Georgia
It is always good to know who worked hard for this guide. Many talented people and many wonderful stories have gone into making it. Here is the list of those involved:
PRODUCTION Producer: Pascal Belda Regional Director: Laetitia Saint Maur Local Project Director: Emma Goldsmith Guide Developers: Daniel Adler and Christopher Woolnough
EDITION Economic Sector Overview written by: Nikos Avgeris Energy Sector Overview written with the collaboration of the Ministry of Energy Healthcare Overview written by eBizGuides with the collaboration of the Ministry of Labour, Health and Social AffairsTourism Information provided by Department of Tourism and Resorts & Georgia Today Investment data and graphs provided by Georgia National Investment Agency Photos: pictures by eBizGuides, New Georgia Poligraphy, Zeev Frenkeil, George Tatishvili-NAOG, Georgian Oil & Gas Corporation, Department of Tourism and Resorts, Georgian Railway
ACKNOWLEDGEMENTS We would like to thank the following people for their collaboration and support: Minister of Economic Development, Min. Zurab Pololikashvili, Georgia National Investment Agency Director, Irakli Matkava, Ia Janashia, Beso Chantladze, Sophie Pachulia, Elisabed Khabazashvili and the rest of the team, Nick from NGP, all the team at Betsy’s Hotel, Georgian Insurance Association, Ministry of Labour, Health and Social Affairs. We would also like to thank the heads of the following companies and organisations for their sponsorship and support and without whom this eBizGuide would not have been possible: Betsy’s Hotel, BLC, Caucasus University, Department of Tourism and Resorts, DHL-Georgia Express, Eastern Promotion Ltd, Efes Natakhtary Breweries, ENISELI Wines, Geocell, GOGC-Georgian Oil & Gas corporation, Georgian Railways, Georgia Today, GIH-Georgian International Holding, GNIA-Georgia National Investment Agency, HSBC, MediClubGeorgia, m|group, MSG+, NGP- New Georgia Poligraphy, Poti Sea Port, RAKIA FIZ Georgia, SOCAR Energy Georgia, TAV Urban Georgia LLC, TBC Bank, Vere Palace Hotel & Vera Steakhouse.
DISCLAIMER While every effort has been made to ensure the accuracy of the information contained in this publication, this cannot be guaranteed and neither eBizGuides nor any related entity shall have any liability to any person or entity that relies on the information contained in this publication. This publication is not a substitute for professional advice and it should not be acted on or relied on or used as the basis for any decision or action that may affect you or your business. Any reliance is solely at the user’s risk.
World Investment News Inc Customer Services: Tel: + 34 91 787 38 70 Fax: + 34 91 787 38 89 E-mail: guides.info@ebizguides.com Website: www.ebizguides.com
2
Printed by: IMPRENTA ROAL Customer ISBN: 978-84-937-345-96 Legal Deposit: M-20431-2010
www.ebizguides.com
HOW TO USE THIS GUIDE?
The goal of eBiz Guides is to offer extensive economic and investment information on a country, with a focus on the top companies, while offering the best tourism and entertainment information for your spare time. With this, we believe that our readers can get fully acquainted with the country, before investing in it long term. This book comprises three major sections, which deal with general information, the country’s economy and entertainment and leisure.
General Information
Background information on the country is coupled with a useful map and vocabulary.
Business
This section of the book starts off with the main business resources available for you as well as an in-depth look at the country’s investment and legal framework and the economy itself.
Through personal interviews with the most important business people in the country, we then provide our readers with privileged information and sector analysis, including introductions written by decision-makers in the sector, such as government ministers. You will also find fact files of all major corporations, outlining their business activities, key projects and any investment opportunities.
Entertainment/Leisure
For you to fall in love with the country, we also showcase the best spots to visit, essential areas to discover, the top hotels, restaurants and much more.
Icons
eBiz Recommended These companies were particular favorites of our team during their stays; this stamp is mostly given to restaurants, hotels and so on.
eBiz Recommended Partner Our team has been interviewing the heads of many companies; when they choose to allocate this stamp to a company, it is because they have received reliable service from the company.
Notice!
This indicates that the information is important and something to take notice of when planning, or during your stay.
www.ebizguides.com
3
4
INDEX INTRODUCTION Country Profile
7
General Information
11
Did you Know?....
29
Vocabulary
30
INDEX
BUSINESS Top Companies
33
Business Resources
35
Investment and Legal Framework
53
The Georgian Economy
73
Finance
81
Energy
95
Industry and Trade
111
Real Estate and Construction
131
Information Communication Technology
141
Tourism Industry
149
Transportation
161
Public Services
H
177
Agriculture
189
Company Index
198
ENTERTAINMENT Overview
202
Tbilisi
210
Batumi/Poti
220
Ski resorts: Gudauri and Bakuriani
222
Day trips: Mtskheta/Kakheti/Sighnagi
223
SOURCES Internet Websites
@
227
5
MAP
0
6
100 200 km
www.ebizguides.com
COUNTRY PROFILE
COUNTRY PROFILE
www.ebizguides.com
Official name Capital Main towns Population Population by Municipality
Area Religion
Languages
Currency Government system Time Climate
International airports Telephone code
Georgia Tbilisi Kutaisi, Rustavi, Batumi, Sokhumi, Gori 4.7 million Tbilisi (1,136,000), Kutaisi (233,000), Rustavi (150,000), Batumi (130,000), Sokhumi (120,000), Gori (68,000) 69,700 km2 Orthodox Christian 83.9%, Muslim 9.9%, ArmenianGregorian 3.9%, Catholic 0.8%, other 0.8%, none 0.7% Georgian 71% (official), Russian 9%, Armenian 7%, Azeri 6%, other 7%, note: Abkhaz is the official language in Abkhazia Georgian Lari (GEL) Republic GMT +4:00 In West Georgia the dominant subtropical climate features high humidity and heavy precipitation, while East Georgia has a more continental and drier climate. The alpine zone begins at about 2,100 metres; above 3,600 metres snow and ice are present year-round. The average summer temperatures: 2040 degrees, Winter: - 0 -15 degrees. Tbilisi International Airport, Batumi International Airport +995
7
0
8
100 200 km
www.ebizguides.com
Preface by Minister of Economic Development of Georgia, Zurab Pololikashvili
It is a pleasure and honor to have the opportunity of introducing Georgia to a worldwide audience through such a popular and successful publication as the eBizguide. My country has undergone many changes throughout the last 5-6 years in order to become an attractive investment destination and to capture the interest of the international business community. The results of the reforms carried out in Georgia and the impressive growth are evident and duly reflected in international ratings and assessments.
Georgia has much to offer. If you are looking for a place to invest then you have found it. A liberal and open economy, with the bare minimum of regulations and government intervention, next to one of the world’s most liberal tax systems and extremely favorable trade regimes makes Georgia a destination of choice for investors looking to work in the Caucasus or Middle East, Central Asia and Eastern Europe. Ease of creating free economic zones and well-developed transportation infrastructure only augment Georgia’s position of a gateway to all these regions.
Providing tremendous business opportunities, Georgia at the same time offers a large variety of recreation and entertainment options. Beautiful nature and diverse landscape combined with Georgia’s historic and cultural heritage, arts, music festivals, fashion shows, famous hospitality and delicious cuisine, make our country a year-round tourist destination. Known as the “cradle of wine”, Georgia has millenniums-old tradition of winemaking and offers a large variety of high quality wines, produced from the finest grapes of the fertile and sunny valleys. Most of these wines have gained international prizes and are well-known in different parts of the world.
But there is even more to that, in Georgia you will find a society and a country that breathes freedom and openness. While a receptive and accessible government will stand by you in all your business endeavors, people of Georgia known for their legendary hospitality, will make your stay unforgettable.
Whatever the reason might be: business or leisure, we are looking forward to the pleasure of hosting you!
www.ebizguides.com
9
10
GENERAL INFORMATION
11
General Information HISTORY The history of Georgia plays a crucial role in the lives of each and every Georgian and is a fundamental element to their own personal heritage. When given the chance they love to speak about the history and the chances they as individuals have encountered. The sea, mountains, and desert are what captivate the landscape of Georgia. Diversity is the nature of Georgians, defined by these contrasts.
The combination of Georgian history, which goes back over five thousand years, and the fifteen hundred years of embedded Christianity, is what makes the Georgian nation so unique. The Georgian alphabet is one of the few existing in the modern world. The oldest writings in Georgian language are easily read and understood by modern Georgians without any translation. Throughout centuries the history of Georgia’s boundaries has evolved, altered, extended and been considerably reduced in size from its original territory.
Tbilisi has always had long been a thriving commercial centre
12
www.ebizguides.com
General Information RUSSIAN RULE
INDEPENDENCE
It was in the year of 1770 when Russian troops crossed the Caucasus for the first time in order to assist with the liberation of Imereti from the Turks. Russia then went on to occupy all of Georgia during the 19th century, replacing the local or Turkish rulers with their own military governors.
The Georgian independence movement became an unstoppable force after the Soviet troops massacred 20 peaceful demonstrators in Tbilisi in April 1989.
During the Russian Revolution, Georgia enjoyed independence from 1918 to 1921, but it was then invaded by the Red Army and incorporated into the Soviet Union in 1922. The 1930s saw Georgia, like the rest of the USSR, suffered from the Great Terror by Joseph Stalin. It was only after 1953 and the death of Stalin that Georgia began to enjoy a good quality standard of living and the 1960s and 1970s were looked upon as a time of public order, peace and high living standards. It was by the mid1980s that Mikhail Gorbachev began his policies of reform and the USSR disintegrated in just seven years.
Freedom Square has been the site of various mass demonstrations including those for Georgia’s independence
www.ebizguides.com
Georgia, Armenia and Azerbaijan all declared independence in 1991, and the Soviet Union formally split into 15 different nations in December that year. The Caucasus region was immediately plunged into savage internal strife. Georgia’s first president, Zviad Gamsakhurdia, was driven out in a civil war in 1991-92, which led to bloody fighting in South Ossetia (1991-92) and Abkhazia (1992-93) and concluded in both these regions effectively being independent of Tbilisi. The economies of all three countries saw a dramatic downfall with the wars, the refugee problems and the ending of the Soviet state support for industry and agriculture.
Narikala fortress (4th century-17th century AD) overlooking Tbilisi
13
General Information NATIONAL SYMBOLS
COAT OF ARMS
The National Anthem
This is Georgia’s coat of arms adopted on 1 October 2004. It is partially based on the medieval arms of the Georgian royal house of Bagrationi.
Georgian ჩემი ხატია სამშობლო, სახატე მთელი ქვეყანა, განათებული მთა-ბარი, წილნაყარია ღმერთთანა. თავისუფლება დღეს ჩვენი მომავალს უმღერს დიდებას, ცისკრის ვარსკვლავი ამოდის ამოდის და ორ ზღვას შუა ბრწყინდება, და დიდება თავისუფლებას, თავისუფლებას დიდება!
Literal translation My icon is my motherland, And the whole world is its icon-stand, Bright mounts and valleys Are shared with God. Today our freedom Sings to the glory of the future, The dawn star rises up And shines out between two seas, So praise be to freedom, To freedom be praise!
It has two lions rampant as supporters. They held a shield with St George, Georgia’s patron saint, slaying the dragon. The shield is surmounted with the royal crown of Georgia. It originally comes from a famous fable of SulkhanSaba Orbeliani of the same name. According to this fable once upon a time there lived a king with thirty sons. One day, when he felt the come of death, he called his sons and asked them to bring arrows. Then, the king asked them to break the arrows one by one, and the sons did. The king then asked them to break the arrows all at once, and they could not. The king said: “teach o my sons from this fact, here is strength of unity. If you are together, an enemy cannot do you wrong, but if you are divided, victory will be on their side.” The motto below the symbol reads, ‘Strength is Unity’
The National Flag
GOVERNMENT PROGRAM Main goals of the Georgian government for the years 2008-2012 are as follows: The official flag of Georgia is the ‘five-cross flag’ restored to official use in January 14, 2004 after a break of 500 years. It was previously the flag of the medieval Georgian kingdom and had been used as the official symbol of the United National Movement political party.
14
- Wellbeing of the population, Georgia without poverty. - Ensuring national security and complete territorial and civil reintegration.
www.ebizguides.com
General Information
Official Residence and Principal Workplace of the President of Georgia
For the purpose of improving wellbeing of the population, the efforts of the government will be directed to providing a fast and widely effective economic growth on one hand and towards implementation of large-scale social programs on the other. Fast and large-scale effective economic growth will be provided by creating a stable macroeconomic environment, by decreasing the role of the government in the economy and by maintaining a low inflation rate. Achieving the said goals will be ensured by the proficient budget and simple and low tax rates, by attracting foreign investments and the protection of private property rights, by practicing liberal trade and transport policies, by increasing exports and commercialisation of agriculture, by enhancing employment and accumulation as well as establishing foundations of stable development for future generations. The policies directed against poverty will envisage consolidation of the resources and creation of effective institutions for helping the poor. The above set objectives will be ensured through the goal-directed expenditure of social budget resources, by employing effective mechanisms to select the beneficiaries, by the programs designed for development of the hospital system, by a largely developed network of village medical doctors, through the insurance system provided by the government for the socially vulnerable part of the population, by the package of social pensions.
www.ebizguides.com
Fast economic growth and reduction of poverty requires investments in road, port and railway infrastructure, as well as implementation of the Open Sky policy, liberal regime for land transportations, increase of utilisation of hydroenergy resources, diversification of energy supply and a decrease of regional misbalance. In order to implement the above goals it is of paramount importance to establish a compact and flexible public service free of corruption and orientated towards the talents and skills of the personnel. During the next 5 years the economic course and dynamics of recent years will be maintained. - The fast pace of economic growth will be continued. During the next 5 years the annual economic growth will reach 9% on average. According to the World Bank classification Georgia will be shifted to the group of the “average-high income countries�. - The state share in economy will be decreased. The state share in the budget with regard to GDP will be reduced to 20% compared to the currently existing 29%. - Inflation will be firmly maintained on one digit level. In effect of stringent monetary policies carried out at the starting stage of the program and on the background of the proficient budget average level of inflation, which amounted to 6% during the last 5 years.
15
General Information
- The amount of foreign investments will increase 6 times in the course of next 5 years. The investments will exceed the GDP to 15% and will amount to 10 billion dollars in total. - The budgets will be proficient. During the upcoming years the budget surplus will amount to minimum 0.5% of the GDP. - The tax regime will be supportive to employment, accumulation and economic growth. Income tax will be reduced to 15%. Other types of taxes on personal profit will be nonexistent and capital taxes will be abolished. - Georgia will turn into an international financial centre. The country will attract financial resources from the entire region. The attractiveness will depend on simple and low taxes, transparent financial regulations and a reformed economy. In effect of this, not less than 12 billion dollars of financial resources will be allocated. Trustful financial institutions will be operating in the banking, insurance and reinsurance spheres, as well as in trade with securities. - A Fund for Future Generations and a Fund for Stable Development will be created. - The Fund for Future Generations will accommodate about 30% of the fiscal surplus/ remains and 75% of privatisation/capital income. The fund will also accumulate minimum 5 billion GEL and its management will be undertaken by the leading financial institutions of the world. - The Fund for Stable Development will take the surplus/remains amounting to 25% and 25% of the investment/capital income; it will accumulate about 3 million GEL.
with the European Union, the USA, Turkey, the European free trade zone and the Persian Gulf Cooperation Council. - The guaranteed property right. In effect of the constitutional and legislative changes as well as by way of improvement of the judiciary practices, the degree of inviolability of private property will increase and it will be ensured not only by the legislative but on the implementation and comprehension levels as well. - The credit rating of the country will be improved. Under the findings of the internationally acknowledged research studies, the assessments will increase to minimum 4 scores. - Evaluation of the investment environment of the country will be improved. In the international comparative analysis of the business environment Georgia’s indicators will exceed the average indicators of the countries of the European Union.
Wellbeing of the population - The healthcare infrastructure will develop 100 hospitals, constructed and equipped in compliance with modern standards will start functioning on a full scale. - The Poti port infrastructure will be enlarged. The cargo turnover of the Poti port will increase up to 12 million tons. The port will process about 270, 000 containers annually.
- The export share of GDP will reach 40%. In effect of liberal trade policies, economic growth and the development of free industrial zones the economy will be more projected to exports. - Only a small amount of property will remain in the hands of the state. More flexible and effective forms of privatisation will be implemented. Management of the already existing companies will be undertaken by private operators in all sectors of the economy. - Export undertaken through free trade will amount to more than 80% of the total export volume. The free trade regime will be enacted
16
Georgia’s two ports serve as a gateway from the Black Sea to the Caucasus and the larger Caspian region.
www.ebizguides.com
General Information
- The Poti free industrial zone will start its operation on full-fledged terms. The industrial zone will attract investments amounting to about 1.5 billion dollars and approximately 20, 000 people will be employed. Effective operation of the free industrial zone will bring about development of industrial infrastructure and services across the region. - The Batumi port and the Kulevi terminals will be completely enacted. They will be engaged in processing and transportation of the raw oil products from Azerbaijan and Central Asia and these two facilities will become a major network of such activities. - The road infrastructure will be improved. Construction of the Eastern segment of the main highway will be completed; in addition, approximately 30% of the road fund will be rehabilitated. - The Intensity of air traffic and the number of flights will increase. The number of airline companies will be increased and number of the passengers will double; one more international airport will be added to the existing two. - Georgian Railways will turn into a successful corporation. Shares of the corporation will be traded on the leading and developed stock exchanges. The railway infrastructure will be developed; a new Tbilisi railway bypass will be implemented which will reduce congestion from the centre of Tbilisi. - The railway connection lines joining ChinaGeorgia-Europe will be laid. Construction of the Karsi-Akhalkalaki railway will be completed and Georgian Railways will be connected to Turkey.
- The real estate market will be developed dynamically. The volume of construction will double over the next 5 years and there will be considerable diversification within the sector. - More than 500 extra megawatts of hydro power will be produced. During the next 5 years utilisation of the hydro resource potential will be increased by up to 13%; contribution of hydro resources for the production of energy resources will increase to 90% compared to the previous 25%. - Sustainability of the energy system will grow forth. Further regulations of the sector will continue; energy generation as well as its supply will be stabilised and diversified. Most part of the electric energy will be generated by means of the renewable resources (hydro-resources). Diversification of the import sources of electric energy will be ensured. The energy system will operate in parallel regime with neighbouring countries. - Export of electric energy will increase. Positive trade balance will be maintained and will be increased three times compared to the indicator of 2007. - Diversification of fuel sources for the rural population has been undertaken. The gasification program was implemented and therefore, in effect of regulations undertaken in the gas system and as a result of attracting additional capital to this sector the number of gas settlements will increase. The Trans-Asia-Europe (TAE) optical fiber cable route will be put into operation. Transmission of large portions of information between Europe and Asia will be ensured. - Computerisation of the population will double. The inequality in providing Internet opportunities to the urban and rural population will be considerably reduced. - Accessible facilities for electronic payments will become available. Electronic payment system will be introduced, including by means of cellular phones. An available system of electronic payments will be enacted.
A new modern railway system serving all major towns throughout the country
www.ebizguides.com
17
General Information
Agriculture and natural resources - Increase of effectiveness of the agricultural sector and its commercialisation. During the next 5 years, export of agricultural products will equal to 25% of the total exports; the territory supplied with irrigation systems will be increase by 2.5 times (from 130 thousand hectares to 300 thousand hectares).
The Education City Program will be accomplished and 30,000 students involved in this program will receive quality education matching all modern international standards; more than 3,000 scholars will also be involved in the scientific research process; the quality of high education and integration of scholarly activities will increase considerably. - Private education system will also develop in parallel to the public education system. Private investments will be allocated which will make the country a leading educational centre in the region. - All public schools will be compliant to modern standards. The Deer Leap Program will be successfully implemented and within the framework of the said program all public schools will be equipped with computers; this will enable them to be connected to the global network.
The climate of Georgia makes it ideal for growing corn and harvesting grapes and tea
- More than 200 enterprises for processing agricultural products will be created. More than 10 thousand people will be employed and about 100,000 people will be involved in the process. Development of the agricultural sector will enhance successful implementation of the governmental program: 100 New Processing Plants in Rural Areas.
- The program of rehabilitation of the sports infrastructure will be implemented. About 50 sports centres will be constructed all across Georgia which will be compliant to modern standards. 3,000 sportsmen with special skills and talents will receive grants through a voucher system and 3,000 children, living below the poverty line will also benefit from the Get Healthy Program.
- The private sector will undertake management of natural resources. The expiry terms will be increased on licenses for utilising natural resources. This will ensure economic efficiency on one hand and will reduce to minimum pollution and contamination of the environment on the other.
Education, culture and sports - Competitiveness of the universities will increase. In effect of implementation of the Education City Program, higher education institutions will be involved in modern education and learning process. Quality of the studies will be on level with international standards.
18
Locals enjoy the mild climate that Georgia is blessed with year round
The public sector - The public sector will be based on the principles of dignity. For the purpose of increasing efficiency of the public sector the principles of its management will be brought closer to those of the private sector. Elements of the contact system will be implemented in the public sector; measurable mechanisms of evaluation of
www.ebizguides.com
General Information
the performance of public institutions and clear criteria of monitoring will also be implemented; in effect of all these measures a flexible, transparent, effective and compact public sector will function and high officials will be overseen by a special supervision system. - Anticorruption reforms will be maintained and developed further. The system of property and financial declarations will be improved in the public sector. The norms of the code of ethics will be implemented; the system of employment and promotion will be more transparent and the mobility between the public and private sectors will also increase. - Electronic signatures and the unified governmental network will be implemented. The practice of using electronic signatures and electronic documents will be put into operation both in the private as well as in public sectors. Source: Invest in Georgia-GNIA
Public justice is one of the forms of administration of the judicial power. Justice is administered by the common courts through civil, administrative and criminal procedures. The common courts of Georgia are district (city) court, court of appeals, Supreme Court of Georgia. District (city) court is the court of first instance which tries cases attributed to its jurisdiction by one judge under the procedure established by the procedural law or in the cases provided by the law by a panel of three judges. Court of appeals hears appeals on decisions of district (city) courts by a panel of 3 judges under the rules established by the procedural law. The above mentioned matters are regulated by the Organic Law of Georgia On Common Courts, passed by the Parliament of Georgia on June 13, 1997.
THE JUDICIAL SYSTEM In Georgia, judiciary is administered through justice, constitutional control and other forms established by the law.
Parliament of Georgia, Rustaveli Avenue, Tbilisi
www.ebizguides.com
19
General Information GEOGRAPHY Georgia is located in the mountainous South Caucasus region of Eurasia, connecting Western Asia with Eastern Europe and between the Black Sea and the Caspian Sea.
One of the main Hydro plants serving Tbilisi
Georgia’s proximity to Europe, combined with various cultural and political factors, has increasingly led to the inclusion of Georgia into Europe. Many sources refer to Georgia as being included within the European region and Georgia is also a member of a considerable amount of European organisations such as the Council of Europe, and is seeking membership in NATO and accession to the European Union.
elevation and while much of the lowland areas of western Georgia are relatively warm throughout the year, the foothills and mountainous areas (including both the Greater and Lesser Caucasus Mountains) experience cool, wet summers and snowy winters. Eastern Georgia has a moderate climate from humid subtropical to continental. The region’s weather patterns are influenced both by dry, Central Asian/Caspian air masses from the east and humid, Black Sea air masses from the west. The penetration of humid air masses from the Black Sea is often blocked by several mountain ranges (Likhi and Surami) that separate the eastern and western parts of the nation. Annual rainfall is considerably less than that of western Georgia and ranges from 400-1,600 mm. The wettest periods generally occur during spring and autumn while winter and the summer months tend to be the driest. Much of eastern Georgia experiences hot summers (especially in the low-lying areas) and relatively cold winters. As in the western parts of the nation, elevation plays an important role in eastern Georgia as well, and climatic conditions 1,500 meters (4,920ft.) above sea level are considerably cooler than those of the low-lying areas.
CLIMATE Georgia’s climate is extremely diverse, considering the nation’s small size. There are two main climatic zones, roughly separating the Eastern and Western parts of the country. The Greater Caucasus Mountain Range plays an important role in moderating Georgia’s climate and protects the nation from penetration of colder air coming from the north. The Lesser Caucasus Mountains partially protect the region from the influence of dry and hot air from the south. Much of western Georgia lies within the humid subtropical zone with annual precipitation ranging from 1,000-4,000 mm. The precipitation tends to be uniformly distributed throughout the year, although the rainfall can be particularly heavy during the autumn months. The climate of the region varies significantly with
20
The Greater Caucasus Mountain Range plays an important role in moderating Georgia’s climate
www.ebizguides.com
General Information PEOPLE
RELIGION
Georgia is a place of increasing curiosity. One moment you may think they look like Russians and the next moment you think they are like Southern Europeans. Their language is extremely unique and has a complicated yet beautiful alphabet. The majority of the older population speak Russian as opposed to speaking English, however, the younger generation are highly proficient and today there is a large importance placed on English language learning. Speaking Russian is also highly beneficial as the majority of the population either speak Russian or at least understand it.
The majority of Georgians practice Orthodox Christianity (83.9%) and have enjoyed a big revival since the end of the Soviet era. Citizens are also very respectful of other religions, which make up the rest of the population: Muslims 9.9%, Armenian Gregorian 3.9%, Catholic 0.8% and other 0.8%.
When in Georgia you will never feel alone as Georgian people are extremely hospitable and friendly and are always willing to help anyone that requires assistants; even if they do find it difficult to communicate they will try their best to find you directions. They are very curious and fond of foreigners and will want to introduce and share their country, their history, traditions and among other things, their Georgian cuisine.
Religion has always played a very important role in the lives of Georgian people. It played and continues to play a major role in the cultural development of the country and the capital itself. A large proportion of Georgian citizens attend services on a regular basis and most are very conservative. Women cover their heads when they enter a church and everyone is very respectful. Likewise they expect foreign visitors to follow their respectful traditions.
TRADITIONAL CULTURE One might say that Georgian culture has evolved over a long period of time, and rightly so. Its changing history has led it to have one of the most interesting languages used by mankind, setting forth a unique national culture and a strong literary tradition base on the Georgian language and alphabet. This has led to a strong national identity that has helped to preserve Georgian uniqueness despite repeated periods of foreign occupation and attempted assimilation.
The Monastery of Gelati, a monastic complex near Kutaisi, Imereti, western Georgia
One of the most unusual traditions of dining in Georgia is Supra, or Georgian table, which is also a way of socialising with friends and family.
www.ebizguides.com
21
General Information PUBLIC HOLIDAYS
Banks
•
New Year’s Day – 1st January
•
Orthodox Christmas Day – 7th January
•
Epiphany – 19 th January
There are over twenty commercial banks in Georgia with a significant number of branches and ATM Machines with the majority of them providing Western Union money transfers.
•
Mother’s Day – 3rd March
•
Women’s Day – 8th March
•
Orthodox Easter Sunday & Monday – April or May, depending on church calendar.
•
National Unity Day/Independence Restoration Day – 9 th April
•
Victory Day – 9 th May
•
Independence Day – 26th May
•
Mariamoba (Assumption) – 28th August
•
Svetitskhovloba (Day of Svetitskhoveli Cathedral, Mtskhete) – 14th October
•
Giorgoba (St George’s Day) – 23rd November
COMMUNICATIONS Mobile Phones Anyone with a mobile phone can easily get a SIM card for a Georgian phone network. SIM cards usually cost 5 GEL and there are three main networks: Magti, Geocell and Beeline. Geocell has the widest coverage. These SIM cards can then be credited by buying cards from most shops and kiosks in the amount of 5 GEL and upward.
Fixed Line Telephones
Food shops are open every day from 9:00 am to 9:00 pm, and beyond General shops are open from 10:00 am to 7:00 pm (Monday to Saturday) Banking hours are 9:30 am to 5:30 pm (Monday to Friday)
Most Georgian cities have two area codes: one for when you are calling from other countries (usually staring with 3) and another for calls from inside Georgia (usually starting with 2). The Tbilisi city codes are 32 (international) and 22 (domestic). To call a Georgian fixed phone from outside Georgia, you have to dial the country code (+995), followed by the city or town international code then number. In order to call a fixed phone from another fixed phone in the same Georgian town, you have to dial the five or six digit local number. To call a fixed phone from another fixed phone in a different Georgian town, or from a mobile, dial the longdistance access code (8).
MONEY MATTERS
Internet Services
BUSINESS WORKING HOURS
Currency The currency of Georgia is the Lari (GEL). The Lari is made up of 100 tetri. Bank notes come in dominations of one, two, five, ten, twenty, fifty, one hundred, two hundred and five hundred. Lari coins are one and two.
Internet services are certainly getting better in Georgia with most major hotels having internet access whether this be fixed or wireless. There is also a large number of internet coffee houses and restaurants that also provide the opportunity for business people to have that working lunch.
Many shops and restaurants will also have the prices in US Dollars in order to benefit those travelling through Georgia.
22
www.ebizguides.com
General Information Media The media in Georgia is the freest in the Caucasus. The main daily newspapers in Georgian are 24 Saati (24 Hours), Rezonansi (Resonance). The main Russian newspaper is the daily Svobodnaya Gruzia (Free Georgia). For the English readers, there is a surprisingly large amount of different newspapers available to read, like Georgia Today, which comes out on a Friday with a mix of varied news items including political, business and cultural affairs. The daily Messenger is good for daily news and entertainment listings. There is also The Georgian Times and Georgian Business Week, which are published on Mondays.
aware of one’s surroundings and should take care when in unfamiliar environment. If you are hesitant however, one can always take a taxi, as they are readily available and very inexpensive.
GEORGIA VISA, PASSPORT AND ENTRY REQUIREMENTS Those citizens of EU countries, the USA, Canada, Japan, Israel, Switzerland, Norway, Iceland, Liechtenstein, Andorra, San Marino, Turkey, Kuwait, Qatar, Bahrain, the United Arab Emirates, Oman, South Korea and CIS nations (except Russia) do not require a visa to visit Georgia for up to 90 days. If however you are not from one of the above countries, you will be able to obtain a visa from the Georgian Embassy or Consulate. The price of a standard visa is approximately 60 GEL and a double-entry 90-day visa that is only available in the consulate is 90 GEL. It usually only takes a few days for the visas to be issued and are very straight forwarded.
Tbilisi TV tower
BEFORE AND AFTER ARRIVAL Safety Georgia has done an extremely good job in removing the bad reputation it once had for muggings, street violence and corruption. Even the capital city of Tbilisi has a very safe feel to it and it is rare to feel threatened or encounter any acts of crime or violence. However, as in any city in the world, one should always be conscious and
www.ebizguides.com
Taxis are inexpensive, safe and plentiful in Tbilisi
23
General Information HOW TO GET THERE AND AROUND Air
Metro
Tbilisi airport is situated just 15km east of the centre and has a modern terminal opened in 2007 with a growing range of international flights. The new passenger terminal has established Tbilisi International Airport as a ‘hub’ airport where airlines can increase connectivity between the European and Asian markets.
Tbilisi Metro works everyday from 06:00 to 00.00. Two lines and twenty two stations are available so far. You can recognise a metro station with a circular, red and white symbol ‘M’ on top of it. Most of the stations are underground however, twoElectrodepo and Didube – go over ground.
Recently modernized Batumi International Airport is also expanding its flight geography and provides direct acces to the Georgian Black Sea coast.
A single journey is possible by buying metro coins for 0.40 GEL (0.20 GEL for students, 0.10 GEL for disabled people and its free for children). Discount cards are also available for regular users.
Bus
Taxi
Tbilisi has three long-distance bus and marshrutka stations: Didube (this is the main hub for national transport), Ortachala (for Kakheti, Armenia, Turkey and Greece) and the main train station (for western Georgia and further Yerevan services).
Taxis can be found on nearly every corner of every city within the country. If not, it only takes a few moments after calling one of the taxi firms for a taxi to appear. Most taxis however do not have taxi meters and you therefore have to negotiate the price beforehand. It is also possible to order a taxi from wherever you are staying. A taxi ride in Tbilisi will cost between 3-8 GEL.
Getting around Tbilisi is very easy, with hundreds of yellow buses arriving at bus stops every 2-3 minutes. A single ride costs 0.40 GEL (0.20 GEL for students, 0.10 GEL for disabled and free for school children.
24
www.ebizguides.com
General Information EMBASSies Please consult with the list of embassies at www.mfa.gov.ge Embassy of the United States of America Ambassador: Mr. John Tefft George Balanchini N11 Tel: (+995 32) 277 000 Fax: (+995 32) 532 310 kopaleishvili@pd.state.gov www.georgia.usembassy.gov
Embassy of the Republic of Italy Chitadze str. N3a Tel: (+995 32) 996 418, 921 462 (department of consulate) Fax: (+995 32) 237 133 ambita.tbilisi@access.sanet.ge
Embassy of the Republic of Azerbaijan Kipshidze str, block II, house I Tel: (+995 32) 252 639, 25-35-26 Fax: (+995 32) 250 013 azembassy@internet.ge
Embassy of Islamic Republic of Iran Aminian Tusi 80 Chavchavadze Ave. Tel: (+995 32) 91 36 56/52 Fax: (+995 32) 91 36 28 iranmb@geo.net.ge
Embassy of the Republic of Bulgaria D. Aghmashenebeli Avenue N61 Tel: (+995 32) 910 270, 910 195 Fax: (+995 32) 910 270 bgembassy.georgia@ge
Embassy of the Kingdom of Netherlands Sheratom Metekhi Palace, Telavi str. N20 Tel: (+995 32) 27 62 00 Fax: (+995 32) 27 62 32 tbi@minbuse.nl
Embassy of Federal Republic of Germany Sheraton Metekhi Palace, Telavi str. N20 Tel: (+995 32) 44 73 00/44 73 64 Fax: (+995 32) 911 521 deut.bot.tbilisi@access.sanet.ge www.tifl is.diplo.de
Embassy of Poland The brothers Zubalashvilis str. N19 Tel: (+995 32) 920 398 Fax: (+995 32) 920 397 ambpolgruzja@access.sanet.ge
Embassy of the United Kingdom of Great Britain GMT Plaza, Freedom square N4 Tel: (+995 32) 27 47 47 Fax: (+995 32) 274 292 British.embassy.tbilisi@fco.gov.uk The general consulate of Turkey: Town Batumi M. Abashidze str. N8 Tel: (+995 32) 252 072, 252 074 Fax: (+995 32) 220 666 tiflisbe@del.ge Embassy of Israel D. Aghmashenebeli avenue N61 Tel: (+995 32) 960 213, 951 709 Fax: (+995 32) 237 133, 951 709 press@tbilisi.mfa.gov.il www.ebizguides.com
Embassy of Romania Kushitashvili str. N7 Tel: (+995 32) 250 097, 250 098, 385 310 Fax: (+995 32) 385 210 ambasada@caucasus.net Embassy of the republic of Greece Razmadze str. N40 Tel: (+995 32) 94 12 24 Fax: (+995 32) 441 039 grembgo@access.sanet.ge Embassy of the republic of Armenia Tetelashvili str. N4 Tel: (+995 32) 959 443, 951 723 Fax: (+995 32) 990 126 armemd@caucasus.net
25
General Information
Embassy of Ukraine Oniashvili str. N75 Consulate : Batumi, Melikishvili N71 Tel: (+995 32) 311 161, 311 202, 311 454 Fax: (+995 32) 311 181 ukraina@access.sanet.ge Embassy of Switzerland In Caucasus Office of regional cooperation of Switzerland Krtsanisi str. N11; Radiani str. N12 Tel: (+995 32) 753 001 Fax: (+995 32) 753 006 vertretungW@tif.rep.admin.ch Embassy of Czech Republic 37 Chavchavadze Ave. Tel: (+995 32) 91 67 40/41/42 356 227, 356 704 (department of consulate) Fax: (+995 32) 356 692 czechembassy@gol.ge www.mzv.cz Embassy of People’s Republic of China Barnov str. N52 Tel: (+995 32) 252 175, 252 286 Fax: (+995 32) 252 283 yfram@access.sanet.ge St. Church Envoy’s Office Nutsubidze II plateau, Zheghenti str. N40 Tel: (+995 32) 941 305, 537 601, 537 604 Fax: (+995 32) 293 944 nuntius@access.sanet.ge Representation of Kazakhstan Shatberashvili St.N 23 Tel: (+995 32) 99 76 84 Fax: 29 24 24 dmkazaida@inbox.ru Embassy of the Republic of Lithuania Tengiz Abuladze str. N25 Tel: (+995 32) 912 933 Fax: (+995 32) 221 793 Amb.ge@urm.lt
26
Honorary consulate of the Republic of Latvia Odessa Str N4 Tel: (+995 32) 24 48 58 Fax: (+995 32) 38 14 06 embassy.georgia@mfa.gov.lv Honorary consulate of the Republic of Estonia Likhauri St. N4 Tel: (+995 32) 36 51 22 Fax: (+995 99) 45 83 99 Honorary consulate of the Republic of Austria Abashidze str. N46 a Tel: (+995 32) 250 299 Fax: (+995 32) 773 217 eva.berger@aua.com Honorary consulate of Sweden Zandukeli str. N20 Tel: (+995 32) 999 833 Fax: (+995 32) 292 106 svkonsul@access.sanet.ge Honorary consulate of the kingdom of Belgium Shanidze str. N3 Tel: (+995 32) 231 558 Fax: (+995 32) 231 558 pierr_orloff@access.sanet.ge Honorary consulate of Philippines Takaishvili str. N9 Tel: (+995 32) 224 544 Honorary consulate of Hungary Kandelaki str. N8 Tel: (+995 32) 371 057 Fax: (+995 32) 371 057 Geohung@internet.ge Honorary consulate of San-Marino Chavchavadze Avenue N39a Tel: (+995 32) 230 072, 294 130 Fax: (+995 32) 912 741 office@cartugroup.com
www.ebizguides.com
General Information
Honorary consulate of the Republic of Slovenia Mtskheta str. N9 Tel: (+995 32) 253 533 Fax: (+995 32) 20 70 07 slovenia@consul.ge
Honorary consulate of Romania Lubov St. N7 Tel: (+995 32) 38 53 10 Fax: (+995 32) 38 52 10
Honorary consulate of Mexico Tsereteli Avenue N114 Tel: (+995 32) 942 609 Fax: (+995 32) 997 915
www.ebizguides.com
27
28
www.ebizguides.com
DID YOU KNOW...?
... that Georgia is home to the highest mountains of Europe? The Georgian part of the Caucasus mountain range hosts Mt. Ushba (4,719m), Mt. Tetnuldi (4,974m) and Mt. Shkhara (5,200m). ... that out of 14 different alphabets used now globally, one is Georgian? King Parnavaz who ruled in 4-3 centuries BC, is credited for creating the first Georgian script. ... that the place where Jason, the hero of the famous Greek myth about the Argonauts who stole the Golden Fleece was Georgia? Kolkheti, the kingdom where the Argonauts travelled for their “Grand Prize” is an ancient Georgian state on the territory of the modern Georgian Black Sea coast. ...that Georgia is one of the oldest Christian nations of the world? In 337, AD King Mirian converted The Georgian nation into Christianity, which was inspired by St. Nino, one of Georgia’s most important saints. ... that the first grape wine ever to be produced is thought to have Georgian origins? Archeological research provides evidence of viticulture going back as far as seven thousand years. A Strong enough argument to come and try some of the special wines that Georgia has to offer, don’t you think! ... that George Balanchine, the famous American dancer and choreographer was born in Georgia? Giorgi Balanchivadze (his birth name), was actually part of a famous musicians’ family. His father Meliton Balanchivadze, and brother Andria Balanchivadze are among the best-known Georgian composers. ... that there is a Georgian folk song travelling through space? In 1978 an American space probe was launched into space, carrying some of the best examples of what global human heritage offers. A masterpiece of Georgian polyphonic folk singing Chakrulo is among them. …that Georgia is the world’s fourth largest producer of hazelnuts. …that the famous pop singer, song writer and composer Katie Melua is Georgian.
www.ebizguides.com
29
VOCABULARY • Georgia
საქართველო
sakartvelo
• Hello
გამარჯობა
gamarjoba
• Good morning
დილა მშვიდობისა
dila mshvidobisa
• Good evening
საღამო მშვიდობისა
saghamo mshvidobisa
• How are you?
როგორ ხარ?
rogor khar?
• I am fine and you?
კარგად, შენ?
kargad, shen?
• Where are you from?
საიდან ხართ?
saidan khart?
• I am a tourist
მე ტურიტი ვარ
me turisti var
• I am from England
მე ინგლისიდან ვარ
me inglisidan var
• Nice to meet you
სასიამოვნოა თქვენი გაცნობა
sasiamovnoa tqveni gacnoba
• Good bye
ნახვამდის
nakhvamdis
• See you later
მომავალ შეხვედრამდე
momaval shekhvedramde
• Good night
ძილი ნებისა
dzili nebisa
• Thank you
მადლობა
madloba
• You are welcome
არაფრის
arafris
• Please
გეთაყვა
getakva
• Yes
დიახ, კი
diakh, ki
• No
არა
ara
• Do you speak English?
საუბრობთ ინგლისურად?
saubrobt inglisurad?
• I do not understand
ვერ გავიგე
ver gavige
• I am sorry
ბოდიში
bodishi
• Excuse me
უკაცრავად
ukacravad
• Where is the station?
სად არის სადგური?
sad aris sadguri?
• Airport
აეროპორტი
aeroporti
• Post office
ფოსტა
posta
• Museum
მუზეუმი
muzeumi
• Bank
ბანკი
banki
• Hospital
საავადმყოფო
saavadmkofo
• Police station
პოლიცია
policia
• Embassy
საელჩო
saelcho
• Restaurant
რესტორანი
restorani
• Hotel
სასტუმრო
sastumro
• Can you help me,
please?
გეთაყვა, შეგიძლიათ დამეხმაროთ?
getakva, shegidzliat damexmarot?
• I like it
მომწონს
momtsons es
• It is nice
ლამაზია
lamazia
• It is beautiful
მშვენიერია
mshvenieria
• It is tasty
გემრიელია
gemrielia
• It is expensive
ძვირია
dzviria
• It is cheap
იაფია
iafia
• How much is it?
რა ღირს?
ra ghirs?
• Money
ფული
puli
• Can I have a bill, please?
ანგარიში მომიტანეთ, გეთაყვა
angarishi momitanet, getakva
• Wine
ღვინო
ghvino
• Georgian wine
ქართული ღვინო
kartuli ghvino
30
www.ebizguides.com
VOCABULARY • Red wine
შავი ღვინო
shavi ghvino
• White wine
თეთრი ღვინო
tetri ghvino
• Beer
ლუდი
ludi
• Blue
ლურჯი
lurji
• Green
მწვანე
mtsvane
• Whine
თეთრი
tetri
• Black
შავი
shavi
• Brown
ყავისფერი
kavisperi
• Yellow
ყვითელი
kviteli
• Red
წითელი
tsiteli
• What time is it now?
რომელი საათია?
romeli saatia?
• What day is it today?
რა დღეა დღეს?
ra dghea dghes?
• Monday
ორშაბათი
orshabati
• Tuesday
სამშაბათი
samshabati
• Wednesday
ოთხშაბათი
otkhshabati
• Thursday
ხუთშაბათი
khutshabati
• Friday
პარასკევი
paraskevi
• Saturday
შაბათი
shabati
• Sunday
კვირა
kvira
• Today
დღეს
dghes
• Yesterday
გუშინ
gushin
• Tomorrow
ხვალ
khval
• Can I have your phone number,
please?
თქვენი ტელეფონის ნომერი თუ შეიძლება
tkveni telefonis nomeri tu sheidzleba?
• May I use your phone?
შეიძლება თქვენი ტელეფონით ვისარგებლო?
sheidzleba tkveni teleponit visargeblo?
• How long does it take to get there?
რა დრო ჭირდება იქ მისვლას?
ra dro chirdeba ik misvlas?
• Why?
რატომ?
ratom?
• When?
როდის?
rodis?
• What?
რა?
ra?
• How?
როგორ?
rogor?
• How many?
რამდენი?
ramdeni?
• Who?
ვინ?
vin?
• Where?
სად?
sad?
• Where can I buy Georgian
souvenir?
სად შეიძლება შევიძინო ქართული სუვენირი?
sad sheidzleba shevidzino kartuli suveniri?
• Post card
ღია ბარათი
ghia barati
• Gift
საჩუქარი
sachukari
• Happy Birthday!
გილოცავ(თ) დაბადების დღეს!
gilocav(t) dabadebis dghes!
• Congratulations!
გილოცავ(თ)!
gilocav(t)!
www.ebizguides.com
31
32
www.ebizguides.com
TOP COMPANIES AND INSTITUTIONS
04 05 06 07 08 09 10 11 12 13
Business Resources and Institutions American Chamber of Commerce Business Federation Chamber of Commerce and Industry of Adjara A.R. EBRD Georgian Chamber of Commerce and Industry Georgian National Investment Agency IFC IMF International Chamber of Commerce Millennium Challenge Georgia Minister of economic Development of Georgia State Department for Statistics of Georgia World Bank Office
14 15 16 17 18
Agriculture Caucasus AgroDevelopment Farmer’s Union of Georgia Georgian Rural Development Fund Ministry of Agriculture of Georgia Samtrest (vine and wine department)
01 02 03
27 28
Energy BP-Georgia EnergoPro Georgian National Electricity Regulatory Commission Georgian Oil and Gas Company (GOGC) Georgian State Electrosystem Georgian Wholesale Electricity Market Ministry of Energy of Georgia Socar Georgia The Georgian State Agency for Regulation of Oil and Gas Resources Wissol
29 30 31 32 33 34 35
Finance Aldagi-BCI Insurance Company Bank of Georgia Bank Republic – Societe Generale Group HSBC National Bank of Georgia Procredit Bank TBC Bank
36 37 38 39 40 41
Information and Communication Technology Caucasus Online Geocell Magticom Mobitel (beeline) Silknet UGT
19 20 21 22 23 24 25 26
www.ebizguides.com
42 43 44 45 46 47 48 49 50 51 52 53 54 55
Industry and Trade Batoili Georgian Glass and Mineral Water (Borjomi) GIG (Georgian Industrial Group) Healthy Water (Nabeglavi) Kazbegi Kindzmarauli Marani Knauf Kutaisi FIZ Madneuli Natakhtari Brewery Poti FIZ (RAKIA) Stemcor Tbilisi Aircraft Manufacturers (TAM) Teliani Valley
56 57 58 59 60 61 62
Public Services Caucasus Business School International Black Sea University Ivane Javakishvili Tbilisi State University Ministry of Education Ministry of Health and Labor Ministry of Internal Affairs Tbilisi City Hall
63 64 65 66 67
Transportation Batumi Port Georgian Airways Georgian Railway Poti Port TAV
68 69 70 71 72 73 74
Real Estate and Construction Abu Dhabi Group Aword Axis Centre Point Development Solutions LLC Magi Style Rakeen Development
Tourism Industry 75 Bakuriani ski resort 76 Department for Tourism and Resorts of Georgia 77 Department of Tourism and Resorts of Adjara Autonomous Republic 78 Georgian Incoming Tour Operators Association 79 Gudauri ski resort 80 M|group
33
34
BUSINESS RESOURCES
35
Business Resources ADVERTISING AGENCIES Advertising Group
General Manager: Dimitry Avetisov 14 Mosashvili Str. Tbilisi Tel: (+995 32) 223 808, 553 808 Mob: (+995 93) 286 386 PR OFFICE GE Director: Natalia Zueva 32a Paliashvili Str. Tbilisi Tel: (+995 90) 50 1997 Mob: (+995 74) 50 1997
Azerbaijan Airlines
33a Chavchavadze Ave., 1st lane, Tbilisi Tel: (+995 32) 25 16 69 www.azal.az
Caucasus Airlines
Regional Airlines Address: 32, Saburtalo str., Tbilisi Tel: (+995 32) 25 30 58 Fax: (+995 32) 25 30 59 sra@access.sanet.ge www.caucasusairlines.ge
Belavia
95 Agmashenebeli Ave., Tbilisi Tel: (+995 32) 95 68 90 www.belavia.ge
BMI New Georgia Poligraphy 40 Rustaveli Avenue, Tbilisi Tel: (+995 32) 999831 Mob: (+995 77) 449708 ltd.ngp@gmail.com www.vistasystem.com
AIRLINES Aerosvit
12 Ingorokva St. Tel: (+995 32) 92 18 00/92 36 22 www.contact.ge
4 Freedom Sq., Tbilisi Tel : (+995 32) 94 07 19/20 www.fl ybmi.com
Czech Airlines
50 Chavchavadze Ave., Tbilisi Tel: (+995 32) 22 29 41 www.czechairlines.com
German airlines
34.Rustaveli Ave., Tbilisi Tel: (+995 32) 93 18 36 www.gexx.de
Georgian Air Gate
Helicopter services Address: 7, Davitashvili str., Airport, Tbilisi 0158 Tel: (+995 32) 50 61 00 info@airtusheti.ge www.airtusheti.ge
Ground Services Address: Tbilisi International Airport, 0158 Tbilisi Mobile: (+995 99) 57 83 31 Fax: (+995 32) 94 71 61; 27 82 78 office@afsgh.com.ge | afs@ti.net.ge www.afsgh.com.ge
Airzena Georgian Airways
Ground Handling company TBS Ltd.
12 Rustaveli Ave Tel: (+995 32) 99 97 30; 48 55 77; 48 55 60 Fax: (+995 32) 99 96 60 info@georgian-airways.com | marketing@airzena.com www.airzena.com
Full ground handling in all airports of Georgia Tbilisi International Airport, 0158 Tbilisi Mobile: (+995 99) 56 26 77 Fax: (+995 32) 94 78 81 zosimov-tbs@tbshc.com.ge www.tbshc.com.ge
Austrian
Lasare Ltd.
Air Company Tusheti
20 Telavi St., Tbilisi Tel: (+995 32) 77 45 06/ 77 45 10/ 77 45 17 www.aua.com
36
Air Cargo Handling Company Tbilisi Airport, Cargo Terminal Tel: (+995 32) 94 74 31; 94 72 28; 94 71 25 Fax: (+995 32) 94 73 94; 95 32 97 office@lasare.ge www.lasare.ge
www.ebizguides.com
Business Resources SakAviaService - Georgian Airlines
Air Company 4, Machabeli str., Tbilisi 0105 Airport, Tbilisi 0158, Georgia Tel: (+995 32) 99 02 37; 98 30 59; 92 18 31 Fax: (+995 32) 92 18 31 sakavia@dsl.ge
Sky Georgia
1 Kekelidze St., Tbilisi Tel: (+995 32) 22 18 07/895 33 22 22 www.national-avia.com
Silk Way Georgia
28 Chavchavadze Ave., Tbilisi Tel: (+995 32) 55 07 86 www.azal.az
Lufthansa
15 Paliashvili St., Tbilisi Tel: (+995 32) 24 33 24 www.lufthansa.com
Fax: (995 32) 226792 amcham@amcham.ge www.amcham.ge
German Business Association (DWVG) Mtskheta Street, 28 0179, Tbilisi Tel: (+995 32) 205767 Fax: (+995 32) 205767 110 info@dwvg.ge www.dwvg.ge
GCC-Georgian Chamber of Commerce and Industry Berdznis str. 29, Tbilisi Tel: (+995 32) 72 07 10 Fax: (+995 32)72 31 90 info@gcci.ge www.gcci.ge
GNIA-Georgian National Investment Agency
37/1 Rustaveli Ave., Tbilisi Tel: (+995 32) 92 39 27/92 00 21 www.S7.ru
12 Chanturia str. 0108 Tbilisi Tel/Fax: +995 32 433 433 Tel: (+995 32) 106 394/106 391 info@investingeorgia.org www.investingeorgia.org
Turkish Airlines
ICC-International Chamber of Commerce
S7. Airlines
147 Agmashenebeli Ave., Tbilisi Tel: (+995 32) 95 90 22/94 07 03 www.thy.com
Ukraine International Airlines 3 Ia Ekaladze St., Tbilisi Tel: (+995 32) 98 88 42 www.flyuia.com
ASSOCIATIONS AND ORGANISATIONS Adjarian Chamber of Commerce and Industry (ACCI) 26 Melashvili St., Batumi, 6010 Tel: (+995 222) 7-28-41 Fax: (+995 222) 7-28-42 cci@ajcci.ge www.ajcci.ge
AmCham-American Chamber of Commerce in Georgia
10 Melikishvili Ave. 0179, Tbilisi (same as 3/5 Kazbegi St., Bank of Georgia Business Center) Tel: (995 32) 226907 www.ebizguides.com
1 Nutsubidze St., 0177, Tbilisi Tel: (+995 32) 39 90 88 Fax: (+995 32) 39 99 37 icc@icc.ge www.icc.ge
BANKS Bank Republic – Société Générale Group (Head Office and Central branch) 2 Abashidze St., Tbilisi Tel: (+995 32) 92 55 55 www.republic.ge
Bank of Georgia
Joint-Stock Company 3, Aleksandr Pushkin str., Tbilisi 380007 Tel: (+995 32) 98 32 59 Fax: (+995 32) 93 32 62 welcome@bankofgeorgia.com.ge www.bankofgeorgia.com.ge
Basisbank (Head Office)
41 Chavchavadze Ave., Tbilisi Tel: (+995 32) 92 29 22 www.basisbank.ge
37
Business Resources BTA Bank (Head Office) 73a Tsereteli Ave., Tbilisi Tel: (+995 32) 24 22 42
Cartu Bank (Head Office)
39a Chavchavadze Ave., Tbilisi Tel: (+995 32) 92 5592/91/90 www.cartubank.ge
TaoPrivatBank (Head Office)
114 Tsereteli Ave., Tbilisi Tel: (+995 32) 55 55 55 www.tpbank.ge
First British Bank
TBC Bank
1 Vertskhli St., Tbilisi Tel: (+995 32) 995 995 www.fbb.ge
Joint-Stock Company 11, Ilia Chavchavadze Ave., Tbilisi 0179 Tel: (+995 32) 22 06 61; 29 16 93 Fax: (+995 32) 22 04 06 vake@tbcbank.com.ge www.tbcbank.com.ge
Halyk Bank Georgia
41 Bakhtrioni St., Tbilisi Tel: (+995 32) 24 07 07/ 36 75 36
HSBC Bank Georgia 15 Rustaveli Ave., Tbilisi Tel: (+995 32) 17 77 77 www.hsbc.ge
Investbank (Head Office) 3 Lesia Ukrainka St., Tbilisi Tel: (+995 32) 92 37 80 www.investbank.ge
Konstanta
117 Tsereteli Ave., Tbilisi Tel: (+995 32) 401 401
Kor Standard Bank (Head Office)
43 Chavchavadze Ave., Tbilisi Tel: (+995 32) 50 77 00 www.korstandardbank.com
VTB Bank Georgia (Head Office) 37 Uznadze St., Tbilisi Tel: (+995 32) 505 505 www.vtb.com.ge
Ziraat Bank
148 Agmashenebeli St., Tbilisi Tel: (+995 32) 94 37 04 www.ziraatbank.com.tr
CAR RENTAL Alliance Auto Assistance
National Bank of Georgia 3/5 Leonidze St., Tbilisi Tel: (+995 32) 44 25 44 www.nbg.gov.ge
1 Kvaloni St., Tbilisi Tel: (+995 32) 92 34 56 www.aaa.ge Auto Rent Georgia 118 Tsereteli Ave., Tbilisi Tel: (+995 32) 35 72 72 www.autorent.ge
People’s Bank (Head Office)
Avis
Progress Bank
Concord Motors
74 Chavchavadze Ave., Tbilisi Tel: (+995 32) 55 55 00 www.peoplesbank.ge
8 Baratashvili St., Tbilisi Tel: (+995 32) 38 88 88 www.progressbank.ge
ProCredit Bank (Head Office) 154 Agmashenebeli Ave., Tbilisi Tel: (+995 32) 20 22 22 www.procreditbank.ge
38
4 Freedom Sq. 0105, Tbilisi Tel: (+995 32) 92 35 94 Fax: (+995 32) 92 35 94
Car Rent, Car Service in Tbilisi 82, Barnov str., Tbilisi Tel: (+995 32) 22 09 60 Fax: (+995 32) 51 73 69 info@concordmotors.ge www.concordmotors.ge
www.ebizguides.com
Business Resources Jeep Rent
AG Shipping & Chartering Co. Ltd
Magic Service Georgia MSG+
Ahlers Georgia
5 Marjanishvili St., Tbilisi Tel: (+995 32) 895 50 11 80
40 Kostava St., Tbilisi Tel: (+995 32) 47 00 47/899 41 63 13 www.carrental.ge www.msgplus.ge
Ship Management, Shipbrokers, Chartering 14, Asatiani str., Saburtalo District, Tbilisi Tel: (+995 32) 21 18 38 Fax: (+995 32) 21 18 38 shipping@ag-holdings.co.uk www.ag-holdings.co.uk
Ahlers Logistic and Maritime Services Office in Tbilisi 18, Oniashvili str., Tbilisi 0160 Tel: (+995 32) 38 72 35 Fax: (+995 32) 38 72 35 rom@tbilisi.ahlers.com www.ahlers.com
Allseas Maritime Limited
Shipping Company 25a, Mitskevich str., Tbilisi Tel: (+995 32) 37 16 71 Fax: (+995 32) 38 91 47 ops@allseas.ge | info@allseas.ge
Anlex Logistics Ltd.
Marikoni
11 Leonidze St., Tbilisi Tel: (+995 32) 99 96 77 www.marikoni.ge
S&N.co Ltd
3 L. Ukrainka St., Tbilisi Tel: (+995 32) 42 32 54 www.snmotors.ge
Via Georgia
13 Petersburg St., Tbilisi Tel: (+995 32) 877 71 55 44 www.via.ge
CARGO & SHIPPING ABE Logistics Ltd.
Transportaion & Logistics 11, Mosashvili str., 5th floor, Tbilisi 0162 Tel: (+995 32) 91 46 03; 91 46 04 Fax: (+995 32) 91 46 05 info@abelogistics.ge www.abelogistics.ge
www.ebizguides.com
International Forwarder 12a, Kazbegi ave., Tbilisi 380060 Tel: (+995 32) 33 44 92; 33 44 32 Fax: (+995 32) 33 44 32 forward@access.sanet.ge www.anlex.ge
Bax Global Transcaucasus
Shipment and Forwarding 31, Aleksandre Kazbegi ave., Tbilisi 380077 Tel: (+995 32) 33 91 61; 39 79 32 Fax: (+995 32) 33 91 61 baxglobal@geo.net.ge www.baxglobal.com
Cargo Logistics Group Georgia Ltd. Freight-forwarding services company 9, Vazha Pshavela ave. Tbilisi 0161 Tel: (+995 32) 20 52 05 Fax: (+995 32) 37 25 71 info@clg.ge www.clg.ge
Catoni & Co. Georgia
Maritime agency, freight forwarding, logistics, worldwide container transportation 3, Lessia Ukrainka str., apt. 8, Tbilisi Tel: (+995 32) 98 92 30; 92 26 22 Fax: (+995 32) 92 22 64 tamunam@catoni.com.ge www.catoni.com.tr
39
Business Resources CaucasusTransExpress Ltd.
Geomar Co. Ltd.
DS travel
Ground Handling company TBS Ltd.
Eurasia Cargo Ltd.
GTS Trans
Transportation & Logistics 10A, Tashkenti str., Tbilisi Tel: (+995 32) 37 57 15; 37 57 16; 37 57 17 Fax: (+995 32) 37 07 09; 37 09 07 manager@cte.com.ge www.cte.ge
Transportation & travel company 1, Gulia str., Tbilisi Tel: (+995 32) 75 30 56 Fax: (+995 32) 75 36 09 dstravel@posta.ge www.dstravel.ge
Airfreight company 41, Vazha Pshavela ave., Tbilisi Tel: (+995 32) 53 62 57 Fax: (+995 32) 39 89 00 eurasiacargo@telenet.ge
Euroasian Express Ltd.
Freight forwarding and logistics company 108, Paliashvili str., Tbilisi 0162 Tel: (+995 32) 25 33 94/95/96/97/98 Fax: (+995 32) 25 33 92 office@euroasian.ge www.euroasian.ge
Maritime Consultants & Surveyors 32/13, Gogebashvili str., Batumi Tel: (+995 222) 76201 Fax: (+995 222) 76202 info@geomar.ge www.geomar.ge
Ground handling service in all airports of Georgia Tbilisi International Airport, 0158 Tbilisi Mobile: (+995 99) 56 26 77 Fax: (+995 32) 94 78 81 zosimov-tbs@tbshc.com.ge | opstbs@caucasus.net www.tbshc.com.ge
Freight forwarding and logistics company 19, Gamrekeli str. (former Kutuzov str.), Tbilisi Tel: (+995 32) 24 25 25; 24 25 26 Fax: (+995 32) 38 05 18 gtstrans@caucasus.net | salesgtstrans@caucasus.net www.gtstrans.ge
G&M Logistic Co. Ltd.
Shipping Agency & Transport Services 32/13, Gogebashvili str., Batumi Tel: (+995 222) 76201 Fax: (+995 222) 76202 gml@gol.ge www.mondial-logistic.de
World Ex Ltd.
International Freight Forwarder 11, Kostava 1st Lane, Tbilisi 0179 Tel: (+995 32) 92 29 75; 92 29 61 Fax: (+995 32) 92 29 61 sales@worldex-co.com
CATERERS m|catering FH Bertling Georgia
Transportation & Logistics 123, Agmashenebeli ave., Tbilisi Tel: (+995 32) 94 13 82 Fax: (+995 32) 25 20 59 b.ewing@bertlingcaspian.com www.bertling.com
40
”Hotels and Restaurants Management Group – m|group” JSC 2 Marshal Gelovani Ave., Tbilisi, 0159 Tel: (+995 32) 38 88 00/44 Fax: (+995 32) 38 88 89 info@mgroup.ge www.mgroup.ge Provides full gourmet and high quality catering services to individual customers as well as to major companies both within and outside Tbilisi.
www.ebizguides.com
Business Resources CONFERENCE & EVENTS ORGANISERS AND FACILITIES Tbilisi Conference Hall
Organises all kinds of Events, Conferences, Concerts etc 1, Meliqishvilii Str., Tbilisi Tel.: + (995 32) 99 05 99 Fax: + (995 32) 987 681 eastern@caucasus.net www.tbilisiconcerthall.com Contact Person: Irakli ShengeliaDirector
CONSULTANTS, PROFFESIONAL & LEGAL SERVICES BLC
Professional Legal Services 4 Gudiashvili Square, Tbilisi 0105 Tel: (+995 32) 92 24 91 Fax: (+995 32) 93 45 26 www.blc.ge
Booz | Allen | Hamilton
Business Centre Mantashevi, Tbilisi Tel: (+995 32) 43 90 72 www.boozallen.com
DLA Piper Georgia LP 10 Melikishvili Str, Tbilisi Tel: +995 32 50 93 00 Fax: +995 32 50 93 01 www.dlapiper.com
Ernst & Young LLC
One of the many international conferences organised in the capital city of Georgia
Kote Abkhazi Str, 44, Tbilisi 0105 Tel: (+995 32) 43 93 75 Fax: (+995 32) 43 93 76 www.ey.com/georgia
Georgian Audit & Consulting Company Eva Group LLC Company
Event management and advertising company Eva Group LLC 44, Kote Abkhazi str., (former Leselidze str.), Tbilisi 0105 Tel: (+995 32) 43 93 99 Fax: (+995 32) 50 99 02 office@evagroup.ge | eva@evagroup.ge Contact Person: Tsitsi Iashvili / PR Manager
GIS, Georgian Integrated Systems Ltd.
Conference, presentation, audio and video solutions 37, Saburtalo str., Office 23, Tbilisi Tel: (+995 32) 45 38 38 Mobile: (+995 99) 55 25 98 Fax: (+995 32) 91 63 91 info@gis.ge www.gis.ge Contact Person: Mr. Nikoloz Kobakhidze / Director
www.ebizguides.com
Address: 47 Kostava Str., 0179 Tbilisi Phone: (995 32) 98 40 39 Fax: (995 32) 43 83 55 www.gacc.com.ge
Gvinadze & Partners LLC
44 Leselidze Street, 0105 Tbilisi Tel: +995 32 438 970 Fax: +995 32 438 971 n.gvinadze@gvinadzeandpartners.ge www.gvinadzeandpartners.ge
TBSC Consulting
6, Marjanishvili St., Green Building, II Floor, Tbilisi Tel: +995 32 95-90-19 Fax: +995 32 42-02-15 info@tbsc.ge www.TBSC.ge
41
Business Resources COURIERS DHL
105 Tsereteli Ave., Tbilisi Tel: (+995 32) 69 60 60 www.dhl.com
Georgian Post
2 Vagzali Sq., Tbilisi Tel: (+995 32) 34 06 61/ 35 56 65 www.georgianpost.ge
EMS
44 Agmashenebeli Ave., Tbilisi Tel: (+995 32) 94 25 53/94 37 97 www.ems.ge
FedEx
39 Ketevan Tsamebuli Ave., Tbilisi Tel: (+995 32) 74 82 40/ 44 www.fedex.com
Georgia Express
22 Metekhi St., Tbilisi Tel: (+995 32) 27 33 11 www.georgia-express.ge
42
Georgian Post Office
Intertrans
31 Atoneli St., Tbilisi Tel: (+995 32) 92 39 23 www.intertrans.ge
www.ebizguides.com
Business Resources TNT
15 Agmashenebeli Ave., Tbilisi Tel: (+995 32) 91 02 20 www.tnt.com
UPS
47 Kostava St., Tbilisi Tel: (+995 32) 92 03 44/92 04 83/75 www.meridian-express.com
DENTAL SERVICES Denta Plus
38, Vazha-Pshavela ave., Tbilisi Tel: (+995 32) 39 54 06 Fax: (+995 32) 53 69 53 dentaplus@caucasus.net www.dentaplus.ge
Keramico
89/24 Aghmashebeli Ave., Tbilisi Tel: (+995 32) 91 03 78/95 10 99 www.keramiko.ge
LifeDent
DOCTORS/HOSPITALS Caraps Medline
5 Chavchavadze Ave., Tbilisi Tel: (+995 32) 91 70 32/31 www.carapsmedline.ge
D. Tatishvili Medical Centre 20 Abuladze T. St., Tbilisi Tel: (+995 32) 91 31 19/25 39 38
Esteline
63 Kostava St., Tbilisi Tel: (+995 32) 21 23 12 www.gvaramia.com
Family Doctor
18 Samtredia St., Tbilisi Tel: (+995 32) 32 22 97 www.familydoctor.ge
Georgian Diabetes Center 1 Chachava St., Tbilisi Tel: (+995 32) 52 79 16 www.diabet.ge
Dental Clinic 22, Purtseladze str., Tbilisi Tel: (+995 32) 98 57 78 lifedenti@yahoo.com
Gia Gvaramia Aesthetical Medicine Centre
UniDent-Ross Ltd.
Ginn - Iv. Kuzanov Clinic
Dental Clinic 126, Davit Aghmashenebeli ave. / 2, Krilov str., Tbilisi 380002 Tel: (+995 32) 96 71 26; 94 03 94/96 02 92 Fax: (+995 32) 95 27 89 info@unident-ross.com www.unident-ross.com
Vivadent
11 Z. Chavchavadze St., Tbilisi Tel: (+995 32) 95 28 78
63 Kostava St., Tbilisi Tel: (+995 32) 21 23 12 www.gvaramia.com
5 Pekini St., Tbilisi Tel: (+995 32) 42 40 05 www.kuzanov.com
Hairline International 16 Kavtaradze St., Tbilisi Tel: (+995 32) 30 00 30
IMSS – International Medical Support Services 31 Makashvili St., Tbilisi Tel: (+995 32) 92 16 70 www.imss.ge
Inter Clinic
30 Paliashvili St., Tbilisi Tel: (+995 32) 91 34 83/899 50 40 78
Medi Club Georgia
5 Chavchavadze Ave., Tbilisi Tel: (+995 32) 25 19 91/25 09 11 www.mcg.com.ge Modern high-tech medical facilities being introduced
www.ebizguides.com
43
Business Resources
Medical Diagnosis Center
Wizard Events
14 Gotua St., Tbilisi Tel: (+995 32) 37 11 39
1, Meliqishvilii Str., Philamonic Building, Tbilisi Tel/Fax: (+995 32) 98 39 41 ishengelia@wizard.ge wizardevents.ge
Medical Health House 9 Tsinandali St., Tbilisi Tel: (+995 32) 77 19 06/07 www.healthhouse.ge
O. Ghudushauri National Medical Centre 18/20 Lubliana St., Tbilisi Tel: (+995 32) 52 98 69/53 11 70
DRY CLEANERS Aragvi – Italian Dry-Cleaning 6 Bulachauri St., Tbilisi Tel: (+995 32) 37 90 40
Dry Cleaning
33 Chavchavadze Ave., Tbilisi Tel: (+995 32) 91 53 07
French Dry-Cleaning 6 Shartava St., Tbilisi Tel: (+995 32) 38 97 16
Tsisartkela
29b Kazbegi Ave., Tbilisi Tel: (+995 32)39 72 53
Vake - Dry-Cleaning
56 Chavchavadze Ave., Tbilisi Tel: (+995 32) 25 16 96
Laundry
3 Janashia St., Tbilisi Tel: (+995 32) 29 14 46
EVENTS MANAGEMENT Eastern Promotion
Michael Giorgadze- General Director 1, Meliqishvilii Str., 0179 Tbilisi Tel: (+995 32) 99 05 99 Fax: (+995 32) 98 32 28 / 98 76 81 eastern@caucasus.net www.easternpromotion.com
44
HAIR & BEAUTY V&M Beauty Salon
2 Napareuli Str., Tbilisi Tel: (+995 32) 72 50 00
ICI Paris-Beauty Salon
78 Chavchavadze Ave, Tbilisi Tel: (+995 32) 25 30 91
Natali
6 Melikishvili Ave, Tbilisi Tel: (+995 32) 93 89 16
HEALTH & FITNESS CLUBS Gamsakhurdia Tennis Courts 2, Sanapiro St., Tbilisi Tel: (+995 32) 99 59 05; 98 25 54
Georgian Tennis Courts
18/20 Lubliana St., Tbilisi Tel: (+995 32) 54 00 77, 54 00 39
Laguna Vere
34 Kostava 1st lane, Tbilisi Tel: (+995 32) 99 82 31
Leila Meskhi Tennis Academy 29, Marjanishvili St., Tbilisi Tel: (+995 32) 95 38 00
Neptun
49a Chavchavadze Ave., Tbilisi Tel: (+995 32) 25 04 86
Prime Fitness
78 Chavchavadze Ave., Tbilisi Tel: (+995 32) 22 56 26
Prima Vera
8 Kuchishvili St., Tbilisi Tel: (+995 32) 25 11 46
www.ebizguides.com
Business Resources
Vake Pool and Fitness Club 49b Chavchavadze Ave., Tbilisi Tel: (+995 32) 25 25 75 vakefitness.ge
Zeevs
9 Mtskheta Str., Tbilisi Tel: (995) 32 232893 www.zeevs.ge For regular yoga classes and specialised beauty treatments
SULPHER BATH HOUSES COLOURFUL BATHS 2 Grishashvili St., Tbilisi Tel: (995 32) 75 40 83
ROYAL BATHS
1 Grishashvili St., Tbilisi Tel: (995 32) 72 10 66
HOTELS
Find more information in the entertainment section
INSURANCE PROVIDERS AIG Georgia
Insurance Company Address: 7, Bambis Rigi str., Tbilisi 0105 Tel: (+995 32) 43 90 25 Fax: (+995 32) 43 90 25 www.aig.com
Imedi L
Georgian - International Insurance Company Head Office: 20, Ilia Chavchavadze ave., Tbilisi 380079 Tel: (+995 32) 25 00 88; 25 11 88; 22 35 20 Fax: (+995 32) 29 30 75 imedi-l@imedi-l.com www.imedi-l.com.ge
International Insurance Company “IRAO” All types of Insurance Services 37d, Chavchavadze ave., Tbilisi 0162 Tel: (+995 32) 94 91 11; 42 09 40 Fax: (+995 32) 91 22 98 office@irao.ge www.irao.ge
JS Insurance Company Aldagi BCI Insurance Company 16, Melikishvili ave., Tbilisi 0179 Tel: (+995 32) 44 48 08 Fax: (+995 32) 29 49 05 aldagibci@aldagibci.ge www.aldagibci.ge
Thames Insurance Group
Insurance Company 32, Paliashvili str., Tbilisi 0179 Tel: (+995 32) 25 03 51/52/53 Fax: (+995 32) 25 03 50 post@agic.com.ge | post@tig.ge www.agic.com.ge
LANGUAGE SCHOOLS Avelum
7 Left Bank St., Tbilisi Tel: (+995 32) 899 10 74 08 www.avelum.dsl.ge Georgia’s sulphur baths are well known throughout the region for their healing properties
www.ebizguides.com
45
Business Resources Lingua House
25 Abashidze St., Tbilisi Tel: (+995 32) 91 37 85 www.linguahouse.ge
lish-language press for information on news and current events and therefore ensures that their local and international editorial staff provides a well-balanced coverage for its diverse readership. Their main subscribers include international organizations, embassies, NGOs, airlines, top quality hotels, businesses, government institutions, universities and higher education establishments.
Georgian Business Week
Newspaper, issued on Mondays 10, Lermontov str., Tbilisi Mobile: (+995 99) 96 52 52 Fax: (+995 32) 99 96 62 zviadi@sky.ge www.b2b.ge
Financial Georgian alphabet is one of the few existing in the modern world
Elite Rapid Courses
12 Kavtaradze St., Tbilisi Tel: (+995 32) 30 39 20 www.elite-rc.com
Language School
9 Antonovskaya Street, Suite 76, Tbilisi Tel: (+995 32) 39 79 73/8 77 45 43 32 www.lsgeorgia.com
MEDIA Georgia Today
George Sharashidze Publisher and GM 9 Nato Vachnadze Str. Tbilisi 0105 Tel: (+995 32) 92 08 30/31/31 Fax: (+995 32) 92 08 82 info@georgiatoday.ge www.georgiatoday.ge Georgia Today is Georgia’s leading independent English-language newspaper, published weekly since 2000. Georgia Today is distributed throughout Georgia and internationally, and has an office on the East Coast USA. With the largest distribution area and the highest quality of printing and layout, they pride themselves on Georgia Today’s reliability, professionalism and constant striving for improvement. Georgia Today aims to create the most comprehensive, objective, and unbiased information about contemporary Georgia and spread it throughout the region. It recognizes that every international worker or visitor to Georgia relies almost solely on the Eng-
46
17 Mtzkheta Str., Tbilisi 0179 Tel: (+995 32) 252 275 Fax: (+995 32) 252 276 www.finchannel.com
Focus Magazine
Magazine 2, Marshal Gelovani ave., Tbilisi 0159 Tel: (+995 32) 31 32 45/46/47/48 Fax: (+995 32) 31 32 49 focus@focusmagazine.ge www.focusmagazine.ge
The Messenger
28 Barnov Street, Tbilisi Tel: (+995 32) 939169; 990645; Fax: (+995 32) 936232 www.messenger.com.ge
PHARMACIES Aversi (Head Office)
148/2 Agmashenebeli Ave., Tbilisi Tel: (+995 32) 98 78 60, 99 79 70 www.aversi.ge
Gea (Head Office)
6 Vaja-Pshavela Ave., Tbilisi Tel: (+995 32) 99 57 19, 38 47 66 www.gea.ge
www.ebizguides.com
Business Resources GPC (Head Office)
6 Sanapiro St., Tbilisi Tel: (+995 32) 95 28 02, 95 60 48
PSP (Head Office)
148 Agmashenebeli Ave., Tbilisi Tel: (+995 32) 185 111
Sakhalkho (Public)
6 Bakradze St., Tbilisi Tel: (+995 32) 35 58 04, 34 16 09 www.publicpharmacy.ge
PHOTO SERVICES Caucasus Press Images
News Photo Agency 36, Rustaveli ave., Tbilisi 0108 Tel: (+995 32) 92 03 30 Fax: (+995 32) 92 03 30 alexanderklimchuk@yahoo.com www.caucasus-images.com Working days and hours: Every day / 11:00AM - 10:00PM
Eye of Georgia Boutique-Mariana Makrakhidze
News Photo Agency 18, Lermontov str., Tbilisi 380008 Tel: (+995 32) 92 25 04 Fax: (+995 32) 92 25 04 E-mail to Agency: eyegeo@caucasus.net E-mail to Editor: photo@photonews.ge www.photonews.ge
Focus Ltd.
104, David Aghmashenebeli ave., Tbilisi 380002 Tel: (+995 32) 95 77 33
Frameburg Ltd.
Photo-House 45, Vazha Pshavela ave., Tbilisi 380077 Tel: (+995 32) 92 12 17 Fax: (+995 32) 92 12 17 frameburg@ti.net.ge
Photographer Keti Mghebrishvili
Fashion conscious Georgia’s create an ever growing demand for top designer and trendy fashion shops
www.ebizguides.com
Photo service, Journalism, Photojournalism 2, Sulkhan-Saba str., Tbilisi Tel: (+995 32) 23 30 94 Mobile: (+995 93) 39 21 86 katephotoart@narod.ru www.katephotoart.narod.ru Working days and hours: Monday-Friday / 10:00AM - 05:00PM
47
Business Resources TDI Ltd. (Kodak-express)
24, Shota Rustaveli ave., Tbilisi 380008 Tel: (+995 32) 99 72 20
BIFess
REAL ESTATE
Supermarket 86/90, Davit Aghmashenebeli ave., Tbilisi 0103 Tel: (+995 32) 94 02 10; 94 22 08 Fax: (+995 32) 94 00 99; 94 33 36 bifess@mail.ru
AWORD
Big-Ben
Investment Company Address: 19/21, Mtskheta str., Tbilisi 0179 Tel: (+995 32) 25 18 63 Fax: (+995 32) 25 18 64 aword@aword.ge www.aword.ge
Center Point Group
Real Estate Development Company 66, A. Chavchavadze ave., Tbilisi 0162 Tel: (+995 32) 25 32 16; 25 32 17 info@centerpoint.ge www.centerpoint.ge
Georgian Reconstruction & Development Company NV (GRDC) Real Estate Company 18/5, Uznadze str., Tbilisi 0102 Tel: (+995 32) 91 06 76 Fax: (+995 32) 96 47 66 info@grdc.ge www.grdc.ge
Rakeen Development LLC 20 Telavi Street, Tbilisi 0103 Tel: (+995 32) 277373 Fax:(+995 32) 277373 rakeen.ge
Supermarket 52, Ilia Chavchavadze ave., Tbilisi 380079 Tel: (+995 32) 22 76 99; 25 04 05; 25 10 76 Fax: (+995 32) 22 76 99 kankans@global-erty.net
Goodwill
Hypermarket 1, Pharnavazi Mepe ave., Tbilisi 0103 Tel: (+995 32) 53 88 11 Fax: (+995 32) 59 49 97 info@goodwill.ge
Populi
Chain of supermarkets: 41, Gorgasali str., Tbilisi Digomi massif, II quarter, building 5 b, Tbilisi 10, Petritsi str., Tbilisi 1, Bulachari str., Tbilisi Tel: (+995 32) 38 07 81 16, Paliashvili str., Tbilisi Mobile: (+995 99) 18 37 67 (Nino / Administrator) 67, Vazha-Pshavela ave., Tbilisi Mobile: (+995 99) 20 36 65 (Maia / Administrator) 13, Kazbegi str., Tbilisi Mobile: (+995 93) 64 22 83 (Nino / Administrator) Fax: (+995 32) 70 37 59 info@populi.ge www.populi.ge
RESTAURANTS Find more information in the entertainment section
SHOPPING CENTRES & SUPERMARKETS Baden-Baden
Supermarket 90, Davit Aghmashenebeli ave., Tbilisi 380002 Tel: (+995 32) 94 22 08, 94 02 10 Fax: (+995 32) 94 33 36
Fully stocked supermarkets and local grocery stores can be found all over the city
48
www.ebizguides.com
Business Resources Schwabe
Supermarket 28, Petriashvili str., Tbilisi Tel: (+995 32) 29 38 77 Fax: (+995 32) 65 33 33 Schwabe28@mail.ru
Unicor
Auto Lux
Kalaubani St. and Tsulukidze St. Cross, Tbilisi Tel: (+995 32) 201 201
NBO
44 Kazbegi Ave., Tbilisi Tel: (+995 32) 91 06 07
Supermarket 28, Vazha-Pshavela ave., Tbilisi Tel: (+995 32) 94 28 81 m_zaza@mail.ru
Nissan Taxi
Zemel
45 Vaja-Pshavela Ave., Tbilisi Tel: 377 877
Supermarket 37, Shota Rustaveli ave., Tbilisi 380008 Tel: (+995 32) 99 83 93 Fax: (+995 32) 99 77 51
TAXIS Airport Transfer Service
17 Kostava St., Tbilisi Tel: (+995 32) 98 99 77 /18 22 44 / 899 33 33 53 www.airport-transfer.ge
7 Gudauta St., Tbilisi Tel: 200 200
Omega Taxi
Specservice 008
31 Rustaveli Ave., Tbilisi
Taxi 09
5 Jikia St., Tbilisi
Taxi for 3 GEL
2 Gafrindauli St., Tbilisi Tel: (+995 32) 91 14 14
Toyota
Agmashenebeli Alley 20th km. Tbilisi
Taxis are found in abundance throughout Tbilisi and other major cities
www.ebizguides.com
49
Business Resources TELECOM
Translation Bureau “IG”
14 Rustaveli Ave., Tbilisi Tel: (+995 32) 20 06 11 www.beeline.ge
Translation of various kind of documents and other papers 31, Saburtalo str., Tbilisi 0191 Tel: (+995 32) 38 83 47 ira_geotvr@yahoo.com
Geocell (Head Office)
Translation Bureau “Imedi”
Beeline (Head Office)
3 Gotua St., Tbilisi Tel: (+995 32) 77 01 00/ 77 01 77 www.geocell.com.ge
Magti (head Office)
5 Jikia St., Tbilisi Tel: (+995 32) 25 00 00/ 32 18 81 www.magtigsm.com
Translation Services 41, Vasha-Pshavela ave., Tbilisi 380007 Tel: (+995 32) 39 30 58 teacom@rambler.ru
Tranlsations Online
TRANSLATION SERVICES
Translation Services - Georgian/English/Russian 7a, Milorava str., Tbilisi Tel: +1 206 424 40 20 Fax: + 1 661 215 59 09 translationsonline@gmail.com
Consulting firm Dikke International
Translate Service Ltd.
Translation, Legal Database “Laws of Georgia” (English version) 16, Mikheil Lermontov str., Tbilisi 0107 Tel: (+995 32) 93 53 57 Fax: (+995 32) 92 11 63 dikke@access.sanet.ge www.dikke.com.ge
Translation Service & Web-design 4, Shalva Dadiani str., Tbilisi 0105 Tel: (+995 32) 99 05 77 Mobile: (+995 71) 99 05 77 Fax: (+995 32) 99 05 77 contact@translateservice.ge www.translateservice.ge
Lingua
Translation service 6, Shartava str., Tbilisi Mobile 1: (+995 93) 36 98 54 Mobile 2: (+995 97) 32 35 29 translationlingua@yahoo.com
TOUR OPERATOUR & TRAVEL AGENTS Find more information in the entertainment section
Trados Ltd.
Translation & Interpretation 19, Pushkin str., Tbilisi 0105 Mobile: (+995 99) 21 79 57 Fax: (+995 32) 99 51 58 geotrados@yahoo.com | geotrados@yandex.ru www.trados.ge
50
www.ebizguides.com
Business Resources
www.ebizguides.com
51
52
INVESTMENT & LEGAL FRAMEWORK
53
Investment & Legal Framework OVERVIEW Georgia is a small country with significant investment potential due to its strategic location, natural resources combined with infrastructural, institutional and legal developments adopted to meet challenges of XXI century. Located at the crossroads of Europe and Central Asia, it serves as a natural transport corridor and is the shortest transit route between the West and Central Asia for the transportation of Oil, Gas and dry cargo.
regards, Georgia adopted lower tax rates, decreased license and permit requirements for doing business, improved logistics, adopted flexible customs system and privatization regulations for the state owned assets in order to attract investment and boost economic growth and jobs creation. - Significant level of macroeconomic stability is achieved with the help of the International Monetary Fund and other international financial institutions.
Reforms and initiatives, carried out by the Georgian Government since 2003, aimed at improving the investment climate in the country have produced positive results as evidenced from international studies and reports. Notwithstanding, the fact that Georgia had to deal with the Russian Aggression in 2008, the country quickly regained its previous financial position and currently is apt to offer a safe business environment to local businesses and foreign investors/investments.
- Improvement of legal environment with regard to entrepreneurial and investment activity is another dynamic process underway in Georgia. In light of the aforementioned process, various legislative acts and regulations were adopted over past decades designed for the flexible regulation on fair competition, energy sector, cheques, bonds and other securities, privatization of agricultural land, non-agricultural land, and state property, tax and customs system.
Reforms, designed to stimulate economic growth and stability of the country, were observed in various directions:
In order to attract foreign investment, the Government of Georgia, in cooperation with private enterprises, continues to develop infrastructure – roads, railways, sea ports, and airports. Agribusiness, Tourism, Energy, Construction and Transport are considered to be Priority Sectors for investment flow. According to the recent report from the World Bank Group, Georgia ranked 11th in 2010 for the ease of doing business.
- Institutional developments guaranteeing time and cost-effective, professional, impartial and transparent public service; - Economic reforms aiming at ensuring economic growth based on liberalization policy and encouragement of private sector initiatives. In this
54
www.ebizguides.com
Investment & Legal Framework
www.ebizguides.com
55
Investment & Legal Framework DOMESTIC REGULATIONS
Foreign currency transfer
Setting up a Company
Foreign investors are fully entitled to transfer abroad in a freely convertible currency and at the exchange rate prevailing in the banks of Georgia on the date the request is made. This includes all amounts resulting from foreign investment operations, namely the dividends and profits, capital derived from alienation, liquidation or extinction of enterprises, any amounts earned as a result of contracts, profit generated from the property, patent and intellectual property rights, royalties.
The Law of Georgia concerning entrepreneurs sets forth an exhaustive list of enterprises that can be established in Georgia, which are as follows: JointStock Company (JSC) • Limited Liability Company (LLC) • General Partnership (GP) • Limited Partnership (LP) • Cooperative (CO) • Individual Enterprise (IE) Georgia offers efficient legal framework for commencement of business activities in the country. No requirement of fixed amount for share capital and incorporation in one business day make the registration proceedings rather flexible.
Investment Legislations Promotion of investment is considered to be a primary goal of the State economic policy. In addition, Georgia undertakes the protection of investors through domestic regulations, as well as through the number of Bilateral Investment Treaties and international agreements with partner countries and organizations. The following legislative acts are of a particular significance with regards to foreign investment protection in Georgia: the Law of Georgia of November 12th, 1996 on Promotion and Guarantees of Investment Related Activities, which defines the status of investment, rights and obligations of Investors and the guarantees they can benefit from; the Law of Georgia of June 30th 2006 on Investment State Support and the Law of Georgia of June 19th, 2002 on National Investment Agency govern the involvement of state in the investment protection and promotion activities.
Rights of the Investor Foreign Investors are guaranteed fair and equal treatment, regardless of their nationality. They have rights and guarantees similar to Georgian companies. However, Investors are equally responsible for complying with Georgian legislation including environmental and healthcare regulations.
56
Accounts in foreign currency Foreign investors have the right to hold current or any other bank accounts in any foreign currency in the banking institutions operating on Georgian territory and make all necessary banking operations. Investors have free access to the loans offered by the banking and other financial institutions operating in Georgia, or by any individual or legal person. They are permitted to purchase bonds and other securities in Georgia as well as abroad.
Investment Guarantees Georgian legislation offers unconditional protection of investments. Assets of a foreign investor shall not be subject to expropriation, except when it is explicitly provided in the law, decision of the court or constitutes a matter of urgent necessity in accordance envisaged in the respective organic law and with fair compensation, including the amount of damages born by investor from expropriation. In any event investors have the right to challenge the decision regarding the expropriation of the investment in the local courts of Georgia. The State protects investment during the state of war and provides equal treatment of foreign and domestic investors while compensating for damages. Most significantly, should new laws be adopted worsening the investment conditions it shall not have a retrospective application to the existing investment for the period of ten years and the investor will conduct its activity in accordance with law applicable at the time when the investment was carried out.
www.ebizguides.com
Investment & Legal Framework
Investment Agency Georgain National Investment Agency attached to the Ministry of Economic Development of Georgia is the body responsible for investment promotion and facilitation. It is designed to act as a “one-stop-shop” for comprehensive information about investment opportunities in Georgia and represents Georgia visa-vis foreign investors. Investment over 8 million GEL, or which has a significant impact on the economic and infrastructural development of the country from a strategic or functional point of view are subject to special preferential treatment and have the right to require the status of Investment of Special Significance (ISS).
International Laws and Agreements Georgia joined the World Bank in 1992 and since then the International Bank for Reconstruction and Development is one of Georgia’s main partners and beneficiary’s in numerous successful projects. Currently the Country Partnership Strategy (CPS) for Georgia for FY10-13 has been prepared against the backdrop of twin crisis – the August armed conflict with Russia followed by the global economic downturn. As a result, the joint World Bank/IFC strategy focuses on post-conflict and vulnerable issues, and the strengthening of foundations for medium term competitiveness and growth. The presence of The World Bank Mission in Georgia along with other partner organizations has a significant impact on the economic development of the Country. Financial support, analysis and advice is provided to the Government in order to advance infrastructure, education, economic and legal reforms which leads to a better investment environment and economic growth. The European Bank for Reconstruction and Development is one of the largest single investors in Georgia, which also mobilizes significant foreign direct investment. The EBRD is helping Georgia to develop a dynamic private sector, particularly through financing micro, small and medium-sized enterprises, and assisting Georgia to become a regional transportation and natural resources hub. Other key activities focus on developing infrastructure, reforming the financial sector, restructuring the corporate sector and introducing sound corporate governance.
www.ebizguides.com
Georgia has been a member of The World Trade Organization since 2000 and benefits from Most Favored Nation Regime with WTO Members, which provides lower tariffs for WTO members. It has joint major bilateral agreements within the WTO. Georgia benefits from a Generalized System of Preferences when trading with the USA, Canada, Switzerland and Japan. Accordingly, lower tariffs are applied on goods exported from Georgia into these countries. Georgia is beneficiary of GSP Plus trading regime, which allows Georgia to export 7,200 products to the 495 million EU market duty free. From January 2006, Georgia has a Free Trade Agreement with Turkey which envisages entire liberalization of trade on industrial goods as well as essential preferences in the field of agriculture. Georgia is party to the EU initiative, the European Neighborhood Policy, which, from a legislation standpoint, means that Georgian legislation should be brought in line with the EU laws. The special Fact Finding Mission on trade issues from the European Commission visited Georgia on October 13-15, 2008. This visit could be considered as an important and practical step on the way towards establishing FTA between The EU and Georgia Georgia has recognized technical regulations of European Council, Organization for Economic Cooperation and Development (OECD), and its main trading partner countries and permitted their comparable activities, which will consequently promote the development of business environment and the reduction of technical obstacles in trading.
Transfer of Capital and Profits, Taxation A new Tax Code came into force on January 1st 2005 which marked adoption of new liberal, investmentoriented, business friendly tax regime in Georgia. The tax system was simplified, several taxes were abolished and others were significantly reduced. The taxes currently applicable in Georgia with their respective rates are provided below.
57
Investment & Legal Framework
58
www.ebizguides.com
Investment & Legal Framework
www.ebizguides.com
59
Investment & Legal Framework Personal Income Tax Individuals who are residents of Georgia pay Georgian personal income tax on their worldwide income. Non-residents are subject to Georgian tax only on income flowing from Georgia. Currently tax rate is 20% which will be gradually reduced 15% for 2012 (2010 - 20%, 2011- 18%; 2012- 15%). Personal income tax may be paid directly by the liable taxpayer, or withheld by the tax agent. Hereby, an international company incorporated in a Free Industrial Zone of Georgia is exempted from the obligations to withhold tax at the source of payment.
Corporate Income Tax / Profit Tax Georgian companies are subject to Georgian corporate income tax on their worldwide income, unless otherwise provided in any double taxation or other international treaty. Foreign companies, including their permanent establishments, are subject to taxation on Georgian source of income only, subject to double taxation treaty relief.
Withholding tax for companies and individuals: • Dividends paid to individuals and non-residents, rates for dividends will be gradually reduced from 10% to 0% during a three-year period starting from 1 January 2009 in the following manner 10% (2009 – 2010- 5%, 2011 -3%, 2012 -0% ) • Dividends paid to resident companies- 0% • Dividends paid on publicly-traded equity securities having free float in excess of 25% 10% (2009 – 0%) • Dividends paid by International Financial Company 10% (2009 – 0%) • Interest paid rates for dividends and interest will be gradually reduced from 10% to 0% during a three-year period starting from 1 January 2009, 10% (2009 – 7.5%, 2010- 5%, 2011-0%) • Interest paid to resident banks 0% • Interest paid by licensed financial institutes 10% (2009 – 0%) • Interest paid on publicly-traded debt securities having free float in excess of 25% - 10% (2009 – 0%) • Royalties paid for patents, know-how, etc 10% • Management fees paid 10%
60
• Payment of income from international transport or international communications 4% • Insurance premiums paid 4% (2009 - 0%) • Payment of income from oil and gas operations 4% • Payments of other Georgia-source income of foreign companies not connected to their permanent establishments in Georgia 10% Value added tax rate is 0% or 18% for value added services. When goods are temporarily imported into Georgia VAT is paid at 3% of the amount of VAT payable for each complete/incomplete month. Transactions that are exempt from VAT taxation are as follows: supply of cash or land; supply of assets in the course of reorganization of an entity; supply of assets contributed to the authorized capital of another entity; supply of all assets of an independently operating unit of a VAT taxpayer entity to another VAT taxpayer in a single transaction, provided that both parties notify Georgian tax authority within 15 days after the supply. VAT taxpayers are required to file a VAT return and pay VAT liability within 15 days after the end of the reporting month.
Excise Tax Excise taxpayers are parties who produce, import, export, temporarily import excisable goods in Georgia; Supply condensed natural gas or natural gas for motor vehicles. Excise tax rates are fixed per physical unit of excisable good. Taxpayers are required to file an excise tax return and pay the tax liability within 15 days after the end of the reporting month.
Property Tax Individuals and legal entities owning or leasing property in Georgia are subject to property tax. Property tax is a local tax. Local authorities set the tax rates within the limits established by Tax Code of Georgia. Annual property tax rate for enterprises, organizations and individual entrepreneurs should not exceed 1% of the average annual balance-sheet value of the taxable assets (excluding land).
www.ebizguides.com
Investment & Legal Framework Agreements for the Avoidance of Double Taxation Georgia has already entered into the treaties on avoidance of double taxation with more than twenty countries. Whereas, 28 tax treaties are already in force, 5 treaties await ratification, 3 treaties await execution, while 11 treaties are being negotiated.
While certain goods are exempted from customs tax; - VAT, which is equal on imported and local goods; - Excise tax, applies to most of the imported and local goods. Customs fees are payable at the time of declaration of the goods to the customs office and are due on import, export or transit of goods into, out of, or through Georgian customs territory.
Import and Export Rules and Regulations
Free Industrial Zones
Modernization of customs system in accordance with the international standards as well as simplifying the applicable rules and regulations is another significant aspect of Economic Policy. The customs code structure was harmonized with EU legislation.
Free Industrial Zone (hereinafter “the FIZ”) is the type of free zone envisaged by Customs Code of Georgia where the business-friendly regulations and favorable tax and customs system apply.
Currently most frequently used customs regimes are import, export, temporary import and transit. Customs duties taxes and fees are payable upon bringing goods in or taking them out of the customs territory of Georgia. Customs Taxes include: - Customs tax, which is based on either customs value or per physical unit of goods and the rate applicable to the customs value of the goods, is fixed at 0%, 5%, or 12% according to the classification of the goods. Most goods fall into the 0% rate. Most food products and construction materials fall under 5% or 12% tax rates. No quantitative restrictions (quotas) exist on imports or exports.
FIZ is singled out during a limited time period for economic activity and the companies operating therein are subordinated to special regime, which is favorable from a legal and commercial point of view. The following main characteristics of the FIZ can be observed: • Payment can be carried out in any currency within the FIZ; • Tax stimulation; • Simplified proceedings; • Exemption from the license/permit requirement as well as facilitation of obtaining such license/ permits; • Authorities of local self-governing bodies (City Halls, Municipalities, etc.) do not cover FIZ territories; • As the law does not provide for the maximum or minimum time limit for operation of the FIZ, it is left up to the option of establisher; • The FIZ shall have entrance and exit as well as customs checkpoints located therein.
Perhaps the main privilege of the FIZ which attracts business investments into Georgia and makes the place most beneficial to do business is the favorable tax and customs framework, which is as follows:
Freedom Square was the location where U.S. President George W. Bush and Georgian President Mikheil Saakashvili addressed a crowd of around 100,000 people in celebration of the 60th anniversary marking the end of World War II.
www.ebizguides.com
• FIZ incorporated entities are exempt from Property Tax; • No VAT applies to goods produced in other country imported into the FIZ; • No VAT applies to the transactions carried out among FIZ incorporated entities; • Supply of goods/services among enterprises of FIZ is VAT exempt;
61
Investment & Legal Framework
• No Customs duty applies to goods produced in other countries imported into the FIZ; • Only VAT tax shall be applied to goods produced in the FIZ under the free disposal Customs regime, regardless of the quantity of the goods; • The export of goods produced in the FIZ within Georgian territory is free from Customs duty; • No foreign exchange controls, trade barriers of quotas; • No restrictions on capital repatriation; • Profit gained by an international enterprise from an activity carried out in FIZ is exempt from profit tax; • Employees of the entities incorporated in the FIZ pay the revenue tax via declaration as FIZ incorporated enterprise is not considered as a tax agent in relation to salary paid by it and does not have to withhold tax at the source of payment.
Current FIZ in Georgia Poti Free Industrial Zone: Rakia Georgia - More than 105 million USD in 2009-2013; - More than 10,000 employees; - Development of industry, logistical parks and business centers. Kutaisi Free Industrial Zone: Georgian International Holding - More than 3 billion USD during 3 years; - More than 20,000 employees; - Industry development. Future project: Tbilisi Green Free Industrial Zone -Airport City - Approximately 25 million USD during 43 months; - More than 1,000 employees; - Production of goods, reproduction, construction and package thereof.
Banking Legislation Despite the recent war in August 2008 and the financial crisis, Georgia’s banking system can be considered as one of the most successful and fastest growing sectors in the Georgian economy and one of the main pillars for economic stability of the country. Economic reforms and liberalization of regulations significantly developed the banking sector in relation to adequacy, profitability, asset quality and risk management. Liberal regulations and a business friendly environment stimulated
62
and incited existing commercial banks and potential foreign investors to increase revenues by entering into investment banking, insurance, credit cards, depository services, mortgages and securitization. The Banking sector in Georgia is regulated in accordance with the Law of Georgia on Commercial Banks, Law of Georgia on National Banks of Georgia and other regulations adopted with respect to specific issues. Georgia was one of the first countries to completely liberalize capital account transactions and currency regimes. Residents have the rights to have current accounts with banks in foreign countries. Residents and non-residents of Georgia may make investments in commercial banks based in Georgia under equal terms and conditions. The banking license must be issued for any banking business and minimum required amount of the Charter Capital at the moment of the creation of the bank is its Regulatory Capital, which should constitute 12 million GEL. A single use banking license provides the right to perform any type of banking business provided by law. Georgia’s currency regime is based on floating exchange rate principles. Intervention by the National Bank of Georgia targets against excessive exchange rate fluctuations on the currency market. There are over twenty commercial banks in Georgia with a significant number of branches and ATM Machines. Liberal regulations in Georgia are combined with strong supervisory mechanisms from banking sector and are enforced by the National Bank of Georgia (NBG). The NBG ensures financial stability and maintains the purchasing power of the national currency. It is a financially independent body which covers all its expenditures by its own funds. Another significant institution is the Financial Supervision Authority (FSA) which operates within the NBG and deals with the issuing of licenses to commercial banks and other participants of the financial sector, granting them the authority to conduct relevant business activities. One of the main functions of FSA is to monitor financial companies in order that they observe the terms and conditions established by the FSA.
www.ebizguides.com
Investment & Legal Framework Labor Laws Georgia has one of the most liberal Labor Codes in the World. According to the Heritage Foundation index of Economic Freedom for 2008 Labor Freedom Index for Georgia was 99.9. Georgia leads the world on the Adult Literacy Rate indicator of the 2006 Human Development Report produced by UNDP. Georgia is a member of the International Labour Organization. The organization implements international labour standards, provides equal protection and guarantees workers non-prejudice practice regardless of nationality or any other criteria. Investors are guaranteed authorization to hire foreign workers, who are permitted to transfer their income abroad once they have complied with all state duties and levies.
Private Ownership For every post socialist country public ownership was the priority, with implication that it would be replaced by private ownership, this required unprecedented efforts from the state. Main challenges for Georgia were to create legal guarantees to private ownership and implement them in the society which had no such experience. Private ownership is recognized, guaranteed and protected under the constitution. The Constitution of Georgia considers abrogation of universal right to property impermissible unless in the event of utmost Public Necessity (road, railway, oil & gas pipeline, etc) and only with appropriate compensation. Further detailed provisions regarding private ownership are incorporated in the Civil Code of Georgia which regulates the right to acquire, alienate, and inherit the property and other proprietary rights.
socialist system. More than 15,000 enterprises have been privatized since 1992 when the privatization process started in Georgia and currently the number of state owned enterprises has been significantly reduced. The ongoing privatization policy envisages quick transfer of remaining assets into a private ownership. The Enterprise Management Agency sets up supervisory councils and prepares enterprises for privatization. It elaborated special privatization procedures in order to make available participation in the privatization process for the broad public.
Access to Land
Access to Land and development of land market is considered to be of paramount importance for the development of agriculture in Georgia. A new stage in the privatization of agricultural land is underway including the plots which remain state property. Privatization of land for agricultural or nonagricultural purpose is subject to special regulations, which ensures the rights of the investors’ access to the land in the event that significant investments are realized. With respect to Agricultural land, access is guaranteed to Georgian citizens/legal entities in Georgia, which can be 100% owned by foreign individuals or foreign legal entity. Privatization by the State of agricultural land is passed through Special Auction, Open Auction and Direct Sale. With regards to non-agricultural land, everyone is entitled to take part in privatization. For the acquisition of the land a Purchase Agreement is required (certified by local notary, notary fees) which afterwards has to be registered in the Public Registry (registration fees).
Construction
Private ownership is strongly tied with the system of Public Registry. It is with the registration that the right of ownership is legally confirmed for which ownership certificate is issued. Along with registration of transfer of property following rights are registered at Public Registry: Ownership; Mortgage; Pledge; Right to build; Servitude; Tenancy (subtenancy); Lease (sub-lease), Lending.
Construction business is another important sector which was part of the Government liberalization program especially with respect to the regulatory environment. The system of issuing permits in the construction sector was simplified and currently a `one-stop-shop` is responsible for issuing permits before a statutory time limit, after which silence considers consent.
Another important aspect for the development of private ownership in Georgia is the process of privatization, which forms a significant part of the reforms implemented since the abolition of the
Currently construction business operates in accordance with the technical regulations of OECD and EU member countries acknowledged by Georgia; however it does not limit companies to
www.ebizguides.com
63
Investment & Legal Framework
choose other internationally recognized standards for construction projects. Simplified procedures and removal of unnecessary barriers has made the construction sector one of the fastest growing sectors of the Georgian economy, which likewise benefits the real estate sector.
body exercising constitutional review, which serves as a guardian for securing constitutional provisions, separation of powers and its accomplishment within the constitutional framework, protecting human rights and freedoms, recognized and guaranteed by the Constitution.
Choice of Law
The Common Courts System of Georgia consists of three stages:
Georgian legislation provides the possibility to foreign investors that their contractual obligations are governed in accordance with the law they choose. The choices of law provisions are legal, valid and binding under the laws of Georgia and will be recognized and upheld by Georgian courts.
• District and City Court; • Court of Appeal; • Court of Cassation (Supreme Court).
The Supreme Court of Georgia represents the court of the highest and final instance for the administration of justice in Georgia. It supervises the administration of justice at the common courts of Georgia. The major principles of the Supreme Court are legality, equality of parties and competitiveness, as well as inviolability and independence of justice. The Supreme Court of Georgia represents a court of cassation, which considers cassation claims on judgments made by the Courts of Appeal. It supports the introduction of unified interpretation of the law and establishment of the common judiciary practice.
Frequent Regional and International conferences take place in Georgia’s capital, Tbilisi
Dispute Resolution System According to the Law of Georgia on Promotion and Guarantees of Investment Related Activities, unless otherwise agreed between the parties, any dispute arising out of or in connection with the investment activity between the Government of Georgia and a foreign investor shall be resolved by the courts of Georgia. However, the most commonly favored tribunal is the International Center of Settlement of Investment Disputes decisions of which are final and binding on the parties and are easily enforceable through the 1958 New York Convention on Recognition and Enforcement of Foreign Arbitral Awards to which Georgia joined on June 2, 1994. Judicial power is exercised by two separate court branches: The Constitutional Court and Common Courts of Georgia. The judiciary is independent and exercised exclusively by courts. The Constitutional Court of Georgia is the judicial
64
The Party to the Contract has the power to submit to the non-exclusive jurisdiction of courts other than the courts of Georgia. In the event that a judgment is rendered by courts of a foreign country, after due service of process, the same would be enforced by Georgian Courts without retrial or further review of the merits of the case. Nonetheless, the Law of Georgia on International Private Law sets certain limits to such right. Submission by the Party to the Contract of disputes, controversies and claims arising out of the Contract to arbitration does not contradict Georgian law. An arbitral award obtained in a foreign tribunal is enforceable in Georgia in accordance with the terms of the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards dated 10 June 1958, to which Georgia is a party, without re-examination or re-litigation of the matter on its merits.
www.ebizguides.com
Investment & Legal Framework Useful Contact Information Georgian National Investment Agency Ministry of Economic Development of Georgia 12 Chanturia St. 0108 Tbilisi Tel/Fax: (+995 32) 433 433 Tel: (+995 32) 106 394/106 391 info@investingeorgia.org www.investingeorgia.org Ministry of Economic Development of Georgia 12 Chanturia St. 0108 Tbilisi Tel/Fax: (+995 32) 921 1845 Tel: (+995 32) 991 088/921 1845 ministry@economy.ge www.economy.ge Ministry of Finance of Georgia www.mof.ge Hot line: 077 Revenue Service of the Ministry of Finance of Georgia 16 Gorgasali St., Tbilisi, 0105 Contact Centre Tel: 077 e-mail: callcenter@mof.ge Ministry of Justice of Georgia Hot line: 0008 www.justice.gov.ge National Agency of Public Registry (Regional Centre) 2 N. Chxeidze St., 0102, Tbilisi Hot line: 8 800 282 828 www.reestri.gov.ge
MAIN ENTITIES Adjarian Chamber of Commerce and Industry (ACCI) Djumber Tugushi Vice President 26 Melashvili St. Batumi, 6010 Tel: (+995 222) 7-28-41 Fax: (+995 222) 7-28-42 cci@ajcci.ge www.ajcci.ge The Adjarian Chamber of Commerce and Industry (ACCI) is the largest business organization of the
www.ebizguides.com
Autonomous Republic of Adjara. With its finger on the pulse of the region’s economy, the Chamber is regarded as one of the most influential and most dynamic organizations of its kind in Adjara. ACCI is dedicated to the stimulation of a market economy and free enterprise. As the region’s largest employers association, ACCI represents the interests of Adjara’s business sector including exporters and importers, wholesale and retail, services and manufacturers. ACCI is a totally autonomous body that operates independently of the Government or any other institution. It is a nongovernmental corporation comprised of entrepreneurs, businessmen and other concerned persons. Since the day of its foundation, October 5th, 2004, ACCI has participated in different activities and events, including the exhibition “Made in Georgia”, held in Tbilisi, and international exhibitions in Kiev and Warsaw. The Chamber has hosted various official delegations from different chambers, including the chamber of Gilan (Iran) and chambers of Trabzon, Hopa, Artvin, and Inegol (Turkey). They have also hosted representatives of the international press including business magazine “Fortune”, and the counselor from the Canadian Embassy. ACCI has organized many seminars, meetings, presentations and forums, which served to the local businessmen and business environment. The major objectives and services of ACCI include: • Protecting the interests of businessmen and consumers; • Creating a suitable environment for local businessmen and companies; • Assisting local and foreign companies in establishing trade relations; • Campaigning, lobbying and representation of its businessmen; • Supporting ongoing economical reforms; • Carrying out quantity and quality expertise of goods; • Witnessing to force majeure circumstances; • Preparing permits and licenses required for customs registration; • Registration of cargo declarations; • Financial expertise and audit; • Translation services; • Assisting businessmen in finding businesspartners; • Acquaintance with foreign trade rules; • Opening web sites for businessmen • and exporter companies; • Organizing fairs and exhibitions;
65
Investment & Legal Framework
• Organizing seminars and forums; • Taking part in international trade missions; • Conducting economic research; • Providing information on business opportunities, funding and grants, policy and legislation; • Legal consultation; • Issuing Certificate of Origin; • Organizing presentation of companies, goods and services. The ACCI is an important organization, greatly contributing to the development of the economy.
American Chamber of Commerce in Georgia David Lee President 10 Melikishvili Ave. Tbilisi 0179 Tel: (+995 32) 22-69-07 Fax: (+995 32) 22-67-92 dlee@magti.ge www.amcham.ge The American Chamber of Commerce in Georgia is an association aiming to promote the development of commercial relations between Georgia, the United States of America, and the international community in Georgia. At the suggestion of former American Ambassador to Georgia, Mr. Kenneth Yalowitz, a group of leading businesspeople representing American interests in Georgia convened to further examine and define the need for an international association of American, Georgian and international businesses. The Chamber was officially registered in Georgia as a non-profit non-commercial organization on September 29, 1998. The founding members of the American Chamber of Commerce: Fady Asly, Managing Director of Agritechnics; Leigh Durland, President of Absolute Bank; Betsy Haskell, Owner of Betsy’s Hotel; Dave Mayer, Vice Chairman of Sante-Walsh Products; and Dennis Stuart, Vice President of Georgia Pipeline Company, envisaged that the Chamber would quickly emerge as the leading organization representing American and International business interests in Georgia. The Chamber protects and promotes the common economic interests of its members and represents their opinions on all types of business matters while striving to facilitate constructive solutions to
66
economic issues concerning Georgia-US business relations. The Chamber promotes its goals by establishing relations with key policy makers and appropriate governmental bodies in both the US and Georgia on subjects of interest to its members. Additionally, the Chamber collects and disseminates timely information concerning areas of interest, organizes conferences and seminars, works on legislative initiatives of concern to the business community in Georgia, and most importantly, provides an ongoing forum for members of the American business community to gather to share knowledge, experiences, problems and solutions. Finally, the Chamber tries to encourage a strong sense of community among businesspeople in Georgia. The Chamber organizes regular social events such as parties, cookouts, receptions, dinners and cultural events. Roundtables and discussion groups are an integral part of the Chamber’s commitment to further the sharing of knowledge and experience among its members.
BLC Alexander Bolkvadze Partner 4 Gudiashivili Sq. Tbilisi 0105 Tel: (+995 32) 92 24 91 Fax: (+995 32) 93 45 26 alex.bolkvadze@blc.ge www.blc.ge Activity: Legal Services For 10 years, BLC has been providing efficient response to the legal queries and needs of its clients. In the year 2010 BLC, its team, partners and clients shall celebrate 10 years of successful operation. Partners and associates of BLC, educated in the prominent schools of US and EU have predetermined the Western orientation of the company, its highest ethical standards, diligence and dedication to their clients and profession. With its successful record of litigations, the best portfolio of the successful transactions, highly reputed clients and excellent team BLC has proven its leading role among the law-firms operating in Georgia. BLC is the only Georgian law-firm with international practice operating the branch in Batumi (Ajara Autonomous Republic of Georgia) and number
www.ebizguides.com
Investment & Legal Framework
of correspondents in the neighboring Armenia, Azerbaijan, Russia and Ukraine. BLC is proud to have a chance to work with prominent international practices, few examples are: Slaughter & May, Baker & McKenzie, White & Case, etc. Since its establishment, BLC has represented a wide range of foreign and domestic, small and large clients, and has been engaged as a counsel in insurance and banking business, telecommunications, international trade, energy, oil & gas, agriculture, food industry, aviation, NGO, infrastructure development and other areas of law. BLC has acted as a local counsel on behalf of international law and accounting firms. BLC has carried out number of successful litigations and arbitrations, it has provided its clients comprehensive due diligence studies, has been engaged in the large and medium transactions involving mergers and acquisitions. Through its associates and experts BLC has provided its services in the family law matters, inheritance, criminal and administrative matters. BLC has been largely involved in the privatizations and auctions carried out by the Georgian government.
Booz Allen Hamilton Jen Braswell Caucasus Regional Manager 7 Bambis Rigi St. Business Centre Mantashevi Tbilisi 0105 Tel: (+995 32) 43-90-72 Fax: (+995 32) 43-90-59 braswell_jen@bah.com www.boozallen.com Booz Allen Hamilton is a leading strategy and technology consulting firm. They work with clients to deliver results that endure. Every day, government agencies, corporations, institutions and not-forprofit organizations rely on Booz Allen’s expertise and objectivity, and on the combined capabilities and dedication of their exceptional people to find solutions and seize opportunities. They currently have offices in the US and throughout the former Soviet Union and Asia. Booz Allen Hamilton’s Georgian office is largely focused on government consulting. They are mainly involved with development assistance, technical assistance, and project implementation. They perform consulting for governmental departments, local governments, large-scale international donor projects from organizations such
www.ebizguides.com
as USAID and World Bank and various internationally funded projects initiated by local agencies. They also partner regularly with Booz & Company, a spin off company of Booz Allen Hamilton that focuses on providing business management consulting to private sector clients. Many of their projects are focused on economic growth assistance and they work to help Georgia support specific sectors such as Healthcare and Oil & Gas. They specifically assist their clients in understanding the Georgian business environment. This is very effective with regards to time and money saving. They help their clients understand which permits and licences are required for their proposed projects and also assist with general implementation. Another sphere of operations for Booz Allen Hamilton Georgia is the coordination of various clients to form mutually beneficial communication. As many donors are working on similar sectors and have overlapping scopes of work, Booz Allen facilitates donor coordination, arranging workshops and ensuring open communication. Booz Allen has a strong presence in Georgia and has played a key role in the development of the country. “Since I started coming here in 2003, right around the time of the Rose Revolution, there have been enormous changes here, and it is much easier to do business here. It is easier to do business in Georgia than anywhere else in the region” Jen Braswell Caucasus Regional Manager
DLA Piper Ted Jonas Office Managing Partner DLA Piper Gvanadze & Partners LP 10 Melikishvili St. Tbilisi 0179 Tel: (+995 32) 509–300 Fax: (+995 32) 509-301 ted.jonas@dlapiper.com www.dlapiper.com Since its inception in 1994 as Georgian Consulting Group, their office has been the leading legal services provider in Georgia. On joining DLA Piper in July 2005, they became part of an international
67
Investment & Legal Framework
legal practice with widespread global reach and legal expertise across all practice areas and industries. The staff of 30 lawyers, paralegals and professional personnel includes leading Georgian attorneys, as well as an American attorney and an English solicitor with lengthy experience in the region, giving the office a cross-border capacity unique in Georgia. Their practice attracts clients involved in the most high profile international investment, financing and privatization transactions in Georgia, as well as the most significant business disputes in local courts and international arbitrations. They operate as a full service law firm, providing legal advice and representation on a wide range of matters, including commercial, corporate, mergers and acquisitions, finance, securities, tax, customs, energy, banking, telecommunications, general litigation, real estate and IP matters. Building strong and substantial client relationships was and remains the compass for DLA Piper’s business strategy and future development. With Frank Burch as Chairman of their Global Board, DLA Piper today has 3,500 lawyers in more than 65 offices in Asia, Europe, the Middle East and the United States. They represent more clients in a broader range of geographies and practice disciplines than virtually any other law firm in the world. Their client commitment is also their brand.
Ernst & Young Zurab Nikvashvili Partner / Head of Tax and Legal Services Kote Abkhazi Street 44 Tbilisi, 0105 Tel: (+995 32 )43 93 75 Fax: (+995 32) 43 93 76 zurab.nikvashvili@ge.ey.com www.ey.com/georgia Ernst & Young’s major goal is to achieve success for its people and clients. They are a leading international professional services firm that assists businesses to identify and capitalize on business opportunities. Building on a distinguished record working with the public sector, Ernst & Young has been a pre-eminent player in the development of private enterprises throughout Georgia. They have a long-standing reputation for excellence in both the quality and scope of the advice they
68
deliver, and are recognized throughout Georgia’s business community as the country’s leading provider of business advice. They are recognized for a blend of local and western experience, a quality unique to Georgia and rare in the entire Caucasus region. With a combined staff of over 60 professional advisors, their client portfolio includes numerous local and foreign companies in Georgia’s key economic sectors, including the financial markets, oil and gas, energy and utilities, manufacturing, food and beverages, telecommunications, transportation and real estate. Ernst & Young has a strong commitment to the Georgian market and is well prepared to implement new and challenging strategies to enable their clients to achieve success in their business operations. Ernst & Young’s Tbilisi office mainly provides: • Assurance and Advisory Business Services (Audit, Review of Financial Statements, Compilation of Financial Statements, AgreedUpon Procedures Regarding Financial Statements, Organizational Development, Operational Advisory and Management Information, Risk Management Solutions, Technology and Security Risk Services and Professional Education Center). • Tax Services (Tax Structuring, Tax Dispute Resolution, Tax Compliance, Personal Tax Filing, Customs Services and other Services).
Georgian Chamber of Commerce and Industry Jemal Inaishvili President 29 Berdznis St. Tbilisi 0114 Tel: (+995 32) 72-07-10 Fax: (+995 32) 72-31-90 ji@gcci.ge www.gcci.ge The Georgian Chamber of Commerce and Industry was created in 1960. It unites six regional chambers and up to a thousand associations, companies, banks, etc. The Chamber is an independent, collectively organized, non-governmental organization. A general meeting of businessmen elects the president and vice-presidents of the Chamber.
www.ebizguides.com
Investment & Legal Framework
The principal goal of the Chamber is the presentation and protection of the interests of its members in Georgia and beyond. It takes part in the development of economic drafts, legislative acts, and other activities relating to the benefit of its members.
communication channels that will help raise awareness of Georgia as an investment destination. They also look to seek out potential investors to introduce specific projects that could be developed for mutual benefit.
The Chamber leads systematic negotiations for its members. They act on behalf of the business community to present their common interests before the public institutions. In this regard they play a representative role for the Georgian business community.
Another key objective of the agency is to foster public-private sector dialogue in order to build a better and more prosperous environment for private sector development and economic growth.
The Chamber’s website offers thorough information concerning the member companies, business opportunities from the around the world and other necessary information promoting commerce in Georgia. The Chamber renders active service to businesses. It confirms the certificates of origin of goods, carries out quantity and quality expertise of goods, determines barcodes, witnesses force-majeure affairs, carries out translation of scientific, technical, legal and economic material of any complexity and contribute to the development of professional education in the sphere of entrepreneurship. There is also an arbitration court functioning at the Chamber where economic entities may solve economic disputes arising during their activity. The Georgian Chamber of Commerce and Industry is a member of ICC (International Chamber of Commerce), it follows and participates in the economic processes taking place in the country.
Georgian National Investment Agency Irakli Matkava Director 12 Chanturia St. Tbilisi 0108 Tel/Fax: (+995 32) 43-34-33 matkava@investingeorgia.org www.investingeorgia.org Georgian National Investment Agency (GNIA) is an agency under the Ministry of Economic Development of Georgia and was established in 2002. It is the only Government agency responsible for investment promotion and facilitation. It is designed to act as a “one-stop-shop” for comprehensive information about investment opportunities in Georgia. Their primary responsibility is to identify and develop
www.ebizguides.com
The agency develops and implements effective communication strategies geared towards attracting investment to Georgia. They also provide up-to-date information regarding setting-up business operations in Georgia as well as other required information necessary for making investment decisions. “We are here to help investors to make the right choice; the choice to invest in Georgia.” Irakli Matkava Director The GNIA also researches and analyses the overall investment climate, trends in foreign direct investment and exports and investor satisfaction while doing business in Georgia. This research helps them identify important investment opportunities. They then arrange site visits for potential investors, help facilitate partnerships and suppliers and advise on legal and tax matters. In efforts to promote their initiatives, the GNIA organizes Invest in Georgia business forums, meetings, conferences and workshops, both locally and abroad. The main sectors that the agency is currently focused on are Energy, Agriculture, Tourism, and Healthcare and Pharmaceuticals however, they have identified many areas in every sector of the economy that are ripe with opportunities. “Georgia is a country where doing business is easy and profitable and life is rich and enjoyable. Georgia offers great conditions for doing business. It boasts a receptive, dynamic and business friendly government and also very skilled and talented people who are not only honest and fair business partners and workers, but who are also historically known for being receptive to other cultures and religions. I would like to invite all businessmen to Georgia to experience our hospitality and discover all the opportunities present here.” Irakli Matkava Director
69
Investment & Legal Framework
Gvinadze & Partners LLC Nick Gvinadze Managing Partner 44 Leselidze St. Tbilisi 0105 Tel: (+995 32) 43-89-70 Fax: (+995 32) 43-89-71 n.gvinadze@gvinadzeandpartners.ge www.gvinadzeandpartners.ge Gvinadze & Partners is a leading Georgian business law firm, re-launched in 2010 after their separation from what used to be DLA Piper Gvinadze & Partners. The managing partners of the firm have a long and successful history of serving and promoting inward investment in Georgia, and are widely recognized as leaders in the Georgian legal services market. They have been involved over the years with the Georgian Consulting Group (GCG Law Office), Ernst & Young Legal (EY Law Georgia), Gvinadze & Partners LP and then most recently DLA Piper Gvinadze & Partners LP. During this crucial post-independence period of Georgia’s development, they have represented the lion’s share of truly diverse international clientele, ranging from international NGOs and diplomatic missions to industrial giants, multilateral lending institutions and multi-billion dollar oil and gas consortia. Their experience is equally diverse and all-inclusive, ranging from start up guidance and incorporation of numerous investment vehicles to representation in some of the most noteworthy and complicated projects to have take place in the region over the past two decades. They are equally wellknown for their dispute resolution expertise, having acted in some of the highest profile disputes in the Georgian courts as well as in international arbitration. They have provided quality support to many crossborder arbitration and litigation matters involving Georgian law, including successful enforcement of a number of foreign arbitral awards in Georgia. Perhaps the most telling example of their profound expertise in virtually every area of business law is their role as leading Georgian legal counsel throughout the planning, negotiation and implementation of all the major oil and gas pipeline projects transiting through Georgia, the Baku-Supsa, Baku-TbilisiCeyhan (BTC) and South Caucasus Pipeline (SCP) projects. Their 15 years of intensive work on these “Projects of the Century” has involved the widest possible spectrum of commercial law practice, including drafting, negotiation and implementation of complex intergovernmental and host government
70
agreements, legislative drafting, representation in multi-billion secured syndicated financing, elaboration, documentation and implementation of detailed land acquisition strategies, detailed advice on a myriad of real property, tax and customs, environmental, labor, permitting and contractual matters, and finally successful resolution of hundreds of compensation, environmental and right of way disputes in the Georgian Courts. Throughout their various name changes and reincarnations since the early 1990’s, their core value and the key element to their success has been the unparalleled and uncompromised quality of their legal work. Their latest transition puts them in a unique position to continue to deliver the same top quality Georgian legal support, this time at a more affordable local cost than ever before. They aim to safeguard the success of their valued clients who contribute to the successful future of Georgia.
“We aim to support further growth and investment in Georgia by providing global quality legal services, at local costs.” Nick Gvinadze Managing Partner
International Chamber of Commerce Georgia (ICC) Fady Asly Chairman 1 Nutsubidze St. Tbilisi, 0177 Tel: (+995 32) 39-90-88 Fax: (+995 32) 39-99-37 asly@icc.ge www.icc.ge ICC-Georgia, the Georgian division of the International Chamber of Commerce, was established in 2002. Since taking office in early 2008, ICC-Georgia’s new board of directors has been extremely active and dedicated to improving the business and investment climate in the country. Today, ICC-Georgia unites leading companies and business associations within Georgia. A dynamic and energetic business organization in the country, it represents a wide array of business sectors and backgrounds. The underlying mission of ICC-Georgia is to promote trade and investments and establish a permanent
www.ebizguides.com
Investment & Legal Framework
dialogue with the government and other stakeholders in the economy. They believe that such interaction is crucial to ensure a business-friendly environment; therefore ICC-Georgia’s primary objective is to voice the views of the local business community to affect change in policy. ICC-Georgia has had the opportunity to engage with many of the policy makers in the country including the president of Georgia, speakers of parliament, the prime minister and cabinet ministers, opposition leaders, members of diplomatic missions and international financial institutions.
www.ebizguides.com
ICC-Georgia regularly organizes discussion forums, high profile meetings and works extensively on commissions for the drafting of legislation pertaining to business, the economy and finance. The International Chamber of Commerce is one of the most influential business organizations in the world, present in 130 countries with hundreds of thousands of members. It is a representative body that authoritatively speaks on behalf of enterprises operating in various sectors worldwide. It enjoys close cooperation with the United Nations and other intergovernmental organizations, including the World Trade Organization and the G8.
71
72
THE GEORGIAN ECONOMY
73
The Georgian Economy OVERVIEW Georgia is a Eurasian country situated in the South Caucasus at the juncture of Eastern Europe and Western Asia. The country is bounded to the west by the Black Sea and shares borders with Turkey and Armenia to the south, Azerbaijan to the east and Russia to the north. Georgia joined the Soviet Union in 1922 and restored its independence in 1991.
case of aggregate demand, expenditures on total consumption equalled nearly 100% of the GDP in 2008, while the yearly growth rate thereof was at 20.2%.
It is now a unitary, Presidential Parliament Democracy and a member of the United Nations, the Council of Europe, the World Trade Organisation, the Organisation of the Black Sea Economic Cooperation. The country also aspires to join NATO and the European Union. Georgia’s economy has traditionally revolved around Black Sea tourism, cultivation of citrus fruits, tea and grapes; mining of gold and copper and the output of a big industrial sector producing wine, metals, machinery, chemicals and textiles.
Sunflower Fields, important for the production of sunflower oil
GDP AND ECONOMIC GROWTH Over the last few years, the Georgian economy has been one of the fastest growing in the former Soviet Union. The Georgian economy sustained GDP growth of more than 10% in 2006-07, based on strong inflows of foreign investment and robust government spending. However, GDP growth slowed to 2% in 2008 following the global economic crisis, and the economy contracted by nearly 5% in 2009 as foreign direct investment and workers’ remittances declined in the wake of the global financial crisis. An in depth analysis of the GDP by expenditures, shows that GDP has grown in recent years largely at the expense of final domestic consumption. In the
74
Household consumption represents the largest share of total consumption, and grew by about 16%. This is followed by government consumption that grew twice as high in the accounting period, posting a 32% year-on-year increase. Private consumption’s share falls in the third place relative to the aforementioned two, even though it has been boosted by both real GDP growth and credit expansion over the last 5 years. In addition, after the global financial crisis and its negative effects on the Georgian economy, private expenditure and household consumption are expected to be reduced relative to government consumption in the next 2 years due to the increasing role of the state in the stimulus process. As already mentioned, FDI sharply contracted in 2008, having an essential effect on the total capital formation. This component amounted to GEL 5,148.8 million in 2008, down by 5.5% from the previous year. Accordingly, the share of total capital formation stood at 27%, down from 32% in 2007.
www.ebizguides.com
The Georgian Economy
Georgian Wine fast earning its place on international markets
ECONOMIC REFORMS Agriculture is a very important industry for the Georgian economy as currently about 55% of the total labour force is employed in this sector. However, much of this is subsistence farming and even the rest of the products of the agrarian sector (viniculture, mineral water, grain) usually spoil in the field since farmers cannot sell their goods because of high transportation costs, which make domestic goods more expensive than imported goods. This is better illustrated by the 12.1% contribution of agriculture to GDP compared with the 55% of the total population employed. Industry, the least affected sector by the global downturn, contributes 25.9% of GDP while it employs 8.9% of the labour force and the services industry consists of 62% of the GDP whilst employing 35.5% of the labour force.
Since 1995, the Parliament of Georgia has been liberalising business legislation by implementing policies designed to open the Georgian economy to increase international business activities, and to create a business environment favourable to foreign investment. Under the current administration, Georgia undertook a number of profound institutional reforms aimed at modernising the economy and improving the business climate. The World Bank recognised Georgia as the world’s fastest-reforming economy in its 2008 “Doing Business� report. The change in the Tax Code and Law on Entrepreneurs in 2005 and 2006 resulted in a simplification of business registration making the process of starting a business cheap and efficient, requiring only three days for legal entities and one day for individuals. State and tax registration of companies are now carried out by tax inspectorates under one single procedure. There are no restrictions on foreign ownership of companies in Georgia. The 2008 tax reform abolished the 20% social tax paid by businesses and introduced a flat 25% tax rate for personal incomes. At the same time, the number of registered taxpayers almost tripled from 2005 to 2008 after the introduction of simplified registration procedures for legal entities and physical persons.
Active fishing dock in Batumi, Black Sea
www.ebizguides.com
The country has also dramatically simplified license and permit requirements to ease constraints on business. The total number of required licenses and permits was reduced by 84% in reforms that eliminated 756 licenses, permits and streamlined procedures. Only 86 licenses and 50 permits now exist.
75
The Georgian Economy
After the introduction of a new Customs regime, customs clearance time reduced from 52 to 15 days for imports and from 54 to 13 days for exports as reported by the World Bank’s Doing Business 2007 survey. In the energy sector, Georgia has fully deregulated its electricity sector, and now there is free and open access to the market. However, state-owned actors still play an important role, most notably in generating. The World Bank’s “Anti-Corruption in Transition 3” report, places Georgia among the countries showing the most dramatic improvement in the struggle against corruption, due to implementation of key economic and institutional reforms, and reported reduction in the bribes paid by firms in the course of doing business.
INFLATION Since its independence, Georgia has been committed to battling inflation. This has been further enforced by the country’s collaboration with the World Bank and the IMF. In the last 5 years, rapid growth in output has been accompanied by rising inflation, which reached 11% in 2007 and 10% in 2008. However, inflationary pressures have eased as demand has
weakened in the wake of the financial crisis and the annual rate of inflation was negative at -3.1% in August 2009 and averaged 1% at that year. In the first quarter of 2010, the inflation rate was reported at 6%. According to the National Bank of Georgia, the country is drafting an Inflation Targeting strategy that is going to drive monetary policy from 2011 onwards in order to ensure macroeconomic stability.
EMPLOYMENT Unemployment has been a persistent problem in Georgia ever since the country gained independence in 1991. The overall rate of unemployment in 2009 reached 16.3%, in comparison to 13.6% in 2006. In Tbilisi, unemployment is reported to be reaching 40% while data looks better for rural areas where people are self employed and sufficient with unemployment rates close to 7%. Georgia undertook a far-reaching reform of labour regulation with the new Labour Code in May 2006. This eased restrictions for the duration of term contracts and made layoffs and transitions from one job to another easier. From January 2008, all social security contributions paid on wages by businesses were entirely abolished.
New State-of-the-Art Ministry of Internal Affairs
76
www.ebizguides.com
The Georgian Economy
As a result of the aforementioned reforms, the World Bank ranks Georgia in 11th place in “Ease of doing business” and 6th place in “ease of employing workers” globally in 2008.
BALANCE OF TRADE Georgia has low tariffs, streamlined border clearance procedures and preferential trade regimes with major trade partners. Member of the WTO since 2000, Georgia has no quantitative restrictions on trade. Imported goods include consumer goods (39%), investment goods (16%), and intermediate consumption goods (45%). This composition of imports has been steady over recent years. Major exported goods include ferroalloys (17.8%) ferrous metal scrap (8.6%) copper (7.9%) motor cars (7.6%) mineral fertilizers (7.0%) and gold (6.7%). According to the annual reports of the NBG, the country has been witnessing persistent current account deficits. In 2008, the deficit amounted to $2,850 million (22% of GDP, biggest since 2000) showing an increase over past years as exports grew at an annual rate of 16.3% while imports grew by 25.6%. The major reason behind this has been the decreasing prices of one of Georgia’s main exports, namely ferrous scrap metal.
www.ebizguides.com
However, deficits in the current account have been more than offset by foreign direct investment and emigrant remittances allowing the Georgian currency to appreciate. The growth rate of remittances contracted after the global financial crisis, but is once again rising as the world economy slowly recovers. Georgia also receives financial aid from international institutions such as the IMF, which provided $256.8 million under the balance of payments support program in 2008. The government’s efforts are concentrated in making the attractiveness and competitiveness of the country’s products increase, so that the economy can become independent from FDI, remittances and financial aid.
SOURCE AND DESTINATION OF GEORGIAN FOREIGN TRADE Historically, Georgia’s biggest trade partner has been Russia. However, after various territorial conflicts and the gradual implementation of trade restrictions from the side of Russia, which eventually led to a full embargo of Georgian Imports, Russia moved to 12th place on the Georgian trade partners’ list.
77
The Georgian Economy
In 2008, the main import partners of Georgia were as follows: Turkey, Ukraine, Azerbaijan, Germany, Russia, China, United Arab Emirates, United States, Italy, and Turkmenistan. These countries accounted for 78% of Georgia’s total imports while imports from the Russian Federation fell by 26%. In the same year, main export partners of Georgia were as follows: Turkey, Azerbaijan, Ukraine, Canada, Armenia, Bulgaria, United States, Mexico, United Kingdom, and France. These countries accounted for 80% of Georgia’s total exports.
PRIVATISATION When first gaining its independence in 1991, Georgia was governed by a one-party political system with a state based economy. Since then, a transition into a market based economy process has been put to place.
A law and a decree establishing the legal basis and procedures for state property privatisation reduced the number of companies controlled by the state. Georgia’s current government is aggressively privatising state-owned property to attract private capital to state owned assets in order to introduce efficient management, increase investment and boost economic growth and jobs creation. The Government of Georgia received $347 million USD from the privatisation process in 2007. Privatisation is one of the government’s most significant incomes in its effort to finance the public budget deficits.
During the late 1990s, more than 10,500 small enterprises had been privatised, and although privatisation of medium- and large-sized firms had been slow, more than 1,200 medium and large sized companies had been set up as joint stock companies.
78
www.ebizguides.com
The Georgian Economy
www.ebizguides.com
79
80
FINANCE
81
Finance OVERVIEW The economy in Georgia has seen a considerable change in the last five years with extensive improvement in the stability of banks and financial institutions. The Banking sector in Georgia has seen major growth in recent years. The sector has made substantial improvements in the liberalising of capital adequacy, profitability, asset quality, and risk management. Banks in Georgia are experiencing an average return on assets of 3-5% and return on investments of 14-18%. Not a single Georgian bank bankrupted or applied for a government bailout during the twin crises (Global Financial Crisis and August 2008 political conflict).
The development of the financial sector was largely determined by the country’s sustainable macroeconomic development, foreign debt stability and strong financial performance. Liberal regulations have opened doors for the existing commercial banks and for potential foreign investors to increase revenues by entering into investment banking, insurance, credit cards, depository services, mortgages and security. There have been large equity injections from major multilateral financial institutions including the IFC, EBRD, and the IMF. Along with financing massive infrastructure projects across the country, this equity inflow helps the country’s major banks to ride out the effects of real sector deterioration.
The improvement of the banking sector has led to a variety of loans and the reduction of interest rates, which further suggests the expansion of business and investment opportunities in Georgia.
82
www.ebizguides.com
Finance
Investments in modernizing infrastructure is crucial to Georgia’s success
COMMERCIAL BANKS In 2007, Georgia welcomed three new banks and in the last three quarters of the same year the foreign direct investment in the banking sector amounted to USD 119 million. From 2004 - 2007 the average growth rate of assets exceeded 60%, while the deposit growth rate exceeded 55%. Due to the high growth rate, banking shares amounted to 43% of the GDP in 2007. However, due to the global economic crisis and the
www.ebizguides.com
conflict with Russia, deposits fell in 2008 and 2009. Despite this fact, the first quarter of 2010 began to see a revival and growth is expected for this year. In order to illustrate the growth of the banking services, 120 new banking branches and service centres have opened and the amount of ATM Machines have doubled throughout Georgia.
83
Finance
You can safely store and manage your savings in many of the banks in Georgia, which include the Bank of Georgia, People’s Bank, TBC Bank, Bank Republic, VTB Bank Georgia, Cartu, KOR Standard Bank, Basis Bank, ProCredit Bank, BTA Bank and TaoPrivat Bank. In all of these banks you can perform all necessary financial operations, including currency exchange.
NBG AND LIBERAL REGULATION
In order to entice more customers to open new bank accounts, Georgian private banks refreshed their deposit approach to the market by offering new and more flexible options to their clients. These new options allow people to withdrawal or deposit their money on bankcards at any time throughout the world and offer them unprecedented high interest rates on their accounts. An example of these new banking products is the Maxima card issued by the Bank of Georgia, one of the largest banks in Georgia, offering a 10% fixed interest rate for deposits in Georgian lari, and 8% for deposits in three foreign currencies: US Dollar, Euro and British pound.
The NBG ensures the stability of the financial system through sustainable economic growth. The independence of the NBG is guaranteed by the Constitution. The central bank facilitates long-term sustainable development of the country. In addition, as the NBG is financially independent, all of its expenditures are covered by its own funds. The NBG is not liable for the commitments of the Government of Georgia and in turn the Government of Georgia is not liable for the commitments of the NBG.
CURRENCY EXCHANGE The Georgian Lari (GEL) is convertible to all the world’s leading currencies and has been a member of the International Monetary Fund since 1997. Anyone visiting Tbilisi can purchase local money (Lari and Tetri) in banks and currency exchange outlets across the city. When choosing to change money, it is necessary to produce ID.
According to President of the National Bank of Georgia Giorgi Kadagidze, “Larization” is the main focus of NGB
The National Bank of Georgia (NBG) is the central bank of Georgia. Its status is defined in the Constitution of Georgia. The main objective of the National Bank is to ensure financial stability and maintain the purchasing power of the national currency.
Georgia was one of the first countries to completely liberalise capital account transactions and currency regimes. Residents have the right to have current accounts opened with banks in foreign countries. Residents and non-residents of Georgia can make investments in commercial banks based in Georgia under equal terms and conditions. A banking license must be issued by the NBG for any banking business and a minimum start-up capital of USD 6.6 million is required. A single use-banking license provides the right to perform any type of banking business provided by the law. Georgia’s currency regime is based on floating exchange rate principles. The National Bank of Georgia will intervene with other private banking activity for the purpose of stabilizing excessive exchange rate fluctuations on the currency market.
GEORGIAN STOCK EXCHANGE The Georgian Stock Exchange is the first recognized self-regulatory organization in Georgia and was founded in January 1999. In order to promote the concepts of Self-Regulation, the GSE adopted a number of rules including trading rules, a code of ethics, dispute, resolution rules, and an arbitration code. After approval of these rules by the National Securities Commission of Georgia (NSCG), the GSE was officially recognized as a Self-Regulatory Organization (SRO) and received a Stock Exchange license in January 2000. The GSE was established by a group of Georgian securities market professionals, investment funds, banks, and insurance companies. With funding by the United States Agency for International Development (USAID) and
84
www.ebizguides.com
Finance INSURANCE SECTOR Insurance coverage in most ex-Soviet countries is generally quite low, considering the consumer mentality of this sector, which is that the state should provide for all. However from 2007 to 2010 the insurance sector saw major changes. In 2007, the Georgian insurance industry was rather small catering mostly to the needs of companies, both SME and Large companies. The Georgian government has been working hard to get its population insured. Recent initiatives for a government-subsidized minimal insurance package have greatly increased the percentage of those with insurance coverage. Many individuals living under the poverty line in Georgia have basic health care coverage due to this state program. This initiative, along with the government’s aggressive efforts to reeducate the public about the importance of insurance coverage, has shown tremendous results. According to the Ministry of Health, Labor, and Social Affairs in 2010 about 1.6 million (1.2 million through the state vouchers) Georgians are insured, compared to a mere 50,000 insured individual in 2006. Shopping Center in Tbilisi
implementation by Barents Group (KPMG subsidiary), the Georgian Stock Exchange prepared and tested the trading system. Furthermore, the Georgian Securities Central Depository, a wholly owned subsidiary of GSE, is in place to carry out central clearance and settlement function. GSE has a two-tier system of listing. The lower tier consists of companies that are “admitted to trading”. In the upper tier are the “listed” companies. Requirements for the lower-tier companies are very simple. The company, or any member of the Exchange, presents basic documents, corporate documents (court papers) establishing legality, in addition to proof that the register for the securities is maintained by an independent securities registrar. No fees are imposed by GSE on such companies. There are 278 companies admitted to trading at the GSE and 1 company, Bank of Georgia, is considered “listed”.
www.ebizguides.com
There are 10 private insurance providers operating in Georgia, 4 of which stand out as holding the largest market share. These include Aldagi BCI, GPI Holding, Imedi L, and IRAO. They all offer a wide range of Insurance packages, from Property to Health coverage. The government is continuing its aggressive efforts to increase the amount of insured individuals and through their ever-developing minimal cost-minimal coverage insurance packages, this goal is likely to become a reality.
85
Finance MAIN ENTITIES Aldagi BCI Nikoloz Gamkrelidze General Director 3-5 Kazbegi st. Tbilisi 0179 Tel: (+995 32) 44-48-08 Fax: (+995 32) 29-49-05 ngamkrelidze@aldagi.ge www.aldagibci.ge Aldagi BCI is a wholly owned insurance subsidiary of Bank of Georgia and is the leading non-life and life insurance company operating in Georgia. As of March 2010 it holds approximately 22% of the market share. The company offers a full spectrum of insurance services to both individuals and corporate clients. Aldagi BCI was made up of four companies: Aldagi, Salbi, BCI and Europace. The company is developing quite rapidly. They have seen double-digit figure growth every year since their establishment in 2006 and they are constantly looking to attract new clients and develop new insurance packages based on the needs and demands of their customers. They are currently the leading provider of health, auto and property insurance on the market. They recognize the importance of expansion to benefit the healthcare industry in Georgia and therefore they have become vertically integrated. They own 4 health clinics around Georgia and have a minority stake in one of the largest pharmaceutical companies in the country, GPC. They strongly believe that the best advertisement for themselves is the effective reimbursement of claims and therefore have a strong emphasis on providing high quality and efficient services to their customers. Aldagi BCI was the initiator of insuring war risks, which became very popular among their customers. A lot of large financial companies request these packages. The price of a war risk package depends on the specific conditions of the package. The company had plans to expand into Ukraine along with their owner, Bank of Georgia, however, due to the global financial crisis they have temporarily been put on hold. They were also looking towards Armenia, nevertheless have made the strategic decision to further develop their home market and then to expand abroad.
86
They pride themselves on having a very strong management team and staff. They offer constant training programs for their employees in order to ensure effective and efficient services for their clients. “In 2006, the market was made up of USD 30 million, it now exceed of USD 200 million. The insurance industry in Georgia has huge potential and is growing day by day.” Nikoloz Gamkrelidze General Director
Bank of Georgia George Chiladze CFO / Deputy CEO 3 Pushkin St. 0105, Tbilisi Tel: (+995 32) 44-42-49 Fax: (+995 32) 44-46-44 gchiladze@bog.ge www.bog.ge Bank of Georgia is a leading Georgian universal bank, providing a full range of commercial and investment banking, wealth management, insurance, leasing and card processing services to its corporate and retail clients. The largest retail bank in the country with an 33% market share by total assets, Bank of Georgia serves over 730,000 retail clients through its network of 141 branches and 382 ATMs (the largest ATM footprint in Georgia), as well as through other delivery channels including the Internet, mobile banking and state-of-the-art call center. The bank, together with its wholly owned subsidiaries, is organized into the following Strategic Business Units – Retail Banking, Corporate Banking, Insurance and Corporate Center, Wealth Management, and BG Capital. The bank’s net loss for Q4 2009 amounted to GEL 102.4 million (US$60.7 million) on a consolidated basis, while its equity book value and total assets stood at approximately GEL 594.3 million (US$352.6 million) and GEL 2,938.4 million (US$1,743.1 million), respectively. As of 31 December 2009, the bank’s ROAE and ROAA were -14.1% and -3.3%, respectively. On 29 November 2006, Bank of Georgia became the first company from Georgia and the second bank from the CIS to list its shares in the form of GDRs on the London Stock Exchange (LSE: BGEO). A benchmark stock on the Georgian Stock Exchange (GSE: GEB), Bank of Georgia has been listed on the GSE since 2001. As of 31 March 2009, the
www.ebizguides.com
Finance
bank was approximately 89% institutionally owned, with the remainder owned by senior management and approximately resident and non-resident retail shareholders. Bank of Georgia remains to be the only Georgian entity to be rated by all three global rating agencies: ‘B/B’ from Standard & Poor’s, ‘B3/ NP’ (FC) & ‘Ba3/NP’ (LC) from Moody’s and ‘B/B’ from Fitch Ratings. In March 2008 and 2009, Bank of Georgia received Best Bank In Georgia 2008 and Best Bank in Georgia 2009 Award from Global Finance Magazine.
Bank Republic – Société Générale Gilbert Hie CEO 2 Gr. Abashidze Tbilisi, 0179 Tel: (+995 32) 92-55-55 Fax: (+995 32) 92-55-44 gilbert.hie@republic.ge www.republic.ge Bank Republic, one of Georgia’s oldest privately owned banks, was founded in 1991. Bank Republic is a leading commercial bank with rapid expansion of operations in corporate, retail banking and Financial Services in Georgia. Employing more than 1,000 people, the Bank serves its clients through 47 branches and service centers. In 2006, the Société Générale Group took over a controlling 60% stake in Bank Republic. Société Générale then increased its shares up to 80% in 2009. Access to the global expertise and network of the Société Générale Group is one of the main strengths for Bank Republic. The Bank is equally strong in corporate banking as it is in retail banking and can provide any kind of investment banking services through the Société Générale Group. Bank Republic’s competitive edge lies in its large international expertise in favor of foreign investors, its encouragement of international trade and its facilitation of foreign partners. Bank Republic is very active in the mortgage credit market, in the consumer
www.ebizguides.com
finance segment and in micro financing and provides considerable assistance to small entrepreneurs not only in Tbilisi, but throughout Georgia. Bank Republic has a universal banking business model and aims at creating additional value for its shareholders. Due to the bank’s integration into the Société Générale Group, new risk management tools were introduced. Bank Republic has access to Société Générale’s supplier network, thereby increasing its bargaining power. Bank Republic has proven its resilience as a top financial institution. Even during the August 2008 war and the global financial crisis, the bank did not slow operations and was seen as a highly professional institution with a devoted staff that cares for the safety, security and comfort of its clients. Even during the most severe outbreak of the international and local financial crisis, Bank Republic never stopped offering high quality banking services for its clients and also continued with its expansion of branches and services. The Bank prevented many lay-offs during these difficult times since each staff member carries much value for them. One of the components of the bank’s strategy is operational excellence. The bank is well respected and trusted by its customers, employees and communities and therefore in a good stance for future growth. Furthermore, the continuous support of Société Générale Group will provide Bank Republic with increasing confidence, additional benefits and profitable synergies. Bank Republic’s business strategy is not focused merely on a profit gaining policy, but leads a socially responsible business to fine-tune social problems within the community. Bank Republic aims at assisting the evolution of social and business relations in Georgia to forward it to a newmodernized stage.
87
Finance
HSBC Bank Georgia JSC Guy Lewis CEO 15 Rustaveli Ave. Tbilisi 0108 Tel: (+995 32) 17-7777 info.georgia@hsbc.com www.hsbc.ge HSBC Bank Georgia opened its doors for business in June 2008. The Tbilisi-based bank is a locally licensed joint venture between the HSBC Group, which owns 70%, and members of overseas businesses who hold the remaining 30%. Georgia is a desirable location for HSBC due to its strategic position in the region and its potential to become a regional hub with strong economic growth prospects.
HSBC Bank Georgia offers a full range of Corporate Banking services to local and international corporations with actual or potential international business needs. The bank, based in Rustaveli Avenue, particularly specialises in international trade. Since opening, HSBC has developed a strong core corporate client base, positioning itself as the market leader. The Bank also works closely with HSBC offices overseas in order to identify potential investors looking to invest in Georgia.
“If you are thinking of investing in Georgia and you need a strong international banking partner that you can trust, please give us a call!� Guy Lewis CEO, HSBC Bank Georgia
HSBC Head Office
88
www.ebizguides.com
Finance
International Finance Corporation (IFC) Thomas Lubeck Caucasus Regional Head 5b Nino Ramishvili St. Tbilisi, 0179 Tel: (+995 32) 23-43-00 Fax: (+995 32) 23-43-60 tlubeck@ifc.org www.ifc.org IFC is a member of the World Bank Group. IFC fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing capital in the international financial markets, and providing advisory services to businesses and governments. IFC helps companies and financial institutions in emerging markets to create jobs, generate tax revenues, improve corporate governance and environmental performance, and it likewise contributes to the local communities. Their goal is to improve lives, especially for those most in need and who would greatly benefits from growth. Georgia became a shareholder and a member of IFC in 1995, in the aftermath of the economic collapse and civil unrest after independence. Since then, IFC has been supporting the private sector, the main backbone of the country’s economy. As of March 2010, IFC has committed USD 453 million to 31 projects across a variety of sectors. As part of their regional strategy in Europe and Central Asia, IFC’s current priorities in Georgia include the facilitation of investments in infrastructure, renewable energy and agriculture and a support network for small and medium enterprises. In addition to its investment program, IFC has been providing advisory services to Georgian organizations on corporate governance and food safety improvement. IFC emphasizes five strategic priorities for maximizing its sustainable development impact: • Strengthening its focus on frontier markets, particularly the SME sector; • Building long-term partnerships with emerging global players in developing countries; • Addressing climate change and environment and social sustainability activities; • Addressing constraints to private sector investments in infrastructure, health and education.
www.ebizguides.com
• Developing domestic financial markets through institution building and the use of innovative financial products. For all new investments, IFC articulates the expected impact on sustainable developments and as the projects mature, IFC assesses the quality of the developments realized.
Imedi L International Alexander Lordkipanidze General Director 20 Chavchavadze Ave. Tbilisi 0179 Tel: (+995 32) 25-00-88 Fax: (+995 32) 29-30-75 lord@imedi-l.com www.imedi-l.com
Imedi L International was established in 1995. It is one of the largest insurance companies in Georgia with a 25% market share. They provide their clients with the full spectrum of insurance packages, including property, auto, liability, medical, and life insurance. Imedi L is the sole insurance company on market which is certified by Moody International and holds a quality assurance certificate ISO 9001:2000. They pay close attention to their clients and to the changes in the market and will design specialized packages to meet the demands and needs of their customers. Today, all the products offered by Imedi L are in accordance with the rules and conditions of insurance products on the western market. Imedi L boasts convenient, comfortable and cheap insurance packages. They look to deliver inexpensive, yet standard products that are easy to understand for the customers. Imedi L shares their risk portfolio with leading reinsurers on worldwide market, including Scor as their biggest partner and ACE group. Risks are therefore distributed through their International partners. In 2007, the European Bank of Reconstruction and Development (EBRD) became one of the main shareholders of Imedi L International and owns 34% of company shares.
89
Finance
In November 2008, Bank Republic, Société Générale Group, one of the leading banks in Georgia, and Imedi L signed a strategic partnership agreement. According to the agreement, the life of any borrower who takes out credit from the bank will be insured, while in the case of mortgage loans, in addition to life insurance, the property will likewise be insured. Imedi L International also has partnerships with other Georgian banks including HSBC, BTA, and Cartu Bank. Imedi L International operates all over the country as a fully licensed insurance company and offers a wide range of insurance services. The company has a head office in Tbilisi and 9 regional branches in Georgia. Imedi L claims its financial strength, reliable foreign re-insurers, high-class management structure and the professionalism of its employees is a guarantee to provide a safe future for their customers. “We offer prompt and efficient service through our head office and 9 branches throughout Georgia and pride ourselves on the slogan ‘Stability for the Changing World” Alexander Lordkipanidze General Director
Irao Vasil Akhrakhadze Director 46 A.Kazbegi St. Tbilisi Tel: (+995 32) 94-91-11 Fax: (+995 32) 36 93 92 akhrakhadze@irao.ge www.irao.ge Irao International Insurance Company is one of the most competitive and fast-growing organizations on the Georgian insurance market. It prides itself for its expert management team, which has much experience in the insurance industry. The main principles of the company are to satisfy customer’s needs and to establish a long-term business vision. Such an approach to its business strategy has ensured significant success for the company within quite a short period of time. Irao offers high quality services in all types of insurance available on the local market. For individuals Irao offers auto, property, and travel
90
insurance. For corporations they offer auto, cargo, health, property, and financial risk insurance. Since January 2007, a plenipotentiary founder and partner of Irao is the Vienna Insurance Group, which has a wide financial network in the CIS and European countries. In the EEC member countries, the Vienna Insurance Group is one of the largest investors of insurance activities. Furthermore, Irao International Insurance Company is the exclusive insurer of the AIOC, BTC (Baku-Tbilisi-Ceyhan) and SCP (South Georgia) pipelines on Georgian territory. This is just the beginning of their impressive list of clients, which also includes DHL, Deloitte, Marriot, Geocell, Basis Bank, TBC Bank, Wissol, Batumi Oil Terminal, Tbilisi City Hall and The Ministry of Finance of Georgia.
Kor Standard Bank (KSB) George Glonti General Director 43 Chavchavadze Ave. Tbilisi 0162 Tel: (+995 32) 55-00-00 Fax: (+995 32) 50-77-07 george.glonti@korstandardbank.com www.korstandardbank.com KOR Standard Bank (KSB) was established in 2008 as a result of the merger of KOR Bank and Standard Bank. KOR Bank, which is owned by the UAE’s Dhabi Group, first bought 100% shares of Standard Bank and then the two banks merged. This merger represented the combination of Standard Bank’s well-established network of braches and KOR Bank’s access to great capital though its shareholders. KSB has gained a significant market share and is one of the largest universal banks in Georgia. KOR Standard Bank has now finished their rebranding. The company has recently undergone an entire rebranding and they have created a new corporate style, slogan and logo. The Bank actively lends to small and medium size businesses with a focus on agro business, the retail segment and any SME that is looking to grow. Due to the fact that the bank is backed by Dhabi group, KSB’s customers are provided with a strong sense of reassurance knowing that there are huge resources backing the bank. The bank’s corporate clients know that at anytime, no matter how large they aspire to grow, the bank can support them. Therefore KSB positions themselves as the bank of choice with regards to SMEs looking to grow.
www.ebizguides.com
Finance
KSB also places a large emphasis on comfort of doing business through the services offered. As most banks in Georgia provide similar services and rates, KSB stands out through their ease of doing business and by being friendly and transparent. They look to establish long-term partnerships with their customers and strive to offer the best services possible. They work with their clients in order to provide services that meet the client’s needs. They are working to attract a larger share of the market based on this concept. They strive to promote themselves to potential clients as a bank that can offer new opportunities and possibilities. They have plans to become more of a technologybased bank and less of a physical bank, however they are opening new branches throughout Georgia in key locations such as Poti and Khashuri. Currently they have 24 branches in their network. In the long term they are looking to become an international bank, operating in the region with a focus on the Middle East.
ProCredit Bank Dr. h.c. Sascha Ternes Director 154 D. Agmashenebeli Ave. Tbilisi 0112 Tel: (+995 32) 20-22-22 (ext. 1130) Fax: (+995 32) 20-22-22 (ext. 1131) s.ternes@procreditbank.ge www.procreditbank.ge Activity: Banking ProCredit Bank Georgia has been operating in Georgia since 1999. They are a developmentoriented full-service bank and are the third largest bank in Georgia. They offer excellent customer
www.ebizguides.com
service and a wide range of banking products. In their credit operations, they focus on lending to small and medium-sized enterprises. ProCredit Bank Georgia’s philosophy behind this scope of lending lays behind the fact that they are convinced that these businesses create the largest number of jobs and make a vital contribution to the economies in which they operate. ProCredit Bank focuses on responsible banking by building a savings culture and long-term partnerships with customers. They were the first bank in Georgia to offer micro financing plans and became the trendsetter for this service. As of 2010, their branch network consists of 59 branches all across Georgia. They employ about 1,800 people and their total assets make up about $430 million with an equity of approximately $60 million. Their shareholders expect a sustainable return on investment, but are not primarily interested in shortterm profit maximization. ProCredit Bank Georgia invests extensively in the training of their staff in order to create an enjoyable and efficient working atmosphere and to provide the friendliest and most competent service possible for our customers. ProCredit Bank Georgia participates in many social initiatives, for example the ‘Help the Children’ project that offered much need support to children affected after the 2008 conflict. They maintain a strong emphasis on being a reliable and stable financial institution in the Georgian market and work hard to maintain long-term relationships with their clients. “If you are looking for the international reliable banking partner in Georgia, ProCredit is the right place” Dr. h.c. Sascha Ternes Director
91
Finance
TBC Bank JSC Vakhtang Butskhrikidze CEO 7 Marjanishvili st. Tbilisi 0102 Tel: (+995 32) 27-27-27 Fax: (+995 32) 77-27-74 vakhtang@tbcbank.com.ge www.tbcbank.ge Activity: Banking TBC Bank JSC is one of the largest, privately held, universal banks in Georgia. The Bank offers a wide range of banking products and services. It is owned by a powerhouse of local and international financial institutions including the International Finance Corporation (IFC), EBRD, German Investment Corporation (DEG), FMO, UK and US Institutional Investors, and Georgian private investors. “TBC Bank has the highest public awareness among Georgian banks which helps us in communication with corporate clients and private businesses. Moreover this helps to realize more deposits and bring in more loans.” Vakhtang Butskhrikidze CEO TBC Bank was established in 1992 and within a decade it became one of the largest banks in Georgia and a pillar of stability in the Georgian financial sector. It has maintained its position ever since and holds 25.3% of the country’s banking assets, 26.4% of the country’s credit portfolio and 25% of the country’s banking deposits.
Bank has positioned itself as a bank with a young and progressive-minded professional management team. Specifically, TBC Bank worked hard to change the mentality of its customers by offering a more welcoming and transparent approach to banking. Today TBC Bank faces a very important task of leading the company through the new stage of development: transforming the bank into a transnational financial institution. They are present in Azerbaijan and looking at, as well as weighing the potential of other countries in the region. In 2010, TBC Bank announced that it would be increasing its credit portfolio by 100 million GEL over the course of the year. They have also confirmed an interest to focus on financing trade operations for their corporate clients. Deposits have reached a historical maximum in 2010. As of March 31st, 2010, deposits of only physical individuals were more than 708 million GEL, while at the beginning of the year that figure was 660 million GEL. “After the post-war period of 2008 this was the first quarter when the credit portfolio increased. Despite the fact that the first quarter of the year is always slower, this year [2010] the credit portfolio increased by 50 million [GEL] and the tendency of growth should continue in the second and third quarters too.” Vakhtang Butskhrikidze CEO
TBC Bank’s outstanding performance indicators reflect superior growth in the bank’s franchise and a strong increase in business lending and retail funding. The bank’s good risk management track record improves its operating environment and well-diversified funding base. TBC Bank capitalized on its greater mobility and faster decision-making to gradually gain a substantial market share. The
92
www.ebizguides.com
Finance
TBC Head Office
www.ebizguides.com
93
94
ENERGY
95
Energy OVERVIEW Since Georgia gained independence in 1991, the government has sought to improve the energy sector dramatically. The days of electricity and gas shortages are almost over as virtually all of the country is lit and has access to natural gas. Georgia has also made notable progress towards energy security and independence as gas imports have been diversified and steps are being taken to make the country self-sustainable in terms of electricity supply.
Once the hydro power potential is fully utilized, the export of electricity will be a significant source of revenue for the state
Ministry of Energy’s emblem
The constructions of the strategic Baku-TbilisiCeyhan oil pipeline and the South-Caucasus gas pipeline have made significant contributions to the security of the Georgian energy sector. These pipelines transport energy resources from Azerbaijan through Georgia to Turkey, where they are then transported further west into Europe. Large investments into the energy sector by both the government and private investors have made it more efficient and stable. Investments are being made into hydro and thermal power plants, electricity transmission lines and distribution networks, and gas and electricity metering systems. As each sector of the Georgian economy continues to grow, a significant increase in domestic energy consumption is expected. Therefore the government considers developments within the energy sector to be among its priorities.
Power supply of Georgia, source USAID
96
www.ebizguides.com
Energy ELECTRICITY When Georgia became independent in 1991, they took steps towards rebuilding their energy sector with the construction of electric power stations. Since then, Georgia has seen massive growth within the electricity industry and in 2007 Georgia became a net exporter of electricity for the first time. The electricity transmission network in Georgia comprises of 500, 300, 220, 110, 35, 10 and 6 kV lines connecting Georgia with Turkey, Russia, Azerbaijan and Armenia. Out of these countries, Turkey is the most attractive market, considering that with the existing 220kV transmission line and DC link, no
synchronization is required. Furthermore, once the construction of the 400-500kV transmission line is completed (due tentatively in 2012) the capacity for export will increase dramatically. The electricity sector in Georgia is mostly privately owned. However, part of the transmission and the largest hydro power plant are owned by the state. Distribution is fully privatized. Furthermore, the generation assets have been fully privatised in the last few years, although this still leaves major power plants such as Enguri HP and Vardnili HPPs as state owned.
 
Hydro power potential is estimated at up to 80 billion kWh p.a., of which up to 60 billion kWh may be economically attractive
www.ebizguides.com
97
Energy
Tbilisi lit up at night
HYDROPOWER / GENERATION Hydropower plants (HPPs) dominate Georgia’s generation system. This is due to the large quantities of hydropower at their disposal. There are 26,000 rivers flowing throughout Georgia, out of which 300 are significant for energy production, with a total technically feasible potential of 80,000 GWh/year. However, currently only about 10% of this potential is being utilized. Approximately 85% of the electricity in Georgia is generated by HPPs. As oil prices continue to serge worldwide, hydropower is becoming increasingly more popular as an energy substitute. Considering Georgia’s natural water resources, this factor plays a significant role in the development of the energy sector.
Electricity generation in Georgia is dominated by hydropower plants (HPPs) as Georgia has the second richest hydro resources in the world
OIL AND GAS EXPLORATION Georgia has eleven confirmed oil fields, all with reserves of 28 million tons that are yet to be explored. The Black Sea shelf is suspected to have an oil potential that reaches between 70 million and 1.3 billion barrels. Foreign companies do the majority of the oil exploration and extraction works in Georgia.
Potential investors will be able to enjoy a unique ownership advantage in hydropower, as newly built power stations will remain the exclusive property of the investor. This is a policy that is not generally practiced in other countries. Enguri HPP is the main generation asset, which has an installed capacity of 1,300 MW. There are also a number of medium and small-scale HPPs that generate electricity either throughout the year or on a seasonal basis. All hydropower plants are privately owned.
98
Oil extraction and exploration works are conducted by both Georgian and foreign companies
www.ebizguides.com
Energy
During the last ten years, Georgia has played an important role as a strategic crossroad for hydrocarbon transit in the Caspian region. British Petroleum (BP) reportedly invested USD 5 billion in order to develop the three major oil and gas pipelines that cross Georgia.
will account for 10% of the world’s power generation by the year 2025.
• The Baku-Tbilisi-Ceyhan pipeline, which was completed in 2005 can transport up to a million barrels of oil a day from Sangachal terminal in Azerbaijan to Ceyhan on the Turkish Mediterranean coast.
• High-speed zone: which include the mountainous regions of Southern Georgia, Kakhaberi Vake, and the central region of Kolkheti Valley. The working duration period is more than 5,000 hours per year.
• The Western Route Export Pipeline, transports oil from the Chirag field in the Caspian Sea via Sangachal terminal in Azerbaijan to the Supsa terminal in western Georgia and is capable of transporting up to 155,000 barrels of oil a day.
• Partly high-speed and low-speed zone: The Mtkvari Gorge from Mtskheta to Rustavi, Southern part of Javakheti, Black Sea line from Poti to Kakhaber Vake. The working duration is 4,500 - 5,000 hours per year.
• The South Caucasus Pipeline (SCP) carries natural gas from the Shah Deniz field in the Caspian Sea to customers in Georgia, Turkey and Azerbaijan. It is capable of exporting around 20 billion cubic meters of gas a year. The gas supplied through SCP represents a source of future energy security and supply diversity for Georgia.
• Low-speed mountain range effective exploitation zone: Gagra mountain range, Kolkheti Valley and Eastern Georgian lowlands.
The reason for this vast source of energy potential is due to Georgia’s geographical location and terrain. Its territory is divided into four zones:
• Low-speed mountain range limited exploitation zone: Lori Zegani and Sioni water reservoir.
SOLAR ENERGY Georgia is geographically in a perfect location for the generation of solar energy. Most of the country receives 250-280 sunny days a year, which is approximately 6000-6780 hours per year. The annual radiation of the sun varies depending on the region from 1250-1800kw-hour/m2, while the average sun radiation equals 4.2 kwh/m2. The total annual solar energy potential in Georgia is estimated to be 108 MW, which is equivalent to 34 thousand tons of standard fuel. Georgia’s eleven oilfields with confirmed reserves of 28 million tons have yet to be explored
WIND ENERGY Wind energy is becoming an important sector for providing Georgia with natural energy. It is currently estimated to be able to generate 4 billion Kilowatthour of energy per year and research into this energy’s potential revealed suitable regions within the country for the construction of wind power stations. According to scientists, wind power stations
www.ebizguides.com
In the last years of the 20th century, heating systems based on solar energy became increasingly popular in Georgia. This type of generation makes it possible to get water temperatures of 40-500 Cº. Solar energy transformers are an optimal solution for energy generation for different aspects of Georgian life: in the villages of scarcely populated mountainous regions, for shepherds and other farm workers, telecommunication stations and emergency conditions. Solar energy is certainly something that will see continuous growth and is considered to be extremely important for the future.
99
Energy FOREIGN INVESTMENT
Due to its geographical location, Georgia receives plenty of sun exposure. In most regions of the country there are 250-280 days of sunshine a year, which is approximately 6,000-6,780 hours per year
GEOTHERMAL ENERGY In accordance to modern hydro-geological studies, Georgian geothermal water reserves reach 250 million m3 per year. There are currently more than 250 natural and artificial water channels where the average temperature of geothermal waters range from 30 to 110 C. These water channels are grouped into 44 deposits. Within a territory of 3,500 km there are borehole wells with a water temperature that reach 85º C. More than 80% of the geothermal deposits are in Western Georgia. Another major potential for Georgian geothermal energy is that Poti, one of the most important port cities of the region, could be supplied with geothermal water through the Kvaloni and Menjisi water deposits, which in effect could become a very lucrative source of energy.
Georgia has created the most favorable environment for investments in order to develop Georgian Hydro Greenfield Projects by offering Greenfield Projects based on Built-Own-Operate (BOO) principle. By signing the memorandum of understanding (MoU) with the Government of Georgia, investor’s gain its full support at all stages of investment. In this regard the Government of Georgia approved the State Program – “Renewable Energy 2008” in April, 2008. The purpose of this state program is to approve the rule of construction of new renewable energy sources by attracting foreign investments. According to this program, special conditions were set up for small and medium capacity power plants. The minimum number of licenses for power production activity can be obtained on a one–stopshop principle. In this regards it should also be underlined that the operation of all new HPPs are totally deregulated and there is no tariff cap set for them. Investors are free to choose the market and the price for selling the power generated at the new plant. Profitability of the projects could increase even further through the selling of carbon credits. Georgia’s Hydropower energy potential has caused the government to make radical reforms to their policies, thus making the sector extremely attractive to foreign investors, for example, British Petroleum, Czech JSC Energo-Pro, Russian JSC Energy Invest, and Azeri SOCAR Energy Georgia are already present on the Georgian market.
Currently only 18% of hydro resources are being utilized
100
www.ebizguides.com
Energy MAIN ENTITIES BP Georgia C.E. (Neil) Dunn General Director 38 Saburtalo St. 0194 Tbilisi Tel: (+995 32) 593 520 Fax: (+995 32) 593 480 neil.dunn@bp.com www.bpgeorgia.ge BP is one of the world’s largest energy companies, and has been operating in Georgia since 1996. They are a major foreign investor in Georgia, bringing substantial benefits to the country and its people through energy transportation and fuel businesses. BP operates three major oil and gas pipelines through Georgia as well as an aviation fueling business at Tbilisi airport. The Western Route Export Pipeline (WREP), also known as the Baku-Supsa pipeline, was their first investment in Georgia and has operated safely and successfully since 1999. WREP is capable of transporting up to 155,000 barrels of oil a day. The Baku-Tbilisi-Ceyhan (BTC) pipeline began fully operating in June 2006, delivering its first tanker of oil to global markets. With a total construction cost of $4 billion, the BTC pipeline is the first direct transportation link between the Caspian and the Mediterranean seas. At full capacity, it can deliver one million barrels of oil to market, generating important revenues for the Georgian government for decades to come. The South Caucasus gas pipeline (SCP) carries gas from the Shah Deniz field in the Caspian to markets in Azerbaijan, Georgia and Turkey, representing an important new source of gas supply for the region. Following commissioning, first commercial gas was delivered into the Georgian market in January 2007. BP’s aviation fueling business, Air BP, has been present in Georgia since 1998. It operates a terminal at Tbilisi airport providing jet fuel for national and international airline customers. As well as the benefits of direct investment and income from the pipelines and other business, Georgia is also benefiting from a substantial social and economic development investment from BP,
www.ebizguides.com
both along the pipeline routes and across Georgia more broadly.
EnergroPro Radslav Dudolenski General Director 1 Sandro Euli st. Tbilisi 0186 Fax: (+995 32) 43-34-29 r.dudolenski@energo-pro.com www.energo-pro.ge JSC ENERGO-PRO Georgia is wholly owned by the ENERGO-PRO a.s, a Czech based company. The company entered the Georgian energy market on June 29, 2007. Measured in number of customers served, sales and service territory, ENERGO-PRO Georgia is the largest energy company in Georgia, providing electricity generation and distribution throughout its service area. ENERGO-PRO Georgia owns and operates 10 medium size hydro power plants, with a total capacity exceeding 414 MW. 7 of which are located in western Georgia. The company’s service area covers over 70% of the Georgian land plot; within EPG serves over 860,000 customers in the Adjara, Samegrelo-Upper Svaneti, Guria, Imereti, Racha-Lechkhumi, Shida Kartli, Samtskhe-Javakheti, Mtskheta-Mtianeti and Kvemo Kartli; out of which 820,000 customers represent households and 42,000 are commercial and state organizations. Therefore the welfare of each family and social-economic development of the country largely depends on the effective work of our company. Their employees, especially those who have day to day relationship with the customers, shall remember that the services rendered for them must be at the highest professional level with observing the lawful interests of the company as well as customers. JSC ENERGO-PRO Georgia continues active investments in Georgian Energy sector. Company implements number of electricity grid rehabilitation and individual re-metering projects in Georgian regions. By conducing their energy sector development, EPG tries to promote Georgian economic growth, support Georgian business, and concludes contracts with
101
Energy
Georgian companies regarding supply of materials and equipment used in EPG projects. In course of Georgian Business support, EPG thrives to assist social-economic growth and creation of additional work places in Georgia.
Energy Invest Geno Malazonia President 2, Mshvidoba St. Rustavi 3702 Tel: (+995 34) 17 09 00 Fax: (+995 34) 17 09 09 gemal@energyinvest.ge www.energyinvest.ge JSC Energy Invest is a large investment company in Georgia. It is a joint stock company of a Georgian -Russian business group and was founded in 2004 for the purpose of carrying out investment projects in Georgia. The implementation of the projects launched by Energy Invest is aimed at big perspectives and success. Energy Invest’s main shareholders are Russian companies Intergasinvest and Interinvest. The company is also backed financially by Russia’s second-largest bank, VTB. In 2004, Energy Invest entered into Georgia’s business sector with two key projects: It purchased the chemical enterprise Azot in Rustavi and constructed and installed a gas-turbine power station in Gardabani. Energy Invest invested USD 20 million in 2005 in the chemical enterprise Azot. This type of investment serves as an optimal mechanism for stimulating the stability of the Georgian economy. The plant produces ammonium nitrate, which is used by farmers as a fertilizer. The plant’s output immediately increased Georgian fertilizer production by 25%. Energy Invest exports about 90 percent of its fertilizers to the United States, Africa, France, Spain, Greece, Italy and Turkey, as well as ex-Soviet neighbors Russia, Armenia and Azerbaijan. The plant also produces sodium cyanide, used in metallurgy, mining, machine building, the pharmaceutical sector and printing. On January 23, 2006 Energy Invest opened its gas turbine power station in Gardabani. The Gardabani Gas Turbine Power Station is the first successful attempt of Energy Invest’s implementation of the newest power technologies in Georgia. Gardabani
102
Power Station represents an energy site built on the Pratt & Whitney Power Systems FT8-1 type gas turbines. Construction was completed in a record speed of only 4 months. Gardabani Gas Turbine Power Station can annually produce 870,000,000 KWh of electrical energy. Energy Invest is committed to the long-term development of the Georgian economy and has already played a large role in this process through its two projects.
Georgian Oil and Gas Corporation Zurab Janjgav General Director 21 Kakheti Highway 0190, Tbilisi Tel: (+995 32) 24-40-40 Fax: (+995 32) 24-40-41 www.gogc.ge Georgian Oil and Gas Corporation (GOGC) is a state owned LLC with operations in the areas of oil and gas transportation, engineering and construction. GOGC manages the state’s interest in oil production contracts on Georgian territory, coordinates rehabilitation process of the existing oil and gas transportation infrastructure and participates in the development of regional transit routes to fully realize energy potential of The Caspian and Black Sea basins.
International Energy Projects In the past couple of years, GOGC and its predecessor companies have been involved in the implementation of a number of key and strategically important energy projects implemented in cooperation with European Union and United States institutions and with the participation of International Consortiums.
Oil Pipeline Projects At present, there are two major main oil export pipelines crossing Georgia which were constructed through international cooperation: Baku-TbilisiCeyhan Oil Pipeline and West Route Main Export Pipeline.
www.ebizguides.com
Energy
Baku-Tbilisi-Ceyhan Oil Pipeline Baku-Tbilisi-Ceyhan Main Export Pipeline transports crude oil from Azeri-Chirag-Gunashli oil field in the Caspian Sea. BTC pipeline is the first direct transportation link between The Caspian and Mediterranean Seas. The construction costs of BTC exceeded 4 Billion USD. The overall length of the Baku-Tbilisi-Ceyhan Pipeline is 1768 km. The Georgian section of the pipeline is 249km, the Azeri section is 443 km and the Turkish section is 1076 km. The diameter of the pipeline is 42-46 inches. It is one of the longest pipelines in the world. The pipeline comprises 8 pumping stations (2 in Azerbaijan, 2 in Georgia and 4 in Turkey) and is 2800 meters above sea level. BTC pipeline became operational in May, 2005 and in October, 2005 the presidents of Georgia, Azerbaijan and Turkey conducted an official ceremony for the inauguration of oil entering the Georgian section of the pipeline.
West Route Export Pipeline The West Route Export Pipeline (WREP), otherwise known as Baku-Supsa Early Oil Pipeline is the first international hydrocarbons transit project in Georgia that has been successfully and safely operating since 1999. The Georgian side receives significant tariff revenues from the WREP project. The Supsa Onshore Terminal was also constructed within the framework of the pipeline project. The overall length of the Baku-Supsa Early Oil Pipeline is 830 km (Georgian section 375 km). The capacity of Supsa Terminal is 1 million barrels. Crude oil extracted from the oil field Chirag in the Caspian Sea is carried from Sangachal oil terminal through WREP and ultimately to Supsa Onshore Terminal. The transportation of the first volumes of crude oil from Sangachal oil terminal through WREP began in December, 1998.
Baku-Tbilisi-Erzurum Trans-Caucasus Gas Pipeline Through Baku-Tbilisi-Erzurum Trans-Caucasus Gas Pipeline natural gas from Shakh-Deniz and other deposits of the Caspian basin is transported to the markets of Georgia, Turkey and Europe. Baku-Tbilisi-Erzurum Trans-Caucasus Gas Pipeline is 691 kilometres long covering both the Azerbaijan and the Georgia sections. The Georgia section is 249 kilometres in long.
North-South Gas Pipeline The North-South Gas Pipeline (NSGP) system, comprised of two parallel pipelines, is connected to the gas pipeline system of the Russian Federation in the north (thus taking all gas deliveries from Russia) and to the Armenian gas pipeline system in the south. A 700-millimetre (mm) diameter pipeline was constructed in the 1960s and a 1,200mm diameter pipeline in the mid- to later 1980s. Significant improvements have been made during the last three years in terms of construction and design quality improvements and development. The clear reflection of capacity building and technical as well as professional growth is demonstrated by the number of pipeline construction projects implemented solely by GOGC staff. As of today, the pipeline has undergone significant rehabilitation and enhancement.
Natural Gas Pipeline Projects Georgia has two main gas pipeline corridors: the north-south corridor, which allows the import of gas from Russia and Azerbaijan and the transit of gas to Armenia, and the east-west corridor, which allows the transit of Gas from Azerbaijan to Turkey.
www.ebizguides.com
103
Energy
104
www.ebizguides.com
Energy
www.ebizguides.com
105
Energy
Rompetrol Georgia Ltd. Alexandr Albin General Manager 6 Sanapiro st. Tbilisi 0108 Tel: (+995 32) 91-07-27 Fax: (+995 32) 91-07-63 a.albin@rompetrol.com www.rompetrol.ge Rompetrol Georgia Ltd., member of The Rompetrol Group, was established in December 2005 as a partnership between Rompetrol Group NV that today has 95% of the share capital and local partners with 5%. In August 2007, KazMunayGaz purchased 75% of the shares of the Rompetrol Group NV. Through its activities, the Rompetrol Group NV connects the Caspian Sea, the Black Sea and crossing the Mediterranean Sea and reaches the Atlantic Ocean. The mission of Rompetrol Georgia is to provide a stable supply of high, European standard quality fuels on the Georgian market. The enhancement of customers’ loyalty and satisfaction is the main objective of the RPG. Rompetrol Georgia is a major European standard fuel supplier on the Georgian market through retail and wholesale channels. Products are entirely supplied by Rompetrol Rafinare (“Petromidia Refinery”, located in Romania, on the Black Sea Coast), which has adopted the most recent European standards in terms of quality and environment, as a result of major investments in technology. The company provides its customers with fuel that always meet two essential objectives: quality and observing the environmental requirements at competitive prices.
Retail operation Rompetrol Georgia operates the third national coverage network in Georgia, which counts 33 gas stations, 12 in Tbilisi, and 21 in the regions.
Wholesale operation Rompetrol Georgia is the first largest importer of Euro Regular gasoline (RON 92) on the Georgian
106
market. The wholesale activities are performed through 2 storage facilities, in Batumi and in Tbilisi, which covers the entire country operationally, due to their strategic locations. From those storage facilities, fuels are transported at a regional level, both to Rompetrol’s own distribution network and to the company’s wholesale clients.
SOCAR Energy Georgia, Ltd. George Japaridze Executive Director 39a Sairme st. Tbilisi 0194 Tel: (+995 32) 43-97-77 Fax: (+995 32) 43-97-47 gjapar@socar.ge www.socar.ge Activity: Oil & Gas SOCAR Energy Georgia Ltd was founded in 2006 with the aim of providing investments to the Georgian economy by carrying out the retail and wholesale trade of oil products, the importing of oil products and liquid gas and the construction of oil terminals and reservoirs. Since the very beginning of establishment, SOCAR has been able to position itself as market leader within the energy sector of Georgia. SOCAR Energy Georgia Ltd has since established several daughter companies which operate in various spheres. SOCAR Georgia Petroleum Ltd has been operating within Georgia’s oil industry since September 2006. The company’s monthly turnover amounts to tens of millions of USD. The company successfully carries out the import and sale of competitive and high standard oil products. From 2008 it started development of its retail sales network. As of today 32 petrol stations operate in Georgia, which are all well equipped to offer top quality services to their customers. Plans are to increase the number of petrol stations to 60 by the end of 2010. More than 450 people are currently employed by the company. According to the data of 2007, SOCAR Georgia Petroleum Ltd paid 88,400,000 GEL (approx. USD 50, 227,000) to the state budget of Georgia. As for 2008, this amount was equal to 172,217,882 GEL (approx. USD 96,442,000). As a result of this index, the company proudly won an award for “The Largest Tax Payer of the Year”. In 2009 the amount paid to the state budget of Georgia amounted to 162,000,000 GEL (approx. USD 90,720,000). Due to this index, the company not only became the largest
www.ebizguides.com
Energy
tax payer in the energy sector but the largest among all other companies operating in Georgia. The company has also won awards for being the largest investor, the company with the best infrastructure of its petrol stations and as an organization with high social responsibility. One of the strategic directions of SOCAR’s activities in Georgia is focused on the natural gas market. With a view of establishing themselves within this market, SOCAR Energy Georgia founded a daughter company, SOCAR Georgia Gas Ltd, in June, 2007. The company won a tender announced by the Ministry of Economic Development of Georgia
for “Regarding Privatization of Gas Distributing Companies in the Possession of the State” (Decree N 306 of May 13, 2008 of the President of Georgia). According to the order of the President and the agreement of purchase, SOCAR Georgia Gas Ltd should implement a large-scale project of gasification in more than 30 regions. That is to say, during the next three years the company shall build a 2,000 km-long distribution network (mainly of average pressure), which will enable 150,000 new potential subscribers (consumers) to get connected to the common natural gas network.
www.ebizguides.com
The investment to be made by the company is more than USD 40 million. The number of employees in the company will increase to up to 1,000 in the near future. “We are a good investor for Georgia as we are one of the highest tax payers in the country, employ over 2,000 employees and are constantly expanding and developing our state-of-the- art petrol stations.” George Japaridze Executive Director
Wissol Rusudan Kbilashvili PR Manager 74b Chavchavadze Ave. Tbilisi 0162 Georgia Tel: (+995 32) 91 53 15 Fax: (+995 32) 91 56 15 rusudan.kbilashvili@wissol.ge www.wissol.com Activity: Oil and Gas
107
Energy
The Wissol Group, one of the largest commercial groups in Georgia, is the leading player in the energy sector. Since 2007 the group has been represented in the market by its sub-brands: Wissol Petroleum Georgia, Wissol Gas, Air Wissol, Wissol Bunkering and Wissol Gas Distribution Company. Wissol is the first and only oil company in Georgia that has received an ISO 9001:2008 Quality Management Certificate, having held this since 2006. J.S.C. Wissol Petroleum Georgia offers high quality petroleum products and services at its chain of nicely designed petrol stations. The company runs the largest network of petrol and (CNG) gas stations in Georgia and maintains its position as the market leader in this segment. Wissol is an exclusive importer and distributor of the latest Euro 5 standard Italian fuel from API in Georgia. The company introduced API fuel from the Falconara Marittima factory (Ancona) in Georgia in 2007. Wissol secures stable supply of Western EUROPEAN quality products (Super MaxPower, Premium Power, EURO Regular, EURO Diesel PPM10) as well as an economy package (Regular Standard, Diesel Standard L-62) in the chain.
108
Compressed Natural Gas (CNG), the fuel of the future, has been available at Wissol Gas since September, 2007. Wissol is the oil company which pioneered integrated service stations on the Georgian market. Furthermore, the company has captured the jet fuel market as well. Wissol has made a solid investment in Tbilisi International Airport. The company has also entered the marine fuel, CNG and gas distribution markets and Wissol Gas, Wissol Gas Distribution Company and Wissol Bunkering have already cornered their corresponding markets. Innovation and creative thinking are the major assets of Wissol. All the new products and services in the Georgian oil sector are pioneered by Wissol. In 2001 the company introduced the Wissol Card, a type of chip-based card for its corporate clients new to the Georgian market. From May 2009 Wissol has offered the unique GoLive fleet management satellite system, again a first in Georgia, to its corporate clients. On 1 October 2007, Wissol pioneered a cumulative discount card – the PIRVELI Card, which offers special loyalty schemes for the individual clients. Wissol is the biggest employer in the Georgian energy sector.
www.ebizguides.com
Energy
www.ebizguides.com
109
110
INDUSTRY AND TRADE
111
Industry and Trade OVERVIEW According to the National Statistics Office of Georgia, over USD 200 million was invested in the manufacturing industry in 2009, which as a result saw the opening of nearly a thousand manufacturing plants. Due to this increased investment, from both foreign and local investors, job opportunities are being created in the sector, productivity and industrial exports are on the rise. Tbilisi is home to 66% of all of the industrial production, followed by Kvenmo Kartli in the eastern region of Georgia, which turns out around 9%, while the western regions of Imereti and Samegrelo-Zemo Svaneti produce approximately 5%. Georgia’s most lucrative and largest industries come
scrap metals, copper ore and concentrates, nitric fertilisers, nuts and walnuts, seeds, wine, and crude oil.
INTERNATIONAL TRADING PARTNERS Georgia’s main trading partners are: Turkey, which is Georgia’s largest trade partner with 18.4% of the total trade. Azerbaijan is currently second with 9.9% and Ukraine is in third place with 9.1%. The US, China, UK, Russia, Germany, Bulgaria, Canada and Armenia are also key trading partners with Georgia. According to statistics published in January 2010, Georgian ferro-alloys and scrap metals tops the list of exports to Turkey. Azerbaijan imports Georgian cement and pharmaceuticals while Ukraine buys ethyl alcohol and wine.
MANUFACTURING STATISTICS
Since the old times, Industry and trade has always played an important role in Georgia’s economy
from the production of mining and fertiliser; they both make up the bulk of Georgia’s exports. They do however have many other products that are seeing a steady increase in demand, for example ferro-alloys, semi-processed and unprocessed gold,
The Financial Stability Report produced in 2009 by The National Bank of Georgia has reported that the manufacturing industry made up 7.6% of the country’s Gross Domestic Product; this was the third largest sector after trade (13.5%) and agriculture (9.6%). According to the latest figures available, the manufacturing sector was worth 4 billion GEL in 2008, which saw an increase of 400% since 2003. This increase also influenced the productivity index, which showed a double in total output from 2003.
One of the many modern manufacturing plants materializing in Georgia
112
www.ebizguides.com
Industry and Trade
EFES NATAKHTARI BREWERY
Today, Georgian industry holds 22.1% of the total volume of loans from Georgian banks – nearly 660 million GEL according to the National Bank of Georgia. This sector is still developing and expecting to see considerable growth in the future.
NUT EXPORTS The Georgian Sector Competitiveness Overview 2009 report from the World Bank and International Finance Corporation lists Georgia as one of the top five global exporters of nuts. Over 70% of all Georgian exports to the EU in 2009 were nuts, approximately USD 45.9 million according to the Georgian Ministry of Agriculture. AgroNuts, a joint investment of Loyal Capital Group B.V and the European Bank for Reconstruction and Development are one of the biggest competitors in the global hazelnut industry. Their plant has an annual capacity of 1,200 tons a month and produces five types of hazelnuts, including, unshelled, roasted, diced, paste and sugar coated.
www.ebizguides.com
TRAINS AND PLANES Two heavy manufacturing factories in Tbilisi have reinvented themselves from Soviet-era industrial plants into modern exporters. JSC TAM-Tbilisi Aircraft Manufacturing represents the largest engineering plant in the Caucasus region. The company’s main focus is aircraft construction – both military and civil planes. Tbilisi’s electric locomotive plant, JSC Elmavalmshenebeli, is the largest producer of DC main line electric locomotives in the former Soviet Union. Electric locomotives produced by the plant are used in over 50% of all freight trains on Russian and CIS countries’ railways.
WINE EXPORTS Wine is probably considered to be one of the most developing products for export on the Georgia market as Georgian wine continues to grow and expand on foreign markets. Only about 10% of the total wine produced is kept on the local market, while the remaining 90% is exported to other countries. There are over 200 wine bottlers in the country; according to statistics published by the Ministry of
113
Industry and Trade CHOCOLATE EXPORTS The Georgian chocolate industry is another sector with vast potential for growth and is becoming a leading player on the global market. In February 2010, Barambo started manufacturing 30 types of confections in its new plant in Natakhtari, near Tbilisi. The factory represented an estimated USD 20 million investment. They are focusing on the Georgian market but are looking to expand internationally in the coming years.
Georgia’s mild climate makes it an important agricultural producer, raising a growing range of subtropical crops including tea, tobacco, citrus fruits, and flowers
Agriculture. 50 wine companies exported over 6 million bottles of wine to 42 countries in the first two quarters of 2009. Wine exports to the EU were worth nearly USD 6 million in 2009, 28% of all wine exports and nearly 10% of total exports to the EU. Traditionally, wine has been one of Georgia’s largest exports, with around 80% going to the Russian market prior to the 2006 Russian embargo. The industry has been working hard to replace the large market loss and today CIS countries Ukraine (36.7% of wine exports), Belarus and Kazakhstan are the largest buyers of Georgian wine.
The manufacturing industry made up 7.6% of the country’s GDP in 2009
114
www.ebizguides.com
Industry and Trade
Popular local chocolate cafe on Rustaveli Avenue
MAIN ENTITIES Batoil Ltd.
Activity: Production and Supply of Oil
Archil Paichadze CEO 65 Noneshvili St. Batumi 6007 Tel: (+ 995) 222-50-302 Fax: (+ 995) 774-93-367 info@batoil.ge www.batoil.ge
Batoil, which started refining sunflower-seed oil and producing Georgian oil in 2006, currently supplies Georgian, Turkish, Armenian and Iraqi markets. The company has already started making the necessary procedures to enter new markets such as Israel, Syria and other Eastern countries. The annual turnover of the company in 2009 was approximately USD 33.5 million; USD 7.25 million of which was as
www.ebizguides.com
115
Industry and Trade
In 2009, 70,000 liters of refined oil was exported to the Republic of Iraq, 550 tones of sunflower seeds to Armenia, and 65,000 tones of Kopton (a raw material used to produce oil) was exported to Turkey. Based on the company’s market research, they forecast that the volume of oil sales will reach 9 million tones in 2010. Presently they occupy a 30% share of the domestic market, but have aspirations of increasing this figure to 45-50%.
Eniseli Wines LLC Nikoloz Panchulidze Director 28 Mtskheta St. Tbilisi 0131 Tel: (+995 77) 45-08-01 info@eniseliwines.ge nikapanchulidze@yahoo.com www.eniseliwines.ge
The global economic downturn did affect Batoil. An increase of interest rates and the deficit of credit resources affected their turnover resources. However that did not affect the realization of Batoil’s products. The main obstacle for the company is competing against importers competitive prices. “Georgian products are really competitive on the world market despite being less advertised. The main goal is introducing our products to foreign markets and the role of the Government is playing a key factor in that.” Lukhum Kapanadze Director
Eniseli Golden medal 2010 Saperavi wines
Eniseli vineyard
116
www.ebizguides.com
Industry and Trade
Eniseli Wines LLC was established in 2007. The company has a total of 42 hectares of vineyards. They own 8 hectares of an old Saperavi grape vineyard, 6 of young Saperavi and 6 of Merlot, all planted in 2007. These vineyards are located near the village of Eniseli in the Kvareli district of Kakheti Georgia, approximately 150 km outside of Tbilisi. The company also owns 22 hectares of Saperavi vineyards on slopes in Zegaani, in the Gurjaani district of Kakheti. Eniseli Wines uses European-made wine processing equipment and French oak to age the Mukuzani wine. Georgian Kvevri (clay amphorae) is also used to ferment wine in the traditional Georgian method. There are several historical-ethnographic sights near Eniseli, including the Nekresi Monastery from the 4th century and Gremi, the royal citadel and church from the 16th century.
of Commerce and Industry and the Georgian National Museum and Wine History Foundation. The jury was staffed with wine experts from Great Britain, Sweden, France and Holland. Eniseli Wines’ Saperavi wine received the gold medal in the Red wine, dry light-bodied category. They also received Diplomas of High Quality for their Kakhuri white and for their Baraka. Currently wine tours are available for wine testing in Eniseli. They plan to develop a guesthouse for tourists to stay overnight in the vineyard as their vineyards are located in the valley of the Alazani river in Kakheti, which is a beautiful area within Georgia’s famous wine region. Of all the Georgian wine producers, Eniseli stands out as one of the best new wine companies producing high quality wines.
Georgian Industrial Group
Eniseli Wines are made by the hand of one of the most famous winemaker of Georgia, David Maisuradze. The company produces high quality, well-balanced Georgian brands of wine including Saperavi (dry red), Baraka (dry red from Saperavi grape), and an appellation of controlled origin Kindzmarauli (semi sweet) all from Eniseli vineyards. On their Zegaani vineyards, they produce an appellation of controlled origin Mukuzani (red dry, usually aged in oak).
Natia Turnava General Director of Georgian International Energy Corp. 14 Gazapkhuli Str. Tbilisi 0177 Tel: (+995 32) 21 03 31 Fax: (+995 32) 21 03 22 n.turnava@gig.ge www.gig.ge
Eniseli Wines also produces dry white wines Kakhuri and Tsinandali from Tsinandali appellation of controlled origin Rkatsiteli vineyards in the Telavi region of Kakheti.
The Georgian Industrial Group is a holding company, which embraces and manages over forty companies. Georgian Industrial Group was established in 2006. It has already invested tens of millions of dollars in the local economy and continues to support prospective businesses.
The company plans to start production of a Merlot from 2011. All wines are in limited quantity. Total production per year is approximately 100,000 bottles however, they plan to increase their production capacity upon an increase in market demand. They are open to investors looking to create a partnership in order to further develop their operations. The winery is small, but places a large emphasis on producing high quality wines. They currently export to the United States (Washington DC, New York, San Francisco), the Ukraine and Turkey, but are looking to branch out to new markets of EU and Eastern Europe. In the US, their wines are imported by one of the leading Georgian wine import companies, Georgian Wine House (www.georgianwinehouse. com). In May 2010, Eniseli Wines became champions of the 3rd Georgian National Wine Competition “Georgia Cradle of Wine” arranged by the Georgian Chamber
www.ebizguides.com
Currently, Georgian Industrial Group is the largest holding company within the country. GIG embraces a number of subsidiary companies operating in energy sector, acquiring and processing of natural resources, production of building materials, logistics service, real estate development, media and etc. Georgian Industrial Group considers its number one priority the revival of Georgian manufacturing and development of the heavy industry. GIG actively cooperates with major Georgian and foreign partners. The holding puts great effort in implementing various social projects and in supporting local population. About 3,000 professionals are employed at the Georgian Industrial Group. Subsidiaries are concentrated on effective acquiring and processing of country’s resources, which in fact fosters long-term development and success of the Georgian industry.
117
Industry and Trade
The vision and strategic objectives of the Company: • To be a western type, reliable market leader in the region; • To have strong ties with international institutions and foreign partners; • To be highly admired organization for it’s employees; • To be a stronghold of Georgian economy
of Rustavi, 35 KM from Tbilisi. Once upon a time, Rustavi used to be the country’s most prestigious metallurgical city. GeoSteel has taken a lead to revive the steel industry in Georgia. The production facility of GeoSteel LLC is spread over 13 hectares with a capacity to install 175,000 tpa, one 35 Ton EAF, two strand Billet caster and TMT Bar Mill along with a 50 tpd Oxygen Plant.
The companies under the GIG include: Georgian International Energy Corporation, Saqnakhshiri, Intertrans, Globaltrans, Kutaisi Auto Mechanical Plant, Tiflis City, Georgian Media Association, GBC Holding, Industria Kiri, and Orbi Durnuki Road Metal Factory’s.
Their principal market is Georgia and neighboring Armenia, but they are also looking to Azerbaijan and Iran.
GeoSteel LLC Hardeep Singh General Director 36 David Gareji St. Rustavi 3700 Tel: (+995 34) 14-10-11 Fax: (+995 34) 14-10-07 hsingh@geosteel.com.ge www.geosteel.com.ge Activity: Steel Reinforcement Bar Manufacturer GeoSteel LLC is one of the largest foreign direct industrial investments in Georgia. It is a Joint venture of JSW Steel Netherlands BV [Wholly owned by JSW, India] and Georgian Steel Group Holding Ltd (GSGHL). JSW is a trusted name in global steel manufacturing having interests in Mining, Energy, Cement, Infrastructure, Building-Systems and Logistics. GeoSteel LLC manufactures high quality Thermo Mechanical Treatment Steel and has set a new quality benchmark. The goal of the company is to provide the Caucasian region with the best quality construction steel reinforcement bars produced in the world, meeting British, European, ASTM, JIS, and GOST standards. They also have as a core capability the ability to engage in customer specific steel developments. Geosteel is composed of highly motivated employees. They aspire to engage, develop and inspire local human resources and continuously expand their business process, adopting safe and environmental friendly practices. GeoSteel’s plant is located in the industrial city
118
Georgian Glass and Mineral Waters Company (Borjomi) Zaza Kikvadze General Director 25 Chavchavadze Ave. Tbilisi 0179 Tel: (+995 32) 48-44-84 Fax: (+995 32) 22-36-68 zkikvadze@borjomi.com www.borjomi.ge After Georgian Glass and Mineral Waters company won an advertised bidding for an exclusive right to extract and bottle Borjomi in 1997, it has been controlling all the stages of extraction, bottling and distribution of this mineral water. GG&MW’s flagship product is the internationally famous Borjomi, but the company also produces Likani, Bakuriani, and Aqva-viva. GG&MW exports its water to over 30 countries including the USA, Europe, and Asian countries. GG&MW had lost GEL 25 million in 2006 after Russia banned import of Georgian mineral waters. However, by 2008 the company managed to overcome the crisis and sales volumes reached to pre-2006 figures, according to GG&MW. The sales and export of Borjomi mineral water dropped again starting from October 2008 by 30-40% because of the global financial crisis. On March 20, 2009 the Ministry for Economic Development of Georgia held the auction on issue of the license for minerals extraction on the Borjomi mineral water deposit. GG&MW Company became the holder of the license for the term of 25 years. The license was acquired at 8 200 000 USD. “Our success is based on the enormous work performed by us during all these years. As a matter of fact we have operated from crisis to crisis. For
www.ebizguides.com
Industry and Trade
the 15 years period we have overcome three crises and each of them made us stronger than earlier. Practically we have restored the brand Borjomi from ashes and returned to him the former good name.” Zaza Kikvadze (GM)
of the Pernod Ricard Group and presently it holds the same level of importance in the holding company as the company’s primary founder Royal Cooyman. Today, GWS stock is entirely owned by one of Pernod Ricard’s biggest unions called Pernod Ricard Europe.
Georgian Wines and Spirits (GWS)
JSC Healthy Water
Ani Beriahvili Operations Director Achinebuli Telavi 2200 Tel: (+995 35) 07-60-51 Fax: (+995 35) 05-00-65 a.beriahvili@gws.com.ge www.gws.ge
Mikheil Svimonishvili General Director Lot 034/546 Didi Dighomi Tbilisi 0131 Tel: (+995 32) 24-23-24 Fax: (+995 32) 24-23-26 miho_svimonishvili@yahoo.com www.healthywater.ge
Georgian Wine and Spirits, GWS, was one of the first joint-stock companies to produce wine and spirits in Georgia. The company has been operating since 1994. Since then the company has significantly contributed to the development of Georgian viticulture. GWS’s main objective is to produce high-quality Georgian wine and market it domestically and abroad. From its inception, GWS had been carried out jointly with the Dutch Royal Cooymans, the affiliated company of Pernod Ricard Group. Pernod Ricard is the world’s outstanding holding company producing and distributing spirits and owning a market network throughout the world.
JSC Healthy Water is one of the leading Georgian water producers. They were established in 1997 and produce the internationally recognized mineral water, Nabeglavi. In 2009 the company produced 48 million liters of Nabeglavi, which was 5% more than in the previous year. 20% of their total output was exported. For 2010, the company plans to sell a minimum of 50 million liters of Nabeglavi. Apart from Nabeglavi, they also produce spring water under the brand Bakhmaro, which makes up 10% of their total sales.
In the early years of the company, it lacked material and technical resources that would fit the international standards of wine bottling. In 19941996 the company’s business was confined to the exportation of Georgia’s best wine, wine materials and brandy to the Netherlands. The wine materials were then bottled by means of European modern technologies in the Royal Cooymans, and afterwards were marketed in Europe, the CIS countries and Georgia. The end of 1996 inaugurated a new stage in the development of the company. GWS had begun to form primary and secondary viticulture establishments in Georgia thus ensuring the arrangement of the whole production cycle (cultivation and processing of grapes, production, processing, bottling and marketing of wine). At present, the company can successively match the rich traditions of Georgian viticulture with the world’s modern achievements, the quality progressively becomes better and the assortment of products is constantly increasing. GWS is now a major component within the structure
www.ebizguides.com
Building on their slogan “Nabeglavi is better”, they focus on delivering a high quality product to their customers. They boast state-of-the-art equipment and highly trained employees. They export to approximately 15 countries, including the USA, Kazakhstan, Turkmenistan, Ukraine and the Baltic countries. Nabeglavi satisfies all the standards of the EU, which is proven by the according certificate and plans on expanding to the EU market. Their main challenge related to this expansion will be related to creating brand awareness in western markets as there is already very tight competition between other water producing companies. They are confident however that with the right PR campaigns their goal can be reached. At the end of 2009, JSC Healthy Water was restructured. The company’s management formed a holding group called Margebeli that incorporates Healthy Water, Marneuli Food Factory, Marneuli Agro and distribution company Engadi. The company now represents a major player in the agricultural sector of Georgia, but Nabeglavi is still their main asset.
119
Industry and Trade
Nabeglavi was named a favorite brand among Georgians recently when they became a winner of the 2010 Golden Brand Awards. The main advantage of Nabeghlavi is that it is natural mineral water, from an ecologically healthy environment, which maintains its useful properties with the help of modern technologies. Hydro carbonate sodium table water Nabeghlavi, enriched with natural CO2, has a subtle taste and unique curative properties. It is well known to prevent and treat chronic stomach and liver diseases, contribute to the elimination of harmful substances from the human body while enriching it with all the necessary minerals. Their plans for the future include an increase in exports and diversification of their products by including soft drinks and possibly beer. “The local market is already divided between its main players. Our company occupies the leading position. As for exports, we are working hard in order to develop our shares on foreign markets.” Mikheil Svimonishvili General Director
Kazbegi JSC Prof. George Topadze President 68b Uznadze st. Tbilisi 0102 Tel: (+995 32) 94-20-46 Fax: (+995 32) 94-21-52 topadze@kazbegi.com www.kazbegi.com Ten-year efforts of Their company “Kazbegi” have clearly proved that once the company is successoriented and committed, equipped with adequate knowledge, no hardship will block the way to gaining such high ranking positions that at first glance seem to be insurmountable. Having sprung up on the debris of the Soviet economy and civil war ten years ago, “Kazbegi”, the beer producing company, today is a multi-profile business group, occupying successful positions not only in food producing and processing industry, but also in tourism and many other sectors of the Georgian economy including poultry processing and fine timer production and distribution. They were able to achieve this despite permanent struggles and challenges, intentional or random
120
impediments or other serious problems. They have managed to occupy a leading position on the market, ranking high has become Their tradition, They have gained consumers’ loyalty – these are foremost conditions on the way to success of every business. The organic synthesis of local traditions, Georgian talent, unique production culture and world’s highest technologies have laid the foundation for the establishment of a strong and dynamically developing business group whose name has become a synonym of quality and reliability being a perfect example of a success story. They believe that private business is the particular force, the main backbone, on which the state power has to emerge.
Kindzmarauli Marani Dimitri Lebanidze Director 63 Saburtalo St. Tbilisi 0194 Tel: (+995 32) 36-18-50 d.lebanidze@kmwine.ge www.kmwine.eu Kindzmarauli Marani began its operations in 2000 in the most famous Georgian winemaking region, Kekheti. From the very beginning, the company chose a strategy of development involving full control over the entire technological process (from vineyard to wine). In particular, it was planned at the initial stage to purchase land to lay out vineyards with Georgia’s best grape varieties. The basic part of the project was purchasing the land of the former Kindzmarauli farm, which in turn gave the company the right to make and bottle one of the greatest of the Georgian wines, Kindzmarauli. Later, the company’s vineyard asset increased to include Kvareli, one of the best micro regions of Kakheti in terms of climatic and soil characteristics. To acquire the rights to bottle the Manavi, Mukuzani, Akhasheni, and Tsinandali wines, the company also bought land plots in Kakheti’s micro-zones corresponding to the names of said wines. At present, the company owns up to 500 hectares used for service lines and winery areas. Along with this, in 2003, the company laid the foundation for the construction of a winery and completed that project by the end of 2005. At present, the winery is not only equipped with modern wine making technology (manufactured by Italian companies Della Toffola and Fimmers) but also
www.ebizguides.com
Industry and Trade
arouses admiration due to its design. The winery has a laboratory allowing for making any necessary analyses (chemical and microbiological) both of wine and wine juice and the water. The winery has high-quality 15,000-decalitre-capacity oak casks (manufactured by the French firm Radoux) where the best brands of the Georgian red wines are being aged. The production capacity is the processing of 5,000 tons of grapes. The technical specification is developed for and approved by Samtrest, a state owned organization with the mission of protecting the interests of Georgian wines. Currently, Kindzmaruli Marani produces 10 different red wines, 11 whites, and 2 Rose. They have won many awards both locally and abroad. They are constantly looking for new export markets for their high quality.
Knauf George Japaridze General Director 19 D. Gamrekeli St. Tbilisi 0160 Tel: (+995 32) 24-25-01 Fax: (+995 32) 24-25-04 japaridze.george@knauf.ge www.knauf.ge Knauf is a multinational company based in Germany that manufactures and supplies building materials. They are present in about 60 different countries worldwide.
Currently, the Georgian factory does not produce gypsum, the key mineral component of Knauf’s plasterboards, and therefore needs to be imported from Azerbaijan and Turkey. There are plans to establish a Georgian gypsum production plant by 2012. This development would help to reduce costs, making Knauf’s Georgian operations more competitive. They are aggressively seeking to take hold of a larger market share and are using competitive pricing strategies and reliable, high quality service in order to fulfill this objective. As of 2010 they hold about 68% of the market share. Based on their market research, within 3-4 years, the demand of plasterboards will increase to 1015 million m2. The key indicators of this increased demand lies in the booming Construction and Real Estate Development sectors with many new hotels, commercial spaces, and residential spaces under development. Knauf Georgia is preparing to supply this demand and is confident their production capacity will grow with the increased demand.
“I invite all investors looking to Georgia for its many potential benefits to come and do business here. I believe that now is the time to invest in the Construction and Real Estate Sectors as they are ripe with opportunities....just don’t forget to team up with Knauf as your building materials partner of choice” George Japaridze General Director
Knauf entered the Georgian market in 1998, but began as a marketing office for Knauf and did not have a sales department. They acted as Knauf agents and helped their Georgian clients conduct market research and put the clients in direct contact with the Knauf production plants in Turkey, Ukraine, and Austria. In 2006, they began as sales agents, importing Knauf’s interior building materials from abroad and selling them on the local market. They also have a storage facility to maintain a stock of imported plasterboards to suit the demands of their Georgian clients. In 2009 they bought a factory and now sell their products directly from this plant. USD 11 million was invested in the purchase and renovation of the plant. The production capacity of this plant is 6 million m2 of plasterboard and services both the Georgian and Armenian markets. The forecasted sales potential for 2010 is 4 million m2 for both markets and it is expected that the plant will break even by the end of 2010 based on these sales.
www.ebizguides.com
121
Industry and Trade
122
www.ebizguides.com
Industry and Trade
www.ebizguides.com
123
Industry and Trade
Kutaisi Free Industrial Zone Mikheil Tigishvili General Director, Organizer, & Founder 6 Shio Mgvimeli St Tbilisi 0179 Tel: (+995 32) 23-29-97 mikheil@kutaiaifiz.com www.kutaisifiz.com Kutaisi Free Industrial Zone (FIZ) was created in 2009 under the government’s pro free-market resolution. It is Georgia’s second FIZ and is located in Kutaisi, the second largest city in Georgia. It includes access to the railroad and the country’s main EastWest highway. The benefits of the free zone include: Special economic and legal regime, tax incentives, simplified procedures for business registration, less number of licenses and permissions, simplified procedures for obtaining licenses and permissions, no transaction costs, and no currency restrictions. The maximum cost to start a business in Kutaisi FIZ is $ 11,500, which includes a one-time registration fee of $10,000 and the license, a $1,500 annual fee. Logistics costs are payable monthly. Office rent is $12 and $5 monthly for renovated and unrenovated areas respectively. Rent for the industrial area is between $5 and $10 per month and for land it is $5. Pledging to invest more than USD 3 billion in the Kutaisi Free Industrial Zone over the next three years, Egyptian home appliances company FreshElectrics became the first company to operate in the FIZ. The company invested around USD 455 million in the beginning of 2010 to create the FIZ on a 27-hectare plot of territory in the Kutaisi Auto Factory. Currently, a 20,000 square meter area is already semi-rehabilitated and the industrial facilities are being renovated. Fresh Electrics, together with 11 other companies (which are expected to join the project) will operate 12 textile, ceramics and home appliance plants. Kutaisi FIZ has already begun sending goods to its three main markets; Georgia, Azerbaijan and Ukraine. There will be many business parks for trading and services, heavy industries and warehouses of raw materials, and for manufacturing. The Kutaisi Free Industrial Zone is fully managed
124
by Georgian International Holding (GIH). They are in charge of attracting investment for the Kutaisi Free Industrial Zone, increasing awareness of Kutaisi as an investment destination, and to form the industrial zone under the free industrial principles by the assistance of local and foreign investors. They work hand-in-hand with their principal partner FreshElectrics in order to attach new companies to set up operations in the FIZ. “I feel like I’m driving a big and important project for my country and I am proud to say that this will be the first of many!” Mikheil Tigishvili General Director, Organizer, & Founder
Madneuli JSC Giorgi Devadze General Director 3/5 Kazbegi st. Tbilisi 0179 Tel: (+995 32) 47-45-45 Fax: (+995 32) 91-38-61 gdevadze@madneuli.ge www.madneuli.ge Activity : Mining JSC Madneuli is the leading mining company in Georgia contributing to more than 20% of Georgian exports. Madneuli was established in 1975 in Bolnisi region of Georgia. They are a daughter affiliate of GeoProMining Ltd, a multinational group that invests in the metals and mining industries worldwide. The company’s rich history of mining has distinguished them as a respected precious metals producer in Georgia and the post-soviet region. While their past is impressive, they are determined to meet the challenges and opportunities for the future. Madneuli’s vision is to increase their reserves by moving ahead with the existing development of projects, increasing exploration activities around the Bolnisi region, and make acquisitions as opportunities arise. Their values include a commitment to continually improving performance as a responsible corporate citizen while creating shareholder value. Having safe workplaces, cooperating with people in the communities where they operate and adhering to high environmental standards are all important to our future. Providing superior returns to shareholders is a key
www.ebizguides.com
Industry and Trade
part of their strategy. Their focus is on operating efficiently and effectively, assessing and managing risk to make sure production targets are met or exceeded, controlling costs, and developing their human resources. The long-term prospects for base metal producers appear to be very attractive. As population and industries grow, so does the demand for copper. The pace of industrialization in China and other countries, like India, Brazil and Russia, is expected to keep global demand for copper and other base metals high for at least the next decade.
Natakhtari Brewery
than 70% of the Georgian market within the next few years. They face a high degree of seasonality in their home market. Summertime Georgian beer consumption accounts for eight times that of wintertime consumption. Natakhtari is actively engaging in marketing efforts to change the perception of beer drinking in order to change consumer attitude, however they are investing considerably in the development of foreign markets in order to offset the effects of this seasonality. They currently have distribution networks set up in Greece, Cyprus, Azerbaijan, Israel, and Armenia. The products under the Natakhtari Brewery include: Natakhtari, 3D, Natakhtari EXTRA, Kubicek Beer, Natakhtari Lemonade and soft drinks.
Mehmet Kochak General Manager Natakhtari Brewery Natakhtari Village Mtskheta Region 3308 Tel: (+995 32) 18 07 97 Fax: (+995 32) 36 90 91 mehmet.kocak@efes.ge www.natakhtari.com
“In Georgia, there is a long history of beer consumption and even though it is a wine drinking culture, we believe that we can improve per capita consumption by delivering a consistently high quality product to our customers.” Mehmet Kochak General Manager
In 2005, as the result of attraction of heavy investment from “TBC Bank” and “EBRD”, Natakhtari Brewery was constructed and launched. Equipped with ultramodern technologies, there are several favorable factors that led to the creation of Natakhtari. It is in an ecologically safe environment, in close proximity to the capital city Tbilisi, and primarily, unique and rare qualities of the natural Natakhtari water preconditioned construction of the brewery there. In early 2008, Efes beer bought Natakhtari and since then the Brewery has experienced a substantial annual growth rate and domestic market share increase.
Irakli Lomaia General Director 11 M.Kavtaradze St. Tbilisi Tel: (+995 32) 69-02-06 Fax: (+995 32) 69-02-07 irakli.lomaia@nikora.ge www.nikora.ge
Owning to innovative technologies, modern forms and methods of management, Natakhtari Brewery has no analogue in South Caucasus. Lab equipped by latest technological equipment ensures safeness of all production. Excellent raw materials and skillful operations of technical staff determine the quality of Natakhtari Brewery. The Brewery adheres to wellknown German canon of brewing: they brew beer only from malt and water, without any chemical adding. Through careful market targeting, growth of consumer loyalty, and many powerful advertising campaigns, Natakhtari aims at achieving more
www.ebizguides.com
JSC Nikora
Nikora Ltd was established in 1998 with private Georgian capital. The company quickly enlarged its business and soon became the local market leader in food production. The company “Nikora” was legally registered as Joint Stock Company in 2008. It was established a new integrated system of quality management and food safety. (ISO 9001:2000 and 22000:2005) The company is developing in innovative way in compliance with the International Standards. Nikora produces over 400 products under seven brands (packaged fish, half-fabricated products, dairy products, ice cream, soft beverages and wine). In-Trade, Nikora’s 100% owned subsidiary, imports and distributes several brands of beer, soft beverages and other food products.
125
Industry and Trade
The company owns two production facilities located in Tbilisi and Poti (Western Georgia), as well as a retail chain comprising 70 branded small-format stores: 43 in Tbilisi (23 owned) and 37 in the regions. The chain accounts for approximately 55% of the company’s total revenue. Apart from that, Nikora carries out distribution to over 2,000 third-party operated retail outlets countrywide. The company’s strategy covers future increase in the production capacity and strengthening of nonmeat business lines, along with further diversification of product portfolio and retail network expansion. Priorities: • Reinvestment in fixed assets and enhancing the productive capacity • Own distribution-retail system • Establish raw materials base - trout breeding, cattle farms, vineyards Prospects: • Support in Fishery and Farming development • Growth of the Distribution net and Customer Service Improvement • Innovative production by using additional capacities
Design Plans for RAKIA GEORGIA’s FIZ at Poti
126
Rakia Georgia Free Industrial Zone LLC Dr. S K Chatterji General Director Aghmashenebeli St. 47, 4400 Poti Tel: (+995 39) 325 25 4/5/6 Fax: (+995 39) 325 259 info@rakiageorgia-freezone.com www.rakiageorgia-freezone.com RAK Investment Authority (RAKIA) signed a management concession with the government of Georgia in June 2008 to develop a free industrial zone (FIZ) near the existing sea port of Poti. RAKIA Georgia FIZ LLC., a 100% wholly owned subsidiary of RAKIA, is solely in charge of the management and development of the FIZ. RAKIA has wide experience in developing & managing free industrial zones in various parts of the world. Poti Free Industrial Zone is the first in the south Caucasus region and lies on the historic “silk route” linking the east to the west. Poti Sea Port, which is one of the oldest (150 years) and most renowned seaports on the Black Sea, is a profitable port and is currently undergoing considerable expansion. RAKIA has acquired 400 hectares of land around
www.ebizguides.com
Industry and Trade
the port, of which 100 hectares will be used to build a new port terminal and the rest will be used for developing a state-of -art free industrial zone.
Rakia Georgia FIZ LLC is happy to welcome companies to Poti, Georgia to experience the excellent conditions for manufacturing & commerce.
Currently infrastructure, in the form of roads and warehouses, are being built. These will form the basic foundations of the zone. Poti FIZ looks to attract close to a billion dollars in FDI into Georgia and is optimistic about providing employment for around 5000 people in the near future. RAKIA is looking to invest funds in the range of USD 200 million to bring the project into bloom.
“There are many advantages for our FIZ, including the fact that we are next to the Poti port, have access to railways and highways, and when Poti Airport is fully developed, access to air cargo as well. Also our current tariffs are by far one of the lowest in the region. We have a long track record of successfully organizing and administrating FIZs and that gives confidence to investors.” Dr. S K Chatterji General Director
RAKIA Georgia FIZ is inviting investments in the following sectors: • Manufacturing • High Tech industry including Bio-Tech & Information Technology • Small /Medium Enterprises • Raw materials industry • Assembly/Disassembly for export • Import, Storage & Trade • Warehousing & Container storage • Maintenance & Reconditioning of equipments for export • Transport & Logistics • Financial Services, Insurance & Professional Services
Poti FIZ will boast superior competitive advantages such as a strategic location, market proximity, good infrastructure and skilled workforce with many new modern manufacturing enterprises, container stockyards and logistical centres. The project has full and absolute support from the Government of Georgia and as a result extremely investor friendly free-zone regulations are in place. The government is open to suggestions from the investors to amend the laws for the benefit of all stakeholders. For the initial stage, leasing rates in the Poti FIZ are very competitive and attractive, as they are amongst the lowest in the Black Sea region. Lease cost for 1sq.m starts from USD 6 per year for manufacturing companies. Hence, early investors stand to gain considerably on a long-term basis. The rental is fixed for the first ten years. The prices for different types of licenses (manufacturing, trade, commercial, logistics, service/consulting, contracting) start from only USD 2500 per year – the lowest in the EU/CIS region.
www.ebizguides.com
JSC Tbilisi Aircraft Manufacturing (TAM) Pantiko Tordia General Director 181 B. Khmelnitski St. Tbilisi 0136 Tel: (+995 32) 70-84-12 Fax: (+995 32) 70-80-89 tordia@tam.ge www.tam.ge The history of TAM goes back to the early days of the World War II, when the aircraft factories of Taganrog and Sevastopol (Ukraine) were moved to Tbilisi, Georgia. Soon after the move, Tbilisi Aircraft State Association (former Tbilisi Aircraft Manufacturing) launched the production of its first fighter aircraft, the LaGG-3. Through the war, TAM manufactured a number of additional fighter aircrafts for the former Soviet Air Force such as the LaGG-3 and the Yak3. During World War II, the company was the sole supplier of fighter aircraft to the Caucasian front. Tbilisi Aircraft Manufacturing represents the largest engineering plant in the Caucasus region with over 60 years experience in the industry. Today TAM is capable of designing, developing, integrating, producing, and servicing aircraft components and aero-structures, both for military and civil purposes, in order to meet their customer’s requirements and expectations. The company currently focuses on two core capabilities. They provide engineering resources, which includes the design of the preliminary structure of aircrafts including all their components as well as aerodynamic and center-of-gravity calculations. The second area is the manufacturing of both military and civil aircrafts.
127
Industry and Trade
Military aviation products include the production, overhaul, maintenance and modernization of SU25 and MIG-21 type aircrafts and the overhaul of MI type helicopters. The main consumers of the military aviation products are air forces of the CIS countries, countries of Africa, South America, and former Soviet Union nations that own SU-25 class aircrafts and intend to upgrade or repair them. Civil aviation products include the production of the business aircraft ELITE, which suits 6-8 passengers and is made of composite material. They are equipped with Williams International FJ-33 jet engines. The target consumers of the civil aviation products are large corporations, private airlines and physical entities of US, Europe, Middle East and CIS countries. TAM’s products have withstood the test of time and distinguished themselves by their high quality, reliability, and affordable prices. In 2003, the TAM Group was established. This was a result of when Tbilaviamsheni LLC, a company founded by the top management of TAM, took over 100% shares of TAM. Since then the Group has significantly enlarged and diversified its activities in many directions. TAM Group has stakes in numerous subsidiaries and joint ventures in different countries, including the airline TAM Air, TAM Polymer, which produces polyethylene pipes, and the Group’s milestone, Tbilisi Aircraft Manufacturing. TAM’s plans for the future include the development of new civil aircraft products and of aviation freights. Simultaneously, they plan to further develop the SU25 and have it meet international (NATO) standards. This will not only serve the purpose of helping to seek out new markets and reach the full potential of their principal product, but will also help to prolong the product’s life cycle. Another aspiration of TAM is to become a key supplier and partner of the world’s two leading aircraft manufacturers, Boeing and Airbus. • Current foreign partners of Tbilisi Aircraft Manufacturing include: • Elbit Systems (Israel) – Avionics and electrical systems for upgraded SU-25 • Israel Aircraft Industries (IAI) (Israel) – Avionics for helicopters, production of different items for GULFSTREAM type of aircraft
128
• Aircraft Investor Resources (AIR) (United States of America) – Assembly of a 7-seater light business type jet “Tam-Air”, production and design of various items • Growth Management Limited (GML) (Great Britain) – Investments and financial service.
Tegeta Motors George Mshvildadze General Director 12km., D. Agmashenebeli Alley Tbilisi 0131 Tel: (+995 32) 24-44-44 Ext. 1001 Fax: (+995 32) 24-44-44 Ext. 1119 info@tegetamotors.ge www.tegetamotors.ge Activity: Automotive Accessory Distributor The Management team of Tegeta Motors conducted a Georgian market study in 1995 and planned out a promising way to succeed in the business of importing and selling of vehicle tires, oils and lubricants, batteries, spare parts, servicing equipment and tools. In a relatively short period of time the world’s most famous companies of the industry recognized them as an official dealer. They have since then met their professional goals on the Georgian market and we are convinced that correct business administration is a precursor for company’s success. They are the official dealers of their partner’s products. These partners include almost all of the major player in the industry, including Bridgestone, Michelin, GT Radial, Beshina, Continental, BF Goodrich, and many more. The company prides itself on paying special attention to the qualification of their personnel, and as a result they are send certain professionals for trainings to Europe, namely to Germany and Austria, where they engage in training programs recommended by their partners. As a logical aftermath, Tegeta Motors stepped up as the market leader in the Georgian market. Apart from being a distributer of all the products of all the international brands in the industry, Tegeta motors is also able to diagnose and conduct complex electrical and mechanic repairs of the MAN manufactured vehicles, despite the age of the vehicle. They conduct this service in the company’s
www.ebizguides.com
Industry and Trade
various service centers. This is a first for the Georgian market. In order to provide full satisfaction to the customer, Tegeta motors is not only constructing new MAN vehicles, but-customized SCHMITZ-CARGOBULL trailers as well, with follow on warranty and full service conditions. Tegeta Motors is looking to expand internationally into the region and also to continually grow by establishing new service centers and continue to develop new partnerships with reputable brands in the automotive industry.
Teliani Valley Shota Kobelia CEO 2 Marshal Gelovani Ave. Tbilisi 0159 Tel: (+995 32) 31-32-45 Fax: (+995 32) 31-32-49 s.kobelia@telianivalley.com www.telianivalley.com Teliani Valley is the leading Georgian winery with 45% domestic market share and 11% export market share. It is an export-oriented company, exporting 65% of its wines in terms of volume. The company has 5.5 million liters of storage capacity and 85 hectares of vineyards and land suitable for winemaking. In 2009 Teliani Valley produced over 1.1 million bottles of wine.
a circa 12% market share in worldwide exports of Georgian wines, and was at the very early stages of exporting to Russia when the embargo was imposed on Georgian wines in May 2006. The company continues to invest in its Ukrainian distribution capabilities and establishing a footprint in non-CIS markets. The company strives to open new export markets. The young management team is composed of several capable managers. The chief winemaker, Giorgi Dakishvili, was trained abroad and is widely considered to be the best winemaker of the new generation in Georgia. EBRD and Bank of Georgia have been lenders to the company since 2004, a factor that has prepared Teliani Valley rather well for its on-going reporting requirements as a public company. The presence of a large institutional investor, Galt & Taggart Capital, in the company’s board, with two out of the four seats, further improves the corporate governance of Teliani Valley. The future looks very bright for Teliani Valley, as they work hard to expand their export markets and build new dynamic partnerships.
Teliani Valley has a vertically and horizontally integrated business, as it develops vineyards, produces Oak-barrels, has wine grappa and brandy production and has its own distribution networks (Teliani Trading, Teliani Trading Ukraine). It is also the importer of Heineken Beer, Medoff and private label vodkas, Jaffa, and Granini juices in Georgia. The company is a highly acclaimed and creative winemaker, has strong brand recognition and has built an impressive distribution network in three short years. They focus on the rapidly growing on-trade and take-home segments, as the restaurant and organized food retail industries are experiencing rapid growth in Georgia. Having high export growth potential, Teliani Valley exports its wine to more than 25 countries, including Kazakhstan, Belorussia, Finland, China, Canada and Ukraine, accounting for approximately 38% of its revenues. In 2006, the company held
www.ebizguides.com
129
130
REAL ESTATE AND CONSTRUCTION
131
Real Estate and Construction OVERVIEW The real estate and construction sectors in Georgia are among the fastest growing sectors of the Georgia economy. As a result of their unprecedented growth, it is currently attracting many international investors especially in Tbilisi, which is the epicentre of Georgia’s political and economical developments. Since 2008, the real estate and construction industries have moderated due to the conflict with Russia and the global financial crisis; however they still show an average annual growth. This continual growth can be attributed to nonstop economic reforms and substantial FDI inflow. In 2009, transactions in the real estate market showed stable performance and the demand in this market is anticipated to surge after the economic upturn. Due to high demand for residential and commercial space, many construction and development companies appeared on the market. Despite the fact that since 2003 real estate prices have more than tripled, the demand still manages to exceed the supply. As a result, the market has become quite sophisticated and offers development
Restoring one of Tbilisi’s many churches
opportunities across virtually all subsectors, including residential, commercial, retail, hotels and warehouse markets.
 
REFORMS
According to the 2010 World Bank/IFC Doing Business Report, Georgia ranks 7 in the world in respect of dealing with construction permits and holds 2nd place worldwide in ease of registering property
132
Significant reforms have been carried out in recent years to simplify the system of issuing permits in the construction sector and construction businesses are now permitted to use the technical regulations of the OECD and the EU member countries for their construction projects. The Government has also eliminated the need for construction licenses and has simplified the process for the issuing of construction permits.
www.ebizguides.com
Real Estate and Construction
According to the 2010 World Bank/IFC Doing Business Report, Georgia ranks 7th in the world in regards to dealing with construction permits and holds second place worldwide in ease of registering property.
RESIDENTIAL REAL ESTATE More and more Georgians are hoping to move from old soviet style flats into new apartments and improve their living conditions. However, total residential stock per capita is one of the lowest in Eastern Europe and the average household size is much higher than in any other Eastern European capitals. Most of the existing residential units were built between 1945-1985 and are in need of renovation and modernization. With the last years’ progressive increase of GDP per capita and more disposable income, the trend of abandoning oldSoviet style apartments will accelerate and the demand for new residential property will increase.
The high demand for residential space has been followed by the appearance of many new construction and development companies offering a wide variety of newly-built apartments
OFFICE PREMISES A positive effect of the government’s initiative to create a more business-friendly environment is that it has stimulated the development of many new local businesses and attracted international companies. With the number of businesses operating in Georgia increasing, it is resulting in a higher demand for office premises, especially in Tbilisi.
  Georgia is still far behind other Eastern European countries, but growth of the residential sector continues to increase dramatically. This can be seen through the rise in employment of this subsector. However, quality control of project implementation process by developers remains the main risk factor in the residential real estate sector. There are just a number of specialised property management companies capable of dealing with such large-scale projects.
www.ebizguides.com
Tbilisi is far behind other Eastern European capitals in its office stock per capita and there are very few A class office premises in the city. Demand for high-class office premises is higher than existing supply and vacancy rates are extremely low, close to zero. Considering this, there are a significant number of new office space projects currently under development and A & B class office space may double by 2013. Even after the completion of the all the projects under development, per capita stock will still be one of the lowest in major Eastern European cities.
133
Real Estate and Construction HOTEL MARKET Hotel sector growth has been fueled by a rapid development of the tourism industry, annual increase of international tourist arrivals, and by FDI growth. These factors have resulted in very low hotel room vacancy rates and created a high demand for hotel rooms. Within the next few years, three new high class hotels are expected to open in Tbilisi and four in Batumi. There are approximately 350 registered hotels in Georgia and about 8,500 rooms. Considering the newly created high demand and relatively low supply, there are many opportunities for lucrative investments within the sector.
Increasing demand and the very limited supply of new Class A office space have led to over pricing of existing properties allowing landlords to boost prices while keeping overall vacancy rates low
Currently, Georgia boasts five luxury, full service hotels. These include the Radisson Blu, Marriott Tbilisi, Marriott Courtyard, Sheraton Metekhi Palace and Sheraton Batumi. Four additional globally recognized brands are expected to open hotels in the next few years, including Intercontinental, Kempinski, Hilton and Hyatt.
The retail sector of the real estate market is seeing major switches from old soviet-style open markets and bazaars to modern shopping centres
134
www.ebizguides.com
Real Estate and Construction RETAIL REAL ESTATE MARKET The retail sector of the real estate market is seeing major switches from old soviet-style open markets and bazaars to modern shopping centers. Based on announced projects, Tbilisi will have at least an additional 150,000 m2 of shopping center space in the next 3-4 years. This compares to current stock, which is in the 60,000-80,000 m2 range. As a result, Tbilisi will have a higher retail stock per 1,000 residents than Kiev or Bucharest.
WAREHOUSE MARKET The warehouse segment is the least developed part of the real estate sector in Tbilisi. There are currently no A or B class warehouse facilities, and seemingly only a few new projects in the pipeline. These are at very early stages of development with no confirmed completion timelines. This segment definitely has room for growth.
MAIN ENTITIES Axis Giorgi Kapanadze General Director 24 Kazbegi str. Tbilisi 0162 Tel: (+995 32) 24 17 18 Fax: (+995 32) 24 17 17 giorgi.Kapanadze@axis.ge www.axis.com Activity: Real Estate Development Established in 1998, Axis is one of the leading players in the Real Estate Development industry. Axis was the pioneer in introducing new technology, founding its own construction company, producing and supplying its own projects with the highest quality building materials, and providing worldclass services in the development sphere. Axis collaborates with such international corporations as: Mace Group, DTZ, ARUP, Hinman Consulting & Planning and Euro Project Partners. They have in a short time frame managed to rise to the first place in ranking and it became the only development company with properly advanced industry, with more than 1 million sq. ft of territory under development.
www.ebizguides.com
They have successfully completed six modern residential buildings, two railway stations and a shopping center. They have many interesting projects in the pipeline including the first “ultramodern A-Class” business center, the Axis Towers. Under the Axis group are many affiliate companies that together as a group offer such services as Property Development, Project Management, Planning and Design, Sales and Marketing. Axis is currently seeking investment to further develop current projects as well as establish new ones.
Center Point Group Mamuka Tsakadze CEO 150 Agmashenebeli Ave. Tbilisi 0112 Tel: (+995 32) 91 59 00 Fax: (+995 99) 13 08 08 mtsakadze@centerpoint.ge www.centerpoint.ge The “Center Point Group” was founded in 1999 as the realtors’ agency. Since that time, it turned into one of the first – rate, leading development company. The company has already implemented 20 major projects, currently 50 projects are under operation. The company’s philosophy is driven by three factors: high quality, professionslism and reliability. Center Point Group is oriented on different socioeconomic groups of the society. The area of its activities exceeds the bounds of Tbilisi making comfortable living accessable to all. At present, the Center Point Group has also spread it’s activities all over Georgia. The company builds wide-range, multifunctional complexes in Tbilisi, Batumi, Kobuleti, Borjomi, Bakuriani, Kutaisi, Tskneti, Gori among others. A new brand of the Center Point Group is “Rcheuli”, which is a small and medium boutique hotel chain created in 2007. The company is planning to open many of these hotels throughout Georgia. Currently there are 3. At this point, the key strategy of company’s development is determined by some main priorities, which include:
135
Real Estate and Construction
• Building multifunctional complexes; • Real Estate development projects throughout Georgia; • Meet European standards of quality; • Orientation on different social groups of the Georgian society, available conditions of payment; • Providing customers’ high-level service; • Social projects. The basis of future success of the company is the new management, technologies, service and those innovations, which currently are put in practice.
Development Solutions Aidar Utkelov CEO 37 Rustaveli Ave. Tbilisi 0108 Tel: (+995 32) 24 15 55 Fax: (+995 32) 24 15 52 a.utkelov@ds.com.ge www.ds.com.ge Activity: Real Estate Development Development Solutions LLC is a real estate development company founded by a group of Georgian and Kazakh investors in 2006. During its short history, the company has successfully established itself as one of the main players in the real estate development market of Georgia. The company was formed to handle the properties in Adjara and Tbilisi, belonging to several Kazakh and Georgian investment groups. DS operates 9 key projects, including the recently completed the Radisson SAS Iveria Hotel. The company has established professional relationships with the local business community, industry peers, government representatives, local suppliers, foreign consultants, advisers and other members of the real estate market. The company differentiates itself by implementing modern approaches to the concept of development. They look to identify long-term opportunities, evaluate them and offer recommendations concerning the most optimum projects. Their mission is to transpose the properties into viable concepts and real business opportunities, offering value the entire surrounding community. DS offers the following services: Concept development, strategic site selection and analysis,
136
comprehensive development strategies, financial modelling and investment project valuation, and project coordination and management. Development Solutions is currently investment partners and loan financing.
seeking
Dhabi Group Georgia George Seturidze CEO 36a, L. Assatiani St. Tbilisi 0105 Tel/Fax: (+995 32) 44-48-88 george@dhabi.ge www.dhabigroup.com The Dhabi Group is one of the largest international UAE based investment groups actively participating in various investment activities throughout the Middle East, CIS States, Pakistan, Bangladesh, Iran, Afghanistan, Uganda and the Republic of Congo. The market value of the consortium portfolio easily reaches in excess of USD 10 billion. In Georgia, Dhabi Group’s portfolio includes three strategic business units. It is the full stake owner of Kor Standard Bank (KSB), Warid Telecom Georgia Ltd, and is also involved in real estate development with the construction of the new Kempinski hotel on Rustaveli Ave. The investment in Kor Standard Bank began through the acquisition of Standard Bank by Dhabi Group’s Kor Bank, in which Dhabi Group invested approximately USD 39.5 million. As the group already had an operation license for Kor Bank, and after negotiations with the National Bank of Georgia for the operational license, the two banks merged to form Kor Standard Bank. It is currently one of the leading players in the Georgian banking sector. The second area of investment is in the telecommunications sector under the company name. Warid Telecom Georgia Ltd. More than USD 80 million was invested into the company before the end of 2008. The license for Wi-Max frequency was purchased in 2008 for more than USD 10 million. Currently this project is suspended and being reevaluated in order for the group to take full advantage of the high potential of this business unit.
www.ebizguides.com
Real Estate and Construction
On March 25th, 2008 Dhabi Group made its 3rd major investment in Georgia. The company purchased 80% of the Kempinski Hotel Tbilisi from Capital Vostok, the Swiss based investment group that drew up the initial project. Kempinski Hotel Tbilisi will be located in the center of the city, on Rustaveli Avenue. The different components of the project will comprise the following gross areas: • Guestrooms on 20,000 square meters; • Conference and banqueting facilities on 3,581 square meters; • 1,489 square meters of wellness and spa facilities; • Serviced apartments on 36,485 square meters; • 6,882 square meters of retail space (shopping centre). Deadline and construction timelines are still being re-evaluated. The estimated cost of the project is USD 110 million. Dhabi Group’s activities in Georgia are not limited to these three business units, as they are constantly looking for new opportunities and areas for growth. “Dhabi Group is notoriously very friendly to the countries in which they invest. When the various businesses operating in these countries bring in profits, we always look to reinvest in the country, furthering the development of the country’s economy.” George Seturidze CEO
Georgian Reconstruction and Development Company (GRDC) Irakli Kilauridze CEO 6 Marjanishvili st. Tbilisi 0102 Tel: (+995 32) 91-06-76 Fax: (+995 32) 91-47-66 irakli@grdc.ge www.grdc.ge GRDC is the leading private Georgian property investor, developer and operator. It was founded in 2003 and maintains a property portfolio valued at US$160 million in December 2008, GRDC is currently active in two major business lines: shopping centers and offices and is planning to
www.ebizguides.com
enter Residential sector in near future. Established in 2004, GRDC has since secured a portfolio of 18 projects, has successfully completed one showcase project (Green Building – Office Center), is close to completing another major project (Tbilisi Central Railway Station – Shopping Center) and has commenced pre-development stage for another project (Lisi Lake – Residential). GRDC has the potential to develop over 2 million sq meters of office, retail, residential, and industrial facilities within its current portfolio. Since formation, GRDC has delivered a net IRR performance of approximately 50%. They employ over 30 international property professionals from the Netherlands, UK, USA, Turkey and Israel. GRDC was originally backed by a number of wealthy private investors from Holland, Switzerland, France, UK and Georgia. These individuals remain the key investors however GRDC’s equity base has been recently enhanced by a 105 million USD injection from the EBRD and from leading international funds and banks. Complementing these funds the EBRD and IFC have allocated a debt facility of around 100 million USD. Looking towards the future, GRDC plans to complete their impressive portfolio of projects and seeks out new partnerships in the way of equity partners, consultants, project managers, and designers.
Rakeen Zaza (Gela) Mikadze General Director 2 Baratashvili St. Tbilisi, 0105 Tel: (+995 32) 93-33-93 Fax: (+995 32) 93-39-93 mikadze@rakeen.ge www.rakeen.ge Rakeen is the largest property developer in Ras Al Khaimah and a key player in the Real Estate development sector of Georgia. Established in the United Arab Emirates (UAE), Rakeen incorporates sustainable, responsible, eco-friendly planning and the design of world-class resorts and residential and commercial property developments. Rakeen has produced a significant number of ambitious development projects for Ras Al Khaimah, from man-made islands to offshore financial districts
137
Real Estate and Construction
and from spa resorts to new urban developments. Rakeen has a diversified international development portfolio and has been investing robustly in emerging and developing markets. Rakeen is committed to designing and building structures which are sympathetic to their surroundings and which preserve or add to the natural habitat wherever possible. The company was established in Georgia in 2006. Rakeen specializes in complex infrastructure development projects in residential and commercial areas. The company offers first class design, construction and management services. The development of several projects has already begun in Georgia. The total portfolio of Georgian projects represents approximately USD 2 billion in investments for the next 5 years. Among these projects are the Uptown Tbilisi in Digomi, Tbilisi Heights Project in Tabakhmela, and a 5 Star Hotel and residential villas in Vardzia. Future projects include an 18-hole golf course in Mukhrovany (a picturesque location just 25 km outside of Tbilisi), which represents the first golf course in the region, White Sails in Batumi, and Gonio Heights on the Black Sea coast.
138
More information about these projects and opportunities within them can be found on Rakeen’s website. Rakeen also owns the Sheraton Metekhi Hotel in Tbilisi. In an Auction held on November 5, 2007 Rakeen purchased the hotel for USD 67.5 million. Rakeen plans to start renovation of this hotel in 2011. Rakeen is part of the massive RAK group, which is involved in many diverse operations in Georgia including Poti Sea Port, Poti Free Industrial Zone, and the development of Poti Airport, among others.
“Myself and the companies under the RAK holding group are giving jobs to more than 5,000 people in Georgia and have so far invested more than USD 400 million in Georgia. This gives more job opportunities and helps to develop the Georgian economy. For me, this is the most important aspect of our work” Zaza (Gela) Mikadze General Director
www.ebizguides.com
Real Estate and Construction
www.ebizguides.com
139
140
INFORMATION COMMUNICATION TECHNOLOGY
141
Information Communication Technology OVERVIEW Communication plays a great role in the development process of the Georgian economy. Due to the economic reforms carried out in Georgia, including the liberalisation and stimulation of a de-monopolized market economy, there has been a progressive development of competition in the ICT sector. This has had positive effects on the quality of services offered and facilitated access for the entire population is dramatically increasing. The main goal for the Georgian “ICT sector� is to support the economic, social and cultural growth of the ICT networks in the country. The State plays a key role in creating good conditions for the ever-growing communications network. However, the sector still faces many challenges. These challenges include: Ensuring the development of rural telephone communications in all regions of Georgia; to increase Internet access points across Georgia in both rural and urban areas; the creation of e-commerce and e-learning in order to develop business, social, and economic stability; and the formation of new Info-communications in order to connect Europe and Asia.
PUBLIC TELEPHONE NETWORK (PSTN) The biggest share in the PSTN service belongs to Silknet (former JSC United Telecom of Georgia). The market leaders in this industry offer customers CDMA standard wireless fixed telephone services, the number of wireless fixed telephone service subscribers increases day by day.
MOBILE CELLULAR RADIOTELEPHONE NETWORK Rapid expansion of mobile services has significantly improved access for both urban and rural areas of Georgia. The growth of the cellular telecommunication network is one of the highest parameters of the Georgian telecommunication sector. The main companies are Magticom, Geocell and Mobitel (Beeline), which all together cover up to 95% of Georgia. Magticom and Geocell have also developed 3.5G systems. Cellular telephone usage has been on a continual increase for the last decade.
INTERNET NETWORK According to statistics provided by the Georgian National Communications Commission (GNCC), there is rapid and constant growth in Internet usage. 95% of Georgia receives mobile coverage by one of the 3 providers
Georgian department of communications
GEORGIA GOVERNMENTAL NETWORK (GGN) For stable and secure communication among the governmental bodies, the government launched the Georgian Governmental Network (GGN) in 2008. The use of broadband applications and services by Georgian governmental bodies helps to ensure exposure and transparency of Government decisions and the legislative framework. This will also promote the formation of an electronic society in Georgia.
142
www.ebizguides.com
Information Communication Technology
An important development in this industry was that in 2008 Caucasus Online, one of Georgia’s leading internet service providers constructed a high capacity undersea fibre optic link between Poti and Varna (Bulgaria), with a total bandwidth of nearly 1.3 Terabits. This link connects Georgia to the Global Internet network.
TV and RADIO BROADCASTING Television is the main source of news for the Georgian people. There are dozens of cable operators and many major commercial stations. Private broadcasters compete for a share of the small, but growing, advertising market. Government-funded Georgian Public Broadcasting has replaced the former state radio and TV. TV broadcasting covers up to 96% of the population of Georgia with radio broadcasting covering 90%.
Source: Investment Guide to Georgia (produced by AMCHAM and EUGBC)
 
There are four main television channels in Georgia. They include Rustavi 2, Imedi TV, Mze, and Georgian Public TV. There are four main radio stations in Georgia. Georgian Public Radio which operates two public networks, Radio Imedi, a private network focusing on national news and commentary, Fortuna FM which is private and music-based, and Mtsvane Talgha (Green Wave), which is a national network linked to non-governmental organizations.
Internet access is widely available throughout Georgia
www.ebizguides.com
143
Information Communication Technology
Prominent Tbilisi TV tower viewed from all angles of the capital
Georgian media is well known to be one of the finest in the entire Caucasus region
GEORGIAN NATIONAL COMMUNICATIONS COMMISSION
LEGISLATIVE ACTS
The Georgian National Communications Commission was established in July 2000. The members are appointed by order of the President for a period of six years. The Commission’s main goals and tasks include: • Inadmissibility of monopolistic activity in the field of communications; • Establishment of a fair and equal competitive environment; • Introduction of modern technologies and the establishment of effective cooperation with international organizations; • Defence of consumers’ legal interests. The Commission is not a subordinate of the state authorities, nor is it financed by state budget. Its source of revenue is the regulation fees that are paid by the authorized undertakings and license holder organizations in the field of electronic communications and broadcasting
144
The business environment of the ICT sector has seen great improvement in recent years. This is due to a series of adopted Legislative acts. These laws include the Law of Electronic Communications in 2005 and the Law of Broadcasting in 2006.
According to the Law of Electronic Communications, licensing procedures turned into authorization, which means the registration of communication service providers. Licensing is only needed for the assignment of frequency and numeration resources. The Law of Electronic Signature and the Electronic Document and the elaboration of technical rules in these fields will support the settlement of electronic signature and electronic documentation in public administration and civil relations. Through the establishment of these legislative acts, the ICT sector is better equipped to grow and develop.
www.ebizguides.com
Information Communication Technology MAIN ENTITIES Caucasus Online Mamia Sanadiradze General Director 71, Vazha Pshavela ave. Tbilisi 0186 Tel: (+995 32) 20-00-00 Fax: (+995 32) 48-00-48 mamia@co.ge www.co.ge Activity: Internet Service Provider Caucasus Online is the first and fastest growing Georgian Internet service provider. They keep the leading position in the ISP market due to their affordable, high quality service. Effective managerial style, cutting-edge technologies and innovation are the key ingredients of their success. As of the beginning of 2008, company staff reached 500 employees. Caucasus Online’s goal is to provide end-users with high-quality service, further improvement of company’s image on telecommunication market, faster development of Georgian web-content and easy means of its creation and management. They are constantly improving their products to meet consumer’s ever-growing demands. Caucasus Online coverage area includes whole Tbilisi and all major towns of Georgia. They have their own fiber network, connected to fastest European backbones. In 2008 Caucasus Online constructed high capacity an undersea fiber optic link between Poti-Varna (total bandwidth of nearly 1.3 Terabits) and Georgia directly connected to the Global Internet network. This project makes positive influence on Georgian ICT sphere.
Geocell Osman Turan General Director 3 Gotua str Tbilisi 0160 Tel: (+995 32) 770100 Fax: (+995 32) 770102 outran@geocell.ge www.geocell.ge Geocell was established in September 1996 and was the first GSM operator in the Georgian
www.ebizguides.com
telecommunication market. During the 13 years of its successful operation, Geocell has provided the opportunity of access to mobile communication to almost every citizen in Georgia. From the first day of operations, the number of Geocell’s subscribers exceeded all expectations and as of March 31, 2010 the number of customers reached 1,859,000. The company’s turnover for the first three months of 2010 was approximately 70 million GEL. Geocell offers mobile, fixed phone and internet services. Today, Geocell is part of TeliaSonera, a strong international group with a global strategy, nevertheless, wherever it operates it acts as a local company. Throughout its existence Geocell has made changes to its corporate image several times. In 2009, it carried out a radical re-branding campaign and presented a new face to the public. To their customers this means that Geocell is now providing even better services and products. What has remained unchanged are the name and values of the company. Geocell covers 98% of the populated territory of Georgia, while outside the country Geocell subscribers enjoy roaming services in more than 130 countries. Geocell plays an important role in the development of the Georgian economy. The company has already made an investment of USD 315 million. The Geocell system operates under SAP and SOX international standards. Their subscribers enjoy all the innovative services provided by international GSM/UMTS standards. They have been pioneers in bringing the most modern technologies and innovative services - from SMS and voice mail to MMS, GPRS, BlackBerry, 3G and much more. They were the first operator to launch 3G services not only in Georgia, but also in the Eurasian regions, along with all the operators of the TeliaSonera Eurasia group. Together with side industries, Geocell has created thousands of employment opportunities in the telecommunications sector in the country and raised a generation of highly professional specialists – not only in the technical field, but also in marketing, human resources, communications, finance, sales, etc. Charity and patronage have always been one of the most important points of the company’s strategy. The support of culture, education and sport is deep within Geocell’s corporate culture. There have been hundreds of well-known social projects
145
Information Communication Technology
initiated by Geocell throughout its existence. These include caring for orphans, elderly people and participating in many charity events. The company has also developed various charity programs and will support these activities in the future. “Today communication in its meaning is so tightly linked with the most up-to-date technologies and Geocell is one of the leading providers for people’s communication at this stage of our evolution” Osman Turan General Director
Magticom David Lee General Director 5 Politkovskaya St. Tbilisi 0186 Tel: (+995 32) 32-23-31 Fax: (+995 32) 32-18-83 dlee@magticom.ge www.magticom.ge MagtiCom Ltd was commercially launched in September 1997. At present, Telcell Wireless LLC and ITC LLC owns the company. MagtiCom’s network covers over 97% of the populated territory of Georgia. By means of its three brands Magti (Cellular operator), Bali (ISP), and Magti Fix (Fixed Phone operator). MagtiCom now renders service to more than two million subscribers. They have been the biggest company operating in Georgia, both with respect of its contribution made to the economy of the country and the number of subscribers. They are by far market leader in terms of coverage and quality. They commenced operating on 900 MHz frequency band. In November 1999, MagtiCom became the first GSM operator in Georgia to move to the dualband system – GSM 900/1800 MHz. In 2005, they started to build the first Third Generation network in Georgia to offer the 3G services. As a result, in summer 2006, first time in Georgia, the company launched the third generation services along with the full range of GSM ones. In April 2008, MagtiCom began to offer their customers high-standard wireless fixed telephone service along with the ordinary mobile telecommunication. In January 2009, the Company announced the launch of 3.5 G HSDPA technology throughout the territory of Georgia. Notwithstanding stiff
146
competition MagtiCom remains the unchallenged leader in mobile telecommunications market of Georgia establishing new customer care standards.
Mobitel Ltd. (Beeline) Andrey Pyatakhin General Director 6 Gorgasali St. Tbilisi 0114 Tel: (+995 32) 20-06-06 Fax: (+995 32) 20-06-20 apyatakhin@beeline.ge www.beeline.ge Mobitel Ltd. is a Georgian cellular communication operator. The company has the license for providing cellular communications services. Mobitel was founded in November 2003, and at that time was not engaged in commercial activity. Mobitel, the subsidiary of the Russian JSC, VympelCom, obtained the license on use of radio-frequency spectrum in GSM-1800 standards on December 16th, 2005. The Company passed authorization procedure on August 26th, 2005. Mobitel Ltd. started providing cellular communications services under the brand mark Beeline on March 15th, 2007. Beeline is currently the 3rd largest player in the cellular operator segment in Georgia. In their 3 years of operations, they have increased market share yearly. They have positioned themselves as high quality service at lower rates. They are at a disadvantage, as they do not have the rights to carry 3.5G mobile technologies. Despite this fact however they are a key player in the segment and have a strong backer in VympelCom. JSC VympelCom has a 51% share in Mobitel Ltd. The VympelCom Group’s license portfolio covers a territory with a population of about 340 million. Geographically it covers the whole territory of Russia as well as the entire territories of Kazakhstan, Ukraine, Uzbekistan, Tajikistan, Georgia, Armenia as well as Vietnam and Cambodia.
www.ebizguides.com
Information Communication Technology
UGT George Chirakadze President & CEO 17a Chavchavadze Ave. Tbilisi 0179 Tel: (+995 32)22-05-05 Fax: (+995 32) 22-02-06 george.chirakadze@ugt.ge www.ugt.ge
provision of high quality products and services to every customer. Their success has been achieved through the knowledge and experience of professional managers and technical staff, the majority of who constantly undergo qualification trainings in the headquarters of our partners. These partners are the leaders in the field of information and communication technology throughout the world.
UGT was established in 1997. Today the company is one of the leading system integrator and provider of solutions in the field of information and communication technology. UGT primarily concentrates on providing services to corporate clients and the government sector.
By working in partnership with the world’s leading companies in the field of technology, UGT has rapidly achieved success. UGT is the only Microsoft Gold Certified Partner, Symantec Gold Certified Partner, SAP partner in Georgia. In addition, it is HP’s largest partner in the region and maintains special partner relationship with Cisco.
The core business of UGT is the implementation, deployment, and support of solutions that are based on information and communication technology products and services. UGT is also known for the provision of high quality computer equipment and accessories. The characteristics UGT is most proud of, and committed to, are: professionalism, customer care,
UGT’s mission is to assist its customers in reaching their goals by providing them with information and communications solutions based on modern technologies, products, and services. UGT is constantly introducing itself to the latest technology resources and offers its clients solutions based on up-to-date achievements, which effectively aid them in successfully reaching their business goals.
www.ebizguides.com
147
148
TOURISM INDUSTRY
149
Tourism Industry OVERVIEW Traditionally speaking, Georgia has always been an important tourist destination for those that are passionate about art, wine, the distinct Caucasus cuisine and the breathtaking traditional Folk dance. Georgia is also known for its bio-diversity, which is now protected by 24 nature reserves and national parks.
Considering all of these historical and cultural attributes, Georgia is a place of growing interest and is fast becoming a prominent destination for the traveller seeking new experiences. This has also been enhanced by the new visa policy, the steadily improving infrastructure and a combined commitment to safety.
David Gareja Monastery complex hollowed out of the rock face. Kakheti region
There are over 12,000 historical and cultural monuments in Georgia (four listed by UNESCO as cultural heritage sites), 103 resorts, 182 tourist destinations, more than 2,000 mineral springs which cater to the many spa and health resorts, beautiful seaside destinations and 3 developed ski resorts.
150
www.ebizguides.com
Tourism Industry
Sharden Street, Tbilisi’s fashionable place to eat, drink, socialise and listen to live music
CULTURAL TOURISM Georgia has long been at the intersection of the world, a truly ancient nation and one of the world’s oldest uninterrupted civilisations. Its history dates back over 3,000 years. Situated between the Caucasus Mountains, Georgia has played an important role for travellers and traders, explorers and invaders, for example, Greeks, Russians, Persians, Mongols and Turks have all left their prints on Georgian soil. It is a country filled with
Gergeti Trinity Church is situated on the right bank of the river Chkheri at an elevation of 2,170 meters, under Mount Kazbegi
www.ebizguides.com
ancient ruins, castles, churches, waterfalls, glaciers, mineral water springs, beaches, forests and steppes. What is so unique about Georgia is that it has a nice combination of influences, bearing rudiments from Asia, Middle East and Europe something not seen anywhere else in the world.
ADVENTURE TOURISM Due to the beautiful mountain setting, Georgia is perfectly suited to those seeking nearly any types of adventure. The high peaks of Georgia’s mountains (nine of which are over 5,000 metres) attract mountaineers from all around the world. Summits like Mt Shkhara (5,200 meters), the Caucasian ‘Matterhorn’ – Mt Tetnuldi (4,974 meters), Mt Kazbek (5,033 meters), Mt Shkhara West (5,068 meters) offer the world’s top climbers an entire range of challenges. The Glaciers that lay at the bottom of these mountains are enticing climbers of all levels and are now promoting the increasingly popular Paragliders. Throughout the valleys are swift-flowing rivers, which offer the ideal setting for rafting and kayaking,
151
Tourism Industry ECO TOURISM
Heliskiing, Paragliding and Free-ride are just some of the activities on offer at Georgia’s most prominent ski resort, Gudauri
with a full range of difficulty levels. The Caucasus has some of Europe’s largest caving opportunities, with many remaining yet to be discovered. Georgia offers therefore: • Trekking • Mountaineering • Ski Mountaineering • Skiing • Horse riding tourism • Mountain biking • Rafting • Fishing and hunting
To protect the natural resources of Georgia, 31 protected areas have been established and conservation measures are in place. Within these areas five major National parks have been declared, all with extensive trail systems. The Caucasus’s are geologically young mountains and have the Black Sea winds blowing in from the west and the drier but still humid Caspian basin to the east. This gives the whole region plenty of rainfall. Due to the collision of tectonic plates below the surface, the mountains are continuously growing.
WINE TOURISM Many say that the word ‘wine’ derives from the Georgian word ‘gvino’. The wide majority of different grapes that Georgia has to offer would suggest this to be true. The warm climate and moist air provide the perfect conditions for the cultivation of wine. Saperavi, Tsinandali, Mukuzani, Teliani, Napereuli are just a few of the names of wines that extend beyond the Georgian main lands and find themselves on the shelves of Western Europe and American shops.
Mt. Kazbeki & Mt. Ortsveri during Autumn
152
www.ebizguides.com
Tourism Industry
to combine both ski and beach in only a matter of hours.
Black Sea Coast, Adjara region
Vineyards are incorporating guesthouses to welcome tourists
Wine tourism is extremely popular and there are several small factories and homemade wine cellars, which host tourists all year round.
REGIONAL DEVELOPMENT ADJARA REGION The Autonomous Republic of Adjara, in the west of Georgia, is currently going through major development in order to capitalize on the vast potential of tourism to this specific region. The quality of service and level of infrastructure is being improved all over the region. Fierce marketing activity is being undertaken at the local and regional level. Batumi, the capital of the region, is currently witnessing a renaissance, as there are many real estate development projects underway, countless cultural events, and the establishment of modern infrastructure. 18 new hotels will be opened in Adjara along the coastal zone with overall capacity of 3,000 beds by 2011. Well-known brands such as The Radisson, Hilton, Hyatt, and Belle Vue are among them. Also, a feasibility test has been conducted in order to investigate the potential of three different areas in the Adjarian Mountains for the development of ski resorts. This would give the visitor the chance
www.ebizguides.com
The number of visitors to Adjara has been increasing and new tourist packages are being developed. Compared with previous years the quality of service is improving drastically throughout tourist destinations. In order to comply with world standards vocational trainings are held for hotel and restaurant staff.
GUDAURI Every year, Gudauri hosts national, as well as international ski races and fun competitions. The unique geological terrain and climatic condition makes Gudauri mountains slopes a great destination for skiing. The total length of groomed ski runs covers an area of over 20km. The slopes are suitable for skiers of any experience starting from beginners (blue) and ending with experts (black).
Gudauri Ski Resort located in the Kazbegi region of Georgia at the height of 2,196m
153
Tourism Industry
An 87% share of the Gudauri ski resort was sold to a Ukrainian company called Privat Group in January 2010 by the Georgian government. This sale represented part of the Georgian government’s efforts to privatize state owned property. The deal was estimated to be worth $14.5 million. According to the Tourism and Resorts Department of Georgia, Gudauri hosted more than 20,000 guests in 2009, 2,000 of whom were foreigners.
TRENDS AND GROWTH The country’s commitment to democracy, the growth of international communication, a strong foreign policy and a dedication to security and personal safety has caused a real boom in Georgia’s tourism industry. There is no visa requirement for nationals of 67 countries, including: Israel, Japan, Canada, The United States of America and members of the European Union. Basic infrastructure like roads and motorways, energy and water supply systems are rapidly developing. Any traveller to Tbilisi can easily notice these developments. Currently the Marriott, Sheraton and SAS Radisson have hotels in Tbilisi. The Intercontinental, Hyatt, Hilton and Kempinski are currently under construction and development. The transport networks are due to be completely revamped with new roads being built throughout Georgia and a new modern motorway that will cross the country is being inaugurated in 2012.
MAIN ENTITIES Department of Tourism and Resorts Zaal Abazadze Head of the Department 12. G.Chanturia St. Tbilisi 0108 Tel: (+995 32) 43 69 94 Fax: (+995 32) 92 03 35 zaliko@tourism.gov.ge www.georgia.travel
154
Few of the world’s small nations offer a visitor as much as Georgia does. Although Georgia is only the size of Switzerland, it is able to boast the highest mountains in Europe, truly fabulous walks, more indigenous grape varieties than anywhere else and architectural marvels – stone watch-towers in the mountains and carved wooden balconies, richly frescoed churches and art nouveau in the towns. Combine this with a Mediterranean climate and the legendary Georgian hospitality and you have a unique travel destination to visit. Georgia offers an extremely impressive tourism package. There is wine tourism, adventure tourism, eco-tourism, horseback riding, hiking, bird watching, rafting, and sea and beaches. Also there are two predominant ski resorts, (Gudauri & Bakuriani) as well as hot springs and spa resorts. The Department of Tourism and Resorts has been organizing familiarization trips for the International Travel Media, and during 2005-2009 nearly 800 foreign travel journalists have so far visited Georgia (including British, Dutch, Belgian, Israeli, Finnish, Ukrainian, Italian and etc.) and participated in nearly 100 International Tourism Exhibitions. Public Tourism Information Centers in Tbilisi and other regions were created where travelers can be provided with any tourism related information. Georgia now offers great opportunities for investors looking to the Georgian Tourism sector: hotels and other accommodation facilities, catering, transportation, communication, convention facilities, sport and recreation facilities. Two international airports operate in Tbilisi and Batumi. Non-stop flights to Georgia are available from Amsterdam, Cologne, Frankfurt, Munich, Istanbul, London, Paris, Prague, Vienna and Kiev. The flight from Vienna takes 3.5 hours. Located at the crossroads of Europe and Asia, Georgian tourism has immense potential and stands out as a unique location in many different ways.
www.ebizguides.com
Tourism Industry
Department of Tourism and Resorts of Adjara Temur Diasamidze Chairman of Department 84/86 Parnavaz Mepe St. Batumi 6010 Tel: (+995 222) 7-50-23 Fax: (+995 77) 90-90-97 info@tourismadjara.ge www.tourismadjara.ge Tourism in the Adjara region is quickly developing as the inflow of foreign and domestic visitors, businessmen and delegations increase at a fast pace. The Department of Tourism and Resorts of Adjara is the guiding force behind this rapid development. They are engaged in intensive marketing and advertising activities domestically and in other countries of the region. These activities include presence on TV, Radio, Internet, famous magazines, and participation in international tourism exhibitions. The Department cooperates with tourism agencies and foreign journalists by inviting them to Adjara to see all the opportunities the region has to offer. They also partner with companies working, or looking to set up operations in the tourism sector of Adjara. They are constantly working to improve the quality of service and level of infrastructure within the sector. New tourism products are being created in order to meet new demand. The activities Adjara has to offer a tourist are vast. They include cultural and historical tourism, Black sea tourism, Eco-tourism and adventure tourism. There are over 230 historical, cultural and architectural monuments in Adjara, including many famous churches, 16 museums, theatres, and art galleries. The rich cultural traditions of the local population make Adjara a wonderful destination for the discovery of cultural and historical tourism. The diversity of the natural environment of Adjara is a good precondition for nature-based activities such as backpacking, fishing, horse riding, hiking, climbing, mountaineering, diving, bird and dolphin watching. There are 4 protected areas in Adjara, making up to 20% of its territory. They were established in order to preserve unique ecosystems of temperate rainforest and coastal wetlands. There is also huge potential in the Adjaran Mountains to develop a ski resorts and two major ski areas were explored and proved feasible with a total of 250 ha of skiable area.
www.ebizguides.com
Adjara is the center of Georgia’s coastal tourism industry. There are 5 sea resorts in Adjara: Batumi, Kobuleti, Makhindjauri, Tsikhisdziri, Green Cape, and up to 50 km of coastline suitable for swimming and sunbathing. There are seven tourism information centers which are open to serve tourists and visitors.
Citadines Apart’Hotel Tbilisi Freedom Square Farhod Tashtemirov Residence Manager 4 Freedom Sq. Tbilisi 0105 Tel: (+995 32) 54-70-30 Fax: (+995 32) 54-70-40 farhod.tashtemirov@citadines.com www.citadines.com Citadines Tbilisi Freedom Square is centrally located in the heart of Georgia’s capital, next to Freedom Square, a popular tourist attraction. Cafes, restaurants and supermarkets are conveniently located within a few minutes’ walk. The Apart’hotel is in a very close vicinity of the State Chancellery and the House of Parliament. It is strategically placed near the metro station, right opposite the National Museum of Georgia, and 10 minutes walk from the recently renovated “Old Tbilisi”, which includes old residential houses, ancient sulphur bathes that are still hosting the customers, and numerous religious monuments. This area has been recently refurbished with pedestrian streets and has many small art galleries, souvenir shops and many bars and restaurants. All studios and apartments have individually controlled air-conditioning, broadband and DSL Internet access, home entertainment system including television with satellite channels, directline phone and a hi-fi system. All apartments have beds and a sofa bed that will serve as extra bed when needed. They have their own bathrooms, a fully equipped kitchen with stove, oven, fridge and dishwasher. Linen and towels are provided. The apartment is cleaned and linen and towels are changed once a week free of charge. Additional house-cleaning service is available on request and is charged according to your requirements. Citadines Tbilisi Freedom Square is the first Apartment Hotel in Georgia. It combines the
155
Tourism Industry
156
www.ebizguides.com
Tourism Industry
relaxing atmosphere of a spacious apartment with hotel flexible services, and provides a high level of security.
guests with personalized services and works to build a warm relationship that is based on longterm cooperation and friendship.
Vere Palace Hotel
m|group
Simon Kapanadze General Director 22-24 Kuchishvili St. Tbilisi, 0179 Tel: (+995 32) 25-33-40 Fax: (+995 32) 22-12-98 hotelvp@verepalace.com.ge www.verepalace.com.ge
Zurab Tsintsabadze General Director 2 m.Gelovani Ave. Tbilisi, 0159 Tel: (+995 32) 38 88 00/44 Fax: (+995 32) 38 88 89 z.tsintsabadze@mgroup.ge www.mgroup.ge
On August 20th 1999, the Vere Palace Hotel opened its doors to the public for the first time. The hotel is situated in the prestigious Vere district of Tbilisi, within walking distance of Rustaveli Avenue and its renowned Opera House, Symphony Hall, Theatres, Cinemas, Museums, Business and Trade centers. Vere Palace is a 4-star hotel and distinguishes itself as a luxurious and family orientated hotel. Its interior contains elements of classic baroque, selected from the extravagant Louis XVI interior harmonized with modern technological solutions and comfort. There are 42 comfortable and diversified rooms in the hotel ranging from classic rooms to presidential suites, all of them with comfortable and luxurious design.
Activity: Hospitality Management
The hotel satisfies any demand for complete relaxation. Customers are able to take full advantage of the complex fitness centre, outdoor pool, sauna, and massages and beauty salons. Vere Palace Hotel welcomes its guests and outsiders alike to its finest restaurant serving delicious European and Georgian cuisine. Cocktail lovers are awaited and hosted in the Bar to taste piquant cocktails prepared by their professional bartenders. The hotel boosts extensive experience in organizing conferences, corporate events, banquettes and weddings. Conference and business centres are equipped with state-of-the-art technology and their experienced and professional staff make a stay an unforgettable experience. The International Airport is only 25 minutes away by car and the concierge can arrange for transfers. Vere Palace Hotel cooperates with various NGOs and international and governmental organizations, as well as hosting many tourists and businessmen. The hotel takes pleasure in meeting and serving
www.ebizguides.com
“Hotels and Restaurants Management Group” – m|group JSC, was established in 2005 with a mission to promote and implement the latest HoReCa trends and “best practice” standards in Georgia. m|group is acknowledged as the market leader and innovator in providing quality services. The Group considers operational excellence, pleasant ambiance, customer intimacy and adherence to Georgian traditions as part of its core competency. The most notable restaurants under m|group are Shadow of Metekhi, Bread House and Two Side Party Club. In 2008, with a view to respond to market trends and competitive dynamics more effectively, the Group started diversification efforts by launching a new sub-brand, m|group [smart] targeted at a relatively democratic niche segment. Currently, Sakhinkle restaurant chain “Maspindzelo” operates under m|group [smart] sub-brand. The m|group umbrella brand links together: m|info, m|catering, m|cake, and m|college sub-brands. In 2008, m|group became HACCP based ISO 9001:2000 certified company, the first management company in Eastern Europe HoReCa industry to attain international certification. In the service industry, loyalty card programs are one of the best ways to reward your loyal customers and increase retention. For this very purpose, in 2007, m|group in partnership with the Bank of Georgia started a highly successful Customer Loyalty Card Program. Currently, there are more than 2,000 cards in circulation offering the cardholders different benefits. m|group attributes its success to outstanding teamwork and the use of innovative technology.
157
Tourism Industry
158
www.ebizguides.com
Tourism Industry
The group will continue developing innovative projects using local raw and intellectual property; explore international franchise opportunities and provide the way for local brands to penetrate foreign markets.
Mtatsminda mountain. It is quiet and secure with balconies in most rooms.
m|group currently manages numerous upscale restaurants and 2 boutique hotels. They are looking to diversify their target market by creating new establishments that cater to a wider demographic.
Betsy’s restaurant serves a full breakfast made-toorder, as well as a three-course dinner included in the room rate. Outside guests are always welcome in the dining room or they can join you for breakfast on the terrace that overlooks the city. The dinner menu features Georgian and International cuisine with world-famous Georgian wines.
Betsy’s Hotel Steve Johnson Owner 32-34 Makashvili St. Tbilisi 0108 Tel: (+995 32) 93-14-04 Fax: (+995 32) 99-93-11 thehotelbetsy@internet.ge www.betsyshotel.com Betsy’s Hotel is a beautifully decorated, superbly staffed boutique hotel overlooking the center of Tbilisi. It is run with American efficiency and is an oasis for many international workers passing through Georgia’s capital city. It is just steps away from Rustaveli Avenue, known as one of the grandest avenues in all of the former Soviet Union and the center of culture and commerce. Betsy’s Hotel has 59 guest rooms and suites. All guest rooms are equipped with high-speed wireless internet and have floor-to-ceiling windows with spectacular views of the city, the swimming pool, or the “Eiffel Toweresque” television tower on
www.ebizguides.com
The hotel has a small outdoor pool, well equipped fitness center and relaxing sauna.
The cocktail lounge has a wonderful view of the city and is a great place for an evening drink. Also, the Friday cocktail hour at the bar offers a wonderful opportunity to network with both local and international businessmen and is the perfect place to get real inside information on Tbilisi. Guests can also enjoy a Sunday Brunch, light fare lunch and dinner menu next to the lounge’s fireplace or even poolside. Betsy’s is equipped with a large and a small meeting room and conference center. Secretarial services, business aids, audio-visual equipment and technical support are also available. In-house or outside catering for receptions, meetings or even weddings are one of Betsy’s specialties. In the lobby, there is a small Prospero bookshop and café that offers midday coffees and light snacks. Airport transfers to and from this lovely hotel are available upon request.
159
160
TRANSPORTATION
161
Transportation OVERVIEW
One of the many bridges crossing The Mt’k’vari River, which runs through the heart of capital, Tbilisi
The development of the transport sector is essential for achieving sustainable economic growth and for the alleviation of poverty in Georgia. The deterioration of transport infrastructure increases the cost of doing business, deters foreign investments, hampers transit traffic growth, and leaves segments of the population out of mainstream economic activities.
international institutions for the rehabilitation of transport infrastructure. An example of this is the 2010 signing of a loan agreement from the EBRD for €100 million to be used to fund a new railway bypass in Tbilisi.
RAILWAYS
Georgia’s geographical position makes it an important transport link between the East and West (the Black Sea and the Caspian Sea) and the North and South (between Russia and Turkey). Trade with its neighbours, both transit and bilateral, is also an important feature of Georgia’s economy. One of the government’s top priorities is to capitalise on its strategic location and develop into a transit country by improving its East-West transport corridor. Since the East-West transit of oil and by-products is projected to steadily increase over the next years, the Government intends to rehabilitate and modernise its transit corridor and connecting roads.
New modern trains serving all major town and cities as well as direct routes to neighbouring counties
The government’s policy agenda recognises transport infrastructure investments as one of the major ways to support the country’s accelerated economic growth. Its commitment to the transport sector is evident given the substantial increase of funding for the sector since the Rose Revolution in 2003 from the state budget. Also there have been increased resources mobilised from
Oil and by-products transit moving from Kazakhstan, Turkmenistan and Azerbaijan to Georgia’s Black Sea ports of Batumi and Poti provide over half of the Georgian Railways traffic and revenue. This traffic is substantially lucrative and provides the financial backbone for all Georgian railway operations. The rail traffic is forecasted to grow substantially
162
www.ebizguides.com
Transportation
from 8.6 million to 18.7 million tons between 2004 and 2015, which would see its profit margin inevitably grow. However, Georgian Railways will need to invest an estimated USD 774 million over the next ten years to rehabilitate the railway and accommodate this traffic growth. Georgia’s fully electrified railway network covers 1,583 kilometres of track. The main route runs across the country, starting from Baku in Azerbaijan, via Tbilisi to Samtredia and then rounds off in Batumi and Poti ports. There is also a direct route into Russia via Sukhumi. Today, Georgian Railways is completely independent and has agreements with the Azerbaijan and Armenian railways for facilitating transit traffic. About 80% of the network is in mountainous terrain with grades reaching 4.9%; 247 km have curves with radii of less than 300 m. grade.
TBILISI BYPASS PROJECT On March 17th 2010, the EBRD approved a 100 million euro loan in order to improve the efficiency and safety of rail operations within the city of Tbilisi. The project is being supported in the framework of Georgia’s post war reconstruction. A donor conference in October 2008 pledged USD 4.5 billion for Georgia’s post war reconstruction after the August 2008 conflict. The main goal of the Tbilisi Railway Bypass Project is to construct a new section of railway bypassing central Tbilisi in order to avoid the transit of hazardous freight (such as oil and oil products) through the middle of the city. The project splits the Georgian passenger railway system into two systems: Western and Eastern Georgia, and involves the removal of the Central Railway station. An additional justification for the project is that the railway currently acts as a major barrier to city development on the northern bank as well as depressing land values in its vicinity.
The Tbilisi Metro services the city with rapid transit subway services. It is the fourth metro system in the former Soviet Union
www.ebizguides.com
163
Transportation ROADS
POTI SEA PORT
The road network in Georgia consists of 1,474 kilometres of main roads with about 70% in good to fair conditions; 3,392 kilometres of secondary roads, of which over 60 percent are in poor condition and need rehabilitation; and 15,429 kilometres of local roads most of which are in very poor condition.
Poti sea Port with its historical, geographical location represents a crossroad of the Caucasian corridor
Improvements of road infrastructure is crucial to support efficient transportation of goods and passengers across the country and beyond its borders
The current condition of the road network in Georgia reflects a severe reduction in the resources allocated to road maintenance under the previous Government, from the early 1990s to 2003. The poor state of the highway network constrains goods and individuals to travel between Georgia’s main cities, ports and along the transit corridor. The long transit times, despite the relatively short distance, along with poor road conditions feed growing transport costs and deter the usage of the Georgian transit route. The Government is however seriously focused on improving the conditions of the country’s road infrastructure and the funding provided to the transport sector has increased substantially.
PORTS and SHIPPING This type of transportation accounts for 41% of total cargo imported into Georgia. There are 2 ports on the Black Sea, Poti and Batumi. Georgia’s ports have rail ferry links with Ukraine, Romania, Russia and Bulgaria. Both ports are key links in the TRACECA trade route and are privately owned.
164
Newly built berth 14, Poti Sea Port
Poti is one of the largest ports on the Black Sea. Poti has direct ferry connections to the following ports: Burgas (Bulgaria), Rize (Turkey) and Novorosiisk (Russia). A Free Industrial Zone is being developed in Poti in conjunction with the sea port to allow investors to leverage Georgia’s strategic location. Poti is estimated to carry 15.5 million tons by 2010 and 19.0 million tons by 2015. In early 2008, Georgia sold 51% control of the Black Sea port of Poti to RAK Investment Authority of the UAE for $90 million. State-owned RAK Investment then predicted to spend a further $200- $300 million developing a free industrial zone around the port, plus a further $10 million for the purchase of more than 300 hectares of land in its vicinity. The Georgia government has now sold the remaining 49% of its Black Sea Poti port to RAK Investment giving them complete ownership. RAK Investment have further pledged to invest $200 million in the next three to four years to build a new
www.ebizguides.com
Transportation
port terminal near the current port at Poti, which handles a range of cargo including oil products.
BATUMI PORT Batumi port is of great regional importance and has been since Roman times. It is connected with all sea countries of the world by seaways. It is the transport link connecting the sea, river, railway, automobile, air and pipeline transport methods. Batumi Sea Port is owned and operated by the Kazakhstan’s state owned oil transportation company, KazTransOil. It consists of an oil terminal, cargo handling, and passenger service. The port performs the bunkering of vessels, supplying of fresh water and the safe mooring of vessels in port. To perform its purpose, Batumi Sea Port Ltd has a territory and water area with the appropriate special equipment and facilities. These include major berth securing devices, berths, loading mechanisms, warehouses, auxiliary service vessels, railway and automobile ways, vehicles, repair shops, systems of water pipe, communication and a Sea station.
management firm with 10 international airports under its company. Tbilisi’s new international terminal, constructed by TAV, opened in February of 2007 and has a runway of 3,000 meters. The airport is served by both foreign and national airlines including Austrian Airlines, British Airways, Lufthansa, Air Baltic and Turkish Airlines. Batumi’s new airport also opened in 2007 and has a runway of 2,420 meters. The terminal can accommodate up to 562,500 passengers per year. It serves both international and domestic flights, where there are different facilities to suit the operational requirements of airlines. TAV has recently made additional investments for the development of the airports by constructing additional car park areas and enlarging the terminals in order to help better position Georgia as a regional air transportation hub. Tbilisi International Airport also has great potential to become a cargo hub for the region. From 2007 to 2010,
Georgian Ports are the main gateway to the region
CIVIL AVIATION and AIR CARGO The air transport sector has seen some interesting developments in the past few years. This is largely due to the contract that the Georgian government signed with TAV in 2005 to manage and develop Georgia’s two international airports, Tbilisi International Airport and Batumi International Airport. TAV is an experienced Turkish airport
www.ebizguides.com
Tbilisi International’s cargo capacity has increased by 25% and TAV is constantly aiming to take advantage of its cargo potential. The biggest challenge is the high costs of fuel. Another key development in the Air Transport sector is the construction of Poti International airport, which is still currently underway and is scheduled to be up and functioning by the spring of 2012. The completion of the airport falls right in line with the scheduled completion of the new AnakliaMestia resort development in the same region.
165
Transportation
PIPELINES Baku-Tbilisi-Ceyhan pipeline (BTC) The Baku-Tbilisi-Ceyhan pipeline is around 1,768 kilometres long and is one of the great engineering endeavours of the new millennium. This pipeline exports crude oil from Azeri-ChiragGuneshli oil field in the Caspian Sea through to the Mediterranean Sea, where the crude is further shipped via tankers to European markets. It is a connection between Baku, Tbilisi and Ceyhan, a port situated on the south-eastern Mediterranean coast of Turkey. The pipeline was completed in 2005 and had a total cost nearing USD 4 billion. It became fully operational in 2006 and can move up to a million barrels of oil a day from the Sangachal oil terminal in Azerbaijan to the newly built terminal in Ceyhan on the Turkish Mediterranean coast. The Baku-Tbilisi-Ceyhan Pipeline Company (BTC Co) was responsible for the construction and operation of the whole pipeline. It is an incorporated joint venture company made up of 11 shareholders and managed by BP, its largest shareholder (30.1%). In 2009, British Petroleum (BP), who has a 30% ownership share in the pipeline, spent an estimated USD 92 million on capital expenditures and foresee a further USD 69 million in 2010. When BTC first started its operations in 2006, the pipeline’s capacity steadily increased reaching 1 million barrels of oil per day in mid-2008 and in March 2009, the figure grew to 1.2 million barrels per day by means of drag reducing agents (DRAs). The total volume of oil exported via BTC in 2009 was 285 million barrels (around 38 million tonnes). Ongoing construction of Baku-Tbilisi-Ceyhan Oil Pipeline project
This year also saw the loading of the 1000th tanker. The BTC pipeline currently carries mainly ACG oil and Shah Deniz condensate from Azerbaijan and also has ongoing agreements to carry oil from the Tengiz field in Kazakhstan.
THE WESTERN ROUTE EXPORT PIPELINE (WREP) The Western Route Export Pipeline (WREP), also known as the Baku-Supsa pipeline, transports oil from the Chirag field in the Caspian Sea via the Sangachal terminal in Azerbaijan to the Supsa terminal in western Georgia. Just under half of the pipeline is located in Georgia. WREP became fully operational in 1999 and has a length of 830km. It is capable of transporting up to 155,000 barrels of oil a day.
THE SOUTH CAUCASUS GAS PIPELINE (SCP) The South Caucasus gas Pipeline (SCP), completed in 2006 delivers natural gas from the Shah Deniz field in the Caspian Sea to customers in Georgia, Turkey and Azerbaijan. At full capacity, the 692 km South Caucasus Pipeline will export up to 20 billion cubic meters of gas a year. The gas supplied through SCP represents a source of future energy security and supply diversity for Georgia.
MAIN ENTITIES Catoni & Co Georgia Dr. Irakli Bokuchava General Manager 3 Lesia Ukrainka St. Apt. 8 Tbilisi 0108 Tel: (+995 32) 98-92-30 Fax: (+995 32) 92-22-64 iraklib@catoni.com.ge www.catoni.com.tr Since it’s establishment in Georgia in 1999, Catoni & Co. Georgia has provided shipping, logistics, multimodal transportation and inspection services to its clients in the Caucasus and Caspian region via the Georgian ports of Poti, Batumi and Supsa. Catoni & Co. Georgia is part of the Catoni Group of Companies, which was established in 1846 and is headquartered in Istanbul.
166
www.ebizguides.com
Transportation
Catoni is the oldest and most widely represented maritime agent operating an agency network. They operate in Turkey, Bulgaria, Romania, Russia and Georgia. In the Caucasus Catoni & Co. represent one of the largest and most profitable worldwide container shipping line, Hapag-Lloyd. Among Catoni’s clients in the Caucasus are BP in Supsa, NYK, APL Logistics, LTS Shipping, Seatraders and many others. The Catoni Group has historically operated in three core activities: trade, transport and insurance. This may be best associated with the economic and commercial developments of the region and the service requirements of global retail and supply groups. As the ports of Georgia are currently being developed, Catoni & Co. Georgia are growing with them and constantly reaching out to establish new partnerships in order to further enhance their operations. They pride themselves on having a strong local team of professionals who have many years of experience in the Georgian logistics sector.
DHL Georgia Malkhaz Papelashvili Country Manager 105, Tsereteli Ave. Tbilisi 0119 Tel: (+995 32) 69-60-60 Fax: (+995 32) 34-03-93 malkhaz.papelashvili@dhl.com www.dhl.com Activity: Logistics “To achieve the best results by providing superior quality and solutions at all levels of the business processes; To enhance the business of our customers by offering the highest solutions based on strong local expertise combined with the most extensive global network presence; To build an absolute N1 Logistics Provider Company in Georgia, leading the industry in terms of quality, profitability and market share”. This is the vision of Georgian Express Ltd team, which has been represented in this country since 1994 and has strongly developed along with countries economics and is now the official agent of DHL Global Forwarding and DHL Express in Georgia. DHL is the global market leader of the international express and logistics industry, specializing in
www.ebizguides.com
providing innovative and customized solutions from a single source. This rule is strongly followed by the Georgian team and the company is presented as one of the first logistic companies in the country, which offers expertise in express, air and ocean freight, overland transport, contract logistics solutions; dangerous good shipping and brokerage services as well as mail and heavy weight intra transportation, international services combined with worldwide coverage and an in-depth understanding of the local market. “International trade, logistics and globalization is the best solution for the current difficult economic downturn; as a result commodity exchange is an essential process which is delivered by the transport industry. We therefore offer the appropriate services to cater for rising demands” Mr. Malkhaz Papelashvili General Manager of DHL Georgia The company’s success is measured by considering the impact it has on its customers, the places where it operates and on its ethics. One contact person with lots of options is the core advantage. Each employee of DHL in Georgia is something of a ‘Logistics Consultant’ offering customers the best solutions, timing and pricing options for their cargo. DHL -The logistics company for the world.
Georgian Railway LLC Irakli Ezugbaia CEO 15 Queen Tamar Ave. Tbilisi 0112 Tel: (+ 995 32) 56 34 00 Fax: (+ 995 32) 56 47 00 (+ 995 32) 56 47 64 press@railway.ge, sag@railway.ge www.railway.ge
Georgian Railway LLC is an important part of the Euro-Asian Transportation Corridor that links Europe with Central Asia. The concept of a raillink between the two continents originates back to the 1830’s. On October 10th 1872, the first passenger train arrived from Poti to Tbilisi. This date is regarded to be the birthday of the Georgian Railway.
167
Transportation
168
www.ebizguides.com
Transportation
www.ebizguides.com
169
Transportation
The total length of the mainline is 2,344.2 km. Due to the challenging mountainous geography of Georgia, railway engineers have often been faced with some difficult challenges. They have had to construct many bridges and tunnels, which now include more than 3,700 constructions throughout the system. In this regard, the company is continuously working to improve the railway services and infrastructure. Georgian Railway’s main focus areas are transport service, passenger and freight traffic. Passenger transportation operates all over the country. Every year, over 4 million passengers travel by train. Freight transportation is also very important and the volume of freight traffic increases every year. In order to improve Passenger service, Georgian Railway has implemented many important projects. One of these projects is the modernization and renovation of the Passenger Rolling Stock. As of 2010, the trains that run on the mainline are all modern electric trains. Passenger trains ensure high levels of safety and meet all modern requirements. Train modernization and the improvement of technological infrastructure to the system increases freight capacity. Through the process of modernization of both fleet and infrastructure, travel time from Tbilisi to Batumi will be considerably reduced down to three hours. For the implementation of this project new bridges will be built and various kinds of infrastructure facilities will be reconstructed. A key project that is currently in progress is the construction of a new Railway Bypass in Tbilisi. In March 2010, the European Bank for Reconstruction and Development (EBRD) signed an agreement to loan 146 million CHF to the project. After this development, another lender, the European Investment Bank, infers to the same amount in May 2010. A three-year venture, according to preliminary estimates, is worth approximately 303 million CHF plus 18 % VAT. Georgian Railway will cover 30 percent of the total cost of the three-year project, while the EBRD and the co-lenders will cover the remaining 70 percent of the expenditures. Through relocation and consolidation of the existing rail facilities currently located in the city centre of Tbilisi, the project is expected to have a positive impact on the efficiency and safety of rail infrastructure. By relocating hazardous railway operations away from densely populated areas of Tbilisi and freeing up land in the city centre, the project will improve the urban environment and help
170
to expedite the planned urban regeneration. Being part of the Transport Corridor Europe-CaucasusAsia (TRACECA), the Project is expected to have a positive impact on the security of energy supply in Europe. The project includes the construction of a new railway line to the north of Tbilisi, as well as upgrades to existing infrastructure to connect the new line to the existing Baku – Poti line. The projects that have been completed and those still underway have helped to promote the development of the company and increase the level of confidence in the company. In May 2010, the rating agency Fitchrating gave the Georgian Railway a stable B+. Georgian Railway is the only Georgian (non-financial sector) company to receive the rating. Approximately 14,700 people are employed by the Georgian Railway and all staff and their family members are insured with a specific health insurance package. “Georgian Railway” LLC manages its current assets effectively. Therefore at present GR is a powerful, competitive transport company and a circle linking an entire economic system of Georgia.
Georgian Airways Ltd. (Airzena) Tamaz Gaiashvili President 12 Rustaveli Ave. Tbilisi 0108 Tel: (+995 32) 99-91-80 Fax: (+995 32) 99-96-60 tomac@airzena.com www.airzena.com Georgian Airways Ltd. (Airzena) was established in 1994 as a charter airline. The air company primarily operated charter flights to China, Egypt and other countries. It then gradually became a scheduled airline. In 1999 Airzena became the flag carrier of Georgia. In 2000, the air company’s management team made a decision to renew the Soviet technology fleet and leased two aircraft of Boeing 737-500 type from “Hapag-Lloyd” company. This marked the first operation of Western technology aircrafts on the Georgian market. In September 2007, three new aircraft of CRJ100 type were added to the fleet and in 2009 the company updated its air fleet with an additional
www.ebizguides.com
Transportation
Boeing NG 737-700 and an additional CRJ 200 aircraft. Plans to expand their fleet are in the pipeline, but depend on the trends of both Georgian demand and of the Georgian economy in general. Currently the fleet consists of 12 planes. The company has over 600 employees, the majority of which are well highly qualified technical staff. This represents the company’s emphasis on maintaining high standards of safety. Airzena’s priorities include the permanent and strict protection of flight safety standards, continual renewal of high quality service and comfort, and positioning themselves on the international level as a high quality airline. They offer competitive prices and currently fly to 15 destinations including Amsterdam, Vienna, Paris, Frankfurt, Dubai, Athens, Kiev and Tel-Aviv. In 2009, the company underwent an International Air Transport Association (IATA) operational safety audit and in 2010 they became members of IATA. Also in 2010, Airzena founded a tourism company called Airzena Holidays. Airzena Holidays offers discounted tourist packages to their customers, which include insurance options and other services. Airzena’s initiative was largely welcomed by both the Georgian people and the government. Georgia’s Minister of Economic Development, Zurab Pololikashvili, promised to support the newly established tourist company as he foresees its establishment as an important step towards the development of the Georgian Tourism sector. Key destinations will include Croatia, Egypt, Turkey and Italy.
Batumi Sea Port Ltd. Zurab Shurgaia General Director 20 Gogebashvili st. Batumi 6000 Tel: (+995) 222 76 261 zurabsh@batumiport.com www.batumiport.com Batumi Sea Port’s history dates back to the Roman Empire, when during the rule of Adrian III it was one of the harbors of the Roman market network. Batumi Port was and is defined with its geo-strategic and natural advantages. These advantages include the fact that it is situated in a natural deep water bay, it is well secured from the seaside and the port naturally possesses profound depths that have practically not changed over time and allow for the entrance of large vessels, which in turn avoids heavy channel dues. Batumi Sea Port Ltd is able to accommodate the needs of all its clients by offering quality service to various size cargo, general vessels, and passengers alike. Its services include loading and unloading operations, shipping agency and ship handler services, minor repair works, water supply and providing safety and security. In order to provide all above-mentioned services, the port has an extensive territory and specialized equipments. Namely, Batumi Sea Port has 5 terminals: Oil terminal, Container terminal, Railway ferry, Dry cargo terminal, and Passenger terminal.
In 2009, Airzena carried approximately 270,000 passengers and are expecting this figure to increase in 2010.
They are equipped with appropriate cranes and facilities to handle cargo in a timely and qualitative manner and satisfy their client’s demands.
Airzena works hard to establish partnerships with all of the worlds top airlines in order to expand their network and reach new routes for their passengers.
Batumi Sea Port is connected with the Caucasus region, Central Asia, Russia and Turkey by roads and railways. The Port is used as main transit port for Kazakh and Azerbaijan oil handling.
“Airzena is my own creation and I love and treat it like my own child” Tamaz Gaiashvili President
www.ebizguides.com
Batumi Sea Port is now managed by KazTransOil, a Kazakh firm dedicated to the transport, import and export of oil. The Kazakh government, with its huge oil reserves, is an excellent strategic match for securing the port’s future growth and development. With Kazakh involvement it will be possible to have a stable flow of oil via the transit corridor, thus supporting more than 20,000 Georgian workers on this route in addition to the already more than 2,000 employees in Batumi Oil Terminal and Batumi Sea Port. They are constantly developing the services
171
Transportation
and quality of the port’s infrastructure in order to maintain a competitive advantage as a first-class port and to improve their ability to serve their clients. “Batumi Sea Port is very important because it is not only a local port, but it also holds great importance on a regional level as a transit hub. For this reason, Batumi Sea Port’s success is an important factor for the success of Georgia as a whole. I feel very responsible for this and I am always trying to make the port the best that it can be for our clients and for Georgia.” Zurab Shurgaia General Director
Poti Sea Port Rony Saab General Director 52 D Aghmashenebeli St. Poti 4401 Tel: (+995) 39 32 06 60 Fax: (+995) 39 32 06 88 ronysaab@potiseaport.com www.potiseaport.com Poti Sea Port, with its historical and geographical location, represents a crossroad of the Caucasian corridor. Since its foundation, the commercial port has been considered to be of great regional importance. The ongoing process of world globalization has enlarged the regional borders and consequently, the scope of the port’s importance has expanded. The geographical location of Poti Sea Port significantly determines its focus towards cargo turnover within Europe and Asia. Currently 100% of stake ownership in Poti Sea Port belongs to Ras Al Khaimah (RAK) Investment Authority. In 2008, RAK Investment purchased the controlling 51 percent stake in the port from the Georgian Government, plus a further 300 hectares of land in its vicinity. In December 2008, RAK Investment bought the remaining 49% of Poti Sea Port. Poti Sea Port is a multifunctional port – investing into the development of infrastructure and modern operational technologies. It has great potential and is taking all the right steps to become a regional cargo hub for all of the top players in the shipping industry.
172
Terminals operated at present include: • General cargo terminals; • Bulk cargo terminals; • Container terminal; • Passenger terminal; • Ferry terminal; • Oil terminal. The key objectives of the port include the intensive development of existing facilities to reach full productive capacity of 10 million tons and the extensive development of the new port on the 100 hectors adjacent to the newly developed Free Industrial Zone to accommodate the potential turnover. The message that they are actively sending out to the international business community is that they are looking for investors who are interested in opportunities that involve the extensive development of the new Port and further developments of the present port facilities. “We serve all the biggest players in the shipping industry, however as opposed to the past, when they were using our facilities because they had no other choice, today the relationship has changed. They are now using our port as a port of choice. This is a result of our newly developed terminals and facilities. If a liner is forced to use your port for logistical reasons, they will utilize the minimal quantity of facilities, just to see a return on their investment. However, when you become a port of choice, they will actually use you as a regional hub, taking full advantage of all the port can offer. Poti Sea Port represents the only regional hub for the major liners on the east coast of the Black Sea”. Rony Saab General Director “Poti port is a very strategic port for the entire region serving primarily, Azerbaijan, Armenia and Georgia but also Kazakhstan and other countries. The port is already enjoying much success and we are very confident that it will continue to grow and improve. We are currently building a car terminal and have plans to construct a new jetty. For us this is a very important business investment and the future looks very positive. We also have a Free Industrial Zone in the vicinity of the port and we invite all investors to come and set up their industry within the free zone and benefit from the integrated facilities and services offered by the port. This is an excellent opportunity for all and we welcome you to come and see for yourselves”. Dr. Khater Massaad CEO Ras Al Khaimah Investment Authority (RAKIA)
www.ebizguides.com
Transportation
www.ebizguides.com
173
Transportation
TAV
Mete Erkal General Director TAV Urban Georgia LLC
Tbilisi International Airport Tbilisi Tel: (+995 32) 31-02-65 Fax: (+995 32) 31-03-22 info.tbs@tav.aero www.tbilisiairport.com
Batumi International Airport
Batumi Tel: + (995 222) 351 01 Fax: + (995 222) 351 00 bus.info@tav.aero www.batumiairport.com Tbilisi International Airport is the country’s largest airport and TAV Holding’s first project abroad that has been operated by TAV Georgia since October 2005. The new passenger terminal constructed by TAV Georgia commenced service in February 2007. At the Tbilisi International Airport, all operations inside and outside the terminal, ground handling and ramp handling services, Passenger Handling
service, flight Operation and communication, duty free, Primeclass CIP service and catering services are administered by TAV Georgia. Operating Tbilisi International Airport since 2005, TAV Airports continued its investment in the region and assumed the operation of the Batumi International Airport in May 2007. With its new runway, taxi route, apron and terminal building, Batumi International Airport is being operated by TAV Batumi Operations LLC, which is the subsidiary of TAV Airports holding. Their background rooted firmly in the aviation business, their strategy and professional principles guarantee high value for customers. Furthermore, they support Georgia’s attempts to develop the aviation sector. Civil Aviation in Georgia took a big leap forward in 2007 by opening two new international airports in Tbilisi and Batumi, hailed among the region’s most comfortable and efficient terminals. The opening of the new terminals has increased air traffic to Georgia, which is now served by national and foreign airlines. Direct air connections are available from Tbilisi to Istanbul, London, Munich, Riga, Tel Aviv, Kiev, Athens, Frankfurt, Paris, Amsterdam, Dubai and Vienna. TAV Georgia offers air companies a wide range of services in airports, as well as efficiency and on-time performance.
Batumi Airport is one of three international airports currently in operation in Georgia. The new airport terminal has been in operation since May 26, 2007
174
www.ebizguides.com
Transportation
Tbilisi International airport, operated by TAV Airports Holding Co., is the main international airport in Georgia
Shopping, dining, business lounges – all amenities are available while you wait for your flight. Tbilisi International Airport received an Award for Best Airport in Eastern Europe, CIS and Baltic States at Emerging Markets Airport Awards Annual Ceremony held in Dubai in April 2010, and organized by the marketing company Arabian Reach. This award gives TAV Georgia great benefits in its efforts to contribute to the expansion of the market. This recognition helps them strive to achieve operational excellence. Tbilisi International Airport, TAV Holding’s first operation abroad continues to lead as the most important airport in the Caucasus region. Within the modern terminal, there are different facilities to suit the operational requirements of airlines. The terminal can accommodate up to 2.8 million passengers per annum. The terminal building’s total construction area is 25,000 m². At the same time, 3 boarding bridges ensure the safe embarking and disembarking of aircrafts. Passengers are provided with quality services at 24 check-in desks and 32 passport control points. The airport has a safe car park with the capacity of 370 cars. The new apron’s capacity is 11 and the baggage claim system has the capacity of 2400 units per hour. In the terminal there are different commercial units,
www.ebizguides.com
restaurants/café-bars, fast-food area, Duty Free shops and lounges. TAV is currently working with various international airlines in order to best establish new routes that include Georgia as a destination. They are also interested in investors looking to help realize expansion projects at both airports. Strategically located within the Caucasus Region, Batumi International Airport is Georgia’s second major airport and is built in full compliance with international standards. The terminal can accommodate up to 562,500 passengers per annum. The airport serves both international and domestic flights, where there are different facilities to suit the operational requirements of airlines. The passenger terminal at Batumi International Airport, new runway, taxiway and apron started functioning in May of 2007. “We represent the first and last face of Georgia to its visitors, therefore we take great pride in the fact that passengers arrive and depart from a top quality international airport that is constantly trying to improve its service.” Mete Erkal General Director
175
176
PUBLIC SERVICES
H
177
Public Services EDUCATION
UNIVERSITY EDUCATION
THE EDUCATION SYSTEM The standard of education in Georgia is one of the most important aspects that set forth society’s development. In 2004, Georgia imposed new reforms that included the transformation of teaching methods, teacher training, new textbooks, a new curriculum and finally new methods of evaluating.
PRESCHOOL, ELEMENTARY, MIDDLE AND HIGH SCHOOL In Georgia, there are both public and private schools. In addition to the Georgian public language schools, there are also a number of foreign language schools including, Russian, Armenian, Turkish, Ukrainian, French and German. More people are also choosing for their children to attend private Georgian schools and international schools where the primary language of teaching is in English, Russian, Turkish, French or German. As a result of this, more and more of the young population can now understand and speak English.
There are many public and private universities throughout Georgia, all providing undergraduate and postgraduate degrees. The largest public university is Tbilisi State University, where one will find a number of different faculties all offering a wide selection of degrees in areas such as; Pedagogy, Technology, Medicine, Agriculture, Language and Culture, and Veterinary Medicine. Entry requirements for both public and private are set by taking a national entrance exam (UNE), consisting of compulsory tests in Georgian language and literature and foreign language skills. Also depending of the specific department there are tests in: Mathematics, History and Geography, Biology, Chemistry and Physics. Those students that excel will have their education paid for by the government.
In Tbilisi, there is a private American institution, Guivy Zaldastanishvili. With the exception of Georgian and Russian, all other subjects are taught in English. The new International Baccalaureate Primary Program allows students from all over the world to come and study in Georgia.
The well established and prominent Caucasus University
One of Tbilisi’s Public Schools
Georgian university students on graduation day
178
www.ebizguides.com
Public Services HEALTHCARE Since the Soviet era, the Georgian government has drastically been trying to develop and improve their healthcare sector in a number of different ways. Firstly, they have been targeting training and privatisation issues in order to modernize the system and have a highly qualified workforce. The government understand that this is something that is going to take a while to develop but they are keen to demonstrate that changes have been made which, in turn will attract investors. For example, the new state insurance programme has brought thousands of Georgians back into the former healthcare system, where there are no taxes to be paid on any health services’ in the country. As Minister Kvitashvili was keen to suggest “as long as the well being of Georgians grows and the economy develops, people will have more money to spend and, given the structure of the household expenditures, people will spend money on health.” Minister Kvitashvili also stressed that the undeveloped infrastructure should be seen as potential for investment and not as a discouragement. In the meantime, as the Georgian economy continues to grow, the healthcare Industry, along with all the other sectors, has a very positive outlook for the future.
H
New and reformed laws have shown this progressive growth; over-the-counter drugs can now be purchased in supermarkets and other similar stores, which likens the procedure practiced in the United States and other countries. They are also looking to implement a policy allowing doctors to prescribe drugs to patients using state insurance policies. One of their other initiatives is to make it easier for new types of drugs to come onto the Georgian market. According to the minister, the government wants to pass a bill allowing the registration process to be simpler. The government also has the New Hospitals Programme initiative, which is currently underway and is aimed at building 100 new hospitals with 7,800 beds. Their current concern is they have several hospital beds which are located in the wrong areas with poor infrastructure. Minister Kvitashvili went on to say, “With Georgia, what appeals people, and rightly so, is the infrastructure,” Old, rundown buildings, most of which were not initially built as hospitals, especially in the downtown area, need severe repair and renovation. This initiative has attracted many foreign investors.
The healthcare sector is witnessing large improvements to the quality of facilities and services offered
Tbilisi State University
PRIMARY HEALTHCARE From 2003 to 2009, the development of the primary healthcare sector in Georgia has resulted in 178 primary health care facilities and the retraining of 1,200 family physicians and 1037 general nurses. This development has been especially noted in the rural areas.
www.ebizguides.com
179
Public Services
Cleaning the streets of central Tbilisi
SECURITY IN GEORGIA Security throughout Georgia has dramatically improved in the last few years due to tighter policing and surveillance. These measures have led to a rise in public confidence, especially in the transport sectors. Foreigners and citizens are far more comfortable walking through the cities as there is around the clock police presence. The Georgian Government took stringent steps in order to fight and permanently remove the corruption that once tainted the country. Without a doubt, Georgia has come a very long way in making its people feel extremely safe, whether this is at home or in society itself. Below are a few of the measures that the Georgian government has taken in order to build public confidence: Since 2004, Georgia has a fully functioning Subway Police Patrol Unit that consists of 22 stations and 27 checkpoints. There are more foot patrols in the streets that are helping to prevent and eliminate street crime. The police force also controls traffic flow and quickly reacts to infringements committed by pedestrians.
180
Security is taken very seriously, which makes Tbilisi one of the safest cities in the world
www.ebizguides.com
Public Services MAIN ENTITIES Aversi Group Dimitri Jorbnadze General Director 27b Vazha-Phashavela Ave. Tbilisi 0160 Tel: (+995 32) 39-98-88 Fax: (+995 77) 39-93-70 dima@aversi.ge www.aversi.ge Aversi Group was established in 1994. The business began by importing medicines, which created the basis for establishing a pharmaceutical network. The company has since seen exponential growth and nowadays Aversi is the owner of 35% of the Georgian Pharmaceutical market. The company is both vertically and horizontally integrated as it operates in four different spheres of business. Aversi-Pharma, Aversi-Rational, Aversi Clinics, and Alpha Insurance. The company upholds international standards as it holds an ISO 9001 certificate. The group is the one of the largest taxpayers within Georgia, as it contributes millions of GEL to the state budget on an annual basis. Aversi-Pharma owns the country’s largest chain of drugstores, with more than 190 outlets throughout Georgia. Every medicine registered in Georgia is available at Aversi drug stores and likewise one can get a qualified consultation about any medicine. At Aversi, drug stores services are rendered with a smile and clients are given hope and inspiration for a cure to any disease. There is a high level of consumer trust in Aversi. Such a trust has been obtained by hard work, by taking care of the population and by smart planning of service resolution management. Qualified consultation and quality medicines are now available in every town of Georgia. In order to make the service available for clients, Aversi widens its network day by day.
H
origin and has a state-of-the-art internal laboratory with all necessary equipment to perform chemical analyses on raw materials. Aversi Clinics are medical ambulatory-polyclinic institutions, corresponding to world standards and outfitted with the newest medical equipments and technologies. The clinics are capable of providing all types of medical services. There are currently 7 clinics around Georgia, the first of which was built in Marneuli in 2007. The clinics offer an excellent balance between the quality of service and prices. Aversi clinics pride themselves on their extremely professional and well-trained hospital staff. They constantly run training programs abroad to make sure the staff is qualified and capable of providing the kind of high quality services the Aversi group expects. Alpha is Aversi groups latest venture, established in December 2009 and is the Aversi Group’s medical insurance company. Alpha is developing very fast and in just three months, it insured a total of 72,000 people. They are still developing their insurance packages and aspire to achieve a larger share of the market in the near future. Aversi has participated in numerous social projects since the day it was founded, many of which have been organized by Aversi itself. Within the framework of the project designed to materially assist the families with multiple children, namely with 5 and more children, the pharmaceutical company has already helped more than 1,500 families. Charity dinners organized by Aversi are already considered a tradition. Having considered all the abovementioned, it does not come as a surprise that the company name Avesri is positively associated with quality, reliability and stability.
Aversi Group is also the second largest producer of pharmaceutical products on the Georgian market through its company Aversi-Rational. AversiRational launched its first medicine in May 2005. Today, it is a modern Georgian pharmaceutical manufacturer that competes on an international standard, producing high quality and reliable products. As of 2010, the company produces over 85 types of medicines. Aversi-Rational is outfitted with the newest medical equipment from American, Japanese, English, German and Italian
www.ebizguides.com
181
Public Services
Caucasus University Kakha Shengelia PhD President 77 Kostava St. Tbilisi 0175 Tel: (+995 32) 31-32-25 Fax: (+995 32) 31-32-26 info@cu.edu.ge www.cu.edu.ge Caucasus University is a privately held university and was established in 1998. CU is a new institution founded on the base of Caucasus School of Business, which was established during the transitional period of the country, when Georgia was making the first attempts to move from a planned to a free market economy. Caucasus University stands out as it is an American style university run by a young and dynamic staff and faculty. All of the faculty members have PhD’s or MBA’s from western countries. They have 65 partners throughout the globe and more the 300 students studying abroad. Caucasus University is constantly reaching out to foreign educational institutions to establish partnerships and connect with students from all over the world to present all the opportunities that CU has to offer. Caucasus University consists of 7 schools: Caucasus School of Business, Caucasus School of Law, Caucasus School of Media, Caucasus School of Technology, Caucasus School of Governance, Caucasus School of Humanities and Caucasus School of Tourism. Caucasus School of Business The mission of CSB is to assist Georgia’s transition from a planned to a free market economy through training of a new generation of business professionals and to provide Georgia and neighboring countries with future business leaders. Its main purpose is to offer undergraduate, graduate and postgraduate programs that satisfy international standards as well as excellence in teaching and research. PhD program in partnership with RCB, Georgia State University (Atlanta, USA): • Finance • Management • Marketing
182
Dual degree MBA/EMBA program in partnership with Grenoble Graduate School of Business (Grenoble, France): • Global Management • Management Consulting • Business Intelligence Master’s Degree of Business Administration in: • Finance • Management • Marketing • Health Care Management Dual Degree of Bachelor of Business Administration in partnership with J. Mack Robinson College of Business, Georgia State University (Atlanta, USA) in: • Management • Finance • Marketing Dual Degree of Bachelor of Business Administration in partnership with Chester University: • Management • Finance • Marketing Bachelor’s Degree of Business Administration in: • Finance • Accounting • Management • Marketing For more information about the many programs that are offered by Caucasus University’s other schools, full details can be found on their website. www.cu.edu.ge
National Family Medicine Training Centre (NFMTC) Dr. Irine Karosanidze CEO 57 Tsinadzgrishvili St. Tbilisi, 1060 Tel/Fax: (+995 32) 95-98-66 nfmtc@nilc.org.ge www.nilc.org.ge The National Family Medicine Training Center (NFMTC) was established within the United Kingdom’s DFID Georgia Primary Health Care Development Project. Since its establishment, it
www.ebizguides.com
Public Services
has been a central place for piloting family medicine activities in Georgia.
International Black Sea University
It provides comprehensive medical and preventive care for the Georgian population. About 200 health professionals work in the centre. The medical center is currently owned by the local government, but is looking to privatize in order to realize expansion plans.
Prof. Dr. Ahmet Çetin CAN Rector D. Agmashenbeli Alley 13th km No.2 Tbilisi 0131 Tel: (+995 32) 59-50-05 Fax: (+995 32) 59-50-07 rector@isbu.edu.ge www.ibsu.edu.ge
The NFMTC provides leadership and guidance to all family medicine training centers in Georgia. They initiated the first family medicine practices in Georgia, designed and implemented the first training programs in family medicine and developed training materials for family physicians, general practice nurses and practice managers. The NFMTC’s objectives are to: • Provide high quality health services for its patients • Implement the national policy of Healthcare as dictated by the Government • Provide leadership and guidance to the network of Regional Family Medicine Training Centers • Provide a model of top level learning organization and develop the best practices in the field • Conduct training in family medicine and prepare trainers • Undertake R&D in family medicine and teaching methodologies The NFMTC’s main activities include: • Running the clinical practice based on the principles of general practice/family medicine • Designing and implementing residency training programs in family medicine for family physicians, general practice nurses, and practice managers • Developing training materials for family physicians, general practice nurses and practice managers • Designing and implementing of short courses for continuous professional development in family medicine
www.ebizguides.com
H
Activity: University Founded in 1995, IBSU is a University that has the objective of training Georgian and foreign students in scientific, technical and professional fields of study, and of utilizing these studies in the field of pure and applied research for contributing to the economic and social necessities of Georgia and other developing countries. Since its inception, the language of instruction has been English. IBSU was opened by the President of Georgia and the Prime Minister of Turkey in accordance with the decree of the Council of Ministers and the License of Opening given by the Ministry of Education of Georgia in 1995. International Black Sea University keeps on improving its quality in many aspects. At the present campus, they have equipped labs, classrooms, library, arranged garden and a sports hall. They are currently able to accommodate 1,000 students. Construction has begun of the new campus and they plan to finish and move there in September 2011. The new campus will be able to accommodate 5,000 students. They forecast the 80% of the future student body will be international students. In response to changes in educational rules and educational standards of American universities, they have modified IBSU Internal Regulation and curricula. This makes the university more adaptable to foreign universities. For the purpose of improving education quality at IBSU they work on establishing educationalscientific relations with American universities. They have visited more than 20 universities in the US. The purpose of these visits is to achieve agreements in terms of student exchange, faculty exchange, taking courses in the US, opportunities to get an American diploma, and inviting professors to deliver lectures at IBSU. They currently have the
183
Public Services
Southern Polytechnic State University, University of Northern IOWA, and Troy University as American partners, as well as a relationship with the International University of Geneva.
MediClubGeorgia Dimitri Makhatadze General Director 22a Tashkenti st. Tbilisi 0160 Tel: (+995 32) 25-19-91 *1991 Fax: (+995 32) 25-09-11 mcg@mediclubgeorgia.ge www.mediclubgeorgia.ge
for the Following embassies: US, Netherlands, Israeli, Italian, French and German. A contract assigned coordinator plans and coordinates all communication with the client and ensures comfort and satisfaction. With a sister clinic in Azerbaijan and multiple site clinics both in Georgia and Azerbaijan, professionals from both countries achieve multilateral benefits and success and deliver powerful resources for future improvement. For the 10 years of existence, MediClubGeorgia has created the infrastructure to provide an environment that makes patients feel safe, employees – proud and partners – satisfied.
Activity: Healthcare
PSP Group
Headquartered in Tbilisi, MediClubGeorgia provides comprehensive, flexible, internationalstandard medical care 24 hours a day and 7 days a week. Housed in a state-of-the-art medical centre fully equipped with brand new and high-tech medical equipment, MediClubGeorgia provides a full portfolio of medical services including GP services, Cardiology, Interventional cardiology, Pediatrics, Gynecology, Emergency & Ambulance services, Laboratory and Diagnostic services, Rehabilitation, and Occupational health services. Full capacity inpatient services are rendered in modern facilities designed and equipped in accordance with western standards. 2 operating theatres allow provision of a broad range of traditional and minimally invasive surgical treatment options to patients. The company provides in-country medical evacuation services and makes arrangements for international evacuation. Company contracts with leading international hospitals allow planning and execution of international evacuations timely and in a smooth manner.
Gocha Gogilashvili Director 148/III Agmashenebeli Ave. Tbilisi, 0112 Tel: (+995 32) 18-51-11 Fax: (+995 32) 94-32-67 gocha@psp.ge www.psp.ge
MediClubGeorgia attracts and maintains its clients by ensuring totality in the quality of care for the patients – excellence in patient care, medical doctors and staff with best medical knowledge and experience, the latest technology available and courtesy by which all patients are treated by all staff. A long list of clientele includes corporate clients such as British Petroleum (BP), European Union Monitoring Mission (EUMM), EUSR South Caucasus Border Support Team Tbilisi (EUSRS), Seacor Environmental Services, AOQC Moody International. MediClubGeorgia is also on the top of the list of preferred medical providers
184
The company name PSP is the abbreviation of the Latin expression, “Paulatim Summa Petuntur” and in Georgian it means “step by step to the peak”. PSP Group has been working in the Georgian pharmaceutical market since 1995 and since then has become the largest and most trusted pharmaceutical company in Georgia. PSP was created on Georgian capital and its founders are Georgian doctors - Kakha Okriashvili and Gocha Gogilashvili. They were young when they started the creation of the company in halfruined post-war Georgia without any capital. Nowadays, thanks to them, PSP has become a broad, authoritative and solid company. PSP Group has four strategic business units. These include PSP Distribution, PSP pharmacy chain, PSP Hospitals, and GMP. PSP Distribution was their first scope of operations and distributes medication from more than 100 international pharmaceutical companies to the Georgian market. The company was the first official distributor of European medicine in Georgia in 1995. PSP was the first company in Georgian pharmaceutical sector to make contacts overseas
www.ebizguides.com
Public Services
and the key factor for these relationships was for the interest of the Georgian population. PSP pharmacy chain has 150 pharmacy shops all around Georgia and had served 1,800,000 customers by 2010. It offers customers a wide range of high quality medicines, broad spectrum of hygiene and assortment of cosmetics. PSP pharmaceutical chain holds the international certificate ISO: 9001-2000. PSP was the first pharmaceutical network given the international certificate in the post Soviet area. PSP Hospitals have been part of the PSP group since 2007. By the summer of 2011, PSP hospitals will have 150 hospital beds spread throughout the country. The hospitals are still under development and will be equipped with state-of-the-art and high quality medical equipment. GMP, PSP’s pharmaceutical manufacturer, has been operating in the Georgian market since 1999. The company produces 140 types of medicines and introduces on average 15 new medications to their production each year. GMP is the largest finished pharmaceuticals manufacturer in the Caucasus region. Its factory is located in Tbilisi and is equipped with modern technology for making solid dosage forms (tablets, coated tablets and hard gelatin capsules). The total capacity of the plant is 500 million tablets and 200 million capsules per year. GMP produces medicine from the raw materials stage right up to its packaging. This gives the company the opportunity to control quality at each stage of production. The company imports approximately 3,000 types of ingredients for medicine production with 3,000 suppliers throughout the world including the USA, Europe and Asia. In 2009, the total turnover on the local market was approximately USD 10 million, plus USD 5 million from exports. 75% of GMP’s production is sold on the local market and the remaining 25% goes to export. In 2010, the company plans to increase exports to more than 30% of the total share. GMP exports its medicines to 12 countries throughout the world including Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, Uzbekistan, Azerbaijan and Ukraine. Plans are set to enter Belorussia and Moldova, the Libyan Arab Republic, Sierra Leone and Vietnam in 2010.
www.ebizguides.com
H
PSP Group works hard to facilitate healthcare for people who need it and help to maintain a healthy population. One of their main focuses is to be the best organization in the field and to serve as an example in the country. They pride themselves on their values of honesty and professionalism in relation to themselves, the Georgian people, and their partners.
Tbilisi State University Giorgi Khubua Rector 3 Chavchavadze Ave. Tbilisi 0179 Tel: (+995 32) 22-56-79 Fax: (+995 32) 25-02-12 khubua@tsu.ge www.tsu.ge A famous western educated Georgian historian, named Ivane Javakhishvili and the group of his followers founded Tbilisi State University (TSU) in 1918. It was the first institution of higher educational in Caucasus at that time. At the start, the university had only one faculty – the faculty of philosophy. In the beginning of 1918, the board of professors and lecturers numbered 18, the student body of the university accounted 369 students and 89 free listeners. Despite the Communist ideology and censorship, Tbilisi State University managed to maintain enthusiasm, devotion to national ideals, and establishment of scientific centers and raised the prominent members of Georgian intelligentsia. Today TSU is the largest university in Georgia with 6 enlarged academic units (departments) and 18,422 students. There is 873 fulltime and 899 part-time academic staff at TSU. TSU has eight campuses, 3 scientific-research and study-scientific institutes, 81 scientific-research laboratories and centers, 161 study laboratories and rooms, clinical hospitals, diagnostic centers and libraries. In May 2005, Georgia joined the Bologna process and the transformation of the Georgian educational space began. Major novelties were introduced in Tbilisi State University. In 2006, the university successfully passed the institutional accreditation for the period of 2007-2012. New specialties have established at the University and new rules for administrative and academic registration was enforced.
185
Public Services
By making the university more demand-driven for both the domestic and international markets, and better understanding how intellectual property can be utilized as an income source (e.g.: the commercialization of research activities and publications) the university hopes to create new products and services that will contribute to its sustainability and independence. The development of internationally recognized accreditation standards and PhD and certification programs, TSU hopes to attract more international students, as well as to allow Georgian students increased opportunities to study abroad. This also speaks to the development of western-thinking leaders in the country as well as the wider region by making the university more demand-driven for both the domestic and international markets and with the development of internationally recognized accreditation standards and programs.
Tbilisi State Medical University Prof. Zurab Vadachkoria M.D., Ph.D. Rector 33 Vazha Pshavela Ave. Tbilisi 0177 Tel: (+995 32) 54-24-44 Fax: (+995 32) 54-24-41 vadachkoria@tsmu.edu www.tsmu.edu Activity: Medical University Tbilisi State Medical University (TSMU) is a leading Medical University in the Caucasus Region. TSMU was founded as Tbilisi Medical Institute in 1918 and became the Faculty of Medicine within Tbilisi State University (TSU) in 1930. Tbilisi State Medical Institute was renamed to Tbilisi State Medical University in 1992. Since then, the University operates as an independent educational institution.
186
TSMU became one of the highest-ranking statesupported institutions of higher education in the whole of the Caucasus Region. Currently, there are almost 5000 undergraduate and 203 postgraduate students at the University, 10% of who come from foreign countries. Tbilisi State Medical University (TSMU) is a full member of the following international organizations and associations: • European Universities Association (EUA) • Association of Medical Education of Europe (AMEE) • European Association of International Education (EAIE) • European Medical Students Association (EMSA) TSMU closely collaborates with: • WHO • World federation of Medical Education (WFME) • UNESCO • Educational Commission for Foreign Medical Graduates (ECFMG) • Schwaitser World Academy (SWA) Tbilisi State Medical University has undergone the Institutional Evaluation Program, performed by Association of European, and therefore boosts international standards. The university is constantly looking to expand its international student body and is specifically looking to India and Asian countries. The administrators truly believe that the more cosmopolitan the student body becomes, the richer the educational environment will be.
www.ebizguides.com
Public Services
www.ebizguides.com
H
187
188
AGRICULTURE
189
Agriculture OVERVIEW Georgia has a long tradition of agricultural production. Its fertile soil and favourable climate conditions have contributed to the development of this sector. Even the name “Georgia”, which derives from Greek meaning, “to till the land”, suggests an ancient history of farming. At the end of the Soviet era, the agricultural sector accounted for 27% of the country’s GDP and supplied the Soviet republics with major produce such as tea, citrus, grapes/wine and potatoes.
In 2008, the agricultural sector, which included hunting, forestry and fishing, accounted for 1,703.9 million GEL (approximately USD 950 million), which was 8.9% of the total GDP. 1.6 million people are currently employed in this sector, which accounts for about 53% of the work force. However, despite this sector’s huge potential and importance to the economy, only 0.5% of the total FDI in 2008 was invested in Agriculture.
Seasonal Fruits and Vegetables are locally grown and are found in abundance year round
190
www.ebizguides.com
Agriculture
Wine is the second most important agricultural product in Georgia
MAIN INDICATORS OF AGRICULTURE DEVELOPMENT Georgia has a lucrative agricultural market; this is due to its fertile soil and climatic conditions. Almost all types of agricultural products can be grown in Georgia as the country benefits from nine climatic zones with arable land occupying up to 85% of the country’s total land area. The climatic conditions are good for the production of a variety of agricultural products including graincrops, melons and gourds fruit, tea and citrus fruits.
cow species is widely found in the northeast. These cows are black and brown and weight approximately 275 kg. They are mainly used for meat production, but also to some extent for milk production. The Mengrelian, which are a reddishbrown cow species, weight approximately 300kg and can be found in western Georgia. The milk yield of this species ranges from 500 to 15,000 litres per lactation and is used for the production of Imeretian and Sulguni types of cheese. Each small farm possesses on average 1-3 cattle head, which graze in free pasture fields.
With significant investment in technology and infrastructure, Georgia’s agricultural sector has the potential to export a range of different agricultural produce, from wheat, cereal, soy, cooking oil and corn to nuts, tea, citrus, and herbs. Georgia’s viticulture sector in particular has significantly increased its exports due to large foreign investments.
ANIMAL FARMING Animal farms with different cattle can be found in many regions of Georgia. The Caucasus mountain
www.ebizguides.com
Animal husbandry, mainly the keeping of cattle, pigs, and sheep, accounts for about 25 % of Georgia’s agricultural output
191
Agriculture FISHERY Georgia has the perfect environment for the development of aquaculture. It possesses many rivers and pools with high-quality water. The domestic fishing industry is undeveloped in the country and Georgia’s fishing fleet is small and includes 36 medium-size fishing boats of Soviet vintage. There are also 735 small vessels, which engage in catching fish along the coastline. However, the poor material and technical aspects of these vessels means that many of them are beyond repair. Most fish products consumed in Georgia are imported. Market research has revealed that the demand greatly exceeds the supply. With the right investment and infrastructure developments, the fishing industry has much potential to become a very lucrative business in Georgia.
PLANT FARMING Wheat, maize, sunflower, potato, vegetable, fruit, citrus, grapes and tea are all cultivated in Georgia. Crops produced in Georgia mostly meet the demand of domestic market. However, a large amount of wheat is imported, as the infrastructure of wheat production is undeveloped. The majority of Georgia’s wheat demand is met by imports. The outdated machinery and the lack of resources to fund farmers and renew the equipment does not allow for large-scale wheat production. There
is huge potential for the development of largescale wheat production, as the demand and environmental conditions are extremely favoured to this industry.
WINE INDUSTRY The most important sector in Georgian agriculture, and also a matter of national pride, is the wine industry. Georgia is widely regarded as one of the first places in the world to produce top-quality wines. There are over 4,000 vine varieties in the world, 450 of which are bred in Georgia. 62 types of these vines are put into a standard assortment in order to produce 29 varieties and 9 table wines. The most famous quality standard Georgian varietals are: Rkatsiteli, Saperavi, Mtsvane, Khikhvi, Kisi, Chinuri, Tsolikauri, Tsitska, Krakhuna, Aleksandrouli, Ojaleshi, Chkhaveri, Aladasturi and others. However, foreign varietals are also cultivated in Georgia, such as Aligote, Pino, Shardone, Cabernet Sauvignon, Shasla and Khalili. In 2006, Russia’s trade embargo with Georgia greatly affected the wine industry. Prior to the ban on Georgian products, 80% of Georgia’s wine exports went to Russia Georgia is struggling to revive wine exports as the Russian embargo entered its fourth year in March 2010.
Georgia’s climate and soil have made agriculture one of its most productive economic sectors
192
www.ebizguides.com
Agriculture
exports and nearly 10 percent of the total number of exported goods to the EU. Traditionally, wine has been one of Georgia’s largest exports. Today, CIS countries such as Ukraine (36.7% of total wine exports), Belarus and Kazakhstan are the largest buyers of Georgian wine. Significant investments have been made to expand the wine industry and to implement further developments. At present, most companies are equipped with up-to-date production facilities, however a modernisation process is still underway which will eventually allow companies to increase production capacity and improve the whole winemaking process.
IMPACT OF GOVERNMENT REFORMS
Georgia has one of the world’s oldest and finest winemaking traditions
The embargo was imposed when Russia’s public health chief, Gennady Onishchenko, deemed Georgian wine unfit for consumption. Georgia maintains that the ban was politically motivated and not an issue of quality. Georgia exported 59.3 million bottles of wine in 2005. Exports then plummeted 67% in 2006 to 19.5 million bottles and have hovered around 11-12 million bottles a year ever since, according to the Agriculture Ministry. Despite the Russian embargo, Georgian wines continue to expand into foreign markets. Just 10% of Georgian wine is sold at home – 90% is exported. According to statistics conducted by the Ministry of Agriculture, there are over 200 Georgian wine bottlers in the country. 50 wine companies exported over 6 million bottles of wine to 42 countries in the first two quarters of 2009. Wine exports to the EU were worth nearly USD 6 million in 2009. This represents 28% of all wine
www.ebizguides.com
Through implementing a set of reform policies, considerable progress has been achieved in the agriculture sector. As a result, Georgia offers increasing opportunities and an attractive environment for foreign direct investments. Provided below are brief descriptions of the reforms which have had a significant impact on the sector’s development. Land reform is of paramount importance for the development of this sector. A new stage is under way for the privatisation of agricultural land, which is to include the plots that still remain under state ownership. Development of the land market - A smoothly functioning land market is a necessary precondition for the effective use of the land resources available in Georgia. Land reform allows farmland to be sold in order to ensure that agricultural land is transferred from less efficient to more efficient owners. The development of the land market is designed to stimulate foreign investment inflow into the agricultural sector. Taxation is one of the main determining factors of the quality of the business environment. Important steps have been made to liberalise the taxation system in Georgia. The new Tax Code provides for the abolition of tax on transactions in property, zero percent profit tax and VAT, zero percent VAT on primary supply of agricultural products, and zero percent import duty on agricultural and other equipments.
193
Agriculture INTERNATIONAL TRADE Georgian agricultural products traditional market consists of former soviet countries, where Georgian brands are widely recognisable and consumer preferences, in favour of Georgian products, remain popular and strong. Despite the difficulties associated with access to western markets, some types of products including wine, mineral water and nuts have established themselves on the markets of the United States, and Western and Eastern Europe. Georgia’s accession to the WTO in 2000 has been hugely beneficial, ensuring better access for its exports to international markets, the elimination of discriminatory trade with Georgia, the protection of the domestic market against dumping and falsification, and fair and objective settlement of disputes. All together, these changes, innovations and development trends have created a desirable environment for foreign investments to Georgia. The attraction of both internal and external investments will help the agricultural sector to reach its full potential, which in turn will facilitate
the process of gaining access to niches markets abroad. The needs of this growing sector, especially at the current initial stage of modern agro-business in Georgia, offer many opportunities for foreign investors. Foreign Investors may enjoy: • 0% of property tax on small plots of land (less than 5 ha) • 0% of property tax on property transactions • 0% VAT on primary supply of agricultural products • 0% of import duty on agricultural and other equipment • GSP with United States, GSP+ with EU, FTA with Turkey and CIS countries. • Good climatic conditions for growing a variety of products • Rich tradition of winery, citrus, cattle breeding and others • Opportunity to privatize agricultural land • Cheap and skilled human resource base • Liberal labour code • Strategic link from East to high value Western markets
Sunflowers seeds used for refining sunflower oil
194
www.ebizguides.com
Agriculture
• Well developed transport sector including railway and sea ports essential for effective exports of agricultural goods • Wide-range of climatic zones year round and off-season crops • Pure, rich and pesticide free soils - Ideal place for production of organic food
VISION The vision of the Ministry of Agriculture in Georgia is to facilitate the creation of an appropriate business environment and to encourage private sector investment, mainly directed toward the expansion of agricultural exports. Meanwhile, their mission is to develop commercially in order to generate income among rural households and reduce rural poverty.
MAIN ENTITIES Agritechnics Holding Fady O. Asly President & CEO 1 Nutsubidze St., Tbilisi 0177 Tel: (+995 32) 39-90-88 Fax: (+995 32) 39-99-37 asly@agri.ge www.agritechnics.net Agritechnics Holding has been operating in Georgia since 1998, initially as Agritechnics LLC. The company began its activity with the import and transit to the countries of the South Caucasus and Central Asia of fresh and frozen food products. The company opened branch offices in Poti and Batumi, the main ports of Georgia located on the western edge of the country on the Black Sea coast, in 1998 and 2000 respectively. Today Agritechnics Holding has 10 branches in the main cities of Georgia. Agritechnics Holding is well known for its distribution of high quality products, reliable service, and competitive prices. In 2002, the company extended its activities to cover distribution of agrochemicals, fertilizers and irrigation equipment. Agritechnics Holding is now widely acknowledged as a reliable partner for foreign companies wishing to expand and distribute their products in the countries and
www.ebizguides.com
markets of the South Caucasus and Central Asia. Agritechnics Holding remains committed to Georgia and to the South Caucasus region. As our company continues to expand, we look forward to developing future partnership opportunities to further demonstrate our commitment to the region. Our team is dedicated to the economic growth of Georgia and its neighbors. We look forward to participating actively to bring future prosperity and increased commercial development to the region and its population.
Caucasus AgroDevelopment Rati Mekvabishvili CEO 74 Chavchavadze Ave. Tbilisi 0162 Tel: (+995 32) 22-74-46 mailbox@agrofund.ge www.agrofund.ge Caucasus AgroDevelopment (CAD) is a joint stock company organized under the laws of Georgia. CAD invests in the agricultural sector in the Caucasus region, with their primary focus on Georgia. The company intends to concentrate on building a sizeable dairy farm as well as several greenhouses and storage facilities for the production and storage of vegetables. Their agricultural production will be mainly sold on the domestic market. The company has identified the following sectors as key focus areas for its investment activities: plantgrowing, cattle-breeding and poultry production, silkworm and fish breeding, bee-keeping; development of agriculture processing industry including sorting, packaging, freezing, cooling, secondary processing, conservation, etc., as well as the development of a full agriculture production chain (growing, storage, processing, marketing and trading). In June 2008, CAD launched its first project, which envisages a greenfield construction of a dairy farm. For this purpose, CAD purchased 1,700 ha of agricultural land in the village of Lemshveniera in the Gardabani district (South-East Georgia) under the State program 100 New Rural Enterprise. CAD plans to employ several dozens of villagers to revive the local irrigation system, build a farm and cultivate land. CAD also plans to purchase 1,000 heads of highly productive dairy cows, such as
195
Agriculture
Brown Swiss as well as other dairy breeds, in the near future. CAD assesses investments in this project at over 7 million GEL. Another project in the company’s pipeline is the use of around 5 ha of purchased land plot in Gardabani for vegetable production and land cultivation. The company intends to focus on the production of tomatoes and cucumbers in greenhouses to capture 1% of the domestic market share. CAD is managed and overseen by a group of professionals, with significant experience in financial services and the agriculture sector.
The Farmers’ Union of Georgia Raul Babunashvili President 142a Tsereteli Ave Tbilisi 0119 Tel/Fax: (+995 32) 95-12-00 office@gfu.ge www.gfu.ge The Farmers’ Union of Georgia was established on May 1, 1992. The members of the union comprise of 25,000 small farmers and approximately 500 agro companies, cooperatives, agricultural enterprises, farmers‘ associations, and large farmers who rent around 10-500 ha of land in order to produce agricultural products. The union’s members are present in nearly all regions of Georgia. The Farmers‘Union provides support to farmers for developments within different areas of agricultural matters and with sales of production throughout
196
Georgia and abroad. The Farmers‘Union also assists local organizations with the creation of cooperatives, credit unions and agro service enterprises. The Union protects the interests of the farmers and businessmen and acts on their behalf in Parliament and the Government and likewise, provides its members with legal advice. A Farmers‘University has also been established to provide free education to farmers in different agricultural sectors. The Union has established a consulting center where the farmers can come for advice and consultations and obtain information on different agricultural issues namely: plant-growing, livestock breeding, marketing, relationship with banks and corporations, credits, technical services. The Union publishes a monthly paper called “Chemi Mamuli” (My Estate), which has become the farmers‘favorite paper. The paper provides farmers with information concerning experience in the agricultural sectors of foreign markets and new technologies for the production of different crops. In accordance with the objectives of the Farmers‘ Union, they often organize lectures, scientific conferences and seminars. The Farmers‘ Union implements the principles of cooperatives existing in foreign countries. It takes part in international programs for technical and financial assistance and facilitates the exchange and training of specialists abroad. It prepares projects to attract investments and performs joint activities within the agricultural sector. The Union extends its cooperation with foreign organizations by participating in international programs.
www.ebizguides.com
Agriculture
www.ebizguides.com
197
COMPANY INDEX AGRICULTURE 195 196 195
Agritechnics Farmer’s Union of Georgia Caucasus AgroDevelopment
ENERGY 101 101 102 107 106 106 102
BP EnergoPro Energy Invest Wissol SOCAR Rompetrol Georgian Oil & Gas Corporation
FINANCE 86 86 87 88 89 90 91 92 90 89
Aldagi Bci Bank of Georgia Bank Republic - Socite Generale HSBC IFC Kor Standard Bank Pro Credit Bank TBC Bank Irao Imedi L
INFORMATION, COMMUNICATION, TECHNOLOGY 145 145 146 146 147 46
Caucasus Online Geocell MagtiCom MobiTel (Beeline) UGT Georgia Today
INDUSTRY & TRADE 116 116 118 117 118 119 119 120 120 121 124 124 125 125 126
198
Batoil Eniseli Wines Geogian Glass and Mineral Water Georgian Industrial Group GeoSteel GWS Healthy Water (Nabeglavi) Kazbegi Kindzmaruli Marani Knauf Kutiai FIZ (GIH) Madneuli Natakhtari Nikora Rakia Georgia FIZ www.ebizguides.com
COMPANY INDEX 127 128 128
Tbilisi Aircraft Manufactures Tegeta Motors Teliany Valley
LEGAL & INVESTMENT FRAMEWORK 66 66 67 65 67 68 68 69 70
AMCHAM BLC Booz Allen Hamilton Chamber of Commerce and Industry Adjara DLA Piper Ernst & Young Georgian Chamber of Commerce & Industry GNIA Gvanadze and Partners
PUBLIC SERVICES 181 181 183 184 182 184 186 185
Aversi Group Caucasus University International Black Sea University MediClub Georgia National Family Medicine Training Center PSP Group Tbilisi State Medical University Tbilisi State University
REAL ESTATE DEVELOPMENT & CONSTRUCTION 136 135 135 136 138 137
Abu Dhabi Group Axis Center Point Development Solutions Rakeen GRDC
TOURISM 159 157 155 156 157 156
Betsy’s Hotel Citadines Department of Tourism and Resorts Department of Tourism and Resorts -Adjara Mgroup Vere Palace Hotel
TRANSPORT 166 167 170 167 171 172 174
www.ebizguides.com
Catoni & Co DHL Georgain Airways (Air Zena) Georgian Railways KazTransOil (Batumi Sea Port) Poti Sea Port TAV
199
200
ENTERTAINMENT
201
Entertainment OVERVIEW Despite the past political and economic turmoil in Georgia, the country possesses strong potential as a tourist destination owing to its high level of diversity. The country has impressive natural resources, a rich history, a strong sense of tradition and a distinct culture of hospitality. Furthermore, it offers many opportunities for active holidays, such as skiing, hiking and cycling holidays. Georgia truly is a country worth visiting and exploring. Conceivably the best part of Georgia lies within the people themselves: warm, proud, kind, cultured and truly delightful to be around. Guests are considered to be extremely important and Georgians love to make sure you leave with a fruitful imagine of them and of Georgia.
CLIMATE AND WHEN TO GO May, June and September are the months that seem to host the best time to go to Georgia, when it is warm and sunny but not overly hot and sweltering. July and August are the months
that are considered to be too hot and humid with temperatures regularly reaching 40 C. During the winter period, the Caucasus Mountains protect the country from extreme winter conditions leaving Georgia with a pleasant atmosphere.
CULTURE Georgian people are famous for their hospitality. They respect guests and are famous for being friendly and generous while entertaining them, especially in their own home. They are renowned for throwing parties in honour of certain respectable people, or for special events like weddings, birthdays, housewarmings, Christmas, Easter, etc. If you have the opportunity and are invited to one of those parties try not to miss it, it is a unique experience to witness a real performance put on by the “tamada”, toastmaster. The “tamada” acts as a host of the party announcing traditional toasts to peace, health, happiness, well-being, etc and can be quite exceptional and emotional.
Tamada- the toastmaster at a Georgian Supra or feast
202
www.ebizguides.com
Entertainment
www.ebizguides.com
203
Entertainment
Traditional Georgian Feast
FOOD Georgian national cuisine is notable for an abundance of all possible kinds of meat, fish and vegetable hors d’oeuvres, various sorts of cheese, pickles and pungent seasonings, the only ones of their kind. It is very prominent that the Georgian cuisine is very specific to the country but it does however take some influences from Middle Eastern and European culinary traditions. The cuisine offers a variety of dishes, high in various herbs and spices. Each historical province of Georgia has its own distinct culinary tradition, such as Megrelian, Kakhetian, or Imeretian cuisines. The food, in addition to various meat dishes, also offers a variety of vegetarian meals. The cuisine is very varied with different dishes cooked daily.
NATIONAL SPECIALITIES • Walnuts feature in sauces and soups. They are also used in desserts, coated in caramelised sugar, gozinaki, or in churchkhela, when they are threaded on string then dipped in thickened, sweetened grape juice which is subsequently dried into chewy, flavoursome ‘candles’. • Lobio (bean and walnut salad). • Marinated aubergines, pkhali, made from young spinach leaves pounded together with spices. • Khachapuri, consisting of layers of flat bread alternated with melting cheese.
Khinghali- a traditional style dumpling from Kazbegi region
204
Probably one of the most important dishes in a Georgian’s diet is the Khachapuri, considered as a cheese pie. The second most common dish in Georgia is Khinkali (meat dumplings). Traditionally, these are served with no other accompaniment and should be quite ample.
Adjaran Khachapuri
www.ebizguides.com
Entertainment
• Basturma (cured meat and assorted fresh and pickled vegetables).
NATIONAL DRINKS Wine has been adored by the Georgians as a symbol of strength and beauty, keeping their spiritual balance and always filling them with stamina. Georgia is rich in wines and it has been the pride of Georgian people cultivating it for centuries and loving it as they would their own children. Among other things, Georgian’s love to drink and wine certainly is their passion, particular in the Kakheti region where you would be able to taste the unique homemade white wine made by fermenting the grape on the grape skin. Vodka is another common beverage among Georgians, but trying their national spirit chacha, truly is a mind wondering experience. If you are a beer drinking, Georgia has two national beers that are kasbegi and Natakhtari. For those that are non-alcoholic drinkers, they have Borjomi, a salty mineral water that was the beverage of choice for every Soviet leader from Lenin on. Below are a few of the wines that are thought as being their national drink: • Kindzmareuli, a fruity, red wine, is reputed to have been Stalin’s favourite tipple. • Akhasheni and Teliani are two of the commoner red wines, fruity and dry respectively. Tsinandali is a dry white wine, as is Gurdzhaani.
Wine drinking is deeply embedded in the Georgian culture
CUSTOMS AND TRADITIONS MUSIC The roots of Georgian music can be sought in the third millennium BC. This is confirmed by archaeological findings, such as three-hole pipe made of swan shin bone (XV-XIV cc. BC). In the ancient period 7 hole-pipes, lyres, bag-pipes, banduras, drums etc. were already in use. Special notion must be given to Georgian folk songs. Manuscripts of VIII-IX cc. BC give information that labour, marching songs, chorales were existent in Georgia. The archaic tunes and pagan texts of the songs that survived until present make us think that by that it’s true. Traditional Georgian music was not originally intended for presentation in a concert hall. These centuries-old, orally handed-down songs evolved out of life’s important moments within society. Although concert presentation of Georgian songs now has a tradition going back one hundred years, the archaic connection can still be clearly felt, as indeed, many of these songs continue to have their place in daily life today. The ritual and sacred songs of Georgian music are an example of another special form of Western Christian music: the polyphonic choral heritage of Republic of Georgia. It is suggested that sacred music appeals to the inner self; it is a way of connecting oneself with a deeper source of existence. The repetitive chants and rhythms in sacred music create a positive attraction, taking the listener away from small worries and attachments and furthermore create a breathing pattern that unifies the body and the soul. Georgia has a great and highly distinct tradition of polyphonic choral singing. The folk and church songs are an inseparable part of the Georgian treasury and Georgia is extremely proud of it.
Tbilisi Concert Hall
1 Meliqishvili str., Tbilisi 0179 Tel: (+995 32) 990 599 Fax: (+995 32) 987 681 david@tchall.net www.tbilisiconcerthall.com The main concert hall of Georgia. Built in 1970 and renovated in October 2009. Capacity 2250 seats.
www.ebizguides.com
205
Entertainment
Tbilisi Event Hall is the only universal Event Venue in Tbilisi. It’s located in the newly renovated Tbilisi State Concert Hall in the centre of the capital city of Georgia – Tbilisi. The Event Hall, with an area of nearly 1,000 square meters is the only universal Venue in the City which can be used for different styles of Events. Tbilisi Event Hall is an excellent venue for any kind of events, from concerts and club style Events for approximately 1,000-1,500 people, to corporate events, presentations, fashion shows, conferences, seminars and trainings. Tbilisi Event Hall is the only venue in Georgia equipped with modern facilities including; 1,000 m² stage, audio and lightning systems, LED Screens, projector monitors in one arc… Tbilisi Event Hall is managed by a young and very experienced management team which is proud to have already arranged more than 300 Events. The Company also plans and arranges different types of Events, not only in Event Hall but also in different venues, as well as outdoor: Outdoor Concerts, Grand Openings, Expos & Festivals, BTL Activities, Weddings and other types of Events, which all make up the in Company’s Portfolio.
Tbilisi Opera and Ballet Theatre
25 Rustaveli Ave., Tbilisi Tel: (+995 32) 20 60 40 www.opera.ge It is the oldest opera house in Georgia. The Tbilisi Opera has hosted opera stars such as Montserrat Caballé and José Carreras and has held many ballet performances.
DANCE Tbilisi has a fairly vibrant nightlife, from live music, nightclubs to theatre and dance. Most Georgians seem to think music is best listened to while eating, so while in a restaurant there is most certainly going to be music to your ears; a group of singers, a pianist or even that individual saxophonist. There are only a few nightclubs in Tbilisi and most of them are shut between the months of July and August, when most people seem to leave to go to Batumi.
CLUBS Nightoffice
Under Baratashvili Bridge , Tbilisi Tel: (+995 32) 92 30 16 Popular nightclub hosting regular Georgian and foreign DJ’s.
Club Zen
11, Rkinis Rigi St, Tbilisi Tel: (+995 32) 43 93 49 In a chic part of town. It has 2 lounges and hosts both local and foreign DJ’s.
Cubic
45, Kostava St., Tbilisi Tel: (+995 32) 99 93 10 Nights vary from lounge bar to all night clubbing.
This tradition is likely to be older than that of Western Europe, and it is characterised by special voice techniques and the use of tones that are very close to each other. By oral tradition the songs and the music pass on from generation to generation.
Traditional Georgian Choir
206
www.ebizguides.com
Entertainment
Two Side Party Club 7 Bambis Rigi Tbilisi, Georgia Reservation (+995 32) 30 30 30 twoside@mgroup.ge www.mgroup.ge A party club for those who enjoy popular live music performed by a live band. It is also a restaurant/ lounge featuring European and Georgian dishes. The interior maintains an eclectic design with bourgeois elements. They offer a variety of cocktails and perform a Barmen show nightly.
Two Side Party Club
Bamba Rooms
12 Bambis Rigi, Tbilisi Tel: (+995 32) 43 99 77 Electronic nights, R&B parties and special events.
Club 24
9, Jorbenadze Sr., Tbilisi Tel: (+995 32) 774 676
THEATRE AND DANCE
Gom-Art-Eli
22, Metekhi St., Tbilisi Tel: (+995 32) 74 71 95
Triumph
112, Tsereteli Ave., Tbilisi Tel: (+995 32) 35 08 41 If you are lucky to arrive when Georgia’s top folk song and dance groups, Erisioni and the Sukhishvili Georgian National Ballet, are in town, then don’t miss the opportunity to see them perform. However, they do spend most of their time overseas. Folk dance ranges from lyrical love stories to dramatic, leaping demonstrations of male agility, with beautiful costumes and to the accompaniment of string and wind instruments and drums.
The notorious RUSTAVELI THEATRE
National Museum
www.ebizguides.com
207
Entertainment
Tbilisi Jazz Festival
Tel: (+995 32) 990 599 Fax: (+995 32) 987 681 eastern@caucasus.net www.easternpromotion.com Founded in Tbilisi, Georgia in 1978. This was the first Jazz Festival ever to be performed in the history of the former Soviet Union. The event is produced by Eastern Promotions Ltd. Held annually since 2000.
Black Sea Jazz Festival Opera House
Theatre continues to thrive in Georgia and Tbilisi has far more active theatres than most other cities of its size. Once again most theatres seem to close during the months of July and August.
Tel: (+995 32) 990 599 Fax: (+995 32) 987 681 eastern@caucasus.net www.batumijazz.ge, www.easternpromotion.com Founded in 2007. Held annually in Batumi, Georgia. Batumi is the main tourism resort in the country, located on the Black Sea coast on the border with Turkey. The event is produced by Eastern Promotions Ltd.
OTHER FESTIVALS Artgene Festival
Vake Park Summer Theatre 76 Chavchavadze Str Tel: (+995 32) 91 70 78 www.artgeni.ge A Georgian folklore festival that takes place in Tbilisi is june or July with several days of music, dance, poetry, cooking and crafts.
Tbilisi International Film Festival
164, David Agmashenebeli av. 0112 Tbilisi Tel.: (+995 32) 35 67 60 office@tbilisifilmfestival.ge www.tbilisifilmfestival.ge Featuring both Georgian and International films. Traditional folkdance
Other ‘not to miss’ events are the highly popular Jazz festivals that generally take place in Tbilisi and Batumi annually.
208
Tumanishvili Georgian International Festival of Art (GIFT)
Tumanishvili Theatre 8 Marjanishvili Str., Tbilisi Tel: (+995 32) 95-59-66 International drama performances, usually in October.
www.ebizguides.com
Entertainment THEATRES Basement Theatre
42 Rustaveli Ave., Tbilisi Tel: (+995 32) 99 95 00 www.sardapi.ge
Liberty Theatre
25 Rustaveli Ave. Tbilisi Tel: (+995 32) 93 31 15
Marjanishvili State Academic Drama Theatre
8 Marjanishvili str., Tbilisi The Marjanishvili is the second state theatre in Tbilisi, Georgia. Originally founded in Kutaisi in 1928 by Kote Marjanishvili, the theatre moved to Tbilisi in 1930 to Brothers Zubalashvili Public House. The theatre building was thoroughly renovated and reopened in 2006 with the premiere of Bertolt Brecht’s The Threepenny Opera.
Rustaveli Theatre
17 Rustaveli Ave. Tbilisi 0108 Tel: (+995 32) 72 68 68 Fax: (+995 32) 983075 mail@rustavelitheatre.ge www.rustavelitheatre.ge Shota Rustaveli Theatre, the main drama theatre in Tbilisi, was founded in 1879 as “Artists’ Society”. From 1921 the theatre carries its current name.
Tbilisi State Marionette Theatre
26 Shavteli St., Tbilisi Tel: (+995 32) 98 65 89
SPORTS AND LEISURE ACTIVITIES Due to the beautiful mountain setting, Georgia is perfectly suited to those seeking all types of adventure. The high peaks (nine of which are over 5,000 metres) attract mountaineers from all around the world. Summits like Mt Shkhara (4,710 meters), the Caucasian ‘Matterhorn’ – Mt Tetnuldi (4,974 meters), Mt Kazbek (5,033 meters) and Mt Shkhara (5,068 meters) offer all challenges sort by the world’s top climbers.
WINTER SPORTS For those that love the winter energy, Georgia is home to three-ski resort with a fourth on the horizon. Price’s at these resorts are very reasonable and each resort has a variety of different slopes catering for people at all levels of ability. The best-equipped resort is Gudauri, located in the Kazbegi region of Georgia, 120 km from Tbilisi, at the height of 2,196 m (about 7,200 feet) near the Cross Pass in the high Caucasus. It is rapidly developing into a top class winter sports resort where the skiing season lasts from December to April and Heli Skiing is available throughout the season! A unique challenge for all! Bakuriani is situated on the northern slope of the Trialeti Range in the Borjomi Valley of Georgia, at the altitude of 1,700 m (5,576 ft). Kokhtagora (2,155 m), from which one could see peaks of the Caucasus Range, is the jewel of Bakuriani. The region around Bakuriani is surrounded by wood-covered mountains, mineral water springs, and unique tourist routes with spectacular natural or cultural monuments of the Borjomi Valley. The resort is best loved for its ‘family skiing’ offer and the ski season lasts until mid-April. Mt.Kazbegi
www.ebizguides.com
209
Entertainment MAIN CITIES AND TOWNS TBILISI WHERE TO STAY
Georgia’s most famous ski resort, Gudauri
MOUNTAINEERING The Caucasus is host to some very exciting challenges, complete with mountainous freedom. The peaks of Shkhara, Jangha and Kazbek tower about 5,000m in the Georgian Caucasus. The highest peak of the range, Mt Elbrus (5,642m) lies entirely within Russia. Of course some of these routes are more technical than others.
LAKES Tbilisi Sea is an artificial water reservoir situated in Temka, a district of Tbilisi that according to studies suggests it to be the most ecologically pure body of water in the city. During hot summer days you are able to rent a boat of water-bike. It is also worth noting when visiting Tbilisi Sea, to visit the Tsereteli Stones; tall rock columns festooned with Georgian Kings and religious figures.
Like many cities, Tbilisi has a wide variety of accommodation available, from the most prestigious brand names to smaller and more intimate boutique hotels. The beautiful thing about staying in Tbilisi is that the majority of the hotels are located around the city centre, making it very easy for the tourist to see all the wonderful attractions the city has to offer; museums, theatres and the exhibition hall. All of the major hotels in Tbilisi offer 24-hour service; all payments are possible in local currency or by credit card.
THE BIG THREE There are currently three international hotels in Tbilisi, all with their unique qualities in architecture and interior: the Courtyard Marriott, the Tbilisi Marriott, the Sheraton Metekhii Palace and the Radisson SAS Iveria Hotel.
Marriott Courtyard Tbilisi
4 Freedom Square, Tbilisi, 0105 Tel: (+995 32) 779 100 Fax: (+995 32) 779 110 www.marriott.com
Tbilisi Marriott
Rustaveli Avenue 13, Tbilisi, 0108 Tel: (+995 32) 779 200 Fax: (+995 32) 779 210 www.marriott.com
Tbilisi Sea
Sheraton Metechi Palace Hotel
Turtle Lake
Radisson SAS Hotel Iveria
Tbilisi Sea in an artificial reservoir located in the Temka, according to a study, it turned out to be the most ecologically pure body of water in the city.
Turtle Lake is another artificial lake situated above Vake Park and is the most popular lake in Tbilisi.
Lisi Lake
20 Telavi Street, Tbilisi, 0103 Tel: (+995 32) 772 020 www.sheraton.com/tbilisi
1 Rose Revolution Square, 0108, Tbilisi Phone: (+995 32) 402 200 www.radissonblu.com/hotel-tbilisi
Lisi Lake will soon be home to a modern shore and host a variety of sport and athletic facilities; it will also have an entertainment centers and restaurants.
210
www.ebizguides.com
Entertainment
HIGH CLASS If you find one of the ‘Big Three’ too luxurious, you may find it nicer to stay in one of the ‘High Class’ hotels, costing around 120 – 200 USD per night. These range from the Ambassador, Old Tbilisi to The Kopala, Tori and Betsy Hotel where visitors will be warmly welcomed and have a very pleasant stay.
Betsy’ Hotel
Makashvili street 32/34, Tbilisi Tel: (+995-32) 931404, 923996, 982615, (+995 58) 540050 Fax: (+995-32) 999311 roland@internet.ge www.betsyshotel.com
Hotel Vere Palace
Kuchishvili street 24/8, Tbilisi Tel: (+995 32) 253340, 253341, 253342 Fax: (+995 32) 221298 hotelvp@verepalace.com.ge www.verepalace.com.ge
Kopala
Chekhov street 8/10, Tbilisi Tel: (+995 32) 775520 Fax: (+995 32) 775580, 775590 hotel@kopala.ge www.kopala.ge
VARAZI Hotel
45 Kostava St., Tbilisi Tel: (+995 32) 93 11 61/92 37 04/22 www.hotelvarazi.ge
BUDGET HOTELS For those guests that are on a budget and looking to spend just a few nights in the city, Tbilisi also hosts many budget hotels, where you will be able to find places to stay for less than 80 USD per night.
WHERE TO EAT Restaurants in Tbilisi are in abundance, from traditional-style feasts of Georgian cuisine to the more traditional servings. Like most Mediterranean cultures, Georgia also has an exceptional café culture so one will never be far away from their regular Latte, Cappuccino or that early morning Espresso. Old Town will introduce you to Erekle II, Sharden and Bambis rigi, all of which are fashionable cafés, bars, restaurants and galleries. If one of these does not catch your eye then you are only a short walk away from the Metekhi area, located just across the river. The chic and fashionable area in old town Tbilisi
Hotel Ambasadori
Shavteli street 13, Tbilisi Tel: (+995 32) 920403, 998199, +(995 99) 760606 Fax: (+995 32) 931740 info@ambasadori.ge www.ambasadori.ge
Hotel Vedzisi
Saburtalo, Zovreti street 32, Tbilisi Tel: (+995 32) 388647/46/56/26 Fax: (+995 32) 388636 info.hotelvedzisi@yahoo.com www.hotelvedzisi.com
Hotel Riverside
Right Side of Mtkvari River, Brose Str turn, Tbilisi Tel: (+995 32) 242 244/ 55/ 88 Fax: (+995 32) 242 277 info@riverside.ge www.riverside.ge
www.ebizguides.com
211
Entertainment
Bread House Cuisine: Georgian 7 Gorgasali St., Tbilisi Tel: (+995 32) 30 30 30 breadhouse@mgroup.ge www.mgroup.ge Traditional Georgian restaurant with Georgian bakery. Features an open veranda, oriental balcony, and live Georgian music.
In The Shadow of Metekhi Cuisine: Georgian 29a K.Tsamebuli Ave. Tbilisi Reservation (+995 32) 30 30 30 metekhi@mgroup.ge www.mgroup.ge Georgian traditional restaurant with specialty dishes, a beautiful view of Tbilisi, Georgian live music and traditional Georgian dance.
Bread House
Maspindzelo! Cuisine: Georgian 7 Gorgasali St., Tbilisi 7 Bambis Rigi, Tbilisi Samadlo, Betania “Kvareli lake�, Kakheti Reservation: (+995 32) 30 30 30 maspindzelo@mgroup.ge www.mgroup.ge Chain of Georgian restaurants featuring traditional Georgian family dishes, Khinkali, Mtsvadi, Kebab. Interior design is modern with the flare of the Imereti region.
In The Shadow of Metekhi Maspindzelo!
212
www.ebizguides.com
Entertainment
Acid Bar
Cuisine: European 37 Abashidze St., Tbilisi Tel: (+995 32) 91 68 10 00 1 Revaz Laghidze St. (+995 32) 99 12 12 38 16 Chavchavadze Ave. (+995 32) 99 41 19 80
Belle De Jour
Cuisine: French 29 Abashidze St., Tbilisi Tel: (+995 32) 23 09 23
Restaurant Maidan
Cuisine: Georgian 6 Rkinis Rigi, Tbilisi Tel: (+995 32) +995 32 75 11 88; Live Music: 20:00 – 00:00
Pur Pur
Cuisine: European 1 A. Tbileli st., Tbilisi Tel: (+995 32) 47 77 76 Excellent food with live jazz most nights. Downstairs there is a bar area with live music at weekends.
Sharden 12
Cuisine: European 12 Sharden St., Tbilisi Tel: (+995 32) 92 32 38 Nice relaxing environment for a bite to eat or a post meal bottle of wine. Live jazz most nights.
Vera Steak House
Cuisine: Georgian, American 37a Kostava St., Tbilisi Tel: (+995 32) 98 37 67 www.verasteakhouse.ge
This amazing steak house is a little hard to find, but well worth it! The food is delicious and the environment is warm and inviting. They have live bands every night and a large projector set up for sports events. In summer months the have an outdoor area with seating and a bar that overlooks Vera Park.
Vong
Cuisine: Asian 29 I. Abashidze St., Tbilisi Tel: (+995 32) 29 25 70
CAFES Coffee.ge
27 Abashidze St., Tbilisi Tel: (+995 32) 22 50 66 www.coffee.ge
Canape
14 I. Abashidze St., Tbilisi Tel: (+995 32) 23 14 53 7 Kazbegi Ave., Tbilisi Tel: (+995 32) 37 35 73
Cafe Kala
8/10 Erekle St., Tbilisi Tel: (+995 99) 79 97 37 Very comfortable café that has live music most nights. The menu has both traditional Georgian food and European dishes.
New Art Cafe
31 Orbeliani St., Tbilisi Tel: (+995 32) 98 75 44 Café with European and Georgia snacks. Occasionally they hold art expositions and events.
Tartine
Cafe-Restaurant-Bar 22 Abashidze St, Tbilisi Tel: (+995 32) 14 36 60 French café in Vake district with excellent food. Very relaxing outdoor area in summer months.
www.ebizguides.com
213
Entertainment
Prospero’s Books
34 Rustaveli Ave., Tbilisi Tel: (+995 32) 92 35 92 English book store with a very nice patio café. Ideal for a midday snack.
Entrée
13 Taktakishvili (Riga) St., Tbilisi Tel: (+995 91) 19 39 68 20 Rustaveli Ave. Tel: (+995 91) 19 48 16 Chain of European style cafes. Great for a lunchtime snack or afternoon coffee and cake. Wifi internet access available.
Marco Polo
44 Shota Rustaveli Ave, Tbilisi Tel: (+995 32) 93 53 83
FOR A DRINK OR TWO
People’s Cafe and Restaurant 10, Galaktion St, Tbilisi Tel: (+995 32) 45 08 08
African Bar
12 Bambis Rigi, Tbilisi Tel: (+995 71) 33 78 83
CASINOS AND SLOT MACHINE CLUBS During recent years Tbilisi has become a gamblers haven, with an ever expanding number of casinos and slot clubs appearing throughout the city. One of the biggest casinos is Casino Adjara, located by the Polytechnic Metro Station, staging a number of tables and slot machines. Address: 1, 26 May Square Tel: (+995 32) 33 08 28 Working hours: 24/24
Oxygen Bar
If you are passionate about going to Slot Machine Clubs, you certainly will not be disappointed as they can be found throughout the city, especially on major streets like Rustaveli Avenue and Chavchavadze Avenue.
Hanger Bar
WHAT TO SEE AND DO
18th Floor of the Radisson SAS Iberia 1 Rose Revolution Sq., Tbilisi Tel: (+995 32) 402 200 Enjoy flying above the clouds in the highest bar in Tbilisi.
Shavteli 20, Tbilisi Tel: (+995 32) 93 10 80 Irish Pub and Grill. Ideal for all sporting events
Beatles Club
25 Kostava str, Tbilisi Tel: (+995 32) 92 09 50 Live music venue with shows most nights.
Besty’s Hotel Bar
32-34, Makashvili St., Tbilisi Tel: (+995 32) 93 14 04 Relaxed environment with a fantastic Friday night Happy Hour. Beautiful views of Tbilisi and great for networking.
Bavarian Brauhaus
8 Sioni St, Tbilisi Tel: (+995 32) 92 03 22 Large German Beer hall with on sight brewery. Great from sporting events.
214
A local agent can organise all the ‘must see’ tourist attractions for a reasonable price. There is also widely available tourist information to be found in the different hotels if you choose to go around without the assistants of a guide. However, a local guide would be able to enlighten you on many details that you would more than likely miss if you were to go on your own. Below is a list of some of the must see things to do whilst here in Georgia: • Enjoy the Mediterranean atmosphere of Tbilisi, the capital city, which stands on the banks of the River Mtkvari, in a valley surrounded by hills. The name for the city derives from the word tbili (warm). It is best seen from the top of Mount Mtatsminda that sets alight the exquisite view that is Tbilisi. • The old city in Tbilisi, spreading out from the south bank of the river, has numerous frescoed churches (the most noteworthy being the fifthcentury Sioni Cathedral), 19th-century houses with arcaded open galleries on the upper floors,
www.ebizguides.com
Entertainment
a castle and a surprising number of cafés and enticing tourist shops that sell locally produced arts and crafts. • • • • • • • • • • • • •
• Georgian State Museum on Prospekt Rustaveli in Tbilisi, which houses a collection of icons, frescoes and porcelain, as well as an outstanding display of jewellery discovered in pre-Christian Georgian tombs. The Georgian Museum of Arts, in the centre of town, includes many works by the much-loved 19th-century ‘primitive’ artist, Niko Pirosmani. The open-air Museum of Ethnography has interesting examples of rural buildings and artefacts. • Enjoy beautiful views of the old part of Tbilisi from the Narikala Fortress, first established by the Persians in the fourth century AD and most recently rebuilt in the 17th century.
A Birdseye view from old Tbilisi
• Prospekt Rustaveli - Tbilisi’s main thoroughfare features an assortment of stylish public buildings testifying to the city’s prosperity at the turn of the century.
• Head for Mtskheta, today a UNESCO World Heritage Site, which remained the centre of Georgian Christianity until the 12th century. The 15th-century Svetitskhoveli Cathedral (Pillar of Life), standing at the confluence of the Mtkvari and Aragvi rivers, was the holiest place in old Georgia. According to legend, the church is built on the spot where Christ’s crucifixion robe was dropped to the ground in AD328, having been brought from Jerusalem by a local Jew, and fragments of the robe are said to be kept inside the cathedral. • In Mtskheta you will find the Samtavro Monastery (still functioning although founded in the 11th century, it is famous as the burial site for the first Christian king, Mirian and his wife Nana) and the sixth-century Jvari Cathedral, the design of which became a prototype for Georgian ecclesiastical architecture. • The remote village of Shatili is an outstanding monument of Georgian construction art, located on the main Caucasus ridge; towers are clustered together to create a single fortress.
The main high street, Tbilisi
www.ebizguides.com
215
Entertainment
• Follow the Georgian Military Highway. Leading 220km (137 miles) from Tbilisi to Vladikavkaz (formerly Ordzhonikidze) in North Ossetia (now part of the Russian Federation), this route was built by the Russians in the 19th century to help them control their conquered Georgian territories. The road winds through the dramatic mountain scenery of the high Caucasus, apparently little has changed since the 19th-century novelist Lermontov described the route in A Hero of our Time. Sites of interest along the road include the 14th-century Sameba Church (Holy Trinity), overlooking the mountain town of Kazbegi, and the city of Mtskheta. The ski resort of Gudauri is situated along the highway. • Some 10km (6 miles) east of Gori is Uplistsikhe (Fortress of God), a large complex of natural caves. Inhabited from the sixth century BC to the 14th century AD, the caves were gradually transformed into increasingly sophisticated dwellings, shops and public buildings, including the most ancient theatre in Georgia, dungeons and enormous wine cellars.
• Discover the Ateni Sioni Church, 10km (6 miles) south of Gori, which stands in a beautiful setting and is highly prized for its 11th-century stonecarvings and frescoes. • 10km (6 miles) from Bakuriani, heading towards Bordzhomi, is the 12th-century Daba Monastery, and nearby a 60m (197ft) waterfall. During the summer it is also possible to visit Lake Tabatskuri, sunk into a hollow high in the mountains. Of Georgia’s many spectacular cultural monuments, the following have been declared UNESCO World Heritage sites: in 1994, the old Georgian capital of Mtskheta, including Jvari Monastery, Svetiskhoveli Cathedral and the Samtavro Monastery Complex; the same year, the Gelati Monastery and Bagrati Cathedral in Kutaisi and in 1996, the architecturally unique Svanetian village of Ushguli, an exceptional example of mountain scenery with medieval houses and stone defence towers.
One of the monasteries found in Georgia
216
www.ebizguides.com
Entertainment ART GALLERIES
MUSEUMS
Chardin Art Gallery
Simon Janashia Museum of Georgia
13 Rustaveli Ave, Tbilisi Tel: (+995 32) 99 09 25
Gallery Chagela
37 I. Abashidze St., Tbilisi Tel: (+995 32) 23 16 93
Georgian Art And Culture Center
Georgian National Museum 4, Rustaveli Ave., 0105, Tbilisi Tel: (+995 32) 99 80 22, 93 48 21 www.museum.ge
Shalva Amiranashvili Museum of Fine Arts
7 N. Nikoladze St., Tbilisi Tel: (+995 32) 93 13 35
Georgian National Museum 1, Gudiashvili str., 0105, Tbilisi Tel: (+995 32) 99 99 09, 99 35 66 www.museum.ge
Manana Art
Tbilisi Archaeological Museum
2 Baratashvili St., Tbilisi Tel: (+995 32) 93 25 90 www.mananaart.ge
National Picture Gallery 37 Rustaveli Ave., Tbilisi Tel: (+995 32) 93 16 52
Old Gallery
21 Erekle II St., Tbilisi Tel: (+995 32) 92 31 25
Caucasus House
20 G. Tabidze St., Tbilisi Tel: (+995 32) 99 83 22 www.caucasushouse.ge
Tbilisi Gallery of Modern Art
3 Rustaveli Ave., Tbilisi Tel: (+995 32) 98 21 33 www.art.ge
Tevdore
6 Erekle II St., Tbilisi Tel: (+995 32) 98 98 56
Georgian National Museum Trelis Gora (Digomi district), 0159, Tbilisi Tel: (+995 32) 521 305 Email: mikho@archaeologist.com
Georgian State Museum of Folk and Applied Art 27, Shalva Dadiani str. 0105, Tbilisi Tel: (+995 32) 996 152
Tbilisi Archaeological Museum
Georgian National Museum Trelis Gora (Digomi district), 0159, Tbilisi Tel: (+995 32) 521 305
State Silk Museum
6, Giorgi Tsabadze str., 0112, Tbilisi Tel: (+995 32) 34 78 50
The Soviet Occupation Museum Georgian National Museum 3, Rustaveli Ave., 0105, Tbilisi Tel: (+995 32) 99 80 22, 93 48 21 info@museum.ge davidts03@yahoo.com
Vernisage
27/6 Agmashebeli Ave., Tbilisi Tel: (+995 32) 91 00 24
www.ebizguides.com
217
Entertainment TBILISI HISTORY MUSEUM
CULTURAL SIGHTS
The Tbilisi History Museum was founded in 1910 as the City Municipal Museum. Lately, it was given the name of the famous Georgian poet Ioseb Grishashvili. Since 1984, the Tbilisi History Museum has been housed in the building of “Karvasla”. The museum houses over 50 thousand exhibits. They reflect Tbilisi history from the end of the IV millennium to this date. 3, Rustaveli Avenue, 0105 Tbilisi Tel: (+995 32) 99 80 22 info@museum.ge
NARIKALA FORTRESS
BOOKSHOPS Prospero’s
At Prospero’s Books & Coffeehouse, you will be welcomed by an array of different books, including fiction, non-fiction, history, travel, regional interest, reference, business, art, children’s books and more. Prospero’s also offers special orders, postcards, periodicals, greeting cards, bookmarks and over 2,000 English language DVD’s for rent or sale. Internet service is also available on-site. 34 Rustaveli Ave., Tbilisi Tel: (+995 32) 92 35 92 Store Hours: Monday-Sunday 9:30am - 8:00pm Children’s Hour: Every Sunday 12pm Tel: (+995 32) 92 35 92
Geoland
An ancient fortress overlooking the capital of Tbilisi. The fortress consists of two walled sections on a steep hill between the sulphur baths and the botanical gardens. On the lower court there is the recently restored St Nicholas Church.
STATUE KARTLIS DEDA Also referred to as the Mother of Kartli, is a monumental statue in Tbilisi and one of the main symbols of the city. It was erected on the top of the Sololaki hill in 1958 when Tbilisi celebrated its 1500-year anniversary. The creator of this twenty meter high aluminum figure of a woman in Georgian national dress is the prominent Georgian sculptor Elguja Amashukeli. It really is worth a visit and provides an amazing view of the capital.
CHURCHES Holy Trinity (Sameba) Cathedral Elijah Mountain Tel: (+995 32) 77 51 74
Mamadaviti
St David’s Mountain Mtatsminda Tel: (+995 32) 99 70 39
GeoLand Ltd was founded in 2003 by a team of young enthusiastic professionals, dedicated to bringing GPS/GIS technology to Georgia and the South Caucasus.
Anchiskhati
It quickly began growing into a modern GIS technology company and today the team members include specialists in cartography, geography, geodesy and IT. Some have a background in alpinism and mountain rescue operations.
It is commonly known as the “Tbilisi Sioni” to distinguish it from several other churches across Georgia bearing the name Sioni. One will be able to find this cathedral in the old part of city.
3, Telegraph Cul-de-Sac, 0105, Tbilisi Tel: (+995 32) 92 11 91; 92 25 53 info@geoland.ge
218
7 Loane Shavteli Str Tel: (+995 32) 98 55 82
Sioni Cathedra
Jvaris Mama Church
Ierusalimi 8, Old Town,Tbilisi
Anchiskhati Basilica
is the oldest surviving church in Tbilisi, built by King Gorgasali’s son Dachi in the 6th century. The name comes from the icon of Anchi Cathedral in Klarjeti, brought here in the 17th century and now housed in the Fine Arts Museum.
www.ebizguides.com
Entertainment
SYNAGOGUE
PARKS
The Great Synagogue
“Rose Revolution”: The Amusement Park
The building, also known as the “Georgian Synagogue”, was built from 1895 to 1903 in an eclectic style by Georgian Jews from Akhaltsikhe, who migrated to Tbilisi in the late 19th century, thus the synagogue is also called “synagogue of the people of Akhaltsikhe 45/47 Leselidze Street, Tbilisi Tel: (+995 32) 98 89 34
MOSQUE Built in 1895, it is the only mosque in Tbilisi to have survived Lavrenty Beria’s antireligious purges in the 1930s. Both Shiite and Sunni Muslims pray in the mosque and visitors are welcome. Botanikuri, Old town, Tbilisi
Gldani. Between V and VI Micro district, Tbilisi Tel: (+995 32) 67 07 10
Zoo
64 Kostava str, Tbilisi Tel: (+995 32) 21 30 80 / 21 30 80
Vera Park
Slope of the Mtatsminda, Tbilisi Tel: (+995 32) 22 32 58
Mziuri
76 I. Chavchavadze Ave., Tbilisi Tel: (+995 32) 23 01 49 Botanical Garden 1, Botanical Str. , Tbilisi Tel: (+995 32) 72 24 64
SULPHUR BATHS
SHOPPING
Tbilisi has a long tradition with sulphur baths, which has turned Georgia into one of the most famous resorts of the East for centuries. The baths are known for their healing properties and are definitely one of the best ways to relax.
Georgian ceramics, embroidery and jewellery are all distinctive and may be bought in art salons or special tourist shops. Visitors may also develop a liking for locally produced wines and brandies. Antiques such as rugs and icons attract a heavy export duty and must be licensed for export by the Ministry of Culture. Goods acquired in markets or from private individuals will not come with an export licence, whereas official tourist shops usually take responsibility for certification. The main shopping streets are Rustaveli and Chavchavadze Avenue.
Abanotubani (the district of the baths) is located between the Meidani Square and the Ortachala district of the capital. This is the spot where the sulphur baths stand and a spot where, according to the legend, the discovery of Tbilisi originated.
DRY BRIDGE MARKET Dry Bridge market is one of the most interesting markets in Tbilisi, where you will be able to find anything from art, accordions, samovars and electric gadgets. 9 March Park, NW of Old Town, Tbilisi
OLD CARPETS & KILIMS Old Carpets and Kilims is where you will be able to unravel a variety of rugs from around Georgia. It is also where you will be able to haggle the prices. Rustaveli 32, NW of Old Town
Mosque & Sulphur Baths in the old town
www.ebizguides.com
219
Entertainment
GALLERY ARTGASM In the courtyard next to Prospero’s Books, this gallery offers a range of funky items; from copper sculptures and enamelled jewellery to embroidered bags. All created by Tbilisi designers. Rustaveli 34, NW of Old Town, Tbilisi
GEORGIAN SOUVENIRS Some of the stock here veers towards the kitsch, but the icons, dolls and puppets are eye-catching, and the decorative wine bottles are full. It’s the spot if you’re longing for a Caucasian sword. Rustaveli 18, NW of Old Town, Tbilisi
BATUMI AND POTI BATUMI Batumi is located on Georgia’s sub-tropical coastline at the foot of rich green mountain-sides and visitors arriving from the sea are greeted by the sight of a low-lying city overlooked by the distant white peaks of the high Caucasus. It is suggested that Batumi is the second most popular city in Georgia due to its ambience, setting and appearance and is now considered to be the country’s summer holiday capital, welcoming people from Georgia and beyond. Batumi developed in the 19th Century as the western terminus of a railway from Baku that then carried one-fifth of the world’s oil production.
MEIDAN 91 Touted as the oldest carpet shop in the Caucasus, Meidan 91 is an Aladdin’s cave of carpets, samovars, pewter and antique regional dress from across Georgia. Gorgasalis moedani, Old Town, Tbilisi Tel: (+995 22) 723546 www.meidan91.wanex.net
GREEN SUN SOUVENIRS Green Sun Souvenirs offers a range of interesting knick-knacks, from figurines to embroidered scarves. Erekle II 11, Old Town, Tbilisi greensun.etbilisi.com
DOM VINA A bountiful wine cellar offering up tipples from across Georgia. Leselidze 55, Old Town, Tbilisi
Along the Black Sea Coast
THINGS TO SEE Once in Batumi, you will most likely find yourself walking along Batumis bulvari, a 1.5km promenade along the seafront and main beach. It has cafés, paths, trees and beach bars, all of which make it a real delight. The beach itself is rocky but kept very clean and in the summer time it can be extremely busy. You can however find Gonio and Kvariati just a short drive away, which is less crowded and have clearer waters. The main central square, Evropas moedani is a broad, attractive space lined with musical fountains
220
www.ebizguides.com
Entertainment
that attracts all different age groups. Over the square stands a tall and elegant monument that was unveiled in 2007, to Medea, the person who brought Georgia closer to Europe.
WHERE TO STAY Hotel Alik
12 M. Abashidze Ave., Batumi Tel: (+995 22) 275802 Fax: (+995 22) 275803 www.hotelalik.com info@hotelalik.com, alik@hotelalik.com
Intourist Palace Hotel
11 Ninoshvili St., Batumi Tel: (+99522) 2 75525 , +995222 32123 Fax: (+99522) 2 33950 www.intouristpalace.com info@intouristpalace.com reservation@intouristpalace.com
Hotel Marina
10 Khimshiashvili St., Batumi Tel: (+995 22) 2 1 13 00, +995 222 70733, +995 99 13 65 65 Fax: (+995 22) 2 76400 www.marigroup.ge hotelmarina@marigroup.ge
Hotel Mercury
10/12 Chavchavadze St., Batumi Tel: (+995 22) 277501, +995 22277502 hotelmercury@batumi.net
POTI Poti, where Georgia’s main seaport lies, is one of the oldest cities in Georgia. It represents two and half thousand years of history. It is also where the legendary myth of the Golden Fleece first appeared, when the ‘Argo’ sailed up the Phasis River to reach the land of Colchis where they found the Golden Fleece.
THE GOLDEN FLEECE The Golden Fleece represents the tale of Jason and his fellow Argonauts, who set out on a voyage to capture the Golden Fleece, which in turn would crown Jason his rightful passage onto the throne of locus in Thessaly. The tale sets forth the arduous journey of triumph and despair and of courage and strength. Jason had to endure an intense challenge which led him to encounter a series of fierce battles including encountering two fire-breathing bulls followed by heavily armed men. All this in order to take the fleece from the dragon. If successful, he promised to take the hand of Medea, the daughter of Aeetes, who first set fourth this test of bravery. Poti port is a crucial trading centre between Asia and Europe and as a result it has always stood as a prize possession for the empire-builders of Roma, Byzantine, the Ottoman Turks and Russia. It is also the head quarters for the Georgian Naval base.
Hotel Prestige
62, 26 of May St., Batumi Tel: (+995 22) 2 79953/ 90513 513/ 74 513 513 hotel_prestige@mail.ru www.hotel-prestige.ge
Rcheuli Vila
31 Zhordania St., Batumi Tel: (+995 22) 2 70707; +995 222 33120
Sheraton Batumi Hotel 28 Rustaveli St., Batumi Tel: (+995 22) 22 90 00
Poti Port has a strategic location on the old Silk Road
In April 2008, Georgia sold a 51% stake of the Poti port to the Investment Authority of the UAE’s Ras Al Khaimah (RAK) to develop a free industrial zone
www.ebizguides.com
221
Entertainment
(FIZ) in a 49-year management concession, and to manage a new port terminal. The creation of a new FIZ was officially inaugurated by the President of Georgia Mikheil Saakashvili on April 15, 2008.
Hotel Cross Pass
WHERE TO STAY
Tel: (+ 995 99) 54 32 88 / (+ 995 99) 11 43 77 www.kvesheti.ge
Hotel Anchor
Tel: (+995 32) 155010; (+995 95) 202015; (+995 99) 588200 info@welcome.ge
Hotel Kvesheti
Gegidze 90, Poti (+995 29) 326 000
Hotel SHAMA
SKI RESORTS
Hotel White Shino
GUDAURI Due to its location on the southern slopes of The Greater Caucasus Mountain Range, Gudauri is famous for its ski resort. The resort is situated in the Stepantsminda District, along the Georgian Military Highway near the Cross Pass, at an elevation of 2,196 meters (7,200ft.) above sea level. Gudauri lies 120 km (75 miles) to the north of the capital Tbilisi. This makes Gudauri the perfect destination for weekend skiing
Tel: (+995 32) 155010 / (+995 95) 202015 / (+995 99) 588200 info@welcome.ge
Tel: (+995 32) 155010 / (+995 95) 202015 / (+995 99) 588200 info@welcome.ge
BAKURIANI Bakuriani is another ski resort located in the Borjomi district of Georgia. The region around Bakuriani is covered by coniferous forests. The resort lays 30km from Borjomi and is located within the Bakuriani Depression/caldera. The resort is connected with Borjomi by an electrified narrow gauge railway.
Sport Hotel Gudauri Club
The climate of Bakuriani is transitional, from humid maritime to relatively humid continental. The winters are cold and experience significant snowfall while the summers are long and warm.
Hotel Truso
Hotel “Villa Fagus�
Hotel Gudauri Hut
Bakuriani Hotel New House
Resort Gudauri, Kazbegi, district Tel: (995 332)20 29 00 Fax: (995 332) 20-29-01 hotel@gudauri.ge
Tel: (+995 99) 507606 Gudauri, Georgia hoteltruso@gmail.com
Tel: (+995 99) 398 123 Kazbegi Region - Georgia 4702 gudaurihut@gmail.com
Hotel Shele
Tel: (+995 99) 56 12 08 ki008@myoffice.ge
Hotel Ski-House Panorama
Tel: (+995 99) 33 00 03 + 995 90 33 00 03 info@skihouse-panorama.com
222
3 Tamar Mepe bend, Bakuriani Tel: (+995 95) 24 43 00; (+995 93) 71 58 55 www.welcome.ge/fagus
21, Tavisupleba str., Bakuriani Cell: (+995 99) 20 17 20 / (+ 995 91) 62 26 41 newhousebakuriani@gmail.com www.welcome.ge/newhouse
Bakuriani - Family Hotel San Maria 88 Agmashenebeli, Bakuriani, Sakartvelo. Tel: (+995 99) 50 66 75
Bakuriani - Hotel Tbilisi
Tel: (+995 55) 393 393 / (+995 77) 95 52 00 b. tbilisihotel@gmail.com
www.ebizguides.com
Entertainment DAY TRIPS MTSKHETA Is one of the oldest cities in Georgia, located about 20 kilometres north of Tbilisi at the confluence of the Aragvi and Kura rivers. The city (population 19,423 as of January 1, 2008) is now the administrative centre of the Mtskheta-Mtianeti region. Due to its historical significance and numerous ancient monuments, the “Historical Monuments of Mtskheta”, it became a UNESCO World Heritage Site in 1994.
KAKHETI Kakheti is a historical province in Eastern Georgia. It is bordered by the small mountainous province of Tusheti and the Greater Caucasus mountain range to the north, Azerbaijan to the east and the south, and the Georgian province of Kartli to the west. Kakheti is geographically divided into the Inner Kakheti to the east of Tsiv-Gombori mountainrange and the Outer Kakheti to the west of it. The major river of the eastern part is Alazani, while that of the western part is the Iori. Travel facilities are continuously improving in Kakheti and one now has the option of staying in a guesthouse, small hotel or a marvellous grand hotel.
KAKHETI WINE
and of course indulge in tasting some of Georgia’s famous wine. Located just two hours from Tbilisi, Signhagi is a beautiful place to spend a weekend with all the facilities needed to enjoy your time in the town, for example, banking services, hotels, a tourist centre and restaurants.
THINGS TO SEE Sighnaghi History-Ethnography Museum
This museum also holds paintings by Niko Pirosmani, Georgia’s most prominent artist. 8, Rustaveli Lane. Tel: (+995 255) 3 24 48
Saint George’s Church
This is an 18th century church, which stands on a small terrace partly surrounded by an old fence. 7, Vakhtang Gorgasali St
Saint George’s Church of Vakiri
Built in the 18th century, this church stands in the suburb of Sighnaghi, near the cemetery and the park.
Marriage House
Built in the second half of the 19th century
Baratashvili street
This used to be the district of merchants and handicraftsmen along the caravan route.
Meanwhile in Kakheti, it is fundamental that you take a trip to the vineyards, which are considered to be some of the oldest in the world. It is believed that the fertile valleys of the South Caucasus, which Georgia straddles, are believed by many archaeologists to be the source of the world’s first cultivated grapevines and neolithic wine production, over 7000 years ago.
SIGHNAGI Sighnagi was presented to the public in 2007 as a tourist attraction and it was soon branded with the name ‘Town of Love’. Whilst walking around the town, one will soon become familiar with the beautiful architecture and craftsmanship. Here you will also be able to find beautiful paintings, carpets
www.ebizguides.com
223
Entertainment TRAVEL AGENTS & TOUR OPERATORS Tourist Information Centre
18/II Melikishvili Str, Tbilisi 0179 info@tourism-association.ge Tel: (+995 32) 22 01 95, 91 67 93
Altair Ltd
Tourism, airtickets, hotel reservation 23, Rustaveli ave., Tbilisi Tel: (+995 32) 98 46 10 Fax: (+995 32) 92 13 17 altair@access.sanet.ge www.altair.ge
ASA
Incoming & Outgoing Tour Operator 50, Chavchavadze ave., Tbilisi 0179 Tel: (+995 32) 22 43 54 Fax: (+995 32) 22 07 91 asa@asa.ge| tickets@asa.ge | incoming@asa.ge www.asa.ge
Bodabekia
Inbound Travel 16, Purtseladze str., Tbilisi Tel: (+995 32) 99 87 52 Mobile: (+995 93) 15 84 62 culinarytouringeorgia@hotmail.com www.voyagegeorgie.com
Bulgarian VIP Tours Georgia “BVT” Travel Agency - Travel in Bulgaria 12, Melikishvili str., Tbilisi Tel: (+995 32) 22 12 25; 22 12 24 Fax: (+995 32) 22 12 85 ia@bvt.ge | irina@bvt.ge
Calypso Travel LLC
Universal Travel Agency 9, Sobchak str., Tbilisi 0105 Tel: (+995 32) 92 34 79; 92 03 73 Fax: (+995 32) 92 03 73 info@calypso.ge www.calypso.ge
Caucasus Birding Ltd.
Birdwatching and Eco-tourism operator 3, Nutsubidze Plateau, 1-7/10, Tbilisi Tel: (+995 32) 32 64 96 Fax: (+995 32) 53 74 78 lela@gccw.org| office@gccw.org www.birding-georgia.com
224
Caucasus Travel Ltd.
Incoming Tour Operator 44, Leselidze str., Tbilisi Tel: (+995 32) 98 74 00 Fax: (+995 32) 98 73 99 georgia@caucasustravel.com www.caucasustravel.com
Central Travel LLC
Travel Agency 45, Kostava str., Hotel “Varazi”, Tbilisi 0179 Tel: (+995 32) 92 72 (11) (multichannel, toll free) Fax: (+995 32) 92 72 (11) (multichannel, toll free) info@centraltravel.ge www.centraltravel.ge Working days: Monday-Friday (for Inbound Travel Services) / Every day (for Airline tickets and Hotel reservations)
Century Travel Ltd.
Incoming & Outgoing tourism company 50, Chavchavadze ave., Tbilisi 0179 Tel: (+995 32) 22 58 11 Fax: (+995 32) 22 58 11 info@centurytravel.ge www.centurytravel.ge
CGTT Voyages
Travel Agency Hotel Sakartvelo, 12, Melikishvili str., Tbilisi Tel: (+995 32) 22 14 25 Fax: (+995 32) 22 14 26 cgtt@voyages.com.ge www.cgtt-tbilissi.ge
Concord Travel
Travel Company 82, Barnov str., Tbilisi Tel: (+995 32) 22 09 60 Fax: (+995 32) 51 73 69 contact@concordtravel.ge www.concordtravel.ge
DS travel
Transportation & travel company 1, Gulia str., Tbilisi Tel: (+995 32) 75 30 56 Fax: (+995 32) 75 36 09 dstravel@posta.ge www.dstravel.ge
www.ebizguides.com
Entertainment
EXOtour
Travel agency - Holidays in Georgian Resorts sea & mountains 22, Chavchavadze ave., Tbilisi 380079 Tel: (+995 32) 91 31 91 Fax: (+995 32) 29 26 20 exotour@gol.ge www.exotour.ge
Explore Georgia Ltd.
Global Service Tour
Tourism, Airtickets, Railway tickets 25, Vazha-Pshavela ave., Tbilisi Tel: (+995 32) 37 70 08 Fax: (+995 32) 37 70 08 info@globalservice-tour.ge marketing@globalservice-tour.ge
GUT Reisen
Incoming Tour Operator Company 1, Barnov str., Tbilisi 0108 Tel: (+995 32) 92 19 11 Fax: (+995 32) 92 19 11 info@exploregeorgia.com www.exploregeorgia.com
Tourist Company 25, Vazha-Pshavela ave., Tbilisi Tel: (+995 32) 37 95 26 Mobile: (+995 93) 75 00 85 Fax: (+995 32) 37 95 26 contact@gut.ge www.gut.ge
Georgian Events
Horizon Travel Ltd.
Georgian Tours
Intercontinental
Georgian Travel Guide
Intertour
Incoming Tour Operator 22, Metechi Raise, Tbilisi 0103 Tel: (+995 32) 99 90 00; 92 29 78 Fax: (+995 32) 92 21 59 georgia@events.ge www.events.ge
Travel Agency - travel and air ticket service 10, Kostava str., Tbilisi Tel: (+995 32) 55 20 67; 92 22 09 Fax: (+995 32) 55 20 67 geotours.info@caucasus.net www.georgiantours.ge
Offer cultural, ski, hiking etc tours in Georgia and Caucasus, hotel booking, car rent and other tourist services Digomi 1/11/64, Tbilisi Mobile: (+995 93) 93 77 51 Fax: (+995 32) 51 67 01 gtg@geo.net.ge www.travelguide.ge
GeorgiCa Travel Ltd. Incoming Tour Operator 22, Shanidze str., Tbilisi Tel: (+995 32) 25 21 99 Fax: (+995 32) 98 56 07 georgica@caucasus.net www.georgicatravel.ge
www.ebizguides.com
Travel agency 1, Khidi str., Tbilisi 0105 Tel: (+995 32) 98 25 37; 91 02 55 Fax: (+995 32) 98 47 93 info@horizontravel.ge www.horizontravel.ge
Tour Operator 3 Riga str., Tbilisi 0179 Tel: (+995 32) 29 43 43 Fax: (+995 32) 22 33 10 info@intercontinental.ge www.intercontinental.ge
Travel agency Head Office Address: 7, Melikishvili ave., Tbilisi Tel: (+995 32) 48 50 50/51 Fax: (+995 32) 25 38 45 corporate@intertour.ge 7, Tamar Mepe ave., Tbilisi Tel: (+995 32) 33 99 66 Fax: (+995 32) 94 28 80 i.manjgaladze@intertour.ge www.intertour.ge
Iridium Travel
Travel to Georgia, Caucasus - Alpine, adventure, hiking, cultural tours in Georgia. 24, Bakhtrioni str., Tbilisi Mobile: (+995 99) 94 20 10 Fax: (+995 32) 36 00 52 travel@iridium.ge www.iridium-travel.com
225
Entertainment
JET Travel
Travel Agency - Air tickets, hotel booking, special tours 37, I. Chavchavadze ave., Tbilisi Tel: (+995 32) 91 39 14; 91 39 15 Fax: (+995 32) 91 30 99 info@jettravel.ge www.jettravel.ge
Levon Travel Tbilisi Ltd.
Travel Agency 20, Ilia Chavchavadze ave., Tbilisi 380079 Tel: (+995 32) 25 00 10; 25 00 60; 25 01 99 Fax: (+995 32) 23 23 99 sales@levontravel.ge www.levontravel.ge
Magellan Ltd.
Travel Company 10, Lermontov str., Tbilisi Tel: (+995 32) 99 03 01 Fax: (+995 32) 48 21 15 info@magellan.ge| ticketing@magellan.ge tours@magellan.ge www.magellan.ge
Marvellous Tours to Georgia Tour agency 2, Budapesht str., Tbilisi 0160 Tel: (+995 32) 37 54 56 Mobile: (+995 93) 73 55 48 info@mtg.ge www.mtg.ge
Metropol Travel Ltd.
Travel Agency 1: 21, Chavchavadze ave., Tbilisi 0179 Tel: (+995 32) 91 24 01; 20 40 50 Fax: (+995 32) 91 24 01
226
28, Marjanishvili str., Tbilisi 0102 Tel: (+995 32) 95 14 71; 95 56 90 metropol@metropoltravel.ge www.metropoltravel.ge Working days and hours: Monday-Friday / 10:00AM - 06:00PM
Tbilisi Tourist Center
Incoming Tourism Agency / Culture & Trekking 39, Barnov str., Tbilisi, Georgia Tel: (+995 32) 98 29 66 Fax: (+995 32) 99 91 34 TTC@wanex.net
Tiflis Travel Company
Tourism, Ticketing, Visas for Russia 15, Mitskevich str., Tbilisi 0194 Tel: (+995 32) 38 35 09 Fax: (+995 32) 38 35 09 tiflis_travel2@yahoo.com www.tiflistravel.ge
Travel Club
Travel Agency 4, Leonidze str., Tbilisi 0105 Tel: (+995 32) 92 11 66; 92 10 60; 99 79 99 Fax: (+995 32) 92 13 83 info@travelclub.ge www.travelclub.ge
Visit Georgia
Tourist Agency 14, Nishnianidze str., Tbilisi 0105 Tel: (+995 32) 99 68 29 Fax: (+995 32) 99 68 29 visitgeorgia@geo.net.ge www.visitgeorgia.ge
www.ebizguides.com
Entertainment Sources
@
http://www.georgia.gov.ge http://www.investingeorgia.org http://www.georgia.travel http://www.tbilisi.gov.ge http://www.market.ge http://tbilisi.travel http://georgiatoday.ge http://www.finchannel.com http://www.geostat.ge http://www.adjarainvest.ge http://www.lonelyplanet.com/georgia https://www.cia.gov/library/publications/the-world-factbook
www.ebizguides.com
227