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Issue no: 852/31 • JUNE 14 - 16, 2016 • PUBLISHED TWICE WEEKLY PRICE: GEL 2.50

In this week’s issue... The Economics of Boasting ISET PAGE 4 Wine Export Increases by 44% PAGE 5 Georgian Airways Receives EASA Permission to Fly to EU

FOCUS ON THE CNFA PAGE 7 Cultivating New Frontiers in Agriculture celebrates its 10th anniversary of designing DAAD Scholarship for and implementing market-driven agricultural Higher Education and agribusiness development initiatives in Georgia PAGE 3 PAGE 11 Bank of Georgia HQ Developing Georgian-Kazakh Business Relations Building Listed Among the Best Examples of Brutalist BY EKA KARSAULIDZE Architecture

ast week began with a successful Invest- ment Forum in Tbilisi, bringing together leading representatives of Kazakh and Georgian business circles to discuss eco- nomic issues, ways of cooperation and potentialL projects. A few days later, government representatives of the two countries met in Kazakh- stan at the 8th Kazakh-Georgian Intergovernmental Commission on Trade and Economic Cooperation PAGE 12 in order to resolve existing issues and form a more favorable overall business environment for the pri- vate and public sectors. Rustavi-2 Loses Ownership The Minister of Economy of Georgia, Dimitry Kumsishvili, noted that Georgia and Kazakhstan Dispute in Appeals Court, have enjoyed close trade and tourism relations for Vows to Fight On many years. Continued on page 2 PAGE 13

Prepared for Georgia Today Business by Markets Asof10ͲJunͲ2016 STOCKS Price w/w m/m BONDS Price w/w m/m BankofGeorgia(BGEOLN) GBP24.77 Ͳ0,9% +7,6% GEOROG05/17 101.88(YTM4.77%) +0,1% Ͳ0,3% GHG(GHGLN) GBP2.60 +2,6% +32,4% GEORG04/21 111.14(YTM4.29%) +0,5% +0,4% TBCBank(TBCBLI) US$13.00 +1,6% +20,9% GRAIL07/22 111.00(YTM5.59%) +0,3% +2,0% GEBGG07/17 103.94(YTM3.90%) Ͳ Ͳ0,3% COMMODITIES Price w/w m/m CrudeOil,Brent(US$/bbl) 50,54 +1,8% +11,0% CURRENCIES Price w/w m/m GoldSpot(US$/OZ) 1274,24 +2,4% +0,7% GEL/USD 2,1282 Ͳ0,4% Ͳ3,5% GEL/EUR 2,3931 Ͳ1,4% Ͳ4,6% INDICES Price w/w m/m GEL/GBP 3,0339 Ͳ2,3% Ͳ4,7% FTSE100 6115,76 Ͳ1,5% Ͳ0,7% GEL/CHF 2,2073 +0,6% Ͳ2,3% FTSE250 16827,45 Ͳ1,4% +0,6% GEL/RUB 0,0328 +0,3% Ͳ1,8% DAX 9834,62 Ͳ2,7% Ͳ2,1% GEL/TRY 0,7270 Ͳ1,2% Ͳ2,7% DOWJONES 17865,34 +0,3% Ͳ0,4% GEL/AZN 1,4005 Ͳ1,8% Ͳ3,8% NASDAQ 4894,55 Ͳ1,0% +1,8% GEL/AMD 0,0044 Ͳ2,2% Ͳ4,3% MSCIEMEE 124,57 +1,5% +0,8% GEL/UAH 0,0852 Ͳ0,6% Ͳ2,7% MSCIEM 823,82 +0,9% +2,1% EUR/USD 0,8888 +1,0% +1,1% SP500 2096,07 Ͳ0,1% +0,6% GBP/USD 0,7015 +1,8% +1,3% MICEX 1903,61 +0,9% +1,0% CHF/USD 0,9649 Ͳ1,1% Ͳ1,1% MSCIFM 2561,09 +0,4% +2,1% RUB/USD 65,4900 +0,3% Ͳ1,2% GTIndex(GEL) 797,63 Ͳ +0,1% TRY/USD 2,9292 +0,9% Ͳ0,7% GTIndex(USD) 740,49 +0,7% +4,1% AZN/USD 1,5210 +2,0% +0,5% GEORGIA TODAY 2 BUSINESS JUNE 14 - 16, 2016 Developing Georgian- Kazakh Business Relations

Continued from page 1 we are planning to take 11 million tourists annually. Moreover, we see growth among Kazakh tourists In particular, the Minister said, the Kazakh side – 12 thousand people from this country have visited invested over USD 300 million (636 million GEL) Georgia since the beginning of 2016.” from 2006 to 2015. “I understand that this amount The number of Kazakh tourists increased by 5-6 will increase at least 10 times in the near future,” times in the last three years, and the Tourism New Investment said Kumsishvili. Department of Kazakhstan has predicted 20 per- The fi rst Georgian-Kazakh Investment Forum, cent of its tourists will be coming to Georgia this jointly organized by Forbes Georgia and Forbes summer. In addition, fl ights between Georgia and Kazakhstan, invited 40 representatives of leading Kazakhstan increased to 20 times a week from June. companies of Kazakhstan to Tbilisi. At the Forum, In general, the results of the Forum were positive, the Georgian side demonstrated the potential of with both sides appreciating one important com- in Batumi the country, advantages of free trade, the tax exemp- ponent of successful business cooperation in per- tion programs like ‘Produce in Georgia,’ as well as sonal meetings and, in particular, this type of forum. the latest achievements. With the aim of resolving existing problems, Min- “Georgia’s GDP grew by 2.5 percent in 2015. This ister Kumsishvili went to the Kazakh-Georgian year, the forecast is 3 percent, but the current eco- Intergovernmental Commission on Trade and Eco- nomic indicators suggest that growth could reach nomic Cooperation in Astana a few days after the as much as 3.5 percent. In addition, our country Tbilisi Forum. Boulevard has a successful anticorruption policy and reached According to the Minister, one of the main goals 23rd place in the Index of Economic Freedom,” was to reach an agreement about Georgia’s debt Kumsishvili highlighted. to Kazakhstan, and as a result, a payment schedule Kazakh businesspersons paid special attention has been set. Issues of transport, the Silk Road Cor- to the energy, banks, real estate and tourism sec- ridor, as well as cargo transportation and increase tors. “Georgia was able to host 6 million visitors in investment were also in the spotlight during the last year,” said the Minister of Economy. “However, Commission meeting.

noted that USD 520 million (1100 million GEL) BY EKA KARSAULIDZE had already been invested in the New Boulevard’s reconstruction in the fi rst quarter of 2016. There are four hotels currently under construction, and n additional USD 40 million (84 mil- another is to be added shortly. As a result, the city lion GEL) is to be invested in the will receive 1,700 new rooms in total, and about development and reconstruction of 2,600 local residents will be involved in the pro- the New Boulevard of Batumi, jects. reported the Chairman of Adjara “Investment processes in Adjara are developing AGovernment, Archil Khabadze. According to the quite actively. The New Boulevard did not func- project, various tourist facilities will be built, such tion for many years, yet now several large invest- as hotels, but 50 percent of the territory will be ment projects are underway there,” said David allocated to a tourist-recreation zone. Baladze, the Minister of Finance and Economy of 32,000 square meters of the New Boulevard of the Autonomous Republic of Adjara. “In addition, Batumi had previously been put up for auction with the recent purchase by Orbi Group once again a starting price of USD 2.3 million (5 million GEL). demonstrates the interest and economic develop- Orbi Group Millennium Construction Company ment in the region. Based on this, we may well bought it for USD 4.3 million (9.3 million GEL). say that there is an investment boom happening,” In addition, members of the Adjara Government he added.

Tel: (995 32) 2 45 08 08 10 Galaktion Street E-mail: [email protected] GEORGIA TODAY JUNE 14 - 16, 2016 BUSINESS 3 USAID/CNFA Celebrates 10th Anniversary in Georgia

The Fair featured almost 20 grantees as a member of the CNFA Board of BY ZVIAD ADZINBAIA that are currently receiving support and Directors, emphasized the organiza- President of Georgia, Giorgi Margvelashvili, awards CNFA Europe Board Chairman, technical assistance from the USAID tion’s role in boosting entrepreneurship John Castelo with the Golden Fleece Order for his signifi cant contribution to Georgian agriculture Restoring Effi ciency to Agriculture in Georgia. “Private enterprises are what n June 7, Cultivating New Production (REAP) project, an ongoing CNFA is all about,” Kirvalidze under- Golden Fleece Order for his signifi cant staff’s commitment and passion that Frontiers in Agriculture CNFA-led program. REAP is committed scored, adding, “it assists individuals contribution to Georgian agriculture CNFA has been able to truly make a (CNFA), an international to increasing income and employment and encourages entrepreneurship.” and international assistance programs positive impact in such an incredible agricultural development in rural areas by delivering investment USAID Georgia Chief, Thomas Mor- for Georgia. country.” organization, celebrated and technical assistance to expanding ris, spoke of CNFA’s support toward The conference concluded with a The conference and grantee fair was itsO 10th anniversary of designing and the operation of existing smallholder Georgia’s western course. “We will presentation by Darejan Kanteladze, the last event of a six-day visit to Geor- implementing market-driven agricul- farmers and rural enterprises. continue supporting Georgia on its path owner of a dairy processing plant, Santa gia for seven CNFA Board of Directors tural and agribusiness development In his opening speech, Giorgi Kviri- to EU and NATO. CNFA is stimulating Ltd, who highlighted signifi cant achieve- to experience fi rsthand some of the initiatives in Georgia. The organization kashvili declared that CNFA has not just economic growth in Georgia through ments that the company has accom- work being implemented and to see the hosted a Conference and Grantee Fair been a partner but has also been a friend entrepreneurship,” Morris stated. plished as a result of working with historical impacts of CNFA-supported at Expo Georgia, inviting high-level to the Georgian farming community. The conference incorporated a num- USAID, the Millennium Challenge Cor- projects. Other members of the CNFA offi cials, including Prime Minister of “CNFA has played a vital role in trans- ber of other prominent speakers, among poration (MCC) and CNFA over the Board of Directors delegation included Georgia, Giorgi Kvirikashvili, and forming Georgia's agriculture,” he said. which was Michael Espy, CNFA Board past eight years. Akin Gump Strauss Hauer & Feld LLP USAID/Georgia Acting Mission Direc- Ex-Minister of Georgian Agriculture, of Director and former US Secretary of Since 2006, CNFA has led or been Senior Policy Advisor, Devry Boughner tor, Thomas Morris. David Kirvalidze, who currently serves Agriculture. Espy said that during a involved in eight projects, three of which Vorwerk; Elin Miller Consulting, LLC recent visit to Gori, he saw Russian are currently ongoing. These projects, Principal, Elin Miller; and former Archer soldiers and their occupation, which he as a result of US Government assistance Daniels Midland Company Senior Vice regards as an ‘old way’. He believes that through USAID and MCC, and in part- President, Richard P. Reising. CNFA offers a ‘new way’ of develop- nership with the Government of Geor- ment, entrepreneurship and economic gia, have supported more than 430 CNFA specializes in designing sustainable, growth. He gave the example of a suc- agro-businesses, created over 3,500 jobs, market-led agricultural initiatives. CNFA cessful enterprise in Gori, which was generated USD 51 million in new gross builds strong local and global partnerships, supported by CNFA. sales, and trained more than 140,000 incorporates innovative approaches in its John Castelo, CNFA Europe Board individuals. “We are extremely fortu- programs, and fosters inclusive development Chairman, spoke of David Kirvalidze’s nate that CNFA continues to work in to offer enhanced opportunities to under- personal leadership and his commit- Georgia and the reason behind this is served groups. Since 1985, CNFA has ment to Georgian agriculture and the simple: our local Georgian staff,” said managed more than USD 600 million in well-being of the country. “We are all CNFA President and CEO, Sylvain Roy. donor-funded agriculture development pro- Prime Minister Giorgi engaged in the right process here in “None of this would be possible without grams and has worked in 43 countries Kvirikashvili with CNFA Board Georgia,” Castelo declared. On May 30, their hard work and dedication- some around the world, in Africa, Eastern Europe, of Directors, CNFA Grantee President of Georgia, Giorgi Margve- of them have been with us since our Latin America, the Caribbean, the Middle Fair, Expo Georgia lashvili, awarded John Castelo with the very fi rst project. It is thanks to our East, and South and Central Asia. GEORGIA TODAY 4 BUSINESS JUNE 14 - 16, 2016 THE ISET ECONOMIST A BLOG ABOUT ECONOMICS AND THE SOUTH CAUCAUS www.iset-pi.ge/blog

The ISET Policy Institute (ISET-PI, www.iset-pi.ge) is an independent think-tank associated with the International School of Economics at TSU (ISET). Our blog carries economic analysis of current events and policies in Georgia and the South Caucasus region ranging from agriculture, to economic growth, energy, labor markets and the nexus of economics, culture and religion. Thought-provoking and fun to read, our blog posts are written by international faculty teaching at ISET and recent graduates representing the new generation of Georgian, Azerbaijani and Armenian economists. The Economics of Boasting

Conspicuous Consumption of Smart- BY OLGA AZHGIBETSEBA phones”, Letters on Evolutionary Behav- AND FLORIAN BIERMANN ioral Science 5, pp. 13-16). Like male peacocks, whose lavish plumage indicates to females that their reproductive HO BOASTS, AND resources are so abundant that they can WHY? afford to have highly visible (and there- As argued by Omer fore risky), resource-intensive, and even Moav and Zvika Nee- obstructive feather coats, a human male man in a 2012 paper who buys a Rolex shows to human females (MoavW taught at ISET in the past), boast- that he is so rich that he can afford to ing is a way to pretend that one has buy a watch for several thousand dollars hidden income (“Saving Rates and Pov- which essentially yields the same utility erty: The Role of Conspicuous Con- as a $20 watch. sumption and Human Capital”, Economic Paradoxically, conspicuous consump- Journal 122, pp. 933-956). While people tion seems to be more frequent in poorer may have a rough idea of the incomes societies. Moav and Neeman accumu- of their neighbors, colleagues, friends, lated a lot of evidence for this (detailed In one of the short fi lms of the 'Real Georgian man' series (ქართველი ვაჟკაცი), a Georgian with an expensive car has a gas and other people they interact with, sources can be found in their paper): system installed, which saves money but reduces the car's engine performance. A clear case of conspicuous consumption. Source: they usually do not know exactly how median spending on festivals comprises www.tv11.ge much they make. Hence, there is some about 10-15% of annual income in rural wiggle room for speculation, and if one India, and Black households in South the mating market the scarcer it is. “Hid- of a surprise in a poor society, and hence AND GEORGIA? sees a colleague coming to work with Africa spend on average a year’s income den income” is therefore more attrac- the impact on one’s reputation is more There is casual evidence for conspicu- a Bentley, people will update their beliefs on an adult’s funeral. At the same time, tive when most people are poor. Sec- significant (if everybody already ous consumption in Georgia, like a high about his or her fi nancial potency. they typically spend less than 1% of ondly, revealing that one is rich is more assumed that one was rich, buying a density of Toyota Land Rovers and BMW But why do humans want to appear their income on less transparent forms Porsche does not really make a differ- X6’s in the streets of Tbilisi. For poorer richer than they actually are? Evidence of entertainment like movie theaters. ence). Thirdly, in a rich society it is Georgians, having a car at all instead of points at an evolutionary advantage, as A New York Times article describes the much more expensive to impress oth- going around with public transport may command over resources seems to con- case of a poor Indian farmer who sold ers. When upper class cars are ubiqui- already be conspicuously motivated. tribute to the sexual attractiveness of a his land for $109,000 and then rented a tous, as it is the case in some European From a bank employee we heard that person (in particular of males, who, for helicopter for $8,327 to fl y his son two countries like Luxembourg and Swit- during the fi nancial hardship in 2008, evolutionary reasons not to be discussed miles to his wedding party. zerland, then one needs to go for a Rolls many people would rather sell their here, compete more fi ercely for mating The explanation given by Charles, Like male Royce or Bentley to really impress. In apartments than their cars. The density partners than females). It has been shown, Hurst, and Roussanov (2009) is that a low-income country like Georgia, on of iPhones may also be higher than what for example, that the relationship status conspicuous consumption is more effec- peacocks, the other hand, a plain Toyota Land one would expect in a country with is a reliable predictor for the extent of tive in a society of poor people (“Con- Cruiser or a BMW X6 will do the job. $300 nominal monthly average income, a man’s conspicuous consumption – sin- spicuous Consumption and Race”, whose lavish and a low savings rate and a big trade gle men buy more expensive smartphones Quarterly Journal of Economics 124, pp. IS IT ECONOMICALLY defi cit also fi t the story. While we do and cars than those who are married 425-67). Their argument is threefold. plumage DETRIMENTAL? not have numbers to substantiate our (e.g. Hennighausen and Schwab (2014): Firstly, by the law of supply and demand, On the surface, one might think that a claim, it is likely that the same patterns “Relationship Status Moderates Men’s an attractive trait is more precious on indicates to society of posers is benefi cial for the observed in other low-income countries economy. Doesn’t it boost the demand also apply in Georgia. females that their for expensive smartphones, watches, One diffi culty about conspicuous con- and cars? sumption is that one cannot tax it away reproductive Moav and Neeman show that the issue – by increasing the prices of Veblen is more complicated, and that a verita- Goods, one will make them even more resources are so ble poverty trap can arise from con- attractive. And in democratic, individ- spicuous consumption. The fi rst prob- ualistic societies, one cannot act like abundant that lem is that conspicuous consumption Emomalii Rahmon, the president of competes with more useful expenditures, Tajikistan, who banned gold teeth, the they can afford say, like saving for one’s retirement or use of cell phones in universities, and the education of children: “The very large birthday parties. He criticized to have highly poor spend only 2-3% of their income wealthy citizens “for showing off their on their children’s education, do not wealth by throwing elaborate parties visible, resource- eat well, experience ill health, and report and thereby setting a standard for oth- that they are worried and anxious to an ers who try to appear wealthy by hold- intensive, and extent that interferes with their sleep ing a large party despite having only and work. In many cases, they fail to modest incomes.” The President even obstructive make trivial investments in their busi- restricted the number of people and ness and save so little that they cannot amount of food served at weddings to feather coats, a avoid cutting back on meals when they prevent Tajiks, 60% of whom live below suffer a temporary decline in income.” the poverty line, from “using their life human male who The second problem, according to savings just to compete with their neigh- Moav and Neeman, is that conspicuous bors.” buys a Rolex consumption becomes more important The only way to escape the vicious the less human capital a person has cycle of conspicuous consumption is shows to human acquired. Having a degree or a title is to turn it into a virtuous cycle. If one a strong signal about one’s income and incentivizes people to accumulate more females that he is reduces the necessity to buy, say, a Mer- (relevant) human capital and invest cedes Cabrio. more in the education of their children, so rich that he A vicious cycle may be the result: they will become wealthier, and con- when people or societies get poorer, spicuous consumption will lose impor- can afford to buy they expend more on conspicuous con- tance. It may indeed be the case, how- a watch for sumption and less on the education of ever, that such positive dynamics have their children. The reduction in human already set in, given the attention the several thousand capital in the next generation leads to educational system receives by the gov- lower income and increases the neces- ernment, the general appreciation for dollars which sity for conspicuous consumption, both literacy within the Georgian population, through the higher payoff from boasting and the high growth rates that were essentially yields and because human capital cannot serve achieved in the last years. as a substitute for showing off. There- If things go well, driving big cars, using the same utility fore, people consume even more con- expensive cellphones, and other imma- spicuously, leading to even less invest- ture behavior will become less and less as a $20 watch. ment in human capital, and so on. prepotent in the years to come. GEORGIA TODAY JUNE 14 - 16, 2016 BUSINESS 5 MAQRO Construction Commences New Housing Project In Tbilisi

income they generate from rent. laid. Furthermore, there are other pri- PREPARED BY KATIE RUTH DAVIES vate universities in the region. This GREEN DIAMOND project is located in the most conveni- 60% when the construction is completed. ity of our company to the Georgian pub- The Green Diamond project that is being ent place to live or to rent. On top of The more down payment you pay, the lic by completing this project on time. aving delivered its fi rst built in Tbilisi will consist of 1772 resi- that, it is being built with the quality more discount you can get, up to 15%. Green Budapest consists of 351 fully housing project, Green dential apartments. The payment plan and trust of MAQRO.” “In Georgia, people have a great desire furnished homes. This investment is Budapest, in Georgia, that will be offered with this massive to improve their lifestyles, are willing to among the top 10 foreign investments in MAQRO Construction project taking place over a fi eld of 70 LARGE HIGH-QUALITY have better life conditions, but unfortu- the country, according to Georgian has now shifted its focus thousand square meters will also make SURROUNDING nately the fi nancial situation often prevents National Statistics Bureau,” Karaer said. toH a new housing project in Tbilisi. The it easier to purchase homes. Prices are NEIGHBORHOOD them. Green Diamond is the best oppor- Proceeding with the goal of becoming Green Diamond, consisting of 1772 apart- to start from 25,000 American dollars. Underlining that Green Diamond has tunity,” Karaer said. “According to our a global brand, MAQRO Construction ments, was announced to the public with It can be possible to be a homeowner in important opportunities for socializa- fl exible payment terms people have the has made investments throughout Geor- a commencement ceremony on May 28. Green Diamond by paying 2.500 USD tion, Karaer says that the project makes chance to pay only down payment (2500 gia. The company built the four-star Renowned footballer twins Achil and down payment, and monthly installments a difference by its use of ecologic and USD) and monthly payment (totally 7500 hotel of Mercure Tbilisi Old Town and Shota Arveladze participated in the new of 250 USD. green fi elds. “Green Diamond presents USD for 30 months), that is only USD turned it over to the managing company project’s introductory fi lm. buyers with an opportunity as valuable 10,000 USD and the remaining 60% from Accor Group. The Green Diamond is a massive new LIFE AT THE PROJECT WILL as gold. A massive neighborhood with the rent fee, as the last payment is in the Due to MAQRO’s advantageous cir- housing project with not only apartments BEGIN IN MAY, 2018 high standards and 1772 residential apart- period when they can use a bank loan. cumstances in business and investment but a variety of infrastructure, social “Apartments in the new project will be ments built in Tbilisi in a neighborhood MAQRO construction has created unprec- environment, Accor Group continues activities and a green area. built to European standards and deliv- with its own kindergarten, school, swim- edented and tailored payment terms to its cooperation with MAQRO in their Oguz Kaan Karaer, MAQRO Construc- ered after total completion. Those who ming pools, social areas, outdoor and help people have a different, modern life. new project. The company is planning tion’s Chief of Project Development PR, buy the apartments will be able to move indoor fi tness centers, market, café, With this kind of payment term the con- to open its new hotel investment, being Sales & Marketing Offi cer says there is in and start living on the date of delivery. pharmacy, and more. struction of Green Diamond is fi nanced undertaken in cooperation with Accor a need for qualifi ed and complete apart- We are aiming to fi nish this project by MAQRO construction’s own fi nances, Hotel, the IBIS STYLES HOTELS Tbilisi, ments in the country. “MAQRO develops quickly, by May 2018. We are confi dent PERFECT PAYMENT CONDITIONS not from the proceeds of sales. in 2017. projects responding to such needs. We we can do it,” said Karaer. Unit prices start from USD 25,000 in DINEHALL Tbilisi, recently introduced have already begun delivering our fi rst Green Diamond. It is possible to buy an ARCHIL AND SHOTA TO as the fi rst casual café-restaurant in the project, Green Budapest and the sales NEIGHBOR TO A LARGE apartment with a down payment of USD ADVERTISE THE PROJECT world and located in the heart of the city, and marketing process for the new Green UNIVERSITY 2,500 and then monthly installments of The advertising faces of the Green Dia- also opened its doors to guests in June Diamond project began on May 28, 2016.” “The project’s growing investment value USD 250. Units will start redeeming mond project, the Arveladze twins, are with a concept of bringing food and art Karaer went on to underline that the will contribute to the region’s develop- themselves within 2 years with income among the home owners in Green Buda- together. confi dence created by their high quality ment,” said Karaer, ading that a new generated from rent. Investors who invest pest project. MAQRO is also operating in the retail apartments allows these products to be university will be based 600 meters in Green Diamond will be able to redeem “Deliveries in the company’s fi rst pro- sector with its furniture brand, Bellissa. swiftly and easily rented out. Conse- from the Green Diamond project. “The their investment with only income from ject, Green Budapest, began as of this quently, he said, investments made in Georgia Institute of Technology is being rent over seven years. month. Green Budapest is the fi rst pro- MAQRO projects can redeem themselves built over a fi eld of 240 thousand square Customers should pay a 10% fi rst install- ject through which we met the Georgian within seven or eight years with the meters and the foundation has been ment, only 1% monthly for 30 months and market. We are demonstrating the qual- GEORGIA TODAY 6 BUSINESS JUNE 14 - 16, 2016 Contest Winners for New Georgian Digital Print Announced

created the largest Georgian - English BY TATIA MEGENEISHVILI digital dictionary. Further, a special con- gress for lexicography is going to be organized. We also want to create a he winners of the TBC Microsoft translation platform,” Khaz- Georgian A contest were aradze said, adding that the goal of the named at an award cere- project is to defend and develop Geor- mony on June 9 which saw gian print and language. participants having to cre- “This is our national treasure. We ateT their own print of the Georgian should promote the use of Georgian print alphabet, containing all 33 letters. and language in everyday life and defend The winners were expected to be named it from barbarism. As such, we intend in eight categories. However, at the deci- to make this contest an annual one and sion of the Jury, participants of only seven create as many good Georgian prints as categories were awarded. possible,” Khazaradze said. Participants of Modern A, Shorthand Winner in fi ve different categories, A, Adapted A, Academic A, Artistic A, Zurab Miminoshvili, said that this is only beginning and the tradition should con- tinue. “I’m very happy that people like me were given the chance to show their work to the Georgian people. I won in Zviad Tsikolia gifts a watch, many different categories and I’m very designed by him, to Jumber grateful that members of the jury appre- Betchvaia, who was the author ciated my work,” stated Miminoshvili. This is our of his chosen print Another winner, Ia Darakhvelidze spoke of the family tradition that led to her national treasure. Technical A, and Futuristic A categories tribute in any and every category. How- Additionally, Tsikolia gifted a watch, participation in the print contest. “My presented very good samples while sam- ever, participants were allowed to present designed by him, to Jumber Betchvaia, father started creating prints many years We should ples in the Succinct A category, were only one print in each single category. who was the author of his chosen print. ago and I’m just continuing his work. apparently less than satisfactory. According to the organizers, an unex- Chairman of the Supervisory board, I’m overjoyed that my father’s dream promote the use Funded and supported by the TBC pectedly high number of samples was Mamuka Khazaradze, said that project came true and our joint creation will Bank, the project came about thanks to received- in total 160 different Georgian #WriteinGeorgian (#წერექართულად) soon be in common use,” she said. of Georgian print well-known Georgian Designer Zviad prints were registered from March 21 to is something really “quite special and “In my opinion, Georgian print is one Tsikolia as part of the #WriteinGeorgian April 30. rare.” of the most beautiful among existing and language in (#წერექართულად) campaign which Each category had two winners. TBC “The project launched by us is unique languages. Since the world is getting aims to preserve and develop the Geor- bank granted 2,000 GEL to the fi rst place and many interesting initiatives have more and more digital, our print also everyday life and gian language in both print and use. winner and 1,000 GEL to the second, been implemented through it. For exam- needs to be upgraded. This contest has The competition was open for any while E-book house Saba gifted 50 and ple, we held a special course for print contributed to its development,” Tsiko- defend it person, with participants able to con- 25 electronic books, respectively. engineering. Also, within the project, we lia said.

GEORGIA TODAY 8 BUSINESS JUNE 14 - 16, 2016 Georgia’s Foreign Direct Investment Spikes in Q1 2016

in 2014 amounted to USD 25 million (53 BY EKA KARSAULIDZE million GEL) and USD 27 million (57 million GEL) in 2015. First quarter investments from the oreign direct investments (FDI) United Kingdom also showed a dynamic in Georgia amounted to USD increase, reaching USD 44 million (93 376 million (800 million GEL) million GEL) that 12 percent of all FDIs. in the fi rst quarter of 2016, up Since 2014, South Korea has invested 103 percent year-on-year only USD 29 million (61 million GEL) accordingF to preliminary data from the into Georgia in the third quarter of 2015. same period in 2015, the National Statis- That total was easily eclipsed in the fi rst tics Offi ce of Georgia (Geostat) said. quarter of this year with South Koreans Geostat named Azerbaijan, Turkey and already investing USD 32 million (68 the UK as Georgia’s leader investor million GEL). countries. Azerbaijan has already invested The data provided by Geostat shows USD 137 million (291 million GEL), or that three major economic sectors make 36 percent of all FDIs. Geostat said the up 79 percent of all FDI’s in the fi rst majority of Azeri investments went to quarter. Wine Export projects carried out by British Petroleum The largest share, USD 200 million in Georgia’s transport and communica- (425 million GEL), of FDI’s was allocated tion sectors. to the transportation and communica- Investments from Turkey signifi cantly tions sector. Just over 58 million (123 spiked in the fi rst quarter of 2016, reach- million GEL) was invested into the fi nan- ing USD 57 million (121 million GEL). cial sector and USD 40 million (85 mil- Turkish investments in the same period lion GEL) into the energy sector. Increases by 44%

lion (74 million GEL) worth of wine and 59 percent increase, respectively. BY EKA KARSAULIDZE was exported, 16 percent higher year- Russia is also a leader among the on-year. importing countries with 7,560,974 bot- The Agency also stated that in total, tles. Ukraine has 1,853,663 bottles and he National Wine Agency wine, chacha, wine materials, brandy in third place is Kazakhstan with has published data which on tap and brandy alcohol export income 1,620,046 bottles from Georgia so far shows that 15,053,106 bot- this year has already exceeded USD 61.1 this year. tles of wine (bottles of million (129 million GEL) making wine In addition, 3,330,333 bottles of brandy 0.75 liter) were exported a consistent sales and export leader. (0.5 liter bottles) were exported to 13 Tfrom Georgia to 34 countries world- Georgian wine exported to China countries worldwide, 69 percent more wide in January - May 2016. This is 44 rose by 106 percent, amounting to year-on-year with 2015. In total, USD percent higher than this time last year. 1,242,523 bottles. This is followed by 7.7 million (16 million GEL) worth of In the review period, USD 35.04 mil- Ukraine and Russia with a 73 percent brandy was exported this year. GEORGIA TODAY JUNE 14 - 16, 2016 BUSINESS 9 Georgian Airways Receives EASA Permission to Fly to EU

50 Enterprises in Mountainous

European airspace. The Commission BY EKA KARSAULIDZE Areas Benefi tting from Special claimed that this document would con- fi rm their compliance with international aviation safety standards. Taxation System he European Aviation Safety Tbilisi’s Ministry of Economy and Agency (EASA) has Sustainable Development stated that while physical entities are exempt from “50 companies are already operating announced that national the decision fully reiterates that Geor- BY EKA KARSAULIDZE paying income and property taxes for a under the new legislation,” said Nodar fl ag-carrier Georgian Air- gian Airways has met all international ten-year term. Khaduri, the Minister of Finance of ways has met all of the standards to operate in world’s largest The program was initiated this year Georgia. “Moreover, we are actively body’sT safety requirements and will be air traffi c region. he Georgian Ministry of and already has 50 businesses benefi t- working in this direction to promote the allowed to carry out fl ights to Europe. Georgian Airways was established in Finance announced that 50 ting from it. The main aim of the program scheme, running various information According to the declaration, Georgian September 1993 when it initially oper- enterprises located in dif- is to make doing business in mountain campaigns to highlight the benefi ts avail- Airways can perform fl ights to 32 EASA ated charter fl ights to the United Arab ferent mountainous areas areas easier, as well as to develop such able to encourage the establishment of member countries – 28 EU members Emirates, Italy, China, Egypt, India, are already benefi tting from directions as furniture manufacturing, more enterprises in the regions.” and four EFTA countries: Iceland, Swit- Syria, as well as the regular fl ight to theT Mountain Law state program. The construction, production of wine, beer Any interested party can submit an zerland, Norway and Lichtenstein. Vienna. special taxation system allows entrepre- and soft drinks, producing milk and pro- application to the Revenue Offi ce of the The European Commission recently The airline currently carries out reg- neurs in the mountainous regions of the cessing milk products, baking, produc- Ministry of Finance, with the fi nal deci- decided that all airlines from non-EU ular fl ights to Amsterdam, Vienna, Tel country to be exempt from paying profi t tion of agricultural products, poultry sion being made at a Governmental countries should obtain EASA permis- Aviv, Yerevan, Moscow and St. Peters- and property taxes for legal entities, farming, and more. meeting. sion before being allowed to operate in burg. GEORGIA TODAY 10 BUSINESS JUNE 14 - 16, 2016

Contact: www.edelbrand.ge Phone: 599 461908 Successful Experiments with Chardonnay

Option 1: we put the grape in the shaft peeling BY ROLAND BURDIASHVILI and pressing machine, after which we heated the crush to 70-80 Celsius over 24 hours, at the same time mixing it. After this we brought the crush to hardonnay is French white grape vine boiling temperature, the grape stones were added variety and one of the fi rst foreign to the chilled crush (250 g/l -dal) after which we grape varieties to be introduced in added yeast to the crush whereby it was heated at Georgia in the 19th century. At fi rst, 20-22 C0. On the 14th day of fermentation, when due to its low harvest, it was not wide- the sugar content came down to 18%, we mixed it spread,C but from the beginning of the 20th century with alcohol, as a result of which alcohol formation Georgian specialists were showing more interest stopped. As soon as formation was stopped, we and by the 1930s we could fi nd Chardonnay in pressed the crush and the wine-material was placed Mtskheta, Kaspi, Kharagauli, Zestaponi, Bagdati, on a low heat. The sediment was then removed, Gori and Aspindza regions. leaving the content with alcohol and sugar making Chardonnay has been crossbred with Imeretian up 16%. grape varieties, bred as a hybrid marked by high Option 2: Gross undamaged grapes were placed productivity and early ripeness. Chardonnay is now in a wooden barrel, pure yeast culture was added most commonly grown in Upper Imereti. Chardon- and locked hermetically, thus the fermentation nay vine varieties also passed tests in western began under C 2. Over the barrel was placed a C 2 Georgia to be grown on Digomi and Vatchevi farms output pipe, for removing C 2, we observed the and in fact, the regional climate and soil conditions fermentation from the surveillance tube. As in of Kakheti turned out to be the best to get high- Option 1, when the residual sugar composition quality wine products. came down to 18% we mixed it with alcohol, as a Among the positive sides of Chardonnay, aside result of which the fermentation stopped. The crush from the high dignity of the production is its high was pressed and the wine-material placed on a low ability of endurance to powdery mildew, frost and heat. In both options we used 96% wheat alcohol, drought. As researchers have noted, Chardonnay that for two weeks was placed and staid on the cannot stand phylloxera, so for propagation of the chardonnay dried grape stone. vine it is necessary to graft it with properly selected In both options, the obtained product is charac- phylloxera-resistant rootstock. Studies found that terized with high nutrition value. The product in Georgian conditions, Chardonnay was best used obtained through the study is a fortifi ed category as a material for improvement to make high-qual- dessert wine that is distinguished with a dark ity champagne. straw color and taste. Further, in the obtained Nowadays, wine companies in Kakheti have product the composition of phenolic compounds numerous vineyards planted with Chardonnay and is high, about ten times the phenolic compounds Schuchmann Wine Georgia has planted four hec- in white wines produced through the European tares of high quality Chardonnay vineyards. From method. the bulk wine of the Chardonnay vineyard we pro- It is further characterized by a high-extract and duce the sparkling wines traditionally used in moderate content of tannins, is naturally stable and champagne bottle technology. sophisticated, and has a great potential for aging. Wine production and technologies are develop- Our experiment was a success! As a result a high- ing annually, and as such the customer is always quality wine has been created that is rich in its waiting for news. Aiming to create new products, physical and chemical characteristics. namely to produce fortifi ed dessert Kagor type In 2016 Schuchmann plans to produce a large wine, “Kavkasioni,” from the Chardonnay grape amount of such wine and put it into regular pro- variety, which ideally should be 16% alcohol 16% duction. In the fi rst year we will offer our new sugar, we made the following tests. product to Georgian customers, and in future we The major principle lays in the fact that in the plan to export. production method we used the grape stone, enrich- ing the wine with nutritional and taste qualities. Roland Burdiashvili is a Doctoral Student of the Iakob The grape was harvested with 22-23% sugar content Gogebashvili Telavi State University and Production Direc- and was processed in two different ways. tor of “Schuchmann Wine Georgia” LLC GEORGIA TODAY JUNE 14 - 16, 2016 BUSINESS 11 DAAD Scholarship for Higher Education ithin the framework WHAT STANDARDS of the German Lan- SHOULD A STUDENT MEET guage Month, Goe- IN ORDER TO OBTAIN THE the-Institut hosted DAAD SCHOLARSHIP? urge everyone not to miss such a great an information meet- First of all, an applicant should know in opportunity because this is the only such Wing with DAAD (German Academic what language they want to study – in country offering the best education for Exchange Service) aiming at giving German or English. As a rule, there is a free. information to those who wish to acquire greater choice in English Master's pro- Our aim is to make parents believe they higher education in Germany. GEORGIA grams. It is necessary that a student know should give an education to their chil- TODAY met Dr. Martin Praxenthaler, both languages at B1 level. The second dren- be it German education or even the head of DAAD, to discuss the pro- prerequisite is to hold a secondary school in the English language- but in Germany. gram and eligibility for gaining the schol- diploma, though in order for the diploma arship. to be recognized in Germany, the applicant ARE THERE INFORMATION must pass through a one-year foundation CENTERS WHICH HELP course at preparatory college, after which STUDENTS TO PREPARE s/he will be able to enroll in a university DOCUMENTS OR LOOK in Germany. Alternatively, s/he must cover FOR UNIVERSITIES? one academic year here in Georgia and We do not see the need for such centers then continue studying in a Bachelor’s because we are here. We think that if a program, but from the beginning. To be student is not able to look for a univer- accepted for the Master’s program the sity independently and collect all the applicant must hold a higher education documents him/herself, then s/he will Our aim is to diploma from an accredited university. have diffi culties studying abroad. The pre-going process is a kind of test that make parents WHAT ARE THE MAIN every student must pass. They should AREAS FINANCED BY THE AN ARTIST TO APPLY FOR The documents should be submitted a be organized before going and know believe they DAAD SCHOLARSHIP? SUCH A SCHOLARSHIP? year in advance because it takes about every detail necessary. The most popular applied-for program The fi rst precondition is that the artists 6 months to process applications. The should give a is the Master’s program. The scholarship come to us and submit documents as deadline is the end of October while for WHAT DOES THE for the program sees the greatest suc- well as recordings. The recordings must researchers it continues until November SCHOLARSHIP COVER? good education cess and lasts from one to two years. In be done to the highest quality and the 15th. The graduate scholarship consists of this case an applicant is free to choose potential benefi ciary must have already An applicant sends documents to us, EUR 750 Euro but we expect it will go to their children- either German or English language pro- connected with professors in Germany. then the Commission arrives from Ger- up to EUR 850 next year. This covers grams. Study is available in anything After this they can contact us. Addition- many and selects a contingent, after living costs and is calculated absolutely be it German from humanities to law and medicine. ally, the applicants must have a Bachelor's which 130 up to 250 students remain for accurately, being enough to rent an apart- In addition, PhDs and teachers’ programs degree or be a fourth-year student or the next level. The Commission’s deci- ment in Germany. If you decide to rent education or even are available in German and English graduate. sion goes to Germany and the scholar- in a large city, DAAD can add to this languages. In short, they do everything on their ships come from Bonn. amount. The scholarship also covers in the English We also offer a scholarship for the Arts, own and come to us for fi nancial sup- Further to this scholarship, studying expenses if you are together with your which is an exception to the Georgian port. in Germany can be achieved indepen- spouse and/or child. What’s more, if you language- but in reality. dently. Germany is the only country with apply for English courses then DAAD WHAT ARE THE DEADLINES FOR a strong economy in the European Union offers a scholarship to also learn Ger- Germany WHAT IS REQUIRED FROM APPLICATION SUBMISSION? which offers study free of charge. So I man.

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Pick up a copy of Georgia Today Education at any BIBLUS shop or phone 229 59 19 Price: 2 Gel GEORGIA TODAY 12 BUSINESS JUNE 14 - 16, 2016

Bank of Georgia HQ Building Listed Among the Best Examples of Brutalist Architecture

n eccentric Soviet style building located structivist architecture of the 1920s, Chakhava says on the outskirts of Georgia’s capital that the building’s monumental interlocking struc- Tbilisi has been listed as one of the tural grid is rooted in nature. top 10 examples of Brutalist architec- His aim was to occupy as little ground space as ture in the world. possible with the various fl oors of the building AThe building, which is now the Bank of Georgia’s opening out like branches from the central root of headquarters, was the former Ministry of Highway a tree. Construction for Soviet Georgia. It was built in 1975 The New York Times named it as a “Surprising by Giorgi Chakhava, Deputy Minister of the Geor- Discovery for Westerners.” The building has also gia Ministry of Road Construction, both a client been listed by many international publications as and the building’s architect. one of the most vivid and marvelous buildings of Although infl uenced by the Soviet Union’s Con- late Soviet architecture. Burning Old Rubber: Min of Internal Affairs Reveals the Dismal State of Georgia’s Vehicles

91% of cars on Georgia’s roads were produced before 2006

who so often get stuck behind such a rust-bucket BY KATIE RUTH DAVIES spouting out various fumes that would have seen said car scrapped in an EU country, the number of cars 20 years old (or older!) amounts to 50,1539- he amount of vehicles in Georgia is 45 percent of the total vehicles in Georgia, the increasing by the year and the Ana- Ministry claims. lytical Department of the Ministry of The share of seven to ten-year-old vehicles stands Internal Affairs recently announced at 5.6 percent, while 4-6 year-old cars totals 2.1 percent. that that growth rate amounted to 8.23 As for the destination of newly imported cars, Tpercent in 2015. the Ministry of Internal Affairs reports that 38 per- The number of old cars (those produced before cent of the registered vehicles go straight to the 2006) makes up 91 percent of the total, with three- capital city, Tbilisi, 13 percent head to Imereti and year-old or younger cars making up only 1.4 per- Racha-Lechkhumi, while 9 percent end up in Kvemo cent of all vehicles currently on Georgia’s roads. Kartli and 8.2 percent and 8 percent are taken to Worse news, though less surprising to those of us Kakheti and Adjara, respectively. GEORGIA TODAY JUNE 14 - 16, 2016 BUSINESS 13 Rustavi-2 Loses Ownership Want to know Dispute in Appeals Court, Vows WHERE to Go, Stay, to Fight On Eat, Drink and Buy?

As part of Khalvashi’s lawsuit, Tbilisi City Court Judge Tamaz Urtmelidze New Essential Travel Guide ordered a freeze of all of Rustavi-2’s assets and stripped the executive pow- to Georgia Now Available ers of its general director Nika Gvaramia and fi nancial director Kakha Damenia. On November 2, 2015, the same judge ruled in favor of Khalvashi. Urtmelidze, however, partly overturned his decision and reinstated Rustavi-2’s top manage- ment, including its director general and fi nancial director. Supporters of Rustavi 2 and the largest opposition parties say that the court case is an attempt by the authorities and ex- Prime Minister Bidzina Ivanishvili, the eccentric billionaire oligarch who is widely considered to wield signifi cant infl uence over the current government, to silence Rustavi-2 as it is critical cov- erage of the government’s policies. the decision a ‘punishing measure’ against Ivanishvili rejects the claim, saying he BY TAMAR SVANIDZE Rustavi 2 and freedom of speech in Geor- has no infl uence over the courts. gia. During a June 7 press conference with Paata Salia, a lawyer representing Khal- national media, Ivanishvili emphasized bilisi’s Appellate Court on vashi, told journalists that the Court had that shifting ownership of Rustavi-2 Friday upheld an earlier made a correct and fair decision. before the October 8 parliamentary elec- City Court ruling over a “The dispute is not over. The fi ght will tion would be an ‘unpopular and damag- controversial ownership continue, and I hope that Kibar Khalvashi ing’ decision for the country. case regarding Rustavi-2, will win,” Salia said. Rustavi 2 is one of the leading TV chan- Tthe country’s largest independent media Disputes over Rustavi-2 ownership nels in Georgia. The company does not organization, and the transfer 100 per- escalated last year when Khalvashi, who hide its ideological affi liation with Geor- cent of its ownership to former owner owned the company in 2004-2006, gia’s main party, the United National Kibar Khalvashi more than a decade ago. attempted to reclaim his shares after he Movement. Following the ruling, Judge Natalia said his assets in the company had been Gvaramia, who held a number of lead- Nazgaidze, who chaired the tribunal, forcibly seized by the government of ex- ing positions in Saakashvili’s government, emphasized that an appeal can be fi led President Mikheil Saakashvili. denies any direct involvement by the with the Supreme Court within 21 days. Khalvashi demanded USD 500,000 in UNM in the activities of Rustavi 2. He Rustavi-2’s current owners, Levan and compensation from the current share- claims that Rustavi 2’s goal is to contrib- Grab your free copy of WHERE (without discount cards) at one of the hotels Gia Karamanashvili, said they plan to holders and demanded that their owner- ute to Georgia’s Euro-Atlantic integration or café-bars in central Tbilisi. Feel free to call WHERE HQ anytime to order your copy of WHERE & WHERE Discount Cards. TEL +995 032 2295919. fi le an appeal after their lawyer called ship be annulled. and freedom of speech in the country. GEORGIA TODAY 14 BUSINESS JUNE 14 - 16, 2016 The Gated Krtsanisi Residence PREPARED BY KATIE RUTH DAVIES

rban Development, col- laboratively with Cush- man & Wakefi eld | Veritas Brown, have reached and signed a benefi cial long- termU agreement on an exclusive base for the upcoming Krtsanisi Residence devel- opment. The project is spread over 26, 000 sq.m. in Krtsanisi Residential Area. The address was particularly selected for its incomparable combination of geographical location and climate zones. The development comprises a limited number of exquisitely designed com- munity that incorporates Town Houses, Lofts and Villas with magnifi cent mod- ern exterior. The project is scheduled to be completed by May 2017. While capturing a premium, ecologi- cally friendly, secured and private envi- ronment, the development is just a 3 minute drive from the Old Town. The Krtsanisi Residence is surrounded by Diplomatic Corps (the embassies of Switzerland, Japan, France, The United Kingdom of Great Britain and Northern Ireland, Lithuania and Germany) which additionally guarantees a high level of safety, security and privacy to the com- “We believe that the Krtsanisi Resi- the project to create an environmentally David Kvirikadze, Managing Partner at ther, the project benefi ts from extraordi- munity residents. dence will provide more than just ser- friendly, energy effi cient solution that Urban Development.. “The Krtsanisi nary services such as concierge, security Technologically it is above the board vices and amenities; it will have an characterizes the project with a high Residence is our fi rst ambitious project. 24/7, handyman, gardener and cleaning in every detail and meets all international atmosphere that inspires. We are com- degree of social responsibility. We are creating a family-friendly com- service. As for amenities, the development standards as guaranteed by the interna- mitted to creating an unprecedented “Each apartment interior is open to the munity that will be the best place for will feature meeting room/business lounge, tionally and locally revered names that residential opportunity that will refl ect outdoors, allowing natural light to come socializing and interaction. Moreover, gym and sauna, parking, an open play- have been contracted to secure all the all international standards,” said Giorgi into the rooms. The ceiling height adds big squares and multiple amenities will ground for children and outdoor fi tness crucial sectors of development. Arveladze, Managing Partner at Urban value to the project, the higher the bet- bring the Old Tbilisi culture back into equipment,” the company claims. Development. ter, which is why we decided to keep it the modern gated community. In this “We believe that exclusive service “Market research and our experience 3.22 meters. Additionally, the Krtsanisi regards, our idea was to create high-level belongs to an exclusive home. Your have revealed that there is big demand project has open planning that adds a expectation in every detail,” he said. Residence becomes an extension of your for a modern residential community and sense of elegance to the development. The environment is recognized to be own highly refi ned world. Knowing that we believe that the combination of unique Good architecture retains the value, so changing for the worse due to mass energy your Residence will be impeccably man- architecture, amenities and exceptional when it comes to the residences, we consumption; however, more buildings aged gives you total ease and freedom. service standards will satisfy the needs believe that there is no better place than are needed for businesses and residences In Krtsanisi Residence you are not buy- The Krtsanisi of the buyer. To secure all the important Krtsanisi Residence,” Arveladze said. to satisfy an expanding population. As ing an apartment, you are buying a com- sectors of the development we have Sustainable architecture and going green such, it is important to develop a more munity,” said Giorgi Arveladze. Residence is our approached internationally well known is all about fi nding alternative solutions eco-friendly atmosphere. “Initially, our “One of the most prestigious and prom- names in their respective fi elds. The Krt- to decades-old problems. Such advances concept was built around this idea, so we ising real estate projects” - is how the fi rst ambitious sanisi Residence will feature the latest are not always obvious to the naked eye. created an energy effi cient, eco-friendly Krtsanisi Residence is defi ned. Opinions technological advances and the highest However, many modern buildings are full gated community. Correspondingly, we towards the project are actively shared project. We are level of design. For this purpose we have of exciting innovations that make them recommend new investments to be put by society and industry professionals in approached Henning Larsen Architects, far friendlier to nature than their prede- into eco-friendly buildings. In the fast- growing interest and demand to live in creating a family- an international architectural company cessors. Whether they add green space expanding city where the majority of an ecologically healthy environment with a very strong background. Our goal to our urban environment or power up districts are highly polluted, we aim to with close proximity to the city center friendly community was to create vibrant, sustainable build- using renewable energy, structures construct a benefi cial, and non-harmful and qualities that time does not change, ings that reach beyond themselves.” designed with sustainability in mind are to the environment, resource-effi cient such as the location. Considering these that will be the Henning Larsen Architects is behind becoming more common around the project,” Kvirikadze said. views and the architectural uniqueness, the design of the numerous visionary world and now in Georgia, too. “Life in Krtsanisi Residence will offer the Krtsanisi Residence is indeed one of best place for and distinctive projects, its experience “The location of the Residence is ideal, exceptional residential and ownership the most desirable projects in the city. refl ected in the many prestigious and as Krtsanisi is now becoming a new experience. Residents will be assisted by socializing and international awards it has received over heartbeat of the city with its location, attentive and discreet staff that are intensely For additional information call: +995 599 decades of work. They have developed surrounded by an ecologically friendly, aware of all unique preferences and will 21 21 00 interaction the concept and architectural design of secure and private environment,” said perfectly anticipate everyday needs. Fur- www.veritasbrown.com GEORGIA TODAY JUNE 14 - 16, 2016 BUSINESS 15 Energy Security Conference Shows Wooden Clock and Georgia as Reliable Furniture Enterprise Partner to Open in Georgia

the Woodmaster Company will produce created thanks to the project in its early BY EKA KARSAULIDZE furniture, wooden products, and watches stages. I’m confi dent this trend will con- and their components. Within two years, tinue,” Kvirikashvili said. the company will be expected to be pro- furniture and clock produc- ducing at least 3,000 units of furniture, tion company is soon to 1,500 wooden products and 50 clocks. opened in Georgia, claims At present the government is consid- the Prime Minister of Geor- ering a process of direct sale of the antees supply of additional gas to the gia, Giorgi Kvirikashvili. enterprise to Woodmaster, which is cur- BY EKA KARSAULIDZE pipeline,” said PM Kvirikashvili. AThe company will open in the framework rently under state ownership. Kvirikashvili then focused on joint of the state program ‘Produce in Geor- The Prime Minister pointed out that programs with Azerbaijan and highlighted gia,’ with an approximate investment of more and more companies are making he International Energy the role of the US, which provides strong up to 1,793,000 GEL. use of the state program and are included Forum ‘Energy Security – support for ensuring energy security. The Ministry of Economy and Sustain- in the Produce in Georgia list. “There is Old and New Geopolitical “The United States is an important able Development of Georgia says that a high number of companies which were Paradigm’ opened in Tbilisi strategic partner. This is a partnership on June 9, focusing on the that has been in place for 25 years, since Trapidly changing global energy environ- Georgia regained independence. There- ment, the pressure of globalization, and fore, implementation of strategic projects, the existing trends and challenges in the such as the "Baku-Supsa", "Baku-Tbilisi- energy fi eld. In attendance were repre- Ceyhan Oil Pipeline," and "Baku-Tbilisi- sentatives of the diplomatic corps and Erzurum gas pipeline" became possible civil society, politicians, scientists and largely due to US support. The US is a experts from different countries. power of great regional importance. Our Georgia’s Prime Minister, Giorgi Kviri- region has frozen projects- we face ter- kashvili, addressed participants and spoke rorism related threats and, therefore, it about Georgia’s energy security, the cur- is impossible to mitigate and fi ght these rent and planned energy projects, Geor- dangers without the support of the United gia's role as a transit country and about States,” said the PM. the country's strategic geographical He also noted that Georgia has dem- location. He also mentioned the invest- onstrated that it is a stable partner for ment opportunities and the importance the West, and represents a decent base of the New Silk Road and Economic Belt for the expansion of cooperation between project, connecting East and West. the countries of the East and the West. He also mentioned that the overall The role of Georgia and neighboring volume of investments made in the countries, including Azerbaijan, Arme- energy sector amounts to USD 45 billion nia and Turkey, in the global energy (95 billion GEL), of which USD 2 billion processes was another main theme of (about 4 billion GEL) was invested directly the Conference. The discussion also in Georgia. touched upon the ability of the European “We recently celebrated the 20th anni- Union and western countries to foster versary of the fi rst transit project, the the transit role and function of Georgia Baku-Supsa Pipeline. The pipeline was and strengthen its comparative advan- the fi rst project to put Georgia on the tage. energy map. Since then we have imple- The conference was organized by the mented several important projects, Economic Policy Research Center including the Baku-Tbilisi-Ceyhan pipe- (EPRC), the Konrad Adenauer Founda- line, the South Caucasus gas pipeline tion (KAS) and the US Embassy to Geor- and the Shah Deniz project, which guar- gia.

PUBLISHER & GM Journalists: Photographer: ADDRESS Reproducing material, photos George Sharashidze Tony Hanmer, Tamar Svanidze, Zviad Nikolaishvili 1 Melikishvili Str. and advertisements without Zviad Adzinbaia, Beqa Tbilisi, 0179, Georgia prior editorial permission is COMMERCIAL Kirtava, Meri Taliashvili, Eka Layout: strictly forbidden. DEPARTMENT Karsaulidze, Zaza Jgharkava, Misha Mchedlishvili Tel.: +995 32 229 59 19 The author is responsible for Commercial Director: Maka Bibilashvili, Karen E: [email protected] all material. Rights of authors Iva Merabishvili Tovmasyan, Dimitri Webmaster: F: GeorgiaToday are preserved. The newspaper Marketing Manager: Dolaberidze, Maka Sergey Gevenov is registered in Mtatsminda Mako Burduli Lomadze, Tim Ogden, ADVERTISING & district court. Ana Akhalaia, Robert Isaf, Circulation Managers: SUBSCRIPTION EDITORIAL DEPARTMENT: Joseph Larsen, Will Cathcart, David Kerdikashvili, +995 595 279997 GEORGIA TODAY Editor-In-Chief: Vazha Tavberidze, Nugzar B. David Djandjgava E-mail: marketing@ Reg. # 06/4-309 Katie Ruth Davies Ruhadze georgiatoday.ge