Caucasus Business Week #296

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September 23, 2019 -




Electricity Consumption to double in 2020-2030

p.6 p.7 p.5

Vocational Education and Employment in Georgia

Changes and Risks to сome from the Revision of the Universal Healthcare Funding Mechanism

Peru’s Ambassador in Georgia: Branding makes Tourism’s Potential Usable


The Petromidia Refinery of the Company Rompetrol is celebrating 40-Years Anniversary

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IMF Staff concludes Visit to Georgia

Electricity imports Grow by 20%, Exports decline by 59%

An International Monetary Fund (IMF) team, led by Ms. Mercedes Vera-Martin, visited Tbilisi during September 11-17, 2019 to discuss recent economic and financial developments and progress with the structural reforms. At the end of the visit, Ms. Vera-Martin issued the following statement.

Electricity System Commercial Operator (ESCO) has published a final report for the month of August. According to this report, electricity imports in August made up 119.17 million kw/h and exports constituted 0.08 kw/h.

Anaklia Consortium introduces 2 Major Investors

Azerbaijan and Georgia Parties discuss Transport and Energy Projects of Global Importance Director General of the Georgian Railway Davit Peradze paid a visit in Azerbaijan on September 17-18 with the Minister of Economy and Sustainable Development of Georgia Natia Turnava and her deputies.

Anaklia Development Consortium abstains from commenting on confidential discussions that was held with the Ministry as part of the ordinary bilateral communication between the Parties. The Consortium has spread the following statement.

Volume of Properties seized by Commercial Banks decline The value of properties seized by commercial banks made up 177.9 million GEL in July 2019, the Finance Sector Report by the National Bank of Georgia (NBG) reads.

Giorgi Gakharia: Principle of Bureaucratic spending Reduction will be Strictly controlled The 2020 budget should be primarily focused on the citizen, – Prime Minister Giorgi Gakharia said at the government session.

New Owner of Wind Power Station to pay 17.5 million USD to EBRD 29.7 million USD was spent on building a wind power station and the Government plans to sell the asset for 14.2 million USD.

Money Transfers rise by 7.8% Countries with Major Contributions According to the National Bank of Georgia (NBG), money transfers to Georgia in August 2019 made up 146.4 million USD (428.5 million GEL), up 7.8% (+10.7 million USD), compared to the same period of 2018.

Several Companies are interested in building Aerodrome on Goderdzi Resort - Tornike Rizhvadze "Investment terms for building aerodrome on the Goderdzi resort are being prepared", declared Tornike Rizhvadze, chairmen of the Government of the Autonomous Republic of Adjara.

Kartli Wind Power Station put out for Auction Kartli wind power station has put out for auction at 14.25 million USD. The public auction was announced by Georgian Energy Development Fund and Georgian Oil and Gas Corporation (GOGC).

The Editorial Board Follows Press Freedom Principles Publisher: LLC Caucasian Business Week - CBW Director: Levan Beglarishvili WWW.CBW.GE Address: Aleksidze Street 1 Sales: Mob: +995 591 01 39 36 Email: Editor: Nutsa Galumashvili. Mobile phone: 595 380382 Copy Editor: Ellie Rambo Reporters: Nina Gomarteli; Mariam Kopaliani; Merab Janiashvili, Economic columnist: Andria Gvidiani; Technical Assistant: Giorgi Kheladze;

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Electricity Consumption to double in 2020-2030 Energy security and hydro resources, annually growing electricity consumption statistics, and growing electricity imports; how should the country promote domestic power generation, and why does Georgia fail to make good use of its huge hydro resources? Giorgi Abramishvili, executive director of the Georgian Renewable Energy Development Association (GREDA) noted on the Business Partner TV Program that the growing state economy makes the power sector problematic, and the situation will become dramatic by 2025. As a result, Georgia’s dependence on neighboring countries will increase. This summer Georgia has, for the first time, imported electricity. Today, we have a different situation in the country. Previously, the power deficit was recorded only during the winter, while in the summer period the country has excess power generation, as a rule. However, now Georgia’s dependence on neighboring countries is growing, Giorgi Abramishvili said. “Economic growth requires more and more power generation, but, on the other hand, this power deficit continues to grow at a high pace, and our dependence on neighboring countries also increases, including, dependence on politicized markets, ignoring the principles of a market economy”, Abramishvili said. Today, Georgia’s electricity consumption makes up about 13 billion kw/h. According to pessimistic, optimistic and realistic forecasts, electricity consumption will increase to 20-26 billion kw/h in 2020-2030. Consequently, consumption rapidly grows in the summer, too, as a result of tourism sector development, Giorgi Abramishvili pointed out. “We have more hotels, more air-conditioning systems. In the summer, we had excessive electricity and in winter, the system was deficient. Now, the situation has changed. Over the past several years, our steam power plants have worked in the summer period, too. Steam power plants mean a dependence on neighboring countries, because we do not have our own natural resources, and we have to import natural

gas. But this year, even the steam power plants could not generate sufficient power, and we had to begin importing electricity”, Giorgi Abramishvili said. Georgia is a country of hydroelectric resources, and it should valuably employ its own potential. Major investments should be made in alternative energy. These steps cannot bring radical changes, and hydro’s power potential cannot be replaced, he said. Georgia’s electricity consumption will double in 2020-2030, and the volume will hit 20-26 billion kw/h. Therefore, Georgia’s energy dependency will increase, whilst the country employs only 20% of its hydro power resources, Abramishvili noted. “If the country manages to employ the remaining 80% of these resources, the country will not only replenish the deficit, but it will also earn 1 billion USD a year in addition. We have made the calculations, and if we employ this 80%, our power generation will hit 50 billion kw/h, that is, we will generate twice as much electricity compared to the forecast consumption in 2020-2030. This means that we will be able to satisfy domestic demand, and export 25 billion kw/h, and earn an annual 1 billion USD (about 3 billion GEL). This is a very impressive figure for a small country, Giorgi Abramishvili noted. Implementation of hydro power projects in regions is hampered by environmentalists, on the one hand, and local residents, on the other hand, because they cannot realize the benefits that the employment of hydro resources can bring. Communication with the local population should be carried out through a large-scale communication strategy. Social situation shapes a pitiable reality and serious problems. The government should develop a largescale communication strategy, and this communication with local residents should be carried out on all levels, Abramishvili said. “We should not treat the issue like firefighting, but we should spotlight benefits of our projects”, Giorgi Abramishvili pointed out. Sometimes, environmentalists stage provocative protest rallies, he noted. “On the other hand, it is very important, and we have

reiterated frequently that, regretfully, because of certain doubts, our neighboring countries may be fostering our energy dependency on them. Therefore, we should provide better jobs in this field, too, to prevent provocations. First of all, we talk about renewable resources. In the case of hydroelectric resources, the so-called Greens noted several times that Thermal Power Plant will save Georgia. Consequently, this means that our dependence on neighboring countries will increase. And it is not disputable that Thermal Power Plant are the most harmful source of power generation”, Giorgi Abramishvili said. The GREDA Executive Director says that the country should find alternative energy sources, but there is no alternative to using Georgia’s hydro resources, because hydro resources can generate the cheapest and most stable electricity, he said. “Naturally, we should use all sources of alternative energy, but there are several preconditions that prioritize hydro resources. The price is the first. We spend the least amount of money on renewable energy development compared to eastern European, European or Post-Soviet countries, excluding Russia and Azerbaijan, which possess their own energy resources. If we want to tackle social problems, we should remember that hydro resources are the cheapest , and solar power is the most expensive resource. Another problem we face is that wind and solar energies are the most expensive resources. Moreover, wind and solar powers are an unstable and less foreseeable resources. Its efficiency is low. Therefore, it is impossible to ensure that state energy independence based on these sources. The main thing is that the country must have reserves of power, such as steam power plants and hydro power plants, with cascades and reservoirs. We can save the power generated by HPP cascades, and this is impossible in the case of wind and solar power stations. Georgia is a country of hydro resources. We do not have huge hydro power resources, but we should fully make use of them”, Abramishvili said. Photo/1TV

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Peru’s Ambassador in Georgia: Branding makes Tourism’s Potential Usable What is the potential to develop GeorgiaPeru trade and economic relations, and which fields may be selected for cooperation? The Peruvian Ambassador in Georgia, Marias Milagros Castanion Suane, has talked about these issues for the TV Program BusinessPartner. Georgia and Peru can cooperate in the field of tourism, and both countries can share their experiences with each other and both countries can expand trade and investment, the Peruvian Ambassador in Georgia noted. I have arrived in Georgia to harmonize our interests, first of all, in the tourism sector. To this end, I will meet with Georgia-based tour operators for several days, she noted. Marias Milagros Castanion Suane also considers the possibility to spur trade and investment. She will discuss current potential opportunities for Georgian entrepreneurs at a special dinner, she noted. “Peru has developed diverse tourism activities in South America, and Georgia also has this potential. I believe Georgia and Peru have to provide close cooperation. Our countries are located far away from each other, but we can try our best. This week we will hold a lunch with

tour operators. At dinner, we will also meet with several entrepreneurs to introduce Peru’s investment and import-export opportunities. We also want to introduce ongoing projects under the PPP format’, the Peruvian Ambassador noted. The entrance visa is not a real problem, and Georgia’s success in harmonizing with the EU will simplify relations between Georgia and Peru, she noted. “I know that you have moved to the next stage of relations with the EU and this is good . Peru is passing this same phase. Consequently, I believe that when you pass this phase with the EU, it will be easier for us to take the same steps in our relationship with Georgia. In my opinion, despite the fact that you started international economic development earlier than Peru, both countries strive towards the same goal. We have free trade agreements with the EU, Canada, Mexico, Japan and Spain. There are a lot of ways to come to Peru”Marias Milagros Castanion Suane noted. Georgian diplomats should be trained in how to introduce their countries as attractive tourism destinations. In order to make full use of a country’s tourism potential, branding is of crucial importance, as well as an expansion of its international reputation. To this end,

Peruvian diplomats pass special training courses, and it would be excellent if ourg Georgian colleague also share this experience, the Peruvian Ambassador said. “The more important issue for tourism operators is how to brand our country as a tourism destination. In this respect, we have a very active agency, but it does not have representations in all countries. We have similar representations in Moscow and Turkey, but not in Georgia and Azerbaijan. I represent this agency here, and all of us have passed these trainings in how to introduce Peru as an attractive tourism destination. I believe it would be wonderful to hold similar training sessions for your diplomats. In this respect, your country needs branding. We love our brand, and we wear T-shirts with this brand. This strategy enabled us to introduce Peru everywhere as a tourism destination. I like that you place photos on screens, but you can do a lot of other things. Peru offers many other interesting things to tourists. Consequently, there are a lot of directions to go down where we can cooperate, including in the tourism field”, the Peruvian Ambassador noted. Photo/1TV

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Vocational Education and Employment in Georgia Should we expect a revolution of skills in Georgia? How does the private sector contribute to employment growth? What is the government’s role? Who bears responsibility for the high rate of unemployment, and why do western colleagues suggest we strengthen vocational education? – Irina Tserodze, head of the Education Ministry Department for Vocational Education, talks about these issues for the BusinessPartner TV program. Starting in 2020 our young people, upon turning 18, will be able to graduate schools into specific professions and find job places, Irina Tserodze said. To this end, the government plans to make vocational schools available all over Georgia, in all the municipalities of the country, Tserodze pointed out. Vocational component runs in 40 municipalities, but there are municipalities without even private providers of vocational education. Therefore, in September-December of 2019 and through 2020, we will cover all municipalities. The Ministry has prepared several models in this respect. The Department will use resources of partially-filled schools, or those with too much space to launch even small vocational programs for pupils, Irina Tserodze noted. “I believe it will be a very attractive offer for pupils to acquire vocational professions in the 10th, 11th and 12th classes along with the public school’s general program, and learn at least one vocational profession. This is a unique opportunity for all parents and pupils. In this way, the government will not spend money on building a new college. We plan to more efficiently distribute these resources and receive efficient results. Starting in 2020, all school graduates, upon turning 18, will have at least one vocational profession, and they will easily find jobs”, Tserodze said. Today, the international labor market recognizes Georgianissued qualifications. The government’s reform programs prioritize making Georgian citizens competitive both in Georgia and abroad. Low qualifications are one of the key reasons behind unemployment, and the government program’s aim is to deal with this problem, Irina Tserodze pointed out. “The key objective of the reform is to make our workforce competitive both in Georgia and abroad. The current reforms are based on labor market statistics, under which we have 1,600,000 employed citizens, both self-employed and hired, and only 700,000 have finished the public school course in full. This means that our citizens do not have professions, do not possess the modern skills required for employment and this is a key reason why employers complain about the absence of a highly-qualified and skilled workforce,” Tserodze said. The government has prepared a very efficient system for training these low-qualified adults. After a two-year course, the participants receive internationally-recognized certificates, she noted. “This category needs quick training courses, but it is impossible to learn new professions and acquire new skills in so short a period. Therefore, the government has introduced a unique system for his category. This system is oriented towards quick employment and geographical

attainability. Today, a two-year free vocational schools operate in all regions of Georgia. Moreover, absolutely free of charge, citizens of Georgia are able to go to fully-funded colleges or private legal entities, for any profession, including 2-month, 3-month or 6-month courses. The government will fund all schools that issue state certificates”, Tserodze explained. Under the new framework of national qualification, Georgiaissued certificates are recognized on the international market, she said. ‘We talk about the new framework of national qualification that was enforced in March 2019. This means that Georgiaissued certificates are recognized on the international market. Today, in Germany or any other country, if an employer decides to employ a Georgian citizen with a new diploma, the confirmed qualification will have equal respect with the diploma of the employer country”, Tserodze noted. Starting in October 2019, the company engaged in so-called dual vocational education, which will independently decide whether to take a student for a production practice or not. Students will not have to take additional tests, Tserodze specified. As commonly understood, the so-called dual vocational education system based on practice for blue-collar work was introduced two years ago to assist employers in training desirable staff, and to simplify employment opportunities for graduates. Tserodze noted that two years ago, about 6 companies engaged in dual programs, and today 50 companies have joined these programs, because the private sector has realized the importance of similar vocational education. Starting in October, the relevant companies will have more independence in selecting students, she added. “We have a new addition that will for the October team, when the registration will be announced. Namely, employers will be granted wider autonomy in the process of selection of students. Previously employers were to select students, and then students had to pass certain tests, but this year we have started to allow employers to enjoy full autonomy in selecting students, and the students will not have to pass tests”, Tserodze explained. In the vocational education program, employers will be engaged in 2 forms – engagement in dual programs and training courses, she pointed out. “Based on the needs of employers, they will engage in vocational educational program in two forms: dual education and training programs. Any legal and physical body will be able to implement short-term training courses, and get state funds. They should just obtain a license, and after that, they will receive state-recognized certificates, and the owners of these certificates are entitled to use document in two ways: continue their studies, or use this document, which will be recognized both in Georgia and abroad”, Irina Tserodze said.


“Starting in 2020, all school graduates, upon turning 18, will have at least one vocational profession, and they will easily find jobs."

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Changes and Risks to come from the Revision of the Universal Healthcare Funding Mechanism The government of Georgia plans to revise the universal healthcare funding mechanism. Ekaterine Tikaradze, Minister of Health and Social Protection, noted at a meeting of three parliamentary committees that the Health Ministry plans to equalize the existing tariffs of the universal healthcare program for all clinics. Despite the universal healthcare program’s enforcement, each patient has to cover 20%-22% of the total costs and the private sector’s profits exceed 35%, she noted. “The government has been spending significant financial resources since 2013, but these efforts are not sufficient, and patients have to cover a significant part of the costs. Over the past 7 years, the universal healthcare program has financed patients with more than 3 billion GEL. Since 2013, more than 2.4 million people have used the program’s funding and, on the whole, 6.7 million treatments were funded. Despite these efforts, patients had to cover 20%-22% of total costs, while the private sector’s profits exceeded 35%. These indicators prove that systemic changes are required. Therefore, we have taken the decision to revise the funding mechanism, and purchases from the state budget will be carried out by implementing tariffs, and the universal healthcare program’s tariffs for all clinics will be unified. This is an approved practice in pricing that ensures market regulation and quality. This system will become the joint standard all over the country,” Tikaradze noted. The Ministry plans to work on partial regulation of the price of medicine, and start the partial regulation of pharmaceutical market products to help implement pricing, she noted. “There is no practice of regulation in the country. We plan to introduce admittance and registration of pharmaceutical products, requirements and methodologies established in international practice, make the GMP (Good Manufacturing Principle) practice obligatory for pharmaceutical manufacturing, introduce the GDP (Good Distribution Practice) for importers and the wholesale distributors of pharmaceutical products, license all types of pharmacies (retailers), introduce a pharmaceutical supervision system, inspect the pharmaceutical market, enhance administrative mechanisms, shape and develop pharmaceutical products quality control laboratory”, Ekaterine Tikaradze noted. The Caucasus Business Week (CBW) has inquired how the parliament and the private sector appraise these initiatives and whether a revision of the universal healthcare funding mechanism may generate certain risks. Akaki Zoidze, the head of the parliament’s Health and Social Issues Committee, noted that this initiative does not require legislative amendments. Changes are required only in government resolutions, he said. These initiatives will bring painful effects to some private clinics, he added. “Everybody works to make profits, but not at the expense of medical service quality and a patient’s health and quality of life. This is the argument of the authorities”, Zoidze pointed out. He abstained from specifying details, but noted that the 2016 pre-election program of Georgian Dream discussed at length just and impartial funding principles in a universal health program. This method exposes what resources are employed in this or that medical operation and prices are determined only after that, Zoidze said. “Clinics have set absolutely different prices for the same operations. The price of an appendicitis operation in one clinic was 1000 GEL, but in another clinic – 3 000 GEL, while the operation requires the same human resources and materials. Therefore, state regulations are important when the private sector dominates. Previously, the government used to take into account existing prices, and now prices will be standardized”, Zoidze said. Anzor Melia, founder of GULI cardiologic clinic, welcomes the revision of universal healthcare funding mechanisms. Clinics set different prices for the same operations. Prices should be stabilized, and this does not mean that the state’s interference in private business, Anzor Melia noted. ‘State interference in the private sector means that when the government obliges the business sector to fulfill impossible things. For example, I have received information that a clinic must keep 900 liters of water reserved for one bed. This means that a clinic will need a 70 ton reservoir. This is impossible”, Melia said. If the Ministry and Parliament regulates prices, this would lead to very good practices, he added. “Today, the GULI clinic maintains old prices, despite everything rising in price and the GEL’s depreciation”, Melia noted. Kakha Okriashvili, founder of the PSP pharmaceutical company, explains that medicine prices are low in Georgia. 90% of medicines are imported from Europe, and the country pays EUR and USD for them, and therefore medicines prices in GEL become expensive for citizens of Georgia. Regulations promote the business sector, and ensure good prices. The country should develop domestic pharmaceutical production, and make a breakthrough in this respect, Kakha Okriashvili said. “For example, Belarus subsidizes its pharmaceutical market at a rate of 60%, and the prices of domestic medicines are affordable. If Georgia introduces health regulations in compliance with the EU’s best experience, we will only welcome”, Okriashvili noted. When considering that medicines in Turkey are cheaper than in Georgia, Okriashvili noted that about 70 medicines are genuinely cheaper in Turkey thanks to the domestic pharmaceutical industry, Okriasvhili noted. “About 10 major and very good pharmaceutical enterprises are running in Turkey. In due time, they were boosted by the government of Turkey. In about 30 years, we should also have similar breakthroughs, and this problem will be resolved forever”, Okriashvili noted. As for the profits of pharmaceutical companies, currently annual profits of this sector are at 4%-8%, he added.

Irakli Margvelashvili, Executive Director of the Association of Pharmaceutical Companies, explains that state regulations of prices may bring certain risks. At this stage, we do not have detailed information about steps and action plan on how the government will regulate medicines prices. We should know that there are various types of price regulations, including the fixation of the supply tariff. Georgia is an importer country, and we import about 85% of our medicines from abroad, and the price depends on the GEL exchange rate against the USD and EUR. There is also regulation to determine the margins of extra prices. This is called direct price regulation, he noted. At this stage, the Georgian pharmaceutical market stays liberal, and prices are not regulated, but over the previous period medicines prices rose in the GEL, and this trend has seriously affected ordinary citizens, and the issue requires due regulation, he said. Prices are regulated in many countries, but this regulation is not practiced in the USA, which holds 40% of the global pharmaceutical market. Consequently, when talking about other experiences, we should make comparison with countries with similar health and pharmaceutical markets, Margvelashvili said. “If we make comparisons to Germany, Czech Republic or other countries, this will be an unequal comparison, because they have different structure of medical insurance, and the market structure is also different. We should make comparison with neighboring countries. Prices were regulated in Russia and Azerbaijan, and they received disastrous results. Namely, a lot of medicine disappeared from their markets. These countries introduced regulations without consultations with the private sector;therefore, price regulation is a risky affair”Margvelashvili noted. The Georgian pharmaceutical market has a very unique structure, with some legislation that was introduced in 2009. In thissituation, each regulation needs a deep analysis to determine the results. We should appraise risks and, if it is necessary to introduce new regulations, these regulations should be applied to only a small group of medicines, namely for medicines against chronic diseases, he noted. “It is a very risky decision to apply new regulations to all medicines. This decision will eject certain groups of medicines from the market, and they will be replaced by low-quality analogues. Moreover, the Black Market will be activated and this is a hazardous trend in the case of medicine. When the country illegally imports products, medicines are the most sensitive items in terms of imports/storage/transportation. All these three components represent serious risks, and may seriously harm the health of patients. To prevent these risks, we should comprehensively and scrupulously explore this issue and consult on it with all participants and chains in the healthcare system”, Margvelashvili said. According to Russian media agencies, a catastrophic situation has arisen in Russia in terms of the supply of medicines. Namely, medicines have been disappearing from the Russian market. Doctors have already made a list with more than 700 medicines that disappeared from the market, including medicines of vital importance. According to Moskovski Komsomolets, the Russian authorities boast of price regulations, but domestic and foreign pharmaceutical companies have stopped imports and distribution of medicines in the country. Pharmacies and hospitals in Russia lack medicines. In 2019, more than 30% of state tenders failed. In the regions, people lie without insulin, anti-rabies and other necessary medicines. More than 4,300 tenders of a previously announced 13,000 failed in Moscow. In the case of insulin, 2,800 tenders were announced, and 628 failed. In thecase of anti-rabies vaccine – 573 state tenders were announced and 429failed. DSM Group analyst Sergey Shuliak says that low prices are a precondition for the failure of tenders, because companies abstain from participating in similar tenders. Pharmacies also face problems – various popular and vital medicines have disappeared from networks, including well-known hormonal medicine Prednizolin for AIDS patients has disappeared. Under the new regulations, prices may be revised insignificantly by only several percentage points, only once a year. Consequently, the final price turns out lower, when compared to the prime cost. Over a certain period, manufacturers and importers managed to continue working in the usual way, but in vain. According to experts, about 700 key medicines have disappeared from the Russian market. “This is real catastrophe. At this stage, pharmacies still use the existing reserves, but in April 2020 we will have real misfortune, if nothing changes”, expert Elena Grigorenko said. Not only separate medicines, but whole categories and groups of medicines are disappearing from the market – in all prices, domestic, imported, analogues, and without analogues. A lot of manufactures abstain from entering the Russian market because of excessive regulations and bureaucracy, she said. “How long should our patients suffer from these regulations? When will the government realize that to reach an optimal norm – we should recognize registrations from the EU and the USA, and medicines sales will become available in Russia”, Ekaterina Chistikova, head of one of the charity foundations, noted. According to DSM Group reports, over the past few years, sales of packed medicines have also declined. The slowdown over six months of 2019 made up 3.9%. The situation worsened at once because of new regulations to result in price revisions. Namely, the new regulations call for lowering the price of generics. As a result, many companies have left the market.

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Madlena Manusachyan: "There is no ReadyMade Formula in Marketing" Interview with Head of Sales and Marketing Department of Hotel Chain “Mgzavrebi”, Madlena Manusachyan. Tell us about how you got into the field of marketing, and what factors played an important role in choosing this profession? I did my masters degree in foreign languages, majored in English language and literature, I worked with my specialty for a very short time and then decided to try my luck in sales as I love communicating with people. I went through many marketing and sales courses, and I realized I was interested in this field. ‘’Mgzavrebi’’ brought gave me an opportunity to gain experience and develop myself in this field. What challenges do you face as a head of marketing in the background of technological changes? The construction and tourism industry (the two main directions of our company) is booming. Technological developments affect most marketing campaigns. The main thing is to keep up with the pace and innovation. There are areas where you have to go beyond the framework. And even more important is the right communication with the customer, good quality service delivered throughout and after the decision. It’s necessary, every aspect of the company to be involved. What has changed in the field in the last 5 years, and what changes are expected? This field is changing so fast that there is no ready-made formula that is constantly working and everything we knew before is gradually useless. As for change, in Georgia and perhaps in the world, Digital marketing and social media have become more demanding and priority. What do you think are the most important traits a marketing manager should have, and what is his or her role in the organization in general? Marketing is a user-oriented field, so the marketing manager must be able to listen to the customer, to offer her company's product as accurately as possible, which requires a very good knowledge of this product. One also

must be capable of creative thinking and be sociable, be ready to constantly develop and learn. What are you doing to help the organization keep up with new trends and use innovative approaches in the field of marketing? I am constantly studying, getting acquainted with relevant literature, listening to successful people in the field, attending various training and seminars. In addition, feedback from the customer is very important, which dictates what needs to be changed. What’s your organization’s business model regarding PR and marketing? The market is becoming increasingly demanding, competition is high and only a satisfied customer is the guarantee of constant work, profitability and success - this is what we pay attention to. One word that describes your job.

Interesting. The most useful advice you’ve ever received in your life? "Get all things you begin done" - this advice received as a kid, turned out very helpful for me, that was probably about something very basic back then. I realized, leaving a job in the middle is a waste of time, that you’ve already spent on getting started and to only focus to finish, doesn’t mean getting it done. Therefore, you should do always stay on top of quality. Think of a person who inspires you, professionally. Naming one person, in particular, is hard. I was lucky and always got to work with very high-level professionals, which is a great motivation for me. Inspiration probably comes from successful companies, rather than specific people.

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Business News

Nika Gujejiani Scholarship established to study at Miami Ad School

vintage coordinating headquarters. NDI: 90% of Respondents over 40 Years Old have Left Pension Scheme

Bank of Georgia has established a Nika Gujejiani Scholarship to study at Miami Ad School.From now on, every year, one Georgian student will get the chance to study at Miami Ad School Europe with full funding. The scholarship is for those who have interesting ideas and are looking for opportunities to get creative education and experience. Those who win a scholarship will be able to study Art Direction, Copywriting or the Creative Technology at 2-year portfolio program.

NDI has published the public survey report, under which 90% of the respondents over 40 years old have withdrawn from the contributory pension scheme. Advertisement about Georgia became Winner on ATWS On Adventure Travel World Summit the majority of votes were given to Georgian-based advertisement. The video took first place. tended by Partnership Fund executive director David Saganelidze, the Fund representatives, medical sector representatives and the winner project authors. Kutaisi International University to receive 1 billion EUR “By decision of Bidzina Ivanishvili’s family, more than 1 billion EUR will be invested in Kutaisi International University development. This is an unprecedented investment in education field”, Kutaisi International University principal Aleksandre Tevzadze noted.

Business Awards 2019 returns with updated Format and Nominations

Batumi hosts Workshop: How to create Innovative Business Models

Business Awards 2019 returns with updated nominations and a new format. For the fourth year in a row, TBC has successfully run the largest business awards in the country with the aim of establishing a business forum and promoting business.

Daily Grape Processing hit the Record in Kakheti

On October 5 at the Batumi Shota Rustaveli state university will be held a workshop “How to create an innovative business model”. It’s based on the methodology of the worldwide bestseller book “Business Model Innovation” by Alexander Osterwalder and Yves Pigneur. Knowing and using this methodology is very important and crucial in the modern business world.

“According to last day's data, daily grape processing volume in Kakheti has reached 9,000 tonnes, which is the record high of almost 30 years. About 70, small, medium and large wine cellars were involved in the processing of grapes. Vintage Coordination Staff members are mobilized to prevent large queues with enterprises in such high processing conditions. In the case of large flows of machines with wineries, organized machines are being redirected to nearby enterprises, ”say the

Agreement signed between Silknet and Euronews to launch “Euronews Georgia” 18th September 2019 – After announcing the signing of an MOU in July, Euronews and Silknet, Georgia’s leading telecommunications company, have signed an agreement to launch Euronews Georgia, a news channel and digital platform aimed at a Georgian-speaking audience. Georgian Startup launches Production of Medical Textile Partnership Fund has held a presentation of its new winner project DR. GOODS. The presentation was at-

European School launched in Georgia On 16 September, the EU, together with the Government of Georgia, launched the European School in Georgia – the first European School outside EU borders.

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11 September 23, 2019 #296

The Petromidia Refinery of the Company Rompetrol is celebrating 40-Years Anniversary “Petromidia” refinery - one of the largest and most modern refineries in SouthEastern Europe and Black Sea region – supplier of Rompetrol, is celebrating 40 years since its foundation. Celebration events were held in Navodari, Romania, hosting press representatives and other special guests from 11 countries. The company summed up the results of the company’s work of 4 decades. They also awarded those employees who significantly contributed to the development of “Petromidia.” In the event, local and foreign guests attended a presentation and a press conference. The media tour was held at the refinery, sea terminal, and operation office as well. The day was culminated by the grand event hosting around 1500 guests. Since its foundation, the company refined 122,8 tons of oil products. In recent years, the refinery throughput has reached a record high after a complex and step-by-step modernization process. Last year it broke 11 records of manufacturing as well as 5.92 tons raw material was being refined. That number is the highest in a 40-year history of Petromidia and is even more than the refinery’s nominal indicator. The company “Rompetrol” is a leading

brand of the group KMG International, owned by a Kazakh company KazMunayGaz. KMG Rompetrol is an essential key player in the Black and Mediterranean Sea regions. In 11 countries more than 6,000 people are employed in KMGI Group. Rompetrol entered the market in Georgia 14 years ago and currently is one of the leading oil companies in the country. It is represented by 81 gas stations across the whole Georgia. Rompetrol delivers refined Euro-5 standard fuel to Georgian customers from Petromidia refinery. As the managers of the group say, the company has ambitious plans in Georgia – as a result of substantial investments the market share is supposed to increase from 20 to 25%. Until the end of 2020, it is planned to open 10 new gas stations and to add additional services. “Rompetrol is a key player in all markets it has entered. We are continuing the development process in the market of Georgia as well. In the nearest future, we are planning to offer not only fuel but also introduce other products, including our supermarket brand – “Hei”. Each year Rompetrol is serving about 60 million customers, and in the next few

years, the number will grow.” – said Anca Banciu, the BU Retail Operations Director at Rompetrol. “Nowadays, Georgia is ready to fully provide the delivery of Euro standard fuel. Our main refinery is located in the European Union, so we only produce products according to European standards. At the Georgian market, some of our competitors will have to conduct certain changes, including the aspect of changing a supplier, but it is not about us, because we’ve been providing Georgia with Euro 5 standard fuel for years.”– Zamanbek Mirzayanov, General Director of Rompetrol Georgia, said. The group also owns another refinery “Vega,” which has a 114-years history. evolving from a classic oil refining unit into a producer and supplier of special products made from semi-finished products delivered by Petromidia. Through KMG Trading AG, the trading company located in Switzerland, carrying out major oil and oil products trading operations in the Black Sea and the Mediterranean region, the group has become the leader on oil and gas market in the region.

12 September 23, 2019 #296

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