Caucasus Business Week #223

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January 29, 2018 #223

January 29, 2018, Issue 223 - www.cbw.ge

Distribution Are Distribution Companies Protected by Law?!

Pg. 7

Innovation Virtual Office – Innovative Offer for Customers by REGUS

Keti Berikashvili: Communication with public becomes more tradable

Pg. 9

Pg. 8

What to Expect from 2018 State Budget

Silknet to Purchase Geocell

Pg.7

The transaction combines Silknet’s broadband, pay TV and fixed telephony operations with Geocell’s mobile operations, creating a major convergent telecom company Expected synergies will provide Georgian consumers with enhanced access to voice and data services and exclusive global content Tbilisi, January 26, 2018. – Silknet announced today the successful acquisition of Geocell, the second-largest mobile operator in the Republic of Georgia, after reaching an agreement with Geocell’s shareholders, Telia Company (STO:TELIA) and Turkcell (NYSE: TKC, IST: TCELL). The acquisition, which values Geocell at USD 153 million, will be financed through a combination of debt – a syndicated loan arranged by TBC Bank local with other regional banks – and equity. The transaction creates a major convergent telecom operator in the Republic of Georgia, combining the assets of the country’s largest fixed-line company, Silknet, with the mobile telecommunication activities of Geocell. Georgian consumers can expect significant benefits from the combination, thanks to new planned convergent broadband, pay TV, mobile and fixed telephony offerings, including enhanced mobile access to Silknet’s exclusive content such as global sport competitions. Silknet is a member of Orange Alliance. This program from Orange, a global telecom company, contributes to independent operators’ growth and operational efficiency by leveraging on the experience and know-how of a major world class operator. “This transaction allows us to create an integrated telecommunications operator, combining fixed line and mobile technologies. The larger scale will provide the company with superior access to international capital markets, further ensuring continuous investment in new technologies. Our subscribers will greatly benefit from these endeavors, as we strive to provide Georgian consumers with even better products, services and content.” said George Ramishvili, the Chairman of Silknet and of its parent company, Silk Road Group. “We are delighted to welcome to the Silknet team Geocell’s first-class employees and its corporate culture of excellence. This transaction furthers our long tradition of integrating Georgia with the wider world, and we expect that it will strengthen the development of Georgia’s digital infrastructure.” Subject to approval of the local regulatory authorities in Georgia, the acquisition is expected to be completed in the second quarter 2018. Houlihan Lokey and Erneholm Haskel served as the financial advisers on the transaction, and Dentons served as the legal adviser.


Newsroom

2 Government

Irakli Lekvinadze Appointed As Georgia’s Business Ombudsman

Irakli Lekvinadze, the former vice mayor of Tbilisi, has been appointed as Business Ombudsman. He is an economist by profession, doctor in business administration.

JSW GROUP to Implement Two Major Projects in Georgia

JSW Group director positively appraised Georgia’s investment environment, cooperation with Government of Georgia and showed readiness to expand investment portfolio in the country.

economy

EU-supported €12 Million Agriculture Development Project to be Signed in Georgia

According to the agreement, FAO will be supporting the Ministry in effective policy-making and implementation of the Strategy for Agricultural Development 2015-2020

Exports of Copper Concentrates and Ferroalloys Considerably Grows

According to the official statistics, in 2017 exports of copper concentrates rose by 34%, while exports of ferroalloys increased by 81%.

banking

34 Percent of Deposits are in National Currency

The total volume of non-bank deposits in the country’s banking sector decreased by 0.7 percent, or by 141.5 million GEL, compared to December 1, 2017 and constituted 19.8 billion GEL by January 1, 2018.

Global Finance Recognized Bank of Georgia as the Best Trade Finance Bank

The country’s leading financial institute has been names the Best Trade Finance Bank in Georgia for the second time.

business

Nikora Trade Plans to Attract Over 25 MLN GEL with Placement of Shares

Nominal value of per share amounts to 2.18 GEL. Upper limit of the selling price is not determined. According to the management, the company will be able to attract 16.8 – 25 million GEL by selling 1 million shares.

Chinese Investors Want to Grow Rapidly Renewable Forest Plantations in Georgia

Business delegation and Forest Department of Jiangxi Province have submitted a plan at the meeting with executive director of Partnership Fund.

company

H&M To Open Second Store in Tbilisi

The store is set to open in Spring 2018. In the East Point Shopping City, 2 Aleksandre Tvalchrelidze Street. More information of the store opening will be provided further on, prior to opening.

January 29, 2018 #223

Davos 2018 Georgian PM sums up key achievements of visit

“It was a successful and productive visit” – with these words Georgia’s Prime Minister Giorgi Kvirikashvili summarises the Georgian delegation’s visit to Davos, Switzerland to participate in the World Economic Forum. The Georgian PM and a small Georgian delegation departed for Davos on January 22 in order to participate in the World Economic Forum’s 47th session. While in Davos, Kvirikashvili met with a number of world leaders and high officials from global leading companies. Georgian PM stated that representatives and investors of every company he met in Davos consider Georgia the right place to open regional representation. Kvirikashvili recalled his meetings with large Indian companies and with United States company Hillwood and hoped these meetings will yield successful results later. He also mentioned political meetings with the President of Azerbaijan Ilham Aliyev and with Prime Minister of Kyrgyzstan Sapar Isakov with whom the PM discussed traditional friendly relations and the importance of strengthening economic relations. Kvirikashvili said that Georgia’s progress was recognised by all participants of the panel “Strategic Outlook - Eurasia”, which was held yesterday in Davos at the World Economic Forum. The Georgian PM spoke about his meeting with the President of the International Olympic Committee Thomas Bach in Lausanne, where it was decided that a special group of experts will visit Georgia to learn about development in the country’s mountain resorts and future prospects in the industry. Georgia is beginning to prepare for the 2030 perspective – to prepare everything in our country in order to host the winter Olympic Games. This will entail very intense efforts but will bring new investments, new jobs,” said Kvirikashvili.

Kvirikashvili meets his Kyrgyz counterpart at World Economic Forum

Georgia’s Prime Minister Giorgi Kvirikashvili met the Prime Minister of Kyrgyzstan Sapar Isakov, at the World Economic Forum in Davos, Switzerland. The Prime Ministers discussed traditional friendly relations and the importance of strengthening economic relations between the two countries. Both officials expressed their readiness to review new opportunities and deepen further successful cooperation. The Prime Minister of Kyrgyzstan underlined the significant changes that have taken place in Georgia in recent years and showed interest in sharing the experience of successful reforms. Georgia’s Prime Minister and a small Georgian delegation departed for Davos on January 22 in order to participate in the World Economic Forum’s 47th session. While in Davos, Kvirikashvili met with number of world leaders and high officials from world leading companies.

PM participates at ‘Strategic Outlook Eurasia’ discussion

During the World Economic Forum, Georgian PM together with the President of Azerbaijan and deputy Prime Minister of Kazakhstan Erbolat Dossaev, participated in the “Strategic Outlook - Eurasia” discussion.

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The moderator of the discussion gave questions to all participants, which was mainly focused on neighbouring relations in the region and how Georgia faces Russian threats and maintains stability. Partnership with the West, good neighbouring relations, finding zones of common interests with Russia is the way how Georgia achieves stability,” said Kvirikashvili. The occupation of two of our territories is a big issue...Taking into account the consistent policy of European and Euro Atlantic integration and a policy which is based on certain values, we still need to look for zones or areas with Russia which can serve as a base point in the future to start positive discussions about the political resolution of the conflict... Those areas can be trade, tourism, humanitarian and cultural relations,” said Kvirikashvili. Today the Russian market is open to Georgia…we have around one million visitors from Russia every year. There is not a single conflict on an ethnic basis with Russian tourists. Our discussions should be based on the respect of territorial integrity, which should be the cornerstone of every discussion in our region,” he added. As Kvirikashvili highlighted several times Georgia’s pro-Western aspirations, the moderator came up with the question, “How does Georgia cope with Russia’s threats?”, using the example of Ukraine as a country suppressed by Russia for its aspirations. This is a daily issue in Georgia, how we face threats from Russia,” answered Kvirikashvili. “We are trying to tell our northern neighbour Russia that the policy of Georgia to become part of the western community is not against anybody. Russia should be interested in having a stable southern neighbour. We need to look for platforms which can be positive, where we can find common interests, where we can start positive discussions on the political resolutions of problems we have”, he said. The next issue discussed at the session was about corruption, how Georgia has fought against corruption and became a “star country”. This is the result of a full myriad of reforms undertaken by the Georgian government. This is about the openness of the economy, eliminating tariff barriers; this is about the constant improvement of border-crossing procedures and also deep reforms inside the country. Georgia become the chair country of the Open Governance Partnership last year, which we received from France. We created the Investors Council, to eliminate negative surprises for the business community. As for digital economy, we are creating a unified Front Office project and a Business House project. We are further improving transparency, further decreasing any chances of corruption,” said Kvirikashvili. The Georgian PM also spoke about recent economic development in Georgia, how the government is striving to transform Georgia into a truly European democracy, how the government introduced open competition on the market and the proper protection of property rights. Kvirikashvili also said that all the efforts were reflected in the country’s international rankings, where Georgia’s position is improving gradually.

Georgian Prime Minister, Azerbaijani President meet in Davos

Georgian Prime Minister Giorgi Kvirikashvili met with the President of Azerbaijan Ilham Aliyev at the World Economic Forum in Davos, Switzerland. Prime Minister Kvirikashvili and President Aliyev discussed topics such as the countries’ strategic partnership, the

implementation of joint projects, including the Baku-Tbilisi-Kars railway project, which plays an important role and creates new opportunities for the region. • Read also: PM says Baku-Tbilisi-Kars railway will change current economic reality Cooperation in the field of energy transit and the increase of commercial-economic relations was also welcomed. The parties believe that partnership between the two countries is crucial and brings excellent prospects for the region.

Int’l Lulu Financial Group looks to enter Georgian market

One of the largest international companies, LuLu Financial Group (LuLu FG), is interested in entering the Georgian market. Meeting with the Managing Director of LuLu FG Adeeb Ahamed at the World Economic Forum in Davos, Georgian Prime Minister Giorgi Kvirikashvili discussed the business environment in Georgia and projects open for potential investment. LuLu FG plans to better familiarize itself with business opportunities in Georgia and make further investments. According to Prime Minister Kvirikashvili, the favorable business environment in Georgia and its completed and ongoing reforms aim at rapid economic development. Moreover, the country has increasingly positive international rankings year after year. Based in Abu Dhabi, United Arab Emirates, LuLu FG is a non-banking financial organization, which primarily deals with foreign exchange, global money transfer and salary and wage administration. Some of the world’s other leading companies are interested in investing in Georgia, planning to send a group of experts to the country and explore investment opportunities on site.

Two Indian companies Wipro and JSW Group look to invest in Georgia

Some of the world’s leading companies are interested in investing in Georgia, planning to send a group of experts to the country and explore investment opportunities on site. An Indian information technology services corporation, Wipro, is one of the companies which plans to enter Georgia. More specifically, Wipro is interested in setting up a large service centre in Georgia in order to export the centre’s services into the countries of the European Union. This topic was discussed by Georgia’s Prime Minister Giorgi Kvirikashvili and the Vice-President of Wipro Justin Dalal at today’s meeting, which was held at the World Economic Forum in Davos, Switzerland. At the meeting it was decided that Wipro will send a special group to Georgia to study investment opportunities in Georgia. Meanwhile, Kvirikashvili gave an overview of recent economic developments in Georgia, talked about the country’s favourable business environment and highlighted Georgia’s leading positions in international rankings. After the meeting with Wipro’s VicePresident, Kvirikashvili met the Chairman of JSW Group, Sajjan Jindal. SW Group is one of India’s leading integrated steel manufacturers. The company is interested in implementing two large projects in Georgia. Detailed information about the projects will be announced once the technical-economic study will be completed. Jindal positively assessed the business environment in Georgia and said the JSW Group was looking forward to more investments in Georgia.

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


January 29, 2018 #223

publicity

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econo-mix

January 29, 2018 #223

What to Expect from 2018 State Budget

Merab Janiashvili 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.

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otal revenues of the 2018 state budget are planned at 12.4 billion GEL, including: tax revenues – 9.490 billion GEL (23.5% of GDP); the remaining part of revenues will be mobilized from other resources. This signifies 23 Tetri from each 1 GEL circulating in the economy is directed to the state budget. The remaining part is accumulated by grants, domestic and external loans and other sources. This year the Government plans to accumulate a major part of sums from VAT – 4.4 billion GEL. Incomes tax forecast indicator is 3.16 billion GEL, excise tax – 1.45 billion GEL, profits tax – 630 million GEL, imports tax – 60 million GEL, other taxes – 170 million GEL. It should be noted that the 2018 state budget does not differ much from the 2017 budget. Last year economic growth reached 4%, while GEL exchange rate was about 2.5 in relation to USD and inflation stood at 4%. Out of these key parameters, GDP growth parameter was achieved. According to January-November statistics, in 2017 the economy rose by 4.8%. GEL exchange rate was instable throughout the year, while inflation exceeded 6% at the end of 2017. In this respect, Georgia’s economic growth parameters target 4.5% economic growth, 3.5% inflation and 2.5 GEL to USD exchange rate. Parliament of Georgia approved the 2018 budget bill on December 11. Opposition did not take part in voting. They think that widely-advertised structural reforms, enlargement-abolition of ministries have not cut budget spending in reality. By the time of submission of the current year budget, structural changes took place at Ministries. Four Ministries were abolished, but government expenses have not decreased, despite the number of state sector employees is reduced to 113 613 persons from 116 757 ones. For example, this year 1.413 billion GEL will be spent on salaries in state sector, 1.201 billion GEL - on goods and services. These parameters stood at 1.397 billion GEL and 1.176 billion GEL in 2017. Infrastructure, education and healthchare –

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Association of Young Financiers and Businessmen (AYFB) plans to conduct a public monitoring of major infrastructural tenders and quality of their implementation. Over the past years, a major part of the state budget is spent on infrastructural projects and the current year is a special one in this respect. Regrets about low-quality and invaluable implementation of projects grows day by day. According to primary examinations, the tender participant companies may be exposed of dishonest offering of much less funds than required for valuable implementation of tender conditions, with the aim to win the competition. As a result, projects may be implemented with essential violations because of lack of due amount of finances and because of easily winning schemes. Environment impact assessment norms are not protected either. To improve the mentioned shortcomings and to fully finish the works, the state budget has to allocate unforeseen expenditures and therefore, projects implementation is protracted. AYFB believes that these circumstances generate problems in many directions. Namely, fair competition principles are violated; honest companies are not allowed to efficiently implement projects; unfinished road infrastructure projects frustrate road traffic and cause much discontent and anxiety in the population; the state budget expenses grow; Many questions arise about corruption in state structures and so on. Consequently, initially, AYFB has showed interest in several major road infrastructure projects, including 18.5 kilometer SamtrediaGrigoleti highway and Tbilisi-Rustavi highway projects; Kobuleti bypass road, Zestaponi-Kutaisi bypass road project and Rikoti Pass approach project (Zemo Osiauri-Chumateleti). AYFB has already forwarded corresponding questions to Ministry of Regional Development and Infrastructure and Ministry of Environment Protection and Agriculture. AYFB will submit primary results of the research to the society in the nearest future about implementation of the above-mentioned project. The report covers such issues as: • General conditions, requirements and values of tender; • Participant companies and winning conditions; • Technical and qualitative details for road construction; regulations for supply of fulfilled works and their protection quality; • whether companies have requested any changes to the project that make the project more expensive; • Quality of environment impact norms in the construction process and their monitoring; • Financial documents related to project implementation and so on. At the same time, there are doubts that Georgian legal regulations on approval of road construction projects and approval of amendments to the projects are violated and construction works, after changes to the initial rojects are implemented by violation of Georgian legislation, international agreements, international norms and procedures. After making changes to projects, documents may not pass legal procedures, examination procedures and environment impact assessment. Illegal construction activities may be also reported. It is important that there should not be any questions about corruption in state structures and works fulfilled by the companies as part of major and important infrastructural tenders.

Infrastructure, Education and Healthcare as Priorities of the 2018 State Budget

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AYFB to Examine Highway Construction Works for Legal Compliance

government of Georgia will prioritize these directions. State budget spending due to sectors is shared in this way: healthcare – 3.52 billion GEL, infrastructure – 1.81 billion GEL; education – 1.18 billion GEL, defense - 802 million GEL; Interior Ministry - 569 million GEL; culture and sports - 285 million GEL; environment protection and agriculture - 274 million GEL and so on. Ministry of regional development and infrastructure will receive 1.815 billion GEL in 2018, including 1.310 billion GEL will be spent on motorways construction works, such as Chumateleti-Argveta section reconstruction and construction, Devdoraki Tunnel construction and so on. 196 million GEL will be spent on improvement of water supply infrastructure, for example, water supply systems construction-installation works will be performed in Pankisi Gorge, villages near Kaspi and Kareli municipalities. As a result, water supply quality will be considerably improved for 20 000 persons. It should be noted that a major rise in spending will be recorded in infrastructural projects in 2018. Finances will rise by 40% as compared to 2017. As to Ministry of Education and Science, the Ministry will receive 1.186 billion GEL, of which 671 million GEL will be spent on general education, 600 million GEL – on high schools and 133 million GEL on higher education programs, education system infrastructure development will be financed by 97 million GEL. The 2018 budget does not call for growing teacher salaries. However, the Ministry plans to modernize teacher’s salary payment system. However, the Government has not introduced a specific plan yet. The major allocations will go to Ministry of Labor, Health and Social Protection – 3.528 billion GEL, which is 28% in the 2018 budget expenses. This signifies that 28 Tetri from each 1 GEL paid to the state budget will finance pensions and social allowances, insurance and other social costs, despite the amount of pensions and social assistance is one of the lowest ones in Europe and CIS space. The 2018 state budget does not call for growing pensions and social allowances.

“China ranks third among Georgia’s trade partners in terms of turnover, but ranks fourth in terms of exports. Free trade agreement that came into force on January 1, 2018 enables to exempt 94% of Georgian products exported to China from customs tariffs and this is a huge achievement, because tariff tax ranges from 2% to 65%”.

Nino Chikovani

The president of Chamber of Commerce and Industry of Georgia


January 29, 2018 #223

publicity

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opinion

January 29, 2018 #223

Tato Khundadze

Economic Analyst

Unemployment is the sharpest problem in Georgia. This is confirmed by various public polls done by local and international organizations. However, public discussions and media coverage do not fully reflect deepness of this problem. There is a lack of discussion in Georgian society regarding the problem of unemployment due to the ideological reasons. According to dominating neoliberal ideology, if the Government does not intervene in an economy and does not distort market forces, full employment and economic will be achieved automatically. Georgia did its best to follow this model of economic development, however, unemployment is still high and currently reaches 12%. Furthermore, if one looks reality in a more scrupulous manner, things get more complicated. Geostat, national statistics office of Georgia, applies methodology of International Labor Organization (ILO) for calculating level unemployment countrywide. This methodology enables to identify general trends in relation to unemployment and determine the number of active citizens, but this methodology cannot be utilized for planning employment policy. By looking into the statistics deeper, we will see that unemployment level is much higher. 42.4% of the employed are considered to be hired employees, while 57.6% are considered as self-employed. In the developed countries self-employed are not considered to be low-paid segment. Self-employed may be individual entrepreneurs, consultants, programmers (so called ‘techie guys), architects and so on. Representatives of this profession may have high salaries in most cases, even though they are considered to be self-employed. However, there is different picture in Georgia in this regards. According to Geostat 83% of self-employed are registered in agriculture sector. Quite naturally, following question arises: what does the employment in this sector mean? As noted above, Geostat applies ILO standards, under which a person is considered to be employee if for the past 7 days before the inquiry he/she has worked even an hour for salary (salary, natural income, profits and so on). This norm does not determine an amount of revenues; a person is considered an employee, for example, if you live in village, have small plot of land where you plant maize, keep cattle and sell milk. In this case you are considered to be employee, to be precise, a self-employed. A major part of the employed in agriculture sector does not belong to welloff segment and mainly people employed in this sector are working for subsistence. This consideration is proved by Geostat information which says that revenues in the agriculture sector is the lowest and this sector is the least productive and its total ratio in economy is 8%, even though around 48% of the employed are considered to be self-employed in agriculture sector. Taking into consideration afore mentioned methodology, Geostat may consider a person to

42.4% of the employed are considered to be hired employees, while 57.6% are considered as selfemployed. In the developed countries self-employed are not considered to be low-paid segment.

Conundrum of Unemployment Georgia did its best to follow this model of economic development, however, unemployment is still high and currently reaches 12%. Furthermore, if one looks reality in a more scrupulous manner, things get more complicated.

be employed just for the reason of having one cow. This sort of cases are not exceptions. This is proved by the GFSIS research, which says that real unemployment in Georgia is 30%, not 12%, as reported by Geostat. What could be a remedy for a societal “disease” of unemployment? How to make sure that people have jobs and live normal life? Bitter remedy that we are offered since announcement of independence comprises of the following ingredients: minimization of state intervention, privatization of public property and attracting foreign direct investments. Today, Georgia has one of the smallest Government in terms of both functionality and size, on European scale. In the past decade, Georgia has attracted billions of FDI. As for privatization, in

Georgia, like in most Post-Soviet countries, a huge volume of public assets were sold. In spite of strictly following neo-liberal development path Georgia has not yet cured such social diseases as total unemployment, poverty and inequality. Moreover, this model not only cannot heal these diseases, but on the contrary, it frequently sharpens them. Unemployment problem is an evident exapmple of this. It may be paradox, but our economic system leads our citizens to unemployment. As noted above, a major part of the employed are self-employed citizens in Georgia, who are involved in agriculture sector or other least productive economic activities. Self-employment is a mean for survival in Georgia, along with money transfers by Georgian diaspora from abroad. A major part of our population mostly depends on money transfers from abroad. For comparison, the amount of transfers in GDP equals to the agriculture sector ratio in economy, where a half of population is employed. What We Should Change: Following European Experience To change the reality, we should first set a correct diagnosis. Government should calculate unemployment level with alternative methodology. Naturally, our Authorities will not have to invent a new bicycle: EU, where Georgia strives to integrate so zealously, applies deeper alternative models for calculating employment (Labour Force Survey). Along with ILO methodology, it is necessary that Geostat register number of involuntary unemployment. In other words, to get a comprehensive picture, Georgian government should calculate

part-time workers and underemployment as well. As for problem resolution, Georgian government’s answer to these problems should be as follow: a) industrial policy and b) employment policy; Industrial policy implies substantial structural transformation of national economy through active government policies. Georgian Authorities should promote infant industries, through instruments of industrial policy, which include: creating development bank (for providing “mission oriented”, cheap and patient finances), usage of state procurement mechanism for promoting domestic production, utilizing of exports discipline instrument (fiscal stimulus and indirect subsidies for exporting companies) and so on. Secondly, Government of Georgia should develop real employment strategy. In general, employment policy is divided in two directions: a) Active Labor Market Policy: job seeking mechanisms, trainings, financed internships and so on. Objective of this policy is to activate citizens, equip them with new skills and develop the existing skills. b) Passive Labor Market Policy: this policy comprises unemployment allowances (benefits), unemployment insurance and financial and nonfinancial assistance for the period people lose jobs. Since the market cannot frequently regulate the labor process and human resources are wasted, governments plan labor market policy and the objective of this policy is to prevent wasting human resources, through providing trainings, transmitting new skills to unemployed and regulating demand-supply on labor market. EU has been actively implementing this policy and averagely EU countries spend around 2% of GDP annually. Georgian Government allocated about 4 million GEL for labor and employment policy in 2016. From that amount only 2.7 million GEL was directed to employment policy. Roughly speaking, Georgia spent 0.007% of GDP on employment policy, e.i. 285 times less than EU countries spend annually on labour market policies annually as a share of GDP. When a theory does not work, we should throw it into the dustbin. High level of unemployment, poverty and inequality, proved that neoliberal experiment has failed in Georgia immensely. Today we need to carry out real employment and industrial policy which creates jobs, instead of cultivating sophistic dogmas.


January 29, 2018 #223

distribution

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or many years distribution companies cannot resolve problems with collecting money from retailers. A part of them says that retail networks owe money to them. A special bill may be developed for bad-payer retailers, which do not pay due amounts to distribution companies. Iva Chkonia, founder of Association of Distributors, talks about the details. New regulations are to protect distribution companies from bad-payer retailers, he said. “We have been actively working with Revenue Service of Ministry of Finance and Ministry of Economy to introduce certain regulations, which will protect distribution companies from bad payers. At this stage, we are in the regime of negotiations. We have met with the head of revenue service. We are selecting various models that will be submitted to the Parliament to regulate this issue on legislative level and protect the sector”, Iva Chkonia noted. As to the model and type of regulations, Iva Chkonia said: “The model, where government will be involved in agreements, will be acceptable for us. If the agreement is not fulfilled timely, both we and the Government will impose due obligations on bad payers. Analogical models work in the world and they work efficiently. We hope similar regulations will justify in Georgia too”, Chkonia noted. Association of Distributors has been actively cooperating with the banking sector too: “ We want them to participate in the process. If the money is not paid timely, retailers’ relations with commercial banks should be restricted”, Iva Chkonia noted. As to agreement between Association of Distributors and CreditInfo Georgia, which came into force in February 2017, the member companies supply information to CreditInfo about the retailers, which delay

Are Distribution Companies Protected by Law?! payments. Number of similar companies is over 40 ones. The mentioned agreement was signed after problems emerged in distribution network and several similar companies were bankrupt because of retailers. Iva Chkonia asserts that the mentioned changes will bring results in long-term period. As to number of bad payers, he found it difficult to name the exact figure, however, according to his statement several months before, about 100 warnings were written for 5 months.

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Iva Chkonia said. Mamuka Tsagareli, founder of Alliance Georgia distribution company, explains that he does not know similar bill, but there are real problems with raising funds in the sector. The country mainly depends on imported products. Distribution companies ensure distribution of the mentioned products to the network. “At the same time, distributor’s obligation before the suppliers are secured by a bank guarantee. They always pay the due amount timely and fully, while retailers do not”, Tsagareli said. The founder of Alliance Georgia says that he will be happy if the problem is resolved, however, the government intervention in the business sector is unacceptable. The court system is to resolve the problem, namely, a valuable bankruptcy should be introduced, Tsagareli noted. «I have no information about this bill. This norm may have been included. Government is a bad regulator in business, therefore, the Authorities should introduce laws that ensure business sector freedom», Tsagareli noted. Zura Khutsishvili, director of Georgian Distribution company explains that he is unaware of the bill details, but he confirmed that distribution companies have real problems with collecting due money from retail networks. Khutsishvili has not talked about other details at this stage.

We expect these steps to bring positive results and all obligations will be paid timely

“Similar database will bring positive results in long-term perspective. People, who face problems, will have to pay the imposed obligations, because their access to finance sector will be restricted. Efficient results will not come at once. We expect these steps to bring positive results and all obligations will be paid timely. Records will be removed from the database after payments”,


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PR Person

January 29, 2018 #223

“Communication with public becomes more tradable’’ - Why did you decide to enter this field, and what opportunities does public relations give in terms of career growth? I work at GNERC for 10 years. I am a reporter by profession, currently I’m doing Public Politics Master degree at GIPA university. It’s a very interesting field and quite difficult at the same time. It’s very specific and has a huge potential of development. Regulatory Commission is always oriented people to have continuous and reliable supply, high quality service; It offers investors novelties, makes sector more attractive, thus, it supports success of the field. GNERC introduces new regulations, projects that are unprecedented in the sector. Communication with public has a huge importance there, as people are interested in business implemented by GNERC. PR definitely gives career growth opportunities, like I think every profession, where you are being a professional. Although, it’s significantly important to work on yourself constantly in PR field. - What is it necessary to hold a successful communication with public? Being open, transparency, constant connection. Always being ready for a sincere relationship. You should be familiar with the area where you work. The Commission often provides unpopular, but necessary decisions regarding tariffs. There is a lot of criticism and aggression from the public, because in most cases one doesn’t about the reasons why they have increased tariffs,they do not like the consequences of increased tariffs. In this case, we always try to provide interested people with detailed information and be very open in communication. Therefore, I think that in any situation transparent relations are important. - What three tips would you offer someone just starting out in PR? Be always oriented to develop your skills, receive more knowledge, do as much as you can, and be passionate about what you do. - What do you wish you would have known before starting your career in PR? At any stage of career development I will have

Interview with Georgian National Energy and Water Supply Regulatory Commission (GNERC) press speaker and public relations Keti Berikashvili.

an unchanged desire and an action plan -to be focused on innovation, development, and open in communication. - Describe your typical work week. My every weekday is a very busy with meetings, project planning, implementation, etc. GNERC starts a lot of interesting projects and we will share it to the public within a current year. I spend hours at GIPA because I am studying the program of public policy. - How would you go about finding relevant contacts and sources? Mostly, personal contacts. I think having contacts is one of the most important task in PR field. - How would you prioritize and start your work day? The first thing I do is to get information published in media outlets, we have morning meetings where we exchange the information and make corrections in agenda based on the latest news that we plan on the previous day. - What are the skills Public Relations Specialist need? - Many things, however, this is the short list: to be able to write well, speak up, be organized, manage time, objective assessment of events, find fault and recognition, accurate information, crisis management, ability to make quick decisions, activeness, responsibility, quality orientation, etc. - What trait do you value the most in your co-workers? - I appreciate professionalism, diligence, decision-making, responsibility, development orientedness, teamwork, loyalty to the case, frank and open relationships. I am very lucky that I’m working with above described team at GNERC. - What is the best PR prac-

tice technology can’t change? - Sincere relationships and constant work to achieve the best results. I think that when you do a particular job, it is necessary to be a fan of this case and do not carry out the project just for the calendar to be noted as the executed project. You have to put your part in the work. - What are some of the growing trends in the public relations industry? - Public relations are becoming increasingly important in the development of the organization, and in everyday life the field becomes a strategic direction. During any activity of the organization it is necessary to define communication strategy and to establish other activities accordingly. For example, just 10-15 years ago, the majority of organizations and companies paid less attention. Crisis situation management became part of PR with the organization’s CEO. It is very nice that communication with public becomes more tradable.


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Innovation

Virtual Office – Innovative Offer for Customers by REGUS Virtual Office – the space that enables businesspersons to reach and contact with partners without a real space. In reality, they have business address, an office manager in any point of the world, where REGUS business centers run. REGUS has entered Georgia and, besides many innovative products, it also offers virtual office services. Why should we choose the virtual office? The answer is that it is innovative and attainable platform. REGUS explains that its innovative nature grows demand and simplicity. Virtual office offers a package of combined services, provides a continuous monitoring of income calls and emails. Customers have access to meeting rooms with modern technologies, internet, REGUS business lounge and so on. «Virtual office is a virtual representation of the organization in a country. However, we have further expanded this concept and we have enabled our clients to do business and have legal address, post index in various countries, as well as to register a new company, use business lounge and meeting rooms. If you have a virtual office in Georgia or in any other country, you will receive a gold card and have an access to more than 3000 business lounges of REGUS worldwide», REGUS representative in Georgia Rusudan Chakvetadze noted.

Business persons, who travel a lot around the world, are able to use REGUS membership cards Business World. Owners of this card do not waste much time to choose in which hotel or cafe to buy quick Internet and workspace, because REGUS branches are reached through application. This international provider of service offices is located on Freedom Square, the most prestigious, active and dynamical part of Tbilisi (Address: Leonidze Street N2, Business Center Tabidze 1, the 4th floor) and offers demand-oriented, comfortable and ideal workspace. REGUS was founded in Brussels, Belgium, in 1989. Its head office is located in Luxembourg. The company network unites more than 3000 business centers in about 1000 cities of 120 countries. REGUS is represented at London Stock Exchange (LSE). REGUS platform satisfies the needs of all types and sizes of business. Recently repaired and accomplished A-class offices, flexible and simple payment conditions, modern and secured IT infrastructure, meetings rooms, common workspace, service by administration, access to 3000 branches worldwide – these important services create necessary preconditions for small, medium and big businesses for attaining success.

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business

10 Microsoft to Assist Georgia in Implementing Educational Projects

H&M To Open Second Store in Tbilisi

Mikheil Chkhenkeli, Minister of Education and Science of Georgia, is meeting with foreign colleagues and education sector representatives as part of his visit to London. In this case, the Ministers met with representatives of Microsoft, where the parties discussed the issue of an establishment of modern technologies, specifically, Microsoft virtual games and softwares to make the academic process efficient and interesting. “Educational computer games and softwares will enable pupils to study natural sciences through games and at the same time, acquire such skills as working in team, creative thinking and so on.

Former President of National Bank Becomes Dean of Business School at Ilia State University Former president of National Bank of Georgia Giorgi Kadagidze, became dean of business school at Ilia State University. From the year of 2016 he appears to be full professor at the university. Giorgi Kadagidze took office as a Chairman of the Board of the National Bank of Georgia on February 26, 2009, for seven-year term ending February, 2016. He simultaneously is the IMF Governor for Georgia, EBRD Alternate Governor and a Chairman of the BSTDB Board of Governors.

Telavi Wine Cellar to Grow a Vineyard by New Technology Company “Telavi Wine Cellar” will grow vineyards on 35 hectares in the microzone of Napareuli in Kakheti. The founder of Company Zurab Ramazashvili shared details with Bm.ge. “This is a historically wellknown micro zone where we receive a very good quality wine, white and red, we will do this with new technologies and new knowledge. The companies in Kakheti vineyards are based mainly on historic and ancestor experiences, and we do not consider the modern experience that this epoch has given to us. We want to use innovative ideas in variety of clone selection considering specific soil and climate conditions,”-Zura Ramazashvili said. The company owns 330 hectares of vineyards in Kakheti, 300 of them includes arbitrage irrigation systems that are fully automated.

January 29, 2018 #223

One of the world’s largest fashion retailers, known for offering fashion and quality at the best price in a sustainable way is proud to announce the opening of its second store in East Point Shopping & Entertainment City. The store is set to open in Spring 2018. In the East Point Shopping City, 2 Aleksandre Tvalchrelidze Street. More information of the store opening will be provided further on, prior to opening. H&M entered the Georgian market in autumn 2017. Today there are more than 4,500 stores worldwide in 69 markets. Through its stores and online, H&M offers a broad product range including the latest trends, and inspiration for customers to express their personal style. H&M’s stores are refreshed on daily basis with new fashion items.

Micro Greenhouse for Room Plants by GrowGrow Two months ago, GrowGrow appeared on the Georgian market, preparing micro greenhouses for room plants. Davit Dzisashvili and Giorgi Jincharadze’s Startup helps the plant grow faster at any time of the year. GrowGrow boxes are created with custom-made inventory and in addition to manufacturing-delivery, the company has individual and consulting services. Marketer had an interview with Davit Dzebisashvili: What experience did you have in business or in taking care of plants? Why did you decide to establish GrowGrow? We had no business before, although we had a lot of experience in plant care. My grandmother was a biologist, my brother too, I spent a whole life around plants and I know how difficult it is in the winter without sunlight, what kind of fertilizer they need, and so on.

There was no such product on the market, no one used Led bulbs. The idea of ​​ Georgian growbox came up in the winter when there was no opportunity to plant in normal conditions. Many people talked about this, including our friends, their friends and there was a great demand – no supply. How did you develop your idea? It was easy to say, difficult to do, although as a result of hard work, first growbox attracted a lot of people. Then, we added some other goods like: bulbs, fertilization, pots,etc. We can help any customer in any season to make his plant look better, create sun artificially, fertilize and so on. We produce it in Tbilisi, while we order bulbs from abroad. Our knowledge of creating growbox is based on data on internet, thus meets international standards.

Apple Chips Created by Georgian Students Go on Sale Apple Chips created by three students of Agrarian University go on sale. According to Nona Noniashvili, one of the founders of the enterprise, they have already entered 10 branches of Nikora Supermarket. However, 8 of which are in Tbilisi, mainly in Saburtalo District and 2 – in Bakuriani. At the same time, the company intends to bring their products in fitness centers. It should be noted, that selling of Apple Chips has been already successful at the Fitness Center “Oktopus”. Nona Noniashvili declares that they are working on increasing the productivity at this stage and they make reinvestment of money, gained from realization. The first phase of the expansion plan is linked to the mastering of whole Tbilisi. According to her, the company will be able to cope

with increased demand. Today they have one supplier, which has high quality Georgian, homogeneous apple gardens. In parallel to this, they are also working on the production of chips from other apple varieties. The start-upper also tests production of chips with other fruit-vegetables, but they want to become famous with product before expanding the range. Among target groups, special emphasis is made on children. “We tried to replace unhealthy products for children with a healthy alternative”the so-called “snack” which preserves the useful properties of apples. But, besides the children, the product is very useful for all people, including those who follow healthy food and lifestyle”, – says one of the authors of the idea.


small business

January 29, 2018 #223

Giorgi Aladashvili’s Biodynamical Vineyard in Ruispiri Grapes Grown by Herbal Extracts are more Tasteful and Cleaner LLC Irricult Ge, biodynamical farm in Ruispiri, produces biowine in the village of Ruispiri, Telavi District. The company founder and director Giorgi Aladashvili launched biodynamic winegrowing in 2014. He owns vineyards in Switzerland and Georgia. Giorgi Aladashvili has arranged vineyards on 2 hectares and plans to expand the space to 5 hectares. This is a unique experience, because the businessman applies biodynamical methods, sprays grapes without chemicals, uses extracts of boiled oak crust, willow, nettle, horse-tail, onion leaves, lily. He uses a horse as workforce. He uses harvested grapes in Qvevri to make wines by traditional method. The businessman does not use agrochemicals. In the course of time, pesticides damage vine, the wine loses its taste and pesticides also pollute soil, he said. I have studies biodynamical treatment of land in Switzerland, but our ancestors used to also use this method, while today this method has been replaced by modern industry, Giorgi Aladashvili said. Having returned to Georgia, Giorgi cultivated ancestral land plot in the village of Ruispiri and arranged vineyard there. “If the soil and vine are not strong, the vintage will fail. If a winegrower makes something invaluably and violates the chain of winegrowing, grapes lose due quality and aroma. The more naturally I grow vine without agrochemicals, the higher quality product I will receive. Many farmers think that they will not receive valuable harvest without adding agrochemicals to the soil. My objective is to prove that the good harvest may be received without any chemicals, by use of only natural and bio supplements. If a winegrower does not control soil humidity in the vineyard and does not contact with it every day, twelve spraying of agrochemicals will not bring results”, Aladashvili noted. I sell my wines in bio stores in

Biodynamical vineyards should be arranged and biowine production should be launched in Georgia

11 “I have studies biodynamical treatment of land in Switzerland, but our ancestors used to also use this method, while today this method has been replaced by modern industry”

Switzerland, he said. Currently, the company produces several varieties of wines, including 75% are sold in Switzerland. «This year we have exported our products to Switzerland for the first time. Negotiations were conducted, tasting was held and in the near future bio wines will be exported to France too. I produce about 7 000 bottles of wine a year. This is a bio certified wine – Saperavi, Kisi, Kakhuri Green, from mixed old vineyards, empowered wine. All these products are sold under the brand of BioWine. I also produce Chacha. My wine cost is at least 70 EUR in Switzerland, Aladashvili noted. The young businessman plans to activate sales on Georgian market too. This will prove Georgia is able to produce high-quality wines, he said. The young entrepreneur explains the advantage of biowine in this way - «I can explain this very simply – I will offer pills with the taste of barbecue and I will also offer genuine barbecue – which one will be more tasteful? Grapes

grown on grass extracts are more tasteful and purer». In his interview with the Caucasus Business Week (CBW), Giorgi Aladashvili also unveiled future plans and noted that he is building a new wine cellar near his vineyard, as a part of Ruispiri Biodynamical Vineyard, which also unites grain fields, Kakhetian pigbreeding farm and beekeeping. Wild fruit jams, dried fruit and Churchkhela are also made here, he noted. Aladashvili says that Georgia owns huge potential for development of winegrowing and winemaking. As to Qvevri wines, it is beyond competition on domestic and international markets. This sort of wines are indemand products worldwide. «Biodynamical vineyards should be arranged and biowine production should be launched in Georgia. They make good-quality products, but similar products are met in huge volumes worldwide. Qvevri wine is our key advantage and Georgia should develop this direction», Aladashvili noted.


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publicity

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January 29, 2018 #223

world

13

Armenia to raise level of transparency in mining industry

Turkey sees nearly $4.5 billion EU investment during January and November 2017 Turkey received nearly $4.5 billion equity investment from the European Union between January and November last year, marking a 64.3 percent rise year-on-year, the Economy Ministry said on Jan. 23. In terms of equity investment, direct inflow from EU countries amounted to 68 percent of the 11-month inflow to Turkey - around $6.6 billion in total. According to the ministry’s figures, the Netherlands ($1.64 billion), Austria ($306 million) and Germany ($241 million) were among top sources of capital inflow. Over the same period, the financial intermediation sector received the highest amount of international capital, with $1.43 billion, followed by the transport/communication/ storage sector, with $1.2 billion. The manufacturing sector and electricity/gas/ water supply sector received $1.11 billion and $933 million inflow, respectively. From January to November last year, net foreign direct investment (FDI) in Turkey stood at $9.82 billion, compared with $10.85 billion of FDI in the same period of the previous year - a 9.5 percent fall. A total of 5,145 new foreign-backed companies were established in Turkey, including 55 branch offices, while 187 domestic companies benefited from overseas participants in the period of January-November 2017. As of November, more than 58,000 companies with international capital are operating in Turkey, of which 38 percent are linked to EU member states.

Global Energy Solutions starts its next project for BP Azerbaijan Global Energy Solutions (Glensol) entered into next project for BP Azerbaijan to provide electrical & instrumentation services in the Azerbaijan-Georgia-Turkey (AGT) region. Glensol’s services will cover Sangachal Terminal, BTC and WREP oil export pipelines onshore and 7 BP platforms offshore. The project scope includes execution, service, installation, commissioning, modification and inspection services designed to maximize uptime and optimize assets life cycle. Duration of the project is 3 years with possible extension up to 2 years. “By obtaining the second major project for BP within last two years, Glensol has proved itself as being one of the best in class local companies in the region,” said Tamerlan Aliyev, General Manager of Glensol. “We are currently developing our business activities overseas, in particular, our expansion to Kazakhstan gives us an opportunity to demonstrate our local expertise in the foreign market. We are very proud to be at the leading edge in provision of word class services while representing our country on an international level,” concluded Tamerlan Aliyev.

A draft law providing for a string of amendments to Armenia’s Subsoil Code, the Tax Code and the Code of Administrative Offenses, submitted to the government’s consideration today, is supposed to raise the level of transparency of companies engaged in the use of subsoil and extraction of minerals. “The purpose of the proposed amendments is to synchronize national and international legislations and ensure that our standards are compliant with the Extractive Industries Transparency Initiative (EITI) standards,” energy infrastructure and natural resources minister Ashot Manukyan said. The minister explained that these standards envisage annual reports on governmentgranted licenses for the use of subsoil, volumes of extraction, tax revenues and other mining-related information. The proposed amendments set fines for violating of the requirements. Thus, for failure to meet the deadline for submitting a public re-

port to the government and authorized bodies, responsible officials will be fined to the tune of 150,000 drams. If the company does not submit a relevant report within 10 days after the imposition of the fine, the responsible officials will already be fined in the amount of 200,000 drams. For a repeated violation of the requirement within one year, the fine will surge to 300,000 drams,” Manukyan said. Armenia applied to join the EITI in 2016. In March 2017 the country was given the status of a candidate country. The Extractive Industries Transparency Initiative (EITI) is a worldwide standard that enhances revenue transparency and accountability in extractive industries. The EITI has a reliable and flexible methodology for monitoring and reconciling data on company payments and state revenues from oil, gas and mineral extraction at the country level. Each implementing country creates its own EITI process tailored to its specific needs.

Microsoft had to restrict sales in Russia because of US sanctions

Visa Names Andrew Torre Regional President for Central and Eastern Europe, Middle East and Africa Region Visa Inc has announced the appointment of Andrew Torre as Regional President for its Central and Eastern Europe, Middle East and Africa (CEMEA) region, based in Dubai. Torre, who previously led Visa’s Sub-Saharan Africa business, will now oversee all of Visa’s operations in more than 90 countries across CEMEA and report to Visa’s global president, Ryan McInerney. Torre will also sit on Visa’s global Operating Committee. Torre is a Visa and payments industry veteran, with deep experience across the markets that comprise Visa’s CEMEA region. Having previously worked with the World Bank in Kiev, Moscow and CIS territories, Torre has been with Visa since 2002, holding global roles in product, strategy and pricing, as well as general manager roles in Russia and Sub-Saharan Africa. “Andrew’s deep experience, which touches every part of our CEMEA region, has prepared him well for his new role. It provides him with a phenomenal understanding of both Visa’s global operations, as well as the markets that make up this fascinating and complex region. This will not only benefit Visa and our financial institution clients, but also add tremendous value to our merchant and government

partners as we strive together to bring the benefits of connected, digital commerce to more people in the region” says Ryan McInerney, President, Visa Inc. He adds; “We are doubly proud and excited that the world-class executive we needed to bring into this role came from our own in-market ranks. This is testament to the value we place on hiring the best people, and helping them develop into the best they can be.” Visa’s mission is to connect the world through the most innovative, reliable and secure digital payment network that enables individuals, businesses and economies to thrive. “Nowhere is our mission more important to economic growth and prosperity than in the CEMEA region,” says Torre. “By 2020, we estimate that around 25 percent of the world’s population will live in this region, and those consumers will be young, technology savvy, and hungry for financial services that are more relevant and accessible to them. This opens up exciting opportunities for us to service those future consumers through innovative, mobile technologies that Visa is deploying, right now, in market, in anticipation of future consumer needs.

Two of Microsoft’s official distributors in Russia have imposed restrictions on sales of Microsoft software to more than 200 Russian companies following new U.S. sanctions, according to notifications circulated by the distributors. While much of the focus around U.S. sanctions has been on ways they are being skirted, the moves by the Russian distributors show how tougher restrictions that came into force on Nov. 28 are starting to bite. The new measures cut the duration of loans that can be offered to Russian financial firms subject to sanctions to 14 days from 30 days and to 60 days from 90 days for Russian energy companies on a U.S. sanctions list. Previously, the restrictions had mainly affected Western banks lending to Russian firms but with such short financing periods, swathes of companies supplying goods and services to Russian clients fear they could fall foul of the rules too. It is routine in Russia for suppliers to wait weeks or even months to get paid after submitting invoices for goods and services. Some Western firms have been advised by lawyers that the U.S. Treasury Department could, in theory, take the view this constituted financing in violation of the sanctions, according to several people involved in the discussions. One of the two Microsoft distributors, a Russian company called Merlion, said in its notification to partners that all sanctioned buyers of Microsoft licenses must pay within tight deadlines, or even pay upfront in some cases. The second distributor, RRC, said in its notification, seen by Reuters, that “serious restrictions are being introduced” on Microsoft orders from firms subject to U.S. sanctions.


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publicity

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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

LimelightTravelinfoCenter 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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January 29, 2018 #223


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