPP at north-east beach of Tbilisi Sea, near Varketili.

The HPP will be built and put into exploitation in 10 months after the approval of the project.

March 19, 2018 #230

Variety Reviews Documentary on Georgian Wine A leading American film and entertainment trade magazine Variety has reviewed the new documentary on Georgian wine “Our Blood Is Wine”, directed by Emily Railsback and featuring a Chicago sommelier Jeremy Quinn, who visited Georgia. Railsback and Quinn tour various regions, sampling varietals while getting up close and personal with Georgian winemakers.

Variety’s author Scott Tobias writes: “Documentary begins with what Quinn jokes is a child’s question: Where does wine come from? The answer takes him and Railsback to Georgia, where the winemaking process is so old that an archeologist points to Neolithic ceramics from 6,000 B.C… With iPhone in hand, Railsback and Jeremy Quinn, a Chicago sommelier, explore the 8,000year-old roots of Georgian winemaking and celebrate its resilience under a host of outside threats”.

Gurieli from Country of Rustaveli – Collection Tea at Frankfurt Book Fair 2018 Art Palace and Georgian tea brand ”Gurieli” joint project- ”Gurieli from the Country of Rustaveli” Georgian and English versions were created to represent Georgia, as a host country that has tea export potential at Frankfurt Book Fair 2018. German versions will be added directly for the festival.

Mikheil Chkuaseli, General Director of ”Geoplant”: ”Gurieli from the country of Rustaveli” is the best example how product can combine cultural heritage and business potential, high enterprise culture that Georgia can have”.

Each type of Georgian version of tea package is made from the works of famous painters such as Peter Otskheli, Pirosmani, Mikhai Zichi, Giorgi Eristavi, Mikheil Chikovani, Grigori Gagarin, Boris Johansen.

One of the species was signed by Shota Rustaveli painted by famous filmmaker Mikheil Chiaureli.

The famous fresco of Jvari Monastery is used on the packaging, which was taken

by Giorgi Kalandia, Director of the Palace of Art. As for English version, it has designed by Mikhai Zichi reproductions of ”Vepkhistkaosani” (by Shota Rustaveli) illustrations.

Collection edition includes 9 types of teas, among them are famous traditional black and green tea, Earl Grey, blooming jasmine, Alpine berries and wild peppers, as well as three new species: chamomile chamber, snow rose and Meskhetian nettle.

Product will be available at ”Agrohub”, ”Artpalace” and ”Mkholod Kartuli. English, Georgian and German versions will be sold in Germany as well.

Startuperi Launches Startup-course for Students TBC Bank program ”Startuperi” creates specialized course for students, giving young people opportunity to receive theoretical and practical foundation knowledge to launch businesses.

The first startup course was introduced as a result of cooperation with the University of Business and Technology.

The pilot course, which will start in March and last for 3 months, will be available for students from the University of Technology and Technology (BTU) at the first stage.

The course will be introduced in other universities throughout Georgia in the future.

Within the framework of the program, students will attend sessions of various topics that combine the full phase of the startup stage – from the birth of the idea to the successful business. During the course, students will have the opportunity to meet success-

ful people, get recommendations and attend inspirational conversations around the startup topic. At the end of the course, students will prepare presentations about startup ideas, and the winner team will go to Startup Safari, on one of the international startup event. The course aims to establish startup culture among students, give them inspiration to make their ideas come true.

Startup course will be led by professionals from different fields, including: Andro Dgebuadze – Asia Development Bank Consultant; Levan Kiladze – Lemondu and TKT. ge founder; Nino Egadze – TBC Bank Head of Marketing, Pavle Gabrichidze – Head of Social Media and Advertising department of Livingstone.

“Startuper” is a program of TBC Bank aimed at establishing more successful startups in the country.

wine

March 19, 2018 #230

Success of Winery Khareba and Future Development Winery Khareba has already obtained recognition at international exhibitions in 2018. Since its foundation, the company has been making wines using local grape varieties. The winemaking company produces more than 40 wine varieties, and has won more than 200 awards at prestigious international competitions.

The 2018 awards include: at Prodexpo 2018, the Prodexpo Star for Khareba aged red 2013; a Golden Medal for Kvevri Green, a Golden Medal for Saperavi Premium, a Golden Medal for Chacha and a Silver Medal for Kidzmarauli.

From the “MUNDUS VINI 2018” Awards: Best of show Georgia for Saperavi Premium 2013; a Silver Medal for Krakhuna 2017 and a Silver Medal for Green 2017.

For the first time in the history of Georgian wine, an international exhibition hosted a presentation

by Winery Khareba. The presentation guests were able to taste the company’s award-winning wines.

The winemaking company has also unveiled its future plans. Winery Khareba has unveiled a new store at the Hotel Porta Caucasia, which is located in Kazbegi.

The winery also plans to develop a tourism area at its Terjola winery. Today, the company operates eight wine stores in Georgia: Tbilisi – Rustaveli Ave. N50/1; Gorgasali Str.N1 Mtskheta – Arsukidze Str. Batumi – K. Gamsakhurdia Str.N14 Poti – King Parnavaz Str.N1 Kvareli – Farming Settlement, Gvirabi Terjola – Tbilisi-Senaki-Leselidze 204.8th kilometer

Winery Khareba follows ancient winemaking traditions and focuses on maintaining unique vine varieties and producing unique wines via both ancient methods and modern technology.

11 The winemaking company produces more than 40 wine varieties, and has won more than 200 awards at prestigious international competitions.

Kazbegi – Stepantsminda, Tergdaleulebi Str.N1 Each year, the company adds new wine varieties to its selection. The company’s expansion includes plans to add several wine varieties and increase its store numbers in Georgia and abroad.

Exports by Winery Khareba rose by 58%, and Azerbaijan and Italy have emerged as new export markets for the winery.

The Gvirabi tourism complex in Kvareli is constantly developing, the company management said, and added that the number of tourists grows every year. Tourist inflow

rose by 67% in 2017.

Winery Khareba follows ancient winemaking traditions and focuses on maintaining unique vine varieties and producing unique wines via both ancient methods and modern technology. As a result, the company produces premium class wines.

Accounting for developments in the market and modern technology, Winery Khareba has reorganized its existing plant and considerably improved the plant’s technical equipment. The company owns about 2,000 hectares land planted with unique Georgian and European vine varieties for production of top quality wines.

The company wine cellars are located in Imereti and Kakheti, which are equipped with modern Italian machinery and stainless steel reservoirs.

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publicity

March 19, 2018 #230

March 19, 2018 #230

real estate

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Apartments in Khrushchev Projects Hold 4% in Tbilisi • • • • • • •

Construction Period: 1960s of the 20th century Floating Floors: 4/5 Ceiling Height : 2.5 -2.65 m Construction Material: Concrete Panel / Brick Construction method: Remnants Number of Apartments on Each Floor: 3 Elevator: No

I

n 1947-51, the urbanization of the former Soviet Union increased the demand for building compact residential buildings in a short period of time.

In 1950, at the congress of architects in Moscow, chaired by the head of the Moscow City Party Committee Khrushchev, it was decided to open the concrete tiles manufacturing factories, which would continuously supply the ready-made concrete panels to the construction process.

After the Second World War Georgian cities were notably displaced. The construction of the factories was aimed at bringing the population from the village to the city thus increasing the employment rate of the country.

From 1956 onwards, the first projects appeared in the name of Khrushchev.

New buildings were built with the Method of Remnants. Ready-made materials were shipped to Georgia in order to be applied to the construction process of new buildings.

New buildings were named after Khrushchev though the general model was aimed at standard braking, freight traffic, greenery, sports grounds, flat clear areas for children, schools, kindergartens, medical facilities, which served as a beneficial decision for both the residents and the city planning as well. The 4 and 5-storey projects that were built in the quarters were similar to the model of houses in Europe.

The absence of state quality regulations of that time made the process quick and economical. The construction cycle continued throughout the former Soviet Union until the end of the 80s.

The Khrushchev’s blocks basically consisted of 5 floors with 3 apartments in each entrance. The project did not envisage the installation of the eleva-

tor in the buildings while the rooms were smaller and the maximum ceiling height was 2.6 meters.

The facade decoration did not involve plaster and other decorative elements.

The easy-to-break Khrushchev buildings were built to temporarily resolve the housing problem and their expiration period was meant for 50 years.

The late study found that prolongation of the buildings could be extended up to 150 years, provided timely reinforcement works were carried out.

Gradually the population started to build their own infrastructure settings with buildings such as additional floors and rooms, which led to the disruption of the building blocks and subsequently their outrage. These actions were not restricted by the law.

Today, there are frequent cases where the construction metal belts are fitted to the outside of the buildings. Most of such reinforcement constructions were undertaken by delay, which did not provide for the life cycle and part of the population was forced to leave their houses.

Although Khrushchev’s residential apartments have expired, the VazhaPshavela quarters of Tbilisi are found to have preserved the project buildings in a solid form.

There is 508 Khrushchev project buildings in Tbilisi. These blocks are

scattered throughout the city, the major part of which is found on VazhaPshavela Quarters, Dighomi and Varketili massifs.

The standard volumetric area of a Khrushchev project building is approximately 801.85m2 with total of 2.500m2 assigned for the residential area. The entire residential area of the Khrushchev project buildings in Tbilisi is approximately 1.066.800m2.

From 1940 to 1990, the residential area of the Khrushchev project apartments amounted to 8% of the total living space in Tbilisi. As of today this figure is reduced to 4%.

Within the works embarked, the Colliers International Georgia has appraised the total of 1022 Khrushchev project apartments in Georgia with 65% located in Tbilisi. The largest share of Tbilisi-based apartments is 40.4% in Saburtalo followed by Didube with 16.2%, and Varketili with 10.1%.

The price per square meter of the Khrushchev project apartments varies according to the district the facility is located in. For example: the price of a square meter of a residential building in Saburtalo is 688 USD, in Didube - 654 USD, and in Varketili - 474 USD. Varketili is followed with Temka, Samgori and Gldanula settlement, where the price of the Khrushchev project apartments is 454 USD.

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publicity

March 19, 2018 #230

March 19, 2018 #230

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 Pixel Center, 34, Ilia Chavchavadze Ave. 3rd floor Tel: +995 32 227 62 00 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 Oniashvili str. 24, Tbilisi Tel.: +995322 920398; Fax: +995322 920397 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 Embassy of The Republic of Korea 12, Titsian Tabidze Str. Tbilisi 0179, Geogia Tel: (995 32) 297 03 18; 297 03 20; Fax: (995 32) 242 74 40; Email: georgia@mofa.go.kr

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 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

Limelight Travel info Center Address: 13 Sioni Street, 0105, Tbilisi (at the end of Shardeni Street) Phone: +995 322 999 123 E-mail: info@limelight.ge Web-page: www.limelight.ge Facebook page: www.facebook.com/limelight.ge

Theatres A. GRIBOEDOV RUSSIAN STATE DRAMA THEATRE Tbilisi. 2 Rustaveli Ave. Tel: 93 58 11, Fax: 93 31 15 INDEPENDENT THEATRE Tbilisi. 2 Rustaveli Ave. Tel: 98 58 21, Fax: 93 31 15 K. MARJANISHVILI STATE ACADEMIC THEATRE Tbilisi. 8 Marjanishvili St. Tel: 95 35 82, Fax: 95 40 01 M. TUMANISHVILI CINEMA ACTORS THEATRE Tbilisi. 164 Agmashenebeli Ave. Tel: 35 31 52, 34 28 99, Fax: 35 01 94 METEKHI – THEATRE OF GEORGIAN NATIONAL BALLET Tbilisi. 69 Balanchivadze St. Tel: (99) 20 22 10 MUSIC AND DRAMATIC STATE THEATRE Tbilisi. 182 Agmashenebeli Ave. Tel: 34 80 90, Fax: 34 80 90 NABADI - GEORGIAN FOLKLORE THEATRE Tbilisi. 19 Rustaveli Ave. Tel: 98 99 91 S. AKHMETELI STATE DRAMATIC THEATRE Tbilisi. 8 I. Vekua St. Tel: 62 59 73

The Best Georgian Honey of chestnuts,acacia and lime flowers from the very hart of Adjara Matchakhela gorge in the network of Goodwill, Nikora and smart

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March 19, 2018 #230