Georgia Economic Thread | ეკონომიკა

[Kokoity]

Mikheil Saakashvili to Meet Representatives of Senate in Romania
03-06-2010
Georgian President Mikheil Saakashvili will meet representatives of the Romanian Senate .
Saakashvili will meet representatives of the Romanian business circles and discuss economic projects.
At the second half of the day the Georgian President will leave for Constance, where concrete economic and energy projects will be discussed.

http://new.interpressnews.ge/en/poli...n-romania.html

[hakz2007]

Saakashvili Visits Romania

President Saakashvili, who pays two-day official visit to Romania, met with his counterpart, Traian Băsescu, in Bucharest on June 2.

The Romanian President said after the meeting that discussion with the Georgian counterpart was “full of substance” involving broad range of issues including regional and bilateral relations. He said conflicts and Georgia’s NATO aspiration were discussed along with economic cooperation.

He said that the Romanian-proposed project to transport Caspian gas to Europe via Georgia, known as Azerbaijan, Georgia, Romania Interconnection (AGRI) was “an important” part of discussions.

Last month state energy companies of Azerbaijan, Georgia and Romania agreed to set up a Bucharest-based joint venture to proceed with the project, which envisages transportation of about 7 billion cubic meters of Azerbaijani gas through pipeline to Georgia’s port of Poti and then to Romanian port of Constanţa via Black Sea on tankers.

On bilateral economic relations, the Romanian President said that 2009 saw 23% decline over 2008 in bilateral trade.

http://www.civil.ge/eng/article.php?id=22386

[Kokoity]

Governmental and business delegation visits Georgia
04.06.10
Minister of Economic Development of Georgia Zurab Pololikashvili has hosted the governmental and business delegation from China today and discussed the prospects of economic cooperation. Minister met with the deputy minister of commerce of China Fu Zing and other senior authorities at the Sheraton Metekhi Palace today.
Georgian minister said before the event that intensification of political and economic ties with Chine was very important for Georgian government as the interest to China market was very great.
`China is a very big and interesting market for Georgian product and the arrival of such an enlarged governmental delegation to Georgia means that they are interested to have ties with Georgia,` Pololikashvili said.
The governmental and business delegation from China arrived in Georgia on June 3 and will stay here until June 5.

http://rustavi2.com/news/news_text.p...main&ct=0&wth=

The Minister met the governmental and business delegation from China
The Minister of Economic Development of Georgia Zurab Pololikashvili met the delegation from China which was invited by the Ministry. The Chinese governmental and business delegation is led by the Deputy Minister of Commerce Fu Zing. It is remarkable that this is the first biggest visit of the Ministry of Commerce of China in 10 years.

Deputy Minister Zurab Alavidze, the Chief of National Investment Agency Irakli Matkava and the head of the Department of Foreign Trade and International Economic Relations Mikheil Janelidze also attended the event besides Zurab Pololikashvili.

The management of the Ministry of Economic Development of Georgia and the members of the Chinese delegation talked about bilateral economic relations, perspectives of their development and future directions. Zurab Pololikashvili noted that the Chinese market is very interesting for Georgian production. The Minister asked support in order to popularize Georgian production on the Chinese market. “The fact that such a huge delegation arrived from China means that they are interested in Georgian production,” – said Zurab Pololikashvili.

Two important documents are to be signed in frameworks of the visit:

Intergovernmental agreement about Technical-Economic collaboration between China and Georgia, according to which the Chinese government will donate 20 000 000 yuans (approximately 3 mln. USD.)
Contract about supplying the Georgian customs with corresponding equipment.

http://economy.gov.ge/?category=4&lang=eng&item=254

[Kokoity]

Georgian and Romanian leaders discuss economic cooperation
By Mzia Kupunia
Friday, June 4
Georgian President Mikheil Saakashvili and his Romanian counterpart Traian Basescu have discussed issues of economic cooperation in Bucharest, including a new project to transport Azeri gas to Europe through Georgia. President Saakashvili assessed this project, which Georgia, Azerbaijan and Romania signed up to in May, as “important”.

“The project which has been developed on the initiative of the Romanian President is very important for Europe in terms of energy security. Until now there has been a monopoly on energy transportation and we have been dependent on the major players in the market. In future energy will be more readily available. This project will get us quick results and be fulfilled faster than NABUCCO and the other ones,” Mikheil Saakashvili said, adding that the project is “what Europe needs.”

The new project involves transporting gas to Georgia’s Black Sea coast, where a new plant will be built to turn natural gas into liquid. This liquid gas will then be transported to Romania in special tankers. It will then be reconstituted as natural gas and distributed throughout Europe. The project includes building a new terminal, presumably at Kulevi, and will cost about 4-6 billion euros.

The construction of the relevant terminals in Georgia and Romania will be completed in about 3 years. “This will create additional jobs in the country and increase the strategic meaning of Georgia for Europe,” the Georgian President said.

The Presidents of the two countries also discussed political issues, including Georgia’s NATO aspirations. Basescu said that Georgia might join the Alliance without needing to be granted a Membership Action Plan. “I would like to say also that the recognition of Kosovo cannot be a precedent for Georgia,” he added. “The NATO summit is approaching and we understand Georgia’s aspirations. Our position remains unchanged. We are sure that Georgia will eventually join NATO. We are not able to give the exact date, but Georgia’s NATO integration is possible even without MAP,” the Romanian President said.

Later Mikheil Saakashvili met the Chairmen of the two houses of the Romanian Parliament. The parliamentarians stressed the importance of Georgia not only for Romania but also for the whole EU. Saakashvili noted that Romania was the first country to recognise Georgia’s independence. “The Georgian people will never forget this,” he said at the meeting.

http://www.messenger.com.ge/issues/2...2120_mzia.html

[Kokoity]

Companies hail U.S. government plan to buy Georgian products

As the　U.S.　government seeks to purchase supplies　in　Georgia　for its Afghanistan operations and　cut transportation costs, local companies welcome the initiative. For them, this means trust in Georgian quality and more sales.

“Most of the deals with our partners envisage payment only after the job has been fulfilled, which creates difficulties for us.　Now we get a promise that we will be paid ahead　or part of the sum will be paid in advance that will be　a huge benefit,” Giorgi Tabatadze, president of Kavkaz Cement,　told Georgia Today. “On the other hand, when the U.S. government cooperates with you this　means they value your product’s quality and management style.”

If　his　company is selected for the project,　Tabatadze’s company plans to sell　around　10 percent of its production, mostly cement and concrete.

The　U.S.　government said in 　mid May that potential　suppliers would be food　companies, which will be asked to provide　canned and dry goods and bottled water. Construction materials and household goods　including　paper products, cartridge/toner, cleaning and washing supplies　as well as notebooks and　pens　will be also purchased.

The U.S.　Transportation Command (USTRANSCOM), one of the ten unified commands of U.S. Department of Defense, has organized a seminar for 60 Georgian medium and large manufacturers, suppliers and distributors to discuss the possible cooperation. The seminar provided first-hand information on how local companies can get involve in the initiative.

The main demand, according to　USTRANSCOM,　is that the companies supposed to join the project must have　experience with international trade and export of the above mentioned types of goods and supplies.

USTRANSCOM　representative　Patrick Spatz　said that　it is too early to say but　that　the　U.S.　government hopes　to save as much as possible　from its possible　cooperation with Georgian companies.

“We have already shipped over 12,000 containers to　Afghanistan　from the　USA　and　Northern Europe　on the Northern Distribution Network,” Spatz　told Georgia Today via e-mail. “Any containers we can ship from Georgia　will significantly reduce our per container freight costs.”

According to him, USTRANSCOM has　already purchased bottled water from　Georgia　and　plans　to purchase more.

Levan Baghdavadze, first deputy director of　water manufacturing company IDS Borjomi Georgia,　which attended the　USTRANSCOM　seminar, was impressed with the　new　opportunity.

“We are actively engaged in the consultations,” he told Georgia Today. “The demand is both for mineral water and pure　water.”　As he added,　the exact volume and timeline is not agreed yet, but what is most important, negotiations are underway.

Baghdavadze’s　optimism is backed by Borjomi’s big export experience. The brand was very popular among the Soviet countries in the last century and it was exported to some European countries as well. In 2009 the company produced 115 million　bottles of water and exported it to 30 countries.

USTRANSCOM said that they will start purchasing Georgian products starting from June.

Apart from the financial benefits for Georgian companies, the new U.S. initiative has political importance as well. For　Georgia,　which is seeks 　membership in the North Atlantic Treaty Orgnisation and is participating in NATO-led operations in　Afghanistan, any closer engagement with the alliance is of vital importance.

Yet, some seem cautious thinking Georgia　should not overestimate this new　offer. “As much as U.S.-Georgia relations have seen some ice under Obama administration,　but on the other hand　we are participating in the Afghanistan operations, we should regard the　US　government’s initiative　as a kind of　tilt towards　Georgia’s efforts,” foreign policy analyst　Korneli Kakachia, who is a visiting fellow at the Harvard Kennedy School,　said via e-mail.

Georgian government officials, however,　commended the initiative and its importance both for economic and political terms.

“In the first place, this initiative is important as much as it will enhance Georgian business development and export potential,”　MP Davit Darchiashvili, chairman of the Committee on European Integration, said over the phone for Georgia Today.　”On the other hand, this is yet another step forward in the U.S.-Georgia political relations since this plan increases　Georgia’s importance for the　United States　and at a regional level too.”

Story by Nino Edilashvili
4.06.2010

http://georgiatoday.ge/article_details.php?id=8053

[Kokoity]

Georgia’s Export to the UK Was Rising Faster than Import from UK
Monday, June 07, 2010
Interview with Giorgi Badridze ,Georgian Ambassador to the United Kingdom of Great Britain and Northern Ireland
By Tatia Kobreshvili

GBW: Georgian President Mikheil Saakashvili has said that the performance of Georgian embassies abroad will be judged according to their ability to attract foreign investments. What would say about your embassy in this respect?

GB: First of all I would like to greet GBW readers. As you aware, attracting foreign investment to Georgia is one of the top priorities of the Georgian government, accordingly, the volume of investment should be one of the main criteria in evaluating the work by the Embassies.
Georgia Embassy in London has been working intensely in this direction. In the last five years the United Kingdom has been among top five investors in Georgia. The embassy works closely with appropriate governmental bodies, UK business organizations, consulting centers and mass media. We regularly update them on the ongoing reforms and economic performance, the existing business environment and investment, free industrial zones and successful investment projects in Georgia. Major Georgian business forums in London, led by the Georgian Prime Minister take place twice a year and have already established as a tradition. The last forum was held in November 2009 and the next forum is scheduled for June 21-22.
The embassy regularly organizes and participates in various conferences, round tables and workshops to disseminate more information. At the same time, we are trying to involve managers of the companies, which have already made investments in Georgia and continue successful operation in our country. For instance, in April we conducted a workshop called “Doing Business in Georgia; Political, Legal and Commercial Analysis of the Current Situation”. We do our best to spread information on Georgia to as many individuals and legal entities as possible in the United Kingdom and persuade them that Georgia is a safe country with favorable investment opportunities for successful operation. Our embassy has active cooperation with the British-Georgian Chamber of Commerce founded in 2007 over all the above issues.

GBW: The majority of European countries are still trying to recover after the economic crisis. Do you think it is realistic in such circumstances to expect them to expand their investment in Georgia?

GB: I agree that most European countries are still experiencing difficult economic conditions. Nevertheless, many companies have sufficient resources and interest to investment in projects abroad. Our goal is to find such companies, provide them with information concerning investment opportunities in Georgia and persuade them, that Georgia is the best destination for their investment. The global economic crisis may have reduced the overall volume of investments that have been flowing to Georgia in the past years, but this is a reality shared by all economies. Large investment projects will remain of critical significance for Georgia, but it is also important to work with small and medium-sized investment projects. And it’s not just financial resources that our economy needs, but also modern technologies, which can be considered as significant investment.

GBW: Which sectors from Britain are interested in investing in Georgia?

GB: I would mainly name the energy sector, financial service and generally banking sector. At the same time, during the last period British companies were showing growing interest in tourism and agricultural sectors too, as well as in the processing industry, natural resources and environmental protection sectors. Investors are showing particular interest in the real estate sector of Georgia. Despite Russian aggression and the global economic crisis, investing in this field is considered to be still quite attractive.

GBW: How would you appraise the dynamics of the trade-economic relations between the two countries and what changes should we expect in this respect?

GB: Georgian-British trade relations have been strengthening in the past few years. The fall in bilateral trade in 2009 should be considered as an effect of the global economic crisis. Trade volume has been increasing since January this year. At the same time, according to the statistics, Georgia’s export to the UK was rising faster than import from UK. Georgia’s exports may bear certain losses if domestic taxes in UK (such as excise and VAT rates) are increased, but such a decision has not been taken yet.

GBW: Do you consider Georgian exports to be viable on the British market and which products would you name to have better chances in this respect? What are the key problems before the Georgian products to penetrate the British market?

GB: Georgian Wines have very good chances on the British market. The Britons like Georgian wines, which are made from indigenous Georgian grapes. The sales of such wines are growing consistently. Moreover, as a result of efforts by the Government of Georgia and other relevant bodies, quantity of counterfeit Georgian wines is decreasing. Georgian producers also should take notice of the rising demand for organic bio-products, including fruits and vegetables. Unfortunately at present production of organic food in Georgia is insignificant. This is the area where Georgia could find its niche in future.

GBW: What are the key obstacles facing Georgian products in penetrating British markets?

GB: Finding our place in the UK or any other Western markets requires consistent work on marketing and promotional policy. British market is quite complex, just finding a trade partner, is not enough. Various specific promotional projects should be carried out to find a niche on the market and all this is related to certain costs. Companies must constantly fulfill the terms and provisions of their contracts, maintain the quality of products, meet supply timetables and provide products with requirement documentation and so on. In other words, it is not easy to enter and find a niche on the British market, but this is possible and the success of many Georgian companies can serve as evidence.
One of the main problems is low intensity of transport communication between Georgia and UK. Export consignments are often small and usually they cannot fill one container. In such cases, companies should cooperate with each other and organize “grouppage”, but this does not happen regularly. Embassy, in close cooperation with Georgian authorities and private sector, constantly works for popularization of Georgian products on UK market, spreading information about Georgia, concerning Georgian producers and companies, tourism sector and possibility. Embassy also permanently provides Georgian Government and private sector with information concerning UK market, changes in taxation, duties and procedures. I think Georgian companies should take more initiative and, for example, provide us with their promotional and advertising materials.

GBW: There is one of the lowest tax rates in Georgia all over the world. The business opening procedures have also been simplified. What are other guarantees the Georgian government should apply to foreign companies to increase their interest in Georgia?

GB: Georgia's reputation as a business friendly country growing constantly. Ratings of various international organizations is a convincing evidence of this. However, we should not forget we started all this from the very low benchmark. Only several years ago Georgia was considered a failing state, where money was extorted from visitors right from the moment they crossed the border. Police harassment, corruption at all levels of government, especially among tax and customs offices was enormous. Robbery and kidnapping of Georgian and foreign businessmen was common. As a result, there was very little if any direct foreign investment in Georgia, even amid the global economic boom. It is a recognized fact today that the situation has been radically transformed. This is proved by the dynamics of foreign investments. The fact that the western capital inflow slowed down in 2008 is directly related mostly to the global financial crisis. We should not forget that investments shrank on markets of the most developed countries as well.
We have created all preconditions for drawing foreign investments and their volume will increase along with the improvement of global economic situation.

GBW: The Georgia-Russia war (in 2008) and the postwar situation was considered to be a serious obstacle for companies to invest in Georgia. Do you think this factor remains?

GB: It is true that the effects of Russian invasion still pose an obstacle for some investors, but the international community has witnessed how Georgia has maintained stability and despite both shocks - war and the global economic crisis, continues its development. Lately some experts have recommended various governments to follow Georgian example of open and liberal economy, overseen by Government’s responsible fiscal and monetary policies.

GBW: International rating agencies have upgraded the financial ratings for Georgia. Do you think these decisions will make a serious contribution to enlarging investment inflows?

GB: Undoubtedly improvement of ratings contributes to growth of investment volume. Investors judge conditions in countries of their interest according to various criteria, where ratings by internationally recognized independent organizations are of critical importance. Once again, the Georgian Government has created very attractive investment climate in our country and has done a good job in spreading information about our reforms. In this regard Georgian embassies will have to continue to play instrumental role in communicating with potential investors abroad.

http://www.gbw.ge/news.aspx?sid=a3f2...a-f61cd96fb9dc

[Kokoity]

The concept of micro business in Georgia
By Messenger Staff
Monday, June 7
The new taxation code which has recently been widely promoted by the Government introduces many novelties. For instance, the term 'micro business' will now refer to those companies whose annual turnover does not exceed 30,000 GEL. They will be exempt from profit tax.

The Government says that this will be a serious advantage for these businesses, but many analysts challenge this, saying that if annual turnover is 30,000 that means GEL 2,500 monthly and GEL 83 daily. If a person sells and buys items for GEL 83 a day he will possibly have no more profit than GEL 5 a day and this is just a ridiculous figure.

Furthermore the micro businesses must register and are obliged to have official cash registration machines, because if they do not have one they will be accused of hiding their income. However some businessmen could register several such entities and keep each one under 30,000 turnover but in fact have a much bigger total income.

http://www.messenger.com.ge/issues/2..._econ_one.html

Revolutionary Code Innovations
Monday, June 07, 2010
Tatia Kobreshvili

The Georgian government has introduced a new tax code, which is expected to come in force at the beginning of next year. Prime Minister Nikoloz Gilauri says the new tax code, which represents a consolidated tax and customs codes, is to ensure maximum legalization of the business activities in Georgia. The code is still being drafted and the government is ready to incorporate the business sector's proposals and remarks into the bill. However, certain entries of the code will be enacted as early as September 1.
The Georgian government has a long history of foisting its initiatives on the public in a surprising manner. A number of representatives of the Georgian business sector have outlined their considerations and approaches to the expected fundamental changes and revisions in the new tax code. In interviews with Georgian Business Week, they noted the new law could improve relations between the private sector and the tax authorities.
The tax code has been virtually rewritten.The new tax code introduces such concepts as a micro business and a small business. Companies with turnover of about 30,000 GEL will be considered to be a micro business and they will be exempted from all taxes, while companies with turnover of 30,000 to 200,000 GEL will pay a fixed rate of the company's gross and the tax rate will range from 3 to 5 percent.
Under the current tax code, companies that gross more than 100,000 GEL are to pay a value added tax (VAT).
One more innovation of the new tax code enables companies to pay VAT on a quarterly basis. Lawmakers note the practice should be considered to be a certain kind of interest-free state loan for the private sector. The norm will be initially applied to the major business and will be gradually expanded to other business companies too.
The new tax code also calls for introducing of an auditing board, which will be chaired by the Georgian finance minister. The auditors will be empowered to react to illegal activities of tax inspectors in relation to the business sector. The board will include five members and discuss appeals of the companies, which claim they are improperly or unfairly taxed.
Under the bill, the amount of penalty sanctions will also increase. Tax rates will rise for gambling business and alcohol manufacturers, while winemaking companies will pay the previous rates. Taxes will not increase for the print media or agriculture businesses.
Moreover, the new tax code calls for introducing the position of an ombudsman to protect private sector's interests. Namely, entrepreneurs will be allowed to write off unsaleable products. The business sectors representatives positively appraise the tax code changes.
“The code will essentially change its principles, first of all, to simplify relations with administrative structures,” said Georgian Finance Minister Kakha Baindurashvili. “The practice of a preliminary decision is used in the developed counties and it is of crucial importance for any investor. The code also introduces the concept of an honest taxpayer, under which honest taxpayers may be freed from sanctions in case of error. In practice, the code differs errors and deliberate crimes.”
Amy Denman, executive director for the American Chamber of Commerce (AmCham) applauded the move. "The new tax code includes such a modern regulation as a preliminary decision. Namely, the answer the Finance Ministry will give to the question of a businessmen will be legal and this amendment is of crucial importance for the business sector,” she said.
Soso Pkhakadze, chairman of the Wissol supervisory board and vice president of the business association of Georgia also praised the move. He said: The new tax code calls for imposing a turnover tax on this category and the tax rate makes up 3 to 5 percent. The companies having failed to submit full bookkeeping documentation will have to pay a 5 percent turnover tax, while companies will pay only a 3 percent turnover tax if they submit over 60 percent of required bookkeeping documents. Under prior practices, the ministry-forwarded letter was of advisory nature and it did not protect the taxpayer. Consequently, the business sector will be able to rely on the letter and the tax office will not be authorized to revise the company decision and impose penalty sanctions and fines.”
The main characteristic feature of the new tax code is emphasized in a new and reasonable approach of the Georgian government to the business sector, said Lasha Papashvili, chairman of the Bank Republic supervisory board. He points out the entry, which envisages pardoning errors and removing penalty sanctions in case of decisions over unclear situations, is of crucial importance. Papashvili says the Georgian Finance Ministry's offer to register all financial operations in the united server of the ministry in case of corresponding desire is quite acceptable. As a result, businessmen will spare time and solid funds, he noted. However, one should also note if the company operations are registered in the Finance Ministry server, the company will be exempted from periodical one-week audits, not from complex audits. At the same time, the new tax code will not lower profit tax until 2012.

http://www.gbw.ge/news.aspx?sid=04f6...9-063581bf20fb

Government drafts new tax code and says small business a priority

The government has drafted a package of changes to the tax code in order to help improve the business environment in the country. The revised code has been put in public scrutiny last week. It is expected some articles to come into force this fall, while the whole code will be start working Jan. 1, 2011.

“We want to hear voices of all interest groups,” Minister of Finance Kakha Baindurashvili told journalists on June 9. “The 6-man groups of experts are working on development of the draft. This group is assigned to take all the comments into account.”

The key advantages of the new code are the simplified procedures, clearer stipulations, more business friendly regulations and introducing helpful environment for small business owners.

The new code introduces notions such as micro entrepreneur and small entrepreneur. “An entrepreneur with annual turnover of over 30, 000 lari is a micro entrepreneur, who must pass registration procedures in the tax department to receive this status and he will not have to pay any taxes,” PM Nika Gilauri underlined, as he presented the draft code to the business community on June 3.

The preferential regime will also benefit those businessmen whose annual turnover exceeds 200,000 lari. These entrepreneurs will receive a status of a small entrepreneur and will pay only a turnover tax ranging between 3 percent and 5 percent. “If a businessman has a high performing accounting, he will pay 3 percent and in the other case – 5 percent of the turnover.”

Also, under the draft code, monthly payment of VAT is replaced with quarterly payment. This, according to the government, is very important re-investment opportunity for business people, which will boost the economy. “Previously, we could not afford to make this kind of change but now our economy can allow to offer this opportunity,” Baindurashvili explained.

The new tax code merges customs and tax codes in a bid to help further simplify the procedures. According to the authorities, now businesspeople will have to deal with only one low, instead of the two. Allowing business owners to use excessive tax payment for clearing other tax obligation or request the money back is a significant step forward. The tax service is obliged to return the money within three months. Under the present code the relevant procedures are much more complicated. For instance, it sets a period of one month for a business to request the sum.

Georgia’s tax code underwent many amendments several years ago. As part of the liberal economic reforms, the new tax code came into force in 2005 and two years later the new customs code was approved. As a result of the reform, only six taxes remained instead of 21, and out of the 15 customs procedures, only seven were left. These changes eased the overall tax burden, made collection simpler and more transparent and corruption-free. However, local experts and representatives of businesses have repeatedly pointed to the remaining faults regarding the taxation system, including the threat of double interpretation of quite many articles.

Now, apart from using clearer language and allowing simpler tax paying procedures, the amended tax code will introduce two new institutions which will serve the interest of businessmen. These institutions will be the Tax Ombudsman and the Auditors Council. The latter will be authorized to give or not give permission for tax authority to fine a company which had no tax abuses previously. This is to encourage businesses to function decently.

Details of how these two bodies will get financing and whether they will be independent structurally have not been disclosed yet.

Very good news is to give entrepreneurs the right to write off outdated or rotten products. The absence of such a permission used to complicate things for companies.

While attempting to elevate tax burden for small business, the government will increase the burden for large tax payers to compensate the potential loss in the budget. For instance, excise taxes are poised to increase. “We plan to increase axcise tax on scrap metal, gambling business and alcoholic beverages, mostly on vodka,” Baindurashvili said.

According to Baindurashvili, the Georgian budget has a 6 percent deficit and the government plans to make it 3 percent. “We can not allow declining tax revenues because it is very crucial for the country’s economy,” he added.

The most unpopular news for the tax payers will be the government’s decision to shelve a plan of further reducing income and dividend taxes. Under the current tax code, starting from Jan. 1, 2011 income tax is to cut from 20 percent to 18 percent, while the dividend tax, which is now 5 percent is to be annulled. Now the government, in its efforts to compensate beneficial conditions for small business, is posed to reschedule the tax cuts until 2013.

Story by Nino Edilashvili
11.06.2010

http://www.georgiatoday.ge/article_details.php?id=8063

[Kokoity]

Georgian Products have Huge Possibilities on Ukrainian Market
Monday, June 07, 2010
Interview with Grigol Katamadze, Georgia's Ambassador to Ukraine
By Tatia Kobreshvili

GBW: Georgian President Mikheil Saakashvili has said that the performance of Georgian embassies abroad will be evaluated on the basis of their ability to attract investment from that country. What would say about your embassy in this respect?

GK: Attracting foreign investment to Georgia is one of the key challenges of Georgia's embassy to Ukraine and we are carrying out permanent meetings with investors and update them on investments opportunities and economic developments in Georgia. I would recall the introduction of the Poti free industrial zone project in Kiev on November 28-22 as part of the Georgian president’s working visit to Ukraine. The event was attended by about 150 representatives of medium and major business companies of Ukraine and drew much interest of government officials and mass media. Following the presentation representatives of the Industrial Union of Donbas Corporation visited the city of Poti to explore the situation on the spot under the recommendation of our embassy to Ukraine. They made a decision to launch production in the Poti FIZ and invest tens of millions of USD. Admiral Trading company has also expressed readiness to construct an oil production plant in Poti. A Ukrainian mining company has also showed interest in making investments in the Poti FIZ. The visit of representatives of Iteco company, which produces sandwich-panels and its turnover makes up 100 million USD, to the Poti FIZ in March should be paid special attention. Moreover, it is important we have organized a business conference Capital Drawing to Georgian Stock Exchanges, which was held at the Georgian embassy on March 31 with the co-participation of the Bank of Georgia branch and BG Capital company. About 140 representatives of the business sector, sectoral companies and mass media attended the meeting. Georgia's embassy to Ukraine provides active contribution to Georgian business development in Ukraine, including winemaking and citrus companies, the Bank of Georgia branch and so on.

GBW: The majority of European countries are still trying to recover after the economic crisis. Do you think it is realistic in such circumstances to expect them to enlarge investment in Georgia?

GK: Taking into account the very attractive investment environment in Georgia and implemented tax reforms we can say we should expect investment inflows to enlarge. The Georgian embassy to Ukraine is providing serious information-advertising campaigns to popularize the ongoing processes in Georgia. At the same time, last period we have organized and initiated visits of several groups of political scientists, businessmen and reporters to Georgia. As a result, the decision has brought concrete positive results, as Ukrainian media agencies and society, leading TV programs and editions widely cover the achievements and experience of Georgia. This fact will definitely contribute to a further rise in investments inflows to Georgia.

GBW: Which sectors from Ukraine are interested in investing in Georgia?

GK: We deal with various sector companies and holdings, including the construction sector, processing companies, energy, tourism and gambling businesses and the banking sector.

GBW: How would you appraise the dynamics of the trade-economic relations between the countries and what changes should we expect in this respect?

GK: Ukraine ranks third among Georgia’s 10 top trade partners following Turkey and Azerbaijan. Georgia’s turnover with Ukraine recorded 502.3 million USD in 2009, which is 63.4 percent of 2008 indicators. Georgia’s exports to Ukraine shrank 50.2 million USD after ferroalloys and wines exports fell 17.8 million USD and 6.5 million USD respectively. Moreover, citrus exports rose 8.4 million USD and equaled 11.8 million USD. Georgia’s imports from Ukraine decreased by 239.4 million USD and totaled 418.3 million USD. To overview the dynamics history, it is interesting the Georgia-Ukraine trade turnover made up 47 million USD in 2001, while the figure recorded 257 million USD and over 1 billion USD before the crisis in 2008 (1071.7 million USD precisely). The rise in Georgia-Ukraine turnover is directly related to intensification of transport communications. The opening of the Poti-Kerch ferry train route has made positive effect on not only bilateral trade relations, but also on the whole region, in general. At the same time, our cooperation in the energy sector is of strategic importance. The diversification of the energy-transport system ensures the energy security of both countries. It should be noted Georgia-Ukraine turnover considerably increased by about 24 percent in the first quarter of this year compared to the same period last year. Georgia’s exports with Ukraine equaled 20.376.8 million USD in the reporting period, while imports recorded 106.613 million USD. I believe there are all required preconditions the Georgia-Ukraine turnover exceed 1 billion USD by 2012.

GBW: Do you consider Georgian exports to be viable on the Ukrainian market and which products would you name to have better chances in this respect? What are the key problems before the Georgian products to penetrate the Ukrainian market?

GK: Georgian products have huge possibilities to find their niches on the Ukrainian market, especially alcoholic products and citrus fruits, as well as processed food products. Serious demand is registered for Georgian winegrowing specialists. The free trade and double taxation prevention regimes between Georgia and Ukraine, as well as the bilateral agreement on investment protection contributes to penetration of Georgian products to the Ukrainian market.

GBW: What are the key problems facing the Georgian products to penetrate the Ukrainian market?

GK: The Ukrainian system is a far more bureaucratic compared to Georgian law, which has shrunk the quantity of business regulatory permits and licenses to 150 from 1,000. This fact should be considered a key obstacle. On June 3, Ukrainian President Viktor Yanukovich addressed the Ukrainian public and unveiled concrete plans to carry out genuine reformation of the national economy in the country. Namely, business activity permits and licenses will be minimized. If these plans are implemented, this will be huge stimulus for both Georgian and foreign product exports on the Ukrainian market.

GBW: There is one of the lowest tax rates in Georgia all over the world. The business opening procedures have also been simplified. What are other guarantees the Georgian government should apply to foreign companies to increase their interest in Georgia?

GK: I believe that Georgia today offers good conditions for doing business. Reforms are considered to be a permanently renewable process. The Georgian economy will dynamically move along with the global economic developments in the future too.

GBW: The Georgia-Russia war (in 2008) and the postwar situation was considered to be a serious obstacle for companies to invest in Georgia. Do you think this factor remains?

GK: It is manifest that such problems will exist as long as Georgia has not restored its territorial integrity (Abkhazia and South Ossetia). However, I can state freely this factor does not hinder Ukrainian investors from seeking business interests in Georgia.

GBW: International rating agencies have upgraded the financial ratings for Georgia. Do you think these decisions will make a serious contribution to enlarging investment inflows?

GK: These are related with each other. Business takes into account not only global rating changes, but also very little details. I believe the USAID-published Georgia’s business climate evaluation is of crucial importance, as the report says Georgia is carrying out the most comprehensive, substantial and efficient reforms in the world for the last 50 years ever.

http://www.gbw.ge/news.aspx?sid=f569...1-c96cb91c27d4

[Kokoity]

Sheep breeding issues
By Messenger Staff
Wednesday, June 9
All of a sudden sheep breeding has become a very profitable branch of agriculture in Georgia. In 2009 several thousand sheep from Georgia were exported to Arab countries and it appears that Iran will also import Georgian sheep in 2010. Therefore extra steps are to be taken to rationalise the sheep breeding industry in order to make it sustainable.

In 2008 there were more than 600,000 sheep in Georgia. In 2009 this figure decreased to 400,000, and export will be pretty high in 2010 too. The price of sheep has increased from 65 to 120 GEL, and some analysts suggest that the number Georgian sheep will come to 300,000 by the end of the year.

Analyst Paata Koghuashvili thinks that if the business is properly organised Georgia can easily breed 1 million sheep as it has enough resources to do so. Therefore the Ministry of Agriculture should help ensure the sustainability of this very profitable branch of agriculture.

http://www.messenger.com.ge/issues/2..._econ_one.html

[Kokoity]

“We already completed 37 drawings and we have 21,000 winners”


Avtandil Tsereteli - Operational executive director of the　Georgian Lottery Company　

Q: How reliable are you and your products?

A: I would like to thank our customers because despite the short-term operation of the company the reliability is very high. I can’t say that this is the level of trust that we wish to have but the process needs ages but our priority is to establish such attitude because this business is based on consistency.

Q: How much have you spent so far?

A: We already completed 37 drawings and we have 21,000 winners. The amount of money spent is 6.5 million lari.

Q: There have been talks in society that the winning of the jackpot has been prolonged. Is there any estimation how many times can the jackpot be replayed and what is the maximal amount the jackpot can reach?

A: It is impossible to predict how much will be the jackpot and when will it be played. The main attractiveness of the game is that it depends on an accident and a chance whether which balls will fall down from the machine, how they will coincide with a combination of numbers we chose and others. I can’t say that the process of jackpot extended because this is a particularly new culture and it depends on our market scale, number of tickets sold because the more is sold, the better are chances of jackpot. We are mostly willing jackpot to play because first of all many winners is the main result of our operation.

Q: According to the legislation, only you got a permission to operate on the market. Is there any need of competition and will that help the company’s diversification and vigorousness?

A: Competition is good in general, it causes quality improvement, product diversification and others but in this case we are talking about a very specific commerce. Under the initiative of Finance Ministry, it has been decided to use a very classical method of a national lottery concept, which is used in many foreign countries. In my opinion this is a very optimal scheme　because　Georgia　is a small country and government would rather trust one operator on a successful operation of the trade.

Q: Are you planning to offer technology as a gift other than cash?

A: Indeed, we are planning to launch two new games this year because taste of society differs. There are various products to meet diverse social level representatives in a special niche. One of the games will be in sports direction and the second – a classical family lotto.

http://www.georgiatoday.ge/article_details.php?id=8054

[Kokoity]

DESPITE CRISIS, HYDRO-POWER PLANTS WILL BE BUILT!

With the support of US Embassy, economic forum will be held in Guria

Ema Tukhiashvili

Interest of private investors to invest in Georgian energy sector is increasing lately. Besides some Hydro-Power Plants (HPP) that are under construction, in the Ministry of Energy there are proposals to build HPPs in Achara as well. Out of the underway projects the first one to be finished is the HPP in Guria and the whole cascade of HPPs is to follow. The Georgian-Estonian 'Bakhvi-Hydro-Power" will have to finish 6-Megawatt Plant construction on the Bakhvistskali River in two years. The Company is investing USD 9.7 million. Local inhabitants think that building of the planned short road to the HPP will benefit the development of social-economic situation of the region and may also come to the aid of tourism development.

'Bakhvi III' is one of the HPPs from the list offered by the State to the investors. Starting from 2008, the Energy Ministry allotted about 80 potential HPPs for sale. The 'Alpana HPP' on the Rioni river in Racha-Lechkhumi has the highest potential (70.7 Megawatts) and HPP on the Gubazula river in Guria - the lowest (3.06 Megawatts).

The parties interested to invest in the energy sector must meet the requirement of the State - for 10 years, during winter months, it's obligatory to realize the generated power only at the local market; during other months the investor is free to make his choice.

Valeri Chitaishvili (authorized person of the State, Governor in Lanchkhuti, Ozurgeti and Chokhatauri municipalities): 'The region must have a plan for economic development but it shouldn't be only a 'program for the program's sake'. Guria has a good potential for developing of agriculture, tourism as well as energy sector. We want the investors to invest their money in our region but they must also have profit. For instance, it's already known that USD 9 million will be spent for building the first cascade of 'Bakhvi HPP' and it will generate about 7 megawatt power. But the HPP is of cascade structure and totally it will generate 44 megawatts. Building of the road that leads to the HPP is almost finished and construction of the Plant will start this summer. Guria is rich in rivers and building of several cascade-type HPPs is feasible.

Without the due infrastructure it's actually impossible to attract the investors. Building of Ozurgeti-Jumati-Ninoshvili-Lesa 24-km road is underway. Its budget is about GEL 10 million. About 100 locals are employed and it will pass through 14 villages of Lanchkhuti and Ozurgeti regions. This year laying of asphalt is planned in big villages and building of 18-km section of Natanebi-Shroma-Ureki road is underway. The process of road-building envisages fortification of landslide areas, building of torrent-channels and crossing bridges. In Lanchkhuti, Ozurgeti and Chokhatauri municipalities about 100 km road-surfacing has been accomplished. Guria is rich in sea as well as mountain resorts. Road rehabilitation in Grigoleti, Shekvetili and Ureki is completed but on the Gomi Mountain and to the direction of Bakhmaro the works are underway.

It's to be noted that in October holding of economic forum is planned in Guria where investment proposals, including those of enterprise-development and tourism, will be discussed. We expect guest from Ukraine, Lithuania, Czechia and Poland. The Kherson region of Ukraine is strategic economic partner of Guria. Out of 16 thousand tons of citruses harvested in Guria, 80% are exported to Ukraine and Belarus and only 20% are realized locally. The first economic forum in Guria will be supported by the US Embassy.'

Last year, in Georgia, construction of two HPPs began under the 'Renewable energy - 2008' program. Construction of four HPPs is planned in 2010.

41.5 megawatt 'Zoti HPP' will be constructed by 'Energopro-Georgia', spending about EUR 90 million within 5 years. In 2012, 38 megawatt 'Mtkvari HPP' will be constructed by CEI in Samtske-Javakheti', investing USD 70 million. 78 megawatt 'ParavanHPP' is being constructed by Turkish company 'Georgian Urban Energy' (USD 147 million). In the previous years construction of 'KhadorHPP by Chinese investors in Kakheti was considered as one of the biggest hydro-energetic deals with total project-cost of USD 25 million. The HPP was put to operation in 2004. Its annual output is 100 million kilowatt/hours.

http://georgianjournal.ge/

[hakz2007]

Gov’t Proposes Budgetary Amendments

The government submitted to the Parliament draft amendments in the 2010 state budget envisaging increase of expenditures by GEL 215 million.

The amendments were made possible due to increased tax revenues – GEL 150 million and expected EU grant, the government said.

According to an explanatory note attached to the draft amendments, government is revising economic growth forecast from initially expected 2% to 4.5%.

“Our economy grew faster in the first quarter of this year than we expected,” Georgian Finance Minister Kakha Baindurashvili said on June 10.

According to the draft, the government will allocate additional GEL 24, 2 million for housing program for internally displaced persons and GEL 3.4 million for covering their utility tariffs.

GEL 9.4 will be allocated for rehabilitation and construction of facilities in penitentiary system; GEL 12.5 million – for rehabilitation of water supply systems; GEL 23.8 million – for tourism and road infrastructure; GEL 20 million – for co-funding of construction of high-voltage power transmission line; GEL 2.6 million will be spent to purchase of the building of Georgian Embassy in Germany, according to the draft.

http://www.civil.ge/eng/article.php?id=22413

Ukrainian President Meets Georgian FM

Ukrainian President, Viktor Yanukovych, met on June 11 with Georgian Foreign Minister, Grigol Vashadze, who pays a working visit to Kiev.

"We are eager to further develop cooperation with Georgia and our mutually beneficial trade and economic relations," Yanukovych said, adding that a potential for increasing economic cooperation between the two countries was not fully used.

"We believe that there are promising opportunities to develop our trade and economic relations and create favorable conditions for growth of the turnover between Ukraine and Georgia," he said.

Yanukovych also said that inter-governmental commission of Ukraine and Georgia should elaborate concrete steps on how to boost trade and economic ties between the two countries.

Ukraine was Georgia’s third largest trading partner with USD 502.3 million, down from USD 791,8 million in 2008. In the first quarter of 2010 trade turnover between Georgia and Ukraine was USD 127 million – the third after Turkey and Azerbaijan, according to the Georgian statistics agency.

http://www.civil.ge/eng/article.php?id=22412

[hakz2007]

Ukraine ready for closer cooperation with Georgia – Yanukovich

KIEV, June 11 (Itar-Tass) -- Ukraine is ready for further cooperation with Georgia to develop mutually beneficial trade and economic relations, Ukrainian President Viktor Yanukovich said on Friday after a meeting with visiting Georgian Foreign Minister Grigol Vashadze.

“The current dynamics in this sphere is obviously legging behind the available potential,” the presidential press service quoted Yanukovich as saying.

According to Yanukovich, it is necessary to “draft a project for strengthening trade and economic relations between the two countries the soonest possible.” He expressed the hope that “traditionally friendly relations between the Ukrainian and Georgian peoples will encourage this work.”

The Georgian foreign minister is the first Georgian official to visit Ukraine after Yanukovich won presidential elections. On Thursday, Vashadze met with his Ukrainian counterpart Konstantin Grishchenko. The two ministers signed an intergovernmental agreement on air traffic. “Ukraine’s rapprochement with any country poses no threat to the Ukrainian-Georgian relations,” Vashadze then said, commenting on Ukraine’s efforts to resume cooperation with Russia.

http://www.itar-tass.com/eng/level2....0049&PageNum=0

[Kokoity]

“We are the most active business organization in the country”

Fady Asly - President of the International Chamber of Commerce

Q: How would you evaluate ICC’s operation in the country and what are your plans for the future?

A: ICC Georgia is probably the most active business organization in the country. We have always taken very clear positions when it came to protecting the business and investment environment. We were very loud when other people would not open their mouth. This is the philosophy of the chamber; we have to be in the middle of any change, of anything new. Currently we are working on a new tax code. We are closely cooperating with the Ministry of Finance on this issue. We have a discussion meeting with our members and the Minister of Finance, and the advisor to the Prime Minister to discuss the amendments. We have also submitted our suggestions for the amendment very elaborately. So we are doing quite well. Further than this, we have a presentation on June 24 as we are working in cooperation with PMCG on the integration of Georgia in Europe – how can Georgia adapt its legislation so it can have the customs unity with Europe.

Also, we have our regular round tables and regular activities. I can say that we are the most active business organization in the country because we produce. When other people talk, we do and we make it happen.

Q: How do you think the new tax code will fit the business today?

A: We haven’t discussed in detail the new tax code. We have a tax commission that is headed by Ernst&Young. I believe from what I have seen, there are many positive things. I can not talk about the impact of the new tax code on the business environment right now but from what we see it is good. I’m sure there are things that need to be improved and we have our vision and we will discuss our views with decision-makers.

Q: How would you evaluate the current business environment in the country? What do you think business needs to development?

A: I believe that all the hard work has been done from the government and we have a very good theoretical business environment in the country. All legislation is in place, the government is doing a huge effort to really put Georgia as the number one country as for the ease of doing business. Last year, we were number 11, I believe according to my personal analyses we will be number six or seven, which is not bad at all. The more you go forward, the more difficult it is. When it comes to legislation we are doing extremely well. Georgia really has a perfect business environment. You may have a very good restaurant, a very good menu, and very good waiters, but clients are not coming. They are not coming because they don’t have money to eat and unfortunately investors are having their own problems everywhere. It’s not the issue about Georgia; it is about all emerging markets. We just have to be patient. We have all the components in Georgia to be extremely successful and we just have to wait for the international crisis to totally resolve. I think the biggest challenge now is for Georgian companies to expand their businesses in neighboring countries. Here we are facing a very serious challenge with many of our neighbor countries artificially creating hardens for Georgian businesses that want to work there. I speak about Armenia, Azerbaijan, Uzbekistan, Turkmenistan, you name it. Probably three countries where we can run business are Turkey, Ukraine and Belarus. The government has to put pressure on neighboring governments to open their borders for Georgian businesses. This will reflect very positively on our economy.

http://www.georgiatoday.ge/article_details.php?id=8069

[Kokoity]

Украина заинтересовалась проектом в области энергетики

Украина заинтересовалась совместным грузино-азербайджано-румынским проектом в области энергетики. Киев готов присоединиться к транспортировке сжиженного газа в рамках сотрудничества между Тбилиси, Баку и Бухарестом. По заявлению украинского министра энергетики Юрия Бойко, строительство терминала по превращению сжиженного газа в природный обойдется его стране в один миллиард долларов. По его словам, уже состоялись переговоры с азербайджанскими партнерами, которые строят терминал по сжижению газа в Грузии.

http://www.1k-tv.com/index-3-newsinfo-6876

[Kokoity]

Switzerland ready for tight cooperation with Georgia
16.06.10
Switzerland is ready for tight cooperation with Georgia and for making investments in specific fields in teh country. Georgian Prime Minister Nikoloz Gilauri, during his visit to Switzerland, met with the president, representatives of business circles and owners of prominent brands of the country.
An agreement on avoiding double taxations was signed between the two sides. Switzerland is interested in fields of energy and healthcare and also in carrying out infrastructural projects in Georgia.
President of the Swiss Confederation Doris Leuthard said, Switzerland supports Georgia and continues to intermediate in its relations with Russia.
`A significant document was signed between Georgia and Switzerland on avoiding double taxation. This agreement will assist attracting new investments from Switzerland to Georgia`, Nikoloz Gilauri said.
`Georgia is an important partner in Nabucco project, as the pipeline has to cross the country. Furthermore, we are interested to seek common interests and implement Swiss investments in Georgia. We are also interested in energy, healthcare and infrastructural projects. We are ready for tight cooperation with Georgia`, Doris Leuthard said.

http://rustavi2.com/news/news_text.p...main&ct=0&wth=

[Kokoity]

Georgia Makes Bid to Become a Second Silicon Valley
June 18, 2010 by Giorgi Lomsadze
Tamada Tales Georgia Economy
Georgia has canceled taxes for information technology producers in an ambitious bid to turn the country into the Silicon Valley of the Caucasus. Finance Minister Kakha Baindurashvili hopes that the profit tax-free environment will attract Internet and computer software giants such as Microsoft and Google to set up regional operations in the new IT tax haven.

“We want to declare Georgia a tax-free zone for the companies that produce . . . .information technologies and software,” Georgian Prime Minister Nika Gilauri told a June 18 cabinet meeting, Rustavi-2 television reported. Baindurashvili told journalists that major .com businesses will be informed about the tax-free opportunities in Georgia.

http://www.eurasianet.org/node/61343

[Kokoity]

Ukraine interested in liquid gas project
By Messenger Staff
Friday, June 18
The new project to send liquefied Azeri gas to Romania via Georgia has interested Ukraine as well. Its Energy Minister Yuri Boiko has stated that Kiev is ready to participate in this project and purchase 10 billion cubic metres of liquid gas. He also said that Ukraine will need to construct a terminal to transform the liquid gas back into natural gas at an estimated cost of USD 1 billion.

Boiko added that he has had meetings with possible Azeri partners already. As is known, on April 13 Georgia, Azerbaijan and Romania signed a memorandum in Bucharest on the implementation of this project.

http://www.messenger.com.ge/issues/2..._econ_two.html

[Kokoity]

“We offer bedrooms starting from 700 lari, and kitchens from approximately 400 lari”

Manoni Avaliani - Sales Manager of furniture salon Pansilion

Q: What type of furniture does the company offer to customers and where does the production come from?

A: Our company was established in 2002 and took its place in the market despite the high competition. We offer retail as well as wholesale trade. We import production from various countries such as Belarus, Turkey, Malaysia and others. We try to offer furniture that is high quality and affordable.

Q: What is your target audience?

A: We have a wide choice of production including expensive furniture but basically our production is dedicated to average income society. We can offer bedrooms starting from 700 lari, and kitchens from approximately 400 lari.

Q: What is the current environment like on the furniture market and how would you evaluate the dynamics of sales in the post-crisis period?

A: Of course, everybody overcame crisis period but nowadays the situation is better. The furniture market is seasonal, sales numbers diminished in winter and it is growing starting from spring.

Q: How much have the sales increased compared to the previous months?

A: Sales increased by 40-50 percent compared to previous years. As for the season, the sales usually increase by 10-20 percent in spring.

Q: Who do you consider your competitors? Is there anything you offer that cannot be found anywhere else?

A: It’s hard to talk about competition because we are an importing company. Moreover, we are importing production that is very well-known in its country in terms of quality. Of course, there is a competition on the market but when customers come in they are pleasantly amazed with the prices.

Q: How many stores does Pansilion represent in the country and are you planning to expand the chain?

A: We are constantly expanding. Today, we have two stores in Tbilisi on 2 Eristavi Street and in furniture trade center Saba and we just opened a third store in the Lilo market district. Moreover, we are operating in Telavi, Tsnori, Akhalkalaki, Akhaltsikhe and Kvareli.

“Diseases are more spread in the poor class of society and they don’t have enough resources”

http://www.georgiatoday.ge/article_details.php?id=8084

[Kokoity]

Georgian International Energy Corporation is Implementing Ritseula HPP Rehabilitation Project
Monday, June 21, 2010
Georgian International Energy Corporation (GIEC) has been Implementing the HPP (6.1 megawatt) rehabilitation project The company acquired the HPP in 2010.
GIEC head Natia Turnava specifies the company will receive KfW and the municipal development fund financial resources of 2 192 000 EUR through TBC Bank.
The HPP rehabilitation project investment value makes up 3.4 million USD. The rehabilitation works are expected to end in November 2011 and the HPP projected generation will rise to 25 megawatts, Turnava noted.
The financial resources, which have been disbursed GIEC, is part of a grant of 5.11 million EUR KfW has disbursed to Georgia. The funds have been transferred to the Georgian Government and KfW-selected two Georgian commercial banks, namely, VTB Bank Georgia and TBC Bank.
TBC Bank will issue the loan with the 7-year maturity period and 1.5-year grace period. The loan annual interest rate makes up 8 percent.
GIEC is member of the Georgian Industrial Group (GIG) holding. At this stage, GIEC is operator of seven small and medium-sized HPPs. GIEC-generated electricity is supplied to both the retail market and the Electricity System Commercial Operator (ESCO). GIEC also exports electricity to Armenia and Azerbaijan. The company plans to construct several new hydro power plants in various regions of Georgia.
GIEC also owns the Gardabani steam power plant in the Kvemo Kartli Region. The station installed generation makes up 900 megawatts, including 300 megawatts in the operating regime. GIEC also plans to construct a coal fired power plant and the generated electricity will be sold on both the domestic market and export markets.

http://www.gbw.ge/news.aspx?sid=a527...6-b26cf3cb72ae