Caucasus Business Week #241

June 11, 2018 - www.cbw.ge

#241

Suspended Construction Projects and Annulled Licenses

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Whether Tbilisi Mayor’s Decision will Finish the Khrushchovkas Era Tbilisi Mayor Kakha Kaladze has announced plans for replacing the so-called Khrushchovka residential buildings. Kaladze made the statement at capital city Government meeting several days ago.

Namely, the current plan calls for full replacement of failing buildings in Quarters 6 and 8 of Verketili Third Massif, as well as for moving residents of less damaged buildings in Verketili Massif and Upper Plateau.

The City Hall will announce interest expression for developing a residential complex on the 30 205 square meter site in Verketili Third Massif, Kaladze said.

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Visit and learn what the Wine Yard N1 offers you in Kakheti Winemaking, culinary, local folklore, family farming - If you are looking for a similar location, you should visit Wine Yard N1. It is a touristic place in Kakheti, which combines family type Marani (Georgian wine cellar) of three generations, house and yard.

The main intention of the touristic object, which is based on the family concept is to represent Georgian, Kakhetian families and to popularize the local lifestyle.

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Fuel Prices Keep Rising

Current developments on Georgian oil products market suggest that fuel may become luxury product soon. Last week fuel prices rose at all branded stations. Namely, prices increased by 2-9 Tetri.

As of June 6, in SOCAR network the price of one liter of Super petrol was 2.58 GEL, up from 2.55 GEL of May 22; the price of Premium rose to 2.45 GEL from 2.42 GEL. The price of Regular increased by 3 Tetri to 2.33 GEL. Prices of Euro Diesel and Diesel rose by 3-3 Tetri each to 2.45 GEL and 2.33 GEL respectively.

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Losses of Tbilisi City Hall from Tub Train Drivers’ Strike As a result of two-day strike of tube train drivers, Tbilisi City Hall losses made up 44 000 GEL, Vice Mayor of Tbilisi Irakli Khmaladze said.

The mentioned figure does not include losses of free passage at municipal transport for two days. Total losses may hit 100 000 GEL, Khmaladze added.

Visitors to Enjoy Renewed Infrastructure of Batumi Boulevard This Year This year, Batumi Boulevard will meet summer season with renewed infrastructure. According to the 2018 Program Budget, 6 949 297 GEL is provided for the development and maintance of the Batumi Boulevard Infrastructure.

Anaklia Echowaves – Check in Georgia Hosts New Festival in Anaklia

Alexander Shwab: Georgia is One of the Leading Countries with Prospect of Hydro Energy

Check in Georgia will host a new festival – ANAKLIA ECHOWAVES on August 23-26 in Anaklia. The aim of the festival is to contribute to the cultural development of the region and create attractive tourism projects.

The representatives of company Andritz head office together with the local branch hold ”User Day” for potential and existing Georgian customers, where experts from 10 countries and 100 guests take part in.

The First Georgian Writer at the Chinese forum ‘StoryDrive’

Georgia to Broaden Internet Market

StoryDrive is one of the biggest literary events held in China, and took place from 28 May to 1 June. This year for the first time ever, China’s literary world welcomed a Georgian author to StoryDrive in Beijing, where Georgia was represented by Giorgi Kekelidze.

Non-licensed Software use Decreased by 81% in Georgia The use of unlicensed software in Georgia decreased to 81%. The Software Alliance calculates and researches it once in two years.

According to the data of 2015, the level of non-licensed software in Georgia was 84%, in the last two years this indicator was reduced by only 3%, reports Forbes.

TBC Bank has New Director of Operations Management Tornike Gogichaishvili was appointed Deputy Director General of TBC Bank and Director of Operations. Gogichaishvili replaced Vano Baliashvili, who will continue to work in TBC Bank’s in other sector after almost 20 years of work at the company.

Georgia’s internet market will be expanded in several years and it will be harmonized with European Regulations, Georgian Economy Minister Dimitri Kumsishvili told reporters after his speech at the EuroDIG 2018 Business Forum.

Six Czech companies producing medicine technique Six Czech companies producing medicine technique will visit Georgia between 18th and 21st June 2018. They will hold presentations of their products for Georgian companies and representatives of hospitals, clinics, Ministry of Health of Georgia and Ministry of Health and Social Affairs of Ajara. The presentations will take place both in Tbilisi and Batumi. The main goal is to demonstrate high quality Czech products in the field of medicine equipment to their Georgian partners. The Czech Embassy in Georgia invites everyone interested to come to the presentations.

Bank of Georgia Holdings Shares Drop -38.17% Bank of Georgia Holdings Plc (BGEO.L) have moved lower over the course of the past week revealing negative downward near-term momentum for the shares.

In taking a look at recent performance, we can see that shares have moved -38.17% over the past week, -42.74% over the past 4-weeks, -40.21% over the past half year and -45.28% over the past full year.

Rehabilitation of Houses Built by Germans in XIX Begins in Asureti Infrastructural projects are underway in the village of Asureti in Tetritskaro municipality. At this stage the first phase of rehabilitation of Shvabebis Street in Asureti is completed.

The Editorial Board Follows Press Freedom Principles Publisher: LLC Caucasian Business Week - CBW Director: Levan Beglarishvili WWW.CBW.GE Address: Aleksidze Street 1 Sales: Mob: +995 591 01 39 36 Email: caucasianbusiness@gmail.com Editor: Nutsa Galumashvili. Mobile phone: 595 380382 Copy Editor: Ellie Rambo Reporters: Nina Gomarteli; Mariam Kopaliani; Merab Janiashvili, Economic columnist: Andria Gvidiani; Technical Assistant: Giorgi Kheladze;

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Fuel Prices Keep Rising Oil Importers Benefit from Inaptness of Competition Agency Current developments on Georgian oil products market suggest that fuel may become luxury product soon. Last week fuel prices rose at all branded stations. Namely, prices increased by 2-9 Tetri. As of June 6, in SOCAR network the price of one liter of Super petrol was 2.58 GEL, up from 2.55 GEL of May 22; the price of Premium rose to 2.45 GEL from 2.42 GEL. The price of Regular increased by 3 Tetri to 2.33 GEL. Prices of Euro Diesel and Diesel rose by 3-3 Tetri each to 2.45 GEL and 2.33 GEL respectively.

After May 22 price of several categories of fuel changed at GULF stations too. Namely, price of Euro Diesel rose by 4 Tetri to 2.49 GEL. Price of diesel rose by 5 Tetri to 2.44 GEL. Prices of Super, G-Force Premium, G-Force Euro Regular and Regular have not changed. Namely, price of Super fuel is 2.55 GEL. Price of 1 liter of G-Force Premium is 2.37 GEL, G-Force Euro Regular – 2.30 GEL and Regular – 2.25 GEL. As to other filling networks, in Lukoil network price of Euro Super is 2.50 GEL, up from 2.44 GEL of May 22. Price of Premium Avangard rose by 9 Tetri to 2.33 GEL. Price of

Euro Regular rose by 6 Tetri to 2.20 GEL. Price of Euro Diesel rose to 2.30 GEL from 2.28 GEL. We have nearly the same situation in the networks of Wissol and Rompetrol.

Georgia has no oil products reserves. Consequently, fuel prices depend on international tariffs, but, surprisingly, in our country the pricing has no relation with changes in international oil prices. For example, over the past 3 weeks oil prices are declining on international markets, but in Georgia, prices are growing. In general, price of a barrel declined to 65 USD as of June 6, while its price was 150 USD in 2008 and even in 2008 fuel prices were not so expensive in Georgia.

Over the past 15 years, a lot of complains are expressed against oil products importer companies. As a rule, our society and civil sector point to violation of competition principles and existing cartel collusions on the market.

By instruction of the Georgian Prime Minister in 2015, Competition Agency explored the oil market developments in 2008-2014 and exposed companies of a number of violations and imposed total of 55 million GEL fines on them. However, in several years the companies appealed against the decision and won the process. In 2018 Competi-

tion Agency conducted a new audit on the same period and imposed only 3 million GEL fine on oil product importer companies.

According to Competition Agency, a number of accusations were removed against oil importer companies referring to frequent revisions of the legislation in 2012-2014 and a lack of facts that would prove the initial conclusion of the agency.

Anyhow, fine shrank 18 times and we have unclear situation to conclude whether the competition agency passed unqualified report in 2015, when it was chaired by Giorgi Barabadze, or in 2018, when the agency is chaired by Nodar Khaduri. The fact is that reports must not differ from each other so huge. It is unclear who is responsible on similar huge difference between two reports in the 3-year interval.

Arbitrariness reigns on Georgian oil products market. Oil product importer companies benefit from a lack of state regulations, on the one hand, but the situation may worsen on international market and fuel prices may rise. As a result, the situation in Georgia will be aggravated further and fuel prices will hike.

After an interval of several years the USA plans to introduce new

economic sanctions against Iran. US President Donald Trump unveiled these plans on May 8 and noted that US was withdrawing from Nuclear Program Agreement with Iran. US withdrawal from nuclear agreement and introduction of new economic sanctions will, first of all, affect oil prices. Economic sanctions in 2012-2015 was limiting Iran’s oil imports and making the Black Gold more expensive on global market.

After Iranian oil supply increased on global markets, fuel prices cheapened, but today, according to international analysts, Trump’s decision will first of all influence oil prices. Moreover, analysts do not rule out that the price of barrel may hit 100 USD. According to various indicators, today Iran exports 1-3 million barrels of oil a day and cessation of supply of this volume to global markets will definitely affect oil prices.

Experts forecast that oil prices will increase on international markets in the near future and this tendency will be automatically reflected on Georgian market. Oil product importers ignore state supervision services and fuel prices are expected to beat new records in Georgia.

By Merab Janiashvili

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Whether Tbilisi Mayor’s Decision will Finish the Khrushchovkas Era The winner company will implement the project under the development regulatory plan approved by Tbilisi Council on condition of transmitting certain residential spaces to the municipality, he added.

not be confined with only residential buildings. I think at this stage many aspects are unclear and this factor does not enable the private sector to be wider represented in the project”, Rostomashvili said.

“I would like to talk about one of the most important projects.

I have frequently mentioned it in my pre-election campaign.

Many people were tuned skeptically and they did not believe in feasibility of this project. I mean a replacement of the socalled Khrushchokva residential buildings. Having assumed duty and started working at the City Hall, we laumched developing this direction and implementing the project.

Previously, only M2 had expressed interest in the Khrushchovkas project and there are certain reasons for that, he said.

Our offices have worked a lot and I would like to thank you because today we have the first project – the City Hall is announcing interest expression for developing a residential complex on the 30 205 square meter site in Varketili Third Massif and we invite the private sector”, the Tbilisi Mayor said.

At the first stage, 170 families will receive new apartments.

Along with announced information, the Tbilisi Mayor urged the private sector to join the project development planning and stressed the importance of business sector’s involvement in this direction. Without private sector the Khrushchovkas issue will not be resolved in practice, he said.

What is the private sector’s position? What preferences will the Authorities offer to the private sector in exchange for engagement in the project implementation? Does the mentioned project fit the new masterplan? In general, is it real that the Khrushchovkas Era will be finished in Tbilisi?

Irakli Rostomashvili, head of Developers Association, makes focus on several important factors. Currently, about 23 000 apartments are built in Tbilisi every year and about a half part of them are located in new residential buildings (12 000 apartments).

As to the Khrushchovkas, there are 512 Khrushchovka residential buildings in Tbilisi and 30 families live in each of them. This signifies a total of 15 360 families live in the Khrushchovka apartments in Tbilisi. Therefore, Irakli Rostomashvili supposes that current parameters of Tbilisi economy should be improved to thoroughly implement the Khrushchovkas replacement project.

“If we decide to launch this project and jointly implement it, amid current economy of Tbilisi, in the next 4 years, we will have to build 60 000 apartments a year, up 4 times than the norm. The problem will remain unresolved even if the project implementation deadlines will be extended.

Conditionally, there, where new buildings will replace the Khrushchovkas, we will need more public schools more, police stations, more recreational zones and so on. Who will tackle these issues? Business Sector again? The project can-

“The only company which showed interest in the project in due time was M2. However, there are no many similar major companies on the market. M2 has other resources – much money and major commercial bank behind. At this stage, our company cannot join the project implementation process, because many aspects are unclear and I suppose a major part of the private sector companies have the same position”, Rostomashvili noted.

As to Tbilisi land use masterplan and its compliance with the Khrushchovkas project, City Institute director Mamuka Salukvadze has the following position: “In case of the Khrushchovkas, it is possible to prepare development regulation plan by order of Tbilisi City Hall. In general, our position is that the masterplan cannot thwart the project implementation. On the contrary, individual approach should be showed. We should neither remove buildings nor build new ones chaotically. In reality inventory is required, that is on special site a residential building may be dismantled and the building may be renewed in other place”, Salukvadze said.

As to the position of authors of the idea – Tbilisi City Hall.

Andria Basilaia, head of economic development service of Tbilisi City Hall, says that to raise the business sector’s interest, the city hall will transmit land plots to private sector free of charge in exchange for engagement in the project implementation process. All other variants are under discussion. As to the project implementation perspectives, Andria Basilaia assures that the Khrushchovkas Era will end, but he could not name specific deadlines.

Andria Basilaia: “we believe this project will be implemented, but it cannot be lunched and finished immediately at once. This is a long-term process. Therefore, I cannot name specific deadlines. As to the private sector’s involvement, in case of Varketili, we will transmit a site to the competition winner company free of charge. Samkharauli Foresncis Bureau has valued the mentioned site by 6.9 million GEL. In exchange the company must build adequate apartments in two years. Naturally, all Khrushchovka apartments cannot be replaced in the same principle. We consider alternative variants too. We plan to apply similar mechanisms at other locations too, including on Saburtalo and Samgori in the near future, where there are unfit buildings”.

Besides free transmission of lands to the private sector, Tbilisi City Hall has not prepared any other alternative offer. The head of the municipal economic development service noted that Varketili project results will outline future perspectives for other similar projects.

“For example, in east part of Berlin Khrushchovkas were not removed, but renewed and there are many proposals for applying the mentioned method in Tbilisi too, but here these buildings are absolutely amortized and they cannot be repaired. Therefore, we have limited options in the decision-making process and we have to find new mechanisms.

We expect the Varketili pilot project to outline certain results. Naturally, we cannot transmit lands in exchange for all Khrushchovkas. It is noteworthy that in this case exception will be made for K2 coefficient too. The mentioned coefficient is tightened and stricter process will be continued in the future too, but in case of social projects, we plan to set certain preferences to the private sector. All these efforts are to raise the business sector’s interest and we hope our efforts will bring real results”, Basilaia said.

As noted, there are 512 Khrushchovka residential buildings in Tbilisi. Part of them are located in Vazha-Pshavela quarters, Third Massif and Dighomi – 4-5 floor low-ceiling apartments that were built in Tbilisi in 1960s.

After announcement of independence almost all governments of Georgia expressed interest in replacement of the Khrushchovkas, but no real steps were taken. In 2014 Tbilisi Council signed cooperation memorandum with one of the investment holdingы in Saudi Arabia. The investor planned to build 15-floor residential buildings to replace he Khrushchovkas. The project also called for building office spaces and green zones. Initially, the project called for dismantling 800 buildings and investing 600 million USD from the USA, however, no real steps were taken.

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Suspended Construction Projects and Annulled Licenses “Building standards should be tightened. Visual standards should be also introduced.” These pre-election statements were made by the current mayor of Tbilisi. Starting in the summer of 2017, Kakha Kaladze assured Tbilisi residents that his mayorship would bring an ecologically cleaner and more advanced capital city.

Chaotic construction works would be stopped. Licenses would not be issued for construction projects on playgrounds, public spaces and parks. It is difficult to put forward arguments against similar plans for the capital’s development, but the decisions made in the first months of Kakha Kaladze’s mayorship have raised questions and discontent in the development sector.

Additionally, people have complained about encroachments on property rights after the introduction of stricter regulations.

Enforced and Planned Regulations One of the most sensitive amendments for the development sector came into force in late March, 2018. Under the amendment, penalty sanctions on violations of construction safety norms, illegal construction works and violation of project parameters considerably increased.

According to the previous law, a verbal warning was given after the first violation. The second violation was punished with a 3,000 GEL fine, and this amount grew for each new violation. Now, under this amendment, the first violation will receive a 30,000 GEL fine. If investors continue construction works despite a suspension decision, they will be fined 50,000 GEL. Many other regulations are expected to be enforced in the development sector.

According to planned regulations, those wishing to obtain a building license should prepare a corresponding dendrological plan, which must be approved by city hall. Municipal services for transport and ecology are now obliged to participate in the processing of issuing building licenses.

Kaladze has also instructed heads

of municipal services to prepare an amendment imposing a 700 GEL fine on construction companies for cutting down trees. The Parliament of Georgia has already received bills calling for raised taxes on building licenses.

According to the amendments, the fees set by Tbilisi Council will be calculated not due to the project-determined space, but due to the K-2 (intensity of construction works) coefficient space.

Today the value of construction projects on a square meter is 1 GEL despite the number of floors, but according to the proposed bill, the tax amount will be calculated based on the number of floors. For example, if a 10-floor building covers 800 square meters of space, the company will currently pay 800 GEL. After these amendments, the company will pay 8,000 GEL. Additionally, the top margin price per square meter will be 4 GEL, and companies will have to pay 32,000 GEL for the same building.

Temur Bolotashvili, head of the municipal service of architecture, says that today’s system is unfair and the current tax amount is inadequately low.

“For example, individual owners constructing a one-floor building and a company building a multi-storied structure on an identical space pay the same amount of tax. Therefore, the top margin for the fee will be introduced, and each municipality will have to determine a specific tax. The fee must be commensurate with administrative expenses, as the whole developed world follows this principle,” Temur Bolotashvili said.

Suspended Projects People and companies who have planned construction projects near Lisi Lake remain in an absolutely unclear situation. In late March, the Tbilisi mayor decided to temporary suspend construction works in this zone. In the past four months, City Hall also rejected about 600 applications for licenses.

City Hall also rejected construction project plans in Dighomi Chalebi.

Statistics: According to the Tbilisi City

Hall architecture service, starting November 1, 2017, through February 28, 2018, a total of 1,408 construction licenses were issued in Tbilisi. For comparison: a total of 1,626 licenses were issued in the same period during the previous year.

“This creates an unstable environment,” said representatives of development companies.

Some developers assert that the inflexible and stubborn position of the new mayor does not enable them to plan business activities.

Redco Project Manager Malkhaz Kunelauri said the regulations are expected to increase apartment prices. Developers are trying to maintain prices, but if this process continues, they will not be able to maintain current tariffs, he said.

“Each new similar amendment is one additional strike to the whole construction business plan, which has become more expensive in various ways – including currency exchange, taxation on advanced payments, signing contracts in GEL, increased fines and new regulations on green spaces.

If this tendency is continued, we will reach the moment when we will not able to maintain prices. At this stage, we are waiting for the final rules of the game. It is difficult when you make a business plan and unforeseen regulations appear during the process.

This situation creates an unstable environment. Seemingly, municipality officials are not determined ultimately which way to follow. Building licenses are rejected, the fate of general plan is unclear. All details are unclear. In this situation it is difficult to draw up a business plan.”

“I do not object to environmental protection measures and regulations, but the situation should be improved in both ways – by the population and development companies,” Kunelauri said.

“This is the most primitive method,” said lawyers, about the increased fines.

Aleksandre Kamushadze, director of the GLCC law company, appraised development sector tendencies in

Tbilisi. His company provides legal services to more than 35% of the real estate and development businesses in Georgia.

Messages about plans for tightening regulations already create problems, as development companies have suspended a lot of new construction projects because of their unclear futures, Kamushadze said.

“During this period the authorities have offered no initiative that would encourage the development sector in any form. They create the impression that the development sector is evil and all efforts should be exerted to fight against it, as fast as possible and as efficiently as possible. Fivefold growth in fines and fees is an evident populist decision, as well as restricting development companies from obtaining licenses and introducing technical requirements and standards which work only in certain advanced countries in Europe. These tendencies are hazardous and will bring nothing good to the country. Along with tightened regulations, it is also necessary to introduce counterweight preferences to maintain the balance and life to the development sector,” Kamushadze said.

The imposition of fines with the aim to change habits is the most primitive and superficial method, and consequently, it is the least efficient method. When developers are ready to promote their projects amid new regulations, the authorities continue to introduce new regulations. It is difficult to say whether these regulations will make Tbilisi a lively and greener city. Kakha Kaladze will have to answer for this question after the completion of his term.

By Maia Chanturia

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Koba Alkhazashvili: ‘’PR is a profession that helps you grow every day’’ Interview with Koba Alkhazashvili, Head of Public Relations Department of the National Statistics Office of Georgia Why did you decide to enter this field, and what kind of opportunities does this profession give you?

All my childhood I wanted to appear i the box called TV. This dream came true when I became a journalist of ‘’Moambe’’. That’s where it started my first interaction with different circles of society, and I gradually moved to Public Relations field. Pr is a profession that helps you grow every day and gives you opportunity to deepen contacts, that brings you a new job and chances.

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

First of all, it’s important to hold communication based on sincerity and reality, perceiving events adequate. It all enables you to maintain successful communication with any kind of public.

What three tips would you offer someone just starting out in PR? Of course everything is individual but I think, readiness and courage is essential in this field, in order

to receive and master novelties.

Also, you need to get as many contacts as possible, that will be helpful for any amateur PR specialist.

What do you wish you would have known before starting your career in PR? You need to approach public in a right way, and then it all comes in practice.

Describe your typical work week.

As for any representative of this field, it’s hard and busy. Due to the fact that I also run my company, I have to take care of both jobs, that takes a lot of energy.

How would you go about finding relevant contacts and sources?

Personally I, got lucky. I’ve worked at a lot of places, that gave me wide range of acquaintances and friends. My advice would be, attend as many seminars and events to get relevant contacts.

How would you prioritize and start your work day?

My work day starts with reviewing calendar and planning meetings, holding morning meeting at my department and setting right tasks for following day.

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

Being thoroughly involved in working process and taking responsibilities.

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

Personal relations with people and various types of meetings and events.

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

Recently social media took all place. New treds were identified.

One of them is internet televisions, that’s even more flexible in modern life and enables us to get information quickly.

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Wi-fi Thermostat MOSTAT Wins Startup Georgia Grant Georgia’s Innovation and Technology Agency presented the list of winners, and the scores assigned to their projects. On May 25, the best startups were awarded grants that will help them succeed and go global. Eighteen Innovative Startups received up to 100,000 GEL in funding.

Technological product MOSTAT, same as Wi-Fi thermostat for the central heating systems, belongs to the startup “Alien Green”, which was founded in 2016 by Paata Kveselava and Lasha Dolidze. CBW interviewed representatives from Mostat, one of the winning companies: What methodologies and techniques do you implement in developing of your startups?

We produce Wi-Fi thermostat for individual heating boilers which reduces monthly cost from 16% -39%. With the innovative options, MOSTAT’s thermostat can remotely manage temperature in the living or office spaces. It can be done through simple application available both in Georgian and English.

The MOSTAT is compatible with 90% of the individual heating systems in Georgia, has the ability to connect with other smart devices and is IFTTT service compatible.

What steps did you take to win Startup Georgia grant?

We’ve been working on this product for 2 years, together with strong team. We are simultaneously working on our second product, heating-conditioning remote management project. At initial stage, when we’ve been creating first product, our startup had specific finances, that we used to prototype and invent Mostat. At this stage, it’s already complete and on sale. In order to relevantly offer and introduce Mostat to Georgian users, we need additional financial sources.

Consequently, when the Ministry of Economy and Sustainable Development, the Innovations and Technologies Agency announced the co-financing grants program, we decided to participate with our startup.

Within the framework of the program, 132 applications were submitted, after which 41 of us

got to final. Qualified foreign specialists provided us with recommendations and advice, got us ready for final stage. We gained huge experience within these days and I want to thank organizers of the program on behalf of our team.

What opportunities does this grant give you; what’s next for the company?

First of all, the winning the grant has given us opportunity to quickly develop the startup, recognition of our product needs and the ability to quickly enter the market. We had the opportunity to explain to potential customers what we are offering and why to buy our product.

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Business News Eurotex to Open New Clothing Factory in 2018

Tech Startup STYX Wins Seedstars Tbilisi STYX a tech company from Georgia won Seedstars startup competition on May 29.

Eurotex company plans to open a new clothing factory by the end of 2018 in Rustavi.

Badagoni Wine Receives Four Gold Medals in Poland Badagoni, Georgian wine company received four gold medals at once at the Wine Competition GALICJA VITIS 2018 held in Poland.

Changes in Borjomi Top Management

Radisson Collection Welcomes Georgia’s Historic Tsinandali Estate Radisson Hotel Group is excited to announce the signing of the first Radisson Collection hotel in Eastern Europe and Russia. Radisson Collection – Tsinandali Estate will start soft opening period in September and open its doors officially in October 2018 in the iconic wine region of Kakheti, Georgia.

According to the Commersant’s reliable source, Borjomi company’s director general Zaza Kikvadze has been replaced by citizen of Ukraine Ian Gromiko. Kikvadze will continue his career on the position of advisor to director general of IDS Borjomi International corporate center.

Property Travel: A New Undertaking

by Property Georgia and Duda Travel The real estate hub Property Georgia and travel agency Duda Travel have established Property Travel – a new platform for investors and tourist groups.

Capital Letter of Mkhedruli Alphabet Added to Unicode 11.0.0

Sighnaghi Plant to Launch Fruit Leather Production

Unicode 11.0.0 was officially published, which, along with a lot of updates, comprises capital letters of modern Georgian alphabet.

According to new standards, 7 new alphabets were added to Unicode, as well as 66 emojis, and uppercase Georgian letters – 46 capital letters of Georgian Mkhedruli Alphabet.

Next week construction of fruit leather and dried fruit manufacturing plant will start in Tsnori, Sighnaghi, Badagi+ company founder Vakhtang Kajrishvili told BM.GE. The construction works will end in a year and the plant will launch production.

Biltmore Hotel Tbilisi Hosted Opening of New Garden and Bar-restaurant Azura “The Biltmore Hotel Tbilisi” hosted the opening of a new garden and bar-restaurant “Azura”. The opening ceremony was attended by the representatives of business, media, governmental and non-governmental organizations. The loyal guests of the hotel were invited as well.

Georgian Wine Month to Take Place in the US in June In June, large-scale tasting of Georgian wines are going to be held in the cities of the US. Wine professionals will be able to taste Georgian wines of different varieties in New York, San Francisco, Houston and Portland, which will be organized by the National Wine Agency contractor companies “Tastingwork” and “Marq Energie Consulting”.

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Visit and learn what the Wine Yard N1 offers you in Kakheti Winemaking, culinary, local folklore, family farming - If you are looking for a similar location, you should visit Wine Yard N1. It is a touristic place in Kakheti, which combines family type Marani (Georgian wine cellar) of three generations, house and yard.

The main intention of the touristic object, which is based on the family concept is to represent Georgian, Kakhetian families and to popularize the local lifestyle.

Wine Yard N1 offers to tourists local dishes and Kvevri (large earthenware vessels used for the fermentation, storage and ageing of traditional Georgian wine) wine.

However, only the dishes and tasting the traditional beverage is not enough here...

This place took the responsibility to introduce ethnographic elements of Kakheti. Wine Yard N1 has children’s local musical ensemble. In the case of your desire, they will introduce Gerogian dances and even will take for a ride by horses.

In the hosting process, the Wine Yard N1 also included the guest and made this process even more pleasant.

The queen of this place and the author of the idea Tika Dughashvili will guide you through her grandfather’s Marani (Georgian wine cellar) and teach you how to take the wine from the Kvevri with the ladle.

Locally produced Rkatsiteli and Saferavi wine tasting, making and tasting Vodka, baking bread and culinary master classes are inevitable.

This place has a two-storey house and a beautiful yard, its name comes exactly from this yard.

Wine Yard N1 is located 160 kilometers from Tbilisi, in the village of Akhalsopeli, Kvareli region, Kindzmarauli zone. It has the most beautiful view from the balcony, you can see the mountains of the Caucasus. There in the village are historical monuments of V century.

Visiting Wine Yard N1 - Menu and offerings Wine Yard N1 offers

guests the big “bouquet” of tasting: Three species of wine - Saperavi, Rkatsiteli (Kvevri wine) of this and previous year; Two species of Vodka of Chacha; Mtsvadi on tsalami; Mtsvadi in wine...

The menu is full with the dishes made with family recipes - ham, pork meat with potatoes, extra hot dish from the family; Chakhokhbili (traditional Georgian dish of stewed chicken with fresh herbs) or Shkmeruli (chicken dish from the village of Shkmeri, Racha), new potatoes with dill...

In the menu of course you can find cheese and bread, Tkemali and pickles, salads and Pkhali with the walnut.

Kompot, mineral water, coffee and peppermint tea with honey...

Fruit Assortment by seasons...

Tasting is one, but the second and perhaps more pleasant for tourists is to get involved in preparing dishes - to fry Mtsvadi, bake Khachapuri... The master piece of making Mtsvadi and Khachapuri is one of the m o s t p o p

ular things here. So, the hosts are ready even for only master classes. Wine Yard N1 has various offerings, different and overly acceptable prices. It depends only on tourist’s opportunities and wishes, because for Tika and her family hospitality is a favorite thing.

If only Wine Yard N1 is not enough for you, then you can ask for a picnic in the valley, at Georgia and Dagestan border - the hosts will offer you to visit historical monuments.

They even won’t refuse you in Agro destina

tions, you can get involved in seasonal works - they have predicted everything in advance.

Dugashvili family has a small farm as well, but we’ll talk about thisa little bit later...

12 June 11, 2018 #241

World News

13 June 11, 2018 #241

Microsoft Confirms it’s Acquiring GitHub for $7.5 billion Microsoft is acquiring GitHub. After reports emerged that the software giant was in talks to acquire GitHub, Microsoft is making it official.

Iranian company to plant intensive pistachio gardens in Armenia TAP talks on Process of Building Micro-tunnel in Italy The micro-tunnel waterproofed pit is now complete as part of construction of the Trans Adriatic Pipeline (TAP) in Italy’s Puglia, Gabriele Lanza, TAP project manager for Italy.

Iranian company Tana Partez will plant intensive pistachio gardens in Armenia’s Armavir province, Armenian Ministry of Agriculture said. It said an agreement to that end was reached at a meeting between Armenian Minister of Agriculture Artur Khachatryan and the head of Tana Partez LLC Beyazda Eslaichi.

‘Remarkable’ Therapy Beats Terminal Breast Cancer The life of a woman with terminal breast cancer has been saved by a pioneering new therapy, say US researchers.

It involved pumping 90 billion cancer-killing immune cells into her body.

Judy Perkins had been given three months to live, but two years later there is no sign of cancer in her body. The team at the US National Cancer Institute says the therapy is still experimental, but could transform the treatment of all cancer.

Azerbaijan Starts Electricity Export to Iran Azerbaijan has started to export electricity to Iran from today, Azerenergy’s spokesman Yahya Babanli told APA-Economics.

Babanli also announced the date of next trilateral meeting on integration of energy systems of Azerbaijan, Russia and Iran. He said that Working Groups of the three countries are planned to meet by the end of June.

Theresa May’s foreign minister says a second Brexit referendum is now ‘possible’ A second Brexit referendum on the terms of Theresa May’s Brexit deal is now “possible,” a senior member of her government said on Thursday.

Speaking in Berlin, UK foreign office minister Alan Duncan said that a public vote on May’s deal could now take place.

Russia, China to create joint investment fund worth $1 bln Russia-China Investment Fun d (RCIF) and a Chinese partner will set up an investment fund worth $1 bln, cohead of the Fund and Chief Executive Officer of the Russian Direct Investment Fund (RDIF) Kirill Dmitriev said Thursday.

“Tomorrow we will announce an agreement with one of China’s leading funds on establishing a fund worth $1 bln to invest in such sectors as transport, tourism, and infrastructure,” he said.

Inflation rise poses challenge to Erdogan as election looms The battered Turkish lira has enjoyed a period of relative tranquility over the past two weeks. An emergency interest rate hike and soothing noises

from senior officials appeared to calm nerves following a prolonged game of brinkmanship between President Recep Tayyip Erdogan and international investors that drove the currency to record lows. But the problems have not gone away.

World Bank warns trade tensions could cause 2008-level crisis A worldwide escalation of the trade tensions between the US and its major trading partners would have consequences for global trade equivalent to the 2008 financial crisis, the World Bank has warned.

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15 June 11, 2018 #241 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: 29167-40/41/42 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 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, 291-2689/59 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, 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 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

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