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May 30, 2016 #147
May 30, 2016, Issue 147 - www.cbw.ge
CSR
Georgian Railway
Banking News
Investing in Education - Largest Investor’s Social Responsibility
Double-deck Railcar Will Serve Passengers from July 2016
MEETING ROOM by PASHA Bank Hosts its First Business Conference
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Overview of Georgia’s External Trade
Banks’ Sector Profits Grow by 75% Commercial Banks Earned 70 million GEL Profits in May Pg. 4
The structure of trade partner countries has also changed. Despite low indicators in the previous years, imports from Canada has risen by about 40 times, from 11.6 million USD to 422 million USD (at the expense of imports of medications of 420 million USD); At the same time, Canada, according to the January to April indicators, emerged as Georgia’s number two trade partner country (450 million USD), while Turkey ranks first with 474 million USD. The top ten major trade partner countries also include: Russia, Ireland, China, Azerbaijan, Germany, Ukraine, Armenia and Italy. It should be also noted, as compared to the January to April period 2016 (specified figures – 689 million USD) (according to preliminary estimations – 608 million USD), Georgia’s exports potential decreased (by 12%). The main exports item, like the previous years, is copper ores and concentrates (113 million), motorcars come second with 48 million USD, Filbert and other nuts rank third with 45 million USD. Exports of natural wines and mineral waters made up 55 million USD. Pg. 9
61% of Population Want High-Income Citizens to Pay Higher Insurance Premium On March 16-28 Transparency International – Georgia conducted a survey all over Georgia. The survey process was carried out by the Caucasus Research Resources Center (CRRC) and 2032 citizens were questioned. According to the research, 61% of the population suggest that high-income citizens should pay higher health insurance premium and in this way partly finance health insurance of low-income citizens. It should be noted the ratio of this category of respondents has increased by 5% compared to 2015. 18% of the respondents believe that all citizens should fund their personal health insurance services themselves, despite the volume of incomes. 44% of the respondents want the Authorities to co-fund personal health insurance services partly. Pg. 11
2 GOVERNMENT
NEWSROOM Almost 1.8 million people employed in Georgia in 2015 The Geostat published employment and unemployment annual data of 2015. Geostat data showed: 2,021,500 people in Georgia’s workforce. 958,300 people outside the labour force category.
Government Owns 171 Inactive Enterprises LEPL National Agency of State Property of the Ministry of Economy and Sustainable Development of Georgia is implementing quantitative optimization-minimization process of enterprises that are facing essential financial difficulties.
ECONOMY
Georgia Received 50 million EUR from EU to Develop Agricultural Field The amount received will be fully spent on rural development programs, such as support for agricultural cooperatives, and food safety.
Silk Road Route Starts Transportation of Cargo Through Georgia Georgian Railways declares, that route of 1 block-train is considered in per week at the starting stage, which should be increased for the future and bring different cargo in the mentioned corridor.
BANKING
National Bank Fines Microfinance Organizations According to the source, microfinance organizations do not agree with the NBG decision and they plan to take certain reciprocal steps. They are able to sue against the decision to the court.
“Korstandart Bank” Changed its Name After 17 years of activity in the financial market of Georgia, “Korstandart Bank” has changed its name to “Terrabank”. At the first stage two branches of the bank in Tbilisi have been updated.
BUSINESS
15th Georgian Wine House Opens in China China’s Zhejiang province in the country’s west coast is welcoming a new Georgian wine house in Yiwu city, home to 1.2 million people. The centre was opened on May 22 by one of China’s largest Georgian wine importing companies Soulun.
EU offers €50 million to develop food safety standards in Georgia Georgia will receive €50 million from the European Union to improve national food safety standards. A special agreement will be signed in Georgia’s capital Tbilisi.
COMPANY
SOCAR to Expand Capacity of Kulevi Black Sea Oil Terminal in Georgia SOCAR will expand the capacity of the Kulevi Black Sea oil terminal in Georgia from the current 320,000 cubic meters to 380,000 cubic meters, a source in SOCAR told Trend.
Making history: Georgia builds world’s fifth largest Technological Institute Construction of Georgia’s Technological Institute, a science-education centre for modern technology development, has officially begun in capital Tbilisi. The new facility will be the first of its kind in the country and the fifth largest technological institute in the world, following Italy, Switzerland, Japan and Austria. World leading scientists gathered in Tbilisi to celebrate the official beginning of the Technological Institute. Building the facility itself will be a cutting-edge project in technology. The centre will be a place where the region’s leading physicians, chemists, biologists, medical experts and computer specialists will work on future’s mega projects, conduct experiments and research and come up with innovative ideas. One of the main directions the centre will work on will be Hadron Therapy – an innovative treatment for cancer where radiation only targets damaged cells while healthy tissues remain intact.
The centre will also serve as an educational space offering master’s and PhD programs to future scientists. “I’m confident this Institute will become one of the most prestigious science-education centres in the region,” said Georgia’s Prime Minister Giorgi Kvirikashvili at a ceremony this afternoon marking the beginning of construction. Among the invited guests to the ceremony was Professor Lars Brink, a member of the Royal Swedish Academy of Sciences who chaired the Nobel Committee for Physics.
“Today is a great day for Georgia and a great day for science,” said Professor Brink in his speech. The Professor recalled his previous visit to Georgia and compared it to this latest visit. When he first visited Georgia it was during the Soviet era and he saw „a chaotic system and friendly people”; this time he saw
“a very organised system and still friendly people”. He congratulated Georgia for creating the new Technological Institute and he believed the facility would benefit the people of Georgia and all over the world. Georgia collaborated with leading international partners to launch the project. Today’s ceremony was attended by top representatives from international institutions including: CERN - the European Organisation for Nuclear Research; CNAO - Italy’s National Centre of Oncological Hadron Therapy; and INFN - the National Institute of Nuclear Physics. All expenses needed to build the Technological Institute will be provided by the Cartu Charity Foundation - a charity fund established and financed by Georgian business tycoon and former Prime Minister Bidzina Ivanishvili. Ivanishvili also attended today’s inauguration of construction.
Georgia reveals its economic reform progress to donors The progress of reforms implemented to boost economic growth in Georgia is being presented to Georgia’s donor organisations and countries. A special coordination group on economic growth met for the first time at the Administration of the Government of Georgia to discuss the economic reforms already implemented and future plans. Georgia’s business and investment climate reforms, access to finances, supporting small and medium-sized enterprises (SMEs), business development, innovations and technologies, development of tourism and infrastructure and utilisation of Georgia’s transit potential were the main topics of today’s meeting. The Government of Georgia has an intensive reform agenda which is planned to be implemented in the nearest future. We provided information to donors and we now hope to strengthen [Georgia’s] implemen-
BUSINESS WEEK caucasus
The Editorial Board Follows Press Freedom Principles Publisher: LLC Caucasian Business Week - CBW Address: Aleksidze Street 12 Director: Levan Beglarishvili WWW.CBW.GE
May 30, 2016 #147
Mobile phone: +995 591 013936 Email: caucasianbusiness@gmail.com
tation of economic reforms through cooperating with them,” said Georgia’s Deputy Economic Minister Irma Kavtaradze. European Union (EU) Delegation to Georgia envoy Kaido Sierl said the EU was cooperating with Georgia within the European Neighbourhood Policy and within the Association Agreement (AA), which Georgia signed in June 2014.
The topics related to economic growth are very important for the EU. We will continue supporting Georgia in the future as well,” Sirel said. Over time the Government of Georgia will provide information about how the country was implementing its reforms to donor countries and organisations.
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Leading Georgian Laboratories Can Only Partly Satisfy EU Standards
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Azerbaijani FM Talks Importance of Southern Gas Corridor for Europe
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Chinese Airline to Perform Direct Flights from Georgia to USA
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Carbamide Plant Construction in Georgia Postponed
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Registration Economic Zone to Open at Larsi Checkpoint
Editor: Nutsa Galumashvili. Mobile phone: 595 380382 Reporters: Nino Kuparashvili, Lazare Gvimradze; Shiva Parizad. Designer illustrator: Ilia Chrelashvili. Technical Assistant: Giorgi Kheladze
Source: www.commersant.ge, www.bpi.ge, www.gbc.ge, www.agenda.ge, www.civil.ge
May 30, 2016 #147
PUBLICITY
GEORGIAN RAILWAY URGES YOU TO CROSS THE RAILWAY TRACK IN ONLY SPECIALLY ALLOTED ZONES AND TAKE CARE OF YOUR LIFE! Crossing the railway track in the unpermitted places violates article 106 of the Georgian Code of Administrative Offences and this lawbreaking results in due sanctions.
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ECONO-MIX
We Bought Sheraton Hotel at 62 million USD, but RAKIA Refuses to Transmit Our Stakes
MARK-MILO LUBESA
Banks’ Sector Profits Grow by 75%
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We have already paid 20 million USD,
VI2 Partners but RAKIA rejects to transmit our stake GmbH or to return the paid amount, he added. Representative
“We see the business ethics violation. In 2011-2012 we bought Sheraton hotel from RAKIA. Total value of the deal is 62.5 million USD and we have already paid 20 million USD. Over the past years we have taken tireless efforts to resolve this issue in friendly atmosphere. Regretfully, RAKIA does not plan to return the paid amount and acts dishonestly. This is strategically important facility in Tbilisi and it requires respective management. This fact also distorts the investment image of Georgia. Despite the mentioned problem, we do not plan to cease making investments in Georgia. We are sure the Georgian court will valuably resolve this problem. We are determined to collect this sum from RAKIA and receive a compensation too”, the company representative noted. As reported, on May 24 Tbilisi City Court seized Sheraton Metechi Palace hotel and all Georgiabased assets of RAKIA.
Commercial Banks Earned 70 million GEL Profits in May
MERAB JANIASHVILI Economic Analyst
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ccording to the statistics of the National Bank of Georgia (NBG), the Georgian bank sector ended the January to April period in 180.46 million GEL net profits. At the end of April, 2015 the sector’s net profits made up 114.8 million GEL and consequently, the profits have increased by 57.2% this year. In January to April 2016 the revenues of commercial banks made up 1.02 billion GEL. The revenues marked 1.3 billion GEL in January to April 2015. The sector’s expenditures have also shrunk from 1.1 billion GEL to 817.6 million GEL. As of May 1, 2016 losses of four commercial banks made up 17 million GEL.
MEETING ROOM by PASHA Bank Hosts its First Business Conference On May 25th in Radisson Blu Iveria PASHA Bank hosted the first business conference within the scope of its new project MEETING ROOM. The conference was supported by Georgian National Tourism Administration and Colliers International Georgia and its topic was “Hotel Development in Georgia – The Best Practices”. Georgian National Tourism Administration expressed its keen interest towards the forum. Considering the growing number of visitors to our country private sector’s involvement in development of hospitality sector is of major importance. Mr. George Chogovadze presented to the audience the visitor statistics, achievements and future plans of the Tourism Administration. Mr. Mark Finney - a specially invited guest speaker from Colliers International UK Office - spoke about international brand operators and benefits they bring. Colliers International is a leading global real estate services company, with its full service licensed office in Georgia providing real estate research, valuation and advisory, corporate brokerage and development consulting services to its clients. The conference was attended by the representatives of the companies working in hospitality sector and related fields, among them: Hotels and Preference, Rixos, Hilton, Marriott, Dreamland Oasis, Axis, Anagi and others. „We are happy that MEETING ROOM has launched successfully creating an important platform for exchanging ideas and experiences. We believe this gathering will positivel influence the development of hospitality sector in our country with PASHA Bank playing its modest role in the process. Under the umbrella of MEETING ROOM PASHA Bank will host several more business conferences focused on different industries.“ – Said Mr. Goga Japaridze, CCO and Member of Board of Directors at PASHA Bank. MEETING ROOM is a new project by PASHA Bank – a cycle of business conferences that aim to bring together participants from various industries providing a platform for sharing ideas and best practices as it relates to raising the capital for various projects in respective industries.
May 30, 2016 #147
KSB Bank has seen major losses of 13.709 million GEL. This is the worst indicator among losing commercial banks. KSB Bank was recently renamed into TERRA Bank as part of the re-branding program.
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The deposits dollarization coefficient makes up 70%. This indicator has increased by 4% year on year
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Caucasus Development Bank has recorded second worst result in terms of losses of 2.303 million GEL. Silk Road Bank is third with 0.851 million GEL losses and Progress Bank is fourth with 0.472 million GEL losses. It should be also noted that the month of May has brought considerable benefits to the Georgian bank sector, in general. In May 2015 the sector’s profits marked 70.8 million GEL. In May 2014 the sector’s profits made up 17.7 million GEL. Net profits of commercial banks in January to May period marked 197.5 million GEL. TBC Bank is leader among profitable banks with 68.2 million GEL. Bank of Georgia ranks second with 55 million GEL. It
should be noted the ratio of the mentioned two leading commercial banks in total profits of the Georgian bank sector makes up 62%. The dollarization coefficient also grows in the bank sector along with national currency volatility. It should be noted the deposits dollarization coefficient makes up 70%. This indicator has increased by 4% year on year. The loans dollarization indicator was also high with 63.9% in April, while the indicator was 64.6% in the same period of 2015. In April 2016, as compared to the previous month of March, the volume of deposits drawn by commercial banks increased by 242 million GEL. As compared to April 2015, in April 2016 GEL-denominated deposits decreased by 142 million GEL. In April 2016 foreign currency denominated deposits increased by 156 million USD. The volume has increased by 929 million USD year on year. The deposits dollarization coefficient marked 70.5%. A year ago the dollarization coefficient was 66.3%. In whole, foreign currency denominated loans marked 11 billion GEL, while GEL denominated deposits amounted to 4.6 billion GEL. As of May 1, 2016 the averaged annual interest rate on USD-denominated deposits made up 3.5%, down from 4.4% compared to the same period of 2015. The averaged annual interest rate on GEL-denominated deposits made up 8.7%, while the indicator was 7.4% a year ago. In April 2016, as compared to March, GEL-denominated loans portfolio (without interbank loans) increased by 2 million GEL, while USDdenominated loans portfolio decreased by 40 million USD. Over the past year, GEL-denominated loans increased by 345 million GEL and USD denominated loans increased by 321 million USD.
In total loans the ratio of foreign currency denominated loans made up 63.9%, down from 64.6% year on year. It should be noted in April 2 the annual average interest rate on GEL-denominated loans increased by 0.3% to 21.2%. The interest rates on USD-denominated loans decreased by 0.3% to 9.7%. As to main sources of revenues of commercial banks, proceeds from loans rank first (688 million GEL), including 407 million GEL from retail loans and 279 million GEL from corporate loans. It should be also noted that profits from currency conversion operations made up 100 million GEL in January-April 2016, while profits from currency conversion made up 13 million GEL in the same period of 2015.
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Georgian Wine Presented at the International Exhibition in England
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Tbilisi City Court Sequestered Sheraton Metechi Palace Hotel
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Europe’s Short-Term Visas Target the Wrong Countries
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Tbilisi Lights Up Red As Georgia Celebrates its 25th Independence Day
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StreetArtNews: Gaze an Installation by STFNV in Tbilisi, Georgia
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Winery Khareba wins gold and silver at Citadelles Du Vin in Bordeaux
May 30, 2016 #147
PUBLICITY
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BANKING
May 30, 2016 #147
A consumer loan or an installment loan – what to consider when using these two banking products
- What do consumer loans and installment loans have in common and what are the major differences between them? - Both consumer loans and installment loans are banking products and they serve consumers. The biggest difference between them is that, in the case of an installment loan, the desired product can be purchased directly at a partner store, without having to visit the bank. The price of the purchased product will be directly transferred to the partner company. In case of a consumer loan, you receive the loan amount in cash at the bank and, after you use this amount as desired, you can also apply for an additional amount with this product. Consumer loans and installment loans also differ according to other parameters, in particular:
Nino Masurashvili TBC Bank’s deputy CEO
Many of us have found ourselves in a situation when we had to choose between two banking products– a consumer loan and an installment loan. What are the major differences between a consumer loan and an installment loan? When is one more financially beneficial than the other and what should we pay attention to when using these two products?
• An installment loan is approved based on the client’s personal identification card and the approval process takes just 15 minutes. For the approval of a consumer loan, a customer needs to present proof of salary and other documents, in addition to a personal identification card. A consumer loan takes from 15 minutes to one hour to be processed. • The minimum amount of an installment loan is GEL 100 and the maximum is GEL 5000; a consumer loan starts from GEL 300 and the maximum amount is GEL 40 000. - Which of these two banking products are the most flexible and convenient for the consumer?
- Both products are flexible and convenient; however, the best choice depends on a customer’s needs and requirements. The convenience of the installment loan is the fact that it takes less time to be processed and the customer does not have to visit the bank. However, when applying for this product, the customer should consider the funding limit set on this type of loan, as well as the fact that it is not available for every kind of purchase. The installment loan is available in bank branches and service centers, as well as directly in stores and service providers. There is a total of 450 partner stores and services providers. In case of a consumer loan, the customer has to visit the bank branch or service center. Customer can also apply for the loan via our internet banking service. A consumer loan can have any purpose and the limit is much higher. The customer has more freedom in how they spend the loan. - What is a 0% installment loan? - A 0% installment loan is an installment loan with no additional costs (disbursement commission, advance repayment fee or other fees), which the bank client can receive directly at the store or service provider. Any customer can purchase any item with a 0% installment loan and receive this service with just their ID card in 15 minutes. - When we have to choose between consumer and installment loans for the same purpose, what aspects of these two products should we pay attention to in order to make the correct financial decision?
- When choosing between consumer and installment loans, we should definitely analyze which one is less costly for the consumer. In this sense, the customers should consider the following factors: • Which of the two loans has a lower effective interest rate for the same term (I must note that the loan officer who approves the loan is obliged to inform clients about the loan’s effective interest rate); • Which of them offers a lower monthly payment, the consumer loan or the installment loan; • The purpose of the loan (Will it be used to purchase an item or to cover personal expenses?); • What is the amount the customer needs? If the customer needs more than GEL 5000, then he or she should apply for a consumer loan. - What is a loan’s effective interest rate and why should the customer pay attention to it? The effective interest rate reflects all the obligatory costs related to the purchase of a particular product. It is important that customers make a decision based on the effective interest rate, as that fully reflects all the costs related to a particular product. - Is collateral necessary for an installment or consumer loan and, if yes, what type of collateral is needed? There are two types of collateral: a letter of guarantee and real estate. Collateral is usually necessary for large consumer loans. As a rule, the bank does not require any collateral for installment loans.
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CSR
May 30, 2016 #147
AGL is making education and awareness raising a priority in highland Adjara
Investing in Education Largest Investor’s Social Responsibility Implemented and ongoing projects: English language and pedagogical training for local English teachers After school English clubs with nativeEnglish speaking teachers English language essay and spelling competitions for local students Road safety trainings Health awareness trainings University scholarships for 20 students from highland Adjara Internship at Shuakhevi HPP construction sites for students from the Faculty of Energy at Georgian Technical University
Giorgi Putkaradze Funded Student
English language courses to help local students prepare for the national university entrance exams.
Adjaristsqali Georgia Emerges as Number One Investor in Ajara According to the recent years’ statistics, Adjaristsqali Georgia is reported to be number one investor in the autonomous republic of Ajara, Georgia. The statistics shows that Adjaristsqali Georgia has made a major investments in 2013-2015. Top ten investor companies in terms of FDI are as follows: LLC Adjaristsqali Georgia LLC Medea Operating Georgia LLC Batumi Tower LLC Deckon LLC Mersin Tourism LLC Kervan Tourism JSC Ajara Resorts
LLC Dreamland Oasis LLC Koromkheti Georgia LLC Ajara Textile According to Geostat, in 2009 FDI inflows to the region made up 99.386 million USD, 56.573 million USD in 2010, 93.868 million USD in 2011 and 39.105 million USD in 2012. In 2013 investment inflows to the Ajara Region made up 61.544milion USD, in 2014 – 159.275 million USD. Under the final report for 2015, FDI inflows to the Ajara Region made up 121.324 million USD. FDI inflows in 2009-2015 period marked 631.076 million USD.
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Students participate in the building of power stations and dams and in the construction of tunnels
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djaristsqali Georgia LLC (AGL) is constructing the Shuakhevi Hydro Power Project (HPP) in highland Adjara. In total, USD 416 million have been invested in the project. The company is helping to promote the long-term development of the region not only by building a hydro power project but also by implementing a wide variety of corporate social responsibility projects. Based on a study commissioned at the outset of the project, AGL identified education and awareness raising among the key priorities for its social responsibility efforts. One of the largest and most successful projects that AGL has implemented in Adjara has been its English language trainings for students preparing to take the national university entrance exam. Local English teachers were selected to serve as trainers based on a competition organized by the Ministry of Education of Adjara. At the same time, AGL tested the English skills of 12th grade students from schools in Khulo and Shuakhevi. 135 local stu-
Probation of Students at Shuakhevi HPP dents were then organized into 11 groups at 5 public schools. In addition to providing the trainings, AGL also provides students with transportation home on chartered minibuses and consistently monitors the project throughout its implementation. The AGL internship program has also been very successful. The second group of student interns will start at the Shuakhevi HPP a month from now. AGL recently conducted another presentation at Georgian Technical University and is receiving many applications. Once the applications are in, the project’s deputy director Josh Gerard will personally interview students and select the winners. AGL is helping develop and strengthen professional staff in the Georgian hydropower sector by inviting university students from the Faculty of Energy at Georgian Technical University to intern at the Shuakhevi HPP. These interns are gaining theoretical knowledge and practical skills by working in different units on rotation. Students participate in the building of power stations and dams and in the construction of tunnels. As part of this program, AGL has been funding the internships of successful local students since 2015. As many as 20 students from the Khulo and Shuakhevi municipalities have been awarded fully-funded internships. We will continue to finance these students’ education for three years contingent upon their continued success on their semester exams. AGL’s goal in all of its social projects is to promote the long-term development of highland Adjara.
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INTERVIEW
May 30, 2016 #147
“Reasonable salaries, good developers, reliable internet, easy business registration, a creative and solid start-up community, and a nice climate”, this is how Hila Peled CEO of Topishare describes Georgia’s business atmosphere in an interview with CBW.
Georgia is in a good position, and I saw the potential it had. The location, the atmosphere. And I know other startups, and investors, will see this as well.
NUTSA GALUMASHVILI
we’re collaborating closely with them in helping Georgia to build a solid start-up community. - One of your articles titles like this: “Global start-ups: cut costs! Think Tbilisi, not Silicon Valley”. This is home to hundreds of start-up and global technology companies, with Google, Apple and Facebook among the most prominent. What made you to say that and how do you think will Georgia become a startup nation? - You can see globally a major change happening, especially within silicon valley: investors and startups are looking at different places to be based. You should realize: operating from silicon valley is very expensive. If you’re an investor, your money will go to extremely high salaries for developers, etc, and won’t go into the product itself. Same goes for London, Sweden, and others. Investors start to realize that the largest percentage of their investment goes to merely operating the start-up, not the idea it has. I have set up several different start-ups, and I believe a start-up is not only a business, it’s something you create for people. And you create options for the younger generation. You can do something good for where you are located. And Georgia is in a good position, and I saw the potential it had. The location, the atmosphere. And I know other start-ups, and investors, will see this as well. - What activities do you plan in the near future? Tell us about your plans and currently on what are you working on? - We want to share with you a little secret. We are closing our first investment round with an investor for $1m, we are currently evaluated at $10m. (and it’s not the first investor who wanted to invest in us, we declined three previous investors). This gives us the option to build our app, to build tools for people with disabilities, to push our marketing, hire more people in Georgia, translate topishare into many different languages, and we have some other features that will be implemented soon as well. What this shows as well, is that Georgia can be the next silicon valley. If we can raise this from outside of Georgia, while operating from here, others can as well. If you have a great idea, an amazing team, the right timing, and a smart business plan, you will find someone who believes in you.
Hila Paled CEO of Topishare For the last few years, startups have become country’s one of the most significant issues. Georgia is making efforts in funding local innovative projects and also attracting international startups. - Tell us briefly about your company; what you do, how you started and etc. - Topishare was born in the deep jungles of Costa Rica where we had moved to escape our ‘cushy’ western lifestyle, after 15 years, 7 days a week, 20 hours a day of setting up and running tech start-ups from the UK and Israel. My 22 year old daughter Rotem realized - with monkeys flying around, snakes in the pool, and amazing sunsets - that the local community in St. Theresa was unable to talk to the people outside of Costa Rica about their amazing community: Facebook has only 2.7% organic reach, which means that only 2.7% of the people who like your page can see what you post. Unless you pay, of course, then the number goes up slightly. And that just didn’t feel right to my daughter. While we started working on a small online project for the community in Costa Rica, we soon realized that although social networks started out for all the good reasons, they have all become corrupt: they violate the users’ privacy by collecting and storing their information (even stuff you draft but delete is stored, analyzed, and sold to advertisers); they decide, through algorithms what you see and don’t see, you can’t decide this yourself; they make money over what you share (through these advertisements); and if you have a page and you want to boost a post to certain countries you choose, they decide to boost it in only a few of them. That’s when we decided to develop a better alternative, where you can talk to people who share the same interests, and where your privacy is protected: and topishare was born. I understood the potential immediately, and realized topishare was something needed in the world today. - In a world where people are “addicted” to their famous social net-
Tbilisi Based StartUp Transforms Social Networks works, how is your company going to establish itself in such a huge market? - I don’t think people are ‘addicted’, and the statistics show something different as well. People still use the major social networks, but they are not happy with them. People use Facebook because their friends, family and co-workers are on it, they got used to it, it became a part of their life. But the numbers clearly show that people are looking for something better, a place where their privacy is protected, where you don’t scroll for hours on your newsfeed and not see anything you’re interested in, and where you can have interesting global conversations. And that’s what topishare offers. And I wouldn’t start such a huge project if I didn’t feel like something needed to change in the online world. Me and my husband Yair invested $500k, our time, our skills, in topishare, and I want to bring this change together with the users. And you can only do this when you have a fair company. That is why topishare will share its profits with the users through multiple different models. One of these is that users will be able to control the advertising, the user can earn money by deciding which advertisement goes where. - As we know your company is aimed at connecting people in one social network, where you cannot find any personal information, do you think that this will play a sufficient role in attracting people to join your community? - At topishare people can decide how much information they want to share, they can be completely anonymous, or not at all, it’s their decision. And this is one of our killer features: sometimes you don’t want to whole world to know you love Justin Bieber, but you may want to share your
love for him with other people. But this is not our only feature. We also don’t sell people’s personal information, like Facebook, Instagram, and all the others do. We have many more features that will be uploaded to topishare in the near future. We recently released audio posting, this means that you can record what you say and post it instantly to topishare. If you’re not confident you write well, but you feel like you express yourself better when you speak, this feature is perfect for you. - Facebook and other social networks benefit from letting businesses know in what people show their interests, how are you going to develop your business in this aspect? - At topishare we have a business model that doesn’t require users to give up their privacy, but where businesses can make money as well. Topishare is based on so-called kingdoms (as we call groups/threads), so advertising is targeted because they are at the kingdoms that talk about the same issue: cat food in the side-box in a kingdom about cats, dvd advertising in a side-box in a kingdom on the Game of Thrones, the possibilities are endless. Businesses can also open their own kingdoms, for free, where they have 100% organic reach with their audience. Facebook and others limit organic reach for businesses, people who like their business can’t see what they post. This is not the case with topishare: no algorithms that limit your outreach. But if you want to advertise outside your own kingdom, you can pay a reasonable amount for this. We have other business-models as well, which we will implement in the future.
- How do you see your company in future, will your social network be as huge as other platforms? - If we will continue in our current rate, we have users in over 70 countries after we launched our beta version only 2 months ago, we will easily become a major competitor to Facebook, Twitter, Instagram, Pinterest and others. The main difference with these platforms is that we believe in doing good, we are in the game to change the online world for the better, to create a platform for the users, and that is our strength. - You mentioned in your article that startups need to move to Georgia, which indeed is a place where you can develop a project from an idea to beta, why do you came up with the idea of moving to Georgia and how did you get to know about this country and its opportunities? - After having run topishare from Costa Rica, we decided we needed a better internet connection, no electricity outings, and we moved to Panama. But shady investors made us re-think our decision and based on advice of a friend we moved their business to Bulgaria. But an uneasy business-to-business relation atmosphere and non-English speaking bureaucrats (who you need to deal with when you start a business) weren’t ideal either. Our lawyer had told us about Georgia already in 2008, and we decided to research it online. We had no prior connections here, but after having been in Tbilisi for 7 months we are very happy with our move and plan on staying here: reasonable salaries, good developers, reliable internet, easy business registration, a creative and solid start-up community, and a nice climate. Currently we are operating from the Tech Park that GITA set up, and
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ECONOMY
May 30, 2016 #147
Overview of Georgia’s External Trade Canada Emerges as Number Two Trade Partner According to a preliminary report by Geostat, the national statistics service of Georgia, Georgia’s foreign trade turnover in January to April 2016 marked 3.3 billion USD, up 8% compared to the same period of 2015 (+300 million USD).
VAKHTANG CHARAIA TSU Analysis and Prognosis Center
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he structure of trade partner countries has also changed. Despite low indicators in the previous years, imports from Canada has risen by about 40 times, from 11.6 million USD to 422 million USD (at the expense of imports of medications of 420 million USD); At the same time, Canada, according to the January to April indicators, emerged as Georgia’s number two trade partner country (450 million USD), while Turkey ranks first with 474 million USD. The top ten major trade partner countries also include: Russia, Ireland, China, Azerbaijan, Germany, Ukraine, Armenia and Italy. It should be also noted, as compared to the January to April period 2016 (specified figures – 689 million USD) (according to preliminary estimations – 608 million USD), Georgia’s exports potential decreased (by 12%).
The main exports item, like the previous years, is copper ores and concentrates (113 million), motorcars come second with 48 million USD,
Filbert and other nuts rank third with 45 million USD. Exports of natural wines and mineral waters made up 55 million USD. It should be also noted the Georgian exports is declining because of increased value of imports as a result of certain destabilization in trade partner countries (Turkey, Russia, Armenia, Azerbaijan, Ukraine and so on) and the national currency depreciation.
The structure of export goods, as well as their sales market, is changing. Along with reduction of the CIS countries ratio, the demand for Georgian products has increased on the EU market. Despite contraction in total exports, the improved indicators of net exports should be also stressed. In whole, products of Georgian origin makes up ¾ of total exports and this is very important to achieve the positive
balance. In other equal conditions, the high ratio of re-exports is the result of the increased imports. As to the imports, as compared to January to April 2015 (by specified indicators – 2.35 billion USD), in January to April 2016 (according to preliminary indicators – 2.68 billion USD), Georgia’s exports potential increased (by 14%). The main exports products are: medications – 722 million USD (eightfold upturn compared to January to April 2015); motorcars – 136 million USD (down 37%); oil and oil products – 135 million USD (down 36%). It should be also noted that Georgia imports copper ores and concentrates (92 million USD) and imports copper ores (113 million USD). Imports indicators increased in January to April 2016 – 977 million USD indicator, that is an about doubled figure compared to the same period of 2015 (551 million USD in April 2015). This is tightly interconnected with the national currency strengthening in April 2016, as well as intensification of economic activity, including growth in tourism inflows that
is directly related to upturn in consumption of imported products. In January-April 2016, Georgia’s foreign trade turnover with the EU countries exceeded 900 million USD, up 11% compared to the same period of 2015 (exports of 147 million USD and imports of 789 million USD). Georgia’s foreign trade turnover with the CIS countries in January-April 2016 marked 765 million USD (exports of 184 million USD and imports of 581 million USD), down 15% compared to the same period of 2015. These indicators prove that Georgia’s foreign trade turnover with the CIS countries is declining, while the turnover with the EU is growing.
Regretfully, Georgia’s foreign trade turnover in January to April 2016 recorded negative balance traditionally and this figure in absolute indicators make up 2.07 billion USD, 63% of the foreign trade turnover. Consequently, domestic production, its exports and replacement of imports by domestic products remains a relevant issue again. Fortunately, despite modest indicators in January to April 2016, the country records the best regional economic growth forecast of 3.6%. Both domestic and foreign competent organizations and field specialists stress that the country has very optimistic perspectives. Intensified trade-economic-political relations with the EU additionally enhance these perspectives and open new opportunities for Georgia in terms of new markets and long-term stability and sustainable development.
www.cbw.ge <<
‘Anthony Bourdain: Parts Unknown’ in Tbilisi, Georgia: Just the OneLiners
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The Intoxicating War Between Science and Tradition
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Tbilisi Underground Carriages Equipped with Supervision Cameras and Monitors
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Paradox of Plenty, Redux: Azerbaijan Grapples with Low Oil Prices
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Computer Games Bring Georgian and Abkhazian Youth Together
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BUSINESS
May 30, 2016 #147
Construction of $120m Hotel To Start in Batumi Orbi Group plans to launch construction of Twin Tower, a new international-standard hotel complex, in Batumi. The project combines two 45-floor blocks that will hold 4 500 hotel suites. The new complex will be erected on Khimshiashvili street in Batumi. “Twin Tower complex ranks 6th worldwide in terms of hotel suites quantity. The project’s investment value makes up 120 million USD. The hotel complex construction works will start in June 2016. The construction process will employ 1500 workers, while more than 3000 local residents will be employed after the hotel complex is put into exploitation.
INVESTMENT
REGION
Co-Investment Fund Invests $120m in Concrete Production Facilities HeidelbergCement Caucasus (“HC Caucasus”), Georgian Co-Investment Fund(“GCF”) and Hunnewell Partners LLP (“Hunnewell”) held an official presentation of their US$120 million joint investment project to upgrade HeidelbergCement’s existing cement and concrete facilities in Georgia. The final closing of the agreement is scheduled for June 2016. Aside from the financial contribution, the partnership will enable HC Caucasus to capitalise on GCF’s portfolio of cement-intensive projects and Hunnewell’s expertise
in primary construction materials. US$100 million will be spent on a new cement production line in Kaspi using the dry process that will push down production costs substantially. The main work will begin in July 2016 although preparatory work has been underway in Kaspi since late 2015. In order to reach a strong vertically integrated business setup, an additional US$20 million will be invested in upgrading and developing the supporting network of ready-mixed concrete and aggregates plants. The parties involved
NEWS
HONEY
First Online Outlet Shop Launches in Georgia
Honey from Hilton Batumi’s Fourth Floor
Georgia’s first online outlet shop launched in February 2016 Gebuy.net. Multi brand shop offers its customers wide variety of accessories, shoes and cloths for women, men and kids. Outlet park is a shop, where different brands sell their original collections at discount prices. The inspiration of creating Gebuy became the shortage of premium class brands on Georgian market.
Georgian pitch wine is represented in London However, 9 cellars were nominated at the international exhibition, which was arranged by Isabelle Lezheron, the famous French wine master: “Satsnakheili”, “Winery Nika”, “Gotsa’s Wines”, “Temi”, “The Twins’ Wine Caller”, “Manaveli”, “ Natenadze’s Wine” and “Khohbis Tsremelbi”. George
Samanishvili, head of Wine Agency focused attention on attractiveness of British market.
are also looking into opportunities for expanding the production base in West Georgia once the proposed project is completed. Apart from introducing new technologies, the project will contribute to Georgia’s economy through an improved trade balance and the creation of additional jobs within the sector. The upgrade and development of the Georgian business of HC Caucasus will take place between 2016 and 2018. HeidelbergCement started doing business in Georgia in 2006. After ten years of continuous business
Stewart Nelson General Director of Hilton Batumi
Four bee families occupy the 4th floor of Hilton Batumi hotel. A beekeeper cares for the bees that collect flower extracts in Batumi boulevard and the 6th of May Park. After the hotel management receives the first honey, Hilton Batumi guests will be able to taste natural Georgian honey made immediately at the hotel. Revenues from sales of this honey will finance charity campaigns for orphan children in regions. “Our bees are very friendly and they do not attack anyone”, Hilton Batumi manager general Stewart Nelson noted and pointed to hives on the 4th floor. This territory are fully occupied by them. The terrace looks over the May 6th Park and Batumi Old Boulevard and our bees collect May flower extract there. The initiative for honey production at the five-star hotel was proposed by Hilton Batumi and the Lesser Caucasus Alliances program that is implemented by international NGO Mercy Corps, by financial support of the Swiss Agency for Development and Cooperation. “Georgia preserves ancient traditions of beekeeping and we want to participate in exposing and advertising this tradition. Hilton Batumi has accepted bees as a part of the domestic culture and production and decided to accommodate several families at the open terrace. At the hotel we have a honey corner with honey products from nine gorges. However, we have decided to launch honey production at the hotel too, because this product represents an important part of a breakfast at the hotel. We also plan to use the honey for advertising the Georgian product. This a social project, to a certain extent, because incomes from the hotel honey will be spent on orphan children in regions. Sometimes, simple routine may grow into good stories and Hilton Honey is a good sample for this”, Stewart Nelson said.
development, its Georgian subsidiary, HC Caucasus, currently operates three integrated cement plants (in Kaspi and Rustavi), a cement grinding facility in Poti and a cement terminal at the Black Sea coast. The cement production capacity exceeds 2 million tons of high quality cement. The cement business is supported by a strong network of 12 ready-mixed concrete plants that produce more than 670,000m³ concrete per year. Sand and concrete aggregates are partly supplied by two of HC Caucacus’ aggregate pits in Batumi and Tbilisi.
Arabian Company Plans to Invest $500 mln at the Shaori Lake Arabian company ISRAIL AHMADOV INVESTMENT LLC plans to invest $500 million at the Shaori Lake territory in Racha. The company will build sport and leisure complex in the area. According to the company at least $ 500 million will be invested. Additionally to this company other Arabian and European companies will be also involved in the construction process. The company has already been presented the project to the local and executive authorities and according to their information, at this stage negotiations are going on. As the company explains, by now geological and environmental studies of the territory are carried out in order to determine where it is possible to start building processes. It is stated by the company that the green cover of the area will remain unchanged. According to the project, construction of the complex will be implemented gradually. First of all, hotels and holiday houses construction will take place. Then the company has a desire to build living houses and cottages.
May 30, 2016 #147
Panaskerteli index remains the same almost. The index has declined by only 0.27%. This fact suggests that the market has not recoded any essential changes that would make direct or indirect affect on prices.
Panaskerteli Index Ceased Declining in April
I
n April, as compared to March, the Panaskerteli Index decreased by 0.27%. This signifies prices remain almost the same on the medications market and no significant changes were recorded in this direction over the past period. Shota Gulbani, President of the Association of Young Financiers and Businessmen (AYFB), overviews the research results. He has been managing the project implementation for six months and monitoring medication prices on monthly basis through the AYFBdeveloped Panaskerteli Index.
- Why have you decided to launch this research project and what makes this project interesting and attractive for the field specialists and interested persons? - Even today about 30% of the world population (1.3-2.1 billion persons) still lack for access to essentially vital medications. For example, in India, about 65% of the population has no regular access to medications. In whole Africa, almost a half part of the population is facing the same problem. Georgia is not an exception either, because the degree of attaibility depends on medication prices. This problem is quite fundamental in our country too. In Most cases, pensioners spend a bulk of their incomes on required medications. The Authorities have launched implementation of universal healthcare program. I believe this is a serious breakthrough in the healthcare sector. However, medications still remain unattainable. Consequently, this field has been problematic because of its social charatcer and I think we have natural interest, even more so the AYFB has huge experience in pharmaceutical market research works. As to the second part of the question about the target audience of our reserch– all companies, state strucutres and ordinary citizens, who have direct or indirect relations to medication prices and are interested in the current situation on the market, namely, how prices change month on month, on not only 200 most required medications, but also in medication groups that include urgent assistance drugs, medications for tourists and babies and many other groups. We are implementing this project jointly with our partner organization Healthcare Platform. Our goal is to monitor as many medications as possible.
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HEALTHCARE
-According to your latest reserch, the Panaskerteli Index remains almost the same. What does this fact suggest and what are your expectations regarding changes in market prices of medications? -The index remains the same almost. The index has declined by only 0.27%. This fact suggests that the market has not recoded any essential changes that would make direct or indirect affect on prices. What factors determine prices, in general? Decisions taken by companies and their strategies for luring away consumers. These efforts are mainly based on making competitive tariffs, government intereference and the national currency exchange rates. Depreciation or appreciation of the national currency results in upturn or downturn in medication tariffs. I think our research has outlined a very interesting tendency. At the beginning of the project, 6 months ago, when a new importer company entered the pharmaceutical market of Georgia, we saw the reaction from the existing pharmaceutical companies. Active campaigns, SMS messages to personal numbers of citizens for offering lower medication prices. This signifies that formation of competitive environment will lower tariffs. Along with these processes, our monthly research works have showed that medication prices were genuinely cheapening and the Panaskerteli Index was declining until the situation was stabilized and the companies endured the entrance of the new competitor. The Georgian pharmaceutical market has recorded many similar facts in the past too. At the same time, we cannot ignore the recent depreciation of GEL that has positively affected reduction in prices. As to expectations, I believe and research works also prove that pharmaceutical companies have enough resources to lower tariffs. We have witnessed similar tendencies in the last month. We hope this tendency will go on.
Driver’s Medicine Kit Price Declines by 2.7%
56% of Georgian Citizens Ready to Co-fund Personal Health Insurance Jointly with Government Transparency International – Georgia has conducted a public survey all over the country on March 16-28, 2016. The survey was carried out by the Caucasus Research Resource Centers (CRRC) and 2032 citizens were questioned all over the country. According to the survey, the ratio of Georgian citizens, who are ready to co-fund personal health insurance services has increased by 10% compared to 2015. Namely, 56% of Georgian citizens are ready to fund their own health insurance services jointly with the government. The corresponding analysis suggests that this category of Georgian citizens accounts for 2.5 million persons. Transparency International – Georgia is sure that the Georgian government should take into account the fact that a major part of our population is ready to share the responsibility for funding their own health insurance services jointly with the Authorities if they are offered acceptable and adapted packages. “We believe this is an important fact that enables the government of Georgia to replace equalization method by differentiating method and identify the expectations of this part of our citizens regarding the desirable health insurance services and direct the freed resources to socially vulnerable citizens and improving the healthcare sector in general. In this situation the Authorities should replace the universal healthcare program by a state insurance program based on co-funding principle for a certain category of beneficiaries. This program should be carried out by insurance companies and all beneficiaries will have the option to choose desirable insurance company. The Ministry of Labor, Health and Social Protection should develop an effective mechanism for preventing evasion from recipes system and ensure timely moving to the digital prescription system and carry out efficient monitoring of the electronic recipes”, Transparency International – Georgia noted.
The Healthcare Platform organization continues publishing the list and prices of recommended and necessary medications of the Panaskerteli Pharmacy. At this stage, the organization has compared the March and April prices for the driver’s medicine kit. The research has showed that in April, as compared to March, the driver’s medicine kit price declined by 2.7%. Namely, in March the price of nitroglycerine decreased by 0.10 GEL. The oxolin ointment price also declined. According to the April report, the list and prices of the driver’s medicine kit medications are as follows: Driver’s Medicine Kit: Antiseptics: Adhesive tape (bacteriocide) – 2.00 GEL Sterilized Bandage (7*14cm) – 1.04 GEL Cotton (sterilized) – 1.00 GEL Brilliant Green – 0.30 GEL Hydrogene Dioxide – 1.25 GEL
Iodine (Betadine) (100g) – 0.52 GEL Turmanidze Ointment- 4.90 GEL Oxolin Ointment – 1.10 GEL Injection Water – 0.80 GEL Gloves (strile) – 0.55 GEL Tourniquet – 14.80 GEL Scissors – 1.50 GEL Anelgesics: Ibuprofen – 2.80 GEL Heart Medications: Corsiz – 1.50 GEL Ammonia Solution – 1.00 GEL Nitroglycerine -0.85 GEL Validol – 0.44 GEL TOTAL: 36 GEL The Healthcare Platform plans to continue publishing reports on medication prices as part of the Pharma Monitor. In the near future, the organization will publish a report on the list and prices of medications for medicine chests of cottages and offices.
61% of Population Want HighIncome Citizens to Pay Higher Insurance Premium On March 16-28 Transparency International – Georgia conducted a survey all over Georgia. The survey process was carried out by the Caucasus Research Resources Center (CRRC) and 2032 citizens were questioned. According to the research, 61% of the population suggest that high-income citizens should pay higher health insurance premium and in this way partly finance health insurance of low-income citizens. It should be noted the ratio of this category of respondents has increased by 5% compared to 2015. 18% of the respondents believe that all citizens should fund their personal health insurance services themselves, despite the volume of incomes. 44% of the respondents want the Authorities to co-fund personal health insurance services partly. The ratio of this category of respondents has increased by 19% year on year. The ratio of respondents, who want the Authorities to fully fund health insurance services, has decreased by 12% year on year. Based on this research, we can conclude that at least 1.4 million citizens of Georgia think that health insurance costs should be equally shared by beneficiaries and the Authorities. 41% of the respondents named facts, when they could not visit a doctor because of high tariffs for consultation. Self-treatment remains one of the major problems. Namely, 25% of the respondents proved they have received antibiotics or antidepressants for the past 12 months without prescription, while 74% have not received at all. These in-
dicators, on the one hand, prove that hundred thousands of citizens resort to self-treatment, while a major part in 25% of citizens manages to buy medications without prescription system. “Transparency International – Georgia is sure that the Georgian government should take into account the fact that a major part of our population is ready to share the responsibility for funding their own health insurance services jointly with the Authorities if they are offered acceptable and adapted packages. “We believe this is an important fact that enables the government of Georgia to replace equalization method by differentiating method and identify the expectations of this part of our citizens regarding the desirable health insurance services and direct the freed resources to socially vulnerable citizens and improving the healthcare sector in general. In this situation the Authorities should replace the universal healthcare program by a state insurance program based on co-funding principle for a certain category of beneficiaries. This program should be carried out by insurance companies and all beneficiaries will have the option to choose desirable insurance company. The Ministry of Labor, Health and Social Protection should develop an effective mechanism for preventing evasion from recipes system and ensure timely moving to the digital prescription system and carry out efficient monitoring of the electronic recipes”, Transparency International – Georgia noted.
12
GEORGIAN RAILWAY
May 30, 2016 #147
Double-deck Railcar Will Serve Passengers from July 2016 New trains for tourists and local passengers will make a trip to the regions of the coast more comfortable that will promote tourism development.
NINO KUPARASHVILI
O
n Wednesday May 25, 2016 Peter Shpuler – the founder and the Executive director of Stadler Bussnang AG, with the General Director of Georgian Railway – Mamuka Bakhtadze, signed the purchase agreement of bringing in doubledecker trains in the country.
For the summer season Georgian Railway LLC is preparing the special surprise gift for its passengers. As it is already known, Stadler KISS double-deck railcar will start servicing residents and guests from July 2016. The double-decked train will appear on July 17, 2016 and after passing Technical Regulations from Tbilisi in the direction of the Black Sea it will run without stopping and stop only at the resort stations of the
coast: Batumi, Kobuleti and Ureki. Stadler Bussnang AG will carry out comfortable transportation over 400 passengers simultaneously. Double-decker train of 102 m length and 5240 m height totally suits to the demands of Georgian Railway. New trains for tourists and local passengers will make a trip to the regions of the coast more comfortable that will promote tourism development. The Transportation of the pas-
sengers by an electric train of the Stadler Kiss model it can be considered as a new stage and a step forward in the sphere of service development of the Georgian Railway. Stadler refers to the train as “KISS”, an acronym for komfortabler innovativer spurtstarker S-BahnZug, meaning “comfortable, innovative, sprint-capable suburban train”. The Kiss is designed to create more space without any compro-
mise in comfort and safety. The vehicle features a low floor entry with sliding steps, which allows disabled people and children to easily get in and out. The vertical clearance inside the rail cabin is two metres. Vacuum toilet systems are installed for the disabled passengers. Moreover, the staff, who will serve the passengers in the mentioned trains, are being trained in different countries.
WORLD NEWS
May 30, 2016 #147
13
Quotes
“ Globalization Yusifzade added that 220 million tons of this volume accounted for Azerbaijan’s profitable oil.
is a form of artificial intelligence
”
Sukhoi will provide CityJet with technical support through a 12-year service agreement.
Erol Ozan
Azerbaijan produces nearly 400 mln tons of oil from ACG block
A
zerbaijan has produced 398 million tons of oil from the Azeri-ChiragGuneshli (ACG) block of oil and gas fields since November 1997, said Khoshbakht Yusifzade, first vice-president of Azerbaijan’s state oil company SOCAR. He made the remarks at a meeting held in the House of Scientists of Azerbaijan’s National Academy of Sciences May 26. Yusifzade added that 220 million tons of this volume accounted for Azerbaijan’s profitable oil. The State Oil Fund of Azer-
baijan (SOFAZ) received $1.493 billion in January-April 2016 as part of the implementation of the ACG project. The contract for developing the ACG field was signed in 1994. The proven oil reserve of the block nears 1 billion tons. The shareholders of the project are: BP (operator in the AzeriChirag-Guneshli) - 35.78 percent, Chevron - 11.27 percent, Inpex - 10.96 percent, AzACG - 11.65 percent, Statoil - 8.56 percent, Exxon - 8 percent, TPAO - 6.75 percent, Itocu - 4.3 percent and ONGC - 2.72 percent.
Turkey’s first electric car finalizes Balkan tour
T
urkey’s first electric car, the Pehlivan Elektrak developed by Trakya University, has returned to the country after a two-week trip around the Balkan Peninsula. The fiber carbon car visited Greece, Bulgaria, Macedonia, Albania, Montenegro and Bosnia and Herzegovina during the 14day tour. The car was first tested by Customs and Trade Minister Bülent Tüfekçi in the northwestern city of Edirne, where Trakya University is based, before it went on its first international tour. As he welcomed the staff Yener Yörük, the rector of the university, said the tour had been initiated by President Recep Tayyip Erdoğan.
Pehlivan Elektrak Consultant Nilhan Taşkın said they were also working on a hybrid car which would use both solar power and electricity. Pehlivan Elektrak, which was named after the Turkish word for traditional wrestlers, had received a “best design” award by the Scientific and Technical Research Council of Turkey (TÜBİTAK). The car was developed by a team of 16 studying at the school’s engineering faculty. The 190-kilogram car can travel at up to 110 kilometers per hour and is energized by lithium batteries. The car can go up to 100 kilometers on a battery charge that costs 0.75 Turkish Liras.
Every third resident of Armenia lives below poverty line
Europe gets its first modern Russian-made airliners
Armenia’s poverty rate shed 2% in 2015, compared with the previous year, to 30%, Artem Asatryan, Armenian labor and social affairs minister, said Thursday presenting his ministry’s 2015 performance report to the National Assembly’s committees. This result was achieved thanks to some social programs aimed at poverty reduction and employment of people that are not competitive at labor market. Asatryan said that the sizes of benefits and pensions for servicemen were increased in 2015, since pensioners are considered the most vulnerable category. The size of the average retirement pension was increased by 15% in 2015 to AMD 41,000, and payments for participants of the Great Patriotic War (the World War II) and the Artsakh War (Karabakh War) were increased by 50%.
Ashgabat Discuss Options of Turkmen Gas Supply via Southern Gas Corridor Two Turkish consortiums won tenders on May 17 to build sections of a 7 billion-Turkish-Lira ($2.35 billion) motorway project that will connect to a new bridge over Istanbul’s Bosphorus Strait. Limak Holding and Cengiz Holding, which both have interests in many fields from energy to construction, together won a tender to build the Asian section of the road project, Transport, Maritime Affairs and Communications Minister Binali Yıldırım said in a televised interview. Kolin Construction and Kalyon Group won a second tender to build the European section of the road, he said. Both sections were tendered under the build-operate-transfer model. All of the companies have recently won many tenders separately or together, including the 22 billion-euro third airport of Istanbul.
U
nited Aircraft Corporation says the first Russian Sukhoi Superjet 100 (SSJ100) plane has been delivered to its inaugural European customer Irish airline CityJet. Under the $1 billion contract, CityJet will lease 15 SSJ100 airplanes with an option for an additional 16 aircraft. The Irish airline will receive three aircraft in 2016, and the rest from 2017 onwards. Sukhoi will provide CityJet with technical support through a 12-year service agreement. “The delivery of our first SSJ100 is an important mile-
stone for CityJet as we begin our fleet renewal program. This is a fantastic aircraft and we look forward to introducing our customers to its high level of comfort and efficiency in the coming years,” said Pat Byrne, Executive Chairman of CityJet. Last year the Dublin-based company chose the SSJ100 to enhance its fleet and network development program. CityJet’s fleet renewal and expansion comes as a result of the company’s strong performance in 2015. CityJet will continue its longstanding wet lease contract with Air France-KLM using the Superjets.
14
PUBLICITY
May 30, 2016 #147
May 30, 2016 #147
Embassy United States of America Embassy 11 Balanchivadze St., Dighomi Dstr., Tbilisi Tel: 27-70-00, 53-23-34 E-mail: tbilisivisa@state.gov; askconsultbilisi@state.gov United Kingdom of Great Britain and Northern Ireland Embassy 51 Krtsanisi Str., Tbilisi, Tel: 227-47-47 E-mail: british.embassy.tbilisi@fco.gov.uk Republic of France Embassy 49, Krtsanisi Str. Tbilisi, Tel: 272 14 90 E-mail: ambafrance@access.sanet.ge Web-site: www.ambafrance-ge.org Federal Republic of Germany Embassy 20 Telavi St. Tbilisi Tel: 44 73 00, Fax: 44 73 64 Italian RepublicEmbassy 3a Chitadze St, Tbilisi, Tel: 299-64-18, 292-14-62, 292-18-54 E-mail: embassy.tbilisi@esteri.it Republic of Estonia Embassy 4 Likhauri St., Tbilisi, Tel: 236-51-40 E-mail: tbilisisaatkond@mfa.ee Republic of Lithuania Embassy 25 Tengiz Abuladze St, Tbilisi Tel: 291-29-33 E-mail: amb.ge@urm.lt Republic of Latvia Embassy 16 Akhmeta Str., Avlabari, 0144 Tbilisi. E-mail: embassy.georgia@mfa.gov.lv Greece Republic Embassy 37. Tabidze St. Tbilisi Tel: 91 49 70, 91 49 71, 91 49 72 Czech RepublicEmbassy 37 Chavchavadze St. Tbilisi ;Tel: 291-67-40/41/42 E-mail: czechembassy@gol.ge Web-sait: www.mzv.cz Japan Embassy 7 Krtsanisi St. Tbilisi Tel: +995 32 2 75 21 11, Fax: +995 32 2 75 21 20 Kingdom of Sweden Embassy 15 Kipshidze St. Tbilisi Tel: +995 32 2 55 03 20 , Fax: +995 32 2 22 48 90 Kingdom of the Netherlands Embassy 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: zhangling@access.sanet.ge Republic of Bulgaria Embassy 15 Gorgasali Exit, 0105 Tbilisi, Georgia Tel: +995 32 291 01 94; +995 32 291 01 95 Fax: +99 532 291 02 70 Republic of Hungary Embassy 83 Lvovi Street, Tbilisi Tel: 39 90 08; E-mail: hunembtbs@gmail.com State of Israel Embassy 61 Agmashenebeli Ave. Tbilisi Tel: 95 17 09, 94 27 05 Embassy of Swiss Confederation’s Russian Federation Interests Section Embassy 51 Chavchavadze Av., Tbilisi Tel: 291-26-45, 291-24-06, 225-28-03 E-mail: RussianEmbassy@Caucasus.net Ukraine Embassy 75, Oniashvili St., Tbilisi Tel: 231-11-61, 231-12-02, 231-14-54 E-mail: ukraina_pu@wanex.net; emb_ge@mfa.gov.ua Consular Agency: 71, Melikishvili St., Batumi Tel: (8-88-222) 3-16-00/ 3-14-78 Republic of Turkey Embassy 35 Chavchavadze Ave., Tbilisi Tel: 225-20-72/73/74/76 embassy.tbilisi@mfa.gov.tr Consulate General in Batumi 9 Ninoshvili Street, Batumi Tel: 422 25 58 00 consulate.batumi@mfa.gov.tr Republic of Azerbaijan Embassy Kipshidze II-bl . N1., Tbilisi Tel: 225-26-39, 225-35-26/27/28 E-mail: tbilisi@mission.mfa.gov.az Address: Dumbadze str. 14, Batumi Tel: 222-7-67-00; Fax: 222-7-34-43 Republic of Armenia Embassy 4 Tetelashvili St. Tbilisi Tel: 95-94-43, 95-17-23, 95-44-08 E-mail: armemb@caucasus.net Web: www.armenianembassy.ge 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
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TBILISI GUIDE 7 Kushitashvili St., Tbilisi Tel: 38-53-10; 25-00-98/97 E-mail: ambasada@caucasus.net Republic of Poland Embassy 19 Brothers Zubalashvili St., Tbilisi Tel: 292-03-98 Email:tbilisi.amb.sekretariat@msz.gov.pl Web-site: www.tbilisi.polemb.net Republic of Iraq Embassy Kobuleti str. 16, Tbilisi Tel: 291 35 96; 229 07 93 E-mail: iraqiageoemb@yahoo.com Federative Republic of Brazil Embassy Chanturia street 6/2, Tbilisi Tel.: +995-32-293-2419 Fax.: +995-32-293-2416 Islamic Republic of Iran Embassy 80, I.Chavchavadze St. Tbilisi, Tel: 291-36-56, 291-36-58, 291-36-59, 291-36-60; Fax: 291-36-28 E-mail: iranemb@geo.net.ge United Nations Office Address: 9 Eristavi St. Tbilisi Tel: 225-11-26/28, 225-11-29/31 Fax: 225-02-71/72 E-mail: registry.geo@undp.org Web-site: www.undp.org International Monetary Fund Office Address : 4 Freedom Sq., GMT Plaza, Tbilisi Tel: 292-04-32/33/34 E-mail: kdanelia@imf.org Web-site: www.imf.ge Asian Development Bank Georgian Resident Mission Address: 1, G. Tabidze Street
Freedom Square 0114 Tbilisi, Georgia Tel: +995 32 225 06 19 E-mail: adbgrm@adb.org; Web-site: www.adb.org World Bank Office Address : 5a Chavchavadze Av., lane-I, Tbilisi, Georgia ; Tel: 291-30-96, 291-26-89/59 Web-site: www.worldbank.org.ge Regional Office of European Bank for Reconstruction and Development Address: 6 Marjanishvili St. Tbilisi Tel: 244 74 00, 292 05 13, 292 05 14 Web-site: www.ebrd.com Representation of the Council of Europe in Georgia Address : 26 Br. Kakabadze, Tbilisi Tel: 995 32 291 38 70/71/72/73 Fax: 995 32 291 38 74 Web-site: www.coe.ge Embassy of the Slovak Republic Address: Chancery: 85 Irakli Abashidze St. Tbilisi, 0162 Georgia Consular Office: 38 Nino Chkheidze St. Tbilisi, 0102 Georgia Phone: 2 222 4437, 2 296 1913 e-mail: emb.tbilisi@mzv.sk
Hotels in Georgia TBILISI MARRIOTT Tbilisi , 13 Rustaveli Ave. Tel: 77 92 00, www.marriott.com COURTYARD MARRIOTT Tbilisi , 4 Freedom Sq. Tel: 77 91 00 www.marriott.com RADISSON BLU HOTEL, TBILISI Rose Revolution Square 1 0108, Tbilisi Tel: +995 32 402200 radissonblu.com/hotel-tbilisi RADISSON BLU HOTEL, BATUMI Ninoshvili Str. 1, 6000 Bat’umi, Georgia Tel: 8 422255555 http://radissonblu.com/hotel-batumi SHERATON METECHI PALACE Tbilisi , 20 Telavi St. Tel: 77 20 20, www.starwoodhotels.com SHERATON BATUMI 28 Rustaveli Street • Batumi Tel: (995)(422) 229000 www.sheratonbatumi.com HOLIDAY INN TBILISI Business hotel Addr: 1, 26 May Square Tel: +995 32 230 00 99 E-mail: info@hi-tbilisi.com Website: http://www.hi-tbilisi.com 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: info@betsyshotel.com Website: http://www.betsyshotel.com
Restaurants CORNER HOUSE Tbilisi, I. Chavchavadze ave. 10, Tel: 0322 47 00 49; Email: contact@cornerhouse.ge RESTAURANT BARAKONI Restaurant with healthy food. Georgian-European Cuisine Agmashenebeli Alley 13th Phone: 555 77 33 77 www.barakoni.com CHARDIN 12 Tbilisi , 12 Chardin St. , Tel: 92 32 38 CAFE 78 Best of the East and the West Lado Asatiani 33, SOLOLAKI 032 2305785; 574736290 BREAD HOUSE Tbilisi , 7 Gorgasali St. , Tel: 30 30 30 BUFETTI - ITALIAN RESTAURANT Tbilisi , 31 I. Abashidze St. , Tel: 22 49 61 DZVELI SAKHLI Tbilisi , 3 Right embankment , Tel: 92 34 97, 36 53 65, Fax: 98 27 81 IN THE SHADOW OF METEKHI Tbilisi , 29a Tsamebuli Ave. , Tel: 77 93 83, Fax: 77 93 83 SAKURA - JAPANESE RESTAURANT Tbilisi , 29 I. Abashidze St. , Tel: 29 31 08, Fax: 29 31 08 SIANGAN - CHINESE RESTAURANT Tbilisi , 41 Peking St , Tel: 37 96 88 VERA STEAK HOUSE Tbilisi , 37a Kostava St , Tel: 98 37 67 BELLE DE JOUR 29 I. Abashidze str, Tbilisi; Tel: (+995 32) 230 30 30 VONG 31 I. Abashidze str, Tbilisi Tel: (+995 32) 230 30 30 BRASSERIE L’EXPRESS 14 Chardin str, Tbilisi Tel: (+995 32) 230 30 30 TWO SIDE PARTY CLUB 7 Bambis Rigi, Tbilisi Tel: (+995 32) 230 30 30
Cinemas AKHMETELI Tbilisi. “Akhmeteli” Subway Station Tel: 58 66 69 AMIRANI Tbilisi. 36 Kostava St. Tel: 99 99 55, RUSTAVELI Tbilisi. 5 Rustaveli Ave. Tel: 92 03 57, 92 02 85, SAKARTVELO Tbilisi. 2/9 Guramishvili Ave. Tel: 8 322308080,
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: Info@irec.ge www.irec.ge
GSS Car rental offers a convenient service for those who are interested in renting car in Georgia. Rental fleet mainly consist of Japanese made SUV’s, the company has various models of cars including sedans and minivans which are in good technical condition. Contact information: Email: info@gsservices.ge. Address: Shalva Dadiani 10
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
THE BEST GEORGIAN HONEY OF CHESTNUTS,ACACIA AND LIME FLOWERS FROM THE VERY HART OF ADJARA MATCHAKHELA GORGE IN THE NETWORK OF GOODWILL, NIKORA AND SMART
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May 30, 2016 #147