US Business in Georgia

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INSIGHT INTO O T THE H L HE LIFE IFE O IF OF F AN N A AM AMERICAN MERICAN TEACHER IN GEORGIA

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GAA Holding: Creating Standards in the Georgian and also other Markets for 20 Years

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“There Are Many Opportunities Still Left for Profitable Ventures in Georgia,” R. Michael Cowgill By NANA MGHEBRISHVILI The FINANCIAL

The Greek Tragedy: The Unfolding Drama Guy de Fontgalland See on p. 20

ONE GRANDPRIZE, TWO GOLD, ONE SILVER AND 13 BRONZE MEDALS See on p. 12

ENERGY PRICES IN EUROPE See on p. 20

In his 12th year in Georgia, R. Michael Cowgill is currently the President and co-founder of Georgian American University’s business and law schools in Tbilisi as well as Vice-President and Treasurer of the American Chamber of Commerce in

Georgia. “We started GAU as the education reform was just beginning. As GAU was based on the western system - we were already in compliance with most if not all of the reforms that were implemented. What has really changed is that all universities are now meeting the minimum standards required by the Ministry of Education &

Science. Competition has definitely increased in the education sector. There are fewer universities as many substandard ones have lost accreditation - giving way to the concept of “survival of the fittest”. Donor funds have also contributed to the overall improvement in the quality of Georgian education.” Continued on p. 3

Wissol has Joined the AS 24 Network By TAKO KHELAIA The FINANCIAL

AS 24 will soon be offering its plastic cards to Georgian drivers

W

issol has become an exclusive partner of AS 24 in Georgia.

Truck drivers travelling in the Caucasus will have the opportunity to fill up their tanks at Wissol service stations with the AS 24 network system. AS 24 is a Total Group subsidiary. The company has rapidly established itself as one of the main European suppliers of diesel on the roads. AS 24 is an international network that offers fuel to drivers in more than 26 countries. The company has

thousands of clients worldwide. According to Wissol officials, transit truck drivers in Georgia will be able to receive fuel from AS 24 fuel dispensers at Wissol’s stations located in Gori and Batumi. Drivers who have AS 24 plastic cards will now have the opportunity to use the company’s service in Georgia as well. Continued on p. 12

Helping Georgia Prosper See on p. 22

AMERICAN TOURISTS SPEND MORE

| 10 OCTOBER 2011, GEORGIA

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“U.S. investment in Georgia can lead to U.S. exports and therefore more jobs for Americans,” Michael R. Turner, Public Affairs Officer of U.S. Embassy Tbilisi By NANA MGHEBRISHVILI The FINANCIAL Q. Why is Georgia attractive for American investors and especially which fields are the most attractive? How did the tendency change during last years? A. Georgia’s free market economy, strategic location, and record of fighting corruption make it an attractive place for American investors. The people are

friendly, the food is delicious, and the strong history of hospitality makes Americans feel welcome. U.S. Companies invest across a wide array of sectors, and are often interested in using Georgia as a base to expand to the region. This tendency has not changed much, but the continued economic slowdown in the U.S. and Europe means there is less investment capital in the world that could come to Georgia. Continued on p. 16

Marriott Introducing Tbilisi to the World By MARIAM PAPIDZE The FINANCIAL

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teve Horvath, Area Director Revenue Management Eastern Europe, Marriott Hotel Holding GmbH and Rene Mooren, Area Director of Sales and Marketing, talked to The FINANCIAL about developing their business in Georgia and about developing Georgia’s marketplace. Q. Marriot has 3,500 hotels around the world. Last year the company announced its plans to expand in Georgia and open a third Marriot in Tbilisi. Is the Marriot really going to develop further in Georgia? Rene Mooren: In general, we

are looking to double the size of Marriott hotels. When I talk about Marriott I am talking about a multi brand; not just the Marriott hotel, but also the Courtyard by Marriott, Renaissance, and the rest of the brands that we manage. We are probably looking at doubling our size by 2015. That includes all the markets we are active in but also the markets where we are new. We have been active in Georgia for almost ten years and now we are also adding new hotels in a market like Azerbaijan, which is completely new to us. I can’t say at the moment that a third Marriott hotel is soon going to be opened. But it is true that we are looking at additional hotels in Georgia, Armenia, and Azerbaijan, almost all of the Eastern European countries in my area. Continued on p. 13

© 2011 The FINANCIAL. INTELLIGENCE BUSINESS PUBLICATION WRITTEN EXPRESSLY FOR OPINION LEADERS AND TOP BUSINESS DECISION-MAKERS


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US business in Georga

American Tourists Spend More By NANA MGHEBRISHVILI The FINANCIAL

November 7, 2011 44 (271)

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A

merican tourist Steven Brooks spent ten days in Georgia. Brooks and two of his friends visited the Georgian regions Kakheti, Kazbegi, Vardzia and Svaneti. “I like Georgia. But before coming here I knew only a little about the country,” Brooks said. “My friend is an English language teacher in Georgia and he advised me to visit the country.” “I love the Georgian nature; the gorgeous mountains in Svaneti, especially the Mountain Ushba. I love the local people. They are so hospitable. Some Georgian traditions seem strange to me, but it’s exotic. For example they always ask me to drink wine or vodka with them and expect me to say toasts. I like Georgian drinks, but in America we say about 10 toasts throughout the whole year while Georgians say 10 or more toasts during one sitting. I

would advise everyone to visit Georgia. It will be an unforgettable trip.” America is in the top ten countries, from where the biggest amount of visitors arrive in Georgia. In the 10 months of 2011 more than 21,000 American visitors crossed the Georgian border according to the data of the Georgian National Tourism Agency (GNTA). This number has increased 21 times in comparison to the same period of 2010. In total Georgia received 20,000 visitors in 2010. According to GNTA in the first 9 months of 2011 the number of visitors totalled up to 2,068,147, which is 43 percent more than it was in the same period of 2010. In the first 9 months of 2010 Georgia received 1,446,300 visitors. “America is one of the best developing tourist markets for Georgia, where interest in our country is constantly growing,” Beka Jakeli, Deputy Chairman of GNTA, told The FINANCIAL. “We have our special target market including the USA, where we implement more marketing campaigns. Apart from the number

of tourists, the money they spend in Georgia is very important for us. American tourists spend more money in the country than tourists from countries located near Georgia or our neighbouring ones. That’s why we spend so much attention on attracting more and more American tourists.” “We have our tools for attracting more American tourists. We cooperate with American tour-operators; arrange special info tours for them and representatives of the American media as well. We support local tour-operators in becoming more active on the American market. Our advertisements on international channels popularize Georgia as a tourism destination country as well as an attractive investment country,” Jakeli stated. According to Jakeli, Americans are mostly interested in cultural and adventure tours across Georgia. Many of them prefer hiking in the different regions of Georgia. The most popular regions among Americans are Svaneti, Kakheti and Mtskheta-Mtianeti.

“We receive many individual tourists from the USA as well as large, well-organized groups of tourists,” Jakeli said. This year GNTA participated in the exhibition of “Miami Cruise Shipping” in Miami. The agency started Georgia’s popularization as an attractive country for cruises. “We presented all our cruise opportunities for the first time in Miami. Batumi Port has the possibility to receive quite a large number of cruises. So we want to develop cruise tourism is Georgia as well,” Jakeli added. Caucasus Travel, one of the travel agencies in Georgia, agrees that the number of American tourists is increasing. “Visitors from neighbour countries are mostly driving in to the country by car and therefore don’t require our service. In comparison to other foreign countries’ visitors who arrive in Georgia by airplane, the number of Americans isn’t low, moreover it actually surpasses that of many countries. Of course the more the better, and it could be more, but for the moment I think it’s a satisfactory number,” said Maia Qatashvili, Manager of Caucasus Travel.

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US business in Georga “There Are Many Opportunities Still Left for Profitable Ventures in Georgia,” R. Michael Cowgill

By NANA MGHEBRISHVILI The FINANCIAL “All businesses, regardless of where they are located, need well educated and experienced managers and professionals,” R. Michael Cowgill told The FINANCIAL. In his 12th year in Georgia, R. Michael Cowgill is currently the President and cofounder of Georgian American University’s business and law schools in Tbilisi as well as Vice-President and Treasurer of the American Chamber of Commerce in Georgia. Q. What has changed in the system since the period GAU was founded? A. We started GAU as the education reform was just beginning. As GAU was based on the western system - we were already in compliance with most if not all of the reforms that were implemented. What has really changed is that all universities are now meeting the minimum standards required by the Ministry of Education & Science. Competition has definitely increased in the education sector. There are fewer universities as many substandard ones have lost accreditation - giving way to the concept of “survival of the fittest”. Donor funds have

I do not think we are back to the economic conditions we had before the war and financial crisis in 2008. also contributed to the overall improvement in the quality of Georgian education. The Georgian education system is continually improving. Further, all of us in higher education and in business welcome the added reforms that are being implemented in the school system (elementary, middle and high schools) which serve to improve the quality of students entering and ultimately graduating from the universities. When GAU was started in 2005, I estimated it took almost 2 years to bring incoming students up to an international standard of learning. Although that has not yet reached a level equivalent to most western universities, it has definitely dropped to less than a year. Another benchmark is how we evaluate our students’ performance when they transfer to or attend a post-graduate programme in international universities. Our students are not only competitive with students from other countries, most times they excel. Q. How important is western education in Georgia? What are the main western guidelines the Georgian education system has to follow?

A. First, we need to be careful in defining what we mean by “western education”. Good education is no stranger to Georgia as Georgia was one of the leading centres for education in the Soviet times. What we now refer to as “western education” is merely a level of quality which includes relevant, upto-date programmes taught by qualified lecturers that include theory and practical aspects. Those programmes are facilitated by modern texts and materials, a focus on language skills, safe and comfortable facilities, promotion of ethical behaviour and a management structure that facilitates efficiency, innovation and creativity throughout the educational organization. The other key part of that mix is that there is attention paid to the needs of the organizations that hire the students/graduates - and ensuring that the programmes are developed or modified accordingly. Yes, those qualities are surely the basis for “western education” - but when defined in such a way, it just makes logical sense for defining a successful education system in any society - and not so different than what was present in Georgia during the Soviet period. Western education has just become a good and visible model to follow to get back on track and be competitive. As the world gets smaller and global competition increases, I tell the students at GAU that they are not only competing with the students sitting next to them - they are competing with students the world over. Q. Why is GAU such an outstanding university among the many universities in Georgia? A. From the beginning, GAU was run like a business. Meaning that we focused on ensuring our programmes are of the highest educational and ethical standards that meet the needs of the business, legal and governmental communities, those organizations that hire our students/graduates. We also ensure that we have efficient management systems in place, both in the academic and administrative areas which allow us to keep tuition fees as low as possible while still paying staff and lecturers competitive salaries. Our growth has been conservative and controlled and based on the needs of the market place. We have a Board of Shareholders that brings a diverse skill set to support the strategic planning. Furthermore, many of our senior staff members are also shareholders which give added incentives for success. Q. What kind of opportunities do GAU students have in terms of studying in the USA? A. GAU has formal affiliations with American University, Washington DC; Clayton State University, Morrow, Georgia; College of the Ozarks, Branson, Missouri; and Fordham Law School, New York, New York all of which allow student exchanges. With GAU’s emphasis on English language skills

R. Michael Cowgill President and co-founder of Georgian American University Treasurer of the American Chamber of Commerce in Georgia

to complement the technical programs, our students have few problems in being accepted in other US universities on a competitive basis. Most recently our Natural Science & Engineering faculty has just began advertising the arrangements we have made for virtually “free” post-graduate fellowships with such prestigious US Universities as: MIT, Harvard, Yale, NYU, Columbia, Univ. of Pennsylvania, Johns Hopkins, Brown, Cornell and Princeton. Q. The university is called Georgian American. How does the US support it? A. GAU was started solely from private individual funds - currently with 36% US ownership. There was no US Government funding at all. However, GAU, similar to any business with American ownership, has been and continues to be supported by the American Embassy here in Tbilisi and we work closely with the American Chamber of Commerce in Georgia. We have also been fortunate to be involved with some USAID programmes, specifically in Civil and Legal Education. Q. Which faculty is the most popular at GAU? A. GAU’s Business Administration faculty continues to be the most popular. Within that faculty we have Finance, Accounting, Marketing, Management and Quant’s, which is a unique mixture of Mathematics, Computer Modelling and Financial Analysis. Q. How many students does the university have annually? Are some of them foreigners? A. In GAU’s degree pro-

grammes: Business; Law; and Natural Science & Engineering - we maintain a fairly constant number of students, between 900 and 1,000. Our certificate programmes in Public Relations, Marketing and Accounting account for another 200-300 students annually. GAU also bought and is finishing the renovation of the former Institute of Geography where we can accommodate 1,500 degree programme students. As for foreign students, at any given time we have between 5-10 foreign students from countries such as Russia, Belarus, India, China etc. Q. How successful are GAU graduates? Please tell us some success stories. A. Although we have not compiled the statistics from the previous graduation, our graduate hiring rates (which also include students going on to post-graduate education programmes) are among the highest of all universities in Georgia: MBA - 100%; BBA - 80%; LLM - 80%; LLB - 70%; PhD - 100%. Q. In your opinion, in which sectors does Georgia lack in good professionals? A. Across all sectors, we have excellent top management and good entry level graduates. However, similar to many other countries, Georgia is missing mid-level professionals and management. As for sectors, one of the reasons GAU introduced its new Natural Science & Engineering faculty is that Georgia has a real shortage of well-educated engineers and IT specialists. A few years ago, Georgia had a great shortage of professionals in marketing and PR - but the

Business Schools realized this and have made great improvements in attracting and educating students in those fields. The same applies to general and project management. Q. In which field are Georgians strong and well-qualified? A. The legal education system has greatly improved and when supplemented with a good practical programme (like GAU’s Legal Clinic) is producing well qualified legal professionals. Similarly, I believe that due to Georgia's history of excellence in mathematics and statistics - now coupled with modern educational programmes in business - Georgia is producing strong graduates in the fields of accounting and finance. Q. How would you evaluate the business environment in Georgia? A. As Vice-President and Board Member of the American Chamber of Commerce in Georgia, that question is asked many times and in many ways. Personally, I do not think we are back to the economic conditions we had before the war and financial crisis in 2008. However, especially compared to many neighbouring countries, we have a government that understands that successful businesses are key to the country’s economic progress and continues to work towards an investor-friendly business environment. Q. What are the main obstacles that foreign and especially American investors face in Georgia? A. First, realize that there are many global opportunities for investing. Investors are extra careful in choosing where and in what they invest. Even the slightest potential problem may be enough to dissuade an investor. This is the reason many organizations are working with the Government to tackle real or perceived obstacles such as the lack of an independent

I believe that the US presents a great market for Georgian wine. judiciary and the existence of certain monopolies. The Government has made great strides in tackling corruption and lowering tax rates. Another impediment I see is that unless the investor brings in all of its own capital, the cost of capital (high interest rates for borrowing) is prohibitive for normal business operations or expansion. I also still see some reluctance from investors due to the continued rhetoric and sabre rattling coming from Russia. The US has invested quite a lot of money in Georgia which also gives confidence to American investors. It is very easy to set up and operate a business in Georgia.

The US Embassy is very active and supportive as is the American Chamber of Commerce. Also, attractive to American investors is that there are many opportunities still left for profitable ventures - all the good ones are not yet taken. Georgia’s location is also advantageous for exporting to growing neighbouring countries and to the EU. When a country such as Georgia has such a key strategic location and similar values - the investment is well justified. From a US Government perspective, Georgia’s role in energy transit is vitally important to the US and its allies. Having a stable and democratic partner such as Georgia is a key to maintaining a status quo within the “sphere of influence” of Russia. Q. What was the latest important development of American-Georgian relations? A. There have been quite a few recent important developments: the decision of Millennium Challenge to provide a 2nd tranche of funding to Georgia; the Economic Prosperity Initiative (EPI); the US role in the WTO negotiations between Georgia and Russia; and a number of OPIC loans to businesses with US ownership. Q. How could the investment climate, especially for Americans, be improved in Georgia? A. The areas important to the investment climate are more institutional in nature. As mentioned above, I see needed improvements in the area of judicial independence; more checks and balances between the 3 branches of government including strengthening of the legislative body of Parliament; further revisions to the tax & customs codes; a reinstitution of the anti-monopoly regulations; and continued reform in the electoral code. Q. What are the differences and similarities between the American and Georgian business sectors? A. All businesses, regardless of where they are located, need well educated and experienced managers and professionals. There must also exist a stable and democratic society in which to operate and export to. As for the differences, America has a longer “modern” history of market-based business practice and therefore has a more well-defined system of human resources for supplying those businesses with well-qualified professionals - at all levels. As I mentioned earlier, another key difference in the American and Georgian business sector, is that for American business, there is a huge advantage in being able to access low-interest loans for starting and expanding businesses. Q. What are Georgians’ current opportunities in the US? A. Like many others in Georgia, I believe that the US presents a great market for Georgian wine.


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HEADLINE NEWS & ANALYSIS

FINANCIAL

NOVEMBER 7, 2011 | FINCHANNEL.COM

US business in Georga

GAA Holding: Creating Standards in the Georgian and also other Markets for 20 Years By MARIAM PAPIDZE The FINANCIAL GAA Holding has been operating a union of business and marketing companies in Georgia since 1991. It was the first advertising company on the Georgian market with whom American and international companies started cooperation. Year after year the company integrated different international companies. The companies united under GAA Holding today, are: Torrent FZCO Dubai, SENA MOTORS, McCann Erickson Georgia and Armenia, Advertising Group BAGEBI, MPG Georgia and Armenia, Star Group - STAR FM 93,9 and MSG - Internet Media Marketing Agency. All the companies cooperate with local and international companies. In total around 200 people are employed in the Holding. The President and founder of the GAA Holding Gia ALIKHANASHVILI talked to The FINANCIAL about the developments, strategies and future plans of the company. Q. 20 years have passed since you first appeared on the Georgian market. Tell us how your company has developed over the years? A. We started our activities in a small studio which created its own age in advertising. It was one of the pioneer studios of the time, producing and airing advertisements. In 19951996 the business started to grow and lots of similar agencies to ours appeared. It took 5-6 years to persuade businessmen of the benefits of having an advertisement. Advertising was a new field on the market in the post soviet area and that was the reason why businessmen didn’t understand the need for our agency. In the very early years, we were making and airing advertisements and only after finding out that it really was positive for their business did businessmen pay us for our work. After this, they continued cooperation with us. It was a very big risk for us, but this was the only way to have clients. Some of our clients grew with us, some of them have increased so much that our agency alone isn’t enough for their advertising campaign anymore and now several agencies work for them in total. Then international companies started cooperation with us. We studied work with foreign clients which was very different from local ones. After this, in the years 1998-1999 N1 American agency McCann Erickson Worldwide appeared. The company requested a representative in the Georgian market. It took 8 Months of researching our market until they at last decided for our company to represent McCann Erickson in Georgia. Other companies came to Georgia as well following McCann Erickson. When you make something important for your client and the client sees that it’s effective, trust appears from their side. We were oriented on having customized service from the very beginning. Your opinion and the client’s should be similar to each other and meet the format that the advertising requires. We made a new office for McCann Erickson in Armenia. That office is under my management as well. There is McCann Erickson Armenia’s sister agency UM . In total I made 5 agencies for McCann Erickson NETWORK. We have a head office

in New York and a European head office in London. Q. Your slogan is “Creating Modern Standards”. What kinds of standards are modern nowadays? A. During a certain period we were the first to do some things. We did things that were innovations on the Georgian market. We have had cases of starting from zero and then developing. We sometimes had initiatives, very good, useful and profitable initiatives which were lost because the Georgian market wasn’t ready for them. So we really created modern standards. Q. What were the effects of the financial crisis on the Georgian market? What are the tendencies right now? A. We went through three crises. Now we are being told that the fourth one will be because of the European crisis, and should be over by 2013. I think that all the crises are created and then solved IN ALL COUNTRIES by the same FINANCIAL INSTITUTES. When told of an impending crisis, my strategy would be not to invest in new businesses and spheres, but strengthen those ones which I already have. For example, we had a journal before the crisis but we stopped producing it as soon as the crisis began. Now we’re trying to strengthen those organizations in the holding that have a chance to survive the future . Those organizations, however, which have no chance, we need to stop for a while. Q. SENA Auto has been selling Suzuki cars in Georgia since 2007. Please give us some sales statistics. Also, how would you evaluate Georgia’s auto market? A. From 2006 to 2008 we had the most successful sales. It was a peak in sales. We saw that it was a business with perspective even during the crisis and we added new organizations such as AMERICAN - Polaris, FINISH - Nokian Tyres, HOLANDIAN -Nipparts and UAE - ENOC. In general, because of the low price, American cars are more in demand in Georgia than European ones. It doesn’t mean that American cars are cheap. Nowadays, there is a difference in terms of specification. The same car has a different price in American, European and Asian markets. Q. What organizations or companies would you establish today or in the future? Do you think the Georgian market needs some new directions which it doesn’t yet have and would you consider establishing them? A. I established a circle in my holding. Every business unity helps the other. If we start thinking about new developments, we would need deep changes in our strategy. In those economical and political conditions which I expect there to be in the future, I wouldn’t risk it. I wouldn’t consider a situation where a new INVESTOR brings some investments IN Gaa Holding companies and we just help to develop the business. Q. Is Georgia a good place for GAA’s partner companies to do their business in successfully? A. Every country has a different point of view. For example, countries like China, Korea, and Japan are very cautious about where to start their business and where to invest. Central

Asia and Eastern Europe are a little more risky. Americans are faster in making decisions and in researching the market. They are trusted here and that’s why their business has developed so easily in Georgia. A business has to be at the right place at the right time to succeed. Georgia is the right place for Americans and they are using that to their advantage. They even invested in the Georgian market during the crisis. The Georgian Government correctly calculated which country to focus marketing on and with whom to cooperate. Q. You have said that successful business means a successful country. Do you think that Georgia is a successful country and do you think you have helped the country to be successful? A. Without companies like ours, how can a country be successful? We don’t only work for us, but for the country as well. We work to give income to the country, to ourselves, to employ people. This is common work. The state can’t exist without business and business - without the state. We need to be partners. Q. What can you tell us about Georgian-American economic relations? A. The economic relations between these two countries have a big future. It has been increasing investment securities in Georgia. There is very little European business here even today and American companies will be the first companies to appear next in Georgia. McCann Erickson Georgia, established in 1998 in Tbilisi, was the first international network advertising agency to appear in the Caucasus region. It started to work with the biggest international client companies, such as Coca-Cola, J T I, Nestle, Master Card, Unilever, FERRERO… and other McCann-Erickson network clients. UM Georgia provides market innovate strategies services in media planning and buying as well as a full spectrum of media communications services. It is one of the top media companies in Georgia. UM Georgia is dedicated to use communications to build their client’s business. It provides creative - accountable media solutions which are based on real consumer insights. Eka Khundadze, McCann Erickson Client Service Director, Maka Tsikoridze, Director of Momentum Georgia and Nana Janjgava, Director of UM Georgia, shared information about their companies’ operations in Georgia. Q. Your goal is to help the businesses who are in the process of development. How does this goal work here in Georgia?

Eka Khundadze, McCann Erickson Client Service Director

Gia Alikhanashvili, President and Founder of GAA Holding

It is in the interest of newly developed businesses which are starting up to have an advertising campaign. They must plan from the very beginning to have a successful advertising campaign. In Georgia it’s a little bit difficult to make a good advertising campaign because it needs financing. Local businessmen don’t have enough finances for the startup period. Foreign companies, on the contrary, can put investments in to advertising. Advertisement is an investment for them that can return their money and increase their business.

Maka Tsikoridze, Director of Momentum Georgia

The education and knowledge of our clients is much better now than it was for example 10 years ago. They know what they need much better than they did 10 years ago. The service of our agency has become clearer for our clients. This indicates that the market has evolved. Q. What kind of service do you provide to startups? Eka Khundadze: For example, for start-ups research is necessary; an action plan developed based on research. We are guided by international standards and based on these standards we develop an action plan. This distinguishes our company from other companies. A little more globally we are pertinent to this issue. We have long experience and we know the market. We can easily advise them when, where and how to start their business. Maka Tsikoridze: The primary plan for start-ups is very important, because the first

impression is always important. That’s why companies should order a start-up with experienced companies and create an action plan after consultation with them. Q. Your goal is also to help not only start-ups, but the companies who are already developed. Which one is more difficult to work with? Maka Tsikoridze: Both of them have similar difficulties. For us a start-up is much more interesting. What’s very important is how the clients trust you. The difficulty is to make your client sure to believe you and make investments according to your advice. As the first impression is very important, CREATING start-ups is more interesting. Q. McCann Erickson Georgia was the first international advertising agency to operate on the Georgian market. How has the advertising market changed since that time? Eka Khundadze: Our agency was opened on the basis of experienced company, Kedi TV. It was the first agency in Georgia and was a monopolist on the market. Then came McCann Erickson, who brought their clients, their management with them and we started our development here. Now companies have well developed marketing. Their demands are more subtle. Other countries’ advertising markets can be more developed, but ours is improved as well. As McCann Erickson was the first international advertising company here, it has been hugely responsible in developing the local market. We were responsible for this along with McCann Erickson as well. As we needed to bring to the Georgian market all the standards that McCann Erickson has, it caused the improvement of the local market. To be more specific, I can mention that McCann Erickson was the first to make strategic plans. We were the first to make a communication plan; we were the first to use international tools and so on. Q. McCann Erickson operates in Armenia as well. What are the similarities or differences between these two countries and

what are the advantages these countries have compared with each other? Eka Khundadze: We are post soviet countries and we have lots of similarities. We began developing at the same time. We had the same level, same problems, and same situation. For example issues like media monitoring, research etc, came earlier to the Georgian market than the Armenian one. The Georgian market has little advantages compared to the Armenian market. We brought Georgian clients to the Armenian market. We have close relations with McCann Armenia And also McCann Azerbaijan… it’s a much more developed country in terms of advertising. The finances, budget and investments are bigger there and the market developed faster. We offer to our clients IN 3 or 7 CIS countries OUR SERVICES AND ALSO IN 132 COUNTRIES -WORLDWIDE

Nana Janjgava, Director of UM Georgia

Q. What investment opportunities were there this year and what will they be next year? Nana Janjgava, UM Georgia: The investments will grow and not just because they are growing in general, but because of inflation. Before the August war in 2008 there was a peak of investments here. Then suddenly there was a large fall in investments. From the end of 2010 prices have been rising, that means demand is increasing, that means investments are growing. Investment growth is dependent not only on raising prices but also on the appearance of new companies.


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US business in Georga

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US business in Georga KHACHAPURI INDEX IS EXCLUSIVELY PROVIDED TO THE FINANCIAL BY ISET

OCTOBER 2011

KHACHAPURIINDEX

According to our recipe, the Tbilisi cost of cooking one standard Imeretian khachapuri in October 2011 was in the [2.9; 3.6] price range; the average price was 3.3 GEL. Last month, Kh-Index unexpectedly declined, but we predicted that it will continue climbing up until January 2012. Our expectations have been justified so far – KhIndex increased in October to 3.3 from 3.2 GEL in September, and thus is back to the August level. The Tbilisi price of the main khachapuri ingredients increased: prices of flour, cheese and milk are up by about 2-3%; butter is up by 12%. Overall, the price of khachapuri added 2.5%. The October price of Khachapuri is only slightly lower (by 4%) than the absolute maximum recorded in

January 2011. We expect KhIndex to go up for the next few months, due to seasonal factors, setting a new absolute maximum at the end of 2011.

ECONOMICS LESSON OF THE WEEK: INFLATION IN GEORGIA COMING TO A HALT? As can be inferred from the table below, Kh-Index movement in year-on-year terms (compared to the same month in previous year) is very similar to the dynamics of the “food and non-alcoholic beverage” category in the CPI basket. In October 2011 one

could cook a Khachapuri for exactly the same price (3.3 GEL) as in October 2010! KhIndex inflation is thus exactly zero! Likewise, year-on-year inflation in the “food and nonalcoholic beverage” currently stands at only 1.5%. Very low Kh-Index inflation is also consistent with the overall CPI inflation trend in Georgia: in October CPI inflation reached 2.3% in year-on-year terms, having come down from much higher levels recorded in spring 2011. Year-on-year inflation was on the rise in Georgia during the first half of 2011 due to a surge in global commodity prices. Given the very large share of imports in total food consumption (about 80%), any change in global commodity prices is very quickly passed on to food prices in Georgia. Moreover, food and non-alcoholic beverages constitute a very significant share (40%) of the Georgian CPI consumption basket. Hence, changes in global commodity prices have a very significant impact on overall inflation. As can be seen from the table above, food prices were very high during the first 7-8 months of 2011, some 2030% higher than in parallel months of 2010. By October 2011, however, after a series

of declines, food prices came down to a level that is only 1.5% higher than in October 2010. There has been much less volatility in all other categories of goods and services. For example, the prices of housing, water, electricity, gas and other fuels increased slightly throughout the year, ending up only 2.6% higher in year-on-year terms in October. To reiterate, inflation in Georgia reached low levels not observed during the past 20 months. Since January 2011, CPI added only 1.3%. Average monthly inflation in this period constituted only 0.1%. While we anticipate seasonal price increases in

the remaining two months of 2011, it can be safely assumed that end-of-period inflation in 2011 (December 2011 compared with December 2010) will be much lower than in 2010 (11.2%).

THE ISET KHACHAPURI INDEX The ISET Policy Institute (ISET-PI, www.iset-pi.ge) is an independent think-tank associated with the International School of Economics at TSU (ISET). ISET-PI has designed a simple and robust way of tracking inflation and

the differences in the cost of living across Georgia’s major cities. Unlike traditional “consumer baskets” used for monitoring price inflation, our “basket” includes only those ingredients that are needed to cook one Imeretian khachapuri (cheese, butter, flour, yeast, eggs, and milk) and energy inputs (gas and electricity). We conduct a monthly survey of the major markets in Tbilisi, Kutaisi, Batumi and Telavi to measure the differences in the cost of living across Georgia and to track the monthly fluctuations in the prices of all relevant ingredients.

Year-on-year CPI and Kh-Index inflation in the first ten month of 2011 (January to October) Month

January February March April May June July August September October

Year-on-year annual inflation (%) 12.3 13.7 13.9 13.5 14.3 10 8.5 7.2 4.6 2.3

marketing@commersant.ge +995 32 505 955

Year-on-year price increase in the food and non-alcoholic beverage category (%) 25.2 28.4 28.8 28.6 30.7 22.2 16.6 12.5 5.8 1.5

Year-on-year increase in the Kh-Index (%) 22.1 33.2 15.8 32 19.7 20.4 19.4 27 5.9 -0.3

Advertiser: Radio Commersant. Contact FINANCIAL Ad Dep at marketing@finchannel.com

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US business in Georga

Road to Success

ZURAB LALAZASHVILI,

Managing Partner of BDO, speaks about the auditing sector in Georgia and the expanding market By NANA MGHEBRISHVILI The FINANCIAL “I started off as a regular college guy in very bad times in Georgia and I am grateful for each and every chance I’ve been given since then that have made me be where I am now,” Zurab Lalazashvili, Managing Partner of public accounting firm BDO, told The FINANCIAL. “Together with my partners I decided to establish and run our own practice after a few years of working in one of the largest audit firms at the time at an age of 25. The first years of our firm were the most challenging and at the same time very interesting for us. We worked more than 12 hours a day and almost 7 days a week. This resulted in success for our firm and for the last several years we have been clear leaders in the Georgian audit and advisory market. We consider ourselves to be strong with our clients, the network and our people and intend to keep our ambitions open to much higher achievements,” Lalazashvili said. BDO has maintained the leading positions in Georgia for the past several years, currently ranking 4th among the largest audit firms on the market. BDO is the world’s fifth largest network of public accounting firms. The firm provides advisory services in over 135 countries, with almost 48,000 people working out of 1,082 offices worldwide. “I moved from professional practice to a managing role a few years ago and am now looking at the whole business from this perspective,” continued Lalazashvili. “I should say, this is a much more complex and challenging job than any engagement I was a part of when in practice. For years now I have been with the Georgian Federation of Professional Accountants and Auditors (GFPAA) and I’m glad to have contributed my share in the development of the profession. I had the honour to recently be elected Chairman of the Board at GFPAA. I am also heading the customs and tax committee at the Business Association of Georgia and work closely with my colleagues from different businesses to liaise with the Government for the best possible business environment provisions.” Q. How many partners does the firm have and who are they? A. We currently have seven partners: Zurab Lalazashvili - managing partner, Levan Mklavishvili - senior partner, Ivane Zhuzhunashvili - assurance & advisory, Mikheil Enukidze - tax, Jaba Mklavishvili - valuation, David Gelashvili - legal, and David Khrikadze - legal.

Zurab Lalazashvili, Managing Partner of BDO

Each service line partner runs the respective department within the firm. These are the people who have been with the firm for many years now, who have grown with the firm and contributed their knowledge, time and effort to the constant development, and now also engage as mentors for the future leaders in the company. Q. BDO established its office in Georgia in 1999. How has the audit sector as well as the attitude of Georgian companies towards audit service changed since that period? A. When we started, the overall field of business advisory was new to the region, but we faced the challenge and never regretted it. We practically grew with the profession having participated in almost all major developments in the country. The audit sector since then has grown rapidly. The businesses now have deeper and more accurate understanding of the need of assurance and advisory for their everyday and strategic matters. They have grown used to having a reliable business advisor who they consider a friend, a supporter, rather than someone who just inspects and investigates their files all the time. Q. Among your wide spectrum of services offered including assurance, tax, transaction and advisory services, which are the most demanded in Georgia? A. It’s true; we offer a wide spectrum of services - audit & business advisory, internal audit and control systems, tax advisory, outsourcing, valuation, legal advisory and IT consulting. We see that all the service lines are demanded in Georgia right now and we

believe that demand for business advisory services will grow. Q. What is the share of each service in total BDO revenue? A. About 38% comes from audit & assurance service in total BDO revenue, 28% is earned by outsourcing, 22% is tax, about 8% comes from legal advisory and up to 4% valuation. Q. Please could you name and list the sectors and companies, in particular foreign ones, which you serve. A. Here is an incomplete list of our clients with the industries: TBC Bank, Imedi L International - insurance, Saknakhshiri and GIG Group - coal mining, Wissol Group oil & gas, Finca - microfinancing, British American Tobacco, Oriflame - perfumery, Microsoft Georgia, Polzug Intermodal - international logistics, Schering Plough pharmaceuticals, Strabag AG - construction, Representative of Huawei in Georgia high tech. Q. What should the first step be for foreign investors entering Georgia? A. The first things to consider when entering the Georgian market are: any investor should conduct proper research, make sure they have talented local people on the ground and seek good, solid advice in tax and legal matters. Q. In your opinion, what procedures should guide business in today’s climate to operate properly and successfully? A. I believe that good management and professional staff are the two most important factors for the success of any business. Ability to adapt to the constantly changing environment, stay socially active and up to date, take challeng-

es, allow novelties and initiative - these would not exactly be called procedures, rather just qualities to be guided by for a successful business. Q. In your opinion, what are companies’ expectations from their auditors? A. What our clients expect from us as their auditors is the ultimate risk awareness. Most importantly, our clients require the adviser’s availability to attend without impediments to all matters they deem significant. Some of them expect and welcome initiative from the adviser; the others prefer smooth cooperation with their management. Anyway, flexibility, although in line with our common professional approaches, and the insider’s attitude is I believe what our clients expect from their trusted auditors. Q. Each firm has its own standards and guidelines while accepting a client. What circumstances should clients satisfy to be audited by BDO? A. We are committed to BDO’s international standards on client acceptance, which cover all significant topics including information about the potential client’s activity, ownership matters, any tax avoidance or illegal transaction records, etc. However, in general there should definitely be no conflict of interests or independence issues when accepting an audit client. We need to be sure that our sector expertise for the potential client will let us perform with the highest standards. We need to be sure that the client shall be willing to cooperate and provide all necessary information. Q. Due to the high expenses many SMEs cannot afford the cost of being audited. Do you serve

SMEs in Georgia and what are your offers for them? A. We do serve SMEs. All assurance engagements are conducted using the Audit Process Tool (APT), the BDO Network-wide software applied by all member firms. APT is an advanced adapted tool which allows serving a variety of clients with equal quality, including SMEs in a specific, effective manner considering the circumstances. We offer methodology and specific approaches tailored to the size and needs of the enterprise. Q. Please name the advantages of having an internal audit department within the company. In your opinion, is the service becoming popular within Georgian companies? A. Georgian businesses aspire to Western standards of operation and management, i.e. risk management and proper controls. Having an internal audit department within the company allows the board to make sure that all processes in the firm run just as they should; an internal audit adviser adds value to enhancing the control systems and risk management. The recent developments on the Georgian market reveal the increasing need of proper internal controls within the firms because risk management is becoming a major issue for businesses. The best tool to evaluate and enhance the risk management and internal control system efficiency for the firm is an internal audit advisory service provided by audit and consulting companies. We can say that today both public and private sector companies express a fair level of demand for internal con-

trol system improvement. Q. What are the main aspects of the Georgian tax system that could encourage foreign investments? A. The main issues in Georgia’s tax system that could largely be in favour of attracting foreign investments are lower tax rates and less tax burden thereon; considering the various business sectors - introduction of special tax regimes oriented towards tax reliefs and stimulation, also towards minimizing for the businesses the technical barriers and time costs inherent to the tax administration process. The tax compliance procedures are also simplified and less time-consuming; I am referring to registration, reorganization, liquidation, tax return submissions, payments, etc. These are now possible to perform distantly, through electronic means or on spot in one window. Q. You are auditing international firms in Georgia, what are the major concerns and obstacles foreign businesses face in Georgia? A. I think that the major concerns for international companies in Georgia are a lack of qualified local personnel and in most cases not enough knowledge of the local business environment and regulations. Compliance with legislation in terms of both operations and management is critical when doing business in some place that’s not home. But even at home having a knowledgeable trusted adviser is a must. Q. Please name the most important recent changes in the tax system of Georgia? A. In my opinion the most important recent changes in the tax system of Georgia concern the re-exportation of foreign goods from Georgia, which imply introduction of special trade enterprises and simplifying the re-exportation procedures and allowing tax relieves. This should significantly contribute to Georgia’s function as a transit territory. Q. How many employees does the firm have? How does the firm support the career development of its employees and how does ACCA influence the auditors’ career path? A. We have about 80 employees right now, including all partners and staff. We consider our people the most important asset of the firm and set their development as a top priority. Extensive internal and external trainings, all useful and interesting resources available, a mentoring and coaching system within the firm, a friendly environment which we highly value, provide the full support for our staff to develop, and most importantly to be willing to develop. We are the ACCA Approved Employer, Gold level, meaning that the majority of our people being successful ACCA students will be exempt from Practical Experience Requirements. Needless to say, this is the valuable knowledge and experience that brings confidence and accuracy to the profession. Q. What is the main challenge for BDO Georgia in 2011? A. Our main challenges in 2011 are better positions on the market and increased business advisory service.


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US business in Georga

BDO, the Georgia Member Firm of BDO Network, is the fourth largest audit and advisory ďŹ rm in the country. With over thirteen years of experience and qualiďŹ ed professional staff, BDO provides the local and international companies with high quality services in: Ě? š‰Ž™ Ě? †Â? Ě? š™˜”š—ˆŽ“Œ Ě? Ž˜Â? ‰›Ž˜”—ž Ě? ”“˜š‘™Ž“Œ Ě? †‘š†™Ž”“ Ě? ŠŒ†‘ BDO is a world wide network of public accounting ďŹ rms, called BDO Member Firms. With more than 1,082 ofďŹ ces in over 120 countries and $5.28 billion combined free income in 2010, BDO is the ďŹ fth largest such network in the world.

Advertiser: BDO. Contact FINANCIAL Ad Dep at marketing@finchannel.com


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AmCham members in Georgia Company

Patron Members PM APM Terminals. PM BP Exploration Georgia PM Exxon Azerbaijan Ltd PM PricewaterhouseCoopers PM United Global Technologies (UGT) Corporate A members A ABRIS Distribution AG A Advanced Engineering Associates Int-l, Inc. A Alliance Group Holding, JSC A Avon Cosmetics Georgia LLC A F H Bertling Ltd, Georgia A Betsy’s Hotel / Prosperos Books A Booz Allen Hamilton, Inc. A British American Tobacco A Catoni & Co. Georgia A Caucasia Trading LLC A Caucasus University A Chartis Europe S.A. Georgia Branch A Chemonics International A CH2M HILL A Deloitte A Diplomat Georgia LLC A DLA Piper Georgia LP A Ernst & Young A Georgian American University (GAU) A Georgian Audit & Consulting Company A GMT Group A Greco Group A GT Group Ltd A Hall, Booth, Smith & Slover, P.C. (HBSS) A HSBC Bank Georgia JSC A JSC "Iberia Refreshments" - PepsiCo Bottler in Georgia A Imedi L International A KPMG A Levon Travel A Maersk Georgia LLC A Magticom A Marriott Hotels, Resorts & Suites A Metromedia International Group, Inc. A Microsoft Georgia LLC A Mobipay (OpenRevolution Georgia) A Pfizer Georgia Philip Morris Management Services B.V. Representative Office in A Georgia A ProCredit Bank A Radisson Blu Iveria Hotel A Salford Georgia A MSD (Schering Plough Central East AG) A SEACOR Environmental Services International (SESI) A SEAF Management LLC A

Sheraton Metechi Palace Hotel

A T&K Restaurants (McDonald’s Georgia) A TBC Group A TBSC Consulting Corporate B members B AGV Czech Republic Ltd B Aliance Georgia Ltd B Alioni-99 Holding Co B GZ American Academy in Tbilisi B Bagebey City Group B Baker Tilly Georgia Ltd B Bank of Georgia B Bank Republic B BasisBank, JSC B Batumi Oil Terminal Ltd B BDO LLC B LTD Mobitel B BG Capital B BGI Advisory Services Georgia B BLC Professional Legal Services B Casino Adjara B CaucasTransExpress B Caucasus Online LLC B Chateau Mukhrani, J.S.C.

address 52 D. Agmashenebeli St 4-401, Poti, Georgia 38 Saburtalo St. Landmark Suite 300, 95 Nizami St Baku, AZ1010 Azerbaijan 7 Bambis Rigi St, 0105 Tbilisi 17a Chavchavadze Ave. 7th floor

FINANCIAL

Phone '+493-220660 2593400 +994-12-498-2460 or USA 17137679328 250-8050 2220211

21 Liubliana St 2527271 20 Kipshidze st., 3 Floor, Apt. 3 2252762 47/57 M. Kostava St 2424181 117 Tsereteli Ave. 2226805 9 Tarkhnishvili St 244 33 56 32/34 Makashvili St. / 2987624 4, Freedom Square 248 13 48 71, Vazha Pshavela A4th fl, Office #21, Tbilisi, 0186ve., 1st block, 215-7500, -01, -02 3 Lesia Ukrainka Str., Apt.7 2989230 16 Krtsanisi, korpusi 7, bina 11 2277323 77 Kostava St., bld.6, 4th fl. 237 77 77 7 Bambis Rigi St, 0105 Tbilisi 2439025 6a N. Ramishvili St. 2234311 / 12 GMT Plaza, 5th Floor, Freedom Square, Tbilisi Georgia 2234311 / 12 36a Lado Asatiani St, 3rd fl. 2244566, -67, -68 65 Kakheti highway 2919293, 2984950 10 Melikishvili Street 2509 300 44 Leselidze St. 2439375 21a Chavchavadze Ave., 2915003 47 Kostava St, 5th fl, Suite 29 2984039 4 Freedom Square 2988-988 1 Nutsubidze St. 2393138 48B Cholokashvili St 2740740 41 Vaja Pshavela Ave. 239-4417, 239-6911 15 Rustaveli Ave 217 77 77 Tetri Khevi Hesi District, 241091 20 Chavchavadze Ave. 2223520; 2250088 3rd Floor, Besiki Business Center 2935713, 2935695 20 Chavchavadze Ave. 2250010; 2250060 6 Khetagurov St 2430810 5 Jikia St. 2322331 / 2321881 13 Rustavi Ave. 2779200 2171201 34 Chavchavadze Ave 2970 123 19 T. Abuladze Street, 2604454 (admin) 225-2986; 293-2807 (home)

Website www.apmterminals.com www.bp.com www.exxonmobil.com www.pwc.com/ge www.ugt.ge www.abrisdc.com www.aeai.ge www.agh.ge www.avon.com www.bertling.com www.betsyshotel.com www.bah.com www.bat.com www.catoni.com.tr www.caucasiatrading.com www.cu.edu.ge www.ch2m.com www.chemonics.com www.chartisinsurance.com www.deloitte.com www.diplomat.ge www.dlapiper.com www.ey.com www.gau.ge www.gacc.com.ge www.gmt.ge www.greco.ge www.gtgroup.ge www.hbss.net www.hsbc.com www.pepsi.ge www.imedi-l.com.ge www.kpmg.com www.levontravel.ge www.maerskline.com www.magticom.ge www.marriott.com www.microsoft.com www.openrev.com www.pfizer.com

7 Bambis Rigi Str,

2439001, 2752043

www.pmintl.com

154 Agmashenebeli Ave 1 Rose Revolution Sq. 44 Leselidze St, 0105 44 K. Abkhazi St 9 Khvichia St, Saburtalo 7 N. Nikoladze St.

2202222 2402200 2505400-03 2438978 2244141, 2244142 2931211, 2931042-43

www.procreditbank.ge www.radissonblu.com/hotel-tbilisi

20 Telavi St.

2772020

1 Dzmebi Kakabadze 7 Marjanishvili St 6 Marjanishvili St

2921246; 2922945 2272727 2959019

63 Kostava St., inside arch, right 33 Samurzakano St 12a Kazbegi Ave, 0160 Tbilisi 37a Chavchavadze Ave 49b Chavchavadze Ave Meidan Palace, 44 Kote Abkhazi St 3 Pushkin St. 2 Gr. Abashidze St. 1 Ketevan Tsamebuli Ave GMT PLAZA, 4 Freedom Square 42 A. Kazbegi Ave 6 Gorgasali 7 Chavchavadze Ave, 1rd fl 18 Rustaveli 4, Gudiashvili Square 1, 26th May Square, Tbilisi 10a Tashkent St, 0160 Tbilisi 71 Vazha-Pshavela Ave 116 Tsereteli Ave.

2242559 2243773 2922993 2227441 2913152, 2427777 2505353, 243-8999 2444-129, 444-168 2925555 2922922 2241818 2545845 2200606 2444687 2997292 2922491; 2932503 2335519, ext.139 2375715, -16, -17 2480048 599-555533

B

Citadines Apart'Hotel Tbilisi

4 Freedom Square

2547030

B B B B B B B B B B B B B B B B B B B B B B B

Development Solutions LLC Dika Ltd Donut Stop Café Dutch Design Garden EPI (Economic Prosperity Initiative) Project Education & Training International Ltd Geocell GeoEngineering LLC Georgian Airways Georgian Lottery Company LLC GeoCapital Microfinance Organization LTD Globalink Logistics Group Goodwill Gosselin Caucasus & Central Asia Georgia Gvinadze & Partners LLC Holiday Inn HRG Georgia "Sky Travel LLC" IOLI Supermarket Ltd Intourist Palace Hotel JTI Caucasus Kor-Standard Bank, JSC Kutaisi Free Zone, Georgian Int-l Holding Ltd Liberty Bank, JSC

49a Chavchavadze Ave, 3rd fl. 40 Rustaveli Ave 10/12 Abashidze St Agmashenebeli Kheivani 20 km 6 Samgebro Street 4 Kuchishvili St, Vere District 3 Gotua St. 15a Tamarashvili St. 12 Rustaveli Ave 34 Chavchavadze Ave Z.Gamsaxurdia Ave. 19/32.Kutaisi, 4600 14-A Shartava St, 2nd fl, suite 7 1 Parnavaz Mepe Ave. Didi Dighomi, 3rd Micro-region 44 Leselidze St, Tbilisi 0155 1, 26 May Sq., 0171 Tbilisi Meidan palace Business Center 13 Abuseridze-Tbeli St, Tbilisi 11 Ninoshvili St, Batumi, Georgia

B

LPA-Legal Partners Associated LLC

B B B B B B B B B B B B B B B B B B

Madneuli, JSC Mgaloblishvili, Kipiani, Dzidziguri (MKD) Law Firm Mina JSC Navigator Ltd Publishing House New School - International House Oriflame Georgia Overall Management Group (OMG) Inc. JSC "Telefon" Publicis Hepta (ZenithOptimedia) Rakeen Development LLC Rentals Ltd Rompetrol Georgia Ltd SILKNET Statoil Azerbaijan AS Teliani Valley JSC VD Capital LLC Wimm-Bill-Dann Georgia Ltd Wings & Freeman Capital Ltd. Wissol Georgia

3 Ketevan Tsamebuli 6 Shio Mgvimeli St 74 Chavchavadze Ave. 4, Besiki Street, 0108, Georgia,Besiki Business Center,Office No;203 3/5 Kazbegi Street, TBS- 0179 71 V. Pshavela Ave, 4th fl, suite 24 4 Besiki St. 34 Anton Katalikosi St 35 Tskneti Highway, Bagebi 57 Uznadze St 12 M. Javakhishvili St 17 Jorbenadze St. 20 Telavi str 5th fl 46 Rustaveli Ave 39 Navtlugi St. 95 Tsinamdzgvrishvili St The Landmark Building, 96 Nizami Street, Baku AZ 1010 2 Marshal Gelovani Ave 77 Kostava St., village Ponichala Green Building, 6 Marjanishvili 74b Chavchavadze Ave

2241555 2990994 2920921 2530579 995 32 2 438924/25/26 2250945 2770100, ext. 7435 2311788, 2311789 2999730 2649649 995 431 26 70 70 2253262; 2253972 2243673 259-6601/02/03 223-5683 230-0099 243-8958 274-5053 '+995-222-7-55-25 260-4111 250-7700, 250-7711, 223-2997 2555500, ext. 101 (dir), 102 (PA)

American Friends of Georgia American Institutes for Research East West Management Institute, Inc (EWMI) Eurasia Partnership Foundation, The Foundation - Centre for Training and Consultancy (CTC) Georgian Wine Association International Relief and Development, Inc. ISET - International School of Economics at TSU QSI International School of Georgia The Salvation Army

77 Nutsubidze St 42 Abashidze St (Vake), Apt 28 5 Marjanishvili Street 3rd Floor, Tbilisi 29/31/33 Chavchadze tbc bank 2floor 34 Al. Kazbegi Ave., Plot #3 5 Marjanishvili St 66 Paliashvili St 2 sart bina 5 16 Zandukeli St, Village Zurgovani 16 Ikalto St

www.merck.com www.seacorresponse.com www.seaf.com www.sheraton.com/tbilisi or www. sheraton-metechi.com www.mcdonalds.com www.tbcbank.com.ge www.tbsc.ge www.agv-czech.com www.groupaliance.com www.alioni99.ge www.aat.ge www.bagebeycity.com www.bakertillyinternational.com www.bog.ge www.republic.ge www.basisbank.ge www.batumiport.com www.bdo.ge www.beeline.ge www.bgcap.ge www.bgi.ge www.blc.ge www.casinoadjara.com www.cte.ge www.caucasus.net www.mukhrani.com http://www.citadines.com/en/georgia/ tbilisi/freedom_square.html www.ds.com.ge www.dutchdesigngarden.com www.epigeorgia.com www.educatrain.ge www.geocell.com.ge www.geoengineering.ge www.airzena.com www.georgianlottery.com www.globalinkllc.com www.goodwill.ge www.gosselingroup.eu www.gvinadzeandpartners.ge www.hi-tbilisi.com www.hrgworldwide.com www.gastronomia.ge www.intouristpalace.com www.jti.com www.korstandardbank.ge www.kutaisifiz.com www.libertybank.ge

2200203

www.lpa.ge

2474545 2973880, -81, -82, -83 2449981, 82, 83 2923615 2231728 2911064-65-66-67 2436052, 2155555 274-56-72 2933393 2454566, 2996412 2910778, 2910727 2910345 '+994 (12) 4977 340 2313245-48 2363672 2475290 2940051, -52 2915315

www.madneuli.ge www.mkd.ge www.mina.com.ge www.welcome.ge www.newschoolgeorgia.com www.oriflame.com www.publicishepta.com www.rakeen.ge www.rentals.ge www.rompetrol.com www.silknet.com www.statoilhydro.com www.telianivalley.com www.taglaura.ge www.wbd.ru www.wfcapital.ge www.wissol.ge

Non-Profit Organizations

NP NP NP NP NP NP NP NP NP NP

2397174 2290644 2505404 225-39-42/43; 225-27-63/78/82 2206774 2505456 / 57 2224837, 2912327 2507177 2537670 2333786, 2333785

www.afgeorgia.org www.epfound.ge


CMYK

FINANCIAL HEADLINE NEWS & ANALYSIS FINCHANNEL.COM | NOVEMBER 7, 2011

David Lee, PRESIDENT David Lee is the General Director of Magticom, the largest telecommunications operator in Georgia and took up his position March 2004. David is also the Chairman of the Eurasia Partnership Foundation and is a Chartered Accountant with an MBA from Warwick Business School. A Russian speaker, he has worked extensively in the former USSR and served as a Royal Naval Officer for 9 years. R. Michael Cowgill, Vice-President & Treasurer In his 12th. year in Georgia, Michael Cowgill is currently the President and co-founder of Georgian American University’s business and law schools in Tbilisi, Georgia.

John Braeckeveldt, Director John Braeckeveldt arrived in Georgia in 2003 as the General manager for GOSSELIN in the Caucasus region. In recent years John also started up a customs brokerage company, building new European style warehouse in Tbilisi for freight forwarding/storage solutions and customs bonded warehousing for diplomatic goods. Neil Dunn,

Director Neil Dunn is the general manager of BP Georgia since October 2008. He has 30 years of experience in the oil and gas industry, having various engineering and operations assignments.

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US business in Georga

Sarah Williamson, First Vice-President In Tbilisi since June 1998, Sarah Williamson is the co-owner and Vice President of United Global Technologies (UGT), the largest IT company in Georgia.

Irakli Baidashvili, Director Irakli Baidashvili is the Senior Vice President of GMT Group. The company is one of the largest US direct investments in Georgia, the owner of two Marriott hotels, production facility SANTE and several major real estate sites in Tbilisi .

Esben Emborg,

Director Esben Emborg has been in Georgia since 1999. He has worked a General Manager for Caucasus Region for Cadbury Schweppes and Nestle until 2008. Now he is working as Principal Partner for an Investment Fund (SEAF) that is currently managing a 30 mil USD portfolio of investments all over Georgia.

Badri Japaridze,

Director Badri Japaridze has been the Deputy Chairman of the Supervisory Board of TBC Bank since 1999 and the Vice-President of Georgian Glass and Mineral Water Co. (GG&MW) since 1995.

Steve Johnson, Director Steve Johnson is the proprietor of Prospero’s Books and the General Manager of The Hotel Betsy. Prospero’s Books and Caliban’s Coffee House is the leading English language bookstore in Georgia.

Ted Jonas,

Ivo Bakhuijzen, Director Ivo Bakhuijzen spent 9 years in the military, 5 of which as an officer within the airborne infantry; with missions in the former Yugoslavia and Afghanistan. Ivo has been in Georgia since 2008 as the director of Dutch Design Garden, a sister company of the famous Dutch landscape architect Martin Veltkamp.

John Ashworth,

Betsy Haskell,

Founding Advisor Betsy Haskell is an 18 year resident of Georgia who started four successful businesses, and is currently developing a resort hotel and villas in the wine country. For the past 15 years, she has been the Georgia Contractor for Metrica, Inc, a US Treasury Department sub-contractor.

Director Ted Jonas is the Managing Partner of DLA Piper’s Tbilisi office. He advises clients on international business transactions, energy and infrastructure projects, government relations, and dispute resolution.

Ex-Officio Member John Ashworth is the Deputy Chief of Political and Economic Affairs and Senior Economic/ Commercial Officer at the U.S. Embassy. He worked previously in Uzbekistan, Barbados, and on the State Department’s India Desk in Washington.

George Welton,

Exec. Director George Welton came to Georgia as a university lecturer in 2004. Soon after arriving he started working as a professional researcher and founded GeoWel Research in 2008. His company conducts research and analysis for non-profits like KfW, GIZ, UNDP, DfID, CARE International and some private companies.


CMYK

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HEADLINE NEWS & ANALYSIS

FINANCIAL

NOVEMBER 7, 2011 | FINCHANNEL.COM

US business in Georga

Wissol has Joined the AS 24 Network AS 24 will soon be offering its plastic cards to Georgian drivers By TAKO KHELAIA The FINANCIAL

W

issol has become an exclusive partner of AS 24 in Georgia. Truck drivers travelling in the Caucasus will have the opportunity to fill up their tanks at Wissol service stations with the AS 24 network system. AS 24 is a Total Group subsidiary. The company has rapidly established itself as one of the main European suppliers of diesel on the roads. AS 24 is an international network that offers fuel to drivers in more than 26 countries. The company has thousands of clients worldwide. According to Wissol officials, transit truck drivers in Georgia will be able to receive fuel from AS 24 fuel dispensers at Wissol’s stations located in Gori and Batumi. Drivers who have AS 24 plastic cards will now have the opportunity to use the company’s service in Georgia as well. “This project is very important. It’s been two years already since we started partnership with French company Total. Under the frame of this project we are developing the Auto Express network in Georgia where high quality French lubricants and oils are sold. Our partnership together with Total has appeared to be successful and Total since decided to offer for us to be involved in other projects as well. AS 24 is a subsidiary

company of Total,” said Samson Pkhakadze, Chairman of the Wissol Board of Directors. “In cooperation with AS 24, we will serve international clients; transporting companies that are moving in the direction of Europe, entering Georgia and passing through Turkey. We have installed special AS 24 fuel dispensers at our stations. Company clients who have AS 24 cards will have the opportunity to

enter Georgia and fill up their tanks with fuel without paying cash,” Pkhakadze said. According to Pkhakadze partnership with AS 24 is good not just for the company Wissol, but for the country in general. “Wissol is an innovative company. This is the first such service in Georgia that we have implemented together with AS 24. It’s one more success for us. We will remain innovative in the future too,”

Pkhakadze said. “Choosing the company Wissol as a partner was an obvious choice for us. We are an affiliate of the company Total which is already a partner of Wissol in the lubricants business. Total is very happy about this cooperation with Wissol. The main reason why we chose Wissol as a business partner is that this company is a very important, leading company represented in Georgia. We wanted our

One Grand-prize, two Gold, one Silver and 13 Bronze medals ONE GRANDPRIZE, TWO GOLD, ONE SILVER AND 13 BRONZE MEDALS – THESE ARE THE RESULTS OF THE FIRST TRY OF GEORGIAN WINES AND SPIRITS AT HONG KONG INTERNATIONAL WINE AND SPIRITS COMPETITION. GRAND-PRIZE AND ONE GOLD MEDAL WERE SWEPT BY SAPERAVI BARREL SELECT 2006 OF KINDZMARAULIS MARANI AND ANOTHER GOLD WENT TO CHACHA OF CHATEU MUKHRANI.

Silver was obtained by Kakhetian Tsolikauri 2010 of Kakhetian Traditional Winemaking. Three Bronzes went to Sarajishvili spirits, two of each to Khareba Winery and Bagration 1882 (including food matching with Sushi award), each Bronze to Tbilvino, Koncho & Co., Corporation Georgian Wine, Kindzmaraulis Marani, Chateau Mukhrani, Corporation Kindzmarauli. Total number of entries in the competition reached 8,000 this year and out of these, 37 Georgian brands were submitted. The share of Georgian entries in the competition was only 0.46% of total number but the share of medals in wine category achieved 2% in wine and 4% in spirits category. Success of Georgian wines and spirits stood out especially on the background of two Golds won by the US (same result) and one Gold

by Italy. Most Gold medals went to Australian (12) and French (5) wines and spirits. Spirits category was even more competitive, offering only 10 Golds ths year and half of these were swept by Scotland and two by Mexico. France and Sweden received one-tenth of the Gold share each alike Georgia, which was competing with outstanding Chacha of Chateau Mukhrani. The winner of Gold medal, Saperavi Barrell 2006 by Kindzmaraulis Marani has been the main success for Georgia in the competition, winning also the Trophy (Grand prize) among only 20 candidates/ countries competing in the wine category. The submission of entries in the competition was carried out with assistance and professional consultation of Hong Kong Wine Consulting Company (IWC), a partner of the National Investment Agency, which has organized

attendance of 40 Asian traders and importers to Trade With Georgia 2011 – Beverages Tradeshow and B2B Forum to be held on 25-26 November in Tbilisi. The event will be organized by the Georgian National Investment Agency under patronage of Ministry of Economy and Sustainable Development. The results have been announced along with the launch of the Hong Kong International Wine and Spirits Fair (HKIWSF), which is the largest scale and the most prestigeous fair in Asia accomodating about 700 participants and more than 14,000 traders annually. There are seven Georgian companies participating in the fair (Bagrationi 1882, Chateau Mukhrani, Tbilvino, Khareba Winery, Kakhetian Traditional Winemaking, Corporation Georgian Wine, Sarajishvili) and all are coming back home with at least one medal. Hong Kong International Wine and Spirits Competition (HKIWSC) processes over 5,000 entries annually from alcoholic beverage producers worldwide. HKIWSC winners benefit from a year round free advertisement campaign from the organizers. Participation of Georgian companies was initiated and co-funded by the Export Support Service of Georgian National Investment Agency and organized by the Georgian Wine Association. Support for media coverage was kindly attracted by the Embassy of the People’s Republic of China in Tbilisi.

well-known brand to be represented by a strong, leading company. Therefore we chose for Wissol to be our partner in the country,” said Bruno Daude Lagrave, President of AS 24. “We were studying the current processes in Georgia and the investment climate of the country for two years. It was obvious that being associated with Wissol would be the most successful way of implementing the business in the

country’s market,” said Daude Lagrave. According to representatives of AS 24, with the company being represented in Turkey, they saw that demand for truck drivers being able to use AS 24 plastic cards within the territory of Georgia was quite high. “We have a big business in Turkey. While doing business in Turkey we saw that it was necessary to develop our company’s service in Georgia. Flow of goods and trucks between Turkey and Georgia is very important. While looking for business here, it appeared that Georgia is a very business friendly country. It really is easy to open a company here as the rules are pretty clear, you have all the ingredients needed to start up a business,” said Daniel Alvarez, Area Manager South Eastern Europe of AS 24. “We knew that Wissol was the leading company in Georgia. We held negotiations and everything went smoothly as we were dealing with a very professional Wissol team. We are happy that we did what we wanted to do. We have pretty high expectations; many Turkish drivers are coming to Georgia so we really want to take a big share of these Turkish customers and bring them to Wissol stations for the AS 24 service,” Alvarez said “We have high expectations towards this project. We are soon going to offer AS 24 plastic cards to Georgian drivers who will be travelling abroad,” Alvarez said.

INSIGHT INTO THE LIFE OF AN AMERICAN TEACHER IN GEORGIA By MARIAM PAPIDZE The FINANCIAL Anthony Cardwell is one of a number of American teachers to have recently come to Georgia. He lives in Adjara with a Georgian family, speaks a little Georgian and feels thoroughly at home in the country. “The main purpose of my coming to Georgia is to help Georgians achieve what they want. I’ve been teaching American pupils in America and now I’m teaching Georgian pupils as well as American ones. Also, I’m ready to learn lots of things from the local teachers here and to exchange experiences,” said Anthony. His working day begins at 8 o’clock and lasts till very late at night. 3 days and 15 hours in total per week comprise his work here. In addition he gives English lessons to his neighbours free of charge. His day starts as follows: before going to school he has breakfast with his family. A cup of coffee and a piece of Khachapuri is his daily breakfast in Georgia. “I feel as though I am a real member of the family. I love my host family! They treat me like they love me. The best part of being in Georgia for me is my family,” he said. The school is close to his house. It is old but not as bad as he was told it used to be before. The responsibilities he has in Georgia are teaching the English language and about American culture, trying to

influence students in a positive manner and open their minds to the world. “To not just think of Georgia as the world, but that there are different views on how to live, different foods to be eaten,” he said. “It’s very difficult to live in Adjara. After a while, however, you get used to how things are. It’s difficult to find people to spend one’s free time with because Georgian guys just want to drink all the time and the girls aren’t allowed to do anything. Therefore we often leave the villages at the weekend to meet with other Americans. But it’s also nice to see a different way of living. Life is slower here,” added Anthony. He said that Georgia has taught him lots of things - the relationships, hospitality and Georgian language. A year was enough for him to start speaking in Georgian. “I wanted to learn Georgian so I can speak to the people around me. I love travel and when you’re travelling you need to be able to communicate with the locals. So that you can see how they live; understand the way they think,” said Anthony. “Seeing how the family lives here is really nice. Three generations in one household - that’s rare in America. It is nice to see such close-knit families here,” he added. After half a year Anthony will be leaving Georgia. He promises to come back to visit his host family here. “I’ll miss them so much I know. When I go back, I’ll miss the kids - even those cute little rambunctious hooligans I complain about so much!” said Anthony.


CMYK

FINANCIAL HEADLINE NEWS & ANALYSIS FINCHANNEL.COM | NOVEMBER 7, 2011

ONLINE SHOPPING ON US SITES IN GEORGIA ON THE RISE By NANA MGHEBRISHVILI The FINANCIAL The popularity of online shopping on US sites is significantly increasing amongst Georgians. Weekly parcels of about 10-15 tons are delivered to Georgia from the USA via more than 10 transportation companies. Georgians tend to buy mainly clothes and shoes online, but shopping of home appliances or car parts and accessories are quite common as well, claim representatives of transportation companies. The first transportation companies oriented at online shopping were founded 4-5 years ago, but at that period few people knew about the possibilities of shopping in the USA from Georgia. “During this period the service of transportation has significantly developed,” said Nino Tsereteli, Executive Director of USA2Georgia. “Now parcels are delivered much faster and we offer a home delivery service across Georgia as well. It has supported the development of online shopping in Georgia and increased the number of our customers as well.” “Currently we have up to 60,000 customers and we receive 5 shipments weekly,” she added. Georgian customers consider the wrong size or colour of items delivered to them as the main problem with online shopping. To solve this problem some transportation companies already offer a parcel insurance service. “Mistakes aren’t common. But if a customer wants we do offer insurance of the parcels,” said Andro Beroshvili, Director of Global Transporter. “The price of the insurance varies from 1 to 3 percent of the cost of parcel. We have had only a few cases where we have had to pay compensation for a loss.” The general price per kilogram for shipping from the USA to Georgia is 8 USD equivalent in GEL, which is the price offered by USA2Georgia. Global Transporter, however, offers 6 USD per kg for each subsequent parcel. “The majority of our customers tend to buy products within the 300 GEL (170 USD) range as production worth over this limit goes through duties,” Beroshvili said. “The most popular websites for online shopping with Georgians are amazon.com, 6pm.com, eBay. com and urbanog.com etc.” Online shopping in the USA is already quite common among Georgians. A short while ago some transportation companies started shipping from Europe as well. Although the USA still remains the leader in the market. “We are in Europe, but online shopping in the USA is easier and more convenient for Georgians as well as cheaper. All products cost at least 10 percent cheaper in the USA in comparison to Europe,” Tsereteli said. “Apart from the low prices, the USA has a much more convenient internal shipping system which results in a high number of online orders in the USA from Georgia,” Beroshvili added. There are some restrictions on imported products such as food products, easily flammable goods such as perfume, paint and firearms, pornographic production, animals, seeds, bones, fur and products including narcotic substances as well as the coins and banknotes of any country.

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US business in Georga

Marriott Introducing Tbilisi to the World By MARIAM PAPIDZE The FINANCIAL

S

teve Horvath, Area Director Revenue Management Eastern Europe, Marriott Hotel Holding GmbH and Rene Mooren, Area Director of Sales and Marketing, talked to The FINANCIAL about developing their business in Georgia and about developing Georgia’s marketplace. Q. Marriot has 3,500 hotels around the world. Last year the company announced its plans to expand in Georgia and open a third Marriot in Tbilisi. Is the Marriot really going to develop further in Georgia? Rene Mooren: In general, we are looking to double the size of Marriott hotels. When I talk about Marriott I am talking about a multi brand; not just the Marriott hotel, but also the Courtyard by Marriott, Renaissance, and the rest of the brands that we manage. We are probably looking at doubling our size by 2015. That includes all the markets we are active in but also the markets where we are new. We have been active in Georgia for almost ten years and now we are also adding new hotels in a market like Azerbaijan, which is completely new to us. I can’t say at the moment that a third Marriott hotel is soon going to be opened. But it is true that we are looking at additional hotels in Georgia, Armenia, and Azerbaijan, almost all of the Eastern European countries in my area. Q. Mr. Horvath, you have a large amount of experience from working as the General Manager at Residence Inn by Marriott Vancouver. What are the main differences you see between Canada and Georgia in terms of business travel? Steve Horvath: I feel as though I am trying to learn the complexities of business travel in Georgia. The first thing that pops to mind is distribution. Canada is one of the largest countries in the world and we have very few Marriott products across the landscape. In Canada nowadays things are growing aggressively just as they are in Europe. I don’t think it’s specific to Georgia. The number of hotels we have in Canada is bigger than in Georgia. In Canada the economy is linked to the processes in the US. Oil is a big part of economy deals. Everything is different between these two countries - the economy, the conditions. I can’t make too many comparisons, but the first one that comes to mind is the opportunity growth we see in Canada and that which we see in Georgia. Q. As Georgia is a small marketplace, do you believe that there is still sufficient room for development? Rene Mooren: If you ask me what we need in Georgia, in Tbilisi we have to look at the location and look at what sort of

project we need here. Of course we have had some new competitors in the city recently, but I’ll give you one example: we also have in our portfolio long stay brands which are typical products for people who arrive in Georgia for more long-term purposes and would like to stay in the capital. Those rooms are typically bigger, we’re also offering shopping services. That type of product doesn’t exist in the market. We certainly could look into how to edit different hotels and add different projects in Georgia, in Tbilisi. Q. Is there a large number of those who arrive in Georgia for more long-term purposes and would like to stay in the capital? And in general, what is the statistic of guests here? Has their number increased or decreased and by how much? Rene Mooren: I don’t have a number or statistic off the top of my head. But I can truly say that demand has increased here. Tbilisi is the only Georgian city we’re operating in right now. When I compare 2010 to 2011 we are seeing more guests coming to Tbilisi. The demand for a hotel in this place is increasing. Because of this fact, we are staying in Tbilisi and aren’t going to open a hotel in Batumi or another place in Georgia. We are very careful about the location of our hotels. There are so many hotels that have opened in Batumi that I don’t think the opening of a Marriott hotel there would be a good idea. Q. What is the average occupancy rate at Marriott hotels in Eastern Europe? Which country is the most profitable? Steve Horvath: In general, we’re very satisfied with the operational results in the region. We’re doing better than last year in Eastern European countries. It’s hard to compare and say which country is the most profitable. There are so many ways to look at ‘profitable business’. Definitions of the word ‘profitable’ can be so different; it can be defined hundreds of different ways. We are sometimes asked why we have a hotel here. Because it may seem an exotic location no one would ever think of opening a hotel there? And sometimes those hotels do very, very well for us. In big cities, big centres, a profit opportunity perhaps isn’t

as great. We need to have hotels in both sorts of places. Q. What are the current trends in business and leisure tourism? How are the Marriott hotels expected to change in the coming years? Rene Mooren: We are happy to see that people are travelling a bit more both on the business travel side and leisure travel side. We see that people instead of long vacations far away are

building, it was completely destroyed in the past. The Marriott, together with investors, brought back a very nice hotel setting new standards in the city and bringing life back to this fantastic building. I think this is a huge contribution that we have made to Tbilisi. The Marriott helped increase tourist numbers. When people don’t know a country, but know that we have a hotel there, they

Two of the best hotels in Tbilisi, the 5 star Marriott Tbilisi and the Courtyard Marriott are located in the heart of the city’s cultural, business and commercial centre, only walking distance from the Parliament, Museums, State Opera House and Rustaveli Theatre. going for many more short trips, so called City Breaks. It has turned more specifically to our area that people also want to discover more unknown, maybe new destinations. We all know London and Paris, but more and more people are going to Eastern European destinations. Even in Georgia we are seeing an increase in leisure tourism compared to last year. This isn’t only good for us, but for the economy of the country as well. Q. How much is the guest satisfaction index here in Georgia? Has it increased or not? Rene Mooren: In Tbilisi guest satisfaction is at one of the highest levels in comparison to in other Eastern European countries. The guest satisfaction index is impacting the service we’re providing. Of course there are problems in our service too. We are human beings and problems can always occur. But our goal is to try and solve them. First of all, you need to statistically find out what the most frequent problems are. Then the team should decide how to avoid them. This is the role of the satisfaction index. As we have an international audience, the guest satisfaction index is almost the same in every country in this region. Moreover, I don’t see a difference in Marriott guests in general. Q. What changes caused the entrance of Marriott on the Georgian market? Rene Mooren: You can look at this issue in different ways. Again, when you look at this

think: “There is an American hotel, so there must be a reason to go, let’s check it out, let’s go!”. This is one way that the Marriott is impacting on leisure tourism in Georgia. The other thing is that when we make advertisements of our hotel in Georgia, we don’t only promote the Marriott hotel, but the whole city as well. Tourists first choose a destination and then choose a hotel. If we want tourists to come to the Tbilisi Marriott hotel, first of all we need tourists to choose to visit Tbilisi. It’s additional money that we spend, to promote the destination and this is directly helping tourism to develop. These are two ways that we are trying to develop tourism in Georgia. Steve Horvath: When a tourist is going to travel and discovers that Marriott Hotels are in those places that he/she wants to go to, it makes their decision to visit the area easier. But just to let them know where Marriott hotels are, we need to promote these countries. This is a chain reaction. Q. Do you think that the entrance of the Marriott brought businessmen and investments to the country? Rene Mooren: Honestly, I don’t think that a business traveller chooses to go to Tbilisi just because there is a Marriott there. We aren’t the purpose for a visit. There is a business reason why you need to go to Tbilisi. We just give them a place to stay here. I would love to hear businessmen say, let’s go to Tbilisi because

there is a Marriott there. I would be so proud, but I don’t think that’s the case. The business purpose is the purpose of visiting Tbilisi or the surrounding area. One way we could bring additional business here is that when we brought the product here, it hadn’t previously existed. Then other hotels came to the Georgian market, because they saw that it was possible to invest in the Georgian market. Q. What was the influence on the Marriott’s operations after international hotel brands entered the Georgian market? Steve Horvath: We watch each other very closely - who is opening a hotel and where. We’re all competitive. We have competitors and when we see our competitors going into a market no one else has gone to, it raises interest and they have the desire to go there too. Everyone is looking for growth. Demand isn’t going down in the market. This is very positive whilst the market is getting larger. In spite of having new competitors to compete with we also have new opportunities, because demand is continuing to rise. Q. What constant growth do you see in Marriott’s work here each year compared to the previous ones? Steve Horvath: Basically, we are looking for growth opportunities, new hotels, and new markets. Together with our owners and franchises, we’re taking the Marriott to a new level of global growth, launching innovative new brands, expanding in emerging markets and solidifying our position as a world-class hospitality company. Q. To bring more and more tourists to Georgia political and economic stability and development are vital. Please could you assess this situation? Rene Mooren: If there is no political or economic stability in the country, that would be negative for the country and for us as well. We’re not into politics, but everything which helps us to make it easier to travel to Tbilisi is helping us. We could of course voice our opinions in the discussions. We are experts in the hospitality business, we aren’t politicians but we can give our input in comments about the things we think will help.


CMYK

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NOVEMBER 7, 2011 | FINCHANNEL.COM

stock market

Capital Markets Watch Company

Georgia market comment By Akaki Gelashvili

Last week on the London Stock Exchange Bank of Georgia (BGEO LI) share price decreased and was traded in the range of US$ 11.61-12.75, while trading volume decreased to around 25’000 shares for the week. In the debt world, Georgian Railway (GRAIL) and Georgia Sovereign (GEORG) Eurobonds price remained almost unchanged. On the Georgian Stock Exchange Bank of Georgia (GEB GG) and Liberty Bank (BANK GG) shares changed hands during the week closing at GEL 19.95 (up 8%) and GEL 0.025 (down 6%), respectively, while benchmark BGC Index rose by 6%.

GEORGIA TOP NEWS Georgia’s inflation continues to decline in October Inflation in Georgia further slowed to 2.3% y/y in October from 4.6% in

International Market Comment By Jathan Tucker

$20 each, above an initial range of $16 to $18.The debut of the threeyear-old company, which sells Internet coupons for everything from spa treatments to nose jobs, is one of this year’s most closely watched. Its tiny float represents just above 5 percent of the company and helped drive up demand and price. At $12.8 billion, Groupon commands a price tag more than twice what Google offered to buy the company last year. Italy accepts IMF monitoring

Markets in Europe edged higher Friday on relief that Greece will not hold a referendum on its latest rescue deal, which would have endangered Europe's crisis-fighting efforts. The calm state of markets represents a huge contrast to the wild swings earlier last week, when George Papandreou on Monday stunned everyone by calling the referendum. His plan stoked investor fears of a disorderly Greek debt default and the country's possible exit from the eurozone. Pressure from France and Germany, and an apparent concession from Greece's main opposition party to back the elements of last week's euro130 billion rescue deal, saw Papandreou shelve the referendum pledge. That drove markets higher, with momentum carrying into Friday, though uncertainties over Greece remain. US Stocks fell at open on Friday as an uncertain outcome of Greece's sovereign debt crisis and a mixed report on the U.S. labor market kept investors nervous.

TOP INTERNATIONAL NEWS Groupon raises $700 million in biggest Internet IPO since Google Groupon Inc raised $700 million after increasing the size of its initial public offering, becoming the largest IPO by an Internet company since Google Inc raised $1.7 billion in 2004. The global leader in “daily deals” is now valued at almost $13 billion after saying it increased the offering by 5 million shares to 35 million in total and pricing them at

FINANCIAL

HEADLINE NEWS & ANALYSIS

Italy, under fierce pressure from financial markets and European peers, has agreed to have the IMF and the EU monitor its progress with long delayed reforms of pensions, labor markets and privatization, senior EU sources said last week. Prime Minister Silvio Berlusconi, his government close to collapse after more loyalists defected last week, agreed to the step in late-night talks with euro zone leaders and U.S. President Barack Obama on the sidelines of a G20 summit in Cannes, France. The Italian move came after Greece stepped back from a proposed referendum that could have triggered its exit from the euro area and agreed to seek national consensus in support of a 130 billion euro ($178 billion) new bailout program. Starbucks 4Q profit up 29 percent Starbucks Corp. reported last week that its fiscal fourth-quarter profit jumped nearly 29 percent and beat Wall Street estimates on strong sales around the globe. The coffee company has been a standout among its peers in the tough global economy because consumers have started indulging in more small luxuries like lattes. It has also expanded overseas, increased the number of products it offers and upped its presence in grocery stores and other retailers to help drive growth. “Starbucks Coffee Company has never been stronger or better positioned for sustained, profitable growth than it is today,” Starbucks CEO said Howard Schultz said. The company reported that it earned $358.5 million, or 47 cents per share. That’s up from $278.9 million, or 37 cents per share, last year. Revenue rose 7 percent to $3 billion, with some benefit from foreign exchange rates. Starbucks is facing a number of challenges from the drag of a weak economy on its customers to higher costs it’s paying for commodities such as coffee and milk. But strong sales offset these pressures.

Last traded 616,4 2-Nov-11 69,6 2-Nov-11 28,5 4-Aug-10 6,4 3-Aug-11 35,5 30-Sep-11 17,6 12-Oct-11 81,1 23-Apr-10

Ticker

MCap

Bank of Georgia GEB Liberty Bank BANK VTB Bank Georgia UGB Teliani Valley WINE Caucasus Energy & Infr. NRGY United Telecom of Georgia UTC Telasi AEST

September as monthly CPI slipped -0.2%. Transportation service was the key CPI driver with a contribution of 1.6ppts to headline inflation while food contributed nearly 0.7ppts.

The Government expects 2011 real GDP growth to reach 6.0% The Government of Georgia officially upgraded its real GDP growth forecast to 6.0% from the initial 5.5%. PM Nika Gilauri noted that depending on the results of the 4Q11, there is a possibility for upward adjustment.

Capital Market Watch exclusively provided to The FINANCIAL by BG CAPITAL

Bid

Ask

19,000 0,025 0,100 0,100 1,000 0,170 0,500

19,500 0,026 na 0,200 1,200 na na

Avg. Chg. Chg. Vol. GEL 52w High 52w Low (1d,%) (YTD,%) price 19,672 808 6,2% -43,8% 35,500 18,530 0,025 63 846 -5,4% -27,6% 0,150 0,025 0,200 529 300,0% -86,7% 0,000 0,000 0,120 1 819 -14,3% -40,0% 0,200 0,120 1,400 4 6,9% 3,7% 1,400 1,200 0,170 1 150 0,0% 0,0% 0,170 0,145 1,000 300 0,0% 42,9% 0,000 0,000

Georgia, Russia reached a WTO deal Last week Georgia and Russia reached a deal in Swiss mediated WTO talks, which will cover trade between the two countries. The mediators hired a private company which will monitor trade at several points – two of them in breakaway regions of Abkhazia and South Ossetia. Moreover, an independent company will audit data on trade between the countries. It was also noted that all the technical details and procedures for signing of the bilateral agreement with Russia should be finalized before November 10.

TEVA US

Top bank’s recommendations Target Price

Recommendation

Barclays Capital

55

overwt/positive

27

81,8%

Citi

64

buy

HOLD

6

18,2%

hold

SELL

0

0,0%

44

459

459

Wed 02/11

Thu 03/11

Fri 04/11

455 450 445 440 434

434

435 430 425 420 Mon 31/10

Tue 01/11

Source: GSE

42,5

41,8

42,0

41,0

41,540,9 41,0 40,5

39,8

40,0 39,1

39,5 39,0 38,5 38,0 37,5 Mon 31/10

Tue 01/11

Wed 02/11

Thu 03/11

Fri 04/11

Market data Current price, US$ Mcap, US$ bn Net Debt, US$ bn EV, US$ bn Free float, % Free float, US$ bn Common Shares outstanding, mn Change from 52w low % Change from 52w high % 1M change, % 3M change, % 12M change,%

41,0 38,5 na na 96,7 37,3 941,1 17,0% -28,3% 14,2% -0,8% -19,4%

Multiples and per-share data Consesus Rating BUY

Goldman Sachs Credit Suisse

459

460

Technology| International

Company description: Teva Pharmaceuticals Teva Pharmaceutical Industries develops, manufactures and markets generic and branded pharmaceuticals and active pharmaceutical ingredients. The company produces antibiotics, oncological products, Alpha D3 for the treatment of post-menopausal bone loss in women, Copaxone for the treatment of multiple sclerosis, and other drugs for diseases of the central nervous system. Analysts’ view Overall, while management modestly lowered 2011 guidance, the company’s revised range was roughly in line with analysts’ expectations. Looking ahead, analysts see an inflection point in Teva’s generics business as well as in sentiment on the shares beginning in 4Q, with the launch of Zyprexa and a more diversified growth profile moving forward. Recent news Consumer products maker Procter & Gamble Co and Israeli drugmaker Teva Pharmaceutical Industries Ltd last week gave details of a joint venture they have created to sell over-the-counter medicines. The joint venture, which was initially announced in March, will combine Teva’s expertise in drug marketing with P&G’s expertise in branding to expand their presence in the $200 billion consumer healthcare industry. The venture will be known as PGT Healthcare and the companies said in a statement it “will focus on best-in-class development and state-of-the-art commercialization of branded OTC medicines.”

Deutsche Bank

465

AAPL US

Pharmaceuticals | International

ANR

Georgia (GTI GSE Index, GEL)

neutral/attractive outperform

Average Target Price

54,3

2010 na na 3,2 9,7 na na na

P/E P/B EV/Sales EV/EBITDA EPS DPS BPS

Source: Bloomberg

2011E 8,3 1,5 2,4 7,6 5,0 0,9 27,4

2012E 7,2 1,3 1,9 5,7 5,7 1,0 31,7

Source: Bloomberg

Commodities and FX Oil

Gold

94,5

94,1

94,0

US dollar / EUR 1 764

1 770

94,0

1 760

93,593,2

1 750

1,390 1 749

1 739

92,5

1 730 1 715 1 720

92,2

92,5 92,0

1,382

1,380

1 740

93,0

1,386

1,385 1,375

1,375

1 720

1,372

1,370

1,370

1 710

91,5

1 700

91,0 Mon 31/10

1 690 Mon 31/10

Tue 01/11

Wed 02/11

Thu 03/11

Fri 04/11

1,365

Tue 01/11

Wed 02/11

Thu 03/11

Fri 04/11

1,360 Mon 31/10

Tue 01/11

Wed 02/11

Thu 03/11

Fri 04/11

Brent crude extended gains for a second day on Friday to above $111 a barrel after a drop in the U.S. jobless rate combined with Greece's decision to drop a referendum on a European Union bailout to ease fears about the economy.

Gold fell after a rally in the euro ran out of steam, but the price was still on track for a second weekly rise, helped by investor demand in the face of political turmoil in Greece that threatened the future of the euro zone.

The dollar extended losses against the euro on Friday after data showed the U.S. economy created far fewer jobs than expected in October.

Emerging Markets (MSCI EM Index, US$)

S&P

Ukraine (PFTS Index, UAH)

1 000995

1 270

995

1 2601 253

990

1 250

985

977

980 975

565560

1 261

560 1 239

1 238

1 240 974

1 230

969

545 1 218

540 535

965

1 210

530

960

1 200

525

955 Mon 31/10

1 190 Mon 31/10

Tue 01/11

Wed 02/11

Thu 03/11

Fri 04/11

549

550

1 220

970

553

555

Tue 01/11

Wed 02/11

Thu 03/11

Fri 04/11

520 Mon 31/10

536

535

Tue 01/11

Wed 02/11

Thu 03/11

Fri 04/11

Capital Market Watch exclusively provided to The FINANCIAL by BG CAPITAL CONTACTS: You can find more information regarding investment opportunities in BG Capital and Bank of Georgia Wealth Management brand new product – Top Investment Ideas. The product offers insight into hot stocks and provides a brief description and general market expectations for 11 international, 4 Georgian, and 4 Ukrainian companies. Giorgi Shengelia | Sales and Trading | +995 32 2444 690 | gshengelia@bgcap.ge | www.bgcapital.ge


CMYK

FINANCIAL HEADLINE NEWS & ANALYSIS

15

FINCHANNEL.COM | NOVEMBER 7, 2011 TBC BANK TBILISI BRANCHES Tbilisi #9 Service Center in Zahesi (Customs Terminal) 0125, 105 A, Mshvidoba St. Vake Branch #1 0179, 41, Abashidze St. Central Branch 0179, 11, Chavchavadze Ave. Chavchavadze Branch #1 0179, 29/31/33, Chavchavazde Ave Vera Branch 0179, 31, Melikishvili St. Parliament Service Center 0118, 8, Rustaveli Ave Mtatsminda Branch 0105, 1, Rustaveli Ave. Rustaveli Service-Center 0108, Marriot hotel Rustaveli Branch #1 0108, 44, Rustaveli Ave. Mtatsminda Branch #2 0105, 22, Leselidze St. Rustaveli Branch #2 0105, 52, Rustaveli Ave. Avlabari Branch #1 0103, 2, Ketevan Tsamebuli Ave. Varketili Branch #1 Javakheti St. Isani Branch 0120, 67, K. Tsamebuli Ave. Vazha-Pshavela Branch #2 0186, 73, Vazha-Pshavela Ave. Vazha-Pshavela Branch #1 0160, 11, Vazha-Pshavela Ave Saakadze Branch 0160, 6, Shartava St. (Saakadze Sq.) Saburtalo Branch 0160, 12, Al. Kazbegi Ave. Tbilisi Central Service Center 0112, Vagzali Sq. 2 Agmashenebeli Branch #1 0102, 138, Agmashenebeli Ave. Marjanishvili Branch #2 0102, 16, Marjanishvili St. Tamar Mepe Branch 0112, 7, Tamar Mepe Ave. Head Office & Marjanishvili Branch 0102, 7, Marjanishvili St. Tsereteli Branch #2 0119, 73a, Tsereteli Ave. Didube Branch 0119, 117, Tsereteli Ave. Digomi Branch in shop («My House») 0131, Agmashenebeli Alley, 12th km, furniture shop «My House» Digomi Branch in “Goodwill” 0131, 1, Parnavaz Mepe Ave. (Hypermarket Goodwill) Nadzaladevi Branch 0180, 109, Dadiani Ave. Gldani Branch 0172, Mukhiani Settlement, Plot 1/6 Tbilisi Airport Service Center 0158, Tbilisi National Airport

TBILISI ATMS Vazisubani Vazisubani III dstr., II Blk. Sanzona 50, Guramishvili Ave. Nikora Store Vake 11, Chavchavadze Ave. Vake Branch 1, Tamarashvili St. Pharmacy “36.6” 34, Chavchavadze Ave. Trading Center “Pixel” 7, Kipshidze St. 41, Abashidze St. Vake Service Center #1 29, Chavchavazde Ave. TBC Bank Branch 59, Paliashvili St. “Simba” Supermarket 50, Chavchavadze Ave. 15, Phaliashvili St. Aversi Pharmacy Vera 7, Kostava St. 36, Kostava St. Cinema “Amirani” 8/1, Akhvlediani Ave 18, Melikishvili St. 60, Barnovi St. “Fresh Market” 31, Melikishvili St. TBC Bank branch Mtatsminda 13, Rustaveli Ave. Hotel «Tbilisi Marriot» 11, Rkinis Rigi Acura Billiard Room 5, Rustaveli Ave. Rustaveli Cinema 4, Freedom Square 22, Leselidze St. TBC Bank branch 52, Rustaveli Ave. TBC Bank branch 44, Rustaveli Ave. TBC Bank branch 1, Rustaveli Ave. TBC Bank branch Avlabari 84, K. Tsamebuli Ave. 2, K. Tsamebuli Ave. TBC Bank branch Navtlugi 2, Cholokashvili St. “36.6” Pharmacy Varketili 34a, Kakheti Highway 44, Javakheti St. (Varketili Metro) Varketili 3, 4th m/r. Javakheti St. TBC Bank branch Isani-Samgori 39a, Moscow Ave. 169, Khmelnitski St. Supermaket “Isani” subway station 67, K.Tsamebuli Ave. TBC Bank branch Saburtalo 40, Vazha Pshavela Ave. ESM Tbilisi 67, Vazha Pshavela Ave. «Nikora» Shop 68, Kostava St. Public Television Building 22, Bakhtrioni St. 53, Saburtalo St. Nikora store 12, Al. Kazbegi Ave. At Saburtalo Branch 74, Kostava st. Shop “Caesar” Z. Zhvania Sq., 45, Gamsakhurdia Ave. “PSP” Pharmacy 1, Nutsubidze St. 52, Vazha-Pshavela Ave. Mobi Shop Riverside named after H. Aliev At Wissol gas station Turn at 4th Plateau of Nutsubidze 179, Nutsubidze St. “PSP” Pharmacy 26, Kazbegi Ave. Shop “Planeta Z” Vazha-Pshavela V Blk, 4 Bld. 29, Gamsakhurdia Ave. Shop “Okaidi” 6, Shartava St. 4, Gamsakhurdia Ave. 11, Vazha-Pshavela Ave TBC Bank Branch 11, Mitskevichi St. Supermarket 29b, Kazbegi Ave. 73, Vazha-Pshavela Ave. TBC Bank branch 11/5, Dolidze St. Supermartket “Mango” Chugureti 39, Chitaia St. Aversi Pharmacy 7, Marjanishvili St. Marjanishvili branch 19 Tsabadze St. Trade center «Pasazhi» 8, Tsabadze St. Trade center «Kidobani» 4, Khetagurov St. Humana Pharmacy 16, Marjanishvili St. TBC Bank branch 4, Chubinashvili St. Aversi Pharmacy Didube 73a, Tsereteli Ave. At #2 Didube Branch 114, A. Tsereteli Ave. «Coca-Cola» 117, Tsereteli Ave. At Didube Branch

82, Tamar Mepe Ave. “MedService” Pharmacy 1, Tsereteli Ave. Trading Center “Panda” 7, Tamar Mepe Ave. TBC Bank branch 138, Agmashenebeli Ave. TBC Bank branch 12, Kereselidze St. “Megaline” Trading Center Digomi Digomi District 3/2 Digomi District II BLK. Building 7 Digomi District, 3rd blk. D. Agmashenebeli Alley “Lukoil” Gas station Didi Digomi Entrance of Didi Digomi Trade center GOODWILL 12th Km, Agmashenebeli Alley. Shop “Chemi Sakhli” Nadzaladevi 106, Ts. Dadiani Ave. Nadzaledevi Branch 321, Ts. Dadiani Ave. Aversi Pharmacy 144, Ts. Dadiani Ave. Supermarket Temka Temka, 10th Block, BLD. 2. Gldani Gldani District 1st blk. Supermarket “Bingo” Akhmeteli Metro Trading Center “Mariami” Mukhiani Settlement, Plot 1/6 TBC Bank branch Mukhiani Mukhiani III MKR, Dumbadze Ave., BLK.5a Mukhiani II M/R, Noneshvili St., BLk. 5 “Red A” Pharmacy Avchala 3, Sarajishvili St. “Alfa Express” Ortachala 39, V. Gorgasali St. 28, Gorgasali St. Airport Tbilisi International Airport

REGIONAL ATMS Samtredia 5, Chavchavadze S. Lagodekhi 1, Cholokashvili St. Beko Zestaphoni 39, Agmashenebeli St. Natakhtari Natakhtari Brewery Tsnori 2, Stalin St. Zugdidi 32(30) Z. Gamsakhurdia Ave. TBC Bank branch Gori 13, Stalin Ave. TBC Bank branch Bakuriani 26, Agmashenebeli St. Pharmacy “Red A” Gudauri Bar “Gagieti” Sighnaghi 1, Lolashvili St. TBC Bank Branch Agara 1, Cholokashvili St. Mtskheta 11a, Samkhedro St. Shop “Nikora” Kobuleti 500 a, Agmashenebeli St. Rustavi 14, Megobroba Ave. Rustavi Branch 19, Rustavi Highway, bld. 2 Aversi Pharmacy M.I.A. Service Agency 12/14, Meskhishvili St. Supermartket 15, Kostava St. “Aversi” Pharmacy Telavi 27, Rustaveli St. Telavi Branch 3, K. Tsamebuli St. Shop “Limbo” Borjomi 121, Rustaveli St. TBC Bank branch Kutaisi 59, Tamar Mepe St. 21a, Chavchavadze Ave. 98, Youth Ave. 3, Automsheni St. 47/1-3 Agmashenebeli Ave. and Dumbadze St. crossroads 1, Nikea St. “Nikeos” Supermarket 35/1a, Paliashvili and Columbia Missouri St. TBC Bank branch 14, Grishashvili St. Pharmacy 62, Chavchavadze Ave. TBC Bank branch Batumi 44, Chavchavadze Ave. Nikora Store 37, Zubalashvili St. TBC Bank branch 78/80 Javakhishvili St. 63, M. Abashidze St. 14a, Inasaridze St. 30, Agmashenebeli St. 57/59, Era St. TBC Bank branch 10, Rustaveli St. TBC Bank branch Khelvachauri 21a, Agmashenebeli St. Poti 22, D.Agmashenebeli St. 13 Lagrange St. Nikoladze Square. 18, Samegrelo St. 15/3 Gegidze St. TBC Bank branch

BANK OF GEORGIA TBILISI Mtatsminda-Krtsanisi 3 Pushkin Str. 4 Leselidze Str. 38 Tabukashvili Str. 7 Pushkin Str. 1 Vekua Str. 3 Pushkin Str. Vake-Saburtalo 24 Kostava Str. 29 Vazha-Pshavela Ave. 7 Kipshidze Str. 14 Gamsakhurdia Ave. 22 Bakhtrioni Str. 72/12 I.Abashidze Str. 70 Kostava Str. Sheraton Metheki Palace 10 Melikishvili Ave. 62 Chavchavadze Ave. Mtatsminda-Krtsanisi 8 Rustaveli Ave. (Parliament) 38 Tabukashvili Str. 19 Rustaveli Ave. 4 Freedom Square (Courtyard Marriott) Metro Station “Tavisuplebis Moedani” Metro Station “Rustaveli” 3 Vekua Str. (Populi City) 37 Gorgasali Str. Ortachala Radisson SAS Iveria Hotel Isani-Samgori 10 Ketevan Tsamebuli Ave. 80 Ketevan Tsamebuli Ave. 7 Kalaubani Str. Airport Metro Station “Avlabari” Metro Station “300 Aragveli” Metro Station “Samgori 1” Metro Station “Samgori 2” Metro Station “Varketili” Metro Station “Isani” Temqa Block 10, Bulding 25 44 Moskovi Ave. Vazis ubani block 4 (“Populi”) Vake-Saburtalo 41 Vazha-Pshavela Ave. 23 Chavchavadze Ave. 70 Kostava Str.

16 Gamsakhurdia Ave. 7 Petritsi Str. Melikishvili Str. 10 Gldani-Nadzaladevi 39 Tsotne Dadiani Str. 5 Tornike Eristavi Str. (“Electroplast”) Shopping Mall “Mariami”, Gldani Metro Station “Akhmeteli” Metro Station “Grmagele” Metro Station “Nadzaladevi” Metro Station “Sarajishvili” Metro Station “Guramishvili” Mukhiani, Block 4, Bulding 4 34 Tsotne Dadiani Str., Bulding 8 Metro Station “Elektrodepo” Vake-Saburtalo 1a Bulachauri Str. Metro Station “Politeknikuri Instituti 1” Metro Station “Politeknikuri Instituti 2” Metro Station “Vazha-Pshavela” Metro Station “Sameditsino Instituti 1” Metro Station “Sameditsino Instituti 2” Didube-Chugureti 99 Tsereteli Ave. 18 Tamar mefis Ave. 60 Tsereteli Ave. 83/23 Davit Agmashenebeli Ave. 142 Davit Agmashenebeli Ave. 19 Tsabadze Str. (“Pasazhi”) 12 Kereselidze Str. 1st turn (“Megaline”) 137 Tsinamdzgvrishvili Str. 127 Davit Agmashenebeli Ave. Metro Station “Vagzlis Moedani” Metro Station “Vagzlis Moedani 3” Metro Station “Tsereteli” Metro Station “Didube” Metro Station “Marjanishvili” 3 Vagzali Str. Gldani-Nadzaladevi Gladni 1 Vekua Str., Block “a” 38 Guramishvili Ave. Batumi 58 Memed Abashidze Str. 18 Zubalashvili Str. 11 Ninoshvili Str. (Hotel “Intourist Palace”) Ozurgeti 18 Guria Str. Zugdidi 90 Rustaveli Str. 54 Kostava Str. Poti 30 Davit Agmashenebeli Str. 2 Parnavaz Mepe Str. Kutaisi 17 Tsminda Nino Str. 1 Tsereteli Str. 56 Chavchavadze Str. 124 Rustaveli Str. Tskaltubo 11 Avaliani Str. Tkibuli 55 Gamsakhurdia Str. Terjola 4 Shotadze Str. Chiatura 16 Ninoshvili Str. Gori 14 Stalini Str. Bakuriani 1 Mta Str. Khashuri 2 Dzneladze Str. Akhaltsikhe 25 Kostava Str. Rustavi 8 Baratashvili Str. 10 Megobroba Str. 23 Kostava Str. Tetritskaro 37 Tamar Mepe Str. Tsalka 71 Kostava Str. Marneuli 65 Rustaveli Str. Gardabani 76 Davit Agmashenebeli Str. Bolnisi 110 Sulkhan-Saba Str. Gurjaani 12 Noneshvili Str. Zestaponi 59 Agmashenebli Str. Senaki 78 Chavchavadze Str. Kvareli 34 Chavchavadze Str. Kobuleti 1 Ninoshvili Str. Akhalkalaki 35 Nalbandiani Str. Telavi 6 Chavchavadze Str. Kaspi 78 Stalini Str. Batumi Airport 21 Agmashenebi Str. Signagi 15 9 Aprili Str. Poti Kokaia Alley 1 Str.(Customs “Dasavleti”) Gori 3 Stalini Str. (Populi) Kutaisi 143 Rustaveli Str. (Populi) Khelvachauri 82 Agmashenebi Str. Sagarejo 17 Agmashenebeli Str. Batumi 10 khimshishvili Str. (Hotel “Marina”) Borjomi 1 Rustaveli square Samtredia 21 Javakhishvili Str. Khulo 16 Abashidze Str Batumi 3 Settlement Tamari Tskneti 3 Rustaveli Str. Mtskheta 12 Samkhedro Str. Lanchkhuti 101 Zhordania Str. Sachkhere 4 Agmashenebeli Str. Keda 13 Tbel Abuseridzis Str. Batumi 58 Memed Abashidze Str. Gardabani Martkopi (Vaziani) Gori 43 Samephos Str. Kaspi 2 Farnavazis Str. “Kaspicementi” Rustavi 70 Mshenebelta Str. “Rustavcementi” Tbilisi Kakheti Highway 112 km. (Lilo) Holiday Inn Hotel Batumi Rustaveli Str. 28 “Batumi Sheraton” Rustavi Tsiteli Khidi Highway 21 km

ATM’S TBILISI Vake 8 Mtskheta Street 12 eristavi street 72/12 Abashidze Street 48 Chavchavadze Avenue 22/23 Chavchavadze Avenue 22/23 Chavchavadze Avenue 62 Chavchavadze Avenue 50 Chavchavadze Avenue 52 Chavchavadze Avenue 22 Chavchavadze Avenue 78 Chavchavadze Avenue 7 Kipshidze Street 9a nafareuli street 13 Kipshidze Street 2 Berdzenishvili Street 41 abashidze street 81/9 Abashidze Street 3 Tamarashvili Street Tamarashvili Street 16 Phaliashvili Street Tskneti 3 Rustaveli Street 2 Rustaveli Street Saburtalo 67 Vazha-Pshavela Avenue 41 Vazha-Pshavela Avenue 41 Vazha-Pshavela Avenue 2 Vazha-Pshavela Avenue 27b Vazha-pshavela avenue 27a Vazha-Pshavela Avenue 17 Vazha-Pshavela Avenue 27 Vazha-Pshavela Avenue 72 Vazha-Pshavela Avenue Vazha-Pshavela Avenue, II Block 35/37 Shartava Street

georgian banks 7 Shartava Street 21 Dolidze Street vakhushti bridge Saakadze square Samedicino Vazha-Pshavela Politeqnikuri 1 Politeknikuri 2 17a Saburtalo Street 37 Saburtalo Street 70 Kostava Street 70 Kostava Street 26 maisi street 1 26 May square Kostava Street 44 Khazbegi Avenue 10 Khazbegi Avenue 13 Khazbegi Avenue 14 Khazbegi Avenue 12 Khazbegi Avenue bagteriofagi 8 a mitschkevichi street 19 Gamrekeli Street 23 kandelakis street 43 Gamsakhurdia Avenue. gagarini 16 Gamsakhurdia Avenue 2 Gamsakhurdia Avenue 14 Gamsakhurdia Avenue 1a Bulachauri Street 3 mk.2 kv. Nucubidze 175 Nutsubidze Street 221 Nutsubidze Street 25 nutsubidze street Nutsubidze plato III mr. II kv 1 Sandro Euli Street 13 Bakhtrioni Street 22 Bakhtrioni Street 6 Phanaskerteli Street 16 Chikovani Street 25 Kavtaradze Street 4 Gabashvili Street 5 Jikia Street Mtatsminda 2 Freedom Square mtawminda square 3 Pushkin Street 3 Pushkin Street 3/1 Pushkin Street 3 Pushkin Street Tavisuplebis Moedani 7 Pushkin Street 4 Freedom Square 12 Chanturia Street Rustaveli 16 Rustaveli Avenue 8 Rustaveli Avenue 19 Rustaveli Avenue 37 Rustaveli Avenue 2 Leonidze Street 22 Leselidze Street 4, Leselidze Street 38 Tabukashvili Street 2 Baratashvili Street 7 Ingorokva Street GTC 8 Erekle II Street 13 Savteli Streer 20 Akhvlediani street 1 Vekua Street 40 Khetagurovi street rose squire rose squire Vera 28 petriashvili street 25 Kostava Street 24 Kostava Street 44 Kostava Street 1 Khorava Street 10 Kekelidze Street 8 Kuchishvili Street 50 Gogebashvili Street 13 Melikishvili Street 10 Melikishvili Street 10 Melikishvili Street Gldani-Nadzaledevi 2 gudamakhari street Gldani V m/r Block14 Gldani III m/r 2 Khizanishvili Street 2 Dadiani Street 7 Dadiani street 34 Dadiani Street 151 Dadani Street 21 Sarajishvili Street Sarajishvili Grmagele Guramishvili 38 Guramishvili Avenue 33a GuramiSvili avenue 84 Guramishvili Avenue 7 Guramishvili Avenue 84 Guramishvili Avenue Peikrebi street Mukhiani, IV m/r, 4 block Dumbadze str IV m/r, Block 5 Nadzaladevi Nadzaladevi metro Square 15 Khizanishvili Street 31 Khizanishvili Street metro axmetelis mimdebare. mariami metro axmetelis mimdebared 1 Vekua Street 1 Vekua Street Akhmeteli Temka 10 Kv, Block 25 Temka samshobiaro saxli # 5 mimd 34 Khosharauli Street Didube-Chugureti 8 tsabadze street 17 Uznadze Street 1 Tsereteli avenue 60 Tsereteli Avenue 55 Tsereteli Avenue 95 Tsereteli Avenue 110 Tsereteli Avenue 99 Tsereteli Avenue 118 Tsereteli Avenue 118 Agmashenebeli Avenue 127 Agmashenebeli Avenue 80 Agmashenebeli Avenue 96 Agmashenebeli Avenue 1 Agmashenebeli Avenue 89/24 Agmashenebeli Avenue 86/90 Agmashenebeli Avenue 15 Tamar Mepe Avenue 10 Tamar Mepe Avenue 20 General Kvinetadze Street 5 marjanishvili street Marjanishvili 83/23 Agmashenebeli street 1 Chitaia Street 19 Tsabadze Street, pasage 2 Chkheidze Street Tbilisi central Tsereteli Vagzlis moedani 2 Vagzlis Moedani 1 Vagzlis Moedani 2 19 Agladze Street 2 Vagzlis Moedani 95 Tsinamdzgvrishvili Street 137 Tsinamdzgvrishvili Street Mtkvari Left Riverside (mushtaedi) 1 chaladze street Digomi 8 chachava street Military Base (vashlijvari) Digomi II kv. 5 Block Digomi Block V, I a Building 11 George Balanchini Street Agmashenebeli alley II km Agmashenebeli alley 9 km. Agmashenebeli alley Didi Digomi way. Digomi village way (vashlijvari) 8 Petritsi Street 7 Petritsi Street 10/12 Godziashvili Street Vashlijvari Agmashenebeli alley 13 km 6 gelovani avenue 5 Lubliana Street Isani-Samgori Isani Samgori 1 Samgori 2 Varketili Varketili 3, IVm/r, near by 410 Building 1 Khomleli street 64 Javakheti street Vazisubani IV m/r I block, petefi str. Vazisubani IV m/r I block 2 Landia street 300 Aragveli Kakheti Highway 21km 60 Kakheti Highway Military Base (alekseevka) Military Base (alekseevka) AIR 3a Khomleti Street 10 Ketevan Tsamebuli Avenue 80 Ketevan Tsamebuli Avenue 51a Ketevan Tsamebuli Avenue 4 Kiziki Street Airport Airport Airport Military Base (vaziani2) 7 Kalaubani Street 7 Kalaubani Street

14 Kalaubani Street 39 Moscow Avenue 17 chichinadze street 44 Moscow Avenue 10 Telavi Street Avlabari Avlabari Metro Square 8/10 Chekhov Street 23 Shuamta Street 155 bogdan khmelnitski street 6/4 Naftlukhi Street Atskuri, isnis metros mimdebare Kairo & Javakheti Street 64 Melaani Street 1 Abdushelishvili street 122 Kakheti Highway market lilo 113 gakhokidze street 38 Kakheti Highway Krtsanisi 41 Gorgasali Street 39 Gorgasali Street Military Base (krtsanisi)2 Military Base (krtsanisi) 16 Gorgasali Street 16 Gorgasali Street 6 Gorgasali Street 77 Gorgasali Street 117 Gorgasali Street 37 Gorgasali Street 19/2 Rustavi Highway 7 a krtsanisi street 10 Gulua Street Kodjori military base Mtskheta 23 arsukidze street Bebriscixis mimdebared 12 samxedro street Gudauri Rustavi 10 Megobroba Street 16 Mshenebelta Street 16 Kostava Street 23 Kostava Street 4 Shartava Street 8 Baratashvili Street 4 mshvidoba street 4 mshvidoba street 14 gagarini street Gardabani 25 agmashenebeli street 76 Agmashenebeli Street Marneuli 65 Rustaveli Street Old Military Area Bolnisi 113 Sulkhan-Saba Street Tsalka 71 Kostava Street Tetri tskaro 37 Tamar mepe Streer Telavi 60 Agmashenebeli Streer 6 Chavchavadze Street 2 erekle II street 6 Erekle II Street 9 Agmashenebeli Streer Lagodekhi 3 zakatala street 45 rustaveli street 15 9 April Street 1 kudigori street 34 Chavchavadze Street 12 Noneshvili Street 17 Agmashenebeli Streer Khashuri 190 borjomi street 2 Dzneladze Street Gori 2 Ertoba Street 14 Stalini Street 26, Chavchavadze street Ckhinvali highway 43 Samepho Street 68 Samepho Street Military Base, tskhinvali highwat Military Base, tskhinvali highwat Kaspi Rustaveli Street 78, Stalini Street Akhaltsikhe 66 Rustaveli Street 25 Kostava Street Military Base 35 Nalbandiani Street 35 Nalbandiani Street Borjomi 143 Rustaveli Street 1 Rustaveli Square 1 Mta Street Kutaisi 17 Tsminda Nino Street 59 a Chavchavadze Avenue 56 Chavchavadze Avenue 124 Rustaveli Street 36 Grishashvili Street 17 Tsminda nino Street (Beeline) 141 Rustaveli Street 12 Javakhishvili Street 75-77/47 Ninoshvili Street & Agmashenebeli Street 98 Asatiani Street 31 Paliashvili Street axalgazrdobis I shesaxvevi Military Base Tsereteli street 1/2 16 Chavchavadze Avenue 17 Tsminda Nino Street Terjola 4 shotadze street Samtredia 21 Javakhishvili Street Chiatura 16 Ninoshvili Street Sachkhere Agmashenebeli street 17 gomarteli street Tskaltubo 21 Rustaveli Street Zestafini 59 Agmashenebeli Street 27 Agmashenebeli Street 2 Chanturiai Street Sakarkhno and Staroselski street Tkibuli 13 tabukashvili street 55 Gamsakhurdia Street Khoni 12 tavisufleba street Poti 30 Agmashenebeli Street 30 Agmashenebeli Street 52 Agmashenebeli Street 24 Rustaveli rkali 11 Chanturia Street 2 Pharnavaz mefe Street 1 Kokaia Alley nabada new port Senaki military base 78 Chavchavadze Street 168 Mshvidoba Street Zugdidi 54 Kostava Street 90 Rustaveli Street 89 Agmashenebeli Street 31 gamsakhurdias street 91 Rustaveli street Anaklia Chokatauri 20 dumbadze street Ozurgeti 18 Guria Street 2 takhaishvli street Lanchkhuti 101 Jordania Street Batumi 71 abuseridze street 132 pushkini street 48 gorgiladze street 32 Era Street 11 Ninoshvili Street 2 Maiakovski Street 17 Gogebashvili Street 51 Baratashvili Street 41 Baratashvili Street 10 Khimshiashvili Street 10 Khimshiashvili Street 16 Chavchavadze Street 39 Chavchavadze Street 20 Gamsakhurdia Street 29 tavdadebuli Street 77/88 Chavchavadze Street 47 Gamsakhurdia Street 21 Agmashenebeli Street 14 Inasaridze Street Airport 82 Era Street 105 a Lermontovi Street 8 Baratashvili Street Tamari living area 58 M.Abashidze Street 58 M.Abashidze Street 2 vazha-pshavela street 2 vazha-pshavela street 6 rustaveli street Khelvachauri

adila village 82 Agmashenebeli Street 60 Agmashenebeli Street Angisa Village 118 Agmashenebeli Street 1 Agmashenebeli Street 1 Ninoshvili Street 275 Agmashenebeli Street Bobokvati Daba Chakvi 41 tamar mepe street Keda 13 abuseridze street Khulo 16 Abashidze Street Shuakhevi 5 Rustaveli street

BANK REPUBLIC TBILISI Central Branch 2 Grigol Abashidze str. 24 hour Chavchavadze SC (#1 SC of Central Branch) 13 Chavchavadze ave, 24 Hour Airport SC (#2 SC of Central Branch) Tbilisi International Airport VIP SC 33 Paliashvili str. Didube SC (# 4 Central Branch SC) 10th building, Tsereteli Ave. Pekini SC (#5 Central Branch SC) 28 Pekini Ave. Isani SC (#7 Central Banch SC) 6/2 Navtlughi str. Aghmashenebeli SC (#8 Central Branch SC) 112 Aghmashenebeli Ave. Vaja- Pshavela SC (#13 Central Branch SC) 71 Vaja-Pshavela Ave. Digomi SC (#17 Central Branch SC) Ib block, I Micro District, Dighomi Tel: +(995 32) 518515 Digomi SC ( Building of city Court of Tbilisi) (#16 Central Branch SC) VI km David Aghmashenebeli alley Sanzona SC (#18 Central Branch SC) 34 Guramishvili Ave. Ortachala SC (#20 Central Branch SC) 37 Gorgasali str. Mukhiani SC (#21 Central Branch SC) 8b Block,IVa Micro district Dadiani SC (#24 Central Branch SC) 34 Dadiani Ave. Delisi Branch 47 A.Kazbegi Ave. Tamar Mepe SC Tbilisi, 10 Tamar Mepe Ave. Gldani Branch 20 Khizanishvili str. #1 Gldani Branch SC (Ghudushauri Clinic) 18/20 Lubliana str. #3 Gldani Branch SC (Police Office) 8 Gulua str. Varketili SC (#23 Central Branch SC) 29/31 Aerodrome Settlement

REGIONS 22. Rustavi SC (#10 Central Branch SC) 20 Megobroba Ave. Rustavi SC #6 Gldani Branch SC (Police Office) 21 Mshenebelta str. Telavi SC (#14 Central Branch SC) 4 Marjanishvili str. Sighnaghi SC ( #15 Central Branch SC ) 1Tamar Mepe str. Kvareli SC (#22 Central Branch SC) 13 RusTaveli str. Zestaphoni SC (#19 Central Branch SC) #59 Aghmashenebeli str. Kutaisi Branch 6 Grishashvili str. #2 Kutaisi Branch SC 19b, Sulkhan Saba str. Kutaisi Samtredia Branch 2 Razmadze str. Zugdidi Branch 34 Zviad Gamsaxurdia Ave. #1 Zugdidi SC (Police Office) 1 Parizis Komuna Str. Poti SC #9 Central Branch SC 50 Aghmashenebeli str. Batumi Branch #6 Kutaisi str. Batumi Branch 24 hour SC #4 Batumi Branch SC # 24 Gogebashvili Batumi Aiport SC #2 Batumi Branch SC Batumi International Airport Central Branch #11 S/C Freedom Square 2 leonidze st. Central Branch #25 S/C Gori 14 Chavchavadze st. Vake 2 Gr.Abashidze Str. 13 Chavchavadze Ave. 33A Paliashvili Str. 1 Chavchavadze Ave. 49b Chavchavadze Ave. 50 Chavchavadze Ave. 2 Mosashvili Str. Mrgvali Bagi Mtatsminda 27 Kostava Str. 38 Kostava Str. 32 Br/Zubalashvili Str. 20 Rustaveli str. 31 Rustaveli Ave. 9 Pushkini Str. 20 Gogebashvili Str. 8/10 Erekle II Str. 14 Shardeni Str. 2, Leonidze Str. 4 – 9aprili st. 24 Gorgasali Str. 24 Gorgasali Str. 37 Gorgasali Str. 8 Gulua str. Saburtalo 75 Kostava Ave. 16 Kazbegi Ave. 47a Kazbegi Ave. 2 Gamsakhurdia Ave. 23-25 Gamsakhurdia Ave. 28 Gamsakhurdia Ave 45 Gamsakhurdia Ave. 6 Shartava Str. 19 Nutsubidze Str. 179 Nutsubidze Str. 13 Bakhtrioni Str. 11 Dolidze str. Building 4/5 34 Vaja Pshavela Ave. 48 Vaja Pshavela Ave. 71 Vaja Pshavela Ave. 72 Vaja Pshavela Ave. Building 1, Block of flats 7, Vaja Pshavela ave. Kavtaradze str.

BRANCH NETWORK Tbilisi Head office 37, D. Uznadze Street, 0102 Central Branch 14, G. Chanturia Street, 0108 Isani Service Center 12, K. Tsamebuli Avenue, 0103 Didube Branch 147, D. Agmashenebeli Avenue, 0112 Rustaveli Branch 16/18, Rustaveli Avenue, 0108 Vake Branch 10, I. Chavchavadze Avenue, 0179 Saburtalo Branch 21, Vazha-Pshavela Avenue, 0160

Pawn-Centre 16-18, Tamar Mepe Avenue, 0112 Regions Poti Branch 13, Rustaveli Square, 4400 Operational Division of Poti Branch 30, Alley of 9th April, 4400 Ozurgeti Branch 8, Eristavi Street, 3500 Kutaisi Branch 35, Z. Paliashvili Street, 4600 Gori Branch 49, Samepo Street, 1400 Rustavi Branch 3, Megobroba Avenue, 3700 Marneuli Branch 74, Sh. Rustaveli Street, 3000 Telavi Branch 3, G. Saakadze Square, 2200 Batumi Branch 21, L. Asatiani Street, 6000

ATM NETWORK Tbilisi 37, D. Uznadze Street VTB Bank (Georgia) Head Office 14, G. Chanturia Street VTB Bank (Georgia) Central Branch 5, Jikia Street Magti 16/18, Rustaveli Avenue VTB Bank (Georgia) Rustaveli Branch 54, Chavchavadze Avenue Pharmacy “Aversi” 10, Chavchavadze Avenue VTB Bank (Georgia) Vake Branch 2, University Street Finance Police Building 21, Vazha-Pshavela Avenue VTB Bank (Georgia) Saburtalo Branch 33, M. Kostava, I Turning Ltd “Tbilisi Water” 3, Gotua Street Ltd “Geocell” 16/18, Tamar Mepe Avenue VTB Bank (Georgia) Pawn-Centre 4, K. Leselidze Street 15, Tamar Mepe Avenue Railway Department 76, A. Tsereteli Avenue Pharmacy “Crystal” 3, Vani Street JSC “Telasi” 147, D. Agmashenebeli Avenue VTB Bank (Georgia) Didube Branch 5, KhizanishviliStreet Metro Akhmeteli nearby territory 12, K. Tsamebuli Avenue VTB Bank (Georgia) Isani Service Center 20, Telavi Street Sheraton Metekhi Palace 42, Al. Kazbegi Avenue Abkhazian Government Building 8, Tsabadze Street Shopping Center “Kidobani” 6, Gorgasali Street Ltd “Beeline” 6/2, Navtlughi Street 9, Tsinandali Street 48a, Bogdan Khmelnitsky Street 19, Gamrekeli Street 143, Ak. Tsereteli Avenue 23, Peking Street 78, Nutsubidze Street D.Agmashenebeli Alley Regions 113, Chavchavadze Street, Batumi 21, L. Asatiani Street, Batumi Tskhinvali Highway, Gori 49, Samepo Street, Gori 13, Noneshvili Street, Gurjaani Village Zhinvali 3, G. Saakadze Square, Telavi 74, Rustaveli Street, Marneuli 8, Eristavi Street, Ozurgeti 1, Kostava Street, Ozurgeti 3, Megobroba Avenue, Rustavi 2, Mshvidoba Street, Rustavi 18, Megobroba Avenue, Rustavi 5, Tabidze Street, Poti 13, Rustaveli Encirclement, Poti 30, Alley of 9th April, Poti 64, Chavchavadze Avenue, Kutaisi

VTB BANK Tbilisi 37, Uznadze Str. 14, Chanturia Str. 5, Jikia Str. 3, Gotua Str. 6, Gorgasali Str. 16/18, Rustaveli Ave. 54, Chavchavadze Ave. 10, Chavchavadze Ave. 21, Vazha Pshavela Ave. I tr. 33, Kostava Ave. 16/18, Tamar Mepe Ave. 4, Leselidze Str. 15, Tamar Mepe Ave. 76, Tsereteli Ave. 3, Vani Ave. 147, D. Aghmashebeli Ave. 5, Khizanishvili Str. 12, Ketevan Tsamebuli Ave. 20, Telavi Str. 42, Al. Kazbegi Ave. 8, Tsabadze Str. 6/2, Navtlughi Str. 9, Tsinandali Str. 48a, Bogdan Khmelnitsky Str. 19, Gamrekeli Str. 143, Tsereteli Ave. 78, Nutsubidze Str. Aghmashenebeli Alley 60, Barnov Str. Regions 113, Chavchavadze Str., Batumi 21, Asatiani Str., Batumi Gori, Tskhinvali Motorroad 49, Samepho Str. Gori 13, Noneshvili Str., Gurjaani 3, Saakadze Sq., Telavi 74, Rustaveli Str., Marneuli 8, Eristavi Str., Ozurgeti 1, Kostava Str., Ozurgeti 3, Megobroba Ave., Rustavi 18, Megobroba Ave., Rustaveli 5, Tabidze Str., Poti 13, Rustaveli Ring., Poti 30, April Alley, Poti 64, Chavchavadze Ave., Kutaisi 5, Rustaveli Str., Kutaisi 35, Z. Paliashvili Str., Kutaisi 3, Rustaveli Str., Kutaisi 98, Akhalgazrdoba Ave., Kutaisi 59, Tamar Mepe Str., Kutaisi

HSBC BANK GEORGIA JSC Head Office 15 Rustaveli Avenue 0108 Tbilisi, Georgia Tel: (995 32) 17 77 77 Fax: (995 32) 17 77 78 E-mail: info.georgia@hsbc.com Website: www.hsbc.ge

CARTU BANK Head office 39a I. Chavchavadze avenue Tbilisi, 0162, Georgai phone: (+995 32) 92 55 92/91/90 fax: (+995 32) 91 22 79 email: info@cartubank.ge Vake Service Center 24 I. Abashidze street Tbilisi, 0179 Georgia phone (+995 32) 25 06 14/15 fax: (+995 32) 25 06 15 email: vake@cartubank.ge Saburtalo Service Center 14b Pekini Street Tbilisi 0171 Georgia phone: (+995 32) 92 55 92 fax: (+995 32) 38 23 92 email: saburtalo@cartubank.ge Lilo Service Center 14 Yumashev street Tbilsi, 0198, Georgia phone: (+995 32) 24 11 33 fax: (+ 995 32) 24 11 34

email: lilo@cartubank.ge Mtatsminda Branch #1 Vekua atreet Tbilisi 0105, Georgia phone: (+995 32) 93 89 22 fax: (+995 32) 92 19 38 email: mtatsminda@cartubank.ge Kutaisi Branch 4 Paliashvili Str. Kutaisi 4600, Georgia Tel.: (+995 231) 4 11 48 Fax: (+995 231) 4 11 45 E-Mail: cartuk@cartubank.ge Batumi Branch 2 Griboedov Str. Batumi 6000, Georgia Tel.: (+995 222) 7 59 00 Fax: (+995 222) 7 65 04 E-Mail: batumi@cartubank.ge Gori Service Center 10/14 Stalin Ave. Gori, 1400, Georgia Tel.: (995 270) 7 76 71 Fax: (995 270) 7 76 71 E-mail: gori@cartubank.ge Telavi Service Center Chavchavadze Square Telavi 0022 Georgia phone: (995 250) 7 09 00 fax: (995 250) 7 09 01 emailtelavi@cartubank.ge Vake 39 I. Chavchavadze avenue 54 I. Chavchavadze avenue 24 I. Abashidze street 35 Tskneti Highway Mtatsminda 1 I. Vekua street 3 I. Vekua Street 4 Freedom Square 31 Shota Rustaveli avenue 17 Shota Rustaveli avenue 10 G. Chanturia street 29 K. Melikishvili avenue 52 K. Melikishvili avenue 34 M. Kostava street Ortachala 79 Gogasali street 10 G. Gulua street Saburtalo 6 Pekini street 14b Pekini street 48 Vazha-Pshavela avenue 71 Vazha-Pshavela avenue 16 Kavtaradze street L. Gotua Street 10 A. Kazbegi avenue 48 Vashlidjvari Didube-Chugureti 8/9 A. Tsereteli avenue 119 A. Tsereteli avenue 97 David Agmashenebeli avenue 154 David Agmashenebeli avenue 16 K. Marjanishvili street 31 Tamar Mefe avenue Digomi, 4th block, building 5 Isani-Samgori 14 Yumashvi Street Aiport 42 Bogdan Khmelnitski street Javakheti street Isani Bazroba Lilo 6/2 Navtlugi street 91 Ketevan Tsamebuli street 12 Meskhishvili street Gldani-Nadzaladevei Gldani „a“ micro district, building 50 3 V. Sarajishvili street 7 Sh. Dadiani Street 39a Sh. Dadiani Street Sachkhere 36 Tamar Mefe street Kutaisi 4 Z. Paliashvili street 51/2a I. Chavchvadze street Batumi 2 A. Griboedov street 4 V. Mayakovski street 44 K. Gamsakhurdia astreet 65 N. Noneshvili street 12/14 M. Abashidze Gori 10/14 Stalini avenue Telavi Chavchavadze square

CONSTANTA BANK Tbilisi Branches Sadguri Outlet Didube Outlet Gldani Outlet Isani Outlet Varketili Outlet Lilo Outlet Kvemo Kartli Region Rustavi Outlet Kakheti Region Tsnori Outlet Lagodekhi Outlet Gurjaani Outlet Shida Kartli Region Kaspi Outlet Gori Outlet Khashuri Outlet Samtskhe-Javakheti Region Borjomi Outlet Akhaltsikhe Outlet Akhalkalaki Outlet Imereti Region Zestafoni Outlet Kutaisi Outlet Samtredia Outlet Achara Region Batumi Outlet Samegrelo Region Foti Outlet

TBILISI BRANCHES: Sadguri Branch 137 Tsinamdzgvrishvili Street Didube Branch 117, Tsereteli Ave Gldani Branch The right side of the Akhmeteli Subway Isani Branch 84/86 Ketevan Tsamebuli Avenue Varketili Branch 20, Vazisubani turn Lilo Branch 2 Chirankhuli Str. Rustavi Outlet 9 Meskhishvili Street Kakheti Region: Tsnori Outlet 4 Stalin Street 4216 Tsnori, Georgia Lagodekhi Outlet 15 M. Kostava Street Gurjaani Outlet 2 Noneshvili Street Shida Kartli Region: Kaspi Outlet 2 Agmashenebeli Street Gori Outlet 2 Tskhsinvali Highway Khashuri Outlet 2 Imereti Street Samtskhe-Javakheti Region: Borjomi Outlet 145 Rustaveli Street Akhaltsikhe Outlet 6 Ketskhoveli Street Akhalkalaki Outlet 19/1 Rustaveli Street Imereti Region: Zestafoni Outlet 27 Agmashenebeli Street Kutaisi Outlet 95 Rustaveli Street Samtredia Outlet 10 Rustaveli Street Achara Region: Batumi Outlet 91 Era Street Samegrelo Region: Foti Outlet 21 Agmashenebeli Street


CMYK

16

HEADLINE NEWS & ANALYSIS

FINANCIAL

NOVEMBER 7, 2011 | FINCHANNEL.COM

US business in Georga

“U.S. investment in Georgia can lead to U.S. exports and therefore more jobs for Americans,” Michael R. Turner, Public Affairs Officer of U.S. Embassy Tbilisi By NANA MGHEBRISHVILI The FINANCIAL Q. Why is Georgia attractive for American investors and especially which fields are the most attractive? How did the tendency change during last years? A. Georgia’s free market economy, strategic location, and record of fighting corruption make it an attractive place for American investors. The people are friendly, the food is delicious, and the strong history of hospitality makes Americans feel welcome.

There are more than a thousand Americans currently living in Georgia U.S. Companies invest across a wide array of sectors, and are often interested in using Georgia as a base to expand to the region. This tendency has not changed much, but the continued economic slowdown in the U.S. and Europe means there is less investment capital in the world that could come to Georgia. The United States Agency for International Development (USAID) currently implements a 40 million USD Economic Prosperity Initiative (EPI) project that will improve enterprise, industry, and country-level competitiveness in Georgia. Local and foreign investors have already begun to exploit Georgia’s platform for growth, and despite the trauma of invasion, occupation, and a global financial crisis, the country has made some strides since 2008. EPI is here to turn these foundations into vibrant platforms for export expansion, for while local markets can develop further, Georgia must ultimately look outward to accelerate growth. EPI has identified hazelnuts, mandarins, and open field and greenhouse vegetables as value chains with high potential return in investment value. Additionally, EPI also singled out wine tourism, ICT, apparel, transport and logistics, Meetings, Incentive, Conference Exhibitions (MICE) tourism, and paper/corrugated packaging. EPI’s assessments point that investments in the abovementioned sectors have a great potential on Georgian market. In addition, there are some potential investment opportunities in the US Government supported hydropower promotion projects, which entail 400MW of power throughout Georgia ranging from 10 – 120MW each. The Ministry of Energy and Natural Resources is continuously posting new opportu-

nities on their website. The Embassy views the role of public engagement in Georgia’s development, including its economic path, as very important. In that connection, on November 4 U.S. Ambassador John R. Bass opened the first of ten Centers for Civic Engagement in Guria. There will be Centers in ten cities offing the public a place to gather and engage on issues of public concern, including economic development. The Embassy hopes that the Centers will bring together NGO leaders, community members, elected officials, party leaders, and independent media to encourage dialogue, build consensus and and improve transparency. During a second event in Guria, Ambassador Bass opened a local machinery service center funded by USAID’s Access to Mechanization Project (AMP). AMP selected a local partner through a competitive process to establish a machinery service center in the village of Natanebi, Ozurgeti district. USAID’s support, along with the local partner’s matching funds, facilitated the purchase of seven tractors and seven agriculture implements. This cooperation created 12 new jobs and will benefit at least 400 farmers. AMP is a $5.1 million project addressed to the shortage of agricultural machinery, particularly among Georgia’s small farmers, whose inability to acquire machinery is a serious constraint to agricultural development. Q. How many American businesses are operating currently in Georgia? And which is the largest U.S. private investment in Georgia? A. Quite a few American businesses are operating in Georgia, and the American Chamber of Commerce in Georgia is associated with up to 150 companies, but not all of them American. There are several significant U.S. investments in the country, including the GMT group (Marriott hotels and Sante dairy), MobiPay, Frontera, American Monolith, Magti, and others. We hope to see even more in the years to come. Q. In your opinion, What can be done to boost US-Georgian trade? A. Many American companies are not familiar with the trade opportunities in Georgia, and many Georgian companies do not know how to source products from the U.S. or to find buyers for their products in the U.S. Getting American companies to trade shows in Georgia, and Georgians to trade shows in the U.S. would help build trade. The U.S. Embassy in Tbilisi can also help – Georgian companies interested in sourcing products from the U.S. or American companies who want to find buyers in Georgia can contact TbilisiCommerce@state.gov.

Michael R. Turner, Public Affairs Officer of U.S. Embassy Tbilisi

Q. What kind of obstacles do American businesses face in Georgia? A. Georgia has made great strides in improving the business climate over the past few years, including fighting corruption, and making it easier to start a business. The Embassy puts out an investment cli-

due diligence before committing to invest in Georgia, but most do not view it as a major concern. Q. How have the strategies of US businesses changed in the GeorgianRussian war period? A. U.S. business strategies have not changed significantly since the war.

The tax reforms in Georgia, including the new tax code, creation of the business ombudsman, and a more business-friendly approach at the Revenue Service are all very positive steps, and American companies really appreciate the changes. The system is not perfect, but should continue to improve as the Georgian government implements the new reforms. mate statement every year, with detailed guidance on the opportunities and obstacles in Georgia’s investment climate: http://www. state.gov/e/eeb/rls/othr/ ics/2011/157734.htm Some of the obstacles we mention in that report are enforcement of property rights, intellectual property rights protection, and commercial dispute resolution. Q. How often are issues related to political stability and security raised in negotiations with US investors and businesses interested in dealing with Georgian companies? A. Investors ask about political stability as part of their

Q. The embassy of America made USD 20.5 million four-year New Economic Opportunities (NEO) project. Government program designed to improve rural incomes, reduce poverty levels etc. Is four years enough to solve all these problems and how will rural places look like after four years? A. NEO will reduce poverty levels; improve living standards for vulnerable populations, and increase citizens’ participation in addressing local needs in 84 communities in 10 municipalities – Dusheti, Stepantsminda (Mtskheta-Mtianeti), Kareli, Gori, Khashuri

(Shida Kartli), Oni, Lentekhi, Tsageri (Racha), and Zugdidi and Tsalenjikha (Samegrelo). In these communities, NEO will support up to 70,000 households with the result of at least 25 percent increase in the average value of household production and at least 25 percent of targeted vulnerable households and individuals will be raised to the official subsistence level. NEO is a community mobilization project focused on economic improvements selected by the community so the critical assumption is that chosen communities will actively participate in planning sustainable, economic activities, including small infrastructure. USAID designed NEO’s economic strengthening activities to address the needs of highly vulnerable segments of the population. Working on the bottom of the value chain within sectors and crops identified by the communities, NEO will provide targeted assistance to facilitate market linkages, increase access to finance and provide market driven training. Market demands, economic principles and best practices will drive these activities. USAID expects that rural places in the 84 assisted communities will have improved infrastructure, increased household incomes and a greater send of civic awareness and responsibility for their own development. Q. How does the USA benefit from investing in Georgia? A. U.S. investment in Georgia can lead to U.S. exports and therefore more jobs for Americans. Some of the income earned from investment in Georgia goes back to the U.S., and gets spent in the U.S. economy. These are only the direct economic benefits. Indirectly, more U.S. investment in Georgia is good for the relationship between our two nations because it brings more Americans to see Georgia, and provides an economic as well as political basis for our relationship. Q. US is considered Georgia’s partner country. But still American investments in Georgia aren’t much. Why? A. The bilateral partnership is based on shared values and interests, but investments are made based on potential for profit. Georgia remains a small market, and in these tough economic times, there are not that many U.S. investors able to commit funds here. Q. Since 2005, Georgia has moved up to 12th place from 112th among 181 countries surveyed on the World Bank’s annual Doing Business ranking. What was the role of USAID in these processes? A. The USAID’s Georgia Business Climate Reform (BCR) project, implemented 2005-2009 directly sup-

ported 18 of the 23 reforms in eight out of 10 Doing Business (DB) key areas. USAID’s project assisted the Government of Georgia in policies related to starting business, paying taxes, trading across borders, dealing with licenses, registering property and developing e-government services. Implementation of these policies helped Georgia to change its rating from 112th place in DB 2006 to 11thDB 2010. Q. In your opinion, which American franchises might be successful in Georgia? A. There are many opportunities for franchising in Georgia, and it is up to the companies in the U.S. and their potential Georgian partners to work out arrangements to bring more U.S. franchises to Georgia. Many companies are not expanding right now due to global economic conditions, but there is no reason more American franchises will not be in Georgia in the future. Q. What are the differences and similarities of American and Georgian business sector? A. The markets, history, business culture, and other aspects are very different, but Americans and Georgians work well together. Both countries believe in free markets, and have a growing trade and investment relationship.

Georgian wine is already available in the U.S., and is becoming more popular. Certain agricultural products could also do well in the U.S. market Q. In your opinion, what procedures should foreign business guide in today conditions to operate properly and successfully? A. We recommend that American businesses in Georgia make sure they understand the market before choosing to operate here, and also recommend they work with a knowledgeable Georgian partner. Talking to many other foreign companies in Georgia, to get a sense of the business environment, is essential to any potential investor. Q.In your opinion, how attractive is Georgia as a tourism destination for US tourists? A. It could be a very attractive destination for wealthier American tourists, who can afford to travel here and spend a week or more in the country. The wine, food, culture, and nature are all exceptional. Americans who live and work here really enjoy it.


CMYK

FINANCIAL HEADLINE NEWS & ANALYSIS

17

FINCHANNEL.COM | NOVEMBER 7, 2011

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More Than Half Of Americans Didn't Dine Out Last Year: Census The FINANCIAL

Tel: (+995 32) 277 20 20 Fax: (+995 32) 277 21 20 Addr: 20 Telavi Str. www.sheraton.com/tbilisi

Tel: (+995 32) 2242400 Fax: (+995 32) 2242403 Kobuleti, Georgia E-mail: info@gph.ge www.gph.ge Addr: 275 Agmashenebeli Ave.

AeroSvit Representative office in Georgia

M

ore than half of all Americans say they've recently gone a year without dining out, in what may be one of the clearest reflections yet of how the listless economy is restricting choices for consumers. Only 49.3 percent of adults say they "dined out" between fall 2009 and fall 2010, according to recently released figures from the U.S. Census Bureau. That's the lowest percentage since 2007, when just 48.7 percent of adults said they had dined out in the past year. As Seattle Weekly points out, there's some uncertainty over what "dining out" means. The Census doesn't define the term for survey participants, and it's possible many of them interpreted it in a specific way -- for example, dinner at a restaurant with table service -- when broader definitions exist. The National Restaurant Association, Seattle Weekly found, counts fast-food restaurants and hot dogs purchased at concerts in the same general "dining out" category as, say, places with a wine list. Still, the Census results indicate that more than half of all Americans, whether out of necessity or by choice, aren't indulging in a luxury that the financially comfortable take for granted -- findings that track with what is already known

about the growing gap between rich and poor in the United States, and the grim financial situations in which millions of people find themselves as the economy continues to founder. For many people, the extra cash simply isn't there for something like a meal at a restaurant or a night at the movies. Thanks to unemployment, stagnant incomes and a recession that wiped out millions of dollars in individuals' net worth, the average American has $1,315 less in disposable income than she did in 2008, meaning that more people have to be careful about prioritizing their spending. According to recent figures, half of all Americans with jobs made less than $27,000 last year, a figure that may not leave much room for treats like a night out. And for some, not being able to eat at a restaurant is less of a pressing a problem than not

having the money to buy groceries. A recent Gallup poll found that almost one in five Americans struggled to put food on the table in the past year, and another survey published over the summer found that the number of people with access to basic life necessities like food, shelter and medical care -- a number that took a hit in 2008, with the onset of the financial crisis -- still had not recovered to pre-recession levels. And in 2010, it was estimated that there were 48.8 million people in America who were hungry or food-insecure -- an increase of 12 million, or a full 33 percent, since 2007 -- and that the combined social costs of so much hunger added up to $167.5 billion for the year, or $542 for every person in the United States.


CMYK

18

HEADLINE NEWS & ANALYSIS

NOVEMBER 7, 2011 | FINCHANNEL.COM

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21:00 - Band “Wheels”, DJ Datuna SkyyBar 22 Metekhi Str. Mob: 592 32-32-32 22:00-02:00 - DJ Club “Two Side” 7 Bambis Rigi Str. Tel: 230-30-30 19:00 - New show-program and many surprises. Singers: Giorgi Tsereteli, Boris Bedia, Giorgi Tsiklauri, Mzeona Makharadze Restaurant “Bermukha” Agmashenebeli lane 13th km. Tel: 259 69 69; Mob: 598 59 69 69 20:00-23:00 - Georgian songs with live performance Restaurant “Dzveli Sakhli” 3, Sanapiro Str. Tel: 2 365-365 21:00-24:00 - Band “Pub” Bar “Fahrenheit” 5 Vashlovani Str. Tel: 299-67-72 20:30 - Maidan Jazz Band Restaurant “Maidan” 6, Rkinis Rigi Str. Tel: 275-11-88; 590 75-11-88 21:00 - Rezo Kiknadze - saxophonist Café “Kala” 8/10 Erekle II Str. Mob: 599 79-97-37 20:00-23:30 - Georgian Folk and Pop Songs (Live Performance) Restaurant “Shadow of Metekhi” 29 K. Tsamebuli Ave. Tel: 230-30-30 20:00-23:00 - Trio - Georgian Songs Live Performance Restaurant “Maspindzelo” at Bambis Rigi 7, Bambis Rigi Str. Tel: 230-30-30 21:00-24:00 - Band “Goblins” (Covers) Pub “Dublin” 8 Akhvlediani Str, Tel: 298-44-67 20:00-23:00 - Classical Music - Piano and Violin Restaurant “Maspindzelo” in Abanotubani 7 Gorgasali Str. Tel: 230-30-30

Cinema Rustaveli Cinema 5 Rustaveli Ave. Tel: 293-22-53, 2 555-000 “Puss in Boots” 3D; “Johnny English Reborn”; “The Rum Diary”; “The Watchmaker”; “City of Doll’s”; “The Three Musketeers” 3D; “Midnight in Paris”; “Stay with me”; “The Skin I Live In”; (Ticket Price - 6 - 14 GEL) “Amirani” Cinema 36 Kostava Str. Tel: 299-99-55 “Puss in Boots” 3D; “Johnny English Reborn”; “The Rum Diary”; “The Watchmaker”; “The Three Musketeers” 3D; “Stay with me”; “The Skin I Live In” (Ticket Price - 6 - 14 GEL) “Sakartvelo” Cinema 2/9, Guramishvili Ave. Tel: 230-80-80; 269-66-47 “Puss in Boots” 3D; “The Rum Diary”; “The Three Musketeers” 3D; “Stay with me” (Ticket Price - 7 - 10 GEL)

Gallery 12:00-19:00 - Solo Exhibition of Artist - Vakhtang Tato Akhalkatsishvili “Memories” Art Gallery “Chardin” 13, Rustaveli Ave. (“Tbilisi Marriott”); Tel: 299-09-25 Mamuka Tsetskhladze’s Personal Exhibition New Gallery 26, Besiki Str. Tel: 292-26-99 12:00-19:00 - Gallery “Vernissage” is pleased to invite you to Guga Kotetishvili’s exhibition - “Mirrors” Gallery “Vernissage” 7, Brothers Zubalashvili Str. Tel: 299-99-02 12:00-19:00 - Baia Gallery presents Exhibition of artworks of Georgian Artists - Artexpo XX-XXI century. Elene Akhvlediani, Petre Otskheli, Kiril Zdanevich, David Kakabadze, Shalva Kikodze, Sergo Kobuladze, Petre Bletkin, Irakli Parjiani, Merab Abramishvili, Gogi Chagelishvili, Yuri Berishvili, Levan Chogoshvili, Vakho Bugadze Baia Gallery 10 Shardeni Str. Tel: 275-45-10 12:00-22:00 - Mixed Exhibition of Georgian Artists (paintings, graphics, porcelain, enamel, woodcraft...) Gallery “Cameo” 11, Rkinis Rigi Str. Tel: 272-48-72; Mob: 593 31-92-66 12:00-19:00 - Cloisonne Art Exhibition Enamel Gallery “Ornament” 7 Erekle II Str. Tel: 298-90-13 10:00-18:00 - Modern Fine and Applied Art Exhibition “Manana Art Saloon” 12, Baratashvili Str. Tel: 293-25-90

Rustaveli Theatre (Small Stage) 17, Rustaveli Ave. Tel: 272-68-68 20:00 - “Keto and Kote” (Musical) (Ticket Price - 15, 25, 30 GEL) Rustaveli Theatre (Big Stage) 17, Rustaveli Ave. Tel: 272-68-68 20:00 - “GOTCHA” (Ticket Price - 11 GEL) Marjanishvili Theatre (Theatre in Attic) 8 Marjanishvili Str. Tel: 2 955-966 20:00 - “Il Decameron” (Ticket Price - 4 - 11 GEL) Marjanishvili Theatre 8 Marjanishvili Str. Tel: 2 955-966 19:00 - “Saint George” (Ticket Price - 10 GEL) Pantomime Theatre 37 Rustaveli Ave. Tel: 299-63-14

Gallery “Dialog’” - Solo Exhibition of Kamran Adle - Iranian famous photographer, having worked at the last Queen’s of Iran - Farah Diba Gallery 9 9, Gudiashvili Str. Tel: 299-59-54, 858 24-25-96 12:00-19:00 - Solo Exhibition of Artist - Vakhtang Tato Akhalkatsishvili “Memories” Art Gallery “Chardin” 13, Rustaveli Ave. (“Tbilisi Marriott”); Tel: 299-09-25 Mamuka Tsetskhladze’s Personal Exhibition New Gallery 26, Besiki Str. Tel: 292-26-99 12:00-19:00 - Gallery “Vernissage” is pleased to invite you to Guga Kotetishvili’s exhibition - “Mirrors” Gallery “Vernissage” 7, Brothers Zubalashvili Str. Tel: 299-99-02 12:00-19:00 - Baia Gallery presents Exhibition of artworks of Georgian Artists - Artexpo XX-XXI century. Elene Akhvlediani, Petre Otskheli, Kiril Zdanevich, David Kakabadze, Shalva Kikodze, Sergo Kobuladze, Petre Bletkin, Irakli Parjiani, Merab Abramishvili, Gogi Chagelishvili, Yuri Berishvili, Levan Chogoshvili, Vakho Bugadze Baia Gallery 10 Shardeni Str. Tel: 275-45-10 12:00-22:00 - Mixed Exhibition of Georgian Artists (paintings, graphics, porcelain, enamel, woodcraft...) Gallery “Cameo” 11, Rkinis Rigi Str. Tel: 272-48-72; Mob: 593 31-92-66 12:00-19:00 - Cloisonne Art Exhibition Enamel Gallery “Ornament” 7 Erekle II Str. Tel: 298-90-13 10:00-18:00 - Modern Fine and Applied Art Exhibition “Manana Art Saloon” 12, Baratashvili Str. Tel: 293-25-90

NOVEMBER 9, 2011

Clubs, Pubs… 21:00 - Band “Wheels”, DJ Datuna SkyyBar 22 Metekhi Str. Mob: 592 32-32-32 22:00 - David Masteranov Live Band 24:00 - DJ Club “Two Side” 7 Bambis Rigi Str. Tel: 230-30-30 20:00-23:00 - “Kalakuri’s Quartet” with live performance of city songs, and also universal songs Restaurant “Kalakuri” 3 Shavteli Str. Tel: 2 365-365 19:00 - New show-program and many surprises. Singers: Giorgi Tsereteli, Boris Bedia, Giorgi Tsiklauri, Mzeona Makharadze Restaurant “Bermukha” Agmashenebeli lane 13th km. Tel: 259 69 69; Mob: 598 59 69 69 20:00-23:00 - Georgian Dances Restaurant “Dzveli Sakhli” 3, Sanapiro Str. Tel: 2 365-365 21:00-24:00 - Band “Band’a’roll” Bar “Fahrenheit” 5 Vashlovani Str. Tel: 299-67-72 22:00-01:00 - Group “Comic Condition” Tavern “Scarlet Sails” 25, Leselidze Str. Tel: 293-10-28 20:30 - Maidan Jazz Band Restaurant “Maidan” 6, Rkinis Rigi Str. Tel: 275-11-88; 590 75-11-88 21:00 - Live Band Café “Kala” 8/10 Erekle II Str. Mob: 599 79-97-37 20:00-23:30 - Georgian Folk and Pop Songs, Traditional Georgian Dances (Live Performance) Restaurant “Shadow of Metekhi” 29 K. Tsamebuli Ave. Tel: 230-30-30 20:30-23:30 - Georgian Songs (Live Performance) Restaurant “Puris Sakhli” 7 Gorgasali Str. Tel: 230-30-30 20:00-23:00 - Trio - Georgian Songs Live Performance Restaurant “Maspindzelo” at Bambis Rigi 7, Bambis Rigi Str. Tel: 230-30-30 21:00-24:00 - Band “Zarebi” (Covers) Pub “Dublin” 8 Akhvlediani Str, Tel: 298-44-67 20:00-23:00 - Classical Music - Piano and Violin Restaurant “Maspindzelo” in Abanotubani 7 Gorgasali Str. Tel: 230-30-30

NOVEMBER 8, 2011

Cinema Clubs, Pubs… 21:00 - Band “Wheels”, DJ Datuna SkyyBar 22 Metekhi Str. Mob: 592 32-32-32 22:00-02:00 - DJ Club “Two Side” 7 Bambis Rigi Str. Tel: 230-30-30 20:00-23:00 - “Kalakuri’s Quartet” with live performance of city songs, and also universal songs Restaurant “Kalakuri” 3 Shavteli Str. Tel: 2 365-365 19:00 - New show-program and many surprises. Singers: Giorgi Tsereteli, Boris Bedia, Giorgi Tsiklauri, Mzeona Makharadze Restaurant “Bermukha” Agmashenebeli lane 13th km. Tel: 259 69 69; Mob: 598 59 69 69 20:00-23:00 - Georgian songs with live performance Restaurant “Dzveli Sakhli” 3, Sanapiro Str. Tel: 2 365-365 21:00-24:00 - “Cloud Blues Band” Bar “Fahrenheit” 5 Vashlovani Str. Tel: 299-67-72 20:30 - Georgian folk ensemble “Urmuli”, georgian dances Restaurant “Maidan” 6, Rkinis Rigi Str. Tel: 275-11-88; 590 75-11-88 21:00-24:00 - Jazz Band Restaurant “Chardin 12” 12 Chardin Str. Tel: 293-15-56; Mob: 577 480-460 21:00 - Maia Kankava Café “Kala” 8/10 Erekle II Str. Mob: 599 79-97-37 20:00-23:30 - Georgian Folk and Pop Songs, Traditional Georgian Dances (Live Performance) Restaurant “Shadow of Metekhi” 29 K. Tsamebuli Ave. Tel: 230-30-30 20:30-23:30 - Georgian Songs (Live Performance) Restaurant “Puris Sakhli” 7 Gorgasali Str. Tel: 230-30-30 20:00-23:00 - Trio - Georgian Songs Live Performance Restaurant “Maspindzelo” at Bambis Rigi 7, Bambis Rigi Str. Tel: 230-30-30 21:00-24:00 - Band “Goblins” (Covers) Pub “Dublin” 8 Akhvlediani Str, Tel: 298-44-67 20:00-23:00 - Classical Music - Piano and Violin Restaurant “Maspindzelo” in Abanotubani 7 Gorgasali Str. Tel: 230-30-30

Cinema Rustaveli Cinema 5 Rustaveli Ave. Tel: 293-22-53, 2 555-000 “Puss in Boots” 3D; “Johnny English Reborn”; “The Rum Diary”; “The Watchmaker”; “City of Doll’s”; “The Three Musketeers” 3D; “Midnight in Paris”; “Stay with me”; “The Skin I Live In”; (Ticket Price - 6 - 14 GEL) “Amirani” Cinema 36 Kostava Str. Tel: 299-99-55 “Puss in Boots” 3D; “Johnny English Reborn”; “The Rum Diary”; “The Watchmaker”; “The Three Musketeers” 3D; “Stay with me”; “The Skin I Live In” (Ticket Price - 6 - 14 GEL) “Sakartvelo” Cinema 2/9, Guramishvili Ave. Tel: 230-80-80; 269-66-47 “Puss in Boots” 3D; “The Rum Diary”; “The Three Musketeers” 3D; “Stay with me” (Ticket Price - 7 - 10 GEL)

Theatre 19:45 - “Old Jokers” (Ticket Price - 15 - 20 GEL)

Rustaveli Cinema 5 Rustaveli Ave. Tel: 293-22-53, 2 555-000 “Puss in Boots” 3D; “Johnny English Reborn”; “The Rum Diary”; “The Watchmaker”; “City of Doll’s”; “The Three Musketeers” 3D; “Midnight in Paris”; “Stay with me”; “The Skin I Live In”; (Ticket Price - 6 - 14 GEL) “Amirani” Cinema 36 Kostava Str. Tel: 299-99-55 “Puss in Boots” 3D; “Johnny English Reborn”; “The Rum Diary”; “The Watchmaker”; “The Three Musketeers” 3D; “Stay with me”; “The Skin I Live In” (Ticket Price - 6 - 14 GEL) “Sakartvelo” Cinema 2/9, Guramishvili Ave. Tel: 230-80-80; 269-66-47 “Puss in Boots” 3D; “The Rum Diary”; “The Three Musketeers” 3D; “Stay with me” (Ticket Price - 7 - 10 GEL)

Theatre 20:00 - “Keto and Kote” (Musical) (Ticket Price - 15, 25, 30 GEL) Rustaveli Theatre (Big Stage) 17, Rustaveli Ave. Tel: 272-68-68 20:00 - “Perkhuli” (Ticket Price - 11 GEL) Marjanishvili Theatre (Theatre in Attic) 8 Marjanishvili Str. Tel: 2 955-966

Gallery

“Dialog’” - Solo Exhibition of Kamran Adle - Iranian famous photographer, having worked at the last Queen’s of Iran - Farah Diba Gallery 9 9, Gudiashvili Str. Tel: 299-59-54, 858 24-25-96 12:00-19:00 - Gallery “Vernissage” is pleased to invite you to Guga Kotetishvili’s exhibition - “Mirrors” Gallery “Vernissage” 7, Brothers Zubalashvili Str. Tel: 299-99-02 12:00-19:00 - Baia Gallery presents Exhibition of artworks of Georgian Artists - Artexpo XX-XXI century. Elene Akhvlediani, Petre Otskheli, Kiril Zdanevich, David Kakabadze, Shalva Kikodze, Sergo Kobuladze, Petre Bletkin, Irakli Parjiani, Merab Abramishvili, Gogi Chagelishvili, Yuri Berishvili, Levan Chogoshvili, Vakho Bugadze Baia Gallery 10 Shardeni Str. Tel: 275-45-10 12:00-22:00 - Mixed Exhibition of Georgian Artists (paintings, graphics, porcelain, enamel, woodcraft...) Gallery “Cameo” 11, Rkinis Rigi Str. Tel: 272-48-72; Mob: 593 31-92-66 12:00-19:00 - Cloisonne Art Exhibition Enamel Gallery “Ornament” 7 Erekle II Str. Tel: 298-90-13 10:00-18:00 - Modern Fine and Applied Art Exhibition “Manana Art Saloon” 12, Baratashvili Str. Tel: 293-25-90

NOVEMBER 10, 2011

Clubs, Pubs… 21:00 - Band “Band’a’roll”, DJ Datuna SkyyBar 22 Metekhi Str. Mob: 592 32-32-32 22:00 - Nodiko Tatishvili & Salome Bakuradze, Group “Comic Condition” Club “Two Side” 7 Bambis Rigi Str. Tel: 230-30-30

22:00 - Resident DJ Tako Lounge Bar “Kalakuri” 3 Shavteli Str. Tel: 2 365-365 19:00 - New show-program and many surprises. Singers: Giorgi Tsereteli, Boris Bedia, Giorgi Tsiklauri, Mzeona Makharadze Restaurant “Bermukha” Agmashenebeli lane 13th km. Tel: 259 69 69; Mob: 598 59 69 69 20:00-23:00 - “Kalakuri’s Quartet” with live performance of city songs, and also universal songs Restaurant “Kalakuri” 3 Shavteli Str. Tel: 2 365-365 22:00 - Maia Kvirkvelia & DJ Dachi Club “Kalakuri” 3 Shavteli Str. Tel: 2 365-365 20:00-23:00 - Georgian songs with live performance Restaurant “Dzveli Sakhli” 3, Sanapiro Str. Tel: 2 365-365 21:00-24:00 - Megi & Co Bar “Fahrenheit” 5 Vashlovani Str. Tel: 299-67-72 20:30 - Georgian folk ensemble “Urmuli”, georgian dances Restaurant “Maidan” 6, Rkinis Rigi Str. Tel: 275-11-88; 590 75-11-88 21:00-24:00 - Jazz Band Restaurant “Chardin 12” 12 Chardin Str. Tel: 293-15-56; Mob: 577 480-460 21:00 - Guliko Chanturia Café “Kala” 8/10 Erekle II Str. Mob: 599 79-97-37 20:00-23:30 - Georgian Folk and Pop Songs, Traditional Georgian Dances (Live Performance) Restaurant “Shadow of Metekhi” 29 K. Tsamebuli Ave. Tel: 230-30-30 20:30-23:30 - Georgian Songs (Live Performance) Restaurant “Puris Sakhli” 7 Gorgasali Str. Tel: 230-30-30 20:00-23:00 - Trio - Georgian Songs Live Performance Restaurant “Maspindzelo” at Bambis Rigi 7, Bambis Rigi Str. Tel: 230-30-30 21:00-24:00 - Band “Zarebi” (Covers) Pub “Dublin” 8 Akhvlediani Str, Tel: 298-44-67 20:00-23:00 - Classical Music - Piano and Violin Restaurant “Maspindzelo” in Abanotubani 7 Gorgasali Str. Tel: 230-30-30

“Puss in Boots” 3D; “Johnny English Reborn”; “The Rum Diary”; “The Watchmaker”; “City of Doll’s”; “The Three Musketeers” 3D; “Midnight in Paris”; “Stay with me”; “The Skin I Live In”; (Ticket Price - 6 - 14 GEL) “Amirani” Cinema 36 Kostava Str. Tel: 299-99-55 “Puss in Boots” 3D; “Johnny English Reborn”; “The Rum Diary”; “The Watchmaker”; “The Three Musketeers” 3D; “Stay with me”; “The Skin I Live In” (Ticket Price - 6 - 14 GEL) “Sakartvelo” Cinema 2/9, Guramishvili Ave. Tel: 230-80-80; 269-66-47 “Puss in Boots” 3D; “The Rum Diary”; “The Three Musketeers” 3D; “Stay with me” (Ticket Price - 7 - 10 GEL)

Theatre 19:45 - “Play Strindberg” (Ticket Price - 8 GEL) Rustaveli Theatre (Grand Stage) 17, Rustaveli Ave. Tel: 272-68-68 19:00 - “Honeymoon” (Ticket Price - 5, 7, 9 GEL) Liberty Theatre 2 Rustaveli Ave. Tel: 298-58-21 19:00 - “Universe” (Ticket Price - 5,50 GEL) Pantomime Theatre 37 Rustaveli Ave. Tel: 299-63-14 19:00 - Concert-Play “Arika Da Varika” (Ticket Price - 5 GEL) Ilia University Theatre 32, I. Chavchavadze Ave. Tel: 229-47-15 19:00 - “In the Ceiling?!..” (Ticket Price - 7, 10 GEL) Akhmeteli Theatre 8 Vekua Str. Tel: 262-54-37, 262-59-73, 262-61-97 19:15 - “Autumn of my Springtime” +12 (Ticket Price - 5, 10, 15 GEL) Gabriadze Theatre 13, Shavteli Str. Tel: 8 790 98-65-91 (MagtiFix), 298-65-90

Cinema Rustaveli Cinema 5 Rustaveli Ave. Tel: 293-22-53, 2 555-000 “Puss in Boots” 3D; “Johnny English Reborn”; “The Rum Diary”; “The Watchmaker”; “City of Doll’s”; “The Three Musketeers” 3D; “Midnight in Paris”; “Stay with me”; “The Skin I Live In”; (Ticket Price - 6 - 14 GEL) “Amirani” Cinema 36 Kostava Str. Tel: 299-99-55 “Puss in Boots” 3D; “Johnny English Reborn”; “The Rum Diary”; “The Watchmaker”; “The Three Musketeers” 3D; “Stay with me”; “The Skin I Live In” (Ticket Price - 6 - 14 GEL) “Sakartvelo” Cinema 2/9, Guramishvili Ave. Tel: 230-80-80; 269-66-47 “Puss in Boots” 3D; “The Rum Diary”; “The Three Musketeers” 3D; “Stay with me” (Ticket Price - 7 - 10 GEL)

Theatre 20:00 - “Keto and Kote” (Musical) (Ticket Price - 15, 25, 30 GEL) Rustaveli Theatre (Big Stage) 17, Rustaveli Ave. Tel: 272-68-68 20:00 - “My Hamlet” (Ticket Price - 11 GEL) Marjanishvili Theatre (Theatre in Attic) 8 Marjanishvili Str. Tel: 2 955-966 19:00 - “Jeans Generation” (Ticket Price - 5, 10, 12 GEL) Liberty Theatre 2 Rustaveli Ave. Tel: 298-58-21 19:00 - “Comedy on Tragedy, or “Gull” in Georgian, during Russian Tea Drinking” (Ticket Price - 5 GEL) Ilia University Theatre 32, I. Chavchavadze Ave. Tel: 229-47-15

Gallery “Dialog’” - Solo Exhibition of Kamran Adle - Iranian famous photographer, having worked at the last Queen’s of Iran - Farah Diba Gallery 9 9, Gudiashvili Str. Tel: 299-59-54, 858 24-25-96 12:00-19:00 - Gallery “Vernissage” is pleased to invite you to Guga Kotetishvili’s exhibition - “Mirrors” Gallery “Vernissage” 7, Brothers Zubalashvili Str. Tel: 299-99-02 12:00-19:00 - Baia Gallery presents Exhibition of artworks of Georgian Artists - Artexpo XX-XXI century. Elene Akhvlediani, Petre Otskheli, Kiril Zdanevich, David Kakabadze, Shalva Kikodze, Sergo Kobuladze, Petre Bletkin, Irakli Parjiani, Merab Abramishvili, Gogi Chagelishvili, Yuri Berishvili, Levan Chogoshvili, Vakho Bugadze Baia Gallery 10 Shardeni Str. Tel: 275-45-10 12:00-22:00 - Mixed Exhibition of Georgian Artists (paintings, graphics, porcelain, enamel, woodcraft...) Gallery “Cameo” 11, Rkinis Rigi Str. Tel: 272-48-72; Mob: 593 31-92-66 12:00-19:00 - Cloisonne Art Exhibition Enamel Gallery “Ornament” 7 Erekle II Str. Tel: 298-90-13 10:00-18:00 - Modern Fine and Applied Art Exhibition “Manana Art Saloon” 12, Baratashvili Str. Tel: 293-25-90

NOVEMBER 11, 2011

Clubs, Pubs… 21:00 - Agora Live Band, DJ Datuna SkyyBar 22 Metekhi Str. Mob: 592 32-32-32 22:00 - Giorgi Tsiklauri & Khatuna Jalaghonia with David Iluridze Live Band 24:00 - DJ Club “Two Side” 7 Bambis Rigi Str. Tel: 230-30-30 22:00 - Resident DJ Tako Lounge Bar “Kalakuri” 3 Shavteli Str. Tel: 2 365-365 19:00 - New show-program and many surprises. Singers: Giorgi Tsereteli, Boris Bedia, Giorgi Tsiklauri, Mzeona Makharadze Restaurant “Bermukha” Agmashenebeli lane 13th km. Tel: 259 69 69; Mob: 598 59 69 69 20:00-23:00 - “Kalakuri’s Quartet” with live performance of city songs, and also universal songs Restaurant “Kalakuri” 3 Shavteli Str. Tel: 2 365-365 22:00 - Gio Khutsishvili & DJ Dachi Club “Kalakuri” 3 Shavteli Str. Tel: 2 365-365 20:00-23:00 - Georgian Dances Restaurant “Dzveli Sakhli” 3, Sanapiro Str. Tel: 2 365-365 21:00-24:00 - Band “Pub” Bar “Fahrenheit” 5 Vashlovani Str. Tel: 299-67-72 22:00-01:00 - Group “Comic Condition” Tavern “Scarlet Sails” 25, Leselidze Str. Tel: 293-10-28 20:30 - Maidan Jazz Band Restaurant “Maidan” 6, Rkinis Rigi Str. Tel: 275-11-88; 590 75-11-88 21:00-24:00 - Jazz Band Restaurant “Chardin 12” 12 Chardin Str. Tel: 293-15-56; Mob: 577 480-460 21:00 - Maia Baratashvili Café “Kala” 8/10 Erekle II Str. Mob: 599 79-97-37 20:00-23:30 - Georgian Folk and Pop Songs, Traditional Georgian Dances (Live Performance) Restaurant “Shadow of Metekhi” 29 K. Tsamebuli Ave. Tel: 230-30-30 20:30-23:30 - Georgian Songs (Live Performance) Restaurant “Puris Sakhli” 7 Gorgasali Str. Tel: 230-30-30 20:00-23:00 - Live Folk Music performance by “EgAri” Restaurant “Maspindzelo” at Bambis Rigi 7, Bambis Rigi Str. Tel: 230-30-30 21:00-24:00 - Band “Zarebi” (Covers) Pub “Dublin” 8 Akhvlediani Str, Tel: 298-44-67 20:00-23:00 - Classical Music - Piano and Violin Restaurant “Maspindzelo” in Abanotubani 7 Gorgasali Str. Tel: 230-30-30

Cinema Rustaveli Cinema 5 Rustaveli Ave. Tel: 293-22-53, 2 555-000

(Ticket Price - 10 GEL) Akhmeteli Theatre 8 Vekua Str. Tel: 262-54-37, 262-59-73, 262-61-97 19:15 - “Autumn of my Springtime” +12 (Ticket Price - 5, 10, 15 GEL) Gabriadze Theatre 13, Shavteli Str. Tel: 8 790 98-65-91 (MagtiFix), 298-65-90

Gallery

“Dialog’” - Solo Exhibition of Kamran Adle - Iranian famous photographer, having worked at the last Queen’s of Iran - Farah Diba Gallery 9 9, Gudiashvili Str. Tel: 299-59-54, 858 24-25-96 12:00-19:00 - Gallery “Vernissage” is pleased to invite you to Guga Kotetishvili’s exhibition - “Mirrors” Gallery “Vernissage” 7, Brothers Zubalashvili Str. Tel: 299-99-02 12:00-19:00 - Baia Gallery presents Exhibition of artworks of Georgian Artists - Artexpo XX-XXI century. Elene Akhvlediani, Petre Otskheli, Kiril Zdanevich, David Kakabadze, Shalva Kikodze, Sergo Kobuladze, Petre Bletkin, Irakli Parjiani, Merab Abramishvili, Gogi Chagelishvili, Yuri Berishvili, Levan Chogoshvili, Vakho Bugadze Baia Gallery 10 Shardeni Str. Tel: 275-45-10 12:00-22:00 - Mixed Exhibition of Georgian Artists (paintings, graphics, porcelain, enamel, woodcraft...) Gallery “Cameo” 11, Rkinis Rigi Str. Tel: 272-48-72; Mob: 593 31-92-66 12:00-19:00 - Cloisonne Art Exhibition Enamel Gallery “Ornament” 7 Erekle II Str. Tel: 298-90-13 10:00-18:00 - Modern Fine and Applied Art Exhibition “Manana Art Saloon” 12, Baratashvili Str. Tel: 293-25-90

NOVEMBER 13, 2011

Clubs, Pubs… Gallery “Dialog’” - Solo Exhibition of Kamran Adle - Iranian famous photographer, having worked at the last Queen’s of Iran - Farah Diba Gallery 9 9, Gudiashvili Str. Tel: 299-59-54, 858 24-25-96 12:00-19:00 - Gallery “Vernissage” is pleased to invite you to Guga Kotetishvili’s exhibition - “Mirrors” Gallery “Vernissage” 7, Brothers Zubalashvili Str. Tel: 299-99-02 12:00-19:00 - Baia Gallery presents Exhibition of artworks of Georgian Artists - Artexpo XX-XXI century. Elene Akhvlediani, Petre Otskheli, Kiril Zdanevich, David Kakabadze, Shalva Kikodze, Sergo Kobuladze, Petre Bletkin, Irakli Parjiani, Merab Abramishvili, Gogi Chagelishvili, Yuri Berishvili, Levan Chogoshvili, Vakho Bugadze Baia Gallery 10 Shardeni Str. Tel: 275-45-10 12:00-22:00 - Mixed Exhibition of Georgian Artists (paintings, graphics, porcelain, enamel, woodcraft...) Gallery “Cameo” 11, Rkinis Rigi Str. Tel: 272-48-72; Mob: 593 31-92-66 12:00-19:00 - Cloisonne Art Exhibition Enamel Gallery “Ornament” 7 Erekle II Str. Tel: 298-90-13 10:00-18:00 - Modern Fine and Applied Art Exhibition “Manana Art Saloon” 12, Baratashvili Str. Tel: 293-25-90

NOVEMBER 12, 2011

Clubs, Pubs… 21:00 - Band “Wheels”, DJ Datuna SkyyBar 22 Metekhi Str. Mob: 592 32-32-32 22:00 - Nodiko Tatishvili, Khatuna Jalaghonia & Maka Gamkrelidze with David Iluridze Live Band 24:00 - DJ Club “Two Side” 7 Bambis Rigi Str. Tel: 230-30-30 22:00 - Resident DJ Tako Lounge Bar “Kalakuri” 3 Shavteli Str. Tel: 2 365-365 19:00 - New show-program and many surprises. Singers: Giorgi Tsereteli, Boris Bedia, Giorgi Tsiklauri, Mzeona Makharadze Restaurant “Bermukha” Agmashenebeli lane 13th km. Tel: 259 69 69; Mob: 598 59 69 69 20:00-23:00 - “Kalakuri’s Quartet” with live performance of city songs, and also universal songs Restaurant “Kalakuri” 3 Shavteli Str. Tel: 2 365-365 22:00 - Merab Sephashvili & DJ Dachi Club “Kalakuri” 3 Shavteli Str. Tel: 2 365-365 20:00-23:00 - Georgian Dances Restaurant “Dzveli Sakhli” 3, Sanapiro Str. Tel: 2 365-365 21:00-24:00 - “Cloud Blues Band” Bar “Fahrenheit” 5 Vashlovani Str. Tel: 299-67-72 22:00-01:00 - Group “Comic Condition” Tavern “Scarlet Sails” 25, Leselidze Str. Tel: 293-10-28 20:30 - Maidan Jazz Band Restaurant “Maidan” 6, Rkinis Rigi Str. Tel: 275-11-88; 590 75-11-88 21:00-24:00 - Jazz Band Restaurant “Chardin 12” 12 Chardin Str. Tel: 293-15-56; Mob: 577 480-460 21:00 - Keti Paresashvili Café “Kala” 8/10 Erekle II Str. Mob: 599 79-97-37 20:00-23:30 - Georgian Folk and Pop Songs, Traditional Georgian Dances (Live Performance) Restaurant “Shadow of Metekhi” 29 K. Tsamebuli Ave. Tel: 230-30-30 20:30-23:30 - Georgian Songs (Live Performance) Restaurant “Puris Sakhli” 7 Gorgasali Str. Tel: 230-30-30 20:00-23:00 - Live Folk Music performance by “EgAri” Restaurant “Maspindzelo” at Bambis Rigi 7, Bambis Rigi Str. Tel: 230-30-30 20:00-23:00 - Classical Music - Piano and Violin Restaurant “Maspindzelo” in Abanotubani 7 Gorgasali Str. Tel: 230-30-30 21:00-24:00 - Band “Rustavi 2” (Covers) Pub “Dublin” 8 Akhvlediani Str, Tel: 298-44-67

Cinema Rustaveli Cinema 5 Rustaveli Ave. Tel: 293-22-53, 2 555-000 “Puss in Boots” 3D; “Johnny English Reborn”; “The Rum Diary”; “The Watchmaker”; “City of Doll’s”; “The Three Musketeers” 3D; “Midnight in Paris”; “Stay with me”; “The Skin I Live In”; (Ticket Price - 6 - 14 GEL) “Amirani” Cinema 36 Kostava Str. Tel: 299-99-55 “Puss in Boots” 3D; “Johnny English Reborn”; “The Rum Diary”; “The Watchmaker”; “The Three Musketeers” 3D; “Stay with me”; “The Skin I Live In” (Ticket Price - 6 - 14 GEL) “Sakartvelo” Cinema 2/9, Guramishvili Ave. Tel: 230-80-80; 269-66-47 “Puss in Boots” 3D; “The Rum Diary”; “The Three Musketeers” 3D; “Stay with me” (Ticket Price - 7 - 10 GEL)

Theatre 19:00 - “Attila” (Ticket Price - 5 - 15 GEL) Tbilisi V. Sarajishvili State Conservatory (Grand Stage) 8 Griboedov Str. Tel: 293-46-24 19:45 - “Twelve Angry Men” (Ticket Price - 6, 7, 8, 9, 10, 12 GEL) Rustaveli Theatre (Grand Stage) 17, Rustaveli Ave. Tel: 272-68-68 19:00 - “The Caucasian Chalk Circle” (Ticket Price - 5, 10, 15 GEL) Liberty Theatre 2 Rustaveli Ave. Tel: 298-58-21 18:00 - “Killing a Man” (Ticket Price - 5 GEL) Griboedov Theatre 2 Rustaveli Ave. Tel: 293-11-06 19:00 - “Opera Mafioso” (Ticket Price - 5 GEL) Ilia University Theatre 32, I. Chavchavadze Ave. Tel: 229-47-15 19:00 - “Unfinished Terrace” -

21:00 - Agora Live Band, DJ Datuna SkyyBar 22 Metekhi Str. Mob: 592 32-32-32 22:00 - Band “Band’a’roll” 24:00 - DJ Club “Two Side” 7 Bambis Rigi Str. Tel: 230-30-30 19:00 - New show-program and many surprises. Singers: Giorgi Tsereteli, Boris Bedia, Giorgi Tsiklauri, Mzeona Makharadze Restaurant “Bermukha” Agmashenebeli lane 13th km. Tel: 259 69 69; Mob: 598 59 69 69 20:00-23:00 - “Kalakuri’s Quartet” with live performance of city songs, and also universal songs Restaurant “Kalakuri” 3 Shavteli Str. Tel: 2 365-365 22:00 - Karaoke Party! Host - Salome Gogiashvili & DJ Dachi Club “Kalakuri” 3 Shavteli Str. Tel: 2 365-365 20:00-23:00 - Georgian songs with live performance Restaurant “Dzveli Sakhli” 3, Sanapiro Str. Tel: 2 365-365 20:30 - Georgian folk ensemble “Urmuli”, georgian dances Restaurant “Maidan” 6, Rkinis Rigi Str. Tel: 275-11-88; 590 75-11-88 21:00-24:00 - Jazz Band Restaurant “Chardin 12” 12 Chardin Str. Tel: 293-15-56; Mob: 577 480-460 21:00 - Live Band Café “Kala” 8/10 Erekle II Str. Mob: 599 79-97-37 20:00-23:30 - Georgian Folk and Pop Songs (Live Performance) Restaurant “Shadow of Metekhi” 29 K. Tsamebuli Ave. Tel: 230-30-30 20:30-23:30 - Georgian Songs (Live Performance) Restaurant “Puris Sakhli” 7 Gorgasali Str. Tel: 230-30-30 20:00-23:00 - Live Folk Music performance by “EgAri” Restaurant “Maspindzelo” at Bambis Rigi 7, Bambis Rigi Str. Tel: 230-30-30 20:00-23:00 - Classical Music - Piano and Violin Restaurant “Maspindzelo” in Abanotubani 7 Gorgasali Str. Tel: 230-30-30 21:00-24:00 - Band “Rustavi 2” (Covers) Pub “Dublin” 8 Akhvlediani Str, Tel: 298-44-67

Cinema Rustaveli Cinema 5 Rustaveli Ave. Tel: 293-22-53, 2 555-000 “Puss in Boots” 3D; “Johnny English Reborn”; “The Rum Diary”; “The Watchmaker”; “City of Doll’s”; “The Three Musketeers” 3D; “Midnight in Paris”; “Stay with me”; “The Skin I Live In”; (Ticket Price - 6 - 14 GEL) “Amirani” Cinema 36 Kostava Str. Tel: 299-99-55 “Puss in Boots” 3D; “Johnny English Reborn”; “The Rum Diary”; “The Watchmaker”; “The Three Musketeers” 3D; “Stay with me”; “The Skin I Live In” (Ticket Price - 6 - 14 GEL) “Sakartvelo” Cinema 2/9, Guramishvili Ave. Tel: 230-80-80; 269-66-47 “Puss in Boots” 3D; “The Rum Diary”; “The Three Musketeers” 3D; “Stay with me” (Ticket Price - 7 - 10 GEL)

Theatre 19:45 - “The Hunting Season” (Ticket Price - 6, 10, 12, 15, 17, 20 GEL) Rustaveli Theatre (Grand Stage) 17, Rustaveli Ave. Tel: 272-68-68 19:00 - “Dolls’ House” (Ticket Price - 5, 7, 10, 12 GEL) Liberty Theatre 2 Rustaveli Ave. Tel: 298-58-21 12:00 - “Scarlet Flower” (Ticket Price - 5 GEL) Griboedov Theatre 2 Rustaveli Ave. Tel: 293-11-06 19:00 - “Instinct” (Ticket Price - 5 GEL) Ilia University Theatre 32, I. Chavchavadze Ave. Tel: 229-47-15 19:00 - “Taxi Driver Givi’s Love Story” (Ticket Price - 7, 10 GEL) Akhmeteli Theatre 8 Vekua Str. Tel: 262-54-37, 262-59-73, 262-61-97 19:15 - “The Battle of Stalingrad” +12 (in russian) (Ticket Price - 5, 10, 15 GEL) Gabriadze Theatre 13, Shavteli Str. Tel: 8 790 98-65-91 (MagtiFix), 298-65-90

Gallery “Dialog’” - Solo Exhibition of Kamran Adle - Iranian famous photographer, having worked at the last Queen’s of Iran - Farah Diba Gallery 9 9, Gudiashvili Str. Tel: 299-59-54, 858 24-25-96 12:00-19:00 - Baia Gallery presents Exhibition of artworks of Georgian Artists - Artexpo XX-XXI century. Elene Akhvlediani, Petre Otskheli, Kiril Zdanevich, David Kakabadze, Shalva Kikodze, Sergo Kobuladze, Petre Bletkin, Irakli Parjiani, Merab Abramishvili, Gogi Chagelishvili, Yuri Berishvili, Levan Chogoshvili, Vakho Bugadze Baia Gallery 10 Shardeni Str. Tel: 275-45-10 12:00-22:00 - Mixed Exhibition of Georgian Artists (paintings, graphics, porcelain, enamel, woodcraft...) Gallery “Cameo” 11, Rkinis Rigi Str. Tel: 272-48-72; Mob: 593 31-92-66 12:00-19:00 - Cloisonne Art Exhibition Enamel Gallery “Ornament” 7 Erekle II Str. Tel: 298-90-13 10:00-18:00 - Modern Fine and Applied Art Exhibition “Manana Art Saloon” 12, Baratashvili Str. Tel: 293-25-90 For more information, please, visit the following website:

www.info-tbilisi.com E-mail: afisha@info-tbilisi.com


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FINANCIAL HEADLINE NEWS & ANALYSIS FINCHANNEL.COM | NOVEMBER 7, 2011

19

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20

HEADLINE NEWS & ANALYSIS

NOVEMBER 7, 2011 | FINCHANNEL.COM

energy prices in europe

THE LONG ROAD

FUEL PRICES Unleaded (Superbleifrei, Euro sans plomb, Euro95)

November 5, 2011 MEMBER STATE

RETAIL PRICE

Diesel (Gazole, Gasóleo) RETAIL PRICE

PRICE EXCLUDING VAT

PRICE EXCLUDING VAT

Austria

€ 1.441

€ 1.201

€ 1.394

Belgium

€ 1.570

€ 1.298

€ 1.470

Bulgaria

€ 1.229

Cyprus

€ 1.230

Czech Republic

€ 1.405

34.70Kþ

€ 1.171

28.92Kþ

€ 1.401

34.60Kþ

€ 1.168

28.83Kþ

Denmark

€ 1.652

12.29kr

€ 1.322

9.83kr

€ 1.560

11.61kr

€ 1.248

9.29kr

Estonia

€ 1.280

€ 1.067

€ 1.320

€ 1.100

Finland

€ 1.552

€ 1.262

€ 1.366

€ 1.111

France

€ 1.590

€ 1.329

€ 1.420

€ 1.187

Germany

€ 1.560

€ 1.311

€ 1.452

€ 1.220

Greece

€ 1.668

€ 1.356

€ 1.491

Hungary

€ 1.323

Ireland

€ 1.487

€ 1.229

€ 1.428

Italy

€ 1.595

€ 1.329

€ 1.484

Latvia

€ 1.275

Ls0.897

€ 1.045

Ls0.735

€ 1.306

Ls0.919

€ 1.070

Ls0.753

Lithuania

€ 1.313

Lt4.53

€ 1.085

Lt3.74

€ 1.235

Lt4.26

€ 1.021

Lt3.52

Luxembourg

€ 1.279

€ 1.112

€ 1.205

€ 1.048

Malta

€ 1.410

€ 1.195

€ 1.310

€ 1.110

Netherlands

€ 1.662

€ 1.397

€ 1.399

Poland

€ 1.228

Portugal

€ 1.570

Romania

€ 1.250

Slovakia

€ 1.464

€ 1.220

€ 1.346

€ 1.122

Slovenia

€ 1.320

€ 1.100

€ 1.269

€ 1.058

Spain

€ 1.310

€ 1.110

€ 1.308

Sweden United Kingdom

€ 1.528 € 1.584

EU AVERAGE

€ 1.470

2.41ɥɜ.

€ 1.024

€ 1.058

5.32zá

€ 0.998

5.40lei

€ 1.008

13.93kr £1.388

€ 1.222

11.14kr

€ 1.320

£1.157

€ 1.579 € 1.640

€ 1.176

5.34zá

€ 1.002

4.34zá

€ 1.167

5.48lei

€ 1.023

4.42lei

€ 1.108

14.39kr £1.437

€ 1.374

€ 1.189

325Ft

€ 1.237

€ 1.269

4.35lei

€ 1.074 € 1.180

€ 1.435

€ 1.276

2.08ɥɜ .

€ 1.212

406Ft

€ 1.232

4.33zá

€ 1.058 € 1.096

€ 1.343

320Ft

€ 1.263

11.51kr

€ 1.367

£1.198

€ 1.141

ELECTRICITY HOUSEHOLDS Consumption: 3,500 kWh/year EU-member state € per kWh electricity Austria € 0.2079 Belgium € 0.2137 Bulgaria € 0.0907 Cyprus € 0.2044 Czech Rep, € 0.1461 Denmark € 0.2947 Estonia € 0.1089 Finland € 0.1501 France € 0.1396 Germany € 0.2671 Greece € 0.1320 Hungary € 0.1714 Ireland € 0.2050 Italy € 0.2041 Latvia € 0.1125 Lithuania € 0.1307 Luxembourg € 0.1926 Malta € 0.1703 Netherlands € 0.1892 Poland € 0.1509 Portugal € 0.1813 Romania € 0.1134 Slovakia € 0.1768 Slovenia € 0.1557 Spain € 0.2013 Sweden € 0.1967 United Kingdom € 0.1587

Consumption: 7,500 kWh/year EU-member state € per kWh electricity Austria € 0.1888 Belgium € 0.1911 Bulgaria € 0.0909 Cyprus € 0.2029 Czech Rep, € 0.1212 Denmark € 0.2553 Estonia € 0.1061 Finland € 0.1313 France € 0.1254 Germany € 0.2511 Greece € 0.1527 Hungary € 0.1632 Ireland € 0.1840 Italy € 0.2568 Latvia € 0.1126 Lithuania € 0.1268 Luxembourg € 0.1796 Malta € 0.1803 Netherlands € 0.2336 Poland € 0.1458 Portugal € 0.1650 Romania € 0.1119 Slovakia € 0.1575 Slovenia € 0.1422 Spain € 0.1839 Sweden € 0.1707 United Kingdom € 0.1432

©Europe’s Energy Portal. Notes: - End-user price, includes all taxes. - Price data for non-eurozone countries are in euro. The average exchange rate valid for the referenced month is applied. - Amount is in euro (€) per kiloWatthour (kWh). - Consumption band is ± 25% for 3.5 MWh and ± 30% for 7.5 MWh consumption

FUEL TAXES November 5, 2011

Unleaded (Superbleifrei, Euro s ans plomb, Euro95)

MEMBER STATE

FOB

MARGIN

EXCISE

VAT

RETAIL

FOB

MARGIN

EXCISE

VAT

RETAIL

€ 0.505

€ 0.110

€ 0.586

€ 0.240

€ 1.441

€ 0.505

€ 0.185

€ 0.472

€ 0.232

€ 1.394

Austria

The Greek Tragedy: The Unfolding Drama Guy de Fontgalland

€ 1.215

2.49ɥɜ.

€ 1.260

€ 1.070

400Ft

€ 1.162

€ 1.270

2.01ɥɜ .

FINANCIAL

Diesel (Gazole, Gas óleo)

Belgium

€ 0.497

€ 0.157

€ 0.643

€ 0.272

€ 1.570

€ 0.497

€ 0.263

€ 0.455

€ 0.255

€ 1.470

Bulgaria

€ 0.500

€ 0.131

€ 0.393

€ 0.205

€ 1.229

€ 0.500

€ 0.185

€ 0.373

€ 0.212

€ 1.270

Cyprus

€ 0.505

€ 0.174

€ 0.391

€ 0.160

€ 1.230

€ 0.505

€ 0.237

€ 0.354

€ 0.164

€ 1.260

Czech Republic

€ 0.510

€ 0.135

€ 0.526

€ 0.234

€ 1.405

€ 0.510

€ 0.207

€ 0.451

€ 0.234

€ 1.401

Denmark

€ 0.500

€ 0.201

€ 0.621

€ 0.330

€ 1.652

€ 0.500

€ 0.265

€ 0.483

€ 0.312

€ 1.560

Estonia

€ 0.500

€ 0.136

€ 0.431

€ 0.213

€ 1.280

€ 0.500

€ 0.181

€ 0.419

€ 0.220

€ 1.320

Finland

€ 0.510

€ 0.159

€ 0.593

€ 0.290

€ 1.552

€ 0.510

€ 0.244

€ 0.357

€ 0.255

€ 1.366

France

€ 0.505

€ 0.137

€ 0.688

€ 0.261

€ 1.590

€ 0.505

€ 0.194

€ 0.488

€ 0.233

€ 1.420

Germany

€ 0.500

€ 0.131

€ 0.680

€ 0.249

€ 1.560

€ 0.500

€ 0.225

€ 0.495

€ 0.232

€ 1.452

Greece

€ 0.510

€ 0.172

€ 0.674

€ 0.312

€ 1.668

€ 0.510

€ 0.271

€ 0.432

€ 0.279

€ 1.491

Hungary

€ 0.515

€ 0.143

€ 0.401

€ 0.265

€ 1.323

€ 0.515

€ 0.212

€ 0.347

€ 0.269

€ 1.343

Ireland

€ 0.515

€ 0.172

€ 0.542

€ 0.258

€ 1.487

€ 0.515

€ 0.198

€ 0.468

€ 0.248

€ 1.428

Italy

€ 0.510

€ 0.197

€ 0.622

€ 0.266

€ 1.595

€ 0.510

€ 0.250

€ 0.477

€ 0.247

€ 1.484

Latvia

€ 0.505

€ 0.167

€ 0.373

€ 0.230

€ 1.275

€ 0.505

€ 0.252

€ 0.314

€ 0.236

€ 1.306

Lithuania

€ 0.510

€ 0.165

€ 0.410

€ 0.228

€ 1.313

€ 0.510

€ 0.228

€ 0.283

€ 0.214

€ 1.235

Luxembourg

€ 0.505

€ 0.145

€ 0.462

€ 0.167

€ 1.279

€ 0.505

€ 0.223

€ 0.320

€ 0.157

€ 1.205

Malta

€ 0.515

€ 0.211

€ 0.469

€ 0.215

€ 1.410

€ 0.515

€ 0.213

€ 0.382

€ 0.200

€ 1.310

Netherlands

€ 0.500

€ 0.150

€ 0.747

€ 0.265

€ 1.662

€ 0.500

€ 0.229

€ 0.446

€ 0.223

€ 1.399

Poland

€ 0.505

€ 0.103

€ 0.391

€ 0.230

€ 1.228

€ 0.505

€ 0.179

€ 0.318

€ 0.230

€ 1.232

Portugal

€ 0.510

€ 0.166

€ 0.601

€ 0.294

€ 1.570

€ 0.510

€ 0.259

€ 0.398

€ 0.268

€ 1.435

Romania

€ 0.500

€ 0.152

€ 0.356

€ 0.242

€ 1.250

€ 0.500

€ 0.224

€ 0.299

€ 0.246

€ 1.269

Slovakia

€ 0.505

€ 0.145

€ 0.570

€ 0.244

€ 1.464

€ 0.505

€ 0.211

€ 0.406

€ 0.224

€ 1.346

Slovenia

€ 0.505

€ 0.132

€ 0.464

€ 0.220

€ 1.320

€ 0.505

€ 0.181

€ 0.372

€ 0.212

€ 1.269

Spain

€ 0.510

€ 0.162

€ 0.439

€ 0.200

€ 1.310

€ 0.510

€ 0.239

€ 0.360

€ 0.200

€ 1.308

Sweden United Kingdom

€ 0.505 € 0.500

€ 0.121 € 0.124

€ 0.596 € 0.696

€ 0.306 € 0.264

€ 1.528 € 1.584

€ 0.505 € 0.500

€ 0.234 € 0.178

€ 0.524 € 0.689

€ 0.316 € 0.273

€ 1.579 € 1.640

Guy de Fontgalland

T

he Euro, Its origins, Development and Prospects written by Chris Mulhearn and Howard R. Vane, published by a relatively small publishing company in the United Kingdom in 2008 needs to be read by anyone who wishes to understand the political and financial dimensions of the Euro, the Euro zone , the evolution of the political history of Europe as a unified entity and the difficulties of managing the transatlantic alliance in currency power-sharing between the dollar and the Euro. Chris Mulhearn is a purebred academic from the Liverpool John Moores University, a soft-spoken, austere, unassuming professor with commendable insights into the realities of global economics. As my guide and supervisor of my doctorate program, we have developed an open and rewarding relationship to the extent we both explore the frontiers of economic and financial phenomena, normally uncommon to the supervisorstudent relationship. A month ago, in Liverpool, he invited me to an old traditional Italian restaurant. Over lunch, we contemplated the future of Euro as a currency. We talked about the gathering storms of sovereign debts, propelled mostly by the frivolous borrowing and spending by governments in and out of the European community, fuelled by the investment bankers who prided themselves in buying Euro bonds from sovereign governments and pumping unrealistic amounts of money into sovereign coffers in the belief that Euro was probably taking over the United States dollar, the mighty greenback, as the global currency of the future. We talked about the triangle of conflict, opposing agendas and strategies of three major currencies for global dominance: the United states dollar, the Euro and the Chinese Reminbi ( Yuan). The European Financial Stability Fund (ESF) born on the midnight of October 26th in Brussels to bail out European banks through recapitalisation and save Greece from defaulting seems to be off the rails as a forceful and adequate strategy. The Greek Prime Minister George Papandreu introduced a new wave of surprise when he declared a referendum in Greece to ask the people whether they wish to stay in the Euro zone or go back to their Drachma. The G20 group of nations meeting in Cannes, France are now locked in debates over what exactly should be done to resolve the crisis of Euro being sidelined as a not-so-important currency on the one hand and averting a European and global growth slowdown on the other. French President Sarkozy and Angela Merkel of Germany who, despite their differences, announced the EFSF just a week ago were shocked and betrayed by the Greek Prime Minister for calling a referendum on the Euro and have been, as I write this column, talking to him to back

off from the referendum in Greece. And Greece is divided on the issue and it may indeed be likely that, if the referendum is held, Greeks may just wish to go back to the Drachma, forget the Euro zone as a bad dream, and slip back into their old traditions of living very differently from the fasttrack European way of life. In Cannes, as the G20 leaders assembled to discuss the euro crisis, President Nikolas Sarkozy gave a press conference and defended the Euro as the only way to save the political unity of Europe. He said that the break-up of the Euro zone would mean the break-UP of Europe as one unified political entity with disastrous consequences. US President Barack Obama joined the chorus and insisted that the Euro zone and European crisis must be resolved expeditiously in order to save Europe and avoid a global financial and economic crisis, while British Prime Minister

all from a collection of different countries, from Georgia to Latvia and beyond. I asked my friend who was my host. She said that “Greeks would not do these jobs”. I was astonished that despite the massive unemployment in Greece, people would not work in hotels, sweep the streets or work in farms. The young generation has suddenly become very different. Greece does not have any major manufacturing base and depended for a long time from its shipping prowess, the olive oil most of which is sold crude and refined overseas, some minor industrial production and the largest segment of the labour force in government service, pushing papers and building a complex bureaucracy of gigantic proportion where very little was ever done by an army of white collar workers. I found the work ethics in Greece to be somewhat lethargic and pretentious and thought to

David Cameron warned that UK will not back International Monetary Fund’s unlimited increase in bail-out funds. Greek Prime Minister’s decision to go to the people to ask for their opinion in the referendum on the Euro zone begs a number of questions: first is whether the Greeks do want the bail-out plan of massive austerity measures imposed on them by the European community , even though fifty per cent of their debt is to be forgiven and to be absorbed by European banks, who in turn will be bailed out by the European Financial Stability Fund. The second question is whether Greeks really think that they are part of the greater Europe, culturally, emotionally and indeed in their way of life. Greece is now blamed as the pariah of the European community and its woes, and Sarkozy pointed out that Ireland, Spain, Portugal and even Italy are more respectful of the austerity measures imposed on them for the bail-out funds they received. And so, why do the Greeks continue the months- long protests, the strikes that paralyze every artery of the Greek economy and drive people to the frenzy of despair. I went on a brief holiday to Herlakion in Greece last year and stayed in a beach side resort for a week. I was somewhat surprised that most workers, from the gardener to the cook, from the maid to the maintenance men were

myself that perhaps, this was the way the world was to be, relaxed, happy and undaunted by the speed of growth taking place in countries like Turkey. Greeks, admirably, defiantly and loveably were different from the rest of Europeans. If France and Germany tell them how to live poor, the message is a recipe for revolt in a nation which was the cradle of philosophy and civilisation. Europe and Euro are in a watershed of history. The current, fast-changing events will have a long and decided impact on the future of not only Europe, but also on global trade and cross border alliances. In the hot politics of Europe and its crisis, the US economy, the protestors at Wall Street, the middle East crisis with the new Libya in disarray, Syria’s struggle for containing the contagion of the Arab spring, the elections in Tunisia, the unresolved issues on the future of Egypt, the triple disasters in Japan, the floods in Thailand, earthquake in Turkey and all the myriad of events which will mark 2010 as one of the most difficult years, have all become a mere side-show for the media. What is really disturbing to watchers of global events is that 2012 and the next years may be equally uncertain, and our celebration of the seven billionth baby in Philippines may indeed augur the greatest challenges for national development strategists in emerging nations like Georgia.


CMYK

FINANCIAL HEADLINE NEWS & ANALYSIS FINCHANNEL.COM | NOVEMBER 7, 2011

21

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22

HEADLINE NEWS & ANALYSIS

FINANCIAL

NOVEMBER 7, 2011 | FINCHANNEL.COM

US business in Georga

Helping Georgia Prosper

By NANA MGHEBRISHVILI The FINANCIAL A. Mobilized in October 2010, the EPI team engaged in dialogue with numerous Georgian firms, government of Georgia officials, business associations and think tanks to understand the business trends and analyzed any available data to identify sectors with economic potential in Georgia. Based on this initial analysis, EPI conducted deeper sector analysis and feasibility assessments to identify several value chains with the highest development impact potential to achieve long-term sustained economic growth and meet project result targets, such as increased foreign investment, domestic finance, increased employment and productivity.

The goal of USAID’s four-year $40 million Economic Prosperity Initiative (EPI) is to serve as a catalyst to spur investments and increased employment and productivity in agriculture and high-export manufacturing and services sectors. Tina Mendelson, EPI Chief of Party stakeholders, EPI initiated the amendments and the law was passed in the spring of 2011, freeing transportation of “foreign goods” and related services from VAT. This not only brought Georgia in line with the best practices, but supported competitiveness of Georgian

We have been successful in wine tourism - finally Georgia is starting to appear on the worldwide wine map. In addition to the sectors we focus on, we are also supporting targeted activities in transport and logistics and ICT sectors, recognizing these two sectors’ tremendous importance for other value chains. In partnership with businesses and Georgian business associations, EPI also supports activities aiming to address target policy constraints and opportunities for further improvement of the economic environment, such as tax and customs, regulatory environment, procurement, privatization and property rights. To help our value chains succeed, EPI provides services to selected value chains in the areas of workforce education, access to finance, investment promotion and management services, jointly with GNIA, business acumen/economic knowledge development and gender and youth integration. Q. What would you claim as EPI’s biggest achievement in Georgia? A. It is not easy to focus on just one achievement, as the project is complex, incorporating different tasks and activities. During this very first year we enjoyed successful beginning of many initiatives: last year we supported export of Georgian agricultural products worth of 3 million USD, mainly hazelnuts and fruits; recently, the leasing law, on which we had been working hard together with Georgian government and business associations, has been adopted and we are very proud of it. The whole reform and the new law will help both, the leasing companies and businesses, especially in agriculture, to succeed. We have supported number of reforms in Customs and Tax: together with private sector

transport and logistics sector as well. We have made steps forward in apparel sector: helped Georgian manufacturers to establish contacts with large manufacturing firms in Turkey, improved apparel business environment through supporting number of reforms pertaining customs and tax. We have been successful in wine tourism - finally Georgia is starting to appear on the worldwide wine map. All these achievement are important not just for a particular sector, but for Georgia’s economy as a whole. I think we had a very good start, but these three years we will be doing much more to achieve our main goal: help Georgia prosper. Q. The EPI Project will be implemented through four components in Georgia. What are they and how these components were chosen? A. The project is designed as a four-component entity to support Georgia’s economic growth. The first two: Agricultural and Manufacturing & Services components are targeting private sector development in these sectors. EPI considers agriculture and manufacturing/ services sectors as key drives for Georgian economy. That is why the project has those two components. Agricultural and Manufacturing & Services components are oriented toward alleviating current bottlenecks in these fields, implementing best international practices, increasing productivity and sales. However, the business environment in which these value chains operate is just as important as productivity increase. That is what our third, Business Enabling Environment, Component focuses on. The BEE Component’s main goal is

to deepen and expand the policy and regulatory reforms, recently passed by Georgian government. And finally, EPI’s Crosscutting Component is designed to provide respective resources and tools to the other component teams to ensure proper program delivery. This component is committed to upgrade workforce skills in target value chains,

holders to learn about latest trends of an industry, best international practices and technologies. At the same time, our workforce development plan addresses the issue of having skilled labor to enhance productivity and ensure better yield management. Q. What are the main worldwide opportunities for Georgian agri-

“Currently we focus on providing technical assistance in eleven value chains and sectors, such as open field and greenhouse vegetable production, mandarins, and hazelnuts in agricultural sector, as well as apparel, wine and Meetings Incentive Congresses and Exhibitions (MICE) tourism, packaging and perlite value chains in manufacturing and services sectors”. integrate youth/women into increase access to finance, improve the quality of economic information in Georgia and create a sustainable capacity of Georgian organizations to implement a targeted approach to investment promotion, while attracting foreign investments in target value chains. Q. EPI aims to expand market linkages and improve the competitiveness of Georgian agriculture and agri-businesses. How well EPI is implementing this? A. We have been pretty successful in establishing partnerships between Georgian suppliers and foreign wholesalers. EPI has already connected number of Georgian hazelnut producers and fruit and vegetable processing firms with Turkish, Scandinavian, German, Hungarian and Chinese buyers. As I mentioned earlier, this effort turned into contracts of 3 million USD. EPI will continue to promote market linkages with potential international buyers or investors. In order to improve the competitiveness of Georgian agriculture products, EPI is implementing knowledge plots and knowledge centers, where farmers can receive practical trainings on production, post-harvest handling and storage techniques, using appropriate modern equipment. Apart from this, we have a comprehensive theoretical training program, which allows Georgian farmers and other stake-

culture? A. Georgia’s agricultural sector has tremendous potential, however Georgia still imports broad variety of agricultural products, especially vegetables and fruits during an off-season. There is unmet demand on local vegetable and fruit production domestically. I think this is the issue that needs to be addressed first. Greenhouse and cold storage facility development is very important for offsetting imports and increasing sales of agricultural products domestically. Proper management, certification and accreditation systems, access to finance, modern technologies and the best international practices – all these pave the way to the enhanced competitiveness of Georgia’s agricultural products, which in its turn, entails boosting exports in different countries at a later stage. If these systems work properly, Georgian agricultural products can be exported in many countries across the world. Q. What would you say about manufacturing and services sector? How well is EPI operating in this sector? A. The overall goal for EPI‘s Manufacturing and Services sector is to increase the export potential and competitiveness among a portfolio of manufacturing and services value chains. This is achieved by taking Georgian value chain representatives to the market – to investors, buyers and tour-

ists –and by increasing skills and private sector capacity to meet market needs. We did pretty well to get foreign investors interested in the apparel sector. Through creation of market linkages, there are initial sample orders by foreign buyers there. We hope this will turn into a long-term partnership and more contracts for local apparel manufacturers. EPI also partnered with value chain groups and associations to raise international awareness of Georgian wine tourism, cultivated business interest by a nascent Georgian paper packaging value chain to support the demand of local – and possibly regional – agricultural producers and processors, and catalyzed ICT sector commitment to support development of new E-ID software applications. We will continue dialogue and advice in the areas of technology enhancement, sales and marketing, business management, and specific industry/technical skills, and promote cost-effective and targeted international and domestic promotion of value chain products to increase awareness, interest and motivation in procuring these products and services worldwide. Q. What are the main activities EPI performs for? A. We address several areas relevant to Georgia‘s business environment: business regulation and licensing, strengthening property rights, investment sector economic governance, trade and customs economic governance, tax administration, procurement/privatization, and agricultural policy. We think that these are the areas crucial for business de-

hope we will be successfully addressing these challenges in next three years. Q. What are the main tools and means EPI tries to grow worldwide awareness of Georgia as a place for doing business? A. EPI has targeted specific value chains for promoting investments, as we believe that this sector-specific approach will bring more results. We are also using this approach when targeting potential investors. On the one hand, the profile, perceptions and the preferences of an investor serve as a basis for selecting our promotional tools. On the other hand, Georgia, as a country, has many characteristics that are very persuasive to potential investors. By matching these characteristics with investors’ needs and desires will make our investment promotion efforts successful. For promoting Georgia as a favorable place to do business, our sector-specific approach utilizes standard promotional methods, such as featuring our value chains in international exhibitions, conferences and promotional campaigns. Additionally, we also promote these sectors with more creative marketing tactics, such as our recent activities where EPI invited international wine masters to visit Georgia. We expect this to have a significant impact because their opinions affect the preferences of wine tourists across the world. One of the most important activities that we undertake is building capacity of local investment promotion institutions, so that they can successfully promote Georgia as a preferable place for doing business and

Georgia’s agricultural sector has tremendous potential, however Georgia still imports broad variety of agricultural products, especially vegetables and fruits during an off-season. velopment. EPI is rendering technical assistance to draft laws and policy regulations and supports e-Governance initiatives. Our approach is to deepen and improve overall investment environment through specific projects envisioning awareness building activities, legislative drafting, and increased public-private dialogue. Q. What are the main challenges Georgia faces currently in terms of business making? A. Streamlining production processes, improving services, using modern approaches and technologies, acquiring knowledge of best international practices, introducing certification and accreditation systems, facilitating access to capital, creating market linkages – all these are the challenges for private sector today and we

implement targeted investment promotion strategies. Building this capacity is vital for successful, long-term investment promotional activities. Q. What is the main challenge for EPI and how are you trying to overcome the challenge? A.I would say that the challenge for EPI is also the challenge for the whole Georgia. I would describe it by one word: “competitiveness”. Georgia is blessed with strategic location, beautiful landscape, numerous historical places, and talented, energetic people. It has many assets that can be utilized for achieving success. We believe that the project together with Georgian people can meet this challenge.


CMYK

FINANCIAL HEADLINE NEWS & ANALYSIS FINCHANNEL.COM | NOVEMBER 7, 2011 SANCHO

23, Akhvlediani Str. Tel: (+995 32) 2982598

SANTA FE

20, Akhvlediani Str. Tel: (+995 32) 2935848

COFFEE GE

27, Abashidze Str. Tel: (+995 32) 2225066

TOUKAN

23

| places we strongly reccommend to visit | PICASSO

Hangar Bar

VERA STEAKHOUSE

SEGAFREDO ZANETTI ESPRESSO

TSISKVILI

# 71 Vazha-phavela Ave.

37, Kostava Str. Tel: (+995 32) 2983767

26, Chavchavadze Ave Tel: (+995 32) 2223677

PREGO

DUBLIN IRISH PUB

BUFFALO BILL

SIANG-GAN

8, Kiacheli Str. Tel: (+995 32) 2996553

Red Café - Bistro & Cafe Tel: 2201 211 info@redcafe.ge

2, Vazha pshavela Ave. Tel: 373610 7, Paliashvili Str. Tel: 225 22 58 25, Tarkhnishvili Str. Tel: 225 25 16

DISCOVERY

40, Chavchavadze Ave. Tel: (+995 32) 2294230

13 Taktakishvili Str. Tel: 591198398 20 Rustaveli Ave. Tel: 591193968 19 Petriashvili Str; 7 Pekini Str.

8, Akhvlediani Str. Tel: (+995 32) 2984467

Belle Ville

4, Vashlovani Str. Tel: (+995 32) 2989086

16, Akhvlediani Str. Tel: (+995 32) 2936052

# 20 Shavteli Str. Tel: (+995 32) 293 10 80

Beliashvili Str. Tel: (+995 32) 2530797

41, Gamsakhurdia Str. Tel: (+995 32) 2379688

Better seen than heard

ENGLISH TEE HOUSE

26, l.Kiacheli Str. Tel: (+995 32) 293 65 53

French - European bar-restaurant Pleasant and cozy atmosphere High quality service, live music every day

4

2 24/

Better seen than heard

Entree

dining

DONUTS

10/12, Abashidze Str. Tel: (+995 32) 2253985

5, Marjanishvili Str. Tel: (+995 32) 2941620 32, Paliashvili Str. Tel: (+995 32) 2221109

4 Freedom Square, Tel: 254 70 30 E-mail: tbilisi.fs@citadines.com

Prospero’s Books

34, Rustaveli Ave. Tel: (+995 32) 2923 592

www.citadines.com

LITERATURULI CAFÉ 64, Paliashvili Str. Tel: (+995 32) 2250669

2, Tarkhnishvili Str. Tel: (+995 32) 2444546 31, Pekini Str. Tel: (+995 32) 2313057 22, Abashidze Str. Tel: (+995 32) 2220276 36, Kostava Str. Tel: (+995 32) 2990746

43 Abashidze Str. Tel: 222 60 18


CMYK

24

US business in Georga

HEADLINE NEWS & ANALYSIS

FINANCIAL

NOVEMBER 7, 2011 | FINCHANNEL.COM

Sponsors:

Advertiser: The FINANCIAL. Contact FINANCIAL Ad Dep at marketing@finchannel.com


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