Caucasus Business Week #219

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December 11, 2017 #219

December 11, 2017, Issue 219 - www.cbw.ge

Company King David launched New Year’s special offer “Unordinary 2018” Pg. 12

Awards The Third Official Ceremony of the Welcome to Georgia! - National Tourism Awards Pg. 7

PR Person Tinatin Lomtatidze: Self-development is the main passion of developing brand’’

What’s Wrong with Georgia’s Transport Policy

Pg. 8

Energy (D)Effective Policy Growing demand for power supply and seeking new sources to satisfy this demand remains one of the key challenges worldwide. Rising number of population, economic advancement and other factors create preconditions for a continuous growth in demand for electricity and, energy, in general. Everybody agrees that the mentioned process is of irreversible character and the contemporary world takes various efforts in this direction. Growing demand for power comprises two characteristic signs – employment of corresponding sources to satisfy the growing demand and negative environment impact. As known, the ratio of renewable energy in the world electricity generation remains at low level. Consequently, to balance such processes, various eneregy efficient projects should be implemented. Naturally, along with the global tendencies, Georgia is working on implementing energy efficient projects. It should be noted that Ministry of Energy has been long working on developing long-term energy efficiency strategy. Pg. 4

Natakhtari Fund to Assist Local Selfgovernments in Supporting Young People without Care

Pg.6

Meeting-discussions as part of Advocacy Campaign Ends in Regions. Presentations and discussions as part of the program for support of young people without care started on November 9 in 8 major regions of Georgia and ended on November 18. At the democratic involvement centers in Gori, Akhaltsikhe, Telavi, Rustavi, Kutaisi, Ozurgeti, Batumi and Zugdidi, as part of the Advocacy campaign, Coalition for Children and Young People and Natakhtari Fund introduced a jointly developed program to interested parties, including, to local self-governments, nongovernmental organizations, media and business sectors. It is important that in the program development process state offices, including, Ministry of Labor and Social Protection, Infrastructure and Regional Development and the Government Office were actively involved. Pg. 4


Newsroom

2 Government

1.3 BLN to be Spent on Road Construction in 2018

The government plans to increase spending on infrastructural projects. As a result, budget of the curator ministry increases by 557 million in the next year.

Georgia’s 2018 Budget Appropriately Targets Further Fiscal Consolidation

The 2018 budget appropriately targets further fiscal consolidation, IMF reports. The 2018 budget envisages a further decline in the deficit while allowing for an increase in capital spending.

economy

Georgia Receives $42,4 Million From IMF

The completion of the review enables the release of SDR 30 million, bringing total disbursements under the arrangement to SDR 60 million. The extended arrangement for SDR 210.4 million was approved by the Executive Board on April 12, 2017.

7 Million International Travelers in Georgia

According to the Ministry of Internal Affairs, the number of visitors, who stayed 24 hours and more in Georgia, amounted to 3,243,963. The figure is 701,371 more comparing to January-November of 2016 (growth + 27.6%).

banking

TBC Bank Named as the Best Bank of 2017

The Banker, the world’s influential financial edition, has named TBC Bank as Georgia’s best commercial bank in 2017.TBC Bank has obtained this status thanks to strong financial indicators, high-standard consumer services and the best digital services.

Price of BOG Shares Reduced on the London Stock Exchange

Price of Bank of Georgia shares (BGEO LN) reduced on the London Stock Exchange by 7.66%. Last week 32.28 – 33.53 pounds sterling (GBP) was the price. Weekly (w.w) decreases to 2%. The monthly trend is down.

business

Business Sector Creates 12 600 New Job Places in 3Q17

In the reporting period, the business sector had employed 643 900 citizens, according to Geostat, national statistics service of Georgia. Total expenditures on the staff amounted to 2.108bln GEL, up 21.3% year on year.

Georgian Olives are Preparing for Export

According to the owner of the company Giorgi Svanidze, Georgian olive products are popular on the local market. In the nearest future the company plans to export products in America, Europe, Trans Caucasia and the CIS countries.

company

Badagoni Opens Georgian Cultural Center in China

The Georgian cultural center in the city of Taixing (Jiangsu province) is situated in an attractive building of original design, with a considerable adjacent territory.

December 11, 2017 #219

IMF Executive Board Completes the First Review of the Extended Arrangement under the Extended Fund Facility for Georgia • The economic recovery is gaining momentum, inflation is projected to decline starting in early 2018, and the external position has strengthened. • The 2018 budget appropriately targets further fiscal consolidation. • Continued efforts to advance structural reforms are key to achieving higher and more inclusive growth. On December 6, the Executive Board of the International Monetary Fund (IMF) completed the First Review of Georgia’s performance under the three-year extended arrangement under the Extended Fund Facility (EFF) on a lapse of time basis. [1] The completion of the review enables the release of SDR 30 million (about $42.4 million), bringing total disbursements under the arrangement to SDR 60 million (about $84.8 million). The extended arrangement for SDR 210.4 million (about $297.5 million or 100 percent of quota) was approved by the Executive Board on April 12, 2017 (see Press Release No. 17/130). The program is on track with all end-June 2017 performance criteria and structural benchmarks met. Economic activity has strengthened on the back of stronger growth in main trading partners. Fiscal overperformance and efforts to address structural weaknesses have helped boost confidence. Georgia’s economic performance has improved, but risks to the outlook remain. The economic recovery is gaining momentum, inflation is projected to decline starting in early 2018, and the external position has strengthened. Revenue overperformance provides room for additional capital spending and VAT repayments in 2017. The banking sector remains liquid, profitable, and well capitalized. Despite the positive

outcomes, the authorities need to remain vigilant and sustain reform efforts to address structural obstacles to growth. The 2018 budget appropriately targets further fiscal consolidation. The 2018 budget envisages a further decline in the deficit while allowing for an increase in capital spending. To achieve this, efforts to strengthen revenue administration should continue, especially to prevent the buildup of VAT claims. The authorities should also bolster efforts to further contain current spending, for instance, by containing the wage bill, improving the targeting of social programs, and reducing subsidies and equity injections to state-owned enterprises (SOEs). Medium-term fiscal commitments should be completed as currently envisaged and require progressing with institutional fiscal reforms. Staff welcomes the authorities’ commitment to fiscal consolidation while accelerating high-priority infrastructure investment. A stronger framework for managing public investment will help improve efficiency on the use of public resources. The authorities’ commitment to comprehensively assess and monitor fiscal risks should be clearly reflected in the 2018 Fiscal Risk Statement. Efforts to improve the budgetary processes and fiscal reporting—for instance, by improving the coverage and measurement of fiscal aggregates to reflect activities of legal entities of public law (LEPLs) and SOEs, elaborating on compliance with fiscal rules, and strengthening macroeconomic and fiscal forecasting—will help improve fiscal transparency and accountability. Monetary policy remains rightly focused on price stability, supported by the flexible exchange rate and efforts to strengthen the transmission mechanism. The NBG’s mon-

etary policy stance is appropriate, but the authorities need to remain vigilant on monetary and financial developments, including related to credit growth. The inflation targeting framework, combined with the floating exchange rate regime, has served Georgia well. Foreign exchange intervention should remain limited to smoothing excessive exchange rate volatility and building reserves. The NBG’s steps to strengthen liquidity management, de-dollarize the economy, and improve communication will help strengthen the monetary framework. The authorities’ steps to increase the resilience of the financial sector are welcome. Proposed legal amendments would appropriately expand the role of the central bank in regulating and supervising nonbanks and credit bureaus, enhance the bank resolution framework, and supervise banks on a consolidated basis. The authorities’ efforts to identify legal amendments to adopt an effective emergency liquidity assistance (ELA) framework are also commendable. Continued efforts to advance structural reforms are key to achieving higher and more inclusive growth. Upgrading infrastructure and strengthening trade integration will boost growth prospects. The new insolvency law for non-financial corporations and the Business House will help improve the business environment. The pension reform will increase the availability of domestic savings to support investment, as long as contributions are enforced. Improved capital market infrastructure, by facilitating mobilization of funds, will support capital accumulation. To further support growth, Georgia also critically needs to advance on education reform.

ICC Names 13 Reasons not to Adopt Pension System Reformation Bill

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nternational Chamber of Commerce (ICC) asserts that the pension system reformation project introduced by the Government does not fit for implementation because of 13 reasons: 1. The current project cannot ensure the so-called respectful pension for 70% of employees despite making deposits for 30 years; 2. The current project cannot create an alternative to the existing social pension system. 3. The pension reform cannot reach self-employed and unemployed citizens and this will become a serious ground for discontents.

BUSINESS WEEK caucasus

The Editorial Board Follows Press Freedom Principles Publisher: LLC Caucasian Business Week - CBW Address: Aleksidze Street 1 Director: Levan Beglarishvili Sales: Mob: +995 558 36 61 07 WWW.CBW.GE Email: caucasianbusiness@gmail.com

4. Only 10% of economically active citizens will see hypothetical benefits from the introduced scheme. 5. The reform will enhance inequality in Georgia. 6. Instead of cutting state budget transfers under the pension reform, on the contrary, these expenditures may increase after the reform implementation. 7. The introduced project will provoke unofficial labor contracts and boost shadow economy. As a result, the state budget may lose serious revenues. 8. Business doing process will be complicated.

9. Government will try to employ the pensions fund resources to compensate the increased expenditures. 10. Taking into account high risky environment for investments in Georgia, the it is not expedient to invest pension fund finances in Georgia. 11. Political risks. 12. Unrealistic expectations may fail the reform and the public trust to the Authorities may plunge. 13. If the current project is adopted, its abolition or revision will be impossible, in practice. It does not leave space for flexibility and is of irreversible character.

Editor: Nutsa Galumashvili. Mobile phone: 595 380382 Reporters: Nina Gomarteli; Mariam Kopaliani; Merab Janiashvili Technical Assistant: Giorgi Kheladze;

Source: www.commersant.ge, www.bpi.ge, www.gbc.ge, www.agenda.ge, www.civil.ge


December 11, 2017 #219

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econo-mix

December 11, 2017 #219

Energy (D)Effective Policy

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Natakhtari Fund to Assist Local Self-governments in Supporting Young People without Care

‘‘

Andria Gvidiani Economic Analyst

When talking about power management, it mainly implies a proper tariff policy that determines the behavior of the consumer. Namely, when electricity tariffs differ in the daytime and at night, some activities may be carried out at night to cut expenditures, as electricity tariff is comparatively lower at night.

rowing demand for power supply and seeking new sources to satisfy this demand remains one of the key challenges worldwide. Rising number of population, economic advancement and other factors create preconditions for a continuous growth in demand for electricity and, energy, in general. Everybody agrees that the mentioned process is of irreversible character and the contemporary world takes various efforts in this direction. Growing demand for power comprises two characteristic signs – employment of corresponding sources to satisfy the growing demand and negative environment impact. As known, the ratio of renewable energy in the world electricity generation remains at low level. Consequently, to balance such processes, various eneregy efficient projects should be implemented. Naturally, along with the global tendencies, Georgia is working on implementing energy efficient projects. It should be noted that Ministry of Energy has been long working on developing longterm energy efficiency strategy. To stay unbiased, we should note that the process of developing this strategy has been protracted without substantiation and this signifies that state institutions do not pay due attention to this direction. Moreover, as part of Georgia-EU association agreement, Georgia is obliged to carry out adequate measures in terms of energy efficiency. Namely, one of the EU instructions calls for constructing energy efficient buildings. This instruction fosters an improvement of energy efficiency at buildings in terms of climate and local milieu, internal climate requirements at buildings and cost efficiency. However, it is worth noting that despite these obligations, the Authorities have not embodied due amendments to the Construction Code that would ensure corresponding standards in the construction process. On the other hand, as part of the association agreement, Georgia has received instructions for energy efficiency that shapes a joint framework of measures for improving energy efficiency to attain at least 20% energy efficiency target level by 2020 in total consumption of energy resources of the signatory parties. Like the mentioned instruction, Georgia has also joined Agreement of Mayors that calls for cutting emission of hazardous substances to 20% by 2020. Besides ecological problems, reduction in consumption of domestic energy resources is important in terms of economic and strategic aspects and this will foster a resolution of the current energy and economic problems and boost competitive capacity of the domestic products through reduction of their energy absorption capacity. Reduction in energy resources will also make considerable contribution to energy security of the country and ensure quick economic development. Today the ratio of imports in Georgia’s electricity consumption is about 20%. The country mainly imports electricity from Russia and this factor comprises considerable risks in terms of

‘‘

Meeting-discussions as part of Advocacy Campaign Ends in Regions. Presentations and discussions as part of the program for support of young people without care started on November 9 in 8 major regions of Georgia and ended on November 18. At the democratic involvement centers in Gori, Akhaltsikhe, Telavi, Rustavi, Kutaisi, Ozurgeti, Batumi and Zugdidi, as part of the Advocacy campaign, Coalition for Children and Young People and Natakhtari Fund introduced a jointly developed program to interested parties, including, to local self-governments, nongovernmental organizations, media and business sectors. It is important that in the program development process state offices, including, Ministry of Labor and Social Protection, Infrastructure and Regional Development and the Government Office were actively involved. The program consists of several important parts, which represent a certain guideline for municipalities in relation to beneficiaries. The meeting participants discussed issues for support of young people without care. Namely, along with the presentation, they discussed new programs and the current situation in regions with unsupervised adolescents and young people. “It is possible to unite the state and the Fund’s resources and achieve much better results. Local selfgovernments are able to allocate resources to support the beneficiaries. The issue is of problems arisen before beneficiaries over 18 years old, when, having left small family-style houses, young people cannot rent apartments, go to university and so on”, Nino Surmava, PR manager for Natakhtari company, said. “1, 5 and 3 Tetri from sold bottles of Natakhtari is transferred to the Fund (small, big and medium bottles). These funds are managed by Our House Georgia association to assist beneficiaries over 15 years old. At the first stage, psychologists work with beneficiaries and they determine abilities, needs of the adolescents and develop individual assistance plans for young people. The next phase includes an educational component. Some children may be doing badly at secondary schools and we assist them in overcoming difficulties. Those wishing to receive higher education, we hire tutors for them. If they give preference to vocational education, we enable them to continue studying or invite artisans, who know this or that specific trade. The scholarship includes the sum transferred for beneficiaries, who have left small family-type houses and have not found a job place and shelter. The scholarship covers accommodation fees, public utility payments and fares. Naturally, psychologists are involved actively in this process so as beneficiaries find a job place, develop their skills and not to wait for scholarships in continuous regime. The program for assistance-activation of beneficiaries guarantees that money spent by Government on these children up to 18 years old will not be lost in vain. They will grow as active and useful citizens of our society and they will not have to wait for scholarships in continuous regime”, Manana Omarashvili, head of the psychological service of Our House Georgia association noted. The business company has been developing relations between the Authorities and nongovernmental sector. Today they share experience to local selfgovernments and nongovernmental organizations. In some municipalities they had to just explain that this program existed, while in other regions a wide range of the existing programs enables to determine a young person without care, as a target group, in any existing program, Nino Surmava noted. “Cooperation between business, government and nongovernmental sectors enables to resolve any difficult problems, because the Government has leverages, nongovernmental sector has experience and business sector holds resources. In this case we can achieve bigger results through less resources”, Manana Omarashvili noted and added that it is of crucial importance to increase the role of local self-governments in implementing the advocacy projects. We remind you that Natakhtari Fund has been working with beneficiaries of small family-style houses since 2011. Consequently, the Fund offers cooperation to local self-governments in this direction. As part of the mentioned cooperation, the Fund will be able to determine the needs of young people without care, plan interviews and carry out monitoring. Involvement of local self-governments may be expressed in renting residential space for them, paying for public utilities and/or granting transportation preferences.

«Stone Age Ended because of more Efficient Alternatives, not because of Stones Ran out» Herman Gref political and energy security issues. According to the base scenario for electricity consumption growth in Georgia, annual growth is supposed to be 5%, which will constitute 18.75 billion kilowatt/hour consumption in 10 years ( 2027). According to positive scenario, amid 7% annual growth, electricity consumption will hit 23.52 billion kilowatt/hours. Consequently, besides construction of new generation facilities, the issue of accelerating energy efficient projects and carrying out reasonable policy in this direction has sharpened. According to the World Energy Council, energy efficiency implies a consumption of less energy for reception of the same quality and volume of services. In most cases, energy efficiency is associated with technological advancement (for example, modern household appliances use less energy), however, energy efficiency may be also achieved thanks to better energy management. Proper energy management comprises the mentioned means to a certain degree and we should additionally determine when to apply specific electric devices. When talking about power management, it mainly implies a proper tariff policy that determines the behavior of the consumer. Namely, when electricity tariffs differ in the daytime and at night, some activities may be carried out at night to cut expenditures, as electricity tariff is comparatively lower at night. It should be noted that electricity consumption tariff is based on graded principle and this is a certain stimulating mechanism for its less consumption and energy efficiency. Despite this, tariffs are not changed due to seasons, when real value of supplied electricity differs in the daytime and at night and due to seasons. It is known that at peak hours and in autumn-winter period the electricity supply is very expensive, because it is generated from water storage basis. In the mentioned period the country also imports electricity. At the same time, imports becomes necessary mainly in autumn-winter period, because in any part of the day the price of consumed electricity is the same and the consumer has no stimulus to redistribute the consumption in time. The different tariffs at night and in the daytime makes the consumer implement energy-efficient activities in offpick period, when electricity is comparatively cheaper. Amid the differentiated tariff (seasonal, daynight), the consumer pays real costs for supplied electricity and this is a genuinely just mechanism. At the same time, electricity deficit and electricity systems receive preferences. Similar tariff policy and reduction in electricity consumption in peak periods makes direct proportional influence on energy efficiency development in electricity high-voltage transmission networks that may be achieved through reduction of thermal wastes. Based on the mentioned factors, it is important to accelerate and pay due attention to implementation of reasonable energy efficiency policy. Moreover, state structures should introduce complex visions for energy efficiency development within reasonable terms.

“BP company has finished South Gas Corridor project construction works on the territory of Georgia. Projects as part of South Gas Corridor are being implemented in line with agreed budget and schedule and the pipeline is ready. I believe ShahDeniz natural gas will be supplied to Europe via Georgia starting the second half of 2018”.

Gary Jones

BP regional president


December 11, 2017 #219

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logistics

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December 11, 2017 #219

What’s Wrong with Georgia’s Transport Policy The role of logistics is of crucial importance for Georgian economy development. Consequently, development of efficient transport and logistics system is one of the key and necessary factors for enhancing competitive capacity of Georgia. Thanks to geopolitical location, Georgia has real chances to transit and handle additional volumes of cargo and increase revenues and improve conditions for development of entrepreneurship and commerce. Development of logistic infrastructure is of crucial importance for revival of Georgia’s most perspective fields such as agriculture, production, trade and tourism. Specialists say that today the domestic market lacks for qualified logistics operators that would provide complex logistics services.

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s a result, according to the logistics performance index (LPI), which is published by World Bank every second year, Georgia ranks 130th among 160 countries. According to experts, the is the result of appraisals by international, national and regional operators, transport-expeditionary companies and logistics operators. This rating signifies the confidence in Georgian routes is very low. Regretfully, this appraisal signifies that the country cannot satisfy international standards and occupies unfavorable positions in Big Silk Road Corridor. Experts suppose that Georgia’s 130th position in the LPI signifies that over the past period turnover volume declined because of domestic reasons as a result of transport policy failure. What specific reasons precondition the current situation, will the current situation change after Anaklia deepwater seaport construction and what are Georgia’s chances to advance positions in LPI rating and grow into a regional logistics hub? Giorgi Doborjginidze, head of Georgian Logistics Association, says that motorroad development level is satisfactory in Georgia, the EastWest highway is being developed, but we cannot say the same about seaports. “In 2016 Poti Seaport was closed for 120 days and this fact signifies the seaport is not reliable. This factor makes Georgia an unreliable corridor. Shipping companies do not care about reasons of closing the seaport. The fact is that problems with infrastructure or weather conditions hinder reception of ships and carrying out operations. At the same time, despite container terminals have been arranged in Poti, the seaport does not have enough space to efficiently unload ships and supply containers to consumers at efficient value. Therefore, the railway also faces problems and containers are mainly transported by automobiles to Tbilisi or transit directions. Consequently, this traffic makes pressure on motor roads and creates problems at the Narrow Throats, Passes. Expensive tariffs represent another problem at seaports. Poti Seaport is one of the most expensive seaports in the Black Sea region and, in terms of tariffs, it is uncompetitive compared to Turkish seaports, Novorosiisk and other competitor seaports, including Bander-Abass seaport in Iran, which is a direct competitor to Poti Seaport in terms of transportation of Asian consignments. There are certain problems in the direction of Azerbaijan and Central Asia and this factor is reflected in LPI indicator too – We have lost a considerable part of transit cargo from Asia to Azerbaijan”, Doborjginidze said. In the period of inauguration of the first phase of Anaklia seaport, that is 3-4 years, the mentioned problems cannot be resolved, however, Anaklia seaport will bring positive effects anyway, he added. APM TERMINALS POTI (operator of Poti Seaport) Managing Director Klaus Holm Laursen told to the Analytics that currently the container market volume in Georgia constitutes to 400 000 containers, while the Anaklia Deep Seaport will be able to handle 2 mln containers. The Caucasus Business Week (CBW) has investigated enquiring logistics expert on ways of how the Georgian container market could be enlarged by 5 times. Jaba Tarimanashvili - Business Analyst and Director of Maritime services and Transportation company „Trans Logistic“, advised that the Georgian market has no response nowadays to the demad to handle 2 mln. containers. In a long-term run, a major part of commodities may be containerized and container transportation volumes will increase as compared to shipments of general or bulk cargoes. In response to the question why Georgia’s container market is bound to only 400 000 containers instead of 2 mln. containers, Tarimanashvili said that today the market does not meet these demands. “Georgia’s container market is circumscribed by 2 small countries: Azerbaijan and Armenia. Therefore, we have limited volumes. We are able to penetrate to huge markets, Central Asian countries, however, nobody emphasize on that. Government, together with professionals, transporters, container lines, forwarders, port operators should gather and examine existing problems, why we cannot enter the mentioned markets and who limits us with two countries, why we are not admitted to the 2 mln. market. Finding solutions to those barriers could let us be successful”, Tarimanashvili said. The free time versus transit time is one of the key reasons why Georgia cannot enter Central Asia markets, he said. “When containerized cargoes are transported, the container line provides certain free days, when the forwarding company should deliver full container to the destination place, unload the cargo and return empty container back to container yard of relevant loading port in Georgia. When the cargo is transported to the direction of Central Asia, we deliver the container to Azerbaijan, then we have to pass the Caspian sea ferry boats, which have various restrictions”, Tarimanashvili said. Restriction of loading ships timely due to weather conditions or throughput capacity is one of the limitations, he said.

Container services and marketing mechanisms should be created, which would enable the transportation companies to return full containers instead of an empty containers and create additional value for container line operators, Tarimanashvili said. Department of Transport and Logistics at Ministry of Economy is not active. As a result, Georgia does not have a responsible person, who would protect interests and look after Georgian transport industry development, Tarimanashvili noted. Container transportation coverage zone must be enlarged and this factor would foster development of Anaklia, Batumi and Poti seaports in Georgia, he said. Tarimanashvili also talks about cargo handling tariffs in Poti Seaport and notes that there are one of the highest, and considering opening of BTK (Baku-Tbilisi-Kars) rail line, it is important that present Georgian container terminal operators consider THC of neighboring Turkish ports, which already dispatched several batch of rail platforms to Azerbaijan, and North-South Transport Corridor, which pass from India through Iran and Azerbaijan to Caspian sea countries, or Russia and Europe. Cargoes are actively containerized worldwide. In terms of logistics it is easier to distribute containers to final consumers. Consequently, seaports try to reduce THC (terminal handling charges) which in general equal or offer lower rates than expenditures for handling bulk cargoes, he noted. The current terminals in Georgia cannot receive big ships because of insufficient depth and length of berths and consequently logistics chain is complicated and more expensive with feeder services. Because of location of present seaports in city centers and restrictions for further warehousing and storage development, operators are scanty to offer traders optimal and innovating solutions by taking advantage of Georgia’s free trade agreements with Europe (DCFTA), China, CIS countries and USA (GSP). Finally, with no added value, expensive logistics costs are distributed to final consumers. As major part of goods are transported by ships. If we consider this factors in the light of Georgia’s import-dependence, efficient logistics is vitally important for Georgian society and industrial development, Tarimanashvili said. As to Anaklia Deep Seaport, it will be able to receive only a part of big ships, he said. Turkish straits have certain restrictions for enabling ships entering the Black Sea. Big ships may enter the Black Sea, but in this case restrictions apply for LOA (length) and air draft (height from the water surface up to the bridge), he said. Ships have to pass Dardanelles and Bosporus straits to enter the Black Sea from Mediterranean Sea. As a result, maximal dimensions of ships are defined, Tarimanashvili noted. Ships of about 300 meters in length are let to pass straits without special permissions, while sporadically ships up to 336 meters length have passed after obtaining special permission from Turkish authorities, but

the air draft is limited to 57 meters because of bridges from the water surface, and the draft (depth) is restricted to 20 meters, he said. “I remember end of 2007 a huge amount of containers were stuck in Istanbul transshipment terminal. Owners were trying to lift containers through various modes of transport. Simultaneously Georgia was receiving cargoes by small ships and it was taking much time to lift backlog. There were many ships waiting their turn at Poti anchorage that time, and operators were paying high demurrages. As a solution to the bottleneck, in March 2008, we unloaded first container ship MSC Granada at Batumi container terminal. In that period BICT (Batumi International Container Terminal – ICTSI group company) did not even have shore cranes. Therefore, we unloaded containers by using ship cranes.”, Tarimanashvili noted. Poti Seaport is able to receive container ships of about 185 meters in length (with safe draft – 8.4 meters), Batumi container berth receives ships of about 175 meters in length (safe draft – 9.8 meters), however we had in practice with special permission discharging vessel with about 205 meter length in Batumi. As to Anaklia Deep Seaport, it will be able to receive only a part of big ships available on global container market today. “Anaklia seaport management announced that the seaport will receive almost twice bigger vessels, that may arrive to Georgia these days. The seaport representatives frequently mention possibility to accept Panamax (ships of maximal size crossing Panama canal) and post-Panamax container ships. Maximum length of Panamax ships were about 294 meters in the past, however, today capacity of passage and consequently ships dimensions have been enlarged. But basis general restrictions, ships of about 300 meters in length cross Turkish straits without obtaining special permissions. Therefore, It is questionable whether postPanamax or New Panamax ships can enter the Black Sea, because their length may vary between 366 to 400 meters. Through which route can these vessels enter the Black sea and Georgian territorial waters?”, Tarimanashvili said. East Gate Group director David Davitidze explains that today cargo transportation is carried out at full capacity, but bypassing our corridor. This is a key reason. The country has to provide huge job to redirect these cargoes to our corridor, starting from tariffs ending with service quality, transportation terms and so on, he said. “Many components of the infrastructure do not operate in synchrony. Meteo Center, all commercial facilities try to make benefits during transactions, when the seaport is closed and meanwhile, railway wagons are delayed. What have the customers to do? They cannot make influence on weather. They have ordered wagons and cargo cannot be loaded because of storm. Poti Seaports remains closed during 1/3 period of the year because of bad weather and nobody wants similar seaport”, Davitidze said. Poti Seaport management asserts that the seaport has a good operator, while the seaport infrastructure is not improved, he said.


December 11, 2017 #219

National Tourism Awards

The Third Official Ceremony of the Welcome to Georgia! On December 6th, 2017 the Third Official Ceremony of the Welcome to Georgia! National Tourism Awards was held at the Rustaveli Theatre, where traditionally 21 BEST companies among the different nominations were named. 1. The Best Boutique Accommodation Award – Boutique Hotel Kabadoni 2. The Best Standard Accommodation Award – Iveria Inn 3. The Best Deluxe Accommodation Award – Radisson Blu Iveria Tbilisi 4. The Best Wellness & Spa Resort Award – Rixos Borjomi 5. The Best Mountain Accommodation Award – Quadrumi 6. The Best Sea Accommodation Award – Sheraton Batumi 7. The Best Low Budget Accommodation Award – Pushkini 10 8. The Best Mice Tourism Award – Georgia Events 9. The Best Wine Tourism Award – Chateau Mukhrani 10. The Best Adventure Tourism Award – Zeta Camping 11. The Best Georgian Traditional Restaurant Award – Tsiskvili Group 12. The Best Travel Photographer Award – Giorgi Liparteliani 13. Concept Café/Restaurant Award – Sirajkhana 14. The Best Marketing Campaign Of Tourism Destination Award – Where.Ge 15. The Best Specialized Tourism Services Award – Accessible Tourism Center Parsa 16. The Best Hotel Of International Chain In Georgia Award – Member Of Acor Group Mercuri Tbilisi Old Town Hotel 17. The Fastest Growing Company Of The Year In The Sme Segment Award – Best Western Kutaisi 18. The Best Woman Entrepreneur In The Tourism Industry Award – Founder Of Accessible Tourism Center Parsa Tamar Makharashvili 19. The Best Festival Or Event Award – Tbilisi Open Air 20. The Best Festival Or Event Award – Was Also Awarded To Kolga Tbilisi Festival For Unique Concept, This Festival Managed To Mark Georgia On The Photo Exhibitions’ Map.

The Official Award Ceremony hosted more than 700 guests: first Vice Prime Minister/Minister of Economy and Sustainable Development of Georgia – Dimitry Kumsishvili; Tbilisi Mayor – Kakha Kaladze; Head of Georgian National Tourism Administration – Giorgi Chogovadze; all nominees and project partners; government sector, private business, international and local media. Award Ceremony was opened by Tbilisi Mayor Kakha kaladze, he noted that Georgia has high potential for raising awareness in tourist destinations and the role of the each company involved in this field is important for tourism development. Welcomed guests first Vice Prime Minister of Georgia Dimitry Kumsishvili, he spoke about the importance of tourism industry for Georgia’s economy, latest achievements of the field and significance of the project. First Vice Prime Minister awarded - Saba Kiknadze, founder of Caucasus Travel for Contribution to Tourism Development. Co-Founder of the Award project Maryna Chayka

also welcomed and thanked guests, partners and nominees for participation in the Award Project and noted projects contribution in Georgian tourism industry and its’ global aims. Members of the professional Jury Board also welcomed the guests of the Ceremony and shared experience received as a part of the Project. Member of Jury Board Zurab Pololikashvili welcomed guests by video, he noted the importance of the tourism Industry for country’s development, thanked Award project organizers and emphasized the importance of the project to the companies employed in this field. 320 different companies representing tourism and hospitality market from all over Georgia including hotels, travel agencies, festivals and events, restaurants, cafes, wineries, travel photographers were honorably holding the status of Nominee of Welcome to Georgia! National Tourism Awards 2017. Each nominee was assessed in accordance with internationally recognized methodology by the Professional Jury Board, consisted of experts of international and local travel, culture and hospitality markets, who were separated according to categories depending on the kind of their main professional activity. As the guarantee of fairness and transparency of the Awards Project Independent Auditor “BDO Georgia” monitored all the processes, calculated the results and based on the points awarded to each Nominee determined the finalists and the winners in each nomination. The main mission of the Welcome to Georgia! National Tourism Awards is to encourage tourism and hospitality industry in Georgia and to promote the awareness of the high-achieving tourism business and brands that create a positive image of the country worldwide. For the third year already Georgian National Tourism Administration on behalf of Ministry of Economy and Sustainable Development of Georgia is Co-organizer of the Award Project. Tbilisi City Hall is Official Supporter; Official Partner of the Award Project - Bank of Georgia. General Sponsor - Alliance Group. Sponsors: Altido; Tbilisi Business Hub; Julius Meinl; Vesta; Ardi; Keune; Sarajishvili; The Department of Tourism and Resorts of Ajara; Dinehall; Vistoria Security; Iteq; Orient Logic; Elements Group; YanAir; UPS; Domson’s Engineering; Gagra Plus; Favorite Style; Profitex; STS Hospitality; Giffer; Megatechnica; Tbilvino; Budget; Lovely Roses; Hotel Partners: City Center; City Avenue; Lopota Spa Resort; Colosseum Marina; Grove Hotel; Coral Boutique Hotel; Divan Suites Batumi; Wyndham Batumi; Chardonnay Boutique Hotel;

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PR Person

December 11, 2017 #219

Interview with Tinatin Lomtatidze, the manager of coffee company “Cherie”

Self-development is the main passion of developing brand’’ - Why did you decide to enter this field, and what kind of opportunities does this profession give you? This all happened by itself. I always liked active, diverse life. In the first course I began to work in the Social Agency, and then I gained experience in different fields. Eventually, I was working as an export manager. Currently I am working in marketing and PR direction, which I enjoy very much and I think it’s very interesting field. - What is it necessary to hold a successful communication with public? It’s important to listen to your customers- what does he like and why, what doesn’t he like. Consider, improve. In any case, you should make them feel, that you’re trying to match their requirements. - What three tips would you offer someone just starting out in PR? Professionals should research the segment that they offer their product, then comprehend the demand and perform according to that.

Each day is very energetic and active, in what Cherie’s amazing aroma helps. It’s hard to be weakened when you have coffee Cherie

Maintaining quality is the most important factor. - What do you wish you would have known before starting your career in PR? Perhaps, not more than that, what I knew. Self-development is the main passion of developing brand. - Describe a typical work week. It’s hard to describe, as none of the weeks are similar. We have new plans, challenges, PR-campaigns every now and then. We are actively involved in different events and modeling held by students. We are active socially as well, that’s why I like my job. - How would you go about finding relevant contacts and sources? It’s important to know Marketing managers of other producers. I always try to attend relevant profile festivals, events, meet representatives of various companies, befriend with them to invite one another to our productions, share experiences. - How would you prioritize and start your work day? Each day is very energetic and ac-

tive, in what Cherie’s amazing aroma helps. It’s hard to be weakened when you have coffee Cherie. What are the skills Public Relations Specialist need? You must be passionate with your job, you can’t be a good manager otherwise. Most importantly, responsibility and being a team-player is required to be a PR. The huge part of skills and knowledge are gained along with experience. What trait do you value the most in your co-workers? Motivation is the most valuable in a person, skill to choose a right aim and follow that goal and a will to develop yourself constantly. What is the best PR practice technology can’t change? Gaining trust of a customer and partners is the best practice, then justifying it and preserving. What are some of the growing trends in the public relations industry? Direct relationship with a customer is a huge innovation, for instance action-tastings. Social networks play big role too.


December 11, 2017 #219

November 23-24, 2017, the III Annual EE Real Estate Forum & Project Awards organized by Ukrainian Real Estate Club and Europaproperty.com took place in the Fairmont Grand Hotel Kyiv. Over the past three years, the event has harnessed the drive and influence of more than 200 companies and diverse set of experts in real estate, mainly from Georgia, Kazakhstan, Ukraine, Azerbaijan, Moldova, Belarus, Kyrgyzstan as well as Poland, Turkey and EU region. The event has become a catalyst for investment initiatives, benchmarking shifts, industry breakthroughs and perfect networking platform for new collaborations and deals. “In 2017, the Award’s enrolment hit a new high – says Anna Nestulia, CEO at URE Club. – We received a record number of applications, more than 200 applicants in all nominations. At the same time, the approach to participants became more responsible which positively affected the preparation and submission of nominees. The EE Real Estate Forum & Project Awards faced significant interest from region’s business and, in particular, from Georgian market.

EEA Forum

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EEA Forum Creating Real Estate Trends Through Discovering Industry Breakthroughs EE Forum and Gala Outlook: Georgia

Nominees and winners

In 2017, the EE Real Estate Forum was attended by several top companies from Georgia: Lisi Development, Red-Co Georgia, ORBI Group, Colliers Georgia, Tsutskiridze + Architects (Gagua Clinic), SEU Development etc. In addition, professional business publisher “Caucasus Business Week” provided media support for region’s community as well as promoted real estate environment development of the Caucasus region. The largest information and analytical platform “Property Georgia” has become the strategic partner of the event. Georgian companies, as mentioned above, demonstrated the considerable interest to the EE Awards: 16 applications initially have been submitted for 8 categories including professional awards, residential complexes, shopping centers, multifunctional complexes and public property. Most of the applicants successfully passed the semi-final stage. Among them, Lisi Green Town as “Residential Complex of the Year” and “Mixed-use Project of the Year”, New Gudauri as “Mixed-use Project of the Year”, Kokhta-Mitarbi Resort as “Hotel Project of the Year”, Galleria Tbilisi as “Retail Project of the Year” and Tsutskiridze+Architects with “Gagua Clinic: Maternity Hospital” as “Public property of the Year”, Lisi Development Company as “Developer of the Year”. The winners of EE Awards 2017 were defined in few main categories, among which are “Best Companies”, “Best Projects”, “Personality of the Year” and “Special Awards from Organizers”. Winners have been selected by an independent international expert jury, while the best companies were determined by the organizers of the event on a point scale. The voting process took place under the supervision of the methodological partner Ernst & Young. Moreover, it is worth noting that both organizers and jury members emphasized the enormous number of high quality projects and well-experienced companies, so the final voting was really difficult.

However, despite the challenge, the activity of Georgian companies was undoubtedly worthwhile: among the best were recognized both projects and companies. Meanwhile, Georgia won once in three categories. “Lisi Green Town” by Lisi Development company (Tbilisi) has been awarded as “Residential Complex of the Year” and “Residential Community of the Year”. The implementation of the “20/80” principle which implies the construction of 20% of the territory and the arrangement of park areas for the remaining 80%. The award in the special nomination “Sales performance excellence” received the residential complex Green Yard, implemented by SEU Development in ecologically clean area in T ​​ bilisi. Residential real estate market in Georgia is the most active segment, both in 2016 and in 2017. Ratio of residential real estate in total transactions accounts for 75%. The supply increased in the first half of 2017 and 149 projects were finished and this is a 33% upturn as compared to the same period. The majority of jury members noted the multifunctional project New Gudauri Resort Residences & Spa complex. The developer of the project is Red-Co company, which develops and manages the tourist infrastructure in Georgia. The new project of the company includes ski slopes, hotels, apartment houses, restaurants, shops, SPA-centers and other entertainment. Thanks to its location not far from the capital and developed infrastructure, the resort attracts tourists not only in the ski season, but throughout the year. In the Red-Co note that New Gudauri embodies the company’s core values: quality, safety, comfort and efficient management.

Creating trends Worthy competition to the winners in the nominations was also made by the The Dirsi Residential Complex, Tbilisi (AS Georgia project), where a great atmosphere for raising children and family vacations was created, and Gagua Clinic – Maternity Hospital by David Tsutskiridze, which architecture and design “destroy stereotypes about medical institutions “. Also high marks were received by shopping mall located in the center of the Georgian capital – Galleria Tbilisi and the Mountain Resorts project – Kokhta-Mitarbi Resort, a four-season complex of hotels and residential apartments designed according to international standards. Moreover, companies fighting for the title of the best in professional categories were not left without awards. The developer of the year in Georgia is Lisi Development, which is carrying out the most ambitious projects in Tbilisi. Colliers International Georgia won the nomination “Consulting company of the year in Georgia”. Such interest from Georgian companies and projects to an international event in real estate and creation new business ties in the region shows perhaps better than figures, how active development of the real estate market in Georgia is and its high chances to set trends for the entire region. The EE Real Estate Forum & Project Awards 2017 showed that the Georgian market is sustainably developing in all directions: residential, commercial, tourist. This makes the industry attractive for foreign investors and opens up new opportunities for companies. And the forum is a platform for interaction, exchange of experience, analysis of trends, innovations and best practices in the real estate market.


business

10 Giorgi Kadagidze Appointed Acting Dean of Iliauni Business School Giorgi Kadagidze has been appointed an acting dean of Iliauni Business School. He will occupy the position of a dean after the official competition. Today, the board voted for his candidacy on the position of an acting dean. Before, the mentioned position was occupied by Nino Pataraia, who will lead the research institute of Iliauni Business School. Giorgi Kadagidze was appointed a National Bank president on February 26, 2009, for a period of 7 years. At the same time, Giorgi Kadagidze was IMF manager, EBRD alternative manager and BSTDB manager from Georgia. In 2014 Giorgi Kadagidze graduated Harvard business school course – “Program for Leadership Development” in Boston (USA). In 2005 he completed GIPA public management school with the MA degree. In 2001 he obtained BA double degree in business administration from Tbilisi Management European School and Preston University.

Harvard Budget Exceeds Georgia’s State Budget Georgia is a special country in the Region in terms of scientific achievements. As a result, the country has advanced positions in various ratings. Namely, Ilia State University ranks first in the Caucasus Region in the rating of the world’s research institutions (SCImago Institutions Rankings), Ilia State University principal Giga Zedania noted. The rating is topped by Harvard University. Iliauni ranks 656th in the rating and this is a satisfactory result, Zedania noted. In terms of number of students, Harvard university could be compared to Georgian Technical University with more than 20 000 students, while the budget of Harvard University exceeds Georgia’s state budget. Harvard invests much more money in education and research projects than Government of Georgia spends on army and teachers payrolls.

Technology Development Project Kicks Off Initiated by Israel The agreement that envisages establishment of new opportunity to develop technology field in Georgia, will be signed today at the Business and Technologies University. According to the organizers, the “Israeli Technological Hub” will be opened in the university, which means training center, opportunity to get employed in Israeli technology projects and promoting new ones. The project envisages retraining of hundreds of young people and involving them in highly paid technology projects.

December 11, 2017 #219

Manna – Georgian Organic Tea, Dried Fruit and Condiments Company Manna is a new company for processing and packing agriculture products located in Saguramo. The company is oriented on sales of ecologically clean and organic products. The company manufactures various tea products, condiments and dried fruits of ecologically clean and organic products. What are competitive advantages of Manna? The company has top-quality raw materials. Our production process is certified. The company has obtained an internationally recgonized bio products manufacturing certificate of KavkazCert. Professional food safety specialists ensure valuable protection of technological processes, as well as, design, packing, supply forms and style. We do not own plantations, but we buy Georgian raw materials, grass all over the country. Our company plans to produce a wide assortment of food and drinks, namely, tea, dried fruit, condiments and so on. The company has been successfully producing various tea and tea mixtures, as well as topquality Georgian dried fruit. At this stage, we produce 4 tea varieties: Georgian organic black tea, organic green tea, organic green tea with mint, black tea with berry leaves.

Georgian Student of San Diego University Became a Facebook Employee Georgian student of San Diego State University Luka Lomtadze will do internship at Facebook’s head office, the most famous social network. Luka was selected out of the top 300 students from 250,000 students and invited him at Silicon Valley in Menlo Park in the summer as a software developer. This is the first case when the student of San Diego State University got employed at Facebook. Luke is a third year student of computer engineering. In 2017 he traveled to San Diego for an exchange visit. The university offers campus Georgian students annually. Shortly after arriving in California, he decided to take part in the most demanding program of Facebook. In order to succeed, the head office has completed two technical interviews in which they have examined the possibilities of optimal solutions for programming tasks. “In the fifth grade I wrote my first code and decided to become a programmer. Since

then, I worked on a lot of projects, most of which still exist. My long-time dream was to get to Facebook and I knew that sooner or later I would achieve the goal, “says Luka and recalls the Facebook recruiter saying that he will meet Mark Zuckerberg at Menlo Park. Each year 250 000 applications are sent to Facebook in the software development field, whereby statistically, only 0.132% get internships. This is one of the most hard to get successes in the world. According to Dean of San Diego State University Georgia, Luka is an excellent example of student success. “The aim of our program is to support Georgia’s economic growth. In order to achieve this goal, we help students to realize their dreams in science and technology. Luka is one of many students who will succeed by this opportunity, “said Ken Walsh. San Diego State University (SDSU) is an American University with hundreds of years of history.

Capital Raising Alternatives for Agricultural Projects – the Fourth MEETING ROOM Conference by PASHA Bank On December 6th in Radisson Blu Iveria Hotel, PASHA Bank hosted its fourth business conference in the scope of MEETING ROOM with the topic being “Capital Raising Alternatives for Agricultural Projects”. MEETING ROOM brought together interested parties from public and private sectors to discuss major issues concerning the agricultural project management in Georgia. The MEETING ROOM covered, among others, the following topics: overview of the agribusiness development in Georgia, capital raising options, insurance tools for the sector, specific considerations for financing agro-projects etc. The presentations were delivered by following speakers: • Giorgi Jibladze – Deputy Director, Agriculture Projects Management Agency • Giorgi Danelia - Head of Investment Department, CIO, Partnership Fund • Ani Kobalia - Associate Director, Agriculture & Logistics, Georgian Co-Investment Fund • Zviad Kajaia - Head of Business

Development Department, PASHA Bank • Vladimir Gugushvili – Partner/ CEO, Georgia’s Natural The meeting was moderated by George Sharashidze, General Manager of Georgia Today Group. “Today we have gathered again under the auspices of the MEETING ROOM to discuss the major issues concerning the implementation of agricultural projects in Georgia. Since 2013 we have been engaging with a wide range of sectors in Georgia with agribusiness being one of our major areas of interest. We hope that this conference was interesting and informative for current and prospective investors in this field.“– said Goga Japaridze, CCO, Member of the Board of Directors at PASHA Bank. MEETING ROOM is a project initiated by PASHA Bank - a cycle of business conferences that aims to bring together participants from various industries providing a platform for sharing ideas and best practices as it relates to raising the capital for a wide range of business sectors.


December 11, 2017 #219

interview

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Work and Travel Program New Opportunities for Georgian Students

Interview with Lali Jokhadze, manager at StarAcademy Talk about your organization. How did you came up with idea of creating one, when did you start, who are founders and so on? -The company founder and director is Mr. Revaz Uturgauri. He is also founder and director of Sky Travel tourism company, which has been operating on the Georgian market successfully for 12 years. Organizations analogical to StarAcademy have been operating in various countries of the world for many years and they are very popular on local markets. These organizations cooperate on global level with 78 agencies, including in Georgia. Experience of these companies has inspired us to develop similar programs in Georgia to enable Georgian students, and not only students, to make use of this special experience. Based on international practice, we have introduced two programs: the Work and Travel and the TESOL. The Work and Travel is a four-month program in the USA and students are able to work for 3 months, receive high salaries and travel across the USA for a month. TESOL is a professional program for English-speaking individuals and the program participants are able to teach English language in China and Thailand for impressive salaries. Who are your target segment and what communication means do you apply to inform them? -The target audience of StarAcademy is divided in two segments – The Work and Travel program is oriented on students of 1-3 courses, while TESOL program is designed to wider audience. Individuals of any age and profession, who want to teach English in China or

Thailand can become TESOL participants. Information is delivered through social media, television. Various internet editions are interested in our organizations. We hold introductory meetings at Georgia’s leading universities and we keep direct communication with the audience and we take maximum efforts to comprehensively answer their questions. Which stages does the selection process include and what is required to participate in this project? -The Work and Travel selection process consists of several parts. First of all, participants should pass registration on the website, after which our representatives will contact them and appoint an interview to examine the level of English language proficiency and other skills. If the interviewer is a success, the participant must pay the application fee. As a result, StarAcademy will start seeking a due job place on behalf of the applicant and appoint an interview with the employer. Having successfully passed these stages, the participant will submit an application to the consulate and will leave for the USA for working for a period of 3 months and travel around the USA for the 4th month. To participate in the TESOL program it is necessary that an applicant have Upper-intermediate level in English language and this component is examined at an interview. To start working in China and Thailand, it is necessary to hold a TESOL certificate and the paid document is issued by our organization. TESOL certification program is one of the prestigious and worldwide recognized programs. It lasts 6 months and the teaching process proceeds in distance. However,

the course may be finished in a shorter period depending on the applicant’s efforts. Having taken a certificate, StarAcademy will seek a job place, appoint an interview and after successful interview the applicants will be able to work in Asia for 3-12 months. Salaries as part of both programs range from 1500 USD to 5000 USD. The project format raises natural questions regarding security issues. Are the project participants protected during the visiting period? -The participants safety is provided by CIEE (Council on International Educational Exchange), which is authorized by US State of Department to carry out the program administration. This is a new project for Georgia, but it is very popular worldwide. What is the existing practice in foreign countries and how similar projects assist students in future career? -Both programs are very popular in foreign countries. Thousands of young people and adolescents are involved in it. There are no cases when the successful applicant was left without job place. The Work and Travel and TESOL programs assist candidates to receive professional experience. Social activity is one of the important aspects for career advancement. Moreover, working experience is appreciated very much abroad. The program helps the participants gain new skills and work in interesting environment. As a result, the participants will be able to get adapted to any environment in the future. As to the TESOL program, the participants will receive

the world’s one of the prestigious certificates in English Language and live in comfortable environment thanks to high salaries. They will be also able to save money for future plans too. Will similar programs increase young people’s immigration to the developed countries. Will be this program used for similar purposes and what are prevention mechanisms? - Similar programs cannot provoke an immigration of young people, because we have taken preventive measures. CIEE (Council on International Educational Exchange) and an employer company involved in the Work and Travel program bear responsibility that the participants return to homelands in preliminarily determined terms and continue studies or other activities in homeland. At this stage, the program enables students to work in the USA, China and Thailand. What specific duties will they perform and who will be responsible for them, which organizations do you cooperate with? -The program participant’s duties depend on their jobs. In case of the Work and Travel program, the field of occupation is hotel management, sales, services at food outlets, national reserved territories and entertainment/aqua parks. As to TESOL program, its participants work with pupils at local public schools and teach English language under the TESOL methodology. We cooperate with all those organizations, where our applicants will be employed, because the employer company is responsible for the participants.


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King David launched New Year’s special offer “Unordinary 2018”

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here is a wonderful update for you at King David! New Year’s special offer “Unordinary 2018” has begun. The residences at King David can be purchased through 20 month length internal interest-free installment payment possibility with only 1% down payment and 8% discount. Upon purchasing the apartments, residents can start renovation works and can move in even before full payment of the apartment. It shall be highlighted that King David has already been accepted into exploitation and will welcome the first residents this winter. King David is the first premium class multifunctional complex, which has created a precedent of building skyscrapers in Tbilisi. This is a hotel-type complex, which offers the best panoramic views of Tbilisi. This unique full-service condominium project introduces a new way of living in Tbilisi, merging comfort and convenience to balance the demands of today’s active lifestyles. Residents can spend their days working, relaxing and socializing throughout their own building. Over 40% of the project is made up by infrastructure. The project unites two independent buildings, one of the towers has 32 and another one 19 floors. The tallest tower is the King David Residences and this is where apartments are located, the lower tower is the King David Business Center and is a home to the A class business center.

December 11, 2017 #219


December 11, 2017 #219

world

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Turkish tachograph poised for ripe EU-based market

IMF warns over ‘large risks’ for China’s financial system The growing debt dependency at a “dangerous pace” by the world’s second-biggest economy, China, has raised International Monetary Fund (IMF) concerns. The fund has warned of large risks and imbalances. According to the IMF’s health check of China’s financial system, four-fifths of the country’s banks are at risk. China’s “big four” banks had adequate capital, but “large, medium and city-commercial banks appear vulnerable,” it said. The system’s increasing complexity has sown financial stability risks, the IMF’s assessment said. “Credit growth has outpaced GDP growth, leading to a large credit overhang.” The country’s debt is now equivalent to 234 percent of the country’s total output, the IMF report showed. “The apparent primary goals of preventing large falls in local jobs and reaching regional growth targets have conflicted with other policy objectives such as financial stability.” The IMF has acknowledged that President Xi Jinping is taking steps to contain the risks and is committed to improving financial security. It added Beijing should adjust its economic strategy further and create a body to focus solely on financial stability. “Supervising one of the world’s largest and most complicated systems is a challenging task. The Chinese authorities have worked hard to keep pace with growth and innovation, but as in all countries, many gaps remain,” the IMF said. “We recommend the authorities to de-emphasize the GDP” growth, said Ratna Sahay, deputy director of the IMF’s Monetary and Capital Markets Department.

Turkish defense giant Aselsan is expected to help Turkey keep more money within the country by producing a domestic version of a digital tachograph, a device which monitors a vehicle’s speed and distance. In addition to its contributions to Turkey’s defense industry, the Ankara-based company is providing products for civilian use, Aselsan said in a statement on Dec. 7. The firm stated that digital tachographs are only produced by a handful of countries, including Turkey. Within the EU, the devices are mandated for vehicles such as trucks, vans, and other vehicles with a nine-passenger capacity or above. The EU requires the devices for trucks and bus coming from Turkey. When Turkey, EU countries, and other countries with vehicles entering the EU are considered, there is an annual market for digital tachographs of over 1 million. So taking into consideration the number of vehicles with tachographs and the need for the device, Aselsan’s locally made digital tacho-

graph could stem the outflow of almost €1 billion ($1.17 billion), said the company. Turkey comes second in the world in international road transport thanks to its fleet of 60,000 vehicles operating in Europe. Older tachographs can cause traffic accidents and loss of life and property as they can be manipulated. Newer tachographs as produced by Aselsan are expected to end this. Thanks to its tools, working hours and speed limit violations can be monitored clearly The device saves the vehicle speed and drivers’ working hours and identities automatic or semi-automatically. The device is also resistant to manipulation. The digital tachographs’ marketing, sales and support will be done by its distributor, Takosan, said Aselsan. Founded in 1975 in the capital Ankara, Aselsan, which produces military radios and defense electronic systems for the Turkish Armed Forces, is seen as Turkey’s premier defense systems producer.

Kazakhstan considering transit of energy resources through Azerbaijan

Bitcoin chalks up new record as it charges past $14,000

EBRD and Japanese Government support capital market development and SMEs in Armenia

Bitcoin ploughed past $14,000 to a fresh record on Dec. 7 as investors continued to pile in, triggering a warning the cryptocurrency was “like a charging train with no brakes” that would inevitably slip back. It touched a new high of $14,475 before slipping back to $14,328 in Asian afternoon trade, according to Bloomberg News. The rally came just a day after the virtual currency, which has been used to buy everything from an ice cream to a pint of beer, hit the $12,000 mark for the first time. Bitcoin -- which came into being in 2009 as a bit of encrypted software and has no central bank backing it -- has risen from a 2017 low of $752 in mid-January, and surged dramatically in the past month. The increased interest has been driven by growing acceptance among traditional investors of an innovation once considered the preserve of computer nerds and financial experts. US regulators last week cleared the way for Bitcoin futures to trade on major exchanges, including the world’s biggest futures center the Chicago Mercantile Exchange (CME). But some, including the U.S. Federal Reserve, have warned against dabbling in Bitcoin as it could threaten financial stability, and fears of a bubble have increased as the price has soared.

The European Bank for Reconstruction and Development (EBRD) is organizing a tailor-made course for consultants entitled “Capital markets instruments for SME finance” which will be held on 6-8 December 2017 in Yerevan, reports Armenpress. The aim of the course is to provide training to the financial consultants in Armenia with relevant skills and know-how on how small and mediumsized enterprises (SMEs) can access debt and equity financing instruments in the capital markets, that will allow them to diversify their source funding and attract new investments. The main topics during the training will be: introduction to capital markets; types of financial instruments available for SMEs; company valuation; debt and equity financing options; capital ma kets risks; key financial indicators and applications for SME growth and increasing their “investment readiness”. The course has been designed and organised under the framework of the EBRD’s SME Local Currency Programme and funded by the Government of Japan. The Government of Japan, through its donor cooperation funding with the EBRD, supports the development of local capital markets through

regulatory reforms, capacity-building programmes, development of capital markets products and educating on innovative market instruments, as well as developing the local and international institutional investor base. In Armenia, SMEs lack access to diverse financing tools for expansion and, particularly, for attracting equity financing. In this context, the Armenian SME Finance & Advice Facility (FAF) was established through an EU-EBRD collaboration to increase SMEs access to advice, to boost their investment readiness and to diversify the financing solution currently existing in Armenia through the establishment of a private equity fund. Mr.Hannes Takacs, Associate Director of the EBRD Local Currency and Capital Markets Development programme, said “Many Armenian companies are unaware of the capital market funding options or of the challenges that they may face when attempting to access equity finance. This course is designed to equip the SME advisers with the knowledge and tools that they need to successfully advise Armenian companies, especially SMEs, on how to access equity and debt capital market financing.”

In connection with increase in the capacity of oil and gas fields, Kazakhstan is considering the possibility of transporting its energy resources through the territory of Azerbaijan, said Kazakh Minister of Energy Kanat Bozumbayev at a briefing on Thursday. “Today, we signed a protocol and a road map for development of bilateral relations, including the establishment of two working groups. The first working group will have to study the possibility of transiting Kazakhstan’s oil through the territory of Azerbaijan,” the minister said. Bozumbayev said Kazakhstan’s oil is now supplied in several directions, the main of which is the Caspian Pipeline Consortium, and a new competitive direction of oil transportation through Azerbaijan should be worked out by the working group. “We supply oil to China, to countries of the Black Sea, as well as through the AtyrauSamara oil pipeline to Finland,” Bozumbayev said, adding that transit of oil through Azerbaijan is a promising option. The minister also recalled that last year, one of the largest deposits in the world, Kashagan, was put into operation in Kazakhstan. “We are also planning to increase the capacity of the Tengiz oil field,” Bozumbayev said. The minister said that every year gas production is growing, and this year Kazakhstan started exporting gas to China. “This year we extracted about 50 billion cubic meters of gas, 30 percent of which was directed to the domestic market,” said Bozumbayev. The minister said Kazakhstan is interested in transiting gas through the territory of Azerbaijan under acceptable conditions.


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December 11, 2017 #219

Brand History - Liderfood years of work is that nowadays, Liderfood holds 35% of the meat products market and represents one of the largest suppliers. It is important that with the support of the Ministry of Economy of Georgia program “Enterprise Georgia” its investment, we have built an enterprise which is the largest among the meat producers in Georgia and we are one of the largest in Transcaucasia “ The main difficulty - “It’s not easy to go this way, the competition was high and we had to take up our place among many companies,

T

he Georgian company of meat products was founded in 2009. The idea of establishment was to create a strong, modern Georgian company that would supply the market with quality meat products and compete both local and imported products. Initially the production began with about 10 of the classical meat products, as of the growth of demand over time, the number of species increased. Today, the company “Liderfood” pro-

duces up to 100 kinds of meat products. Almost every category of mear has been presented. Key to a success - As they say at Liderfood, the main reason of the success is hat the company was a business approach, creating a company that would take an important place in Georgian business space and not only local, the company is already planning to work on the export line. “The modern approach and management brought us to the present day. The result of 9

which we made it happen and the second important issue was the customer’s dependence on processed meat products. We have to change the idea on the market that the processed meat products are poor and harmful to health. From the quality of our production, we have started working on this issue since the first day, we are still actively trying to change the attitude towards positive “- declared at Liderfood. The history of logo and name - we want

to be associated as the company that satisfies the rational needs of the people in compliance with international quality standards. Also, our products are safe, and it is very important for us to have an emotional connection with the customer, which is a challenge to modern business. They said at Liderfood that company has carried out rebranding before entering a new enterprise has changed the communication strategy and visual style. Nowadays the company has a modern design and open-ended communicational language. The renewed communication strategy is completely based on the emotional connection with the customer, the new slogan of the company “For happy moments”. The renewed conception is one of the proposals: Our life is a daily basis of the happy moments that we do not pay attention enough, so the content of our company and the main slogan is the reminder of these happy moments, thinking and motivating people to feel happier in their everyday life. “We can freely say that today we have created a company that is a modern company meeting world market standards, with its strategy, visual side and of course the possibility of production” - said in “Leaderfood”. Why Liderfood? - Today, Liderfood is the largest meat industry in Georgia, which meets the highest standards of production, ranging from raw materials to distribution. Raw materials together with Georgian meat are obtained by German suppliers from the European market. We are carrying out transportation with modern distribution cars as well as the highest standards. Company has a mission “to support the development of the field, to increase confidence in meat and to impose quality standards” This means that our products will always be of the highest quality and safe, we will always be transparent and most importantly our products will be a sample of what should be the quality meat product.


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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 76-g Chavchavadze Ave., Tbilisi Tel: 231-11-61, 231-14-54 E-mail: emb_ge@mfa.gov.ua Consular Agency: 71, Melikishvili St., Batumi Tel: (8-88-222) 3-16-00/ 3-14-78 Republic of Turkey Embassy 35 Chavchavadze Ave., Tbilisi Tel: 225-20-72/73/74/76 embassy.tbilisi@mfa.gov.tr Consulate General in Batumi 9 Ninoshvili Street, Batumi Tel: 422 25 58 00 consulate.batumi@mfa.gov.tr Republic of Azerbaijan Embassy Kipshidze II-bl . N1., Tbilisi Tel: 225-26-39, 225-35-26/27/28 E-mail: tbilisi@mission.mfa.gov.az Address: Dumbadze str. 14, Batumi Tel: 222-7-67-00; Fax: 222-7-34-43 Republic of Armenia Embassy 4 Tetelashvili St. Tbilisi Tel: 95-94-43, 95-17-23, 95-44-08 Kingdom of Spain Embassy Rustaveli Ave. 24, I floor, Tbilisi Tel: 230-54-64 E-mail: emb.tiflis@maec.esRomania Embassy 7 Kushitashvili St., Tbilisi Tel: 38-53-10; 25-00-98/97 E-mail: ambasada@caucasus.net Republic of Poland Embassy

Tbilisi Guide 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 European Investment Bank Regional Representation for the South Caucasus Address: 1,G.Tabidze Street, Freedom Square Phone: +995 322 006284

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 River Side Hotel With incredible service and views Addr: Mari Brosse street turn, Old Tbilisi. Tel: +995 32 2242244; +995 32 2242288 Fax: +995 32 2 242277 Email: info@riverside.ge Website: www.riverside.ge

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

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

15 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

75 Agmashenebeli Ave. Tbilisi Tel: 577 18 27 87 Email: hostelmtevnebi@yahoo.com

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

Limelight Travel info Center Address: 13 Sioni Street, 0105, Tbilisi (at the end of Shardeni Street) Phone: +995 322 999 123 E-mail: info@limelight.ge Web-page: www.limelight.ge Facebook page: www.facebook.com/limelight.ge

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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December 11, 2017 #219