Caucasus Business Week #135

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BUSINESS WEEK February 29, 2016 #135


caucasus business week

February 29, 2016, Issue 135



Kvirikashvili: Our Goal is to Establish Georgia as a European Country Pg. 2

Irakli Rostomashvili: Bank of Georgia Deceives You by Putting Your Money into M2

Pg. 4

Irakli Danelia: Peculiarities of Georgia’s Transit Role and Current Challenges Pg. 7

Bottles From The Cradle of Wine - Georgia What kind of wine were they making 5,000 years ago? These wines may not get close, but they do hint at the colorful and unique history of winemaking in this part of the world.

The country of Georgia in the Caucasus has more species of indigenous grape and a longer wine heritage than any other country in the world, and yet Georgian wines have nev-

WHO ARE ALPHAMEDIC CONSORTIUM MEMBERS? As part of the cooperation between the public and private sectors, three Tbilisi-based hospitals will be rehabilitated by investing about 0.5 billion. Namely, Tbilisi Children Infectious Clinic Hospital, the former Republican Hospital and the Universal Medical Center will be rehabilitated. Pg. 11

Pg. 7

er been widely accessible or well known. Many of you have heard about the fact that Georgia is the cradle of wine, and viticulture originated here about 8,000 years ago.


New Trend in Georgia’s Art Industry

AGL FINANCES MORE THAN 70 SOCIAL PROJECTS Adjaristsqali Georgia executive director Roni Solberg addressed the media and business sector representatives at the conference dedicated to the corporate social responsibility issues. The event was held at the Radisson BLU Iveria hotel. Pg. 5


ProCredit Bank Profits Shrink

Pg. 7

Pg. 10


Net profits of Georgia-based commercial banks in January 2016 marked 20 million GEL, up 4.4 million GEL compared to January 2015 and down 17 million GEL compared to January 2014 , the National Bank of Georgia (NBG) reports. In 2015 commercial banks received historically high profits and the sector’s annual net profits constituted 537 million GEL, up 13.2% compared to the 2014 indicators, when the sector recorded 474.808 million GEL net profits. The TOP list of the profitable banks has recorded changes. In January 2016 TBC Bank has recorded highest profits unlike the previous year when major profits went to Bank of Georgia. In January 2016 TBC Bank profits marked 9.1 million GEL, down 5 million compared to the same period of 2015. However, this difference has turned out sufficient to top the list of the most profitable commercial banks. Pg. 5


NEWSROOM February 29, 2016 #135

caucasus business week

PM: OUR GOAL IS TO ESTABLISH GEORGIA AS A EUROPEAN COUNTRY Reform is an important part of our support for start-up businesses. Georgia is no longer a post-Soviet country but the post-Soviet mentality still exists among young people. Young people need to have businessoriented knowledge. An example of this is the Technology Park, which will help them to focus on business,” said Kvirikashvili.


he Head of Georgian Government continues a series of meetings as part of his state visit to the Czech Republic. Together with the Georgian delegation, Giorgi Kvirikashvili met with Jan Hamacek, Chairperson of the Chamber of Deputies of the Parliament. At the meeting, the parties discussed Georgia’s foreign policy priorities, bilateral and multilateral relations, and prospects of further development. The meeting also discussed Georgia’s integration into NATO. The Georgian delegation provided information about the steps taken toward the implementation of the NATO-Georgia Substantial Package.



evival of Georgian beekeeping and export of honey to the European market is our main task,” – PM Giorgi Kvirikashvili noted at a meeting with beekeepers. Within the frames of Program aimed at support of beekeeping agricultural cooperatives, 5 agricultural cooperatives of Samegrelo region were given 425 hives today. Prime Minister expressed the hope that the involvement of the state program of agricultural cooperatives will improve the material-technical base of beekeeping, and will increase quality and quantity of honey and other products of beekeeping.



eorgians are saving more but at the same time are borrowing more from commercial banks, reveals new data published by the National Bank of Georgia (NBG). People in Georgia deposited 14.5 billion GEL into local banks but 16.2 billion GEL was borrowed in January 2016, said NBG. The current trends of bank deposits and loan portfolio in Georgia’s commercial banks outlined by NBG showed the number and sum of deposits, as well as loans, increase in January 2016 compared to December 2015.



akhmaro, the highest alpine resort in Georgia is being developed to turn the rural mountain village into a bustling, modern winter resort. Today the Georgian Government announced a special commission will be created and responsible for developing Bakhmaro resort in western Georgia. When developments are complete Bakhmaro will become a top winter resort for Georgia alongside Gudauri, Bakuriani, Mestia and Goderdzi. The initial development plan foresaw building top quality roads, fixing existing water infrastructure and supplying the village with the natural gas and electricity.



lmost 8,000 families living in rural Georgia will soon be supplied with natural gas for the first time. The Government of Georgia will spend 20 million GEL (about $8 million/€7 million*) from the state budget to supply 60 Georgian villages with natural gas. Before today’s Government meeting the country’s Prime Minister Giorgi Kvirikashvili said the new gas connections would spread over 21 municipalities in Georgia.


his was the main message spoken by Georgia’s Prime Minister Giorgi Kvirikashvili when he met members of the United States (US) business sector in Tbilisi today. We have to unite society around positive goals, overcome polarisation and achieve a consensus between society and business representatives,” said Kvirikashvili while he met members of the American Chamber of Commerce (AmCham), the largest international business chamber in Georgia uniting more than 170 company members. This afternoon Georgia’s PM attended a working lunch at AmCham’s head office in Tbilisi where he presented the country’s development and reform agenda. He said the Government’s main goal was to develop and establish Georgia as a European country that enjoyed positive bilateral relations with its partners, including the EU.

Due to our constructive approach towards our northern neighbour [Russia], we have achieved stability which allows us to get closer to Europe and NATO,” he added. The four reforms Kvirikashvili introduced to AmCham today were: Modifying Georgia’s income tax rules – This reform was about aligning the country’s tax system with the Corporate Income Tax (CIT) – the Estonian Taxation Model. Under the Estonian Taxation Model all businesses, except profit-sharing businesses, should be exempted from income tax.

Governance reform - A special unit, called Front Office, will be created at the Administration of the Government of Georgia to monitor transparency and deadlines of decision-making processes. Accelerating Georgia’s infrastructure projects – The aim of this reform was to implement infrastructural projects “in the shortest time”. Kvirikashvili said all major projects currently underway or planned for the near future should be completed in about four years instead of by 2023. Higher education reform – The Georgian Government planned to introduce the German model of higher education where authorities will fund the most needed professions. Kvirikashvili also discussed another initiative about developing the capital market and to reform the state pension system. The Prime Minister noted the reform cannot be successful without the support of the private sector and the business community. He expressed gratitude to AmCham and its president, Sara Williamson, for its cooperation and support as Georgia carried out its ambitious reform agenda. Williamson wished good luck to the Government and pledged her full support for the country as it continued to develop.



witzerland, Norway, Iceland and Liechtenstein – combining 14 million consumers – are opening their markets to Georgia from the beginning of 2017 when a new free trade deal comes into play. Georgia successfully completed the third and final round of negotiations with the European Free Trade Association (EFTA), meaning Georgian products will soon be exported to the four EFTA member nations without customs fees. The Negotiations ended with the approval for Georgia to sign a free trade deal with the EFTA in June 2016 in Berlin, Germany. This will be Georgia’s first international agreement with Iceland and Liechtenstein. All industrial products produced in Georgia will be exported to all four countries without any additional customs fee,” said Georgia’s Deputy Economy Minister Genadi Arveladze. He added Georgia would also export its agricultural products to the four countries despite the fact they each experienced rich agricultural markets.


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hope the agreement will enter into force from the beginning of 2017,” he said.

Georgia achieved an unprecedented agreement and the key agricultural products exported will also be exported with zero tariffs.” Once the negotiations concluded in Georgia’s capital Tbilisi, head of the EFTA delegation praised the country’s efforts to establish free trade regimes with EFTA member countries.

The negotiations were completed in the shortest time, in just six months. In June at the ministerial meeting of the European Free Trade Association we will sign a free trade deal with Georgia. I

The decision to establish a free trade deal with Georgia was made by the EFTA Council of Foreign Ministers on November 17, 2014. The first round of negotiations took place in Georgia in September 2015, while the second round was held in December 2015. Since the last Trade Policy Review of 2009, Georgia signed a Deep and Comprehensive Free Trade Area (DCFTA) with the EU. Currently Georgia enjoys free trade with markets that cater to more than 800 million people, including the EU, Commonwealth of Independent States and Turkey. Recently the Georgian Government started free trade talks with China.

Editor: Nino Gojiashvili. Mobile phone: 595 050404 Reporters: Nutsa Galumashvili; Lazare Gvimradze; Shiva Parizad. Designer illustrator: Ilia Chrelashvili. Technical Assistant: Giorgi Kheladze


PUBLICITY February 29, 2016 #135

caucasus business week



INTERVIEW caucasus business week

February 29, 2016 #135

IRAKLI ROSTOMASHVILI: BANK OF GEORGIA DECEIVES YOU BY PUTTING YOUR MONEY INTO M2 Relations between the development sector and commercial banks are worsening day by day. Developers accuse commercial banks of savage crediting policy, while commercial banks do not plan to abandon non-core assets, especially development companies. In his interview Irakli Rostomashvili, the president of the Georgian Association of Developers overviews this and all other interesting issues.

However, Bank of Georgia provides tireless efforts to firmly clutch various business fields in its tentacles. - In 2005-2007 the development sector was a leading chain in the Georgian economy. Following the period of wars and global economic crisis, the development business turned out vulnerable to major challenges. What is the current situation in the field, what are the main problems before the developers and why have they failed to overcome the crisis period? - The development business may be compared to a mighty bomb with enormous potential that is based on staff, professionals and traditions. Qualified approaches and political goodwill are required to develop this sector. So far every efforts were taken to terrorize and hobnail this field. Therefore, it is surprising there are still some efforts to achieve success in this field. I mean not only tax burden, but also the attitude to representatives of the housing sector, while the development business was a field that used to create material goods. Naturally, other fields are also well-developed, but a major part of the revenues from the trade industry goes to the foreign countries of origin and only small part of the revenues remains in Georgia. The same challenges are reported in the agriculture sector too, because today imports accounts for 80% in Georgia’s total agriculture product consumption. To outline the problems arisen after the 2008 developments, I would refer to one sample. On August 7 Korean elevators were delivered to Georgia for one of the facilities. The developer referred his manager to Poti for transporting the consignment to Tbilisi, but the manager failed to reach the city because of road obstruction near the city of Gori. This situation lasted three months. The highway was unblocked and the company representative arrived in Poti, but he was said to pay a fine for storehouse demurrage for three months. Having paid the fine, the customers sued against the company for delay in finishing the construction works. Moreover, a commercial bank increased the interest rates and the company had to pay higher interest rates. Similar approaches have aggravated situation in the development business. - Today such famous developers as Arci, Axis, Center-Point, Olympic Star does not appear on the market. Where have these companies disappeared and what is the fate of their unfinished projects for which the customers have already paid money? - These companies are facing serious problems at this stage and these problems are mainly related to the projects commenced before 2008. I mean Arci and Axis companies. The situation with Center-Point is different. The worst things in the business sector start when the environment

and rules of games change. This situation resembles a football match, where a referee introduces rugby rules.

The next day after the outbreak of war, on August 9 developers received letters from commercial banks notifying the credit interest rates had grown to 22% from 12-14%. Moreover, commercial banks revoked the credits instead of their extension. In that period developers used to receive revenues mainly from presales, because their brand-names and images were guaranteeing project completion. However, presales ceased. As a result, the commenced projects were left without financial sources and the construction schedules were violated. As a result, the customers rejected payments and violated contracts. This signifies the whole pressure came on the development business. Therefore, currently these companies are trying to settle the previously arisen problems and return to the market stage by stage. - How would you characterize the current relations between commercial banks and development companies? Is it easy today for developers to attract due financial resources? - The attitude of commercial banks towards the business could be appraised as catastrophic. There are 19 commercial banks in Georgia and we are said to apply to other banks if we do not like one. Traditionally, several commercial banks were engaged in the development business, Bank of Georgia, TBC Bank and Bank Republic. Other banks had not developed portfolio in this sector. Developers established relations with the mentioned three banks initially. Consequently, they have to cover certain liabilities to apply to other commercial banks. Conditionally, 85 companies out of 100 ones had relations with Bank of Georgia, 8-10 with TBC Bank and the remaining five ones with other banks. It is logical and justified that commercial bank take over a certain business in case of repayment problems. And the commercial banks will try to sell the asset as soon as possible.

No banking organization issues loans without purpose. They demand specific projects. They explore the feasibility of these projects. If they found the project feasible and valuable, they issue loans. At the same time, Bank of Georgia follows the policy, when the client pays additional sum so as the bank control the loan spending. And now it is interesting which land plots has M2 company owned by Bank of Georgia used for construction projects? M2 launched projects on the land plots that previously belonged to other companies; but

Bank of Georgia has done everything that these projects fail. Then the bank purchased this site and implemented the same project and received huge profit. This is a criminal case. In this case I do not accuse the bank, as a finance organization. A certain part of officials are guilty who have fostered certain violations in this direction and ruined the business and the Georgian economy in this way. In turn, they earned enormous profits for themselves. I believe a commercial bank will make a fortune from strong and solvent clients. I do assert that a commercial bank that has business in any field is not interested to assist its competitors. - Under the decree of the president of the National Bank of Georgia (NBG), commercial banks are banned to own subsidiaries. Was this decision implemented in real life and do major business companies intervene in the developing business? - I have asserted for many years this decision was necessary and finally the national bank announced that noncore businesses would be stripped from commercial banks. For five years I have demanded this evident truth. In practice, a commercial bank is an organization that is to operate and drive the business, while the different realities are created in Georgia, because commercial banks serve their own interests. They say that there are commercial banks with similar priorities in several countries. These are investment banks that make focus on a specific field. For example, one makes focus on the power sector, another on agriculture, third on development sector and so on. If you deliver your savings to Bank of Georgia, conditionally, in the amount of 10 000 USD, the annual yield will be 5%. If you ask why only

5%, they will say that the bank issues the loan with 12% interest rate along with risk percentage, service fee, other expenditures and only 5% are left. In reality, Bank of Georgia directs your money into the development sector, from where it may receive 50% benefit. When a person applies to an investment bank, they are asked whether they are consent that their money be put in construction of a certain facility. Through this mechanism, the individual becomes a co-participant in a specific business project for a certain period. So, Bank of Georgia seems to be deceiving you, because the bank puts your money in M2. Does this company earn only 5% or 12%? This signifies the construction projects are implemented through your money, while you receive only 5% and the remaining profits go to their pockets. I am ready to discuss these issues with any opponent. No commercial bank in Georgia is tuned to develop the business sector. - Apartment prices have declined recently, but the sales are decreasing anyway. What do you think about reasons? Has the demand fallen or the supply is too high?

The sales are not declining. Today about 90% of Tbilisi residents want to improve living conditions. This signifies this part of our citizens will invest money in real estate as soon as they acquire similar resources. The reason is that the apartment space is not sufficient frequently or the building is outdated or several generations reside side by side. Therefore, problems are related to financial resources, not lack of supply or demand. - For the past years active discussions were underway on adoption of the building code. Was this code adopted and what changes have taken place on the market in this respect? - The building code has not been adopted yet. This process started about 18 months ago and proceeds in collegial atmosphere. We, the developers’ association, were invited to the working process. Moreover, the first version of the code was unacceptable for us. Currently, all our recommendations have been envisioned in the code. This document is important and necessary for our country if we want to follow the European values. According to the document, labor safety, compliance of materials with standards and so on should be preserved. The code comprises standards and norms that are recognized in the civilized and high-developed world. However, there is a problem too. To satisfy these requirements, we need specialists. Good laws always required qualified specialists.


ECONO-MIX February 29, 2016 #135

caucasus business week

TBC Bank Tops List of Profitable Commercial Banks A



ProCredit Bank Profits Shrink


et profits of Georgia-based commercial banks in January 2016 marked 20 million GEL, up 4.4 million GEL compared to January 2015 and down 17 million GEL compared to January 2014 , the National Bank of Georgia (NBG) reports. In 2015 commercial banks received historically high profits and the sector’s annual net profits constituted 537 million GEL, up 13.2% compared to the 2014 indicators, when the sector recorded 474.808 million GEL net profits. The TOP list of the profitable banks has recorded changes. In January 2016 TBC Bank has recorded highest profits unlike the previous year when major profits went to Bank of Georgia. In January 2016 TBC Bank profits marked 9.1 million GEL, down 5 million compared to the same period of 2015. However, this difference has turned out sufficient to top the list of the most profitable commercial banks. As to other commercial banks, Basisnank has stepped back to the fourth position, while VTB

Bank has advanced to the fifth position. It should be also noted that ProCredit Bank kept losing positions among five top commercial banks in terms of profits too and the bank was replaced by VTB Bank on the fifth position.

In 2015 VTB Bank replaced ProCredit Bank on the fifth position in terms of deposits portfolio and total assets. As to Liberty Bank, it ranks seventh in the ten top profitable banks. Currently, the Georgian bank sector registers 19 commercial banks, of which 13 ones have ended the month of February in profits. It should be also noted TBC Bank is leader in terms of retail deposits. It is interesting that in January 2016 the GEL denominated loans portfolio declined, while foreign currency denominated deposits portfolio increased. As compared to December 2015 the GEL denominated deposits portfolio shrank by 255 million GEL (down 5.5%) and decreased by 210 million GEL compared to January 2015. At the same time, the foreign currency denominated deposits in January 2016 rose by 87 million USD (up 2%) compared to December 2015, while the year on year growth marked 658 million USD. It should be also noted that the deposits dollarization coefficient makes up 72 .3%, while a year ago the dollarization indicator was 64%. In whole, the GEL denominated deposits marked 4.4 billion GEL and the foreign currency denominated deposits totaled 11.4 billion GEL.

The list of seven major profitable banks 01.2016




he implementation of the Baku-TbilisiKars (BTK) railway construction project will improve economic climate in the region, Alexander Murinson, a senior fellow at the Begin-Sadat Center for Strategic Studies and Bar Ilan University, told Trend news agency. He said that this project is a guarantor of economic stability, adding that the BTK railroad provides a transportation link not only for Azerbaijan and Turkey but the countries of Central Asia and China.



inance Minister Nodar Khaduri and Sean O’Sullivan, Director General of ADB’s Central and West Asia Department have discussed cooperation issues between Georgia and Asian Development Bank at the Ministry of Finance. Minister of Finance expressed gratitude for the cooperation and financing the projects, which are being carried by the ADB’s funding for the development of the country – in the following important sectors, such as energy, water supply, road infrastructure.



ewish investors plan to spend more than 100 million USD throughout Georgia. Icik Moshe states that there is a high interest in the tourism sector from Jewish investors. Icik Moshe said to “Business Contact“that there exists 6 projects. Specifically, 5 of them were planned in the period of Mayor’s visit to Israel. Among those projects are included: hotel “Gergeti”,”Art Hotel”, boutique-hotel “Rustaveli”, hotel apartments and business center.



djaristsqali Georgia executive director Roni Solberg addressed the media and business sector representatives at the conference dedicated to the corporate social responsibility issues. The event was held at the Radisson BLU Iveria hotel. The company head talked about the implemented projects and social responsibility role in the country and social development process.

“Social responsibility is an inseparable part of the modern business. The company may be considered a success when it makes a contribution to the social development process. The objective of all social projects that we are implementing in Ajara, along with Shuakhevi

ustrian Georgian Development” ceased its operations in terms of constructing hydro powers throughout Georgia. Based on the decision made by Georgian Prime Minister, the memorandum of understanding is annulled between Georgian government and Ltd “Austrian Georgian Development”.



şkale Cement announces about the interests linked to the construction of cement and bitumen plant in Adjara. The representatives of the company has introduced the project to the government of Adjara. According to the company’s offer, cement plant should be built on land plot of 50 000 square m, where the grinding of raw material / packing and loading will occur.


HPP construction, serve the long-term development of the region”, Roni Solberg noted. The company makes focus on the Ajara region long-term development and finances more than 70 social projects. Development of local communities, support of small business and financing, upgrading education and knowledge, promotion of the agriculture directions, development of infrastructure and many other projects that the

company is implementing in the Shuakhevi HPP construction zone. Adjaristsqali Georgia company is implementing 416 millio USD investment project in Georgia and constructing a major investment infrastructural project of Cascade. The company employs 730 Georgian citizens as part of the projects, in the cascade construction works and social projects. The project will be finished in a year and the Georgian power sector will receive additional 187 megawatt electricity. The company plans to invest several millions of USD in implementing corporate social responsibility projects.


eading Czech companies plan to invest in Georgia. Under the Georgian Prime Minister’s state visit to the Czech Republic, a meeting was held between the Georgian delegation and representatives of Czech companies. The working dinner in honor of the Georgian delegation was hosted by the Czech Minister of Economy.



urkish company Guneydogu Havacilik will implement service of Heli-skiing tours and tourist groups in Mestia. Agency of Civil Aviation has approved company’s application on making operations in Mestia resort zone from March to April. Helicopter company plans to operate in Mestia resort zone in cooperation with Georgian SkiGeorgia Group.


ANALITYCS caucasus business week

February 29, 2016 #135

Peculiarities of Georgia’s Transit Role and Current Challenges

The transit corridor represents a cornerstone of the state economy and foreign political positioning and this potential should be developed. Since Georgia’s transit potential is interconnected with the geopolitical and geo-economic functions on regional and international levels, all supposed economic and political risks, challenges and opportunities should be profoundly analyzed.


TSU Doctoral Student in Economics Commercial Manager EVERGREEN MARINE CORP. EVERGREEN LINE/ BSA GEORGIA


he Baku-Tbilisi-Karsi railroad project will perform a considerable role in rail transit development on the territory of Georgia as part of the Europe-Caucasus-Asia transport corridor. This route will connect the Georgia-Azerbaijan railroad networks with the Istanbul-Ankara railway route in Turkey that was completed at the end of 2013. This route will enter Europe through the Marmaray tunnel. The project will connect Europe with China through the Turkish railway and Georgia-AzerbaijanKazakhstan. The international project strengthens our integration into the global space. Moreover, political cooperation will deepen on regional level with Azerbaijan, Turkey, Kazakhstan and China. This is a political aspect and this is very important. This railroad also encompasses economic aspects. The corridor development potential is very high: new consignments should be drawn to enhance our economic potential, but if we fail to attract consignments from the external competitive corridors, then certain risks will arise in Georgia, because consignments transit bring major revenues to the country. Both liquid and dry cargoes from Central Asia and Azerbaijan cross the Georgian border and reach the Black Sea ports by train or/and motor transport (Poti, Kulevi, Batumi), from where the consignments are transported to Novorossiysk, Odessa, Constanta, Varna and Istanbul seaports by ferry and reach final destination in Europe. To put simply, Georgian Railway receives revenues from this source, as well as motor transportation companies and seaports. The inauguration of the mentioned railroad route may split the cargo turnover and a certain volume of cargoes may be directed to alternative directions in case we fail to draw new consignments from the alternative corridors. This factor will shrink cargo turnover at Kulevi, Poti and Batumi seaports and they will lose considerable revenues and the railway will also bear losses. It is worth noting that this new railway project is being carried out by a credit and the received revenues are to repay this liability. Consequently, Georgian Railway revenues will also decline. Therefore, we may receive the situation when railroad, motor transportation companies and seaports will lose revenues. Moreover, similar scenario comprises direct economic threats and certain social risks may also arise as a result of contraction in job places amid the cargo turnover slowdown. Experts suppose that the Turkish-Georgian railway project inauguration will steal about 2.5-3.0 million tons of cargoes from Georgian seaports. This risk will not arise if the Baku-Tbilisi-Karsi railroad makes focus on attracting cargoes from competing routes, for example, from the Turkey-Iran cargo corridor and if it will not replace Georgian routes adapted to the Georgian seaports. It is also possible that Turkey introduce certain preferences for the consignments that are transported from Central Asia or Azerbaijan and the mentioned consignments may be redirected from Georgian seaports to the new railway route, because Turkey will cheaper and more profitably handle cargoes via the mentioned railroad. This project is of vital importance from the geopolitical point of view. However, we should openly confess that Turkey has the main interest in this project. The Georgian Railway management thinks that the new

railroad route will increase the cargo turnover, namely the volume of container cargoes, but it will take much time to draw significant volumes, because this route is a new one on the market. According to the current turnover volumes, the management thinks that the company will be able to intercept at least 2 million tons of cargo (mainly dry cargo that currently are transported by trucks) between Turkey, the Caucasus, Russia and Central Asia. They assert that enhanced trading between Turkey and Central Asia will provide considerable opportunities for drawing additional trade currents, namely, based on raw materials imported from Central Asia to Turkey and the products exported from Turkey. The management believes that there is opportunity to attract additional volumes, namely, dry cargos that are currently transported via Iran or the Russian Federation via the Black Sea. To maximally employ our geopolitical location, first of all, the Asia-Europe corridor should operate efficiently and Georgia should adjust its highway infrastructure to modern standards. To this end, our country should make focus on reconstructing the existing highways and constructing new safe roads to increase transportation capacity along international-importance highways. Seaports create a priority direction for developing Georgia’s transit function and the state economy, in general. Having purchased Poti Seaport, APM Terminal has invested more than 70 million USD in rehabilitating the outdated seaport infrastructure, customs house, railway, motorway and services. In 2013, APM Terminal finished the construction of a land container terminal and took the first step for implementing project for full-fledged reconstruction and expansion of the seaport. The next stage of the expansion plan that will be expectedly end in 2018 calls for constructing two new deepwater berths with annual capacity of 1 million TEU, while the berths will be able to harbor ships with 9 000 TEU capacity. The new berths that will be constructed in front of the existing land container terminal, will enable the expanded deepwater mega seaport of Poti to employ the terminal, motorway and the railway infrastructure at full capacity. After the project completion, the Poti mega seaport’s annual turnover will be 50 million tons and 2 million TEU containers. The Poti mega seaport with about 16 meter depth will be able to receive the so-called mother vessels. The project implementation will create new job places, develop trade relations in seaport, in the country and consequently, in the Region. The construction of Anaklia deepwater seaport is also of vital importance in terms of transporting containers, dry and liquid cargos. The deepwater Anaklia seaport will be able to receive the panamax and post-panamax ships. The seaport’s annual capacity will be 100 million tons. According to the released information, the seaport construction works will be carried out in three stages and the project envisions a transportation of at least 40 million tons of cargo for 12 years after inauguration of the construction works (at least 7 million tons in the third year, at least 20 million tons in the 7th year and 40 million tons in the 12th year). The fourth and every next stage of the seaport development should start after the seaport’s existing capacity (turnover) will make up 90% of the seaports designed total capacity. The seaport will be able to receive a ship loaded with at least 6500 containers. The Anaklia seaport depth is 20.5 meters (Batumi -14 meters and Poti – 8.5 meters). This signifies the Anaklia seaport can harbor the ships with 50-150 thousand tons of cargo load capacity. The project calls for constructing 32 berths with total length of 12 300 meters. The new seaport in Anaklia will cover 3 000 hectares and will be able to handle 60-70 million tons of cargo a year, while the figure is expected to hit 180-200 million tons in the perspective. This figure surpasses the consolidated turnover potential of Batumi, Poti and Kulevi several times. The expediency of this project may become questionable in the short-term period, because even the Poti and Batumi seaports cannot fully use their container service potential. Therefore, in the short-term period the economic benefits from the mentioned infrastructural projects will be insignificant, while in the long-term

perspective this project will genuinely handle increased cargo turnover. Moreover, before commencement of the construction works, consultations should be held with Turkey to receive certain guarantees around admitting Panamax ships and the so-called Mother-Vessel ships to the Bosporus Strait. The negotiations for similar guarantees will not be easy, because Panamax ships entering the Bosporus Strait are unloaded in feeder ports at the Istanbul seaport and their direct entrance into the Black Sea will inflict considerable economic losses to the Istanbul seaport. Turkey may impose a high tariff in exchange for the mentioned guarantees for admitting the mentioned vessels to the Bosporus Strait to compensate the losses. Moreover, the Russian factor should be also taken into account that represents a risk factor for this project from the political point of view, because Russia may frighten the Anaklia seaport construction investors through certain military manipulations in the Black Sea waters. In the coming years crude oil extraction volumes may considerably increase in the Caspian Region (mainly in Azerbaijan and Kazakhstan) following the rising demand for energy carriers in the world and immediately in the Region. The Azerbaijani oil extraction forecast indicators by 2020 will repeat the 2015 results, but in 2025-2030 the daily extraction may increase to 1.1 million barrels. As to the Kazakh oil extraction forecasts, the prognosis is more encouraging because the growth volume forecast is higher. According to the US State Department’s Energy Service forecasts, by 2025 the daily extraction norm will reach 3.4 million barrels, while the figure will increase by additional 0.3 million barrels by 2030 and will reach 3.7 million barrels a day. As to the Turkish oil, according to the forecasts, its daily extraction norm will stably make up 0.3 barrels a day for the next 10 years, while Uzbekistan will increase the extraction volume by 0.1 million barrels a day in every 5 years. To this end Turkey plans to expand the turnover capacity of the Bosporus Gulf and discharge it through constructing a new channel. The project will be supposedly finished by 2023. The Istanbul Channel that will be bigger than the Suez and Panama Channels is expected to discharge the overloaded Bosporus Gulf. The new channel will be 150 meters in length and 25 meters in depth and it will be able to receive 160 ships and oil tankers a day. As to the external factors that directly influence the transit potential of the country, they are determined, on the one hand, by a growth in oil, oil products and natural gas volumes in the Caspian Basin and, on the other hand, intensification of the Russia-Armenia bilateral trade relations as part of the Eurasian Customs Union. In general, intensification of trade relations between all countries involved in the Silk Road route will be of crucial importance for boosting cargo turnover in Georgia’s transit corridor. However, the country may face certain risks even in this case. Regretfully, the existing oil pipelines in the Caucasus Region operate at a halved capacity. Azerbaijan does not hold sufficient oil reserves to fully fill the Baku-Novorossiysk, Baku-Supsa and Baku-Tbilisi-Ceyhan oil pipelines. Therefore, Azerbaijan and Russia have agreed to fill the mentioned pipelines by Russian and Kazakh oil by the Baku-Novorossiysk pipeline’s reverse. This decision has caused negative reactions in Turkmenistan. A major part of experts assert that the consortium exports only 10 billion cubic meters of natural gas via Shah-Deniz, bypassing the Russian Federation, while the Europe’s daily demand constitutes about 500 billion cubic meters. This signifies there is real demand on the market and it is not expected to decline in the future. Since Azerbaijan plans to export its own natural gas to the southern countries, not to central Europe, similar plans do not directly conflict with the Russian interests. Moreover, BP specialists assert that the demand for energy carriers, especially for natural gas, will increase by 40% by 2030, including 90% will be recorded in the developing countries, mainly in China and India. Thus, the Shah-Deniz gas pipeline worth 45 billion USD that is to supply natural gas to Europe and Turkey, may lose the importance for transnational companies in the near future.

The growth in the North-South gas pipeline loading capacity depends on the economic development of Armenia and a rise in demand for natural gas in Armenia. However, in the context of this gas pipeline, we cannot omit the Russian geopolitical interests in connecting the gas pipelines of Iran-Armenia-Georgia-Russia. These plans will enable Russia (GazProm) to control the potential exports gas from Iran to the EU. Similar scenario will strengthen Russia’s geopolitical role in the Caucasus and the Persian Gulf. Currently, natural gas represents a main leverage for Russia in its talks with Europe. Amid the 2008 Georgian-Russian hostilities and today amid the creeping occupation Russia warns the world community, namely the interested western countries how hazardous Nabucco route may be. This project is to transport Kazakh and Turkmen and Azerbaijani natural gas to Europe through Georgia. As reported, the Georgian transit corridor development depends on the macroeconomic conditions in the countries that are located along the East-West connector transit corridor. In this context the World Bank’s economic growth forecast indicators are very characteristic, according to which, we can say that in all countries involved in the New Silk Road route a comparatively higher economic growth paces will be reported in 20162017 compared to 2014-2015. Georgia’s GDP growth is supposed to be 3% in 2016 and 5% in 2017. The growth tendency is forecast in all countries involved in the New Silk Road route (Kazakhstan, Turkmenistan, China). In 1980s China constructed Urumci-Drujba railroad and connected the Silk Road that starting 1994 has been transporting containers to Georgian seaports from Europe, from Baku to Central Asia by ferry and from the Asian countries to China through the Drujba-Tsiantsin railway, as part of the TRACECA project. The Georgian government relies on the New Silk Road project and the project is really interesting in terms of politics, but when talking about its economic profitability, it is of crucial importance to analyze the risks and challenges that may accompany this project. The new Silk Road genuinely represents the shortest route from China to Europe and consequently, the transiting time from China to Georgia is about 7-9 days, while maritime shipment takes 1.5 month on average to deliver consignments to Georgian seaports. This route will faster transport consignments to Europe through Georgia. Consequently, the turnover capacity of Georgian seaports, motorways and railroad will increase, but this is only theory. From the more realistic point of view, if Chinese products will be exported directly to Azerbaijan by railway, then Georgian seaports, railroad and motor transportation companies will lose turnover and the state budget will lose revenues. Moreover, there are different tariff policies in China, Kazakhstan, Azerbaijan and Georgia, as well as logistics infrastructure, customs procedures and related operational issues are entirely different. Therefore, it represents a very complicated multimodal corridor that will use a combination of railway, maritime and motorway potential and this factor grows transportation costs very much along with contraction in transportation time. If we valuably analyze tariffs of the world’s leading maritime corporations, we will conclude that maritime shipment is far cheaper in Georgia, Azerbaijan, Armenia and Turkey compared to transportation in the new Silk Road corridor from China’s main seaports (Qingdao, Ningbo, Shanghai) to Europe’s major seaports such as Rotterdam, Hamburg, Antwerp, Le Havre, Felixstowe and so on. It is also very important that despite low tariffs the transit time is more compared to the duration of motor transportation. Enhancement of Georgia’s transit function in the future will depend on development/ adapting of all connector chains, railway, seaport and motor infrastructure and logistics centers, improving the transport coordination at Georgia’s railway borders, improving customs procedures and other trade promotion measures, development of the neighboring and Central Asia countries, paces of development of international competitive transit corridors and improving trade relations between all countries involved in the new Silk Road project. This signifies all these issues should be resolved through complex approaches.


WINE February 29, 2016 #135

caucasus business week

Bottles From The Cradle of Wine - Georgia


hat kind of wine were they making 5,000 years ago? These wines may not get close, but they do hint at the colorful and unique history of winemaking in this part of the world The country of Georgia in the Caucasus has more species of indigenous grape and a longer wine heritage than any other country in the world, and yet Georgian wines have never been widely accessible or well known. Many of you have heard about the fact that Georgia is the cradle of wine, and viticulture originated here about 8,000 years ago. Georgia is the birthplace of wine according to a number of the world’s competent experts. The mention of the ancient traditions of vine growing and high quality wine growing in Georgia can be found in the works of Homer and Apollonius of Rhodes. Even the unique Georgian alphabet is modeled after the shape of the vines curly offshoots. Up to 500 indigenous grape varieties are still cultivated here. Wine is part of Georgian heritage including architecture, poetry, and songs, and is associated with celebrations, holidays, rituals and most importantly with Georgia’s religion the Christian Orthodox Church. Winemaking remained the basis of the Georgian economy for centuries. Through the long history of the Georgian nation, the vine has gained iconic significance in Georgia. It is a symbol of regeneration, of wealth and plenty.

Orgo Kisi Iago’s Wine Saperavi Chinuri 2010 Tamada 2013 2013 Using Chinuri, a variety indigenous to the Kartli region in central Georgia, Iago crushes the grapes in a large hollowed-out log, and pours the must, skins and all, directly into 300-year-old qvevri, where it stays for about six months. The wine is decidedly cindery in flavor, and tannic, with a bitter spice that recalls digestive; yet, in the end, it comes off feeling delicate, with a bright, lemony acidity adding light and lift.

Saperavi is a must serve with a grilled lamb, or lamb stew of Italian or Georgian style. 100% Saperavi. This dry red wine also pairs well with grilled steak with green pepper sauce and a wide variety of cheese. The palate is savoury and earthy with a really nice vivid cherry and plum character. There’s a nice earthy undercurrent to this well structured red wine, which with its slightly bitter finish needs food.

The Dakishvili family handpicks grapes from their 50 year old vines for this distinctively elegant wine. Fermentation of the indigenous Kisi occurs in clay qvevri, during which time the wine stays in contact with it’s skins, stems, and seeds. After 6 months the wine is racked and bottled. No oak is used. This “white” wine drinks more like a red with a grippy tannin presence on the palate.

Schuchmann Teliani Valley Saperavi Tsinandali Rose Semi 2013 Dry 2013 A crisp white made in The French concept of Château is at the heart of Georgian wine making process. Burkhard Schuchmann and longtime winemaker Giorgi Dakishvili follow the belief that in order to produce quality Wine. Wine made from Saperavi grape varieties by classical technology (with short maceration). Ripe red berries aromas and fresh flavor.

the modern style — fermented and aged in stainless-steel tanks — this is delightful and refreshing, with flavors of white flowers and herbs. It is excellent by itself or with lighter foods. Teliani also makes delicious tsolikouri (a grape that translates as “my wife’s wine”) and saperavi, both at very reasonable prices. ABV: 12.5 percent.

Badagoni Alaverdi Tradition Red 2007

Pheasant’s Tears Rkatsiteli 2013

Château Mukhrani Goruli Mtsvane 2012

This robust wine has an intense tannin-rich flavor, that is both elegant and round. Its sapidity is characterized by the sweetness of alcohol and the fullness of the wine’s tannins. This winning combination creates a harmonious, wellbalanced vintage with a long life.

A qvevri-fermented amber-style wine, it manages to capture the crisp fruit flavors of the grape, perhaps with a bruise, as though the fruit were about to tip over the edge of overripeness. Yet its acidity and structure give it a fascinating edge that will help it pair with robust dishes. ABV: 12.25 percent.

The green tinge of this truly magnificent varietal shows the everlasting potential of the terroir of its origin. A supple, rich and exuberant bouquet offering grapefruit flower, lavishly backed with pear and coupled with subtle oak aging. A rich, enduring and bountiful taste leaves an almost piquant and memorable sensation.


BANK caucasus business week

PROJECT WRITE IN GEORGIAN INTRODUCES RESULTS AND FUTURE PLANS University Lexicography Center have also joined the project implementation. The National Library has already started digitalizing the GeorgianEnglish dictionary that will be published in the internet free of charge in several months, while the lexicography center plans to implement several events to continue the Write in Georgian initiative, including the lexicography congress, lexicography competition in secondary schools and improvement of the Georgian banking vocabulary. One important initiative is being implemented jointly with Microsoft. The main objective of the Bing Translation Project is to develop the Georgian-English parallel translation base that really implies a translation into foreign languages. To this end, at the first stage, valuable and perfect translation of 7 million Georgian sentences will be carried out into English on basis of the Saba electronic book house. The already translated sentences will be integrated with the Microsoft Machine Learning API so as the program correctly translate any Georgian sentence. All projects that are being implemented as part of the Write in Georgian project are unique and they are united around a single objective – Protection and Development of the Georgian Writing and Language as the national value; Popularization of the Georgian Language in everyday life and purification of the language from barbarisms.


avid Khutsishvili stated, in Ozurgeti tea processing plant 40 000 GEL will be invested. Three new enterprises have been launched as part of the Produce in Georgia state program – a tea processing plant, filbert processing enterprise and a food product enterprise, Deputy Minister of Economy and Sustainable Development of Georgia told the government administration.



he international agency GoBankingRates, published the rank of the most cheapest countries throughout the world. The agency has ranked 112 countries in terms of the cheapest ones being Georgia as the 29th place. The authors relied on the main 4 components in the process of composing the ranking list. Those components are following ones: local purchasing power, the price of the lease, the food price index and the consumer price index. All those four components are compared with the living standards of the US. Accordingly the US is taken as the benchmark.



ccording to Dough Oliver, head of Communication Department of Wizzair, the company will invest 100 million EUR in Georgia through the year. The mentioned sum should be spent on crafts and base services. Oliver declares, that the based air company will perform flights to 7 new directions, which should be implemented from September from Kutaisi International Airport. “We consider that there should be high demand on those flights from Georgia, as well as to Georgia”, – representative of Wizzair declares.



eorgian students from Agrarian University want to produce beet chips. Additionally, Estonian market is already interested in buying them. According to the students, they have recently produced apple chips as a test, which was followed with positive response after degustation. They think that beet chips will be no less popular than apple chips. Shalva Mdzinarashvili is one of the authors of this interesting idea and he says that the degustation has already taken place.



uring the Cabinet Session, the government discussed three important projects: nut processing factory, tea factory and a milk processing plant will be financed within the program “Produce in Georgia“. At Senaki Municipality, specifically in the village Menji, it is planned to set up nut processing plant. This specific investment is worth of 200 000 GEL and the minimum annual production capacity is going to be 200 tons. Tea processing factory will be established in Ozurgeti Municipality, which will produce at least 20 tons of tea annually; The volume of investment is about 39 000 GEL.



nother milk processing plant to open in Tsalka region. According to owner of the factory Ruslan Khutsishvili construction of plant is due to finish and will be equipped in the near future, with the newest technologies. He says that they plan to export cheese in Germany and Austria, according to Khutsishvili Georgian cheese is very popular in Greece but Georgian cheese producers need to maintain EU standards at first.

February 29, 2016 #135


nitiators of the Write in Georgian project have held a presentation for media reporters and interested persons at the Techno Park. Course in Fonts Engineering, Georgia A contest, digitalization of dictionaries, Microsoft translating platforms and lexicography congress – these initiatives were introduced at this presentation. This project initiated by TBC Bank is being implemented successfully for the past 6 months and many organizations have already joined this project. GeoLab, Microsoft, the National Library, the Tbilisi State University Lexicography Center and designer Zviad Tsikolia have become partners of the Write in Georgian project. GeoLab, the laboratory of new technologies and innovations, with support of TBC Bank and Monotype Imaging company has launched fonts engineering courses. To develop Georgian fonts for computers and various digital devices, only good design does not suffice, engineering approaches are required to adapt the fonts to the digital language and standards. Twenty five individuals have been selected for the course, who will study the fonts engineering art from the world’s leading specialists for 2 months. Another project that also refers to Georgian fonts is being carried out jointly with designer

Zviad Tsikolia. The Georgian A contest of fonts enables interested persons to submit privatelydesigned Georgian scripts. The competition jury will discuss the submitted applications and select the best ones in every nomination. The works will be published in the internet for voting. At the final stage of the competition 16 fonts will be digitalized that will be attainable at various electronic devices. The National Library and the Tbilisi State



BC Bank has appointed Levan Shanidze and Avtandil Gigineishvili as managing directors to co-head TBC Capital, an investment banking arm of TBC Bank offering Corporate Advisory, Research and Brokerage solutions in Georgia. Both, Shanidze and Gigineishvili are highly experienced professionals, each with 20 years at global investment banking institutions in London and Hong Kong. Avtandil Gigineishvili, former Managing Director and Head of Asset Management at Jefferies International in London, initially a key member and subsequently leader of the team who build a successful business managing $3 billion assets for institutional and retail clients in Europe and US. Throughout nearly 20-year long track record navigated several critical periods in the market and was involved in every aspect of the business development and operation from the start. Before that he served at Jefferies International Limited as a Research Analyst, producing global convertible

bonds research and generating trading ideas for the international equity-linked desk. Avtandil Gigineishvili has MBA from Tulane University (New Orleans, LA) and a B.Sc in Electrical Engineering from the Georgian Technical University (Tbilisi). Levan Shanidze served as a Managing Director at Silverhorn Investment Advisors in Hong Kong before joining TBC Capital where he managed a flagship macro fund. Prior to taking asset management responsibilities he held various capital market positions in Hong Kong at Nomura, Lehman Brothers, JP Morgan and Jardine Flemings. His roles included building equity derivative business, heading India equity trading, proprietary trading with global coverage among others. Levan holds a Master of Business Administration in Finance and Corporate Account-

ing from the Simon Graduate School of Business Administration, University of Rochester, USA, and a B.Sc in Biophysics from the Tbilisi State University, Georgia. TBC Capital is committed to playing an active role in the development of capital markets in Georgia and supports both institutional and strategic investors in exploring investment opportunities in Georgia while at the same time giving access to additional forms of financing to domestic companies – currently dominated by traditional bank loan financing. TBC Capital was established in 1999 and provides services tailored for the Georgian market. Its Parent company, TBC Bank is the leading financial institution in Georgia, listed on the London Stock Exchange (LSE: TBCB LI).

START-UP February 29, 2016 #135

caucasus business week


Sillhouettes New Trend in Georgia’s Art Industry

We are proud to introduce you one of the most talented and original team of artists and designers from Georgia. I am inspired by their creations and love hearing how they are making their handmade business work. This team operates under the brand name “Sillhouette Art”, having very unique items and wide range of designs. Below is the interview with ARCHIL SIKHARULIDZE, the director of “Sillhouette Art”.

- Please tell us briefly about your activities?How long have you been making handcrafted items? - It has been already three years we operate on the market. We represent “Silhouette Art “and our handmade goods are sold via online. By this time the main selling point we have is Georgian market. We do our best to make each item unique and extraordinary. - Could you please tell me what inspired you to get started?

- It all started when two of my friends from academy and I got involved in making handmade chandeliers.Just for fun we had worked simultaneously on wood. One of our friends,Lasha who is the marketer right now, suggested to us to produce handmade items, due to the high demand. We have started preparation and made our first collection. Lasha worked on the market entry and branding strategies as well. Shortly afterwards, “silhouette Art” was created as a brand that entered to Georgian market.

- How was your brand name selected? - Name selection process was really very interesting. Our artworks are totally emotion, from the beginning to the end, as they do not have specific look. You certainly distinguish which is the girl and which is the boy without any problem, thus inside them you find out an emotion that you like the most. We were asking everybody whoever had seen our exhibition what they liked or vice versa; we were writing down each evaluation, each word the visitors were saying concerning our works. Finally, in the process of evaluation and being in such chaotic situation we find out silhouette and art. As a result, “silhouette Art” was created. - At the beginning, how many of the members were in your team and has the number of employees increased by now? - At the very beginning we were three together: I as an Art Director, my assistant designer and marketing manager. Right now our group consists of 7 permanent employees. However, in the case of having large orders or holidays approaching our team grows respectively. We also have a very good photographer, who takes the picture with exactly the emotion we put inside in the process of making an artwork. His role is quiet big in our success. - What are the materials you use for the body of your work?Are those materials available in Georgia or you buy them from abroad? - Absolutely, all materials that we need are available in Georgia. Basically, we mainly use wood, copper, varnish. However, other materials can be also used due to the customers’ requirements. - How is the public’s interest towards your production? - After 6 months operation on the market the interest towards our artworks increased and it is getting more and more all the time. Our objective was as follows. Before they liked, observed, gradually some people started to buy them as a gift. Awareness was increasing day to day. Now our creations are enough popular. We will try to offer to our customers new interesting creations all the time. According to their interests we try to grow and develop. - Which is your target segment? - People looking for a different, accordingly, there is no limitation at age as there are no limitations for searchers. - Basically you take orders or you create things on your desire? When ordering, which illustrations are dominant? - I would say both of them are usual at our practice. As soon as the collection is exhibited, all artworks are sold right away. After this we work on private orders, as for large companies, for specific clients as well. The illustrations concerning love theme is anyway dominant. - Is this your core business or is there something else you do? - No, we only create figures and do everything to reach our main goal to open up our first store and workshop. - How do you think you achieve success in Georgia in this sphere? In your opinion, is this segment developed in our country? - Our country is going through the stages of several developments. There are a lot of interest-

ing directions in terms of art; however, there is lack of right marketing support. For artist it is rather difficult to think about creation of the artwork and its realization at the same time. I would say that tandem between young marketers and artists plays significant role in this segment development. - What makes “Sillhouette Art” special? More precisely, what makes you different/ unique from other makers? - In my opinion, we will be always different from others due to our main features, meaning that our unique design only for unique customers. We will do our best to develop even more and become skilled; additionally, we will try to respond to customer’s requirements in accordance with market demands. - Generally do you have personal exhibitions? - So far we did not have. Despite the several proposals, we consider that we are not ready yet to take part in exhibition. However, we are getting ready to participate in the future. - Where do you sell your products both online and offline? - It is only possible via online, on our official web page, however we plan to set up the studiosalon in spring 2016, where we host our guests. Our artworks can get anybody wishes; even from abroad the volunteers are able to subscribe them. - What are your future plans? - The plans we currently have are about setting up several shop-salons throughout Georgia. We are into supplementing new branches. In conclusion, we keep our main line, only adding new ideas and interesting projects will be implemented under our brand name. Additionally, our main objective is to make the salon the place where the student from Art Academy will be able to realize their ideas and thoughts. - Finally, what is the maximum you would like to achieve in your Activity? - Being on the world market under the Georgian brand is our final Goal.


OTHER SIDE OF BUSINESS caucasus business week

I AM A SPECIALIST IN GERMAN STUDIES. I have graduated the faculty of German Studies, then finished the Georgian Institute of Public Affairs (GIPA) with the qualification of a public officer. I have also studied in Budapest, at the business administration faculty of the Central European University. I TOOK UP MY FIRST OFFICE AT TBILISI CITY HALL. In 2005, having graduated the institute, I passed a probation period. My duties were very interesting and the time was also very interesting. In that period reforms were being carried out in the whole country, including in Tbilisi. Therefore, I gained much experience. Then I was given a chance on a managerial position. I was the head of the social-economic programs department of the municipal service for economic policy. MY FIRST SALARY WAS 600 GEL. This was a good amount for a student in that period. The banking relations were not well-developed in that period and I used to receive cash wage. WHY BUSINESS? I have worked as a public officer for a long period, then I was a tourism consultant as part of the US project. My career continued in the business sector starting 2011. I had no winemaking qualifications, but my family has been engaged in the winemaking field for many years. This is a tradition of our family. Consequently, I was always interested in this field. My grandfather and father are winemakers. I always wanted to continue this tradition and I have fulfilled this desire. BUSINESS IS VERY INTERESTING FOR ME, but multiyear experience in the public office has helped me in achieving a success. The gained experience has alleviated my efforts in the business sector. I faced no special difficulties in moving to the business sector and in differently managing the processes. I have resolved several issues in different manner.


I WOULD NEVER WORK IN DISTRIBUTIVE TRADE Director general for Schuchmann Wines Georgia

I WORK 24 HOURS A DAY, seven days a week. Therefore, I control my time myself. I have not set any specific time for getting to the office. However, I try to be self-disciplined and timely appear at the office, but I frequently overstay at the office. HAVING GOT TO THE OFFICE, first of all I check mails, naturally. I set the agenda on the eve. I read newspapers, have another cup of coffee to get refreshed and then I start implementing the plan.

February 29, 2016 #135

I WOULD NEVER WORK in the distributive trade and I would never be engaged in imports business. I believe that Georgia should produce traditional, national Georgian products on the domestic level and then export them to foreign markets. This is PR for Georgia, improving the country image. It is the fame of Georgia, when we export our domestic products abroad. I would never work in the sector of retail network, even in the fashion accessories. This is unimaginable for me. I DISAPPROVE READINESS TO DO ANYTHING FOR CAREER PROMOTION. A person must not do anything, but follow the welldetermined and specific goal. There are many tortuous roads, where certain comprises are required. I adhere to the philosophy of balancing. Everything should be balanced. Savage rules are inadmissible in career efforts. EVERY EVENING I USUALLY TASTE A GLASS OF VINOTERRA, qvevri (pitcher) red Saperavi wine. With numerous antioxidants, Saperavi is very useful and refreshing and supports metabolism. WELFARE, HEALTH, wellbeing of relatives and friends and general success are main things in the life. When you achieve a success, you are healthy and the success doubles and multiplies the desire to reach new heights and assist other people. Happiness is contagious. We are first users of our products and services. Consequently, happiness is contagious and the happiness is found in wine, in gastronomy and everything we do. I try to share this happiness to all relatives and friends and family members. I AM AFRAID OF FLIGHT, most of all, as well as of driving on frozen motorway, on the rise. I have transport-related fears. I LIKE TRAVELLING. I have to travel a lot and I have to fly, but I am afraid of flight and this makes discomfort to me. I LIKE GEORGIAN CUISINE VERYMUCH, especially fish dishes, pot bean. I like Italian cuisine too. I ALSO LOVE THE ART, painting, Rembrandt’s works, ancient Roman works, but not surrealistic modern.


HEALTHCARE February 29, 2016 #135

caucasus business week



eorgian national rugby team and Natakhtari company concluded a sponsorship agreement yesterday, under which the Georgian National Rugby Union will receive 1 million GEL from the company for 4 years. This agreement has extended the 8-year cooperation between Natakhtari and the Georgian Rugby Union for additional 4 years.





s part of the cooperation between the public and private sectors, three Tbilisi-based hospitals will be rehabilitated by investing about 0.5 billion. Namely, Tbilisi Children Infectious Clinic Hospital, the former Republican Hospital and the Universal Medical Center (the former oncology center) will be rehabilitated. Three companies have submitted offers for the state-announced tender as part of the medical clinics development project. However, only AlphaMedic Consortium has submitted valuable, perfect and attractive proposal.

Georgian Minister of Labor, Health David Sergeenko and the Partnership Fund executive director David Saganelidze attended the presentation of the medical clinics development project. It should be noted working meetings and discussions at the Health Ministry with the participation of heads of the mentioned hospitals, was held on February9-11. The Georgian Health Ministry positively appraised the medical clinics development project submitted by AlphaMedic. “The high-level investors are interested in this project. In Georgia the consortium is represented by the world’s distinguished companies with tens of years of huge experience and stable financial resources. They will combine and integrate the west’s best practices into this project. We will receive the best unity of clinics that will become the region’s leading complex”, the Health Ministry representatives told the news conference. This 21st century project absolutely differs from all other previous projects, they said. Who are members of AlphaMedic Consortium that is fully trusted by the Georgian Health Ministry.

Our consortium provides a supply of health services and other options in the infrastructure field. It implements PPP Projects on the global level. AlphaMedic was founded in Vienna, Austria. The company will supply both medications and equipment to patients and various facilities in the field. “Our consortium is also able to develop finically valuable projects. Other companies frequently submit their projects, but those projects are not valuable and balanced and therefore, those projects are destined to failure. AlphaMedic does its best to make these projects vivid and direct these finances into the correct bed to implement realistic processes”, The AlphaMedic Consortium tenders development manager Leo McKenna noted and overviewed the company experience:

“AlphaMedic is a consortium of partners that operate in the healthcare infrastructure and service supply field. The consortium develops projects for cooperation between the state and private sectors (PPP). The AlphaMedic Consortium members are Keppie Architects, The Health Partnership, MFK, FESP, which are famous for their professionalism and

proficiency on the global level”. Keppie Architects operates in the healthcare, education and commercial sectors. Founded in 1854 the company has 100-year experience of operation in the hospital sector and records a history of PPP model cooperation for many decades. The company is specialized in engineering management and development. From the recently developed projects we should stress Scottish major NHS infrastructural and Forth Valley Royal clinics. All facilities of the company are oriented on sustainable development with a scope of constructing efficient, economic, long-term, energyefficient and adapted facilities and complexes. Moreover, all projects are special by functional and social component their design that call for creating job places and development. The Health Partnership is a consulting company in the health sector that gives recommendations to government offices, developers, architects and offers the best solutions in the healthcare sector. The professional team of the company has implemented many projects in the USA, Great Britain, Ireland and many other countries in Europe and Asia. The company consultants have carried out 1.3 billion USD projects in the healthcare sector. The company holds unique experience in implementing such health projects, where it has to overcome major challenges in terms of both medical equipment and developing investment projects and operation performance. MFK with a 20-year experience is specialized in the world-standard medical equipment. MFK operates in environmental, healthcare and labor safety directions. Consumer-oriented MFK provides the best offers in the field of medical equipment. The company operates in the healthcare sector with qualified experts that, along with expert knowledge and skills, enjoy strong technological support in all projects. Besides services, MFK offers the models based on the best solutions that are adapted to the local interests. The company is oriented on developing cost-efficient projects jointly with partnership policy and this enables partners to develop business and receive the best results. FESP has been operating in the field of production and construction projects since 1994. The FESP team is famous for models adapted to traditional and exclusive and special requirements worldwide. The company outlines specific requirements of the consumers, manages the processes and risks and provides absolute guarantee for achieving the determined goals. The very special methodology for process management enables the company to affect the final outcomes and business success.

RIMAG“, an Israelian company is keenly interested in developing new businesses in Georgia. The chairman of “BRIMAG”, which is one of the largest hardware stores in Israel, and which is an investor of “Elit Electronics”, expresses its interest towards Georgian business development. The Radio Fortuna was informed by the Partnership Fund, that the president of BRIMAG Shaul Zilberstein held the meeting.



fter a few years of pause the mineral water “Gundauri” returns back on the Georgian market. Based on the information provided by the Radio Commersant, the company representatives stated that due to the some difficulties the company had in the past, the production was ceased. However, in the current year, the enterprise has renewed its operations and in the nearest period the production will be launched again.



new company plans to launch operation in the oil products retail sector of Georgia. Portal, the oil products distribution company, plans to organize its own retail chain in Georgia. According to the project, the first fuelling station will open in Tbilisi, in the Navtlughi area, in 2-3 months. The company will open 3 other fueling stations until 2017. The company representative Elene Khukhashvili noted the company will operate with competitive tariffs on the market.



ompany Plastic Production, polyethylene production plant, was put into operation. The plant owned by the company is located in Adjara, where polyethylene biodegradable bags are manufactured. The company is the first in Georgia, which has offered air-bubble, packaging tapes. The management expects replacement of import due to the high quality and competitive prices.



s it is widely known, among existing mobile operators in Georgia, Apple made its choice in favor of Geocell and concluded the partnership agreement with the company. This is an important event for customers, as well as country itself. Geocell traditionally is associated with innovation and modern technologies. The company is permanently focused on customers.



eorgian businessman Temur Chkonia, plans to open Mcdonald’s chain in Armenia. According to him, negotiations will start in the near future. “If I reach this goal, I partially will satisfy my ambitions. Apart from this, construction of Mcdonalds’s depot in Lilo will finish in six months. Georgia could become a hub and supply Azerbaijan and middle Asian countries,”Chkonia said.


PUBLICITY caucasus business week

February 29, 2016 #135

WORLD NEWS February 29, 2016 #135

caucasus business week



The Skype Killer from Belarus – the Bloomberg Businessweek Nicknames Viber in this way. The cellular application of Viber was developed in Belarus by Igor Magazinik and Talmon Marco. In 2012 Viber Media was registered as a resident entity at the Belarus High Technologies Park. Numerous famous projects have been developed at this center and it is one of the leading technological centers in Eastern Europe. The IPRESS news agency introduces exclusive information about the new software developed by the Viber authors that is expected to bring the effect of thunderbolt. In Minsk, we met with Alexander Martinkevich, the deputy director of the Belarus High Technologies Park and recorded this interview. We have learned that the Viber authors are developing a new software that is expected to make thunderbolt in the world of innovative technologies, according to Martinkevich. „Today Viber serves more than 500 million subscribers all over the world. The famous magazine Bloomberg Businessweek has nicknamed the Viber as the Skype Killer from Belarus. In 2014 the Japanese giant company Rakuten owned by billionaire Hiroshi Mikitania purchased the cellular application for 900 million USD. We are very proud that our center has taken part in developing this famous and worldwide recognized software”, Alexander Martinkevich told the IPress. At this stage, the Viber developers are creating a new startup that may become more popular than the Viber,

Martinkevich noted. However, the respondent kept silent about what will make the new software more popular than Viber and how the new software will make users forget Viber. At this stage the details are classified, the respondent noted: - Mr. Alexander, the most circulated question in Georgia is – is Viber intercepted? We know that all other softwares are intercepted. - You are free to say in Georgia that Viber is genuinely intercepted. However, I have no precise information, but…. I have read an article that was comparing various messengers available today in

the world. The Telegram is said to be the safest, but all of us use Viber anyway. Four years ago nobody knew about Vuber, but today everybody knows. - When will the Viber developers introduce the new software? - Our friends, the Viber developers, arrived in Belarus and noted they could not live without business like pensioners. Therefore, they registered a new startup, with new finances. It will be introduced on foreign market in a year. I cannot specify the field, but it they really implement the project it will bring the effect of thunderbolt.

- Are they companions? - No, they are just friends. I do not have information on whether they are companions, but they are friends and work together. These two persons have brainstormed all these innovations. - Do these persons work in your park or they develop only distinct software? - When you have 900 million USD, what would you work for? I do not think they want to make more fortune. They just love this field and trade. They cannot follow other lifestyle. They think that they do this business because they can do this business.

Boy finds 3,400Year-old Figurine in Israel

SOCAR Fugro to Hold Groundwater Exploration at Baku Refinery

Armenia’s Economic Activity Index Down by Almost 50%

S&P lowers ratings on Development Bank of Kazakhstan

he Heydar Aliyev Baku Oil Refinery and SOCAR Fugro LLC have inked a contract to carry out groundwater exploration as part of the refinery’s modernization, Azerbaijani state oil company SOCAR reported on February 22. The contract was signed by the refinery’s director, Elman Ismayilov and general manager of SOCAR Fugro, Chris Mott. Primary geotechnical, geological, hydrological, hydro-geological and geophysical groundwater exploration will be carried out in the plant’s territory and surrounding areas. Moreover, the final report and other documents will be worked out, the company reported. The received data will be presented to the designer and used in the subsequent stages of the project, according to SOCAR. SOCAR’s Department of Geophysics and Geology is also involved in the work. The process of modernization of the Heydar Aliyev Baku Oil Refinery will be completed by late 2018. After the completion of the reconstruction, the processing capacity of the refinery will increase from 6 million to 7.5 million tons of oil per year. The modernization is estimated at $1 billion.

rmenia’s economic activity index fell by 49.2 percent in January 2016 compared to December 2015, agency reported citing the press service of Armenia’s National Statistical Service. In January 2016, the volume of industrial products dropped by 28.7 percent compared to December 2015, said the agency. The volume of construction decreased by 0.7 percent in January 2016 compared to December 2015. As compared to January and December of 2015, the volume of trade turnover decreased by 2.7 percent and 58.6 percent respectively in January 2016. The electricity output dropped by 6.9 percent in January 2016 compared to December 2015. The average monthly nominal salary fell by 19.5 percent in January 2016 compared to December 2015 and by 3.5 percent compared to January 2015.

tandard & Poor’s (S&P) Ratings Services has lowered its long- and shortterm issuer credit ratings on Development Bank of Kazakhstan (DBK) to ‘BBB-/A-3’ from ‘BBB/A-2’. The outlook on the long-term rating is negative, S&P said Feb. 25. The rating agency has also lowered its Kazakhstan national scale rating on DBK to ‘kzAA’ from ‘kzAA+’. The rating action reflects the downgrade of Kazakhstan’s rank on Feb. 17, said the message from S&P. “We equalize our ratings on Development Bank of Kazakhstan with the sovereign ratings because we think that there is an almost certain likelihood that the government would provide timely and sufficient extraordinary support to DBK if needed,” said the message. The rating agency said that DBK has integral link with the government of Kazakhstan, which fully owns DBK through National Management Holding Baiterek. It also noted that DBK plays a critical role as the primary institution mandated to implement the government’s economic diversification and industrialization agenda.


7-year-old Israeli boy is being hailed after finding a piece of history during a day trip to an archeological site. Ori Greenhut was climbing a mound at Tel Rehov with friends when he came across a covered figurine, said the Israel Antiquities Authority. The boy brushed off the dirt to reveal an image of a woman in clay. According to authorities, the figurine is some 3,400 years old. “Ori returned home with the impressive figurine and the excitement was great. We explained to him this is an ancient artifact and that archaeological finds belong to the state,” said Moriya Greenhut, Ori’s mother. The family gave the figurine to the Antiquities Authority, which said the image of the woman was made by pressing soft clay into a mold. The small statue may represent a real woman, or it may depict the fertility goddess Astarte, according to Amihai Mazar, a professor and expedition director of the excavations at Tel Rehov. The figurine is typical of the Canaanite culture, Mazar said.





PUBLICITY caucasus business week

February 29, 2016 #135


TBILISI GUIDE February 29, 2016 #135

Embassy United States of America Embassy 11 Balanchivadze St., Dighomi Dstr., Tbilisi Tel: 27-70-00, 53-23-34 E-mail:; United Kingdom of Great Britain and Northern Ireland Embassy 51 Krtsanisi Str., Tbilisi, Tel: 227-47-47 E-mail: Republic of France Embassy 49, Krtsanisi Str. Tbilisi, Tel: 272 14 90 E-mail: Web-site: Federal Republic of Germany Embassy 20 Telavi St. Tbilisi Tel: 44 73 00, Fax: 44 73 64 Italian RepublicEmbassy 3a Chitadze St, Tbilisi, Tel: 299-64-18, 292-14-62, 292-18-54 E-mail: Republic of Estonia Embassy 4 Likhauri St., Tbilisi, Tel: 236-51-40 E-mail: Republic of Lithuania Embassy 25 Tengiz Abuladze St, Tbilisi Tel: 291-29-33 E-mail: Republic of Latvia Embassy 16 Akhmeta Str., Avlabari, 0144 Tbilisi. E-mail: Greece Republic Embassy 37. Tabidze St. Tbilisi Tel: 91 49 70, 91 49 71, 91 49 72 Czech RepublicEmbassy 37 Chavchavadze St. Tbilisi ;Tel: 291-67-40/41/42 E-mail: Web-sait: Japan Embassy 7 Krtsanisi St. Tbilisi Tel: +995 32 2 75 21 11, Fax: +995 32 2 75 21 20 Kingdom of Sweden Embassy 15 Kipshidze St. Tbilisi Tel: +995 32 2 55 03 20 , Fax: +995 32 2 22 48 90 Kingdom of the Netherlands Embassy 20 Telavi St. Tbilisi Tel: 27 62 00, Fax: 27 62 32 People’s Republic of China Embassy 52 Barnov St. Tbilisi Tel: 225-22-86, 225-21-75, 225-26-70 E-mail: Republic of Bulgaria Embassy 15 Gorgasali Exit, 0105 Tbilisi, Georgia Tel: +995 32 291 01 94; +995 32 291 01 95 Fax: +99 532 291 02 70 Republic of Hungary Embassy 83 Lvovi Street, Tbilisi Tel: 39 90 08; E-mail: State of Israel Embassy 61 Agmashenebeli Ave. Tbilisi Tel: 95 17 09, 94 27 05 Embassy of Swiss Confederation’s Russian Federation Interests Section Embassy 51 Chavchavadze Av., Tbilisi Tel: 291-26-45, 291-24-06, 225-28-03 E-mail: Ukraine Embassy 75, Oniashvili St., Tbilisi Tel: 231-11-61, 231-12-02, 231-14-54 E-mail:; Consular Agency: 71, Melikishvili St., Batumi Tel: (8-88-222) 3-16-00/ 3-14-78 Republic of Turkey Embassy 35 Chavchavadze Ave., Tbilisi Tel: 225-20-72/73/74/76 Consulate General in Batumi 9 Ninoshvili Street, Batumi Tel: 422 25 58 00 Republic of Azerbaijan Embassy Kipshidze II-bl . N1., Tbilisi Tel: 225-26-39, 225-35-26/27/28 E-mail: Address: Dumbadze str. 14, Batumi Tel: 222-7-67-00; Fax: 222-7-34-43 Republic of Armenia Embassy 4 Tetelashvili St. Tbilisi Tel: 95-94-43, 95-17-23, 95-44-08 E-mail: Web: Consulate General, Batumi Address: Batumi, Gogebashvili str. 32, Apt. 16 Kingdom of Spain Embassy Rustaveli Ave. 24, I floor, Tbilisi Tel: 230-54-64 E-mail: emb.tiflis@maec.esRomania Embassy

caucasus business week 7 Kushitashvili St., Tbilisi Tel: 38-53-10; 25-00-98/97 E-mail: Republic of Poland Embassy 19 Brothers Zubalashvili St., Tbilisi Tel: 292-03-98 Web-site: Republic of Iraq Embassy Kobuleti str. 16, Tbilisi Tel: 291 35 96; 229 07 93 E-mail: Federative Republic of Brazil Embassy Chanturia street 6/2, Tbilisi Tel.: +995-32-293-2419 Fax.: +995-32-293-2416 Islamic Republic of Iran Embassy 80, I.Chavchavadze St. Tbilisi, Tel: 291-36-56, 291-36-58, 291-36-59, 291-36-60; Fax: 291-36-28 E-mail: United Nations Office Address: 9 Eristavi St. Tbilisi Tel: 225-11-26/28, 225-11-29/31 Fax: 225-02-71/72 E-mail: Web-site: International Monetary Fund Office Address : 4 Freedom Sq., GMT Plaza, Tbilisi Tel: 292-04-32/33/34 E-mail: Web-site: Asian Development Bank Georgian Resident Mission Address: 1, G. Tabidze Street

Freedom Square 0114 Tbilisi, Georgia Tel: +995 32 225 06 19 E-mail:; Web-site: World Bank Office Address : 5a Chavchavadze Av., lane-I, Tbilisi, Georgia ; Tel: 291-30-96, 291-26-89/59 Web-site: Regional Office of European Bank for Reconstruction and Development Address: 6 Marjanishvili St. Tbilisi Tel: 244 74 00, 292 05 13, 292 05 14 Web-site: Representation of the Council of Europe in Georgia Address : 26 Br. Kakabadze, Tbilisi Tel: 995 32 291 38 70/71/72/73 Fax: 995 32 291 38 74 Web-site: Embassy of the Slovak Republic Address: Chancery: 85 Irakli Abashidze St. Tbilisi, 0162 Georgia Consular Office: 38 Nino Chkheidze St. Tbilisi, 0102 Georgia Phone: 2 222 4437, 2 296 1913 e-mail:

Hotels in Georgia TBILISI MARRIOTT Tbilisi , 13 Rustaveli Ave. Tel: 77 92 00, COURTYARD MARRIOTT Tbilisi , 4 Freedom Sq. Tel: 77 91 00 RADISSON BLU HOTEL, TBILISI Rose Revolution Square 1 0108, Tbilisi Tel: +995 32 402200 RADISSON BLU HOTEL, BATUMI Ninoshvili Str. 1, 6000 Bat’umi, Georgia Tel: 8 422255555 SHERATON METECHI PALACE Tbilisi , 20 Telavi St. Tel: 77 20 20, SHERATON BATUMI 28 Rustaveli Street • Batumi Tel: (995)(422) 229000 HOLIDAY INN TBILISI Business hotel Addr: 1, 26 May Square Tel: +995 32 230 00 99 E-mail: Website: BETSY’S HOTEL With Marvellous Tbilisi Views Addr: 32/34 Makashvili St. Tbilisi Tel: +995 32 293 14 04; +995 32 292 39 96 Fax: +995 32 99 93 11 E-mail: Website:

Restaurants CORNER HOUSE Tbilisi, I. Chavchavadze ave. 10, Tel: 0322 47 00 49; Email: RESTAURANT BARAKONI Restaurant with healthy food. Georgian-European Cuisine Agmashenebeli Alley 13th Phone: 555 77 33 77 CHARDIN 12 Tbilisi , 12 Chardin St. , Tel: 92 32 38 CAFE 78 Best of the East and the West Lado Asatiani 33, SOLOLAKI 032 2305785; 574736290 BREAD HOUSE Tbilisi , 7 Gorgasali St. , Tel: 30 30 30 BUFETTI - ITALIAN RESTAURANT Tbilisi , 31 I. Abashidze St. , Tel: 22 49 61 DZVELI SAKHLI Tbilisi , 3 Right embankment , Tel: 92 34 97, 36 53 65, Fax: 98 27 81 IN THE SHADOW OF METEKHI Tbilisi , 29a Tsamebuli Ave. , Tel: 77 93 83, Fax: 77 93 83 SAKURA - JAPANESE RESTAURANT Tbilisi , 29 I. Abashidze St. , Tel: 29 31 08, Fax: 29 31 08 SIANGAN - CHINESE RESTAURANT Tbilisi , 41 Peking St , Tel: 37 96 88 VERA STEAK HOUSE Tbilisi , 37a Kostava St , Tel: 98 37 67 BELLE DE JOUR 29 I. Abashidze str, Tbilisi; Tel: (+995 32) 230 30 30 VONG 31 I. Abashidze str, Tbilisi Tel: (+995 32) 230 30 30 BRASSERIE L’EXPRESS 14 Chardin str, Tbilisi Tel: (+995 32) 230 30 30 TWO SIDE PARTY CLUB 7 Bambis Rigi, Tbilisi Tel: (+995 32) 230 30 30

Cinemas AKHMETELI Tbilisi. “Akhmeteli” Subway Station Tel: 58 66 69 AMIRANI Tbilisi. 36 Kostava St. Tel: 99 99 55, RUSTAVELI Tbilisi. 5 Rustaveli Ave. Tel: 92 03 57, 92 02 85, SAKARTVELO Tbilisi. 2/9 Guramishvili Ave. Tel: 8 322308080,

SH. RUSTAVELI STATE THEATRE Tbilisi. 17 Rustaveli Ave. Tel: 93 65 83, Fax: 99 63 73 TBILISI STATE MARIONETTE THEATRE Tbilisi. 26 Shavteli St. Tel: 98 65 89, Fax: 98 65 89 Z. PALIASHVILI TBILISI STATE THEATRE OF OPERA AND BALLET Tbilisi. 25 Rustaveli Ave. Tel: 98 32 49, Fax: 98 32 50

Galleries ART GALLERY LINE Tbilisi. 44 Leselidze St. BAIA GALLERY Tbilisi. 10 Chardin St. Tel: 75 45 10 GALLERY Tbilisi. 12 Erekle II St. Tel: 93 12 89

Real Estate International Real Estate Company (IREC) Tbilisi. 9 P. Aslanidi St. Tel: +995 32 238 058 Mob: 599 95 76 71 Email:

GSS Car rental offers a convenient service for those who are interested in renting car in Georgia. Rental fleet mainly consist of Japanese made SUV’s, the company has various models of cars including sedans and minivans which are in good technical condition. Contact information: Email: Address: Shalva Dadiani 10

Akhvledianis Khevi N13, Tbilisi, GE. +995322958377; +995599265432

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



PUBLICITY caucasus business week

February 29, 2016 #135