THE FUTURE TBILISI’S TRAFFIC BRAIN DRAIN? OF OLD TBILISI NIGHTMARE NOT IN GEORGIA

Investor.geA MAGAZINE OF THE AMERICAN CHAMBER OF COMMERCE IN GEORGIA

ISSUE 42 DEC.-JAN. 2014/15

Tbilisi, Traffic and Urban Design

DECEMBER-JANUARY/2014-15 • Investor.ge | 3 Investor.ge CONTENT 6 Investment News A short summary of major investment news as published in the media and on official websites.

9 Kakha Bendukidze: Building a legacy for the next generation An interview with Vato Lejava, the chancellor of the Free University of Tbilisi and one of Kakha Bendukidze’s close associates.

11 The Next Frontier- Developing the Georgian Work Force 20 Brain drain is not a major issue in Georgia, thanks to the efforts of the public sector and private businesses to train and attract the country’s best.

15 High Education in Georgia: Room for Growth An analysis of the current situation in Georgia’s universities by Grant Thornton’s Nikoloz Akhalaia

20 Tbilisi, Traffic and Urban Design Investor.ge looks at how Tbilisi’s current city hall envisions the city’s future – as well as how specialists believe it 26 should be developed and what is actually happening on the ground – in this series of articles.

22 Tbilisi Mayor Davit Narmania: The capital is open for business

24 Tbilisi’s Traffic Nightmare: A perfect storm of planning, pollution and popular culture

26 The Future of Old Tbilisi The capital’s historic district is facing a myriad of 43 problems, not the least of which is the lack of a clear strategy for its future – or the legal basis for residents to advocate for its preservation.

30 The Economics of Preservation

31 Developing Tbilisi’s Suburbs

36 A Better Tbilisi Investor.ge spoke with four Tbilisians who have been vocal advocates for action to help our city be its best.

38 If You Build it, They Will Come New road projects are key to investment outside of the 46 capital.

40 Georgian Designer George Shaghashvili: A color-rich love affair

54 NEWS ...... 42

4 | Investor.ge • JUNE-JULY/2014 DECEMBER-JANUARY/2014-15 • Investor.ge | 5 BOSCH TO OPEN NEW grow as much as fi ve percent next year, Investment WAREHOUSE IN TBILISI the government-run agenda.ge website German manufacturer Bosch is reported on November 27. scheduled to open a new warehouse in “The economic impact of geopoliti- Tbilisi in December, the Georgian gov- cal tensions has been contained so far, ernment-run agenda.ge website reported. given Georgia’s growing (but still lim- NEWS The 1,600 square meter warehouse ited) trade links with Russia and increas- will start working on December 16 ing remittances from Southern Europe. and will be operated by Austrian-based All of the program’s quantitative targets transportation and logistics company Ge- for end-September were met,” IMF said. A SHORT SUMMARY bruder Weiss. Up until now, clients had “Overall spending has been broadly OF MAJOR to wait “two or three weeks” for products in line with expectations but its compo- INVESTMENT NEWS to arrive from a warehouse in Germany, sition has shifted from capital to current AS PUBLISHED IN according to a quote on Bosch’s website expenditure, pointing to the need to from David Oker, Bosch commercial strengthen project appraisal and pro- THE MEDIA AND ON director in Georgia. curement.” OFFICIAL WEBSITES. He added that Tbilisi would become The international fi nancial body also a regional logistical hub. noted that the budget defi cit would be “Tbilisi’s warehouses will ensure a slightly below 3.7 percent of GDP. good delivery performance as well as fast and cost-effective handling of Bosch GEOSTAT: GEORGIAN FOREIGN products in the region,” he said. TRADE UP TEN PERCENT “Bosch believes that Georgia’s Georgia’s foreign trade was $9.4 construction sector is developing very billion in the fi rst ten months of 2014, fast; thus, establishing a warehouse in ten percent higher than the same period Tbilisi will further support the sector’s last year, website DF Watch reported in development.” November, quoting statistics published by the offi cial statistics body, Geostat. EU ALLOCATES THE GRANT OF 30 Exports were up fi ve percent, the MILLION EUROS FOR GEORGIA website noted, to $2.4 billion. Brussels has earmarked 30 million Trade turnover with Europe was $2.5 euros for regional development in Geor- billion, up seven percent from last year. gia, Prime Minister Irakli Gharibashvili’s Top trading countries for the fi rst ten offi cial website reported on November months of 2014 were: Turkey – USD 1.6 18. billion (20 percent of turnover), Azer- The funds will be used “support baijan USD 983 million (10 percent) Georgian regional development strategy and China USD 682 million (7 percent). and implementation of economic and Russia, Ukraine, Germany, Armenia, US, social support programs in the regions.” Bulgaria and Japan also top of the list of The deal was announced during trade partner countries, Democracy and Gharibashvili’s offi cial trip to Brussels. Freedom Watch said. “The most exported type of product is IMF: ECONOMIC GROWTH IN used cars, which accounts for 19 percent GEORGIA COULD REACH 5 of all exports. PERCENT IN 2015 Next on the list is ferroalloys with The International Monetary Fund 10 percent, and copper ores and concen- announced the Georgian economy could trates 9 percent,” the website reported.

6 | Investor.ge • DECEMBER-JANUARY/2014-15

KAKHA BENDUKIDZE: Building a legacy for the next generation

INVESTOR.GE SPOKE WITH VATO LEJAVA, THE CHANCELLOR OF THE FREE UNIVERSITY OF TBILISI AND ONE OF KAKHA BENDUKIDZE’S CLOSE ASSOCIATES, ABOUT THE IMPACT BENDUKIDZE HAD ON GEORGIA AND THE FUTURE OF HIS LEGACY PROJECTS, THE FREE UNIVERSITY AND THE AGRICULTURAL UNIVERSITY.

uch has been written about and second I think he has infl uenced how university was such a place that could the late reformer Kakha we think about economy and the state in combine these three and also give the MBendukidze since his death general. He broke many taboos.” students the possibility to get knowledge, was announced on November 13. But Bendukidze’s most lasting legacy to learn how to work or to labor, and to He has been credited with bringing could be the two universities he created understand what freedom means,” he libertarianism to Georgia and spearhead- after leaving public service, Lejava said. said. ing the reforms that helped catapult the Bendukidze, he said, first started country’s economy growth during the speaking about creating a university PASSING THE TORCH Saakashvili administration. in 2006 – at the height of his tenure in Even though Bendukidze passed public service.“We have an expression in away much earlier than anticipated, A LEGACY FOR GEORGIA’S Georgian – sashvilshvilo – so something Lejava said he laid the foundation for “GRANDCHILDREN” you do for your grandchildren, not for his work at the universities to continue. Bendukidze made a lasting impact your children, but for your grandchil- “Of course I cannot say it will be on Georgia in the last decade of his life, dren,” he said. “He was referring to this business as usual. It is not business as Vato Lejava said. project always like that. He was sure it usual. But on the other hand, when he Lejava - the chancellor of the Free was something that should last far be- was talking about it – discussing the uni- University of Tbilisi - said: “Imagine if yond his life time.” versity and discussing his ideas about the in 2004 Bedukidze would not have come The Free University and the Agri- university – this was always something to Georgia, would Georgia be a different cultural University were a place for him which had the horizon longer than one country today? I think it would have been to put his motto – knowledge, labor and man’s lifetime,” he said.“It was not made a different country for two reasons. First, liberty – into practice, Lejava said. for the short period or medium term.” for the reforms that have contributed to “His famous saying was knowledge, Lejava added: “Of course, no one the economic performance and growth labor - toil - and freedom. I think the can replace Kakha and we will miss–

8 | Investor.ge • DECEMBER-JANUARY/2014-15 CAPITAL

DECEMBER-JANUARY/2014-15 • Investor.ge | 9 not only the university but society as well will miss – his ideas which could Kakha Bendukidze, Reformer have born in the years to come, but this is already, unfortunately, sadly, is just Kakha Bendukidze was a large man who fi t easily speculation now.” into superlatives. But he said the university and the He was the visionary who came home; the voice administration are committed to con- of Georgian libertarianism; the biologist who could tinuing and trying to uphold the mission see the potential in ruined things, whether they be the crumbling carcasses of an old university or the failing Bendukidze started: providing a quality economy of his homeland. education to create Georgia’s future. He was also famous for his footwear, for always fi nd- “I am explaining this in this way: ing time for journalists, for saving the political cartoons maybe the genius thing is to invent an en- that lampooned him, for appreciating a good joke – gine. But to run the car with that engine, even if he was the subject. you need a good driver, or good engineer He pushed Georgia out of its post-Soviet lassitude and was seemingly unscathed by the controversy and or a good manager. This is how things criticism his reforms generated. happen in the world,” he said. Born in 1956, Bendukidze moved to Moscow for “There are innovators and geniuses post-graduate studies in biology after he received his who really do something but if these are degree from Tbilisi State University in 1977. In 1993, he viable ideas, then it is not necessary for entered business, fi rst purchasing Uralmash and then geniuses to implement them and to give Izhora Plants. The two companies, merged into Obje- dinennie Mashinostroitelnie Zavody (OMZ), became them durability as well.” one of Russia’s largest heavy engineering companies. Lejava said the university is now But in 2003 he sold his holdings and, a year later, working on moving forward. returned home to join the Rose Revolution government. “Nobody can replace him. He will At the time of his death, he was rumored to be a be missed and this will be a defi cit that front runner for a cabinet position in Ukraine and he cannot be compensated by something had been advising Kyiv for months. He had also ad- vised other former Soviet and Eastern bloc countries; else,” he said. in July he was reportedly in Albania for meetings with “But this is the reality. And we have the government. to deal with that reality. It is a painful re- Bendukidze, like many of the personalities that made ality, but he would have wished that this up former Georgian President Mikheil Saakashvili’s would not have limited or hindered the cabinet, was a dividing fi gure. Under his watch, the future of the university or the students.” country withstood over 70 reforms – many radical – at a dizzying pace, according to an obituary published in Tabula magazine on November 14. THE FATE OF THE UNIVERSITY Tabula magazine, a venture he supported, credited The future of the university might his reforms – however unpopular – with creating the not depend just on Lejava and the rest Georgian middle class. of the administration: the investigation “By appointing Bendukidze, the government made launched into Bendukidze’s procurement a clear choice. This choice gave the country a yearly 9.3 percent economic growth in 2004-2007 and almost of the university is still open, Lejava said. four times more foreign investments. Despite separate “When I talk about the future of the compromises and mistakes, the government managed university, I am discussing the indig- to decrease the taxes fourfold, the number of licenses enous risks…but of course there are by 90 percent and liberalize the labor market,” the always exterior factors. editorial stated. This investigation is formally stand- “The reforms, obviously, came at a price, which most distinctively showed on 7 November 2007. However, ing; it is not closed, so we cannot address these liberal steps were what lead to the formation of what kind of risks could come from the previously almost non-existent middle class.” there,” he said.

10 | Investor.ge • DECEMBER-JANUARY/2014-15 THE NEXT FRONTIER - Developing The Georgian Work Force

THE GEORGIAN JOB MARKET OPERATES IN A STRANGE DICHOTOMY. THERE ARE NOT were to Indian professionals. The second ENOUGH JOBS – BUT SIMULTANEOUSLY THERE AREALSO NOT ENOUGH QUALIFIED largest share went to Chinese emigrants. PERSONNEL FOR THE POSITIONS THAT ARE AVAILABLE. HUNDREDS OF CANDIDATES Georgia did not even make the OFTEN APPLY FORA FEW EXISTING OPENINGS, WHILE SEVERAL FIRMS COMPETE FOR A 22-country list, which also includes the HANDFUL OF TOP EMPLOYEES EVERY YEAR. AS A DEVELOPING, EMERGING-MARKET ECONOMY, THE COUNTRY HAS MADE Philippines, Mexico, Nepal, Colombia, GREAT STRIDES IN CREATING A FAVORABLE BUSINESS ENVIRONMENT. NEVERTHELESS, Turkey and Israel. CHALLENGES IN CREATING A WORKFORCE THAT CAN KEEP UP WITH AND GARNER That, however, does not mean Geor- THE BENEFITS OF THE COUNTRY’S GROWING COMMERCIAL SUCCESS STILL LINGER. gian professionals are not being drawn INVESTOR.GE SET OUT TO EXPLORE HOW THE CORPORATE SECTOR, NON-PROFIT to opportunities for better pay and ad- ORGANIZATIONS AND THE STATE INVEST TOGETHER AND SEPARATELY IN THE COUNTRY’S vancement overseas: according to the HUMAN CAPITAL. ULTIMATELY, WE FOUND THAT, LUCKILY, UNLIKE IN OTHER DEVELOPING MARKETS, GEORGIANS OVERSEAS JUMP AT OPPORTUNITIES TO COME BACK HOME, United States Embassy in Georgia, up to DECREASING THE COUNTRY’S RISK OF BRAIN DRAIN. 4,000 Georgians have participated in the over 20 educational exchanges currently offered by the Department of State. KETI KHUKHUNASHVILI sionals fi nd better employment conditions Tea Kuchukhidze, who coordinates and higher pay. India, for example, is educational and professional programs at A GEORGIAN EXODUS? the prime example of destructive brain the United States Embassy in Tbilisi, noted eveloping countries often lose drain. According to Bloomberg Rankings that there is “a very low percentage of skilled workers to their more devel- published in 2013, in 2012, two-thirds of the USG program participants who overstay Doped counterparts, where profes- H-1B visas for skilled workers the U.S. issued their visas” from Georgia.

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DECEMBER-JANUARY/2014-15 • Investor.ge | 11 Former SDSU Provost Nancy Marlin and Georgia’s Minister of Education and Science, Tamar Sanikdize signing the agreement to launch SDSU-Georgia (SDSU).

“From what we hear from program city currently. The key advantages for the each other for a few candidates, typically participants, they are highly motivated hospital will be high-quality healthcare from the one or two leading educational to bring their experience and expertise services, international accreditation and institutions or who have foreign degrees. back to Georgia, and to contribute to American-licensed Georgian medical DLA, on the other hand, looks to hire staff the development of Georgia’s economy, personnel.” who have had some sort of exchange ex- democratic institutions and civil society,” He noted that the group is in talks with perience in the U.S. or in English-speaking she explains, adding that many alumni of doctors who are interested in returning to countries. U.S. embassy exchange programs chose Georgia after successful careers in the U.S. “Historically [with over 20 years of prominent leadership roles in Georgia. “Locally accredited doctors will have legal practice experience], the smartest “Davit Usupashvili, Chairman of the the chance to receive additional training Georgian lawyers with best English did not Parliament, (Muskie and IVLP participant) abroad and, upon successful completion, have LLMs. Good English does not come and Davit Lordkipanidze, General Director to join the hospital’s medical staff. The from doing LLM, it comes from getting edu- of Georgian National Museum (Fulbright hospital will focus on providing services cated in the US, especially at a high school Visiting Scholar Program participant) are that are most frequently sought abroad level. So, LLM is not a decisive factor [for examples of bright minds staying in Geor- by Georgians and residents of neighboring DLA Piper when hiring lawyers], how smart gia to lead the way.” countries,” Akhvlediani said. “As a second they are is decisive,” noted Ted Jonas, the Despite these encouraging stories, phase, the hospital will have a teaching managing partner at DLA Piper. a signifi cant number have found better facility that will host students for their resi- More top employers tend to fi ll their working conditions elsewhere as relative dency studies.” most lucrative executive-level positions to the size of the total population. For Ultimately, the AHT will create 400 new with staff that boast impressive educa- example, TBC Holding – a company build- jobs for Georgian medical professionals tional and professional credentials, but ing the American Hospital in Tbilisi (AHT) who return from abroad or stay in Georgia choose to come to Georgia as soon as in partnership with Dima Tvildiani and the to work. appropriate opportunities arise. At Bank Conti Group – has identifi ed many suc- of Georgia, 75 percent of executives cessful Georgian doctors licensed and EDUCATION ABROAD, BETTER have foreign education from well-known working in the US. EMPLOYMENT AT HOME? institutions, such as the Cass Business The project is taking advantage of Untapped opportunities remain for School, Cornell, and John Hopkins – as this pool of highly advanced personnel developing more capable business per- well as working experience at prominent to bring approximately 40 leading doctors sonnel as well. Both DLA Piper and Deloitte, foreign fi nancial institutions. TBC Bank has back to the country. two companies active in workforce de- recruited its top managers and directors As the CEO of TBC Holding, Levan Akh- velopment in Georgia, fi nd it challenging from leading managerial positions at such vlediani, explains, “the concept behind to recruit qualifi ed employees. Deloitte, institutions as Barclays, Deutsche Bank, this $80 million project is different from along with other top business employers and Unicredit; three deputy CEOs hold the hospitals and clinics operating in the (auditors and banks), often compete with top-20 MBA degrees.

12 | Investor.ge • DECEMBER-JANUARY/2014-15 Overseas qualifi cations seem to pro- PROGRAMS FOCUS ON KEEPING has left rich material for investment from vide a competitive edge to job seekers in TALENT AT HOME businesses and the government. Georgia, although employers are hesitant At the Open Society Georgia Founda- DLA offers its lawyers regular trainings to describe this as the key criterion for tion (OSGF), a special project aimed to from its wider company network. “DLA hiring. develop Georgian academia and to staff trainings are very distinguished from other Some companies are opting to invest Georgian universities with highly qualifi ed local law fi rm alternatives,” noted manag- in developing locally trained human scholars. Tinatin Bregvadze, the South ing partner Ted Jonas. These include webi- resources: Deloitte and DLA Piper are Caucasus Coordinator for the Academic nars and on-site training at the company’s providing good working schemes for in- Fellowship Program at OSGF, notes that offi ces around the world with topics vary- ternal workforce development programs. one sphere that suffers from the brain drain ing from general skills to group trainings ProCredit Bank also has developed an problem is the academia. for different fi elds of legal practice. DLA extensive overseas training program for The commonly cited challenges of an lawyers are also invited to professional its employees. underdeveloped working environment, in- knowledge-sharing conferences, where However, foreign-educated personnel adequate pay, and shortfalls at the policy they have excelled in the past as well. provide useful perspectives and important level still apply. To remedy these obstacles, The Georgian government has also interpersonal skills and experiences for Bregvadze said that the Academic Fel- invested in several exchange programs. the locally sourced professionals, explains lowship Program worked with over 550 One such interesting program, delivered Deloitte Managing Partner, John Robin- scholars who have already transformed in partnership with U.S. Embassy in Tbilisi, son. “[Audit companies] have a snow- Georgian academic life through their work aims to provide best-in-class education ball effect. Our workforce gets qualifi ed in this sector. to students pursuing careers in the military here and goes off to other companies,” Although this program has run its sphere. Students have an opportunity to enhancing the country’s human capital. course with the Open Society Institute, it continue their bachelor level studies at the

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DECEMBER-JANUARY/2014-15 • Investor.ge | 13 United State service academies – such as Additionally, Chelidze explains that universities. This and similar programs can the U.S. Military Academy at West Point, theIEC is crucial for “paving the way for be further extended to become indepen- the U.S. Naval Academy, the U.S. Coast highly qualified human resources and dent study or internship courses as part of Guard Academy, the U.S. Merchant ensuring access to high-quality educa- bachelors’ or masters’ degrees. Marine Academy and the U.S. Air Force tion abroad, whichare of strategic im- A new, US accredited degree pro- Academy. portance for Georgia’s economic and gram, fi nanced through the US govern- These students have an obligation to social development”. Although, in order ment’s Millennium Challenge Compact, is serve for a number of years in the public to retain these qualifi ed new resources in also an effort to provide the latest training sector in Georgia. the country, expectations of employers, to Georgia’s new workforce. The program But it is not always easy for return- as well as employees,must be adjusted is bringing San Diego State University to ing scholars to find good jobs when and matched. Georgia to help students receive the most they come back home: one returning That, however, can be diffi cult. modern degrees in science, technology, student,GiorgiJanjalia, found that the If job makers aim to fi nd fresh, top- engineering and mathematics available. working environment is often resistant to school graduates with 12 years of experi- “This will generate greater private sec- change that overseas graduates try to ence in a specifi c fi eld, they are unlikely to tor activity in Georgia, which ultimately introduce. Traditionally low pay, especially fi nd their dream candidates. At the same creates jobs, fuels growth and makes the in the public sector, is a big challenge. The time, foreign-educated young people country a stronger trading, investment and biggest obstacle yet, however, is persever- cannot expect to land top management business partner at home, in the region ing through nepotism. jobs fresh out of college. and beyond,” noted Daniel W. Yohannes Fortunately, a new state program has , the former MCC Chief Executive Offi cer, emerged with a specifi c goal to fi nance INVESTMENT FOR FUTURE in a blog post on the program that was bachelor, masters and doctoral studies PROFESSIONALS published in July 2013, when the compact abroad for civil servants, as well as several Businesses in Georgia have started to was signed. priority areas of academic studies. The invest in initiativesto create a workforce “MCC’s investment to educate Geor- newly established Interna- gia’s workforce promises to tional Education Center deliver a number of positive (IEC, at www.iec.gov.ge), a effects that will boost earning program under the manage- More top employers tend to fill their most potential and productivity. ment of the Chancellery of lucrative executive-level positions with Progress like this will replace de- the Government of Georgia, velopment dollars with private is pioneering a transpar- staff that boast impressive educational sector-led growth in Georgia ent, well-informed and tar- and open new opportunities geted education-fi nancing and professional credentials, but choose to for Georgian students.” scheme in which the state Kenneth Walsh, the dean implements long-term initia- come to Georgia as soon as appropriate of the new school in Georgia, tives for Georgian workforce was quoted by the university’s development. The program, opportunities arise. press service as saying: ““The established in May 2014, has government of Georgia deter- already fi nanced 77 students mined that trained engineers for a wide variety of degree and scientists are critical to programs in the U.S., Europe and Asia. that matches their demands. Bank of their economic development,” he said. According to Head of the IEC, Nino Georgia is now working with the U.S. Em- “Engineers and scientists build innovation Chelidze, the IEC aims to create “a bassy to expand the Fulbright Graduate economies and the infrastructure of a knowledge society of Georgia and use Student Program for students interested in modern society — both things that Geor- educated HR for facilitation and develop- pursuing degrees in business, information gia really needs to take the next step.” ment of the public sector.” The program technology, and engineering. prioritizesselection-process transparency, According to Kuchukhidze, “from fall she said, stressing that the program takes 2015, in addition to the six scholarships measures to automatize the application provided by the U.S. Government and the screening process to safeguard against Ministry of Education and Science, there human error or “attempts to skew the will now be two additional scholarships Keti Khukhunashvili is the Investor Re- selection process.” provided by the Bank of Georgia’s Tree lations Manager at TBC Bank. She gradu- The IEC lists all benefi ciaries on the IEC of Life Foundation.” ated with a double major in Economics website and the rationale to fi nance any There are also NGOs providing unique and International Relations from Simmons particular area of study is made public. professional training programs with a fo- College (Boston, MA) and has worked The program also “focuses on assisting cused effect on a target group of students. on a number of educational projects, Georgian nationals in Georgia’s occupied The American Chamber of Commerce, for including those at the GuivyZaldastanish- territories and the rural areas of Georgia, example, has a pilot training program run- vili American Academy in Tbilisi and the as well as persons with disabilities.” ning for students of several of its member European School.

14 | Investor.ge • DECEMBER-JANUARY/2014-15 HIGHER NIKOLOZ AKHALAIA, GRANT THORNTON OVERVIEW OF THE HIGHER EDUCATION SYSTEM IN EDUCATION GEORGIA here are 20 public and 37 private universities in Georgia, IN GEORGIA: while about 62 percent of all students are enrolled in the Tfi ve largest public universities (Tbilisi State University, Georgian Technical University, Ilia State University, Tbilisi State ROOM FOR Medical University, and the Agricultural University of Georgia). Currentlypublic HEIs (higher education institutions) rely on GROWTH two sources of income – tuition fees and state subsidies. Tuition feesare payments by students, while state subsidies represent A MEASURE OF COUNTRY’S grants awarded to students. Public and private universities have OVERALL DEVELOPMENT HAS ALWAYS BEEN THE different income sources. Private HEIs’ only funding from the EDUCATIONAL LEVEL OF ITS government is via state-funded grants awarded on the ability SOCIETY. IN GEORGIA, DESPITE testto qualifi ed students.Private universities’ annual tuition fees THE FACT THAT MORE THAN 1.6 MILLION PEOPLE HAVE HIGHER are at least twice as high, and therefore grants can only partially THAN SECONDARY EDUCATION, cover student costs. ONLY ABOUT 673,000 PEOPLE Tuition fees comprise 90 percent of university funding, HAVE A HOUSEHOLD INCOME OF MORE THAN $40 PER MONTH while subsidies account only for 10 percent. For the 2014-2015 . WHILE MANAGING RESOURCES academic year, grants allocationsare 12.6 million lari, meaning IS AN INTEGRAL PART OF that, roughly, total funding for both HEIs is 126 million lari. SUCCESS, UNFORTUNATELY, Another difference between private and public universities MANY FORGET THE IMPORTANCE OF INTELLECTUAL is annual enrollment. On average, each of the top fi ve private CAPITAL AND HOW IT SHOULD institutes accepts about 250 students per year. Nevertheless, ACCUMULATED. competition is stiff and has helped to increase the quality of

DECEMBER-JANUARY/2014-15 • Investor.ge | 15 education over the years. Major private professors and 1,296 assistant professors respectively. HEIs follow modern Western-style cur- in Georgia; total teaching staff is 6,136. The fi gures for some other European riculums, applying methodology and Women comprise about 50 percent of countries are as follows: Bulgaria – 0.53 study materials used in Europe and academic staff. percent ($257.4 million), Czech Republic the US. Well-organized programs and The average number of students per – 1.35 percent ($2.66 million), Croatia modern facilities have helped them win teacher is 19, the same as in the Czech – 0.85 percent ($528.7 million), and the market. Republic, Belgium, Italy and New Poland – 0.67 percent ($2.88 million). Zealand. TEACHING STAFF Despite having a large pool of aca- STUDENTS’ CHOICE The number of university lecturers demic staff, the lack of research funding The most popular degrees are well- has increased by 25 percent since last from the government, coupled with the known, even without offi cial statistics. In year. It should be noted that the private lack of work experience among lecturers, 2013, 14,542 students entered social sci- sector holds an advantage over the public contributes to the problem of moderniz- ence, business, and law faculties, which sector, demonstrating 32 percent versus ing outdated teaching methods in public is about 45 percent of the total number 20 percent growth in the number of universities. of new entrants in that year. professors, respectively. Furthermore, In 2009 about 0.2 percent of GDP The figure has been the same for the number of total students in private (21.5 million USD), was spent on more than six years, and it is unlikely universities has grown by 18 percent, research in Georgian universities. that trend will change. versus 11 percent in public ones. Private Compared to some Eastern European Such a large percentage of students HEIs offer higher salaries with smaller countries, that means that research is prefer the social science, business, and student classes and more resources de- underfunded in Georgia. For example, law faculties because their graduates voted to research, therefore providing in Estonia, Latvia and Lithuania state may be potentially employed in fi nan- more favorable working conditions. funding of research is 1.41 percent cial services or the public sector, which According to Geostat, there are ($273.6 million), 0.46 percent ($119 mil- offer the highest remuneration (1,505 about 1,844 professors, 2,996 associate lion) and 0.84 percent ($311.2 million), GEL and 1,152 GEL, respectively) and

16 | Investor.ge • DECEMBER-JANUARY/2014-15

stability. The least in demand is agricul- where 45 percent of students live in rural SWOT ture, chosen by only 147 (0.45 percent) areas, 31 percent of studentsin Eastern students in 2013. Modest growth of the European countries live in rural areas. agriculture sector, in which the average The slow development of these fi elds Analysis salary is the 3rd lowest in the country by is linked to the fact that their respective sector (495 GEL) and the lack of modern industries have been experiencing slow By introducing Unifi ed teaching practices are the reason for its growth for the last several years, as National Examinations, unpopularity. well as the fact that they require more university exams have become After these popular faculties, hu- investment. transparent, and the grant system has made education manitarian, engineering and construction Nikoloz Akhalaia is a consultant at more affordable. However, faculties are the most popular. While Grant Thornton and holds a Bachelor’s a lack of funding, outdated humanitarian, and engineering and degree in Business Administration from teaching methods and old construction faculties had shares of 16 Georgian American University, special- facilities in some universities percent (5,157 students) and 10 percent izing in International Finance. Prior are still unresolved problems. The following is a summary (3,326 students), respectively, the num- to joining the Grant Thornton Advi- of strengths, weaknesses, opportunities and threats of important issues relating to higher education. Strengths – High level of literacy, transparent grant distribution, competition among universities offering curriculums based on Western standards. Opportunities – Introduction of new mixed technical faculties and certifi cate programs, adoption of new information and communications technologies, developing closer relationship with potential employers for internship programs and permanent employment. Weaknesses – Underfunding of education and R&D, inadequate library facilities and infrastructure, lack of research-intensive universities, undeveloped research culture, out-of-date teaching methods, lack of practical experience among teachers and students, few opportunities ber of new students in the engineering sory team, Nika worked as a fi nancial for continuing education and lifelong learning. and construction faculties has more than analyst in the tourism industry. Dur- Threats – Lag behind doubled, rising from last year’s 1,576 to ing his time with Grant Thornton, he education, research and current 3,326 students. has worked on a range of assignments innovation in Europe, lack of a The picture is different in Eastern Eu- including valuations, due diligence, special strategic development rope, where on average at least 2 percent fi nancial modeling assignments, and program, excess of need in specialists with business of students opt for a career in agriculture. feasibility studies for clients in a diverse education In addition, compared with Georgia, rangeof industries. DECEMBER-JANUARY/2014-15 • Investor.ge | 19 TBILISI, TRAFFIC AND URBAN DESIGN

FROM TRAFFIC WOES TO PRESERVATION CONUNDRUMS, MANAGING A CAPITAL CITY HAS NEVER BEEN EASY. INVESTOR. GE LOOKS AT HOW TBILISI’S CURRENT CITY HALL ENVISIONS THE CITY’S FUTURE – AS WELL AS HOW SPECIALISTS BELIEVE IT SHOULD DEVELOP, AND WHAT IS ACTUALLY HAPPENING ON THE GROUND – IN THIS SERIES OF ARTICLES.

20 | Investor.ge • DECEMBER-JANUARY/2014-15 DECEMBER-JANUARY/2014-15 • Investor.ge | 21 TBILISI MAYOR DAVIT NARMANIA: The Capital is Open for Business

TBILISI’S NEW MAYOR HAS A HEATHER YUNDT is employed, it means we will have fewer MESSAGE FOR INVESTORS: THE problems in protecting the socially vul- CITY IN OPEN FOR BUSINESS. bilisi’s new mayor has a message nerable,” Narmania said in Georgian in a ELECTED IN JUNE, DAVIT for investors: the city in open for recent interview with Investor.ge. “That’s NARMANIA ACTED AS business. THE GEORGIAN DREAM T why economic development and creating COALITION’S MINISTER OF Elected in June, Davit Narmania new work places is very important.” REGIONAL DEVELOPMENT AND acted as the Georgian Dream coalition’s INFRASTRUCTURE UNTIL HE WAS Minister of Regional Development and ENGAGING CITIZENS HANDPICKED FOR THE MAYORAL Infrastructure until he was handpicked But it’s not only businesses Narmania CANDIDACY BY BILLIONAIRE for the mayoral candidacy by billionaire intends to engage as mayor. He says he AND FORMER PRIME MINISTER and former Prime Minister BIDZINA IVANISHVILI. INVESTOR. GE’S HEATHER YUNDT SPOKE TO Bidzina Ivanishvili. HIM ABOUT THE MOST PRESSING Mayor Davit Narmania “We are ready to cooperate with PROBLEM FACING THE CITY – lists economic development any investors; we are ready to EMPLOYMENT – AS WELL AS as among his top priorities ABOUT PLANTING A MILLION for the city. welcome any investors to come TREES AND DEVELOPMENT IN “When economic devel- TBILISI. to Tbilisi and invest money in our opment is at a higher level, when most of the population country.

22 | Investor.ge • DECEMBER-JANUARY/2014-15 encourages citizens, as key stakehold- in gardens, and in the yards of the city’s everyone. Guerilla Gardeners, an active ers, to get involved in decision-making kindergartens,” Narmania said. citizens group, rallied in front of City processes. In the spring, large-scale planting will Hall in October to protest a series of con- As one of Narmania’s campaign begin, particularly near Tbilisi Sea, the struction projects it sees as problematic. promises, in August, City Hall began city’s reservoir. He says two companies Vice Mayor Nina Khatiskatsi responded holding meetings with the city’s residents have also requested to take part in the by agreeing to meet with the group to every Monday afternoon. project. discuss the projects. The idea was so popular that hun- Among the developments the group dreds of citizens showed up outside City ALLEGATIONS OF POLITICAL was protesting was the Panorama Tbilisi Hall to speak with the mayor during the PERSECUTION project, a $1 billion construction project fi rst few sessions. Local media reported But the mayor’s term hit controversy of hotels, apartments, offi ces, and con- that a scuffle broke out as residents early on. ference halls connected by a series of pushed their way into line. City Hall now In early October, Transparency Inter- cable cars. requires interested residents to register national Georgia published allegations of Narmania says the project will in advance. political persecution through forced res- ultimately have to be approved by the “People have a big interest (in the ignations at City Hall since the mayor’s Ministry of Culture as it affects areas of sessions) and we are solving most prob- term began. Tbilisi’s historical Old Town. lems,” he said. “We use the instruments Responding to these allegations, “It’s a very important project for the of citizen engagement in decision- city because it implies huge invest- making process.” “We would like to plant trees ment,” he said. Based on these weekly ses- “Lots of people would be em- sions, as well as public surveys, together with the citizens, and we ployed in the development of Narmania says Tbilisi’s residents’ also would like to give them the the project for the construction have two main concerns: fi nding process.” jobs and improving housing. possibility to plant trees on their Ultimately, Narmania says his To tackle the latter, Narmania own property.” government is ready to do what it said the municipality will be can to facilitate further investment. rehabilitating damaged homes. “We are ready to cooperate For residents living in particularly run- the mayor stressed that his government with any investors; we are ready to wel- down houses, the city will rent a fl at for works “very transparently and openly.” come any investors to come to Tbilisi and them until the work is done. Narmania To emphasize this, City Hall recently invest money in our country. said fl ats for 1,000 families have been required all employees to take a com- We don’t intend to suspend any pre- rented already. petency exam, followed by interviews. vious projects; on the contrary, we are He also hopes to engage Tbilisi’s Narmania said representatives of non- ready to support any kind of projects, on- residents in implementing another one governmental organizations participated going projects and forthcoming projects of his campaign promises: the planting as observers throughout the process. as well. We have a wide number of new of one million trees. Yet, when 60 percent of employees projects, which might be very interesting “We would like to plant trees together failed the exams, opposition politicians for them.” with the citizens, and we also would like claimed the testing was not objective. “We have very simplifi ed procedures to give them the possibility to plant trees Employees who failed the initial tests and we would like to make these proce- on their own property,” he said. will have an opportunity to re-write them dures even simpler. Narmania points to images of tree in December. Those who fail the testing To remove these bureaucratic barri- species fanned out on the coffee table process will be replaced. ers, we would like to introduce one-stop- in his offi ce. He says the tree-planting shop services for investors to make it process is still in the early stages. PRIORITIZING DEVELOPMENT easier for them to come to invest money, “This autumn we are planning to The mayor’s focus on development, to invest in projects. We are ready for plant 20,000 trees in squares, in parks, however, has not been popular with cooperation.”

DECEMBER-JANUARY/2014-15 • Investor.ge | 23 Lado Vardosanidze, an urban plan- Partnership for Road Safety is currently TBILISI’S ner specializing in sociocultural aspects trying to convince companies to sign a of urban development, says Georgia is pledge that their drivers will stop for pe- a rural culture that has become urban in destrians at crosswalks. TRAFFIC geography only recently. He says that this Transparency International Georgia contributes to the average Georgian’s took aim at the city’s tolerance of cars self-centered pattern of spatial behavior. parking on sidewalks in a September blog NIGHTMARE: “[Georgians] don’t pay attention to post written by Erekle Urushadze. the surrounding situation, to other people. “If the City Hall aspires to transform A Perfect Storm We see many examples of this, particularly Tbilisi into a civilized, modern city and if it in the behavior of drivers and in competi- does not consider pedestrians and people of Planning, tion between drivers and pedestrians,” with disabilities to be second-rate citizens, Vardosanidze said. Culture is also tied to Georgia’s rapid Pollution and increase in car ownership. “For the statistical Georgian, it’s very Popular Culture important to have a car. It’s prestige,” he said. “I’m not sure that all owners of those big black jeeps need to drive. Many cars THE FACT THAT TRAFFIC IN THE CAPITAL are driven from home to the offi ce, and IS GETTING WORSE IS NOT NEWS TO ANYONE WHO LIVES IN THE CITY – they stay all day by the offi ce and only in ESPECIALLY TO THOSE WHO COMMUTE the evening are they coming back.” BY CAR, BUS OR MARSHRUTKA. ANALYSTS Vardosanidze argues that there are SAY A FATAL COMBINATION OF NO two other important elements that affect PLANNING, LITTLE POLITICAL WILL, Tbilisi’s traffi c congestion: the construction AND TOO MANY CARS IS MAKING THE and the running of the transportation sys- SITUATION WORSE. tem. He points to the example of Heroes Square, the intricate traffi c circle built by HEATHER YUNDT Mikheil Saakashvili’s government, where the lanes wind around one another like he 2014 Tbilisi In Your Pocket guide put spaghetti. it aptly: “On the face of it, Georgians “The problem is that no preliminary Tdon’t seem the most disciplined mo- study was made,” Vardosanidze said. torists. Driving speeds are often fast and “And you notice in rush hour, some of the lane changes can be erratic. At rush-hour directions are free, others are overloaded. the experience is further intensified by (For) the transportation system, it’s abso- heavy city traffi c.” lutely necessary to make a calculation With the number of vehicles on Geor- before starting with concrete.” gia’s roads increasing at about 10 percent “It means that, unfortunately, the per year — compared to about one per- profession of urban planners was forgot- cent per year in the United States — traffi c ten. Politicians took decisions without any is becoming an increasing concern in the consultation with professionals, city plan- country’s capital. Yet residents’ shared ners, engineers, and so on.” frustration with driving and walking in the But Vardosanidze emphasizes that city cannot be explained by the number fi xing one trouble spot isn’t enough. Con- of vehicles alone. gestion will simply be created in another Gela Kvashilava, chairman of Partner- place. ship for Road Safety, says Tbilisi’s traffi c “It’s like a blood system,” he said. it should immediately start removing cars problem is strongly linked to culture. Kvashilava says the lack of car in- parked in violation of the law from the “The major problem is that road users... spections aggravates the problem. While city’s sidewalks,” he wrote. they don’t respect each other. They be- car inspections were eliminated due to Added to all of this is the fact that data have in a way as though they have priority corruption entrenched in the inspection are lacking. Investor.ge could not locate and the road belongs only to them. This is a process, without them many vehicles are any data on traffi c jams in Tbilisi, and while culture of not sharing roads,” he said. “The polluting at rates above international Georgia is currently undergoing a census road has become (about) social status.” standards. that will clarify the current population of Kvashilava says traffi c congestion and As for the functioning of the system, Tbilisi, it will not reveal how many commut- fl ow ultimately matters because it affects Kvashilava stresses that crosswalks and ers enter the city every day. residents’ well-being in terms of health, sidewalks must be respected by drivers in Data provided by the interior ministry, business and tourism. order to protect pedestrians. Kvashilava’s however, indicates that there are over a

24 | Investor.ge • DECEMBER-JANUARY/2014-15 million cars in the country – 368,873 regis- Alternative, an environmental NGO, it was infrastructure projects.” tered in Tbilisi alone. assumed that the modernization of the bus Narmania says that the study should Vardosanidze calls this latter number fl eet “would decrease traffi c congestion, be completed by the spring. essential. increase traffi c safety, improve air quality However, many of Tbilisi’s residents are “The transportation system serves and reduce emissions.” But Green Alterna- not waiting for the government to take not only the stable population, but also tive says this did not happen. In 2006, the action. Some have created an online commuters,” Vardosanidze said. “The government banned minibuses from main buzz by putting stickers on cars parked on transportation system should respond to avenues and discontinued the trams and sidewalks. Facebook pages and websites this additional kind of population. So it also trolleys. These moves overloaded the pub- have been set up to help shame drivers should be calculated.” lic transit system and, according to Green not following the rules. A group of entre- Attempts to manage Tbilisi’s traffic Alternative, made the environmental situ- preneurs even recently held a Saturday have taken a variety of forms over the ation in Tbilisi worse. session to brainstorm ideas to address the city’s parking problem. Kvashilava says there is one concept that will defi nitely help: implementing a park and ride system, which allows driv- ers to park outside of the city center and take public transportation for the rest of their journey. “(The city is) thinking of building a new road inside the small Old City. A new road means new cars. This is not a solution,” said Kvashilava. Elene Margvelashvili, of Iare Pekhit, a pedestrians’ rights organization, says in addition to improving public transporta- tion, society should treat driving like North America treats smoking, by limiting the spaces drivers can occupy. “We need to start making these people feel uncomfortable, feel ashamed, feel uncool, and feel, you know, just silly,” Margevelashvili said. “If a person doesn’t feel cool owning this big jeep, why would they pay so much for petrol? Why would they put so much effort into sustaining this With the number of vehicles on Georgia’s roads big jeep and sitting in this traffi c jam and increasing at about 10 percent a year — compared to never having a parking space?” Margvelashvili noted that Georgians about one percent in the United States — traffic is need to make the connection between becoming an increasing concern in the country’s capital. their quality of life and their everyday Yet residents’ shared frustration with driving and decisions. She says drivers don’t seem to realize walking in the city cannot be explained by the number of that they are contributing to the problem: vehicles alone. “They think they’re sitting in the traffi c jam, but they don’t understand that they’re one of the people creating this traffi c jam.” years. During the Soviet Union, city plans Now Tbilisi’s City Hall is trying again to “People don’t even understand — were used to organize traffi c fl ows by fo- improve the situation. Mayor Davit Nar- even the young people — what it is that cusing on buses and electric transport, but mania says the city is cooperating with they like in the foreign countries that they this system fell apart in the 1990s. Private the EBRD to develop a feasibility study to go to,” she said. operators began to fi ll the gap in public examine traffi c fl ows. “They just feel good, and you know transportation through marshrutkas. After “Once the feasibility study is over, we’ll this is not something that you can prove the Rose Revolution, the European Bank have a clearer picture of the problems mathematically, that a sidewalk should be for Reconstruction and Development and what aspect needs to be improved,” this wide or that wide. This is something that (EBRD) helped the city purchase 150 Narmania said to Investor.ge through a you feel with your heart or soul, that you municipal buses, among other things, to translator. “Some streets might be wid- are respected by your government. You reform the public transit system. ened, some might be narrowed. It means can have this in your own country too, but According to a 2008 report from Green not only change of traffi c fl ow but also you have to work for it.”

DECEMBER-JANUARY/2014-15 • Investor.ge | 25 THE FUTURE OF OLD TBILISI THE CAPITAL’S HISTORIC DISTRICT IS FACING A MYRIAD OF PROBLEMS, NOT THE LEAST OF WHICH IS THE LACK OF A CLEAR STRATEGY FOR ITS FUTURE – OR THE LEGAL BASIS FOR RESIDENTS TO ADVOCATE FOR ITS PRESERVATION.

BY MONICA ELLENA

26 | Investor.ge • DECEMBER-JANUARY/2014-15 DECEMBER-JANUARY/2014-15 • Investor.ge | 27 ussian poet Mikahil Lermontov loved criticism, as they failed to properly address tov house] building.” The destruction was Tbilisi. He savored its spirit, used it both the cultural heritage and the com- classifi ed as “research” by the company Ras the setting for his 823-line poem munity’s needs. in charge of the restoration, which has Mtsyri (The Novice), and portrayed it in “The historic district falls under the now pulled out, leaving the rubble behind. a small painting in 1837. The house he law on the protection of cultural heritage The 2009 amendments shifted respon- resided in during the 1820s became one of Georgia, which was last amended in sibility for the Old Town from the Ministry of of the city’s most famous buildings. That, 2009,” explains Nato Tsitsabadze, conser- Culture to the city council. however, did not stop the city from tearing vation architect and secretary general of “The Old Town is an asset for Tbilisi, and it down 180 years after its famous resident the Georgian National Committee of the we want to save it,” says Otar Nemsadze, left. The iconic wooden balconied house International Council on Monuments and the recently appointed head of the urban in Gudiashvili Square was destroyed in May Sites (ICOMOS). “The district has specifi c planning department by Tbilisi’s city coun- 2012, sparking a wave of condemnation boundaries and is subject to strict regu- cil. An architect with a specialization in ur- and stoking concerns about the future of lations to develop and restore it. So far, ban planning and management acquired Tbilisi’s Old Town. lack of political will and transparency in in the Netherlands, Nemsadze has worked Tbilisi’s Old Town is today a mosaic of the decision-making process has failed on conservation of cultural heritage in the colorful wooden balconies, tin roofs, crum- to protect it and the result is the current past, like in Dartlo village, Tusheti. bling façade, and rubble of collapsed vulnerable state.” “In the past, the approach was to buildings. Past interventions attracted Lack of accountability is another issue. do things very fast, to see the results im- According to the Tbilisi Heritage Group, mediately, but you preserve you cultural an advocacy group, “no permission had heritage balancing conservation, infra- been granted to demolish [the Lermon- structure, and the role it plays in the city development strategy,” he told Investor. ge. In 2007, a building classifi cation map was published: red-listed buildings are national monuments, and hence cannot be touched, while yellow-listed buildings require at least that the façade must be

28 | Investor.ge • DECEMBER-JANUARY/2014-15 preserved. The map, currently valid, is based company pro- work there in 2005. predominantly red. viding geo-physical “The Old Town is an “There are two “We are working with the Ministry of investigation, was main elements in Culture to update the map and carry commissioned a study asset for Tbilisi, and Betlemi,” explains Tsit- out an assessment,” explains Nemsadze. in Sololaki in 2007 and sabadze. “One is the “With that we can plan the conservation, found that in some we want to save it,” methodology used dur- the infrastructural intervention, and the cellars and basements ing the rehabilitation, fi nancial support we need.” the water was up to says Otar Nemsadze, which followed strict The Georgian Parliament has pro- 1m deep. “The infl ows rules set internation- posed a draft law on cultural heritage that favor the sliding of the recently-appointed head ally, the other was the has the potential to remove the protected ground, largely made of the urban planning community-based mo- status of 6,300 historical sites across the of carryover material, bilization. The inhabit- country. while the sliding sur- department by Tbilisi’s ants became part of “The public outcry forced the parlia- face is probably the the project; they were ment to postpone the hearing, but the metamorphic rocks city council. consulted; they worked bill is still standing; it hasn’t been revoked,” above,” Piccolo ex- on the houses and the stresses Tsitsabadze. plains. monuments, like the Eurekos’ study aimed at mapping the restoration of Ateshgah, the ancient fi re- THE ENEMY BELOW underground facilities’ network, so it was worship temple.” Sololaki’s chief enemy though comes limited to a maximum of 5m deep, and a The program lasted over 10 years, from within. clear vision of the downward movement included training on traditional crafts- “The area is gradually sliding down would require going down to 15-20m manship, and also set up a homeowner towards the river, mainly due to major deep. association in the form of a non-registered water infl ows underneath the old district,” “Reinforcing the houses makes little union. Funds and technical assistance explains Nemsadze “and the assessment sense, as what is moving is the whole pack were largely provided by Norway’s Ministry would show which houses are in urgent underneath, even Sioni Cathedral has of Foreign Affairs through the Directorate need of drainage.” an inclination of about 10cm,” adds Pic- of Culture Heritage of Norway. The situation probably got worse after colo. A reorganization of the water system Best practices abroad can provide the 2005 earthquake, a relatively mild would be a fi rst step to tackle the problem, additional guidelines. In November, the shock, which seems to have affected either through the existing channels or a U.S. Embassy invited to Tbilisi two American water channels. Italian engineer Mauro new drainage network. However, any experts in conservation and preservation Piccolo, who manages Eurekos, an Italy- intervention needs a previous thorough of cultural heritage. assessment and constant monitoring. “I have always had a fondness for “A modern technology like Lidar, a older buildings. They contain your history; remote sensing technology used to map they tell stories,” said Peg Breen, president terrain movements, matched with Soviet of the New York Landmarks Conservancy, surveys and data, would already illus- one of the United States’ oldest and largest trate where and how much the hills have preservation organization. moved, as the sliding is not homogeneous Since its establishment in 1973, it has in one single direction.” loaned and granted over $40 million and Piccolo said that the municipality has provided extensive technical assistance. drilled and installed instruments to detect Breen thinks that a strong landmark the level of water in the soil near Sioni law is paramount, just as it is to bring to- Cathedral. More extensive work, however, gether residents, city representatives and would require more intensive investment developers. – and there is no clear indication from The latter are the key for new con- the city that it has allocated the funds for struction. modern methods like Lidar. “Appropriateness is an elastic term,” says Breen. “If you are in an area where TIME, MONEY, AND COMMUNITY all the buildings are at a particular height, Preservation doesn’t come cheaply, pretty consistently, does [your new build- or swiftly. But it pays back. ing] fi t in? Obviously you are building a The Betlemi micro-quarter in the Old [new one], but there are ways to echo Town is an example of how conversa- windows or echo lines in the buildings. tion can, and should, be done. ICOMOS, We often support new development, but based in that same neighborhood, started something that respects the character of a preliminary study in 2000, and the fi rst the buildings that are there.”

DECEMBER-JANUARY/2014-15 • Investor.ge | 29 TTHEHE EECONOMICSCONOMICS OOFF PPRESERVATIONRESERVATION

INVESTOR.GE SPOKE WITH TWO SPECIALISTS IN PRESERVATION AS PART OF THE SERIES OF EXPERTS INVITED TO GEORGIA WITHIN THE CULTURAL HERITAGE A UNIVERSAL VALUE PILOT PROJECT FROM THE US EMBASSY IN GEORGIA IN COOPERATION WITH LENA KILADZE AND THE AMERICAN FRIENDS OF GEORGIA. Historic Pennsylvania Station in New York City

SAVE A BUILDING, CREATE A JOB it is New York. People come for its citizenry; it certainly draws tourism.” historic landmarks; for the Empire State Breen stressed that historic architec- n the tug a war between development Buildin; for the Chrysler Building; for ture is a resource – one that should be and preservation, the fi ght in Tbilisi our museums; for Central Park, which promoted just like every other resource Igoes, nearly always, to development. is landmarked, too,” she said. the city is using to build up the economy. Two top preservationists from New Kelly added that while there is “ten- Preservation creates jobs for architects, York City, however, came to Tbilisi with sion” between the real estate community craftspeople, historians and scores of a different message: preserving the city’s and the preservation community in New other professionals who are necessary historic architecture can also bolster the York City, statistics have shown that components of the process, she noted. economy, attract investment and create “neighborhoods that have been preserved “When you lose an old building, it jobs. actually have higher property values is just gone. You want people who are In New York City – undoubtedly than comparable neighborhoods that are going to protect your history, not destroy not a city that is shy about building new unprotected.” it,” Breen said. high-rise buildings or unfamiliar with the Peg Breen, the president of The New “It can be very important to Tbilisi’s 21st century attraction of the glass offi ce York Landmarks Conservancy, noted economic future if they promote the complex – preservation has brought tour- that unique architecture also attracts needed resources in buildings that they ism, investment, employment and higher investmen. For New York City, pre- have, let alone that it is going to be a nicer property values. served brownstone buildings and historic city just to live in.” The city’s tourism sector has been a neighborhoods have been a magnet for She noted that while there is a clear winner when it comes to preserv- the city’s budding tech industry. “Shanghai complex” at the moment in ing the jewels of the city, noted Tara “People want to live in historic dis- international urban development where Kelly, the executive director of Friends tricts; in New York City the tech industry “everyone thinks ‘oh, we need giant of the Upper East Side Historic Districts. has become much more important. They glass towers.’” Property values have also benefi ted, she are not going into glass offi ce buildings. “Nobody comes to a city to see a noted – making it more attractive for They are going into funky old buildings giant glass tower. I don’t think there are responsible investment. in interesting neighborhoods,” she said. many people who are going to go home “People come to New York because “It affects the quality of life of the and say ‘you know, you have got to go to

30 | Investor.ge • DECEMBER-JANUARY/2014-15 Tbilisi to see the giant glass bridge,’” MAIA EDILASHVILI she said. Developing “It is the uniqueness and the char- bilisi’s “concrete canyons” and acter and the history that really draws congested roads are driving new people.” Tdemand for suburban housing, Tbilisi’s say urban specialists and developers. GETTING THE LAW RIGHT In the past, living in a suburb – To make the economic argument Suburbs Varketili, Vazisubani, Gldani, Temka, for preserving a building, however, Mukhiani and Didi Dighomi– was citizens have to have the proper tools widely looked down upon, but now to advocate and protect the city’s ar- moving to a suburban area is coming chitecture and green spaces. into fashion, according to urban planner Both Breen and Green stressed Lado Vardonasindze. the importance of having a strong TBILISI’S OUTLAYING “We are witnessing a suburbaniza- legal basis to anchor the argument for tion, where many economically strong preservation. In New York, it is the NEIGHBORHOODS households prefer living in ecologically Landmark Law, which was passed AND ADJACENT clean areas surrounded by nature and in response to public outrage of the VILLAGES ARE PRIMED beautiful landscapes, and this process city’s decision to tear down the historic shows also the economic differentiation Pennsylvania Station building in 1963. FOR A MAJOR of our population,” believes Vardonasin- The law is one of the strongest SHIFT FROM SOVIET- dze, a professor at Georgian Technical in the nation and provides residents APARTMENT BLOCK University. According to Vardonasindze, and policy makers with the tools to PLANNING TO POSH this trend is a response to overpopulation advocate for and protect the buildings, in Tbilisi’s prestigious central districts landmarks, green spaces, and neigh- NEW RESIDENCES – Vake, Vera and Saburtalo. “Concrete borhoods that are a vital part of the city. AND BUSINESSES. canyons have occupied these districts, Breen noted that in Tbilisi, in ad- dition to a “good law that talks about the importance of protecting historic architecture and an agency that focuses on that, you need a place where the public can have a say.” The fi rst step forward for Tbilisi, noted Green, should be making the case for preservation. “Buildings are the our most tan- gible evidence of our history and our past. They should be celebrated. Even parts of our past that are diffi cult. It is important to maintain the memories for the future, for future generations,” she said. “Once they are gone, they are gone. So any activity to alter any aspect of historic Tbilisi should be considered very carefully and thoughtfully.”

Hualing Group Georgia

DECEMBER-JANUARY/2014-15 • Investor.ge | 31 32 | Investor.ge • DECEMBER-JANUARY/2014-15 DECEMBER-JANUARY/2014-15 • Investor.ge | 33 and as a consequence, we will see that, Tbilisi and the village of Kodjori. The meter space, with a starting price of $ fi rst, high-income populations will be complex unites 30 two-story houses 1,000 per square meter, which is close to moving to suburban areas, while later, with a green terrace, while on the inner the price as one typically fi nds in central middle-class households will follow area – a 2,500 square meter space – parks Tbilisi districts. suit,” he told Investor.ge in an interview. and recreation facilities will be arranged. Expanding to the East: A New SunCity Tskneti, a Georgian-Ameri- Logistics Center and Shopping Mall DEVELOPMENT IN THE ‘BURBS can Village located approximately seven Tbilisi’s suburbs are attracting inves- The Georgian government changed km away from Tbilisi center, illustrates tors not just for developing residential Tbilisi’s boundaries in 2006, a move this trend. The residence complex unites space, but also for commercial activities. that has helped foster suburban devel- 41 privately owned, luxury residences, Such territories, when used wisely, can opment. The new borders expanded complete with a parking area, private generate both capital and trust for the the capital from 380 square km to 500 roof-top terraces and balconies with a country, government representatives say. square km to encompass several adja- panoramic view of Tbilisi’s skyline. Opened in September 2013 by Aus- cent villages – Tskneti, Kiketi, Kodjori, According to Georgian businessman trian transport and logistics company Betania, Tabakhmela, Shindisi, Tsavkisi, Vasil Tsotadze, who is in charge of the Gebrüder Weiss (GW), a modern logis- and Oqrokan - previously considered project, this is a “different-concept” set- tics center near the Tbilisi International recreation zones. tlement. “When you get here exhausted Airport, with about 10,000 square meters And businesses were quick to re- and stressed driving from Tbilisi, you of transhipment and logistics space, has spond. Georgian investment company will have a rest and unwind,” he told already started to serve as a central hub Delta Invest, established in 2010, has Rustavi 2’s Business Courier. Future for the Caucasus. The company offers developed a project for a gated commu- residents of these townhouses, who will multiple services including overland nity called Atrium on a road connecting buy both space and a new lifestyle image transport, air and sea freight and logistics here, have to buy at least a 150 square solutions. GW invested approximately

34 | Investor.ge • DECEMBER-JANUARY/2014-15 $10 million in this project. Olympic Preparations Accelerate Untapped Potential? In 2015, again in the eastern suburb Another Large-Scale Development Prof. Vardosanidze, who has par- of the city, Tbilisi will see the inaugura- Another development at the Tbilisi ticipated in infrastructure projects imple- tion of yet another grand project. CBD Sea reservoir is the Chinese Hualing- mented by the World Bank, believes that Development, a Georgian subsidiary of Group project, located on a territory of the best thing the Georgian government Quadrum Property Group, an interna- 420 ha between two suburban districts can do to help the natural development of tional development company, will open of the capital – Vazisubani and Varketili. the city is to continue the Tbilisi Bypass an 85,000 square meter shopping and The project envisions construction project, which the previous government entertainment center called East Point. of an Olympic village that will host the launched in 2010 to construct a new East Point Tbilisi will feature a Tbilisi 2015 European Youth Olympic railway route bypassing central Tbilisi. 27,000 square meter outdoor fashion Festival scheduled to start on July 26, as The goal of the project was to move mall on the Kakheti Highway, connecting well as building of a shopping center on hazardous freight away from the center the city center with Tbilisi International a 110,000 square meter territory, with the of the city and open space for new urban Airport, and will cost approximately plan to make it a leading shopping center development. $90 million. in the Caucasus. “This project, among many other A deal has already been reached with Under the agreement, the village benefi ts, has a business angle: we will one of the large retail companies of the – which encompasses nine residential get free territory of up to 80 ha which Kingdom of Saudi Arabia, Al Hokair, blocks, and includes a fi ve-star hotel can be rationally used to arrange a CBD which will be present with 16 brands – will be handed over to the state for a (commercial business district) area as at the opening, the marketing director three-month period in March 2015 – after well as parks and boulevards, which we Teiko Lominadze told an online portal, which it will be sold as private property. currently so badly lack,” Vardosanidze Marketer.ge. said. “This is a historical chance and

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DECEMBER-JANUARY/2014-15 • Investor.ge | 35 we cannot miss it. Let’s move beyond politics, because city development is a phenomenon which has nothing to do with party interests.” A BETTER Vardosanidze told Investor.ge that he has voiced his recommendation at a recent meeting on modern challenges facing urban development and during a series of consultations with the fi eld’s experts that was initiated by city hall. TBILISI MORE PLANNING, NEW STRATEGY “We will identify where the loopholes are in this area and come up with THERE ARE A MULTITUDE concrete decisions,” Tbilisi Mayor Davit Narmania told Investor.ge before the OF PROBLEMS FACING meeting. “Previously, there was no plan for spatial development of Tbilisi. In TBILISI – THERE IS TRAFFIC, December, we will launch work on that and submit it for consideration next UNEMPLOYMENT, year.” OVERCROWDING, Nino Gogoberidze, chief of the Tbilisi architecture service, told Investor.ge DIMINISHING GREEN SPACE, that the architectural plan of Tbilisi’s suburbs in not currently on the agenda INCREASED POLLUTION… but will be detailed in the capital’s strategic plan. According to Gogoberidze, THE LIST IS LONG AND, WHILE PROBABLY NOT UNIQUE FOR by the end of December two tenders will be announced for a strategic plan CITIES ACROSS THE GLOBE, for the city and on the general plan for land use, where “the capital’s future IT IS CONCERNING FOR development will be outlined, including cooperation with the private sector.” THOSE WHO CALL TBILISI However, Vardosanidze maintains that there is no need for new tenders and HOME. INVESTOR.GE SPOKE no need for spending money because such plans were developed just a few- WITH FOUR TBILISIANS – ONE years ago “at a pretty high level.” What is needed now “are just corrections.” EXPAT AND THREE LOCALS Instead, he believes that the most important thing for Georgia in terms of urban – WHO HAVE BEEN VOCAL development is to introduce the United Nations’ City Development Index. ADVOCATES FOR ACTION TO The Urban Indicators Programme of the UN Human Settlement Programme HELP OUR CITY BE ITS BEST. (UN Habitat) ranks cities according to their level of development. “We need these indicators to be able to measure the city’s ‘temperature,’ and this will largely benefi t potential investors, too, in the decision-making process,” Vardosanidze said. PLANNING FOR SUCCESS t can be diffi cult to pinpoint exactly what makes a city great. Is it the Iculture? The public transportation? The night life? The cost of living? Acces- sibility of housing? It can be one – or a combination – of a thousand little things that make citizens’ lives easier or better or more enriched. But one common denominator is good planning. Before a city can boast of its great cultural events or its modern, accessible metro line, or even its cost of living, there has to be the will – and the policy – to get there. “You cannot expect things to just change on their own. That is the whole point of governance…to ensure that the

Lisi Development, Lisi Lake, Tbilisi (Mari Nakanimamasakhlisi) city is a livable city, that strives towards a

36 | Investor.ge • DECEMBER-JANUARY/2014-15 high quality of life,” said Eric Barrett, the mitted to be “good leaders.” the prices of their own apartments and executive director of the non-government “They need to be good leaders; they houses go down,” he said. organization JumpStart. need to make decisions based on the What is happening in Tbilisi has “A high quality of life can mean dif- people instead of special interests and happened in countless cities around the ferent things for different people but it is themselves. They need to understand that world, Davitashvili said – the difference one of those things that people know it they themselves are not representative of is that Tbilisi can learn from others’ when they have it,” he added. the population, and they need to under- mistakes. Under the Soviet Union, everything stand that the majority of the population “All the people that I speak to from was planned. The city of Tbilisi had an in Tbilisi does not have cars; they use Europe are saying we [made these] offi cial master plan that dictated all de- public transportation,” he said. mistakes and then we learned from the velopment in the city, top down, from the “They need to understand that public mistakes... But here you can stop it be- number of apartments to the quantity of transportation in Tbilisi is terrible. And fore you go that far. You just need people green space. But developing a city in the until they can accept that, why will they who understand how things should work 21st century is not about fi ve year plans prioritize it? They need to understand and learn from them,” he said. or government dictates. the problem.” It requires, noted architect Lena Traffi c, transportation, green space USING TECHNOLOGY Kiladze, an open, professional and public – a triad of problems that require more Tbilisi does not have to reinvent the discussion about what the city needs,as planning and more strategy, noted Nata wheel – cities in Europe and the United city is a live organism. Peradze, the leader of Tbilisi Guerrilla States are turning to technology to give “What the city needs to think about is Gardeners. policymakers and residents the informa- the vision – the city concept for Tbilisi,” Today, she said, the city thinks it can tion necessary to make good decisions and strategic planning,” she said. build everywhere – even the city’s of- for their city and their quality of life. While the city – like the rest of the fi cial recreation areas have been opened “The technology is there, it just takes country – has struggled for the past up for development. a bit of investment on the part of the two decades in the face of constantly Without proper planning, this is government and then they can [use it]. changing situations, Kiladze said there creating problems with air pollution, I don’t think that [Tbilisi Mayor Davit] comes a time when “it is necessary to put traffi c, parking, the loss of green space Narmania doesn’t want to improve the everything together into a sort of vision and diminishing property values, noted situation, he just doesn’t have the right we have for the city – what will be the Nika Davitashvili, an activist with the tools, and he doesn’t have access to the message of the master plan development Tbilisi Guerrilla Gardeners. right information,” Davitashvili said. and the zoning?” “They should understand that by “If they do even half of what is being To do that, however, Barrett stressed, destroying the park in the neighborhood, done [internationally], or even one third the authorities at city hall have to be com- they are hurting themselves because of that, it will be a great thing.”

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DECEMBER-JANUARY/2014-15 • Investor.ge | 37 IF YOU BUILD IT, THEY WILL COME: New Road Projects Key to Investment Outside of the Capital

GEORGIA HAS ITS BEST INVESTMENT CLIMATE TO DATE. IN NOVEMBER, Reconstruction and Development and STANDARD & POOR’S RATING SERVICES AFFIRMED THEIR BB- RATING FOR the Georgian government. GEORGIA AND SET THEIR OUTLOOK TO “STABLE.” GEORGIA ALSO RANKS AT BB- WITH FITCH RATINGS, AND STANDS SLIGHTLY HIGHER WITH MOODY’S The goal is to link one end of Georgia INVESTMENT WITH A BA3 POSITIVE. seamlessly to the other. This is a neces- sary project, and part of a larger theme as COOPERATION WITH OUTSIDE ORGANIZATIONS, SUCH AS THE BIG FOUR Georgia moves to spread the prosperity AND INTERNATIONAL BUSINESSES, ARE A GREAT WAY TO CONTINUE BUILDING GEORGIA’S MARKET BRAND. FOR ITS PART, THE GOVERNMENT IS of success beyond its capital and into WORKING TO BREAK DOWN TRADE BARRIERS, MAKE BUSINESS LAWS MORE periphery regions. APPROACHABLE, AND – OF COURSE – PURSUE MORE PROGRAMS. PURSED Gharibashvili stressed the road’s IN DICHOTOMY, OUTSIDE EXPOSURE WITH INTERNAL REFORM MAKE AN EXCELLENT ROADMAP FOR INVESTMENT SUCCESS. importance for development in western Georgia during a special address on CORDELIA PONCZEK Laura Tuck embarked on a three-day November 19 to mark the 88 kilometers journey through Georgia. of new highway bridging the country’s y linking the central hub of Tuck met with both Prime Minister economic center in Tbilisi to the western Tbilisi to other booming sec- Irakli Gharibashvili and President Giorgi regions. Btors, Georgia vastly diversifi es Margvelashvili. Duringher visit, Tuck The new road will help bolster its options for investment prospects and represented the World Bank as an agency economic growth and create new jobs, makes itself a more tantalizing choice for willing and ready to collaborate with he said, adding that the EU is going to potential business. Now the challenge is Georgia on its goals – like its ambition provide Georgia with 30 million euros to provide the infrastructure to link its to become a regional hub. for regional development. destinations together seamlessly. In the “We continue working with Georgia There are plenty of projects geared to past, the ride between Tbilisi and Batumi to further develop our strong partnership attracting business interest to cities and – or Tbilisi and Telavi – was no joyride. It in infrastructure and to assist the country rural communities beyond the capital. takes hours. It involves much nail biting, in its efforts to become a logistics hub in The Georgian National Investment the occasional colorful metaphor, and the region,” she said, according to a press Agency (GNIA), the government-run perhaps a cow or two in the road. release from the World Bank. Partnership Fund and the World Bank But all that is changing. “Georgia has several comparative itself, to name a few, have a long list of Compare Georgia’s ambition to its advantages, such as its geographic loca- potential investment projects that stretch reality: in the past decade it has gone tion, agriculture and tourism potential, across the country, ranging from the from one international airport to three and, most of all, its talented people. ports, shipping and tourism centers on (with the possibility of a fourth). These Developing and using these assets will the Black Sea coastline to the country’s airports see high traffi c – the number of create further opportunities for growth rich hydroelectric potential. passengers rose from 1.3 million in 2008 and make the country’s economy more But roads – highways, byways and to 5.4 million in 2013. Tourists and busi- inclusive.” the railway – are a crucial part of turning nesses want to be in Georgia; the trick One such project that Tuck visited potentials into profi ts. is getting them to their destination in a was the joint Georgia-World Bank Third quick and stress-free way. East-West Highway Improvement Proj- PAVING THE WAY FOR ect. INVESTMENT INFRASTRUCTURE IS THE TIE THAT Approved in 2009, its completion Currently, the fastest growing regions BINDS is anticipated in June 2015. The cost is in Georgia are hundreds of kilometers In November, World Bank Vice projected at $184.12 million and is co- away from the capital: Georgia’s western President for Europe and Central Asia fi nanced by the International Bank for coast and eastern towns have become

38 | Investor.ge • DECEMBER-JANUARY/2014-15 investment magnets. deep sea port – are also a result of the projects contributed to its historic charm: Kutaisi, home to one of Georgia’s same ambition: Georgia’s steady efforts tourists discover renovated cobblestone two parliament buildings and a gateway to modernize and promote its greatest streets and refurbished heritage sites. to the country’s ports and coastline, is assets. These assets include – as Tuck Investors can fi nd inspiring stories in already benefi ting from the East-West reinforced during her trip – Georgia’s local residents who transformed ruins highway. On November 19 Gharibash- competitive geographic location, its into well-run shops and cafes – havens vili opened a new hotel, Bagrati Plaza, strength in tourism and agriculture, and for tourists. in the city. untapped human capital. The rise of tourism has brought jobs More hotels, spas and other invest- and created a mini-ecosystem of mar- ments are opening across the country THE ROAD TO GROWTH kets, which in turn spur development in areas that have been touched by Georgia offers opportunities in the of further sectors, like manufacturing new road and infrastructure projects. largest growing sectors of the country: (someone has to build those hotels). The government’s Partnership Fund is tourism, manufacturing, agriculture and In his public address to mark the new developing new hotels in Imereti and energy. Another perk: while the eastern East-West Highway reaching Kutaisi, Kakheti – both areas where new roads regions represent Georgia’s homegrown Gharibashvili urged businesses and have been completed. export potential, the western coast is an investors to take advantage of the new In the eastern Kakheti region, towns excellent opportunity for re-export via opportunities the road offers. like Telavi are seeing an uptick in the Black Sea or Turkey. “Soon we will present to the public wine production projects, tourism, and In the west, an excellent example is the concept of regional development, manufacturing following significant Batumi, whose fl ourishing tourist trade which will be a long-term strategy tai- infrastructural renovations and govern- has harnessed the energy of budding hos- lored to a particular region,” he said. ment- and privately sponsored public pitality workers, café owners, and even “I encourage businesspeople to be relations projects. local Batumi designers who are ready to involved in this important project. Now The World Bank estimates there cater to the summer crowds. Anaklia, fur- it is necessary to unite the public and has been $8 million in private sector ther north on the Black Sea coast, is yet private sectors in order to implement investments in Kakheti alone that were another. Recently built spa and wellness projects for the regions.” “spurred by the [the World Bank’s] de- centers, along with charming boutique Cordelia Ponczek is an analyst for velopment project’s renovations.” B&Bs, offer a unique experience for a Warsaw-based think tank. She is con- The “Batumi miracle” and invest- tourists in a spectacular location. ducting research with the Kościuszko ments along the coastline – including In the east, cities like Telavi have wit- Foundation for the 2014-15 academic the Partnership Fund’s plan for a new nessed a rise in tourists after government year.

DECEMBER-JANUARY/2014-15DECDEDEECEMBER-R-JANJAANNUAUARUARARY//2/2014-141 151 • Investor.geInnveests oro .g.ge | 3939 HELENA BEDWELL

Georgian Designer uring one very cold winter evening I made a phone call to my friend DKethy Kvinikadze asking her to at- George Shaghashvili: tend the ”Tbilisi Fashion Week” show with me. Kethy has a very good fashion sense but was never a fan of high fashion shows featuring catwalks and designer brands. A COLOR-RICH LOVE AFFAIR After some cajoling, she fi nally relented and reluctantly agreed to join me for this show. It was going to be a decisive eve- HELENA BEDWELL SPOKE WITH GEORGIAN ning for both of us. We took our designated seats in the carnivorous white tent, giggling DESIGNER GEORGE SHAGHASHVILI ABOUT HIS and joking about our opinions on fashion and what we expected to view that night, LOVE OF COLOR AND HIS SECOND CAREER but nothing could have prepared us for SUCCESS. what we were just about to see. The fashion designer who was putting the show together was George Shaghas- vili. George is one of the fi rst Georgian designers who meant business without any hidden agendas. He doesn’t seek mass production; he doesn’t seek just the acknowledgment of the elite avant-garde society; nor does he try to confuse the public with garments that are not going to

40 | Investor.ge • DECEMBER-JANUARY/2014-15 be worn just once after the purchase. My “Look, pay attention, just how many ration than ever, turning me completely friend Kethy was in love with his creations black shades are out there. They feel to fashion.” immediately -- and not just her -- judging differently when you touch; they all look His marriage took him abroad, fi rst ito by the excited reaction from the packed different,” George said while he rushed Denmark, then Kenya, where he did not audience. to open the door for ladies who came in sit idle: he used a website to market his I spoke with George later. “Why for personalized tailoring. They seemed creations to fi nd a larger clientele and to black?” I asked the artistof these cre- happy with what they saw. fi nd buyers. He was also inspired by the ations.The 42-old designer tells me: “Black “I made a green dress for this girl, colors of Africa. Local tribal accessories doesn’t count as a color, and it is at the imagine that!” he smiled. found a warm home in George’s collec- same time, according to various theories George is a doctor by education, tion, although black and white remain a around the world; there is this huge argu- but found his fame very suddenly during common theme in George’s designs. ment about it — kind of like grey, and I the dark, poor and post-civil war times I still wear a thick knitted sweater I love it!” in Georgia; he was invited to attend a saw in his last collection and one of his George is not your conventional, re- fashion show, and that was when George grey dresses, while his tribal, ceremonial, served designer: he believes that the color decided to have a go at designing his own multi-colored bustier is eye-catching when black deserves the right of existence along style of fashion. He opted to use paper- one fi rst sees it. This is the secret of George with all others. In various cultures this color mâché for this new style of dress, made Shaghasvili. has a different acceptance, like Yin and mostly by medical plaster material – which Before I say farewell to him in his Yang: it represents birth and the beginning Andrew Logan, an English sculptor, per- packed shop, my last question is how he of life in one culture, while other cultures formance artist, jewelry-maker, portraitist handles his difficult Georgian surname embrace this color as a symbol of death. and painter named the best innovative abroad. “I am not going to change my Only a year ago, lovers of George’s idea of the year. hard-to-pronounce name either,” he creations were visiting his small apartment. “I had to sit down and decide for laughed.” I am not staying abroad forever Now these wonderful creations are hang- myself, what did I want to do with my life? and at least I can make them remember ing proudly in his still small but crowded Soon marriage came and my pregnant my Georgia and myself by that, at least.” shop in Tbilisi, where black refl ects and wife showed me the picture of our fi rst Helena Bedwell is the Bloomberg cor- enhances every other color in the room. baby’s ultrasound, giving me more inspi- respondent for Georgia.

DECEMBER-JANUARY/2014-15 • Investor.ge | 41 NEWS

CONTENT

46 AmCham Rountable Event

43 AmCham Board Hosts US Department of State’s 48 CLT, CSR Committees Discuss Proposed Kurt Tong Amendments to Tax Law to Ease Charitable Giving 44 AmCham Elects New Board 49 Member Profile: Sheraton Metechi Palace Hotel 44 New Chairs for CLT, CSR, and Agribusiness Committees 50 Member Profile: Hualing Group Georgia 45 AmCham Tourism Committee to Engage in 51 New Members Drafting of National Tourism Strategy 52 Membership Directory 45 Ministry of Economy, AmCham Tourism Committee 54 Social: AmCham Networking Happy Hour in Discuss Tourism University, New Plans Tiffany Bar, Hotel Riverside 46 IMF Predicts 5 Percent Growth in Georgia 56 Social: American Friends of Georgia Anniversary 46 AmCham Georgia Attends OSCD’s Expert Seminar Gala on Business Integrity 58 Social: US Embassy in Georgia Hosts AmCham 46 AmCham Georgia and EUGBC Host Regulatory Appreciation Cocktail Reception Impact Assessment Workshop 59 Social: Prospero’s Bookshop and Coffehouse 46 AmCham’s Youth Leadership Program Begins celebrates its 15th birthday 48 AmCham’s Agribusiness Committee Meets, 60 Board of Directors Defines Projects for 2015 48 AmCham’s Agribusiness Committee: “Maximizing” Opportunity In EU Association Agreement

42 | Investor.ge • DECEMBER-JANUARY/2014-15 NEWS

AMCHAM BOARD US STATE DEPARTMENT DELEGATION INCLUDED: HOSTS US Kurt Tong, Principal Deputy Assistant Secretary of State for DEPARTMENT OF Economic and Business Affairs Jonathan Katz, USAID Deputy Assistant Administrator for the STATE’S KURT TONG Bureau of Europe and Eurasia

Nicholas Berliner, Deputy Chief of Mission The AmCham Board of Directors hosted Principal Deputy Assistant Sec- Steven Haykin, USAID Mission Director for Georgia retary of State for Economic and Busi- ness Affairs (PDAS) Kurt Tong and his Alexander Sokoloff, Economic and Commercial Offi cer delegation for a private business lunch George Tagg, Foreign Affairs Offi cer meeting on October 29th. AmCham and PDAS Kurt Tong and his team discussed Greg Meier, Georgia Desk Offi cer medium - and long - term business issues KG Moore, Deputy Chief of Political and Economic Affairs in relation to US trade and investment in Georgia. The meeting took place Carol Wilson, Economic Growth Offi ce Director one day before bi-lateral meeting of the Economic Working Group, within Anson McLellan, Economic Offi cer the US – Georgia strategic partnership commission.

DECEMBER-JANUARY/2014-15 • Investor.ge | 43 NEWS

AMERICAN CHAMBER OF NEW CHAIRS FOR CLT, CSR, AND COMMERCE IN GEORGIA ELECTS 10 BOARD AGRIBUSINESS COMMITTEES MEMBERS AmCham is pleased to announce as AmCham Georgia’s executive director At the annual General Assembly new chairs for the CSR and Agribusi- in 2011-2012. meeting on October 23, AmCham held ness Committee, as well as for the legal elections for 10 seats on the Board of Directors and offi cer positions. With a side of the Commercial Law and Tax COMMERCIAL LAW & TAX (LE- standing-room-only turnout of members, Committee.The Chamber thanks all the GAL SECTOR): the following Board members and of- fi cers were elected to serve a two-year past and current committee chairs for Lasha Gogiberidze, founding part- term. the instrumental contribution they have ner of BGI Advisory Services Georgia/ made during their tenures. director of BGI Legal; Sarah Williamson, Co-owner and Vice President of UGT – President Committees drive AmCham’s suc- Lasha Gogiberidze is a founding part- cessful lobbying efforts with the gov- ner of BGI Advisory Services Georgia Michael Cowgill, President of Georgian American University (GAU) – ernment; the invaluable work, time and and the director of BGI Legal. Previ- First Vice President energy that member companies and their ously, Lasha worked at Ernst & Young’s representatives put into committee work Georgian offi ce. Lasha graduated from Irakli Baidashvili, Executive Vice President of GMT Group – Vice plays a vital role in defi ning AmCham’s Tbilisi State University, has a LL.M. President & Treasurer position – and crafting AmCham’s re- from the University of Illinois, and is sponse – to the laws, amendments and licensed to practice law in NY state. Esben Emborg, Principal Partner of SEAF – Director tendencies that affect the country’s busi- ness environment. CSR COMMITTEE: Lasha Gogiberidze, Partner BGI Paul Clark, founder TBSC; Advisory Services – Director AGRIBUSINESS COMMITTEE: Paul Clark is the Director and Presi- Steve Johnson, General Manager of Dr. h.c. Sascha Ternes, Deputy dent of TBSC. He has been helping Betsy’s Hotel – Director Chief Executive Offi cer at JSC Bank boards of directors and governments Ted Jonas, Finance & Projects Partner of Georgia; develop new strategies and methods for of DLA Piper Georgia – Director Prior to joining Bank of Georgia in more than 25 years. He has worked in

Ketti Kvartskhava, Partner of BLC Law 2014, Sascha was a Member of the Man- Georgia for both business and govern- offi ce - Director agement Board of ProCredit Bank Geor- ment for nine years. His industry experi- gia since April 2007, where he initially ence includes manufacturing, real estate, Robin McCone, Director, PricewaterhouseCoopers – Director served as Chief Financial Offi cer and food production and secondary process- then as General Director. Prior to joining ing, logistical parks and light industry. Chris Schlueter, Country Head, BP ProCredit, he held executive positions for Georgia - Director 13 years in a German Technology Group. Rusudan Kbilashvili, Wissol Group; Badri Japaridze, Deputy Chair of the Rusudan Kiblashvili has a Master’s Supervisory Board of TBC Bank, remains George Welton, Founder, GeoWel degree in Public Administration. She as member of the Board of Directors until his term expires next year. Research; attended the Georgian Institute of Pub- We would like to extend our sincere George Welton came to Georgia in lic Affairs (GIPA) Tbilisi and holds a gratitude for the interest shown in the election by all candidates and mem- 2004 as a university lecturer. He founded Bachelor’s Degree in Western European bers. GeoWel Research in 2009. His com- Languages and Literature, State Univer- The meeting today was followed by an update from the US Embassy: James pany conducts analysis work for large sity. She has worked for the Georgian Hine, Regional Security Offi cer, and Ju- international organisations, including Times, Daily Tribuna, Georgian Business liette Morgan, CDC Country Director. KG Asian Development Bank, KfW, GIZ, Week and Sakhelebi since 2001. She is Moore, ex-offi cio member of the Board of Directors of AmCham and Deputy USAID, CARE International, Mercy co-founder and PR Director of NGO Chief of the Pol/Econ section of the US Corps and Oxfam as well as for private Social Care International Organization Embassy, facilitated the elections. investors and companies. George served (SOCIO).

44 | Investor.ge • DECEMBER-JANUARY/2014-15 NEWS

AMCHAM TOURISM COMMITTEE TO ENGAGE IN DRAFTING OF NATIONAL TOURISM STRATEGY

Managers from the major hotels in Tbilisi. Not pictured, Steve Johnson, Betsy’s Hotel

On November 20, the AmCham Tour- Mamatsashvili and the World Bank’s successful tourism products for Georgia, ism Committee was invited to engage in Sustainable Development Sector Leader prioritizing current and future challenges the development of the national tourism in the South Caucasus Region Ahmed facing the industry, identifying and ad- strategy that the World Bank, Ministry of Eiweida met with the committee to dressing skills needs, and streamlining Economy and Sustainable Development present industry trends, and to discuss to effi cient and effective private sector input of Georgia, and Georgian National Tour- methodology of the tourism strategy cur- toward tourism development. Over the ism Administration (GNTA) are working rently underway. AmCham will engage coming weeks, the Tourism Committee on, which will be fi nalized in spring of as a partner in the consultative process to will develop comments and input on the 2015. Deputy Head of GNTA Rusudan- give input on identifying and marketing draft strategy. Ministry of Economy, AmCham Tourism Committee Discuss Tourism University, New Plans

The Georgian National Tourism Agency (GNTA) has a new with the French embassy in Georgia on a feasibility study for director and a new agenda, including plans to build a convention a tourism university. The government is prepared to provide center, open a tourism university and secure CNN advertising the building, according to the economy ministry, but sees the about Georgia in Eastern Europe and the wider, global audience. university as a private business that should be led by a well AmCham Tourism Committee members and Executive know, international school. A selection process for a school to Director Amy Denman met with Deputy Economy Minister help manage the university is scheduled for 2015. Keti Bochorishvili on December 2 to discuss the agency’s plans. Other plans include a new convention center for Tbilisi and Currently the Ministry of Economy and GNTA are working a tourism-related conference in the capital.

DECEMBER-JANUARY/2014-15 • Investor.ge | 45 NEWS

IMF predicts 5 percent growth in Georgia

Growth in Georgia is expected to “Growth of economy is a challenge reach 5 percent in 2014-15, according to but the biggest challenge is [securing] Azim Sadikov, IMF Resident Representa- growth that delivers jobs,” Azim said at tive in Georgia, who presented the IMF’s the meeting. latest Regional Economic Outlook to the Azim also spoke about the situation in AmCham membership on November 28 the region. at the Sheraton Metechi Palace Hotel. He said that since Georgia is less ex- AMCHAM YOUTH LEADERSHIP The Russia-Ukraine crisis has had limited posed to the Russian economy than other PROGRAM’S FIRST SESSION ON economic impact so far given Georgia’s countries in the Caucasus and Central Asia LOBBYISM AND GOVERNMENT limited (but growing) trade links with Rus- it helped the economy to cope better with RELATIONS sia. However Georgia needs to step up the repercussions of the slowdown in Russia efforts to maintain a revival of growth. and the rouble’s depreciation. On October 13 AmCham Youth Lead- ership Program participants attended the fi rst mentorship session led by British Ameri- AmCham Georgia attends OSCD’s Expert can Tobacco’s ZviadSkhvitaridze who spoke about government relations, lob- Seminar on Business Integrity bying and its specifi cities in the Caucasus. During his lecture, Zviad explained to AmCham Georgia was represented in the ACN region. students the peculiarities of lobbyism in the at the OSCD’s fi rst anti-corruption network The seminar combined expert presen- region, its history and companies’ efforts (ACN) expert seminar on business integrity, tations, working in groups and round-table to achieve results. Zviad also discussed the that took place on November 10-12 in discussions. importance of established contacts in the Istanbul. The expert seminar brought together government for successful lobbying, using The seminar provided a forum for experts from the ACN public bodies deal- examples based on real-life experience. learning and sharing good practices on ing with business integrity, as well as repre- business integrity through discussions on sentatives of business associationsthat are the role of the government, business as- engaged in promoting business integrity sociations and companies to promote among their members and representatives NCDR’S GIORGI CHALADZE business integrity, as well as the potential of companies promoting compliance and SPEAKS WITH STUDENTS ON ADR for collective actions for business integrity integrity measures in their operations. STRATEGIES

AmCham Georgia and EUGBC Host “There are three apology strate- gies: strategic apology, compulsory or Regulatory Impact Assessment Workshop mechanical apology and real/genuine apology,” Giorgi Chaladze, Founder of AmCham and EUGBC, in partner- smart regulation. AmCham Commercial the National Center for Dispute Resolution ship with the support of the Ministry of Law and Tax Committee Chair and mem- told AmCham Youth Leadership Program Economy and Sustainable Development, ber of the Board of Directors Lasha Go- participants on December 2 at his session hosted a two day Regulatory Impact As- giberidze spoke on “Smarter regulations on Confl ict Psychology and Alternative sessment workshop (Nov 11-12) for senior to support the business community.” He Dispute Resolution. level policy makers at the Courtyard Mar- stressed that imposing regulations “only for Giorgi described a multiple-step riott Hotel. The workshop was opened by the sake of regulating” will have a nega- framework that one should use when MikheilJanelidze, First Deputy Minister of tive impact on business, employment and making a genuine apology - admitting the Economy. the economy. responsibility, expressing remorse, choos- The goal of the workshop was to for- A well-established practice in OECD ing the right time, saying I’m sorry and that malize and streamline the RIA process in countries, RIA has been implemented as it won’t happen again being the most Georgia. a cornerstone of regulatory reform policies important steps in apologizing. The workshop was led by international to sustain and improve national compe- “Never say “forget it”, told Giorgi to expert Charles Montin, who trained par- tiveness by ensuring an optimal regula- students, stressing that it’s the worst word ticipants on international best practices in tory framework for business operation and one could say as it doesn’t help confl icted RIAs, the purpose and justifi cation of RIAs, growth. AmCham thanks member com- parties to move on and apologize ac- and the importance of evidence-based pany JTI for the support for the workshop. cordingly.

46 | Investor.ge • DECEMBER-JANUARY/2014-15 NEWS

DELOITTE’S JOHN ROBINSON TRAINS STUDENTS ON PRESENTATION SKILLS “Presentation skill is a life skill, as you do it every day,” said Deloitte’s John Robinson during his Presentation skills workshop with AmCham Youth Leader- ship Program participants on October 31. In his workshop, Robinson gave students concrete tips on how to tailor presentations to meet the needs of the audience; the impact of visual, vo- cal, and verbal messages; and the necessary skills for improving their impact during presentations and many others. The workshop was followed by a practical exercise where students were able to make short presentations about their chosen topic and receive men- tor’s and students’ feedback.

MICROSOFT’S DAVID ASATIANI BRIEFS STUDENTS ON IPR ISSUES Microsoft Georgia’s General Manager David Asatiani hosted the second mentorship session for AmCham Youth Leadership Program participants on October 23rd at Microsoft’s offi ce. Top students from the Free and Agricultural Universities, Caucasus University and GAU engaged in a very lively discussion on intellectual property rights and challenges Georgia faces with regard to their protection and enforce- ment. David believes that signing of the association agreement will speed up the process of protecting these rights, which are considered a key driver for innovation and economic growth worldwide. David also spoke about the consequences of using unlicensed software and answered many questions about his vision of the solution of this problem in Georgia, reasons behind the existence of illegal software, as well as Microsoft’s expansion plans in the country, and many others.

GRANT THORNTON’S NELSON PETROSYAN SPEAKS WITH STUDENTS ON CONSULTATIVE SELLING Grant Thornton’s Country Managing Partner Nelson Petrosyan shared best practices in Consultative Selling to future business leaders who are participants of the AmCham Youth Leadership Program on November 14. “Trust is the art of consultative selling,” told Nelson to students while explain- ing the attributes of an effective consultative salesperson. “If you earn trust, you have the pole position,” he emphasized, adding that consultative selling is more about listening than offering, and that it’s a two-way communication. Nelson also spoke about the shifted role of a leader who nowadays is no longer a shepherd, but rather a person who creates new leaders and pushes them out of their comfort zones. The session was followed by a practical exercise during which students had to work in teams and come up with top three behaviors that work in favor of and three that work against, an effective consultative salesperson.

GAU’S PRESIDENT MICHAEL COWGILL SPEAKS WITH STUDENTS ON BUSINESS COMMUNICATIONS “Don’t communicate by email anything that you don’t want to see on the front page of the newspaper the next day. Write in an email what you would write on a postcard,” told GAU President Michael Cowgill to AmCham Youth Leadership Program participants on November 20 at the Business Com- munication workshop. Michael spoke about the creation of meaning stressing that it is the re- ceiver’s mind that creates meaning, rather than a person who communicates to the receiver. He also stressed that communication is like a grapevine, es- pecially in Georgia, where word of mouth far exceeds any form of marketing. The business communication workshop also covered ethics, communica- tion styles, interpersonal communication and many other topics.

DECEMBER-JANUARY/2014-15 • Investor.ge | 47 NEWS

AMCHAM’S AGRI-BUSINESS COMMITTEE: “MAXIMIZING” AmCham Agri- OPPORTUNITY IN EU ASSOCIATION AGREEMENT business Committee Investor.ge asked the new co-chair of sectors having returns of over 30%. The Meets, Defines the Chamber’s Agribusiness Committee, biggest challenge for investors in the Projects for 2015 George Welton, to outline the commit- sector, in my opinion, is management. tee’s goals and priorities for 2015. The It is hard to fi nd managers who combine On November 4, the Agribusi- ness Committee met at the Am- committee is chaired by Welton and the right international expertise and the Cham offi ce to prioritize its projects Sascha Ternes. local sensitivities necessary to work in for the next year, including plans to What is the top priority for the rural Georgia. look at the issue of local sourcing. committee moving into 2015? For processors the opportunity is also Clearly, Georgia produces high quality agricultural products, The priority of the committee is to large. As the sector modernizes, more but processors and consumers still help facilitate dialogue between busi- and more of it will move from home- often fi nd it hard to source these ness, government and the NGO sector. production to products from branded products locally in a way that If government policy in this area better outlets like big processors, restaurants, works for their businesses. Am- Cham will be spending the next refl ects market needs then it will have hotels and large retailers. For them the few months identifying some of the a stronger chance to increase outputs, biggest challenge is reliability of qual- reasons for this and trying to help incomes and employment across the ity and quantity of supply. As a result, producers and consumers better country. Specifically, 2015 will be a instead of focusing on processing or communicate in order to more effectively source locally. huge year, as it will see the beginning of selling, they are spending a lot of time AmCham Georgia committees the implementation of the Association ensuring quality of supply of inputs. are working closely with the busi- Agreement and this represents a huge Who can benefi t from being part ness ombudsman’s offi ce and the opportunity for the country, but also of the committee? government on the current draft of the agricultural land law. The includes some risks. We will try to work Any member who is connected to the chamber remains opposed to any with members and the government to food sector can benefi t from the commit- law that has the effect of restricting ensure that it is implemented in a way tee. It is already facilitating exchange legitimate agricultural investment in Georgia. that will maximize business growth and of knowledge and experience on issues ‘International investment not agricultural output. connecting to sourcing and sanitary/ only brings financial expertise, What are the biggest potential phyto-sanitary standards, and in the new but perhaps more importantly, challenges for businesses investing in/ year, we will deepen dialogue with the essential management skills and technical expertise. This is essential working in agribusiness in Georgia National Food Agency to ensure that our to growth in this key sector and, in today? members are able to engage in discus- turn, are crucial to increasing em- When thinking about the food sector, sion about changes in that area. This, ployment, reducing poverty and we need to distinguish between primary therefore, can include primary produc- enhancing economic growth’, said George Welton, Co-Chair of producers and everyone else. The agri- ers, processors, retailers, restaurants, the Committee. cultural sector has some huge potential hotels, farm input suppliers and rural- upsides, with some primary producing development-oriented NGOs. CLT, CSR Committees Discuss Amendments to Tax Law to Ease Charitable Giving

The AmCham Commercial Law and Tax (CLT) Committee regarding charitable giving. and Corporate Social Responsibility (CSR) Committee held Members also discussed the most common concerns from joint meeting on October 17. foreigners regarding new visa regulations, including the fact that Members discussed legislative initiatives for the stimulation many foreigners who already are in Georgia, are forced to go of charitable giving from corporations. Currently some legal back to their home country and to apply for long term Georgia initiatives from NGO side have been frozen from government, visas. AmCham CLT Committee sent a letter to Government which will be further discussed by the CSR committee with requesting a 6-month to one year moratorium which discussed member companies to identify problems which they have faced “unintended consequences of the new law.”

48 | Investor.ge • DECEMBER-JANUARY/2014-15 NEWS

THE SHERATON METECHI PALACE HOTEL TO UNDERGO $25 MILLION TRANSFORMATION

The Sheraton Metechi Palace, Tbilisi’s iconic 5 star hotel, is to visitors to Georgia, and we are delighted to invest in its future. be dramatically transformed by a major investment that will allow “As one of the foremost overseas investors in Georgia, we are the hotel to be restored to its full glory. proud to enable the restoration of this landmark property. This in- To facilitate the $25 million refurbishment program to take vestment demonstrates our continuing commitment to Georgia.” place, the hotel will close on December 1, 2014 and is scheduled In an interview with The Financial, the hotel’s general man- to re-open again in early 2016. ager, Andreas Heidingsfelder, said that the rehabilitation of the The transformation of the hotel into a property offering top- hotel is a “top priority” for RAKIA Group Georgia. “Rooms, restau- tier facilities for well experienced travelers is being enabled by rants, modern technologies and additional facilities will perfectly an investment by the government of Ras Al Khaimah, which has representing the Sheraton brand in the future,” said Heidingsfelder. owned the Sheraton Metechi Palace Hotel since 2007. The landmark hotel, which was opened in 1989, will be up- graded with state-of-the-art fi tness and spa facilities, as well as SHERATON METECHI PALACE HOTEL new restaurants, bars and an exclusive club lounge. The hotel’s *Sheraton Metechi Palace Hotel was the fi rst 5-star interna- conference and events center will be further expanded, with its tional hotel in the entire Caucasus region. An acclaimed leader of facilities being upgraded with the latest amenities and the signa- the international hotel scene in Georgia, the hotel is perched on ture services of the Sheraton brand. The hotel’s guest rooms will be 26 acres of pristine land, offering breathtaking panoramic views of completely re-confi gured so that, post-renovation, the hotel will the city and mountains, an environmentally clean location, high feature a total of 220 luxurious guest rooms, club rooms and suites. security, and it enjoys a solid reputation for service excellence. The “Guests will still recognize the new Sheraton Metechi Pal- Sheraton Metechi Palace Hotel is managed by Starwood Hotels ace Hotel by its signature lobby but apart from that it will be a & Resorts Worldwide, Inc., one of the world’s leading US-based completely new product,” said Mr. Thomas Willms ,Svp, Regional hotel management companies. Dir. East & Central Europe, Starwood Hotels & Resorts. “All hotel facilities, the rooms and public spaces will undergo an extensive SHERATON HOTELS & RESORTS transformation and will be upgraded. We highly appreciate this Sheraton helps guests make connections at more than 400 signifi cant investment of the government of Ras Al Khaimah that hotels in nearly 70 countries around the world. The brand recently enables Sheraton Metechi Palace to undergo this transforma- completed a $6 billion global revitalization and is now in the tion into a hotel that will be a landmark for both them and the midst of an $8 billion global expansion over the next three years. country of Georgia.” Sheraton is owned by and is the largest and most global brand On behalf of the Emirate’s ruler, His Highness Sheikh Saud bin of Starwood Hotels & Resorts Worldwide, Inc., one of the leading Saqr Al Qasimi, James Buchanan, Chief Executive Offi cer of Ras Al hotel and leisure companies in the world, and with close to 1,200 Khaimah Development LLC, said: “The Sheraton Metechi Palace properties in 100 countries and 181,400 employees at its owned Hotel is a synonym for the hospitality of Tbilisi to many international and managed properties.

DECEMBER-JANUARY/2014-15 • Investor.ge | 49 NEWS

GEORGIA: A NEW LIFE FOR THE TBILISI SEA

Two years ago, the Chinese-owned Sea Plaza, 2 million square meters (the Hotel. Hualing Group Georgia took on a mo- Plaza’s main, 110 000 square meter In nearest future, after obtaining FIZ mentous task: turn the Tbilisi Sea into building, will be the biggest in the status, this area will get more attractive a sporting paradise in time for the 2015 South Caucasus Region); and the 5 star for foreign companies and investors. Youth Games. Hotels & Preference Hualing Tbilisi,to Before construction, the site was 420 be opened in the May of 2015. BACKGROUND ON THE HUALING hectares of empty land bordering two The group is also involved in several GROUP of Tbilisi’s largest suburbs, Vazisubani other projects in Georgia. Since it was Hualing Group is the biggest Chinese and Varketili. established in 2007, the company has investment company in Georgia. The The project, Tbilisi Sea New City is launched fi ve major projects and, by the Urumqi, Xinjiang-based company, a pri- the biggest investment project launched end of this year, it would have invested vate enterprise group established in 1988, by the company and includes “Tbilisi Sea $250 million in Georgia and created has about thirty years of experience in Residence” where the Youth Olympic 2,500 jobs. . investment and management. Village will take place and “Tbilisi Sea To date, Hualing Georgia has been Thecompany mainly operates in the Plaza” as commercial and trading center. involved in wood processing; a stone fi eld of building, managing and renting The fi rst stage, an investment of $150 quarry and, in 2012, it became the 90 of trade centers andwholesale markets, million, will be complete by the end of percent shareholder of Basisbank. as well as hotel construction and man- March 2015 and will include a Youth Its investments also include the agement. Olympic Village for 3800 athletes for Kutaisi Free Industrial Zone in western The company is also engaged in the Tbilisi 2015 Games. Georgia, an investment of $31.17 mil- foreign trade, modern livestock industry At the end of Tbilisi 2015,Hualing- lion on 35.92 hectares of land. At the development, mining, and foreign re- Group will continue the management free industrial zone,Hualinghas set up sources project development, in addition of the project, which will eventually timber and resource processing lines that to other projects. include three developments: Tbilisi Sea produce furniture and construction ma- Worth $3 billion, Hualing Group has Residence, 2 million sq.m. , with apart- terials, which isexported toneighboring four wholesale markets, more than 30 ment and villa complexes, recreational countries. The site also includes astone affi liated companies and around 3000 zones,modern landscape design ;Tbilisi material processing plant and Hualing employees in Xinjiang, China.

5050 | Investor.geIInnvevessttoror.g.ge • DECEMBER-JANUARY/2014-15DDECDEECECEEMEMBMMBBEERER-RR--JAJJANAANNUUAUARARARY//2/20220014114-44--1155 NEWS NEW MEMBERS

CORPORATE B CORPORATE B CORP B CORP B AIR ASTANA ILF BERATENDE RESOLUTION GEOMILL LLC AIRLINES JSC INGENIEURE ZT GMBH INSURANCE BROKERS, BRANCH IN GEORGIA GEORGIA LLC

Founded in 2002, Air ILF Beratende Ingenieure Resolution Insurance Geomill is one of the Astana is a joint venture ZT Gmbh Branch in Georgia Brokers was originally leaders of the wheat between Kazakhstan’s is a branch offi ce of the founded in Armenia in milling industry of Georgia, national wealth fund Samruk reputable Austrian-German 2000. Resolution Insurance which is working to build Kazyna and BAE Systems, company. ILF is implementing Brokers, Georgia (RIBG) a modern agrarian and with respective shares of 51% the following projects in was established in 2011 industrial infrastructure to and 49%. Georgia: Georgian Railway as a separate registered manufacture non-polluting Air Astana is endorsed Modernization Project; insurance and reinsurance foodstuffs from domestic with a prestigious 4-star Tbilisi Railway Bypass broker. Its business is founded raw materials, by using the rating by Skytrax in its world Projec; Nenskra Road on being able to deliver advanced technologies. airline awards and it is proud Project; Anaklia Seaport value, service and integrity to Geomill is expanding to have been named best Development Study; all its clients through meeting operations in different fi elds airline in Central Asia and Gardabani Combined Cycle their insurance needs. to assure high revenue India in 2012, 2013 and 2014. Power Plant Project; Water A core strength of growth and profi tability. Long A representative offi ce Infrastructure Modernization the company is providing term growth plans include in Tbilisi has been opened Project in 17 cities of Georgia. complex, bespoke, introducing a number of in 2011, and the company ILF has main offi ces in corporate-client insurance fl our variations for specifi c currently operates fi ve fl ights Innsbruck and Munich, and solutions to commercial purposes and a product per week between Tbilisi and more than thirty subsidiary and professional businesses, development strategy to Almaty in Kazakhstan. offi ces worldwide. with a strong FDI focus. bring new product lines For travelers to A permanent staff of RIBG has excellent long- together for different use and Kazakhstan, the company’s over 1810 are employed to term relationships with the diverse consumers. StopOver Holidays Program develop and execute project principal domestic insurers Geomill’s transparency offers an easy way to solutions for international and international brokers. and a fl awless reputation experience the country. customers. The company works in on the wheat market, which www.airastana.com All ILF companies are all direct and reinsurance helps achieve its long-term certifi ed to ISO 9001. classes. goals. www.ilf.com www.rib.ge www.geomill.ge

DECEMBER-JANUARY/2014-15 • Investor.ge | 51 AmCham Company Members as of December 2014

PATRON MEMBERS Chemonics International Greco Group SEAF Management LLC 6a N. Ramishvili St., 0179 1 Nutsubidze St. 7, Niko Nikoladze St. II Floor. BP Exploration Georgia Tel: 2234311; Fax: 2234309 Tel: 2393138; Fax: 2311107 Tel: 2998115; Fax: 2923533 24, S. Tsintsadze St. www.chemonics.com www.greco.ge www.seaf.ge Tel: 2593400 www.bpgeorgia.ge Colliers International Gryphon - FK Sheraton Metechi Palace Hotel Georgia LLC 8603 Westwood Dr. Suite 310 20 Telavi St. Exxon Azerbaijan Ltd 37/39 Kostava St., Vienna, Va 22182, USA Tel: 2772020; Fax: 2772120 Landmark Suite 300, 95 Nizami St., Grato Business Center 7th Floor Tel: 1 703 992 8664 www.sheraton.com/tbilisi Baku, AZ1010 Azerbaijan Tel: 2224477 www.gryphonairlines.com T&K Restaurants (McDonald’s Tel: (994-12) 4982460; Fax: (994-12) www.colliers.com Georgia) 4982472 GT Group Cushman & Wakefi eld - 1 Dzmebi Kakabadze St. www.exxonmobil.com 48 B. Cholokashvili St. Veritas Brown Tel: 2740740 Tel: 2921246; Fax: 2251422 6th fl oor, Block 10, 71 Vaja-Pshavela www.mcdonalds.ge PricewaterhouseCoopers www.gtgroup.ge Ave. 7 Bambis Rigi St., 0105 TBC Group Tel: 2474849 GULF Georgia Tel: 2508050; Fax: 2508060 7 Marjanishvili St. www.veritasbrown.com by Sun Petrolium Georgia LLC www.pwc.com/ge Tel: 2272727; Fax: 2228503 Pixel Business Center, Dechert Georgia LLC www.tbc.com.ge 34 Chavchavadze Ave. TBSC Consulting 7th fl oor, Pixel building, Tel/Fax: 2496444 3, Rapiel Eristavi Street, IV Floor 34 Chavchavadze avenue TMC Global Professional www.gulf.ge Tel: 2959019; Fax: 2420215 Tel: 2334719 Services www.tbsc.ge www.dechert.com 6001 Indian School Road NE, Suite Hilton Batumi 190, Albuquerque, NM 87110, USA UGT Deloitte 13 Takaishvili St., Batumi Tel: (1 505) 8723146 17a Chavchavadze Ave., 7th fl oor 36a, L. Asatiani St., 0105 Tel: 292092 www.tmcservices.com Tel: 2220211; Fax: 2220206 Tel: 2244566; Fax: 2244569 www.hilton.com www.ugt.ge www.deloitte.ge Iberia Refreshments, JSC CORPORATE B MEMBERS CORPORATE A MEMBERS Diplomat Georgia Tetri Khevi Hesi District, Orkhevi Air Astana Airlines JSC Tel: 2241091; Fax: 2241090 Alliance Group Holding, JSC 65, Kakheti Highway 5th Floor, Pixel Business Center, www.pepsi.ge 47/57 M. Kostava St., 0179 Tel: 2984950 34 Chavchavadze Ave. Tel: 2424181; Fax: 2998112 www.diplomat.ge Tel: 2514999 KPMG Georgia LLC www.airastana.com www.agh.ge DLA Piper Georgia LP 3rd Floor, Besiki Business Center, Auto Service Caucasus 10 Melikishvili St. 4 Besiki St., 0108 Aliance Georgia Ltd 5 Shalikashvili St. Tel: 2509300; Fax: 2509301 Tel: 2935713; Fax: 2982276 33 Samurzakano St. Tel: 2208080 www.dlapiper.com www.kpmg.ge Tel: 2243773 www.precisiontune.com www.groupaliance.com EY Georgia Maersk Georgia LLC Avon Cosmetics Georgia LLC 44 Kote Abkhazi St. 6 Khetagurov St. AMK Law 117 Tsereteli Ave. Tel: 2439375; Fax: 2439376 Tel: 2200800; Fax: 2200815 1 Iv. Javakhishvili Sq., 0102 Tel: 2226805; Fax: 2226806 www.ge.ey.com www.maerskline.com Tel: 2054628 www.avon.com FINCA Georgia www.amklex.com F H Bertling Georgia Ltd. Magticom 71 Vazha-Pshavela Ave. 3rd fl . 10 Shevchenko St. 5 Politkovskaya St. Asseco Georgia Tel: 2207410 Tel: 2252287 Tel: 2171717; Fax: 2171171 24 Mosashvili St. www.fi nca.ge www.bertling.com www.magticom.ge Tel: 2720901 Frontera Resources Georgia www.asseco.ge Betsy’s Hotel / Prosperos Books Marriott Hotels, Resorts & Suites 32/34 Makashvili St. / 34 Rustaveli 12 Paliashvili St. 13 Rustaveli Ave. Aversi Pharma Ave. Tel: 2252412 Tel: 2779200; Fax: 2779210 148/2 Aghmashenebeli Ave. Tel: 2987624, Fax: 2923592 www.fronteraresources.com www.marriott.com Tel: 2987860 www.betsyshotel.com Georgian American Alloys, Inc. www.aversi.ge Booz Allen Hamilton, Inc. 200 S Biscayne Blvd Suite 5500, Microsoft Georgia LLC 4 Freedom Sq. Miami FL 33131 USA 34 Chavchavadze Ave. Baker Tilly Georgia Ltd. Tel: 2481348; Fax: 2481349 Tel: (1)3053757560 Tel: 2970123 Meidan Palace, 44 Kote Abkhazi St. www.boozallen.com www.gaalloys.com www.microsoft.com Tel: 2505353; Fax: 2505353 www.bakertillyinternational.com British American Tobacco Georgian American University NRC 71 Vazha Pshavela Ave. 8 Aleksidze St. 9 Khvichia St. 0160 Bank Constanta Tel: 2157500/01/02; Fax: 2157503 Tel: 2206520; Fax: 2206519 Tel: 2244141, 2382825 139 Tsereteli Ave. www.bat.com www.gau.ge www.nrccintl.com Tel: 2401401 Catoni & Co. Georgia www.bankconstanta.ge 7 Dzmebi Zubalashvilebi St. Georgian Audit & Consulting Pfi zer Luxembourg SARL Apt.22/23 Company Representation Offi ce in Georgia Bank of Georgia Tel: 2989230; Fax: 2922264 Axis Business Pl, 2 Gamrekeli St. 58 I. Abashidze St. 3 Pushkin St. www.hapag-lloyd.com Tel: 2904522; Fax: 2904523 Tel: 2252986 Tel: 2444134; Fax: 2983269 www.gacc.com.ge www.pfi zer.com www.bog.com.ge Caucasia Trading Apt 11, Bld 7, 16 Krtsanisi St. GMT Group Philip Morris Bank Republic Tel: 14433050083; Fax: 4 Freedom Square 1 Tabidze St. 2 Gr. Abashidze St. 14433788388 Tel: 2988988; Fax: 2988910 Tel: 2439001; Fax: 2439005 Tel: 2925555; Fax: 2925544 www.caucasiatrading.com www.gmt.ge www.philipmorrisinternational.com www.republic.ge Caucasus University ProCredit Bank Basis Bank JSC 77 Kostava St., Bld.6, 4th fl . Gosselin Moving Georgia 154 Agmashenebeli Ave. 1 Ketevan Tsamebuli Ave. Tel: 2377777; Fax: 2313226 3 M/D, Didi Digomi Tel: 2202222; Fax: 2202222-2226 Tel: 2922922; Fax: 2986548 www.cu.edu.ge Tel: 2596601/02/03; Fax: 2596600 www.moving.gosselingroup.eu www.procreditbank.ge www.basisbank.ge CH2M Hill 5th Floor, GMT Plaza, Freedom Grant Thornton LLC Radisson BLU Iveria Hotel BDO LLC Square 61 D. Aghmashenebeli Ave. 1 Rose Revolution Sq. Pixel Center 8th fl oor Tel: 2474040; Fax: 2470210 Tel: 2604406 Tel: 2402200; Fax: 2402201 Tel: 2545845; Fax: 2399204 www.ch2m.com www.grantthornton.ge www.radissonblu.com www.bdo.ge

52 | Investor.ge • DECEMBER-JANUARY/2014-15 BGI Advisory Services Georgia Georgian Airways Mina JSC Tbilisi View 18 Rustaveli Ave., II fl oor 12 Rustaveli Ave. 4 Besiki St. 4a, Freedom Sq. Tel: 2997292; Fax: 2996615 Tel: 2999730; Fax: 2999660 Tel: 2449981/82/83; Fax: 2449980 Tel: 2999980 www.bgi.ge www.georgian-airways.com www.mina.com.ge www.tbilisiview.ge

BLB (Business Legal Bureau) Georgian Resources Company Mira-Group Ltd. Teliani Valley JSC 1 Shevchenko St, Apt.1 3-5 Kazbegi St. Brose Street Turn,Old Tbilisi 2 Marshal Gelovani Ave. Tel: 2995797 Tel: 2936676 Tel: 2242244/55/88 Tel: 2313245; Fax: 2313249 www.blb.ge www.georgianresources.com www.riverside.ge www.telianivalley.com BLC Law Offi ce Theco Ltd. Globalink Logistics Group National Center for Dispute 4 Gudiashvili Sq. 16 Chikovani St. 14-A Shartava St, 2nd fl , Suite 7 Resolution Tel: 2922491; Fax: 2934526 Tel: 592107515 Tel: 2253262; Fax: 2439002 4/7 Rustaveli St., Rustavi www.blc.ge www.tbilisia.ru www.globalinkllc.com Tel: 2193406 Canargo Georgia www.ncdr.ge Thermarsenal Ltd. 67 Aghmashenebeli Ave. Gvinadze & Partners LLC 101, Tsereteli Ave. Tel: 2332527 44 Kote Abkhazi St, Tbilisi 0105 Nodia, Urumashvili & Parnters Tel: 2473112 Tel: 2438970, Fax: 2438971 Offi ce #28, IV Block, www.arsenal.ge Capital Bank www.gvinadzeandpartners.ge 71 Vazha-Pshavela Ave. VD Capital 1 Vertskhli St. Tel: 2207407 77 Kostava St., 0175 Tel: 2428888 Holiday Inn www.nplaw.ge www.capitalbank.ge 1, 26 May Sq., 0171 Tel: 2363672; Fax: 2364302 Tel: 2300099 Overall Management Group Wimm-Bill-Dann Georgia Ltd Casino Adjara www.hi-tbilisi.com (OMG) Inc. Village Ponichala, Tbilisi 0165 1, 26 May Sq. 29 Marjanishvili St. Tel: 2475290 Tel: 2335519; Fax: 2334520 Hualing International Special Tel: 2436052; Fax: 2436052 www.wbd.ru www.casinoadjara.com Economic Zone 25 Apt. 34/36 Kobuleti St. Paine Stevens LLC Wings and Freeman Capital Caucasus Online LLC Tel: 591005900 1 Ivane Javakhishvili Sqr. Green Building, 6, Marjanishvili St. 71 Vazha-Pshavela Ave. www.hualing.cn Tel: 2903211, Fax: 2903291 Tel: 2940051; Fax: 2940053 Tel: 2480048; Fax: 2480048 www.painestevens.com www.wfcapital.ge www.caucasus.net ILF Beratende Ingenieure ZT Wissol Georgia GmbH Branch in Georgia Policy and Management Channel Energy (Poti) Limited 74b Chavchavadze Ave. 15 Tamar Mepe Ave. Consulting Group (PMCG) Georgia LLC, By Petrocas Energy Tel: 2915315; Fax: 2915615 Tel: 2199453 57 Uznadze St., 4th Floor Group www.wissol.ge 52, David Agmashenebeli St., Poti www.ilf.com Tel: 2921171 Tel: (995493) 2-7-08-60 www..pmcg.ge Imedi TV NON-PROFIT ORGANIZATIONS www.petrocasenergy.com 51 Ljubljana St. Publicis Hepta Agricultural University of Château Mukhrani, J.S.C. Tel: 2464646 17 V. Jorbenadze St. Georgia III fl oor, Didube Plaza, www.imedi.ge Tel: 2745672; Fax: 2745671 140 David Aghmashenebeli Alley 116 Tsereteli Ave. www.publicishepta.com Tel: 2594901 Tel: 2201878; Fax: 2201878; Imperial Tobacco International www.agruni.edu.ge www.mukhrani.com Limited Representative Offi ce in Resolution Insurance Brokers, Georgia Georgia LLC American Friends of Georgia City & Co. 12 Dariali Turn, 0162 61, Gorgasali St. 77 Nutsubidze St. 4 Besiki St. Tel: 2232438 Tel: 2936305 Tel: 2397174; Fax: 2388495 Tel: 2920921 www.imperial-tobacco.com www.rib.ge www.afgeorgia.org Crystal, MFO JSC Rakeen Development LLC CARE International in the 72 Tamar Mepe St. Kutaisi, 4600 Interco Travel Holding Pixel Business Center, Caucasus Tel: 431253343 36 Al. Kazbegi St. 34 Chavchavadze Ave. 37 Tsagareli St., 0162 www.crystal.ge Tel: 2294343 www.intercontinental.ge Tel: 2933393; Fax: 2933993 Tel: 2291941 David Tvildiani Medical Univesity www.rakeen.ge www.care-caucasus.org.ge 2/6 Ljubljana St. JTI Caucasus Tel: 2516898, Fax: 2527196 VII Floor, Pixel Business Center, Rustavi Azot Ltd. Eurasia Partnership Foundation www.aieti.edu.ge 34 Chavchavadze Ave. 2 Mshvidoba St. Rustavi-3702 3 Kavsadze Str. Tel: 2604111 Tel: 995341270900 Tel: 2253942; Fax 2252763 (ext. 112) Duty Free Georgia www.jti.com www.azot.ge www.epfound.org 3rd fl oor, 4 Besiki St., Besiki Business Center Kordzahia, Jgenti Law Firm Rustavi Steel LLC Free University of Tbilisi Tel: 2430150 10 Petriashvili St. 12 Y. Gagarin St., 3700 Rustavi 140 David Agmashenebeli Alley www.dfg.ge Tel: 2921878 Tel/Fax: 260 66 99 Tel: 2200901 www.kjlaw.ge www.rmp.ge www.freeuni.edu.ge Gebrüder Weiss LLC Georgian Wine Association Airport Adjacent Territory, KSB Bank Safe LLC 12 Mtatsminda St. Kakheti Hwy 3 Ketevan Tsamebuli Ave. Pixel Business Center, Tel: 2505456 Tel: 2710011 Tel: 2550000, Fax: 2507707 34 Chavchavadze Ave. www.gw-world.com www.ksb.ge Tel: 2333333; QSI International School of GeoCapital Microfi nance www.safeinvest.ge Georgia Legal Partners Associated LLC Organization Ltd. Village Zurgovani, Tbilisi Offi ce #203, Besiki Business Center, Sayali Ltd. 5 Tsereteli St, Kutaisi Tel: 2537670; Fax: 2322607 4 Besiki St. 0108 6 Ushangi Chkheidze St. Tel: 431 267070 www.qsi.org Tel: 2200203; Fax: 2250458 Tel: 2951212; www.geocapital.ge www.lpa.ge www.sayali.ge Salvation Army Geocell 16 Ikalto St. 3 Gotua St. Lemondo LLC Silknet Ltd. Tel: 2333786; Fax: 2330227 Tel: 2770100, ext. 7435; 13 Dzotsenidze St. 95 Tsinamdzgvrishvili St. www.salvationarmy.org Fax: 2770119 Tel: 2193377 Tel: 2910345; www.geocell.ge www.lemondo.com www.silknet.com San Diego State University - Georgia GeoEngineering LLC Liberty Bank JSC SRG Investments LLC 3 Chavchavadze Ave. 15a Tamarashvili St. 74 Chavchavadze Ave. 49a Chavchavadze Ave, 3rd fl oor Tel: 2290820 Tel: 2311788; Fax: 2311787 Tel: 2555500; Fax: 2912269 Tel: 2253581 www.sdsu.edu www.geoengineering.ge www.libertybank.ge www.silkroad.ge Transparency International Geomill LLC Luca Polare Statoil Georgia 4, Chirnakhuli St. 54 Oniashvili St. GMT Plaza, 4 Freedom Sq. 26 Rustaveli Ave. 0108 Tel: 2400000 Tel: 2990399 Tel: 2471002 Tel: 2932129 www.geomill.ge www.lucapolare.com www.statoil.com www.transparency.ge

DECEMBER-JANUARY/2014-15 • Investor.ge | 53 NEWS

AMCHAM NETWORKING HAPPY HOUR IN TIFFANY BAR, HOTEL RIVERSIDE

ON NOVEMBER 14, AMCHAM MEMBER COMPANY RIVERSIDE HOTEL HOSTED THE AMCHAM NETWORKING HAPPY HOUR AT THEIR NEWLY OPENED TIFFANY BAR. THE HAPPY HOUR WAS ATTENDED BY MORE THAN 60 BUSINESSPEOPLE. IN ADDITION TO SOCIALIZING, GUESTS ENJOYED SIGNATURE COCKTAIL OF THE TIFFANY BAR AND DELICIOUS CANAPÉS. AMCHAM FIRST VICE- PRESIDENT MICHAEL COWGILL AND RIVERSIDE HOTEL’S BUSINESS DEVELOPMENT MANAGER DIMITRI SHVELIDZE WELCOMED THE GUESTS, WHO INFORMED THE MEMBERS ABOUT THE PLANNED OFFICIAL OPENING OF THE TIFFANY BAR THAT WILL TAKE PLACE IN MID-DECEMBER. MICHAEL COWGILL THANKED THE HOTEL FOR HOSTING THE HAPPY HOUR AND HIGHLIGHTED THE IMPORTANCE OF SUCH NETWORKING EVENTS IN EXPANDING BUSINESS PARTNERSHIPS AND OPPORTUNITIES.

54 | Investor.ge • DECEMBER-JANUARY/2014-15 NEWS

DECEMBER-JANUARY/2014-15 • Investor.ge | 55 NEWS

56 | Investor.ge • OCTOBER-NOVEMBER/2014 NEWS

THE AMERICAN FRIENDS OF GEORGIA CELEBRATED ITS 20TH ANNIVERSARY WITH A CHARITY GALA AT THE RADISSON BLU IVERIA HOTEL IN TBILISI. FUNDS RAISED AT THE EVENT WENT TO BENEFIT TWO OF AFG’S HUMANITARIAN PROJECTS: THE PALLIATIVE CARE PROGRAM FOR NEEDY ELDERLY IN TBILISI AND THE ART REHABILITATION PROGRAM FOR CHILDREN SUFFERING WITH LEUKEMIA.

OCTOBER-NOVEMBER/2014 • Investor.ge | 57 NEWS

THE US EMBASSY IN GEORGIA HOSTED THE AMCHAM APPRECIATION COCKTAIL RECEPTION AT US AMBASSADOR RICHARD B NORLAND AND MARY HARTNETT’S RESIDENCE ON DECEMBER 8.

58 | Investor.ge • DECEMBER-JANUARY/2014-15 NEWS

PROSPERO’S BOOKSHOP AND COFFEHOUSE CELEBRATED ITS 15TH BIRTHDAY ON OCTOBER 17 WITH A PARTY AND A BOOK PRESENTATION, “GEORGIA, THE LAND BELOW THE CAUCASUS” BY PETER F SKINNER.

OCTOBER-NOVEMBER/2014 • Investor.ge | 59 NEWS

Board Of Directors 2014

SARAH WILLIAMSON PRESIDENT

R. MICHAEL COWGILL IRAKLI BAIDASHVILI ESBEN EMBORG FIRST VICE-PRESIDENT VICE-PRESIDENT & TREASURER DIRECTOR

LASHA GOGIBERIDZE BADRI JAPARIDZE STEVE JOHNSON DIRECTOR DIRECTOR DIRECTOR

AmCham Executive Director Writers Amy Denman Nikoloz Akhalaia, Helena Bedwell, Maia Edilashvili, Monica Ellena, Keti Khukhunashvili, Cordelia Ponczek, Heather Yundt Copy Editor Alexander Melin Photographs Mari Nakanimamasakhlisi (Lisi Development), page 36 Marketing & Promotion Sophia Chakvetadze Special thanks to the AmCham staff, the editorial board and all of our contributors. This magazine would not be possible without you. Promotional Design Levan Baratashvili

Magazine Design and Layout Giorgi Megrelishvili 60 | Investor.ge • DECEMBER-JANUARY/2014-15 NEWS

TED JONAS KETTI KVARTSKHAVA ROBIN MCCONE DIRECTOR DIRECTOR DIRECTOR

CHRIS SCHLUETER BETSY HASKELL, K.G. MOORE DIRECTOR FOUNDING ADVISOR EX-OFFICIO MEMBER

AMY DENMAN EXEC. DIRECTOR

AmCham Georgia Patron Members:

© The American Chamber of Commerce in Georgia, 2014 arising from the use of any product or service advertised within All rights reserved. No part of this magazine may be re-printed, or the pages of this issue. reproduced or utilized in any form or by electronic, mechanical Investor.ge is printed by CEZANNE or other means now known or hereafter invented, including AmCham Georgia: photocopying and recording, or in any information storage or rd retrieval system without permission. 36a Lado Asatiani Street, 3 fl oor. Tel: 2 22-69-07 The opinions expressed in this magazine do not refl ect the opinion [email protected] of the American Chamber of Commerce in Georgia nor its Board [email protected] │ www.amcham.ge Members or staff, unless otherwise stated. AmCham Georgia neither endorses, nor can be held liable for any eventuality www.investor.ge DECEMBER-JANUARY/2014-15 • Investor.ge | 61

BGI LEGAL BGI ADVISORY SERVICES GEORGIA

Expertise, Efficiency, Experience

For more information contact BGI partners: Zaza Bibilashvili - [email protected] Lasha Gogiberidze - [email protected] Sandro Bibilashvili - [email protected]

18 Rustaveli Avenue, 0108 Tbilisi, Georgia, Tel: + 995 322 997 292, Fax: + 995 322 996 615, www.bgi.ge Бажаємо Щасливого Boldog új Нового Року! Bonne évet! année!

¡Feliz Año Gelukkig Nuevo! Nieuwjaar!

Yeni Yılınız Kutlu Olsun! Wishing you a happy Szczęśliwego new year! Nowego Roku! Frohes neues jahr!

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