Georgians Seek Fortune in Bitcoins

CONTEST FOCUSES ON CRRC: HOW ARE GEORGIANS MADE IN GEORGIA: INNOVATION AND IMPACT SAVING FOR RETIREMENT? SWISS CHEESE

Investor.geA Magazine Of The American Chamber Of Commerce In Georgia ISSUE 59 OCT.-NOV. 2017

OCTOBER-NOVEMBER/2017 Investor.ge | 3 Investor.ge CONTENT 6 Investment news

8 One Investment, Eleven Projects, Cleaner Air

10 New Awards Program to Encourage Innovation Impact Hub at Fabrika is hosting the international Social Impact Awards, a competition for students in Tbilisi and Telavi. The awards aim to encourage innovation and social entrepreneurship in Georgia.

14 Farming for Currency: Georgians Wade into 14 Bitcoin Mining Bitcoin farming—the process of using computers to mine the digital currency—is slowly catching on in Georgia, especially among IT specialists.

18 Dynamism among the Young with Retirement Planning in Georgia

20 A Tbilisi Exodus or Alarming Urban Sprawl? 20 Investor.ge looks at the growing impression that growing real estate prices, traffic congestion and air quality are pushing people to look for homes outside of Tbilisi.

24 From the Experts: Are Tbilisians leaving the city?

26 Alpine Gold: Swiss Cheese Made in the Georgian Mountains A Georgian-Swiss partnership is reviving a lost tradition of Alpine cheese manufacturing in the Georgian mountains. 33 30 Georgian Chess - A New Generation 33 A Place on the Team: A New Push for Equality in Sports

36 Tbilisi Neighborhoods: Vake

39 NEWS ...... 39

4 | Investor.ge OCTOBER-NOVEMBER/2017

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OCTOBER-NOVEMBER/2017OCTOBER-NOVEMBER/2017 Investor.geInvestor.ge | 5 INVESTMENT NEWS

INVESTOR.GE PROVIDES A BRIEF UPDATE ON INVESTMENTS AND CHANGES IN GOVERNMENT POLICY THAT COULD IMPACT THE BUSINESS ENVIRONMENT. THE INFORMATION IN THIS ISSUE WAS TAKEN FROM AGENDA.GE, A NEW AIRPORT ARRIVALS’ the priority directions of the govern- GOVERNMENTSUPPORTED TERMINAL OPENED ment. Today we already have high-speed WEBSITE, AND OTHER Georgian Prime Minister Gior- internet in Tusheti, which will support SOURCES. gi Kvirikashvili opened the new, the social-cultural development of the 12,000-square-meter arrivals terminal region and will meet the needs of tourists at Tbilisi Shota Rustaveli International that visit Tusheti,” Minister of Economy Airport on September 26. and Sustainable Development Giorgi “Development of aviation has always Gakharia was quoted as saying. been and remains as one of our main pri- orities, because the percise development GEORGIA’S AIRPORTS SEE UPTICK of the air market, airports and navigation IN PASSENGERS infrastructure, as well as increasing the More passengers traveled through LQÀRZRIWRXULVWVDQGQHZÀLJKWGHV- *HRUJLD¶VWKUHHPDLQDLUSRUWVLQWKH¿UVW tinations, are the preconditions for the eight months of 2017 than compared development of tourism in the country,” to the same period last year, agenda.ge Kvirikashvili said. reported on September 8, citing statis- The new terminal will be able to tics from the Georgian Civil Aviation serve four million people a year, accord- Agency. LQJWRWKHUHSRUWDLUFRPSDQLHVÀ\WR A total of 2.7 million passengers have 45 destinations from Tbilisi International passed through Tbilisi Shota Rustaveli Airport, agenda.ge said. International Airport, Batumi Interna- tional Airport and Kutaisi David Agh- HIGH-SPEED INTERNET INSTALLED mashenebeli International Airport in the IN GEORGIA’S REMOTE TUSHETI ¿UVWHLJKWPRQWKVRIWKH\HDU²D REGION percent increase compared to the same Twenty-four villages in Georgia’s period last year, the report said. remote Tusheti region have high-speed Tbilisi Shota Rustaveli Interna- internet access thanks to a $40,000 tional Airport has seen the most pas- project implemented by the Tusheti VHQJHUV²VOLJKWO\RYHUPLOOLRQD Development Fund and the organization 42.78 percent increase y/y. The biggest Internet Society, agenda.ge reported on LQFUHDVH²SHUFHQW²ZDVUHFRUGHG September 12. at Batumi International Airport. Batumi “The ‘internetization’ of the country, International Airport has experienced a and especially of the regions, is one of 66.36 percent increase in passengers in

6 | Investor.ge OCTOBER-NOVEMBER/2017 the past eight months compared to the same period last year. GEORGIA TO PRODUCE JEANS FOR FAMOUS The report noted that smaller airports in Georgia have also BRANDS seen more travelers this year: Queen Tamar Airport in Mestia, A new factory in Georgia’s western Guria region will pro- 6YDQHWLUHJLRQKDVVHUYHGSDVVHQJHUVZKLFKZDVD duce jeans for famous brands like Zara, Mango and Massimo percent increase y/y, agenda.ge reported. Dutti, agenda.ge reported on September 1. The factory, which will open in the town of Ozurgeti in 2018, OVER $300 MILLION IN FDI IN THE SECOND QUARTER is part of the government’s Produce in Georgia program. An OF 2017 estimated 350 people will be employed, the report said, and the Georgia received $346.6 million in foreign direct investment Turkish investor behind the project will invest 1.7 million lari. (FDI) in the second quarter of the year, agenda.ge reported on The investor is part of the Turkish textile production network September 8, citing preliminary data from the National Sta- Baykanlar; no additional details were provided in the report. WLVWLFV2I¿FH7KHFRXQWU\DWWUDFWHGPLOOLRQLQWKHVDPH period in 2016. TURKEY, RUSSIA AND CHINA ARE GEORGIA’S TOP The top three countries for FDI in Georgia in the second TRADE PARTNERS quarter were: Turkey, Russia and China are Georgia’s top trade partners $]HUEDLMDQPLOOLRQ SHUFHQWRIDOO)', LQDFFRUGLQJWRRI¿FLDOVWDWLVWLFVDJHQGDJHUHSRUWHG 7KH1HWKHUODQGVPLOOLRQ SHUFHQWRIDOO)', on August 21. Georgia’s trade turnover with European Union 7XUNH\PLOOLRQ SHUFHQWRIDOO)', member states has increased 11 percent compared to the same The majority of the foreign investments (66.3 percent) were period last year. made in three sectors: transport and communications: $130 ADVERTISEMENT million (37.6 percent of FDI); construction: $70 million (20.2 SHUFHQWRI)', DQGKRWHOVDQGUHVWDXUDQWVPLOOLRQ percent of FDI).

MILLION-LARI INVESTMENT PLANNED IN KUTAISI Indian investors plan to invest 1.5 million lari in Kutaisi, the agenda.ge website reported on September 1. 7KHLQYHVWRUVZLOOEXLOGD¿YHVWRU\EXVLQHVVDQGUHVLGHQWLDO complex in Kutaisi, according to the report. The project will be implemented with the support of the government’s Produce in Georgia program and will be com- pleted in September 2018, the report said, adding that 20 jobs will be created at the new complex.

OVER A MILLION VISITORS TO GEORGIA IN AUGUST 2017 Over a million people visited Georgia during the month of August 2017, agenda.ge reported on September 4. Georgia’s Ministry of Internal Affairs reported that SHRSOHDUULYHGLQWKHFRXQWU\LQ$XJXVWDQLQFUHDVH of 27.4 percent compared to the same period last year. Out of the total number of visitors, over half a mil- OLRQ²²ZHUHWRXULVWVWKHUHSRUWVDLGDQGSHU- FHQW²SHRSOH²ZHUHWUDYHOLQJWKURXJKWKHFRXQWU\ The highest number of visitors arrived from Armenia, followed by Russia, Azerbaijan, Turkey, Ukraine and Iran.

OCTOBER-NOVEMBER/2017 Investor.ge | 7 It was funded by BP and its oil and gas co-venturers and One Investment, LPSOHPHQWHGE\WKH(QHUJ\(I¿FLHQF\&HQWHU*HRUJLD Funding recipients introduced a variety of changes to help reduce pollution and energy spending in their communities: UHSODFLQJLQHI¿FLHQWOLJKWLQJV\VWHPVZLWKPRGHUQ/('OLJKW- Eleven Projects, ing; installing solar thermal systems and solar PV systems; and improving energy performance of buildings. Results from the activities indicate that, by December 2016, Cleaner Air as much as 2,440,300 kWh energy have been saved, about 406,000 Kg CO2 emissions have been reduced, and energy BP AND ITS OIL AND GAS CO-VENTURERS bills have been reduced by up to 253,000 lari. FUNDED A THREE-YEAR PROJECT TO “Partnership with the municipalities within the three-year SUPPORT 11 ENERGY EFFICIENT PROJECTS HQHUJ\HI¿FLHQF\SURMHFWDOORZHGXVWRFRPELQHWKHHIIRUWVWR THAT WERE LAUNCHED IN PARTNERSHIP reduce CO2 emissions and helped introduce renewable energy WITH THE MUNICIPALITIES IN EIGHT DQGHQHUJ\HI¿FLHQF\WHFKQRORJLHVLQ*HRUJLD´&KULV6FKOXHWHU CITIES IN GEORGIA. THE CLEAN ENERGY general manager for BP in Georgia, said. TECHNOLOGIES INTRODUCED IN VARIOUS ³(QHUJ\HI¿FLHQWSURMHFWVODXQFKHGLQHLJKWFLWLHVZLOOFRQ- MUNICIPAL BUILDINGS AND OTHER WLQXHWREULQJVLJQL¿FDQWEHQH¿WVIRUPDQ\\HDUVWRFRPH7KHVH projects are good examples of BP’s successful partnership with FACILITIES IN THE COUNTRY HAVE HELPED local municipalities and long-term commitment to Georgia.” TO REDUCE ENERGY BILLS, IMPROVE THE BP and its partners have supported a total 34 projects QUALITY OF THE SUPPLIED ENERGY, AND WKDWVXSSRUWHQHUJ\HI¿FLHQF\LQ*HRUJLDUHVXOWLQJLQXS REDUCE AIR POLLUTION. to 4,354,500 kWh energy saving; about 1,012,000 Kg CO2 UHGXFWLRQVLQHPLVVLRQVDQGXSWR*(/VDYLQJLQ energy bills. From 2008 up to today, the company has invested The quality of the air, especially in capital Tbilisi, has in- LQWKHHQHUJ\HI¿FLHQF\SURMHFWVDFURVVWKHFRXQWU\ creasingly become an issue of concern. Eka Grigalava, Deputy Minister of the Environment and Georgia’s Environment Minister Gigla Agulashvili told Natural Resources Protection of Georgia believes that clean parliament earlier this year that the air quality situation in the energy projects will help Georgia’s long-term sustainable country “should not be satisfactory for us, and we are working development. to improve the situation,” OC Media reported. “Despite Georgia’s ample hydro resources we have an ob- The ministry’s report on air quality found that there was a ligation to develop other alternative energy sources to respond higher than permissible volume of harmful substances in the to the climate change. I am delighted that thanks to BP and air in six cities Georgia in 2016. Nitrogen dioxide levels were its partners the electricity generating solar photovoltaic micro high in all the cities monitored; Tbilisi was the only city where power station connected to utility grid was installed in the Youth the study found high levels of carbon monoxide, according to Palace,” she said. the report. “This is a great venue for a demonstration project. I am sure

that every student of the Youth Palace who spends a lot of time REDUCING POLLUTION studying here will learn about this micro solar station, the new source of clean energy.” ,QQRYDWLYHSURMHFWV¿QDQFHGE\%3WKURXJKRXWWKHFRXQWU\ Deputy Minister of Energy of Georgia, Marika Arabidze have helped reduce pollution and energy costs in eight cities noted that public-private partnerships are important for the in Georgia. development of the cleaner energy sources. 7KHSURMHFW³5HQHZDEOHHQHUJ\DQGHQHUJ\HI¿FLHQF\ “I would like to thank all parties involved in the project. project for Georgian municipalities,” was launched three years Only by acting together we will be able to play our part in the ago and focused on projects in eight Georgian cities: Tbilisi, development of the cleaner energy sources contributing to Rustavi, Telavi, Gori, Zugdidi, Kutaisi, Batumi and Akhaltsikhe. Georgia’s energy independence,” she said.

8 | Investor.ge OCTOBER-NOVEMBER/2017 OCTOBER-NOVEMBER/2017 Investor.ge | 9 New Awards Program to Encourage Innovation

10 | Investor.ge OCTOBER-NOVEMBER/2017 Photo by George Surguladze and Social Impact Awards.ge IMPACT HUB AT FABRIKA IS HOSTING THE INTERNATIONAL SOCIAL IMPACT AWARDS, A COMPETITION FOR STUDENTS IN TBILISI AND TELAVI. THE AWARDS AIM TO ENCOURAGE INNOVATION AND SOCIAL ENTREPRENEURSHIP IN GEORGIA. STORY BY INGE SNIP, PHOTOS BY GEORGE SURGULADZE AND SOCIAL IMPACT AWARDS.GE

OCTOBER-NOVEMBER/2017 Investor.ge | 11 SOCIAL IMPACT AWARDS: INSPIRING STUDENTS TO ACTION each other, but really face problems INNOVATIONS FOR SOCIETY e decided that we when communicating with others [who wanted to contribute are hearing].” The winner of the social impact award was announced on September 28. Here is “Wto the development of The team worked closely with the DOLVWDQGEULHIGHVFULSWLRQRIDOOWKHÀQDOLVW social entrepreneurship in our country,” deaf community to understand their projects. The information was taken from the website www.socialimpactaward.ge. Elene Jvania, one of the organizers, tells needs. For example, Banunashvili notes that the team “created a Bluetooth con- Book AR – A mobile application, based Investor.ge. on augmented reality, which helps stu- “Through the Social Impact Awards, nection, instead of an app, as they told dents to understand and visualize informa- we are trying to build a community of us that most deaf people do not have the tion from textbooks. The project includes a website that allows designers, freelancers students that transform intentions into ¿QDQFLDOUHVRXUFHVIRUDVPDUWSKRQH´ and developers to create content for our action,” she explains. application and earn additional revenue. Social entrepreneurship is when a MARRYING ART AND COMMERCE Braille Reader – A special eBook read- Another team is trying to give urban er for blind people, which, by changing company is created to solve social, cul- the shape of its screen’s surface depicts tural, or environmental issues. It differs areas more color by giving street artists Braille letters in any language. The, goal of from an NGO in that it does not rely on the possibility to portray their art on gray the project is to equip schools with desks, which have Braille Reader technology grants by donor organizations, but in- building blocks built during Soviet times, built in. This will let anyone to learn Braille stead develops a self-sustaining business while giving advertisers the possibility much easier. plan, either B2C (business to consumer), to contribute as part of their Corporate Ecoland – A garbage bin with several Social Responsibility programs. chambers that can automatically sort or B2B (business to business), or a com- waste. As a motivation to use this particular bination of both. Spectrum, the name of their project, garbage bin, Ecoland created a score The awards in Tbilisi attracted over FRQVLVWVRI/L]D.DUWYHOLVKYLOL7RUQLNH system. Collected points can be bartered for different kind of products and services, 200 workshop participants, which even- Petriashvili, Kristine Nachkebia and such as free minutes for mobile phones, tually sorted into 48 teams of about 180 Tsotne Davlianidze. They decided to cinema or theater tickets, etc. students. “This means 48 new social create their potential social enterprise in IKids – A free website that enables chil- response to urban decline. dren with atypical development to gain business ideas were created!” Jvania necessary skills and adapt to the irenviron- says enthusiastically. On September 28, “Your environment has a direct in- ments. All of this will happen with games an independent jury selected two win- ÀXHQFHRQ\RXUKHDOWKDQGGHSUHVVLQJ and video lessons. It will be fun, colorful and most importantly it will be available ning teams, while a third winning team surroundings have a negative impact on for everyone. was chosen through online community your mental health,” Petriashvili explains Make Up and Make Alive – “Magic” voting. to Investor.ge. pencils with special capsules that dissolve in water. In each capsule there is soil and Other teams who have made it to the seeds of plants, which are really easy to BRIDGING A COMMUNICATION WRSVHYHQLQWKH¿QDOVDUH%UDLOOH5HDGHU sprout. This project aims to give a chance DIVIDE an eBook reader for the blind; Ecoland, a to the “digital” generation to interact with the environment. Among these teams is Sign and self-sorting garbage can; IKids, a playful

Sign and Sound – Innovative gloves Sound, gloves for deaf people that trans- platform helping children with learning that translate sign language into voice. late sign language into spoken words. disabilities through games; and Make The project is a new opportunity for people with hearing impairments. With these The team, consisting of Free University Up and Make Alive, a magic pencil with gloves they will be able to effectively students George Bestavashvili, Davit gardening seeds to promote playing in communicate in society. Targamadze, and Beka Banunashvili, nature. Spectrum – Gray walls, blocks from decided to develop the glove to enable Soviet times, black-and-white environment – these are an essential part of our deaf people to speak with hearing people. ENCOURAGING CONNECTIONS everyday routine. The project aims to “We live close to the only deaf school Strategy and social change consultant color gray buildings in the city by involv- ing private companies and talented in Tbilisi, on Nutsubidze,” Bestavashvili Maggie Osdoby Katz, who works from artists. New generations will grow up in a explains to Investor.ge. “Growing up and Tbilisi, tells Investor.ge that the awards better environment and artists will have a seeing them talking to each other vividly are a great way to expose Georgia to new chance to express themselves about any topic they care about. Let’s make Tbilisi in sign language, we realized that [deaf ways of doing business and to connect more colorful. students] can easily communicate with students and entrepreneurs to a global

12 | Investor.ge OCTOBER-NOVEMBER/2017 community. year on a larger scale throughout Geor- Katz believes expanding the com- “It’s not just about learning how to gia in cities, towns and villages, Impact petition to other cities and towns in the GHYHORSDEXVLQHVVSODQ²WKHSURFHVVLV Hub co-founder Jvania tells Investor.ge. country will have a real impact. about building a culture of innovation, Impact Hub had hoped to scale up the “Helping students throughout the collaboration and mentoring, all of which awards throughout the whole country country explore this idea of doing well are still (rapidly) developing here,” Katz this year, but could only organize them ZKLOHGRLQJJRRG²DQGEHLQJSDUWRI explains. in Tbilisi and Telavi due its limited DJOREDOFRPPXQLW\FRPPLWWHGWRLW² The awards will be organized next capacity. could plant a powerful seed,” Katz says.

OCTOBER-NOVEMBER/2017 Investor.ge | 13 BITCOIN FARMING—THE PROCESS OF USING COMPUTERS TO MINE THE DIGITAL CURRENCY—IS SLOWLY CATCHING ON IN GEORGIA, ESPECIALLY AMONG IT SPECIALISTS. STORY BY NINO BAKRADZE

14 | Investor.ge OCTOBER-NOVEMBER/2017 Farming for Currency: Georgians Wade into Bitcoin Mining

OCTOBER-NOVEMBER/2017 Investor.ge | 15 when I started this process. Now a lot of people want to start this activity and the price of video cards has increased. Today LWLVYHU\GLI¿FXOWWR¿QGWKH>QHFHVVDU\@ YLGHRFDUGDQGLI\RXVWLOO¿QGLWLWLV so expensive that it is no longer worth buying. In recent months, there has been a boom in generating cryptocurrency. In Kutaisi alone, I assisted my six friends to arrange a “farm” at their houses,” Chikhladze told Investor.ge.

SURFING FOR BITCOINS Dato Natsvlishvili, who created the web and Facebook page called “How to Earn Bitcoins” for people interested in this activity, tries to generate digital currency without expensive equipment. Cur- rently, his page has over 300 followers. Natsvlishvili calls the process “surfing” and explains the rules and proce- o one controls Bitcoins. They into Georgian lari. dures to newcomers through his Face- aren’t printed like dollars or There are no statistics on how many book page. To earn Bitcoins through Neuros and manipulated by a Georgians are mining Bitcoins or other ³VXU¿QJ´SHRSOHYLVLWGLIIHUHQWZHESDJ- central bank; they’re produced by people forms of digital currency, but anecdot- es and watch advertisements. In return, DQGEXVLQHVVHVDOORYHUWKHZRUOG²DQG ally, the number is increasing. Gaga they receive Satoshi (a small amount of have become a new source of income for Chikhladze has been generating Ether, Bitcoin) in their digital wallet (account). a growing number of Georgians. another type of digital currency, for six “Generating Bitcoin may take up to one Bitcoins are created by running months out of his home in Kutaisi. \HDUWKURXJKVXU¿QJEXW\RXGRQRWKDYH computers with software that solves Ether is the second most valuable any costs. I started my Facebook page for mathematical problems. form of digital money after Bitcoin. The people who do not have enough money Very strong servers can solve these technology it runs on is called Ethereum, to buy special equipment for mining, but problems quickly and their given owner ZKLFKZDV¿UVWGHVFULEHGE\\HDUROG still want to earn Bitcoins,” Natsvlishvili periodically gets a new Bitcoin in his or Bitcoin programmer Vitalik Buterin in told Investor.ge. her wallet account. /LNH%LWFRLQLWLVDGHFHQWUDOL]HG He says he decided to create a web- One bitcoin currently costs $4,450. payment network, which is not con- page about the process in August because trolled by a bank or other third party. people were asking him for help. Now GEORGIAN BITCOIN FARMERS /LNH%LWFRLQV(WKHUHXPXVHVWKHVDPH demand has increased and he has plans The digital currency is gaining popu- blockchain technology, and transactions to further develop his site and Facebook larity in Georgia: the leading Bitcoin- are visible for everyone on the network. SDJH²DQGSHUKDSVVWDUWHDUQLQJPRQH\ mining company in the world owns two Chikhladze said he decided to gen- from the advice he provides. facilities in Georgia and says the business HUDWH²RU³IDUP´²(WKHUEHFDXVHWKH Three other Facebook pages run by is successful. process is less expensive than Bitcoin Georgians also publish information about Today, Georgian entrepreneurs are mining. “This process requires less elec- the Bitcoin industry to over 15,000 fol- also generating digital currencies by the WULFLW\DQGWLPHVRLWLVPRUHSUR¿WDEOH,W lowers, collectively. Mostly the so-called help of machines installed in their homes. was easier to buy the video cards that the “farmers” are IT specialists, who are The Bitcoins they mine can be converted computer needs to generate the currency skilled enough and know how to mine

16 | Investor.ge OCTOBER-NOVEMBER/2017 digital currency. They treat mining as an capitalization,” says Efremidze. miner, says that he can generate $200- additional income and worth investing Generating Bitcoin Cash is not very 300 dollars’ worth of Ethereum monthly, money in. popular with Georgian miners yet, Inves- which he later converts into Bitcoins. tor.ge found, although many say mining He is saving this money for the future, BITCOIN CASH VS BITCOINS for digital currency is worth the time and when Bitcoins will hopefully be worth On August 1, some of the miners cost. Gaga Chikhladze, the Ethereum even more. DQGGHYHORSHUVLQLWLDWHG²HIIHFWLYHO\ FUHDWHG²DQHZFXUUHQF\%LWFRLQ&DVK Bitcoin Cash has implemented an increased block size of 8MB, to accelerate WKHYHUL¿FDWLRQSURFHVVWKURXJKZKLFK miners could get more cryptocurrency in less time. A Brief History of On the other hand, Bitcoin Cash requires more computer storage space Bitcoin from people who want to take part in the mining process. Bitcoin dates back to 2008, when the paper “Bitcoin: A Peer-to-Peer Electronic Cash System” was posted “Bigger players with access to server on a cryptography mailing list under the name Satoshi farms and big budgets will have no prob- Nakamoto. lem running bigger nodes, but smaller The paper outlined how a peer-to-peer network operators could be squeezed out,” said could creat “a system for electronic transactions with- Dr. Garrick Hileman, research fellow out relying on trust,” according to a Wikipedia article at the Cambridge Centre for Alternative on Bitcoin. Finance, to the BBC. 7KHGLJLWDOFXUUHQF\ZDVÀUVWPLQHGLQE\1D- Bitfury Group is one of the biggest kamoto, which is believed to be a pseudonym for one Bitcoin mining-companies, which runs RUVHYHUDOSHRSOHWKHVDPH\HDUWKHÀUVWRSHQVRXUFH two such facilities in Georgia, one in Bitcoin client was released. Gori and another in Tbilisi, where thou- By 2011, other cryptocurrencies were being created sands of servers are working. and traded. Giorgi Efremidze from the Bitfury In the same year, Bitcoin began to be accepted as Group told Investor.ge that his company payment by some organizations, including WikiLeaks. is focused only on Bitcoin mining and Over the next two years, Bitcoins gained in worth they do not treat Bitcoin Cash as Bit- and popularity. By 2013, some governments were coin’s competitor. already declaring them illegal. The same year, the “Two days after the split, the price of 86EHFDPHWKHÀUVWJRYHUQPHQWWRDQQRXQFHLWKDG Bitcoin Cash was already up to 400 dol- seized Bitcoin. lars. It even cost 700 dollars within the In 2014, a casino in Las Vegas announced it would ¿UVWKRXUV+RZHYHUWKHHTXLOLEULXP accept Bitcoin, Wikipedia cited USA Today as reporting. point was found quickly and the price of The digital currency continued to gain acceptance Bitcoin Cash is ten times less than the around the world in 2015 when Barclays announced it price of Bitcoin. ZRXOGEHWKHÀUVW8.KLJKVWUHHWEDQNWRDFFHSW%LWFRLQ Bitcoin Cash is an independent Wikipedia said that, as of August 2015, it was estimated that 160,000 merchants accepted Bitcoin payments. FU\SWRFXUUHQF\OLNHWKHRWKHUFU\S- tographic currencies on the market today; By 2017, Japan passed a law accepting Bitcoin as the basic alignment on price is still in a legal payment method. relation to Bitcoin as it is the world’s largest cryptocurrency with the highest

OCTOBER-NOVEMBER/2017 Investor.ge | 17 MARIAM SIKHARULIDZE AND DUSTIN (27%) of respondents reported that they Dynamism GILBREATH have done nothing, have never thought about it, or don’t know what they are do- he pension system in Georgia ing or plan to do to support themselves among the is facing challenges. According in old age. Tto the World Bank, in a country One should note that a show card with a declining working-age popula- was used for this question. Up to three Young with tion, a retirement system in which the answer options were accepted per inter- state is solely responsible for providing view. Answer options “Saved or plan to Retirement SHQVLRQV²DVLQ*HRUJLD²LVLQDGYLV- save money in the bank” and “Rely or DEOH

18 | Investor.ge OCTOBER-NOVEMBER/2017 frequently than in rural areas. This might indicate a lack of earning opportunities for the elderly in rural areas and high- lights the socioeconomic gap between different settlements. The diversity of retirement plans among younger respondents is driven in large part by those in Tbilisi: a full two thirds of 18- to 35-year-olds in Tbilisi report that they plan to rely on sources of income in retirement besides their state pensions or their children. Young people in Tbilisi are also more likely to report that they will work when older. In contrast to only 21% of young Tbilisians, 51% of young people in rural areas have never thought about their retirement, have done nothing to prepare for it, or don’t know what they will do to support themselves in their old age. There is clearly a diversity of retirement planning in Georgia, and particularly in different age groups. The government should encourage this diversity, particularly among young people, as it has the potential to reduce dependence on state pensions and place less pressure on the state in the long term. Awareness- raising campaigns about such options are also important for supporting citizens in making informed decisions, and could be integrated into the campaigns already planned before the launch of the new pension system.

Mariam Sikharulidze was the Public Relations Manager at CRRC-Georgia until September 2017, and is currently a graduate student at University College London. Dustin Gilbreath is a Policy Analyst at CRRC-Georgia. The data presented in this article is available at CRRC’s Online Data Analysis (ODA) tool: http://caucasus- barometer.org/en/.

OCTOBER-NOVEMBER/2017 Investor.ge | 19 A Tbilisi Exodus or Alarming Urban Sprawl?

INVESTOR.GE LOOKS AT THE GROWING IMPRESSION THAT GROWING REAL ESTATE PRICES, TRAFFIC CONGESTION AND AIR QUALITY ARE PUSHING PEOPLE TO LOOK FOR HOMES OUTSIDE OF TBILISI. STORY BY INGE SNIP AND PHOTO BY GEORGE SURGULADZE

20 | Investor.ge OCTOBER-NOVEMBER/2017 OCTOBER-NOVEMBER/2017 Investor.ge | 21 rebuilding over the past few years. The house my husband and I bought a year and a half ago in Mukhatsk’aro is one of them. Dacha towns are a legacy of the Russian Empire and the Soviet Union. It started with the Tsars giving small plots of land for summer residences to the elite, and the tradition continued during 6RYLHWWLPHV²ZLWKDFDGHPLFVDUWLVWV and prominent bureaucrats given their own summerhouses. They are easy to spot. As a rule, during the Soviet Union, their plots of land could not be more than 600 square meters and their living areas no more than 60 square meters. However, attics were not considered living space, so the houses are often slightly out of propor- tion, with large mansard roofs being built on top of them.

NEW DEMAND $QGZKLOHGXULQJWKHGDUNV in Georgia the dachas were left to fend n a radius of 20 kilometers around for themselves due to harsh economic Georgia’s capital city Tbilisi are conditions, lately Tbilisi’s population is Iseveral small towns that are mostly rediscovering the charm of living outside deserted in winter. Kojori and Tskhneti WKHFLW\LQQDWXUH²EXWQRWRQO\GXULQJ in the south, Mukhatsk’aro and Tsodoreti the summer. in the west, and Saguramo and Buriani Over coffee, I recently asked some in the north are just a few of the many of my colleagues at a large international “dacha” towns. donor organization if they knew people Only a few years ago, the majority who had decided to either revamp their of the houses in these settlements, with summerhouses or bought a summerhouse the exception of those in Tskhneti, were to live in year round. Without hesitation, completely run down: windows gone, they all jumped in to tell me their stories roofs caved in, brick walls falling apart. of renovating their summerhouses and An occasional cow would roam through plans to move there to live the whole WKHVWUHHWVJRLQJXSLQHOHYDWLRQWR¿QG year. fresher grass, and birds would chirp “The congestion, the pollution, vividly while nesting in the rooftops of because of those problems, the people the houses. who can afford it spread out to greener

22 | Investor.ge OCTOBER-NOVEMBER/2017 QRLVHSROOXWLRQXQDYRLGDEOHWUDI¿FMDPV that Tskneti is a dacha and you have to have workers,” my mother-in-law tells and decreasing green areas in the city, my have a summer home, but you have to me. “You have to be there 24/7 so they husband and I decided as well that we have an apartment here[in Tbilisi]. So, do it how you want it.” And friends who wanted to give our then nine-month-old we really have to change the mentality had their house renovated a few months son a garden to play in. But to be fair, the of Georgians,” Tsotsade said. ago tell me how one day they came to ULVLQJGROODU²DQGRXUVLPXOWDQHRXVO\ On our little street, constant construc- FKHFNXSRQWKHSURJUHVVRQO\WR¿QG ULVLQJUHQW²ZHUHDOVRDPDMRUIDFWRULQ tion work is underway to prepare dachas their walls green instead of white: “They our decision. for all-year-round habitation. Our neigh- told me it was a nicer color.” bor Zura, a 40-something entrepreneur, AND WE ARE NOT ALONE. VD\VKH¶VFXUUHQWO\¿JXULQJRXWKRZWR EARLY SIGNS OF URBAN SPRAWL? Mariam Asatiani, RE/MAX Tbilisi install central heating in his dacha. Two The trend of people moving from ur- Capital Broker/Owner, told Investor.ge other houses across from our place were ban areas to nearby rural settlements is a that moving out of the city is becoming deserted when we bought ours, and have development that worries urban planners more popular, especially as people seek QRZEHHQFRQYHUWHGLQWRIXOOÀHGJHG and environmentalists. cleaner air and more green space. houses with anything you could wish for. The phenomenon, often referred to as “We clearly see an increase in de- In the small corner shop at the en- urban sprawl, usually involves moving to mand from people moving from rural WUDQFHRI0XNKDWVN¶DUR/LD²WKHODG\ FDUGHSHQGHQWFRPPXQLWLHV²HQYLURQ- areas looking for apartments in Tbilisi’s ZKRUXQVLW²WHOOVPHKRZKHUEXVLQHVVLV mentally unfriendly and only affordable center. But, simultaneously, we see a ÀRXULVKLQJ$VDVLGHMRE²EHVLGHVEHLQJ for those with at least upper-middle-class huge demand from people who have named by me as the informal mayor of LQFRPHV²VHJUHJDWLRQDQGFDQUHVXOWLQ apartments in the city center seeking to RXUSOXVSHUVRQWRZQ²VKHRSHU- empty city districts. move outside of the city, a 25-minute ates as a real estate agent. Through her “The city center starts to die when drive away, to be in a cleaner environ- we found our place as well. And prices people escape to places outside the city. ment,” she said. have gone up. Open spaces and green spaces outside the “Of course, I should mention this is a “A few years ago, houses here would city are eaten up. More money is spent on more premium segment. Unfortunately, go for $50k, but now it will be hard to infrastructure, and you have much more the infrastructure in these places is not ¿QGVRPHWKLQJOLNHWKDW´VKHH[SODLQV WUDI¿FEHFDXVHDOOWKHVHSHRSOHQHHGWR VXLWDEOH\HWEXW,DPFRQ¿GHQWWKDWZLWK WRPH:HERXJKWRXU¿[HUXSSHUIRU commute by car back into the city center this increase in demand, developers and $30,000, but recently friends of ours for work,” Zhvania explains. others will start investing in upgraded in- were unable to find anything below With the Vake-Saburtalo district frastructure as well,” Asatiani explained. $70,000. discussing incorporating Mukhatsk’aro 9DVLNR7VRWDG]HRQHRIWKH¿UVWGH- and Tsodoreti, now part of the larger velopers of modern housing outside of FIXER-UPPERS Mtskheta district, I am part of the urban the city, agreed that suburban living is %XWHYHQLI\RX¿QGDSODFHIRUWKH sprawl problem. We even bought a car the future for Tbilisi. right price for you, all these houses need VSHFL¿FDOO\WRJHWWRWRZQPRUHHDVLO\DV He added, however, that shifting from to be renovated. They were never meant there is only one marshrtuka driving up apartments to private homes is a “change to be lived in all year round, so they are and down three times a day. And that’s in mentality” that takes time. ODFNLQJVXI¿FLHQWLQVXODWLRQKHDWLQJV\V- not very environmentally friendly, even Currently most homeowners at his tems, and, often, even water resources. though, as freelancers, we do not have to development, SunCity, are families who After workers ruined our new roof commute on a daily basis. have moved out of the city center for the last year, and our tile worker was drunk But with a growing Tbilisi, high-rises fresh air and cleaner environment. on the job, forcing us to re-tile large parts popping up like mushrooms, and stuffy “The minute you have a house out- of the house, we decided to do every- low-on-oxygen air, the decision to sell side of Tbilisi, and you have land and thing ourselves. And horror stories from one’s place in Tbilisi for a larger, greener, your kids are running in the yard, it is SHRSOHDURXQGXVFRQ¿UPVXFKSUREOHPV and cleaner place up in the mountains almost impossible to go back to living are widespread. near the city is, unfortunately perhaps, in an apartment. But it is a stereotype “You can’t leave the house if you QRWDGLI¿FXOWRQHWRPDNH

OCTOBER-NOVEMBER/2017 Investor.ge | 23 FROM THE EXPERTS: Are Tbilisians leaving the city?

TRAFFIC. AIR POLLUTION. INVESTOR.GE SPOKE PARKING. WITH THREE EXPERTS Every day, especially around rush IN THE GEORGIAN hour, there seems to be a hundred new REAL ESTATE MARKET, reasons not to live in the city. But are people really moving out? MANAGING There are also new apartment buildings DIRECTOR and developments popping up all over OF COLLIERS Tbilisi, so where do Tbilisians want to live? INTERNATIONAL The answer, according to real estate GEORGIA IRAKLI specialists, depends on whom you ask. KILAURIDZE, IRAKLI While demand is growing for private BURDILADZE, CEO homes – including homes in the villages and communities surrounding Tbilisi OF M² REAL ESTATE – there is still a healthy demand for AND NINA KIPIANI, apartments, especially in popular Vake THE PARTNER AND and Saburtalo. “During the last decade, demand HEAD OF COUNTRY for private houses notably increased. AT CUSHMAN Besides the sub-districts of the city, such & WAKEFIELD DV'LJKRPL9LOODJH'LJKRPL'LGL GEORGIA, ABOUT Dighomi, etc. The process of development has moved into settlements in the WHETHER TBILISI’S surroundings of Tbilisi – Tabakhmela, CITY DWELLERS ARE Shindisi, Tsavkisi, Okrokana, and the MOVING OUT TO THE QHLJKERUKRRGVVXUURXQGLQJ/LVL/DNH and Tbilisi Sea,” noted Irakli Kilauridze, ‘BURBS AND HOW THE Mmanaging Director of Colliers Interna- PARKING PROBLEM tional Georgia. IS AFFECTING +HDGGHGWKDWDVRI-XO\ DEVELOPMENTS. private houses have been sold this year, which is 23 percent higher than the same time last year. “The main drivers of increased demand are clients’ desires for an ecologi-

24 | Investor.ge OCTOBER-NOVEMBER/2017 cally clean and peaceful environment, gated communities, the sales of land developers are selling parking lot spaces protected area, greenery, etc. The most plots in the popular residential areas have with apartments. In central districts, such popular townhouse type projects are been on an increasing trend, led by the as Vake and Mtasminda, the selling price /LVL9HUDQGD7VDYNLVL9DOOH\6XQ&LW\ sales in Dighomi.” of parking lot spaces ranges from $7,000 Irakli Burdiladze, CEO to $10,000. On average, in the suburban of m² Real Estate, told SDUWVRIWKHFLW\WKLV¿JXUHYDULHVEHWZHHQ As of July 2017, 901 private houses Investor.ge that growing $3,000 to $6,000. have been sold this year, which is incomes are one of the Kipiani noted that while there are drivers in the new demand some developments offering allocated 23 percent higher than the same for private homes. parking spaces, there is not enough time last year. “It’s natural to expect HYLGHQFHWRMXGJHLIWKDWLVLQÀXHQFLQJ that economic growth and buyers. She added that developments in increase in disposable in- Vake tend to sell up to two parking spots American Village, Delta Tabakhmela, come will stimulate demand for single per apartment. and more,” Kilauridze said. family houses in suburban areas as lots “Notwithstanding the high demand “Generally, the average price of a of families prefer to live away from busy [for parking spaces in the city], especial- townhouse project is much higher than city centers,” Burdiladze said in an email ly in central districts, developers tended IRUÀDWV+RZHYHUGXHWRWKHSUHYLRXVO\ interview. to save on parking construction, which mentioned criteria, a certain segment of “This is the trend we observe in more has resulted in a [parking] shortage and society prefers private houses.” developed economies. It’s a matter of overcrowded yards and pedestrian lanes. Nina Kipiani, Head of Country at affordability. In our country a single With the new regulations put in action, &XVKPDQ :DNH¿HOG*HRUJLDQRWHG family house is still a luxurious product developers are obliged to allocate a park- the Millennial generation has been more that few can afford thus demand is lim- ing lot per 130 square meters of living interested in leaving the city. ited. It should be noted, however, that space, which should by all means act as a “As Millennials start families, they this demand for houses has grown in the solution to these problems,” Kipiani said. tend to head for the suburbs. Crushing past year, which is in direct correlation m² Real Estate noted that demand the old local tradition of up to ‘three gen- with economic growth and increase in differs depending on people’s income: erations living in the same central Vake family income.” while those with more disposable income apartment,’ the newer generation runs “demand at least two parking places per counter to the previous quintessential CARS, CARS EVERYWHERE AND apartment,” people in the market for less city-dwellers, hence the average house- NO PLACE TO PARK expensive real estate would rather spend hold size of 4.2 in 2006 has decreased to The parking problem in Tbilisi re- money “on purchasing extra square me- 3.6 in 2016,” she said. quires no introduction. But “A number of developers have taken how is it impacting how advantage of such trends and offered developers build – and how During the last decade, demand for gated community housing in the suburbs people buy – apartments? private houses notably increased. LQFOXGLQJWKH/LVL/DNH%DJHEL.DNOHEL Kilauridze said that the Krtsanisi, etc. Demand here has therefore parking issue has started been supply led and considering the pric- to impact not just the residential market ters of living space rather than spending ing of these developments being rather but other sectors of the real estate market money on parking lots”, Burdiladze said. high, cost-savings could not have been as well. “When designing our projects we the driver for the buyers. As an example, “Since 2012, according to our obser- DOZD\VVWXG\SRWHQWLDOWUDI¿FDQGSDUNLQJ /LVL/DNHKDVVHHQDVSXUWRIVDOHVVWDUW- vation, approximately 80 percent of new demand and take this into consideration ing in 2012 and increasing by an average developments include underground park- LQSUHSDULQJWKH¿QDOPDVWHUSODQ´%XU- of 5 percent annually. In addition to the ing in the project. However, only a few diladze noted.

OCTOBER-NOVEMBER/2017 Investor.ge | 25 ALPINE GOLD: Swiss Cheese Made in the Georgian Mountains

A GEORGIAN-SWISS PARTNERSHIP IS REVIVING A LOST TRADITION OF ALPINE CHEESE MANUFACTURING IN THE GEORGIAN MOUNTAINS.

TEXT AND PHOTOS BY TATJANA production site high in the mountains ing wine every day. But you only make MONTIK of Metekhi, in the western Georgian wine once a year. It’s as if here every day village of Chorchani near Adigeni. you have a harvest, and every day you he history of Swiss cheese in Giorgi, a young driver who works in the make wine,” he said. Georgia dates back to over 100 enterprise, took us to the alpine mead- Macharashvili showed me a beauti- Tyears, when immigrants made ows at an elevation of 2240 meters in a ful two-story wooden chalet where the cheese in Tsalka, a town south of Tbilisi. 6RYLHWMHHSEXLOWLQ7KHURDGZDV cheesemakers live during the summer Their creamy cheese became well known GLI¿FXOWZLWKKXJHERXOGHUVVFDWWHUHG season from mid-June to early Sep- both within the Russian Empire and unexpectedly along the route. “This car tember. They built it last summer with abroad, winning honors at international is so good that it doesn’t need any road the help of a Swiss carpenter. A mobile exhibitions. at all,” Giorgi told us proudly. From the cheese-making station is an integral part More recently, two Swiss entre- top of the mountain we could see another of the business and, as with the Swiss preneurs, Frances Belser and Daniel gorge where the famous Abastumani Ob- tradition, the alpine cheese is produced Wuethrich, have spent the past two years servatory lies hidden in the forests below. exclusively with milk from cows that reviving the tradition together with their Macharashvili, Belser and Wuethrich graze in alpine meadows. Georgian partner, Zurab Macharashvili. founded the company Alpuri Oqro, or Macharashvili’s family is from Chor- “Alpine Gold,” two years ago. Macha- chani, so he has access to the meadows CHEESE AS ART rashvili, an artist, said the business is a in this area. According to Georgian law, I visited the Swiss couple’s cheese form of art. “Cheese making is like mak- alpine lands can only be used by local

26 | Investor.ge OCTOBER-NOVEMBER/2017 YLOODJHUV²DQGRQO\IRUDJULFXOWXUDOSXU- manidze and Salome Gigashvili. Both time management. “In cheese making, poses. “A relative who doesn’t live here young women have Bachelor’s degrees you must be very precise and punctual, anymore allows us to use this land. We in food processing from the Georgian keeping to the schedule, otherwise you have transformed an old storage house Agricultural University in Tbilisi and won’t get a good-quality product,” Gi- into a cheese cellar and brought up our all remain in the village for the summer gashvili said. mobile cheese station. At the end of the season. “Another essential factor for good- season, we load our cheese station on a Every day they receive milk from the quality cheese is how we take care of truck and bring it back to Tbilisi, where farmers and pour it into a huge copper it during the ripening process,” said we have a second cheese cellar,” he kettle for pasteurization. Then they clean Minder. “In France, for example, this is explained. WKHIDUPHUV¶PLONFDQVDQG¿OWHUVZLWK a profession in itself.” She took me to the In Georgia, farmers usually own the pure spring water from the mountain. cheese cellar located near the entrance cows that produce milk for cheese, but “Hygiene is very important for us,” says of the cheese station, and explained Alpine Gold does not own cattle. Instead, Minder, “and we work with solar energy that the room temperature must be kept it buys milk from local farmers who meet to run the air-conditioning for the cheese between 12 and 16 degrees centigrade certain quality standards. “We show them cellar and to heat water. We use a special ZLWKDKXPLGLW\OHYHODERYHSHUFHQW KRZWRFOHDQWKHFRZV¶XGGHUVDQG¿OWHU lactose tester to check our milk regularly ³1RÀXFWXDWLRQVDUHDOORZHG´VKHVDLG the milk properly. We also provide our for fat and protein content. We also test For Swiss cheese production, 10 li- suppliers with specialized milk cans,” the water to be sure that it contains no ters of milk are needed to produce each Macharashvili explained. bacteria, or we have to boil it before use.” NLORJUDPRI¿QLVKHGSURGXFW&RPSDUHG to this, Georgian cheese only needs 6 A LITTLE SWISS VILLAGE IN SWISS STANDARDS OLWHUVRIPLONWRSURGXFHHDFK¿QLVKHG GEORGIA On the wall, documents are posted kilogram of cheese. Depending on the Rosemarie Minder has come from WKDWWKHFKHHVHPDNHUV¿OOLQGDLO\QRW- season, Swiss cheese makers take in Switzerland for two seasons to help with ing the times of cleaning and kinds of between 270 to 400 liters of milk daily, production. She learned cheesemaking antiseptic measures. and thus can produce up to ten “wheels” in Switzerland and worked for eight Some of the farmers who supply milk RIFKHHVHSHUGD\HDFKZHLJKLQJ¿YHWR seasons in her home country as a chee- spoke to us as they delivered their morn- six kilograms. Another difference is the semaker. She said she feels at home in ing milk. Nana and Zaza Kvidjinadze long ripening period for Swiss cheese, the mountains of Georgia, as it resembles care for their 30 cows and participate in ZKLFKFDQODVWXSWR¿YHPRQWKVEHIRUH the Swiss mountain village where she the project. “After Alpine Gold produc- consumption. It is very labor intensive, grew up. tion came to our village, work was easier, ZKLFKRIFRXUVHLQÀXHQFHVWKHSULFHRI At 7 a.m. the next morning, I fol- as we can sell them all our milk. Of the end product. low Minder to watch the entire process course, we need to meet their standards. Both assistants of Alpine Gold of cheese making. The extraordinary )RUH[DPSOHZHKDYHWRVNLSWKH¿UVW admit they are “addicted to cheese.” sunrise gave us the impression that this few squirts of milk from the udder as it Narimanidze said that in the future KLJKPRXQWDLQYLOODJHZDVÀRDWLQJDERYH contains more bacteria; also, we use a she would probably establish her own the clouds, which lay much lower down special material to clean the udders. Then cheese-production facility: “I gained a the mountain in the early morning. A ZHKDYHWR¿OWHUWKHIUHVKPLONSURSHUO\´ lot of knowledge here and learned to bit later, the mist from higher peaks de- the farmer said. “But on the other hand, at EHGHWDLORULHQWHGDQGWLPHHI¿FLHQW, scended to cover the village. The air was the end of the season we can get a bonus also learned that I can express my own crisp and fresh, and the unique smell of of additional 10 tetri per liter if we have opinion and my bosses listen. Here, I feel PHDGRZÀRZHUVLPEXHGHYHU\EUHDWK worked according to all the guidelines.” like part of a team, not just an employee, “I love these early morning hours An hour later, I accompanied Minder and I can help solve problems. This is here,” Minder said, “and for me the cow and Gigashvili through the cheese-mak- YHU\LPSRUWDQWEHFDXVHZKHQ¿YHSHRSOH bells are very special morning music.” ing process. They showed the fermenta- think together, it’s powerful!” Every day she works with one of her tion process and explained the necessary In the evening, we sipped amber- two Georgian assistants, Nanuka Nari- temperatures and the importance of colored Rkatsiteli wine while tasting

OCTOBER-NOVEMBER/2017 Investor.ge | 27 establish the Alpine Gold business using their own capital of 100,000 lari. They have continued to invest, building up the infrastructure and production process at the mountain farm, and in two years they have managed to double their cheese production from 1,000 kilograms last year to 2,000 kilograms this year. Belser described the mid- and longer- term plans for the company. “We plan to continue working in Chorchani village, as it is close to the sea and has a good annual rainfall and optimal climate for mountain cheese production. This is why we plan to stay and intensify our work with local people. We are thinking of ways to offer pos- sibilities to young people and encourage them to come back to their lands to work with us. We pay the best milk prices in the re- JLRQ XSWR*(/SHUOLWHU DQGSURYLGH our suppliers with modern working tools from Switzerland. In the medium-term we want to improve the local infrastructure and to young Muchli cheese that Minder sliced the country. Our people have forgotten make up to 4,000 kilograms of cheese for us. “Muchli needs only six weeks to how to live in stability. Most think only per year. In the long term, we plan to ripen,” she said. “Each wheel is around about today and maybe tomorrow, but build an agricultural cooperative with 1 kilogram and has a nice moist, reddish not more. This is why they cannot work local farmers, a project that corresponds crust. When we cut it, we can feel it is using a business plan. In our business, we to the development plans of the Georgian still soft and creamy. We say this cheese need to plan at least three years ahead, JRYHUQPHQW2XUJRDOLVWREXLOGD¿[HG has a creamy consistency. It also has but if we consider our suppliers, none cheese and milk station and to have de- some holes, but this is ok, as it has not of them know for sure what tomorrow cent water reservoirs.” been pressed under a cheese stone and will bring, and cannot even guarantee “Of course, there are always risks in its taste is mild. Mutchli goes well with they will work with us next year. So you this kind of business,” she continued, bread and wine. In Switzerland, we eat it QHHGVWDELOLW\¿UVWRIDOODQGRIFRXUVH ³EXWZHKDYHH[SHULHQFH6LQFH with boiled potatoes and yogurt or curd time and patience, as well as good re- we’ve launched new products in the sauce. It’s also good as a dessert cheese.” lationships with people, including your Swiss market successfully, and to suc- partners and suppliers,” he said. FHHGLQDIRUHLJQFRXQWU\\RX¿UVWQHHG RECIPE FOR SUCCESS Back in Tbilisi, I met Frances Belser to succeed at home. Besides this, you In Chorchani, I learned that to pro- in her cheese cellar in Okrokhana to learn need to realize that sometimes it means duce a good-quality Swiss cheese you more about Alpine Gold. She told me taking two steps forward and one step need to work hard. “What else do you that before she and her husband decided back. You must be present at the pro- need for a successful agricultural busi- to invest in Georgia, they studied the duction site yourself and not delegate ness in Georgia?,” I asked Macharash- market thoroughly for a few years. Two everything to someone else. All this will vili. “First of all, we need stability in years ago, they decided to take a risk and ensure success.”

28 | Investor.ge OCTOBER-NOVEMBER/2017

Baadur Jobava, a Georgian grandmaster and three-time Georgian champion Georgia’s Chess—A New Generation GEORGIAN CHESS LIKA JORJOLIANI Baadur Jobava, a Georgian grand- PLAYERS—PARTICULARLY master and three-time Georgian cham- WOMEN—HAVE LONG n September, top male chess play- pion, was bested by reigning U.S. Chess ENJOYED TREMENDOUS HUVIURPDURXQGWKHZRUOGÀRFNHG Champion Wesley So in the fourth round. SUCCESS IN THE GAME Ito Georgia to compete in the World DESPITE LIMITED BUDGETS Chess Federation (FIDE) World Cup. LEGACY OF WINNERS AND TRAINING FACILITIES. The event was a major coup for Geor- The loss stung for Georgian coaches BUT THE COACH OF JLD²LWFRPSHWHGDJDLQVW6RXWK$IULFDWR and fans. THE NATIONAL TEAM host both the September World Cup and -REDYDZKRLVUDQNHGWKLQWKH WARNS MORE SUPPORT the 2018 Chess Olympiad, which will be world according to FIDE, defeated IS NECESSARY TO held in Batumi. the world’s top chess player, Magnus But for chess advocates at home, CONTINUE THE COUNTRY’S Carlsen, in 2010. He won a gold medal the FIDE World Cup was also a stark TRADITION OF STRONG in the 2016 Chess Olympiad as well, reminder of how Georgian chess has making him one of the latest in a long GRANDMASTERS. struggled to maintain its tradition of tradition of world-class Georgian chess strong players and generations of grand- players. masters. His peers, especially on the Georgian Three out of the four Georgian play- National Women’s Chess Team, have HUVFRPSHWLQJOHIWLQWKH¿UVWURXQG been winning international accolades

30 | Investor.ge OCTOBER-NOVEMBER/2017 World champion Magnus Carlsen for years. Women’s World Champion, Hou Yifan, The pioneer, Nona Gaprindashvili, “Georgia is well-known for its fa- and also the number one Georgian ZDVWKH¿UVWZRPDQWREHFRPHDFKHVV mous chess-player women. We should women’s player and current European JUDQGPDVWHU²WKHKLJKHVWKRQRULQFKHVV name famous Georgian veterans, such Individual Women’s Chess Champion, awarded by the World Chess Federation. as Nona Gaprindashvili, Nana Aleksan- Nana Dzagnidze. She ruled the game for a generation, dria, Maia Gaprindashvili and others. Maia Chiburdanidze. world,” noted a coach for the Georgian Dzagnidze fared worse, losing to Between the two of them, they were the Men’s National Chess Team, Zurab JUDQGPDVWHU$QLVK*LULLQWKH¿UVWURXQG Women’s World Chess Champions for Sturua. The September match aside, Dzag- 20-odd years. He added that the women’s team, QLG]H²ZKRLVDOVRDFKHVVJUDQGPDV- which includes players Salome Melia, WHU²KDVWULXPSKHGDWLQWHUQDWLRQDOWRXU- NURTURING THE NEXT 1LQR%DWVLDVKYLOL1DQD']DJQLG]H/HOD naments since she was a teenager. This GENERATION Javahishvili and Bela Khotenashvili, year, she won the Women’s European But chess advocates warn that Geor- won the Women’s World Team Chess Individual Chess Championship, one gia’s legacy could be at risk if young Championship two years ago, beating of three Georgian women chess players people are not encouraged to learn and teams with more resources and support. to land in the top 20 at the tournament. play. The September competition in Tbili- Dzagnidze and her teammates are “Any kind of sport has a star gen- si, which was for men, included two part of a long tradition of Georgian eration; now Georgia has many young women, both invited to participate: the women chess masters that dates back people who are interested in chess. But, world women’s number one and former generations. in my opinion, they can’t reach the nec-

OCTOBER-NOVEMBER/2017 Investor.ge | 31 Levon Aronian, Armenian chess grandmaster who won the 2017 FIDE World Cup essary level because interest in chess is in Tbilisi. “We have very strong chess players, gradually falling among young people, “I played when I was young; I par- which is why this type of sport [in Geor- perhaps due to other interests,” Sturua ticipated in other tournaments. I played gia] has been able to preserve its position told Investor.ge. in the Tbilisi championship, and was a [in the world], which I cannot say about “We should support this kind of candidate for master,” he told Investor.ge. soccer,” he added. sport,” he added. The tournament organizer and Presi- GEORGIAN WOMEN, CHESS MASTERS dent of the Georgian Chess Federation, Georgia has produced a number of female chess grandmasters, start- Zurab Azmaiparashvili, told Investor.ge LQJZLWKWKHÀUVWWZRZRPHQWRHYHUKROGWKHWLWOH1RQD*DSULQGDVKYLOL that he has managed to attract $20 million WR DQG0DLD&KLEXUGDQLG]H for chess, which has allowed Georgia to &KLEXUGDQLG]HZKRZRQKHUÀUVWLQWHUQDWLRQDOFKDPSLRQVKLSDWWKH offer major awards and prizes for male age of 13, became the 14th highest rated female player of all time when and female competitions. she achieved her FIDE Elo rating of 2502 in 2011. In addition, the government is trying Two other Georgian women, Ketevan Arakhamia-Grant and Bela to encourage young people to learn and Khotenashvili, are also chess grandmasters. love the game: chess has been introduced as a subject in elementary schools around Today the country also boasts of a strong female team. In 2015 the team became the world chess champions after defeating the Chinese the country. women’s chess team – the women’s eighth win in a row that year. Chess has also received support from athletes from other sports: Georgian soc- 7KH*HRUJLDQZRPHQ·VFKHVVWHDPZRQWKH&KHVV2O\PSLDGVLQ DQG7KH2O\PSLDGVDUHDELHQQLDOLQWHUQDWLRQDOFKHVV cer legend Manuchar Machaidze came tournament. to watch Jobava during the World Cup

32 | Investor.ge OCTOBER-NOVEMBER/2017 rchery, ice skating, skiing, according to a report on Georgia’s A PLACE ON VKRRWLQJWUDPSROLQHWHQQLV² Rustavi-2 TV channel. Athere are few sports in which THE TEAM: A Georgian female athletes have not made OVERCOMING STEREOTYPES their mark in international competition. Team member Salome Dimopulo NEW PUSH FOR But at home, women’s sporting teams told Investor.ge that it was easier to play KDYHVWUXJJOHGWR¿QGWKHVDPHOHYHORI when she was living in Greece, where support that the men’s teams enjoy, both girls’ soccer is more developed and more EQUALITY IN LQWHUPVRI¿QDQFLQJDQGLQWHUPVZLWK accepted. how they are accepted by society. Other girls on the team also spoke SPORTS For example, Eka Kartsivadze, the about resistance, either from parents or WHDPPDQDJHUIRUWKH7ELOLVL¶VXQGHU other people in their lives, to the idea GEORGIAN FEMALE ATHLETES HAVE BROUGHT GLORY TO girls’ soccer team, has been frustrated WKH\FRXOGSOD\VRFFHU²DQGSOD\LW THEIR COUNTRY FOR DECADES by the lack of money for necessities, professionally. AT THE OLYMPICS AND OTHER including footwear and medical support. “The problem is that sports are not INTERNATIONAL COMPETITIONS— Players on the team have also faced very popular and there are some preju- FIRST COMPETING UNDER problems the boys do not experience: dices. Unfortunately, parents and school- THE SOVIET FLAG AND NOW they often have to put up with relatives teachers do not support girls in sports. UNDER THE GEORGIAN FLAG. BUT AT HOME, GIRL ATHLETES, who don’t understand why they want Girls are less welcome in sports because ESPECIALLY IN COMPETITIVE to play a rough-and-tumble sport like they say ‘girls should better go to music TEAM SPORTS, HAVE STRUGGLED UXJE\RUVRFFHU²RUUXOHVWKDWVWLSXODWH or to drama class,’ or whatever. But con- TO FIND SUPPORT AND how long their hair should be (long, not FHUQLQJVSRUWV²OLNHIRRWEDOO>VRFFHU@ FINANCING. short) and the modesty of their uniforms, IRULQVWDQFH²>WKHJLUOVKHDU@µ\RXUIHHW

OCTOBER-NOVEMBER/2017 Investor.ge | 33 ent spheres . . . we just munities,” UN Women Georgia noted in decided to kick off a report about the campaign. this campaign using Asatiani told Investor.ge that while sports as the means women’s successes at sporting events are to showcase how suc- publicized, issues like this require special cessful women can be outreach to reach the intended audience. there . . . We thought it “It is a great success for me to see could be thematically Georgian women winning gold medals, close if we would ap- but I don’t know if and how girls actually proach the sportsmen see this. I am pretty sure they are miss- and the sportswomen ing all this information. It is may be well in different sports and publicized, but it needs a special angle, get out their messages VRPHWKLQJOLNHZHGLG²DFDPSDLJQIRU about why do they promoting girls,” Asatinai said. think that it is equal- “Girls should be involved more in ly important to have sports and parents should know more of women in sports,” WKHEHQH¿WVWKHLUJLUOVZLOOJHW,WLVFUX- Asatiani said. cial to make girls more motivated, more “Sports is more active, healthier, to be good team play- connected to mascu- ers, to be good leaders, to better achieve linity rather than a their goals. These are the qualities that healthy lifestyle and sportspeople have I think,” she added. will look ugly,’” UN Women Georgia rather than to the skills that you can get Communications Analyst Gvantsa Asa- from sports to be a good leader, to be a LOSING GIRLS tiani told Investor.ge. good team player, to concentrate, etc.,” The UN Women campaign worked Asatiani noted that the gender gap she said. closely with the Georgian Ministry of in how sports are viewed motivated UN The campaign has highlighted suc- Sports and Youth Affairs. Women Georgia to highlight the issue cessful women basketball players, fenc- “Partnering with UN Women and this as part of the global He for She project. ers, soccer players, rugby players, and campaign is a great opportunity for us to The He for She project is about pro- PRUH²LQFOXGLQJPDQ\VSRUWVZKHUH reach out to the broader community and moting men as defenders of women’s there is little public awareness that the provide information to every family that rights. But the meaning was hard to pass women’s teams exist, let alone that these it should be no surprise if a girl opts for on to a Georgian audience, she said, since athletes are winning internationally. any stereotyped ‘manly’ sport(s), for ex- “it wouldn’t come close to the heart of “Currently, girls and women have DPSOHZHLJKWOLIWLQJ´9DVLOL/LSDUWHOLDQL the Georgian population. They wouldn’t equal rights to participate in all kinds of the head of the Research and Analysis understand what it means.” sports in Georgia. In some sports, such Division at the Ministry, was quoted as Instead, UN Women in Georgia opted as chess, fencing and archery, Georgian saying in a report about the campaign. to use the particularities of the Georgian women are very successful in the global “We need to change the mindset that language, in this case the fact that it is a arena, but only 10 percent of girls and certain sports are intended only for girls gender-neutral language with no gender- women in Georgia are involved in sport. or for boys. Girls’ involvement in sport is VSHFL¿FSURQRXQVWRVHQGWKHPHVVDJH One of the reasons is related to the wide- their decision entirely, and it should not that there is no place for gender prejudice spread stereotypes that divide sports be subject to public judgment,” he added. in any aspect of Georgian culture. along masculine and feminine lines. Girls become less involved in sports The result was the campaign “Geor- Whether selecting, pursuing or even as they age, according to a 2015 survey gian language has no gender prejudice, succeeding in a particular sport, girls conducted by the Georgian Children get it out of your head!” are continually burdened with barriers and Youth National Sport Federation in “We are promoting women in differ- and prejudices in their families and com- collaboration with the Ministry of Sport

34 | Investor.ge OCTOBER-NOVEMBER/2017 and Youth Affairs. The recommendations echo some of of girls’ involvement in sports and, in $ 81(6&2ILQDQFHG VXUYH\² the steps that were taken in the U.S. after documents provided by the Ministry, it “Gender Equality in Sport and Physical Title IX, the landmark law outlawing was clear that increasing girls’ access to $FWLYLW\´²WDUJHWHGVFKRROJLUOVDJHG gender discrimination in any educational VSRUWV²DQGSULRULWL]LQJ\RXWKDWKOHWLFV DQGSDUHQWVSK\VLFDO activity that receives federal funding, LQJHQHUDO²LVRQWKHDJHQGD education teachers, sport instructors, and according to Aaron Heifetz, Press Of- What is less clear is how long it will representatives of municipal services ¿FHUIRU86:RPHQ¶V1DWLRQDO6RFFHU take the changes to have an impact. around the country. Teams. For Kartsivadze, the team manager The survey found that the number of Heifetz told Investor.ge that the real IRUWKH7ELOLVL¶V7ELOLVLXQGHUJLUOV¶ girls around the country who regularly impact of Title IX, which was passed in soccer team, the wait is frustrating. participate in a sports class of some type VWDUWHGWRDIIHFWZRPHQ¶VVSRUWVLQ While there are signs of encourage- drops by 30 percent by the time girls WKHVZKHQFROOHJHVVWDUWHGORRNLQJ ment, like hosting big international reach age 16. for girls to play on their teams. ZRPHQ¶VVRFFHUHYHQWVDWKRPH²WKH Girls in the older age group said they The demand for female athletes un- UEFA Women’s Euro 2020 for the under- drop sports for several reasons, including derscored the importance of “resources, VZLOOEHLQ*HRUJLD²WKHUHLVDIHHOLQJ “sports lessons are only for boys” and youth programs, coaches and the oppor- the girls’ efforts are underappreciated “there are no dressing rooms for girls,” tunities to play” for girls, he said. at home. according to the report. The path women soccer players ,WLVKDUGWR¿QGFRDFKHVZKRDUH It also found that 70 percent of girls follow in the U.S. and other coun- ZLOOLQJ²DQGDEOH²WRZRUNZLWKJLUOV do not participate in sports because they WULHV²HVSHFLDOO\VRFFHUSRZHUKRXVHVLQ LWLVGLI¿FXOWWR¿QDQFHDZD\WULSVDQG lack the proper facilities. (XURSH²FDQEHDJRRGOHVVRQRQKRZ it is even a challenge at times to make 7KHVXUYH\LQFOXGHGZLGHUDQJLQJ to move forward, but that is not enough, sure that training facilities are suitable, recommendations for the Ministry to Heifetz noted. especially compared to the resources improve equality in sports for girls, such “Girls can be motivated by men allocated for the boys, Kartsivadze said. as making the issue of gender balance players, can be motivated by women For instance, the winning team of the clearer in the state sports development players from other countries, but what Georgian women’s soccer championship policy; promoting the importance of will really motivate Georgian girls is received just 4560 lari (approximately sports for girls; improving sports infra- to see Georgian women playing on the IRUDWHDPRISOD\HUV²D structure in rural communities; creating national team,” he said. small amount for the level of effort they school-based sports competitions; and /LSDUWHOLDQLWROG,QYHVWRUJHWKDWWKH put in the game, she noted in an e-mail increasing the number of female coaches. Ministry has been studying the issue to Investor.ge.

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OCTOBER-NOVEMBER/2017OOCTTOBEBEBERR-NR-RN-NNOVEOOVVVEMMBMBEBBER/2017 Investor.geInvests orr.gge | 353 Tbilisi Neighborhoods: Vake

INVESTOR.GE HAS TEAMED UP WITH ANALYST AND HISTORIAN EMIL AVDALIANI TO EXPLORE THE HISTORY OF TBILISI’S GREAT NEIGHBORHOODS. IN THIS ISSUE WE WILL BE EXPLORING THE VAKE DISTRICT.

36 | Investor.ge OCTOBER-NOVEMBER/2017 IIHFWLYHO\DYLOODJHXQWLO in the hills overlooking Vake), which was A GREEN DISTRICT Vake (which means “plain” in later upgraded to Tskneti Street. The road The tree-lined streets, chic cafes, and EGeorgian) has transitioned from ran from approximately the Philharmonia architecture that Kurdiani envisioned backwater to the most prestigious neigh- concert hall on Melikishvili Street to attracting the communist elite have borhood in Georgia. modern-day Tskneti. The street existed remained popular with Tbilisians and Prior to World War II, Tbilisi State as far back as 1867, according to his- foreigners alike. University was Vake’s only claim to torical sources and documents, and was A main draw has traditionally been fame. UHQDPHG8QLYHUVLW\6WUHHWLQWKHV the district’s parks, oases of green at the Following the war, however, devel- ,QLWEHFDPHNQRZQDV1LFKRODV center of the city. opment in the district took off thanks to Marr Street and, after reverting back the The largest park in the neighborhood, a general plan that envisioned the ame- University street name for a brief period, 9DNH3DUNRSHQHGLQWKHDXWXPQRI nities aimed at attracting the communist it became known as Ilia Chavchavadze and was named Victory Park in honor of elite: new, graceful streets, schools and $YHQXHLQ WKHYLFWRU\WKDWHQGHG:RUOG:DU plenty of parks. Architect Archil Kurd- That year, the city filled Varazi II. The park, which was initially more iani is credited with the projects that Gorge, which separated the Vake and than 200 hectares (558 acres in size) UHGH¿QHG9DNHGXULQJWKDWSHULRG Vera districts, closing the natural bound- is located about 2 km from the Tbilisi ary that separated the two neighbor- State University. There is no clear date CREATING CHAVCHAVADZE KRRGV3DUWVRI9HUDZHUH¿OOHGLQDQG for when “Victory Park” became “Vake AVENUE a new street, Varazi Street, was created. Park” for the city: historians believe it Initially the main street in Vake was Today the street is famous as the cobble- was a gradual change that took place as known as Tskneti Road (currently Tskne- stone road leading from Heroes’ Square Tbilisians sought to distance themselves ti is the name of a Tbilisi suburb located to Chavchavadze Avenue. from the city’s Soviet heritage.

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Kyiv: +38 (044) 490 76 00 Tbilisi: +99 (532) 250 00 20 / 11 D. Arakishvili Street, Vake Lviv: +38 (032) 253 70 00 Batumi: +99 (555) 548 41 46 / 114 Gorgiladze Street Odessa: +38 (048) 701 40 00 www.amcenters.com and walkers all year round. The city’s ethnographic museum is also accessible by cable car. The outdoor museum includes examples of traditional houses from every region of Georgia, plus great walking trails. Vake is also home to Mziuri Park, the labor of love created by Georgian author Nodar Dumbadze, who envisioned it as a paradise for children. The park fell into GLVUHSDLULQWKHVEXWKDVVLQFHEHHQ repaired and, according to some plans for the city, will eventually be expanded to join the city zoo in neighboring Sa- burtalo.

VAKE – A HOTSPOT IN CONSERVATION DEBATE Today Vake remains a much-loved work in progress. Its ever-changing ar- ray of shops and cafes, and of course its parks, are so popular that the demand for housing in the neighborhood is driving a major building boom – and pushing the neighborhood into the spotlight of a public debate on what should be conserved and what can be changed in the city. Over the past 200 years, Vake has seen buildings go up and come down. It has experienced the near magical impact of development, the power of a plan and some investment to turn a village into the cultural heart of the city. But it has also borne witness to the power of construction to erase history: Vake Park was built on the site where the newly created Soviet government executed 15 high-level Georgian military officers Vake is also home to other major who fought against the new empire. And parks and recreation areas in the city, a few blocks away, near the building that which add to its reputation as the dis- currently houses the Turkish Embassy, trict where Tbilisians go to shop, eat once stood a religious seminary built in and relax. the early 20th century when the Tsarist A cable car connects Vake Park with JRYHUQPHQWWULHGWRUHGXFHWKHLQÀXHQFH .XV7ED 7XUWOH/DNH DSRSXODUVSRWLQ of seminarians (like the young Joseph the summer for swimming and sunbath- Stalin) by relocating them far from the ing – and a major attraction for runners city center. NEWS

CONTENT

50 AmCham Social

40 AMCHAM MEMBERS MEET TBILISI 43 PROFILE: PMC RESEARCH MAYORAL CANDIDATES 44 PROFILE: REGUS 41 USTR REPRESENTATIVE, NEW US EMBASSY DEPUTY CHIEF OF 45 NEW MEMBERS MISSION, DISCUSS BILATERAL TIES 46 MEMBERSHIP DIRECTORY 41 RAFTING ON THE ARAGVI RIVER 50 SOCIAL PAGE 42 PROFILE: MURPHY GROUP IN GEORGIA

OCTOBER-NOVEMBER/2017 Investor.ge | 39 NEWS

AMCHAM MEMBERS MEET TBILISI MAYORAL CANDIDATES AmCham Georgia has organized a series of public meetings where member companies can meet candidates for the Tbilisi mayoral election, which is sched- uled for October 21.

AmCham members met with independent Tbilisi mayoral candidate Alek- sandre “Aleko” Elisashvili on September 11 at Holiday Inn. Mr. Elisashvili gave a presentation about his campaign, his views and future initiatives as a mayoral candidate.

On September 21, at Rooms Hotel Tbilisi, AmCham Georgia hosted a presentation followed by a cocktail reception with European Georgia-Movement IRU/LEHUW\¶VPD\RUDOFDQGLGDWH(OHQH Khoshtaria. Ms. Khoshtaria presented about her future plans and initiatives as a mayoral candidate.

United National Movement Tbilisi mayoral candidate Zaal Udumashvili met with AmCham members at Rooms Hotel Tbilisi on September 28. He discussed his political platform for the city, as well as his vision for social programs and the development of the capital.

Following all three presentations, the candidates engaged in a lively Q&A with members and a cocktail reception.

Other candidates will have the opportunity to present their initiatives for the city at future events.

40 | Investor.ge AUGUST-SEPTEMBER/2017 NEWS USTR REPRESENTATIVE, NEW U.S. EMBASSY DEPUTY CHIEF OF MISSION, DISCUSS BILATERAL TIES

Ed Gresser, the United States Trade Representative, presented on U.S. Trade Policy and Opportunities for Georgia, and Elizabeth Rood, the new Deputy Chief of Mission at the U.S. Embassy, met AmCham members at the business roundtable on September 14 at Holiday Inn Tbilisi. Mr. Gresser and Ms. Rood discussed U.S.-Georgia relations and the wider region. The presentation was followed by a dynamic Q&A session between AmCham members and the guests.

RAFTING ON THE ARAGVI RIVER AmCham took a group of members and friends rafting on the Aragvi River on August 12. The group enjoyed their rafting adventure, with only a few people falling in, followed by lunch and relaxation by the river. A great day was had by all.

OCTOBER-NOVEMBER/2017 Investor.ge | 41 NEWS

challenge of developing an infrastructure Poti, Sarpi, Lanchkhuti, Kutaisi, Vale, Sa- to meet the demands of dynamically dakhlo, Tsiteli Khidi, Lagodekhi, Natakhari, evolving transport systems, which will re- 7ELOLVL $LUSRUW 7ELOLVL *H] DQGWKHVWDWH quire the implementation of infrastructure of-the-art Murphy Batumi City project. to provide a secure, fast, reasonably priced, comfortable and environmentally BATUMI CITY sound transit between Europe and Asia. Batumi is a successful resort. However, Murphy, having been successfully it will not be able to achieve the best serving the oil and gas industry worldwide possible results and compete against over the last 43 years as well as successfully well-established Black Sea and Mediter- handling large-scale projects, construct- ranean Sea resorts if there continue to ing and managing customs-logistics com- be industrial, trade and transportation plexes, is currently focused on investment clusters within the city and in the vicinity opportunities in creating infrastructure to of its seaside resorts. Moreover, the existing support the road transportation sector, %DWXPL&XVWRPVRIÀFHGRHVQRWSURYLGH establishing new and improved transit a full range of customs operations: trucks routes between Asia and Europe and thus that require full customs checks are being VLJQLÀFDQWO\ LQFUHDVLQJ *HRUJLD·V WUDQVLW diverted from their original route to Poti, potential. and must travel through resorts and tour- We understand that in an increasingly ist centers along the seaside where the competitive environment, Georgia’s abil- necessary facilities for full-scale customs ity to keep its status as an attractive transit checks are located. Murphy hub will depend on a thorough reform of The best way forward is the con- its existing transit infrastructure and service. struction of a separate business (trading DQG LQGXVWULDO FLW\ ³ %DWXPL &LW\³DW D Group in CONTEMPORARY SOLUTIONS comfortable distance from Batumi, which Georgia urgently needs to build will allocate space for trade, industry, modern logistics centers at its borders, transportation, shopping, food and ac- Georgia: comprised of large convenient parking FRPPRGDWLRQHQWHUWDLQPHQWDQGRIÀFH spaces, cafes, restaurants, hotels, specially FOXVWHUVRQDWHUULWRU\RIKHFWDUHVLQWKH designated cargo-handling areas, and YLFLQLW\RIDIXOO\HTXLSSHGFXVWRPVRIÀFH Providing customs bonded and temporary stor- that can provide the full range of customs age warehouses to accommodate the operations. needs of both commercial and private The customs-logistics complex itself International transport users. It also needs to provide a ZLOODOORZWKHPDQDJHPHQWRIWUDIÀFÁRZ full range of customs operations in order and the distribution of goods on the spot. WRSUHYHQWWKHGLYHUVLRQRIWUDIÀFIURPLWV Batumi City will have a significant Solutions to initial planned route. impact on the region’s social activity, Murphy Kazbegi LLC, a member of the providing training and creating thousands Murphy Georgia Group of companies, is of new jobs. Georgia’s a specially designated company that is It will put an end to the further dete- currently working on completing phase 1 rioration of Batumi’s beautiful landscape of a multimillion-dollar 7-hectare customs- by separating the peaceful seaside Logistics logistics complex in the region between landscape from dynamic, contemporary, Phansheti and Stepantsminda. This project industrial-style architecture and design. ZLOO KHOS UHJXODWH WKH WUDIÀF ÁRZ RQ WKH A separate agricultural cluster will be Challenges dual carriageway leading to the border built in the Batumi City project, adjacent to crossing of Upper Lars. The project is de- the customs-logistics complex, to provide signed to ensure a full range of customs contemporary facilities for mandarin, sat- operations, including laboratory control sumsa, orange, kiwi, lemon and other citrus and warehousing services. The construc- produce handling and further distribution tion of contemporary cafes, restaurants, a to the world market. hotel and spacious parking spaces for all In realizing the Murphy Batumi City modes of road transport is also a part of project, along with the Murphy Kazbegi Georgia has historically always been the plans for phases 1 and 2 of the project. SURMHFW ZH ÀUPO\ EHOLHYH WKDW ERWK $G- one of the most attractive transit routes To date, Murphy Kazbegi LLC has invested jaria and Murphy will not only make an connecting Asia to Europe. While it has nearly $10 million into the project. enormous contribution to the region’s retained its importance as a convenient We plan to implement eleven more economy, but will also significantly in- transit territory, it will inevitably face the projects at Georgia’s border crossings: crease Georgia’s transit potential.

42 | Investor.ge AUGUST-SEPTEMBER/2017 NEWS PMC Research Hosts Georgian-German Startup Forum the Ministry of Economy and Sustainable Development of Georgia, international organizations and institutions attended the forum. During the second day of the forum, German experts held B2B meetings with the selected eleven local startuppers, at Tech Park Georgia. Companies repre- VHQWHG D UDQJH RI YDULRXV VWDUWXS ÀHOGV such as: marketing, management, consulting, a language learning website, a travel guide application, smart rings, hi-tech acoustic systems and loudspeakers, etc. The idea behind B2B meetings was to providea platform for both local and German startuppers to better represent their initiatives and discuss cooperation opportunities. Both parties found conversations interesting and informative. German On September 4-5, Tbilisi hosted the Guja Narimanashvili,a local startupper experts were impressed to learn about 1st Georgian-German Startup Forum, from Travel Guide. startup scene in Georgia, while Georgian which was organized by PMC Research in The second part of the forum was entrepreneurs appreciated mentoring op- partnership with Georgia’s Innovation and dedicated to presenting Georgia’s envi- portunities with their German colleagues. 7HFKQRORJ\$JHQF\ *,7$ ZLWKWKHVXS- ronment for startuppers. Giorgi Laliashvili, “I met many new people and had very port of the German Embassy to Georgia GITA’s Chief Strategic Development Spe- interesting conversations,” said Wolfgang and ProCredit Bank. cialist dedicated his speech to “Innova- Bernecker, adding that he is planning to The forum was held as part of the tion Support Mechanisms in Georgia” visit Georgia again and it would be very Germany-Georgia Friendship Year and and spoke about the Agency’s tools and nice to invite a Georgian startup delega- aimed to share experience between Ger- programs for supporting innovation in tion to Berlin to better introduce them to man and Georgian startuppers. Georgia. Otar Antia, Head of the Entrepre- the local environment. About seventy local startuppers were neurship Support Department at Enterprise “After receiving positive feedback on gathered on September 4 and had a Georgia, presented private sector support WKHLPSDFWRIWKHÀUVW*HRUJLDQ*HUPDQ chance to get acquainted with the expe- programs of the Agency. Startup Forum from all parties involved, rience of successful German startuppers. Local startuppers, David Khosroshvili we are looking forward to continue further Michael Hübl, cofounder at Flinc, gave a of “WiFisher” and Mark van Embden of development of the experience-sharing presentation titled as “The Startup Roller- “Traktor,” also had a chance to share their platforms and plan activities to support coaster – a Talk about Failure.” Hübl told success stories with the audience. the development of startups in Georgia,” his story, with the emphasize on failures, Along with the startuppers, representa- explained Mikheil Skhiereli, Project Man- showing to local startuppers that the be- tives of the German Embassy in Georgia, ager at PMC Research. ginning is not easy. Wolfgang Bernecker, Founder and Managing Partner at Pandata, spoke about “Building a Bootstrapped Big Data Company”, and Stephan Dabels, Founder at AmbiGate delivered a presentation on “Rapid Production and the Fearlessness of Pivoting.” “The forum is really very interesting for us, as it’s an opportunity for networking and a platform to meet experienced German startuppers, who share their opinions regarding our business,” said NEWS

Regus, an international working-space provider, en- tered the Tbilisi market in June 2017. Regus: New Office The company serves 2.3 million customers, across over 100 countries and 3,000 business centers globally. Since 5HJXVODXQFKHGLWVÀUVWFHQWUHLQ7ELOLVLLQWHUQDWLRQDODQG Solutions for ORFDOFRPSDQLHVKDYHEHHQXVLQJLWVÁH[LEOHRIÀFHVROX- WLRQV²VHUYLFHGRIÀFHVYLUWXDORIÀFHVPHHWLQJURRPVDQG co-working spaces. Georgia’s Growing “We see Tbilisi as a prominent market for flexible ZRUNVSDFHVROXWLRQV7KHUHLVJURZLQJGHPDQGIRUÁH[LEOH workspaces, and it is a global trend. We believe that there Economy ZLOOEHPRUHDQGPRUHFRPSDQLHVLQ7ELOLVLVHHLQJÁH[LEOH RIÀFHVDVWKHEHVWFKRLFHIRUWKHPµ5XVND&KDNYHWDG]H INVESTOR. told Investor.ge. GE SPOKE Regus enables its customers to acquire, grow or main- WITH RUSKA WDLQ ZRUNSODFH ÁH[LELOLW\ E\ KHOSLQJ WKHP PLQLPL]H WKHLU CHAKVETADZE, second largest cost of doing business -- the expenses as- THE AREA VRFLDWHGZLWKOHDVLQJHTXLSSLQJDQGVWDIÀQJWKHLURIÀFH MANAGER AT space. REGUS, ABOUT With the costs linked to workspace representing be- ENTERING THE tween 5 and 10% of a company’s turnover, corporations GEORGIAN RIDOOVL]HVDUHLQFUHDVLQJO\ORRNLQJDWRIÀFHVSDFHQHHGV MARKET AND as a strategic component of their business plan. THE NEEDS OF In fact, a recent survey by the company found that 81 THE MODERN percent of companies intend to cut or freeze their property/ OFFICE premises costs this year. WORKER. “It is really exciting for us to expand our network to Georgia and especially to the bustling city of Tbilisi, where PRUHDQGPRUHEXVLQHVVHVZLOOEHDEOHWRJUDVSWKHEHQHÀWV DQGRSSRUWXQLWLHVRIIHUHGE\ÁH[LEOHZRUNLQJ$OOVL]HVRI EXVLQHVVDUHFODPRXULQJIRUJUHDWHUÁH[LELOLW\DJLOLW\DQG choice of location. We are delighted to bring to these businesses and work- HUVLQ7ELOLVLWKHRSSRUWXQLW\WRH[SHULHQFHZRUNSODFHÁH[LELO- ity and to work from where they want,” Chakvetadze said. Regus also enables companies to rapidly seize new market opportunities, SURYLGLQJLPPHGLDWHDQGÁH[LEOHRIÀFH infrastructures already in place, which is particularly important for businesses VHWWLQJXSRIÀFHVLQHPHUJLQJPDUNHWV “Georgia’s economy is growing rapidly and the business environment is changing to accommodate an increasing appetite for new ventures and expansion both internally and from external investors. Regus plays a key role in facilitating businesses’ growth by offer- LQJDJLOLW\DQGÁH[LELOLW\LQZRUNVSDFHVµ she said. Along with co-working as shared RIÀFHV 5HJXV RIIHUV D ZLGH UDQJH RI solutions for businesses of any size: pri- YDWH RIÀFHV YLUWXDO RIÀFHV PRELOH RI- ÀFH VROXWLRQV VXFK DV LWV ´%XVLQHVVZRUOG programme,” which helps people stay productive on the move. For more information, please contact Regus at www.regus.com.ge

44 | Investor.ge AUGUST-SEPTEMBER/2017 NEWS NEW MEMBERS

Dorche Prefabrik Iapi Ve Isbank Georgia JSC Maqro Construction Inshaat Sanai Tijaret JSC Corp B Corp B (Branch) In 2012, the Bank was registered by Being one of the major international Corp B WKH1DWLRQDO%DQNRI*HRUJLD 1%* DQG investors in Georgia, Maqro Construction Dorche Prefabricated Building & Con- began its operations as a branch of a is continuing to leave a mark on Georgia struction Industry Trade INC., founded in IRUHLJQ HQWLW\ QDPHO\ 7UNL\H úü %DQNDV× through various investments it has made LVD7XUNLVK*HQHUDO&RQWUDFWRUZLWK $û %DWXPL %UDQFK ,Q $XJXVW -6& in the short time since it was founded in vast worldwide experience, and which Isbank Georgia -- a fully owned subsidiary 2013. Maqro Construction develops its provides Engineering, Procurement and RI7UNL\Húü%DQNDV×$ûZDVHVWDEOLVKHG technical expertise based on honesty and Construction services for projects requiring and took over the operations of its parent high quality, which are the main features high-quality services in extreme environ- company in Georgia, serving commercial of its business ethics, together with the right ments. Dorche stands out with its ability to as well as individual clients with a wide strategy of its dedicated management quickly mobilize & operate in the harshest variety of banking products and services. team that monitors the market closely. conditions in several countries at the same The Bank is operating with one branch in By these means, it provides its costum- time. Dorche owns one of the largest pre- Tbilisi, and one branch and one service ers comfortable services, products and fabricated steel structure manufacturing center in Batumi. brand-new contemporary living areas with facilities in the world. The manufacturing isbank.ge unique and affordable terms. In addition, facility located is in Ankara - Turkey. it is a close follower of this new lifestyle dorce.com.tr that it creates. maqro.ge

ADVERTISEMENT AmCham Company Members as of October 2017

PATRON MEMBERS British American Tobacco Dentons Georgia LLC GMT Group 71 Vazha Pshavela Ave. 10 Melikishvili St. 4 Freedom Square Tel: 2157500/01/02; Fax: 2157503 Tel: 2509300; Fax: 2509301 Tel: 2988988; Fax: 2988910 www.bat.com www.dentons.com www.gmt.ge BP Exploration Georgia 24, S. Tsintsadze St. Tel: 2593400 Gosselin Mobility Georgia www.bpgeorgia.ge Diplomat Georgia Budget Rent a Car - Otokoc 3 M/D, Didi Digomi 65, Kakheti Highway Georgia LLC Tel: 2596601/02/03; Fax: 2596600 Tel: 2984950 37 Rustaveli St. www.gosselinmobility.eu www.diplomat.ge KPMG Georgia LLC Tel: 2234112 www.budget.com.ge 3rd Floor, Besiki Business Center, 4 Besiki St., 0108 Grant Thornton LLC Tel: 2935713; Fax: 2982276 EY Georgia 61 D. Aghmashenebeli Ave. www.kpmg.ge 44 Kote Abkhazi St. Tel: 2604406 Caucasus University Tel: 2439375; Fax: 2439376 www.grantthornton.ge .RVWDYD6W%OGWKÀ www.ge.ey.com Tel: 2377777; Fax: 2313226 PwC Georgia www.cu.edu.ge 12 M. Aleksidze St., 0160 Greco Group King David Business Center 1 Nutsubidze St. F H Bertling Georgia Ltd. Tel: 2508050; Fax: 2508060 Tel: 2393138; Fax: 2311107 Room 3, 4th Floor, www.pwc.com www.greco.ge Chemonics International 154 Agmashenebeli Ave. 5, 2nd Blind Alley, Chavchavadze St. Tel: 2252287 Tel: 2234311; Fax: 2234309 www.bertling.com www.chemonics.com GT Group UGT 48 B. Cholokashvili St. D&KDYFKDYDG]H$YHWKÀRRU Tel: 2740740 Tel: 2220211; Fax: 2220206 www.gtgroup.ge www.ugt.ge FINCA Bank Georgia 9D]KD3VKDYHOD$YHUGÀ CleanTech Ltd. Tel: 2244949 5 Avlip Zurabashvili St., 0144 ZZZ¿QFDJH GULF Georgia Tel: 2922202 by Sun Petrolium Georgia LLC www.cleantech.ge Pixel Business Center, CORPORATE A MEMBERS 34 Chavchavadze Ave. Food TV Geo LLC Tel/Fax: 2496444 45b. M. Kostava St. www.gulf.ge AECOM Georgia LLC Colliers International Tel: 2931570 34, Chavchavadze Ave. Georgia LLC www.foodtvgeo.com Tel: 555603200 37/39 Kostava St., Hilton Batumi www.aecom.com Grato Business Center 7th Floor 13 Takaishvili St., Batumi Tel: 2224477 Tel: 292092 www.colliers.com Frontera Resources Georgia www.hilton.com Alliance LLC 12 Paliashvili St. 135 King Parnavaz St., Batumi Tel: 2252412 Tel: 591555757 www.fronteraresources.com www.alliancegroup.ge Iberia Refreshments, JSC Conformity Assessment Tetri Khevi Hesi District, Orkhevi International (CAI) LLC Tel: 2241091; Fax: 2241090 8 Politkovskaya St., 1086 Gazelle Finance Georgia LLC www.pepsi.ge Alliance Group Holding, JSC Tel: 595690008 2I¿FH1LNR1LNRODG]H6W 47/57 M. Kostava St., 0179 www.ca.international Tel: 2424181; Fax: 2998112 Tel: 2904304 ZZZJD]HOOH¿QDQFHFRP www.agh.ge IMSS Ltd. 10a Bakhtrioni St. Tel: 2920928 &XVKPDQ :DNH¿HOG*HRUJLD American Medical Centers, www.imss.ge WKÀRRU%ORFN General Electric Georgia 71 Vaja-Pshavela Ave. 5th Floor, Pixel Bulding, 11 D. Arakishvili St., Tbilisi Tel: 2474849 34 Chavchavadze Ave. Tel: 2500020 ZZZFXVKPDQZDNH¿HOGJH Tel: 2259516 / 2259505 Kartlos Group 114, Gorgiladze St., Batumi www.ge.com 20 Ushangi Chkheidze St., 0102 Tel: (+995 32) 250 00 77 Tel: 599540893 www.amcenters.com www.kartlosgroup.com Dechert Georgia LLC Georgian American Alloys, Inc. Avon Cosmetics Georgia LLC WKÀRRU3L[HOEXLOGLQJ 200 S Biscayne Blvd Suite 5500, 34 Chavchavadze avenue Kavkaz Cement JSC 117 Tsereteli Ave. Miami FL 33131 USA Tel: 2334719 29 Andronikashvili St., 0189 Tel: 2226805; Fax: 2226806 Tel: (1)3053757560 www.dechert.com Tel: 2619090 www.avon.com www.gaalloys.com www.kavkazcement.ge

Betsy’s Hotel / Prosperos Books 32/34 Makashvili St. / Deloitte Georgian American University Maersk Georgia LLC 34 Rustaveli Ave. 36a, L. Asatiani St., 0105 8 Aleksidze St. 6 Khetagurov St. Tel: 2987624, Fax: 2923592 Tel: 2244566; Fax: 2244569 Tel: 2206520; Fax: 2206519 Tel: 2200800; Fax: 2200815 www.betsyshotel.com www.deloitte.ge www.gau.ge www.maerskline.com

46 | Investor.ge AUGUST-SEPTEMBER/2017 Marriott Hotels, Resorts & Suites Risk Management and Insurance Air Astana Airlines JSC BLB (Business Legal Bureau) 13 Rustaveli Ave. &RPSDQ\³*OREDO%HQH¿WV 5th Floor, Pixel Business Center, 1 Shevchenko St, Apt.1 Tel: 2779200; Fax: 2779210 Georgia” 34 Chavchavadze Ave. Tel: 2995797 www.marriott.com 7 Polikarpe Kakabadze St. Tel: 2514999 www.blb.ge Tel: 2500001 www.airastana.com ZZZEHQH¿WVJH

Meridian Express %/&/DZ2I¿FH 15-17 Ketevan Tsamebuli Ave.0103 SEAF Management LLC Aliance Georgia Ltd 4 Gudiashvili Sq. Tel: 2745188 7, Niko Nikoladze St. II Floor. 33 Samurzakano St. Tel: 2922491; Fax: 2934526 www.ups.com Tel: 2998115; Fax: 2923533 Tel: 2243773 www.blc.ge www.seaf.ge www.groupaliance.com

Microsoft Georgia LLC Sheraton Metechi Palace Hotel BMC Gorgia 34 Chavchavadze Ave. Aversi Pharma 140 Tsereteli Ave. Tel: 2970123 20 Telavi St. 148/2 Aghmashenebeli Ave. Tel: 2772020; Fax: 2772120 Tel: 2960960 www.microsoft.com Tel: 2987860 www.gorgia.ge www.sheraton.com/tbilisi www.aversi.ge

M & M - Militzer & Munch SICPA Security Solutions Georgien, FedEx GSP Georgia Baker Tilly Georgia Ltd. CaspiGroup Ltd. 39 Ketevan Tsamebuli Ave. 79 Chargali St., 0178 Meidan Palace, 44 Kote Abkhazi St. 29 Bochorma St. Tel: 2748240, 2748941 Tel: 2434580 Tel: 2505353; Fax: 2505353 Tel: 2550818 www.fedex.com/ge www.sicpa.com www.bakertillyinternational.com www.caspigroup.com

Spotcoin LLC 2I¿FH7HFKQRORJLHV6WHHODVH 13 Shalva Radiani St., 0179 Bank of Georgia Caucasus Online LLC Dealership Tel: 599258539 3 Pushkin St. 71 Vazha-Pshavela Ave. 4 Freedom Sq., 0105 www.spotcoin.net Tel: 2444134; Fax: 2983269 Tel: 2000022 Tel: 2999980, 2688229 www.bog.com.ge www.co.ge ZZZRI¿FHWHFKQRORJLHVJH T&K Restaurants (McDonald’s Georgia) Basel LLC Channel Energy (Poti) Limited 1 Dzmebi Kakabadze St. Oracle 49 Krtsanisi St. Georgia LLC, By Petrocas Energy Tel: 2921246; Fax: 2251422 $\D]D÷D0HYNLL0H\GDQ6RN Tel: 2550110 Group www.mcdonalds.ge Spring Giz Plaza Kat:11 www.krtsanisi.com 52, David Agmashenebeli St., Poti Maslak, Istsnbul, Turkey Tel: (995493) 2-7-08-60 Tel: 577500151 www.petrocasenergy.com www.oracle.com TBC Group 7 Marjanishvili St. Basis Bank JSC Tel: 2272727; Fax: 2228503 1 Ketevan Tsamebuli Ave. www.tbc.com.ge Tel: 2922922; Fax: 2986548 Château Mukhrani, J.S.C. Orient Logic Ltd. www.basisbank.ge Sangebro St. 8 Beliashvili St. Tel: 2201878; Fax: 2201878; Tel: 2541818 TMC Global Professional www.mukhrani.com www.orient-logic.ge Services 6001 Indian School Road NE, Suite Batumi International Container 190, Albuquerque, NM 87110, USA Terminal 11, Baku Street, 6010, Batumi Tel: (1 505) 8723146 City & Co. PepsiCo Wimm-Bill-Dann Tel: 422 276452 www.tmcservices.com 4 Besiki St. Village Ponichala, Tbilisi 0165 www.bict.ge Tel: 2920921 Tel: 2475290 www.wbd.ru West Invest Ltd. 13a Lortkipanidze St. BDO LLC Tel: 2997275 Crowne Plaza Borjomi www.west-invest.ge 2 Tarkhnishvili Str. Philip Morris Vere Business Centre, 0179 Baratashvili Str. 9, 1200 Borjomi 1 Tabidze St. Tel: 2545845; Fax: 2399204 Tel: 995 367 220260 Tel: 2439001; Fax: 2439005 www.bdo.ge www.cpborjomi.com www.philipmorrisinternational.com Willis Towers Watson Ltd. 17 M. Lebanidze St. Tel: 2905509 www.willis.com BGI Advisory Services Georgia Crystal, MFO JSC ProCredit Bank 5XVWDYHOL$YH,,ÀRRU 72 Tamar Mepe St. Kutaisi, 4600 154 Agmashenebeli Ave. Tel: 2997292; Fax: 2996615 Tel: 431253343 Tel: 2202222; Fax: 2202222-2226 www.bgi.ge www.crystal.ge www.procreditbank.ge CORPORATE B MEMBERS

Biltmore Hotel Tbilisi Dio Ltd. Radisson BLU Iveria Hotel Adjara Group Hospitality 29 Rustaveli Ave. 12th Km David Agmashenebeli Alley 1 Rose Revolution Sq. 1, 26 May Sq., 0179 Tel: 2727272 N3, Parsadani St. Tel: 2402200; Fax: 2402201 Tel: 2300099 http://www.millenniumhotels.com/en/ Tel: 2361112 www.radissonblu.com www.adjaragroup.com tbilisi/the-biltmore-hotel-tbilisi/ www.dio.ge

OCTOBER-NOVEMBER/2017 Investor.ge | 47 AmCham Company Members as of October 2017

Domson’s Engineering Georgian Beer Company GTS Electronics Leavingstone 8a Sanapiro St. 3311 Saguramo, Mtskheta District 35 Moscow Avenue, 0137 12a Al. Kazbegi Ave. Tel: 2050303 Tel: 2437770 Tel: 2710800 Tel: 2105103 www.domsons.com www.geobeer.ge www.gts-el.com www.leavingstone.com

Legal Partners Associated LLC Dorche Branch Prepabrik Iapi Ve Gvinadze & Partners LLC 2I¿FH%HVLNL%XVLQHVV&HQWHU Inshaat Sanai Tijaret JSC Georgian Express 44 Kote Abkhazi St, 0105 4 Besiki St. 0108 026/13 Ilia Chavchavadze Ave. 105, Tsereteli Avenue, 0119 Tel: 2438970, Fax: 2438971 Tel: 2200203; Fax: 2250458 Tel: 593472419 Tel: 2696060 www.gvinadzeandpartners.ge www.lpa.ge www.dorce.com.tr www.dhl.com Liberty Bank JSC HeidelbergCement Georgia 74 Chavchavadze Ave. Duty Free Georgia 18 Lermontov St. Tel: 2555500; Fax: 2912269 UGÀRRU%HVLNL6W Georgian Hospitality Group Tel: 2474747 www.libertybank.ge Besiki Business Center 22 Peritsvaleba St., 0103 www.heidelbergcement.ge Tel: 2430150 Tel: 2987789 www.dfg.ge www.ghg.ge Luca Polare 54 Oniashvili St. Herbalife Nutrition Tel: 2990399 Bld. 4a Tamarashvili St., 0116 www.lucapolare.com Efes Brewery in Georgia - Tel: 2202929 Lomisi JSC Georgian Industrial Group LLC www.herbalife.com Village Natakhtari, Mtskhta Region GIG Plaza, 14 Gazapkhuli St., 0177 Maqro Construction Tel: 2357225 Tel: 2210187 22 Panjikidze St. Tel: 2000909 www.natakhtari.ge www.gig.ge Hualing International Special www.maqro.ge Economic Zone 25 Apt. 34/36 Kobuleti St. Enviroserve Caucasus Tel: 591005900 Maqro Food “Dinehall” [email protected] Georgian Integrated Systems www.hualing.cn 28 Rustaveli Ave. www.enviroserve.ae (GiS) Tel: 2001616 2I¿FH$EDVKLG]H6W www.dinehall.ge Tel: 2243724 Hydrolea LLC www.gis.ge Mercure Tbilisi Old Town EVEX Medical Corporation 11 A. Apakidze St. 9 Gorgasali St., Old Tbilisi, 0105 40 Vazha-Pshavela Ave. Tel: 790420015 Tel: 2006060 Tel: 2550505 www.hydrolea.com www.mercure.com www.evex.ge Georgian Resources Company 3-5 Kazbegi St. ICS Ltd. TNT Agent in Georgia Mgaloblishvili Kipiani Dzidziguri Tel: 2936676 25 Agmashenebeli Ave. (MKD) ExpoGeorgia JSC www.georgianresources.com Tel: 2910220 118 Tsereteli Ave., 0119 2I¿FH9D]KD3VKDYHOD$YH www.tnt.ge Tel: 2553880 Tel: 2341100 www.mkd.ge www.expogeorgia.ge

Geo Steel LLC ILF Beratende Ingenieure ZT Mina JSC 36 Davit Gareji St., Rustavi, 3700 GmbH Branch in Georgia 4 Besiki St. Gebrüder Weiss LLC Tel: 2243794 15 Tamar Mepe Ave. Airport Adjacent Territory, Tel: 2449981/82/83; Fax: 2449980 www.geosteel.com.ge Tel: 2199453 www.mina.com.ge Kakheti Hwy www.ilf.com Tel: 2710011 www.gw-world.com Mira Hotels Ltd. Brose Street Turn,Old Tbilisi Globalink Logistics LLC International Black Sea Tel: 2242244/55/88 60 Sh. Nutsubidze St., 0186 University www.riverside.ge Geocell Tel: 2000238, 2208147 David Agmashenebeli Alley 13 km, 3 Gotua St. www.globalinkllc.com 2, 0131 Tel: 2770100, ext. 7435; Tel: 2595005 Murphy Bridge Fax: 2770119 www.ibsu.edu.ge 8th Floor, Building 6, Saakadze Sq, www.geocell.ge 0160 Tel: 2007107 Gloria LLC www.murphyshipping.com 3 Gorgasali St., 0105 Isbank Georgia JSC GeoEngineering LLC Tel: 2000245 140/B Agmashenebeli Ave., 0102 15a Tamarashvili St. ZZZWLÀLVSDODFHJH Tel: 2310515 MyGPS Tel: 2311788; Fax: 2311787 www.isbank.com 6 Bokhua St., 0159 www.geoengineering.ge Tel: 2180180 www.mygps.ge GM Capital LLC JTI Caucasus Geomill LLC 2 Tarkhnishvili St., 0179 VII Floor, Pixel Business Center, National Center for Dispute 4, Chirnakhuli St. Tel: 2912626 34 Chavchavadze Ave. Resolution Tel: 2400000 www.gmcapital.ge Tel: 2604111 4/7 Rustaveli St., Rustavi www.geomill.ge www.jti.com Tel: 2193406 www.ncdr.ge

Georgian Airways GTR Ltd. Kordzahia, Jgenti Law Firm NCC Ltd. 12 Rustaveli Ave. 17 Shavteli St., 0105 10 Petriashvili St. 9, Erekle II turn Tel: 2999730; Fax: 2999660 Tel: 2439494 Tel: 2921878 Tel: 2725088 www.georgian-airways.com www.ambassadori.com www.kjlaw.ge www.ensisi.ge

48 | Investor.ge FEBRUARY-MARCH/2016 Nexia TA Rakeen Development LLC Tbilisi View CARE International in the 4th Floor, 19 David Gamrekeli St., Pixel Business Center, 4a, Freedom Sq. Caucasus 0160 34 Chavchavadze Ave. Tel: 2999980 37 Tsagareli St., 0162 Tel: 2242559 Tel: 2933393; Fax: 2933993 www.tbilisiview.ge Tel: 2291941 www.nexia.ge www.rakeen.ge www.care-caucasus.org.ge

Terabank JSC Regus, Georgian Branch, Tbilisi 3 Ketevan Tsamebuli Ave. (CiDA) Civil Development Noblet Media Business Centre Tel: 2507700 Agency 7, Khorava St. Level 4, 1 Tabidze St., 2 Leonidze www.terabank.ge 9/1 Pirosmani St., Rustavi, 3700 Tel:w 2396300 St.,0105 Tel: 341258822 www.nobletmedia.com Tel: 2900039 www.cida.ge www.regus.com Terrace Hotel & Restaurant 7 Polikarpe Kakabadze St. Europe Foundation Tel: 2999001 3 Kavsadze St. Nodia, Urumashvili & Parnters Rentals LLC www.theterracetbilisi.com Tel: 2253942; Fax 2252763 (ext. 112) 2I¿FH,9%ORFN 46 Rustaveli Ave.; 36 Griboedov St. www.epfound.org 71 Vazha-Pshavela Ave. Tel: 2454567 / 2996412 Tel: 2207407 www.rentals.ge www.nplaw.ge Theco Ltd. 16 Chikovani St. Free University of Tbilisi Tel: 592107515 140 David Agmashenebeli Alley Resolution Insurance Brokers, www.tbilisia.ru Tel: 2200901 Georgia LLC Nutrimax Ltd. www.freeuni.edu.ge 61, Gorgasali St. 68a Rustavi Highway, 0165 Tel: 2936305 Tel: 2305335 University of Georgia www.rib.ge www.nutrimax.ge 77a Kostava St. Georgia Red Cross Society Tel: 2552222 15 J. Kakhidze St. www.ug.edu.ge Tel: 2961092 Rixos Hotel Borjomi www.redcross.ge Overall Management Group 16 Meskheti St., Borjomi (OMG) Inc. Tel: 2292292 Veziri Ltd. 29 Marjanishvili St. http://borjomi.rixos.com 7 Luarsab Andronikashvili St., 0131 Georgian Wine Association Tel: 2436052; Fax: 2436052 Tel: 2251614 12 Mtatsminda St. www.veziri.net Tel: 2505457 Rooms Hotel 14 Merab Kostava St. Paine Stevens LLC Tel: 2020099, 2730099 Vinotel (“Aigvinissakhli”) LLC Good Governance Initiative 1 Ivane Javakhishvili Sqr. www.roomshotels.com 4 Elene Akhvlediani Ascent Pixel Center, 8th Floor, 34, Tel: 2903211, Fax: 2903291 Tel: 2555888 Chavchavadze Ave. www.painestevens.com www.vinotel.ge Tel: 2243111 www.ggi.ge RSM Georgia LLC 67, Aghmashenebeli Ave. Tel: 2558899 Wings and Freeman Capital LCC International University / PASHA Bank Georgia JSC www.rsm.ge Green Building, 6, Marjanishvili St. LCC Georgia 15, Shota Rustaveli Ave. Tel: 2940051; Fax: 2940053 Kretingos 36, Klaipeda, Lithuania Tel: 2265000 www.wfcapital.ge LT-92307 www.pashabank.ge Sakcable JSC Tel: 370 46 310460 Suite 414, 19 Gamrekeli St. www.lcc.lt Tel: 2221418 Wissol Georgia www.sakcable.ge 74b Chavchavadze Ave. Policy and Management Tel: 2915315; Fax: 2915615 QSI International School of Consulting Group (PMCG) www.wissol.ge Georgia $JKPDVKHQHEHOL$YHWKÀRRU Silknet Ltd. Village Zurgovani, Tbilisi Tel: 2921171 95 Tsinamdzgvrishvili St. Tel: 2537670; Fax: 2322607 www.pmcg.ge Tel: 2910345; NON-PROFIT ORGANIZATIONS www.qsi.org www.silknet.com

San Diego State University - Agricultural University of Primera Golf & Residence Georgia SRG Investments LLC Georgia 36, Khetagurovi St., 0102 5 Kostava St. 0108 D&KDYFKDYDG]H$YHUGÀRRU 140 David Aghmashenebeli Alley Tel: 2200036 Tel: 2311611 Tel: 2253581 Tel: 2594901 www.georgia.sdsu.edu www.silkroad.ge www.agruni.edu.ge

Publicis Ltd. Transparency International 17 V. Jorbenadze St. T3Concept Ltd. Alliance for Progressive Georgia Tel: 2745672; Fax: 2745671 13 Radiani St., 0179 Healthcare 61 Agmashenebeli Ave. 0102 www.publicis.ge Tel: 2434455 27/29 Chavchavadze Ave., 0179 Tel: 2932129 www.turner.com, www.t3concept.ge Tel: 2242413 www.transparency.ge

Qebuli Climate TBC Leasing JSC American Friends of Georgia Union of Busines Ladies 101, Tsereteli Ave. 8 Bulachauri St., 0161 77 Nutsubidze St. 8 D. Gamrekeli St., 0194 Tel: 2356201 Tel: 2272727 Tel: 2397174; Fax: 2388495 Tel: 2308661 www.qebuli.ge www.tbcleasing.ge www.afgeorgia.org www.ubl.ge

FEBRUARY-MARCH/2016 Investor.ge | 49 NEWS

COCKTAILS WITH AMCHAM-KYRGYZ REPUBLIC BUSINESS DELEGATION TO GEORGIA

AMCHAM GEORGIA HOSTED AN AMCHAM KYRGYZ REPUBLIC DELEGATION AT A COCKTAIL RECEPTION AT MERCURE HOTEL ROOFTOP RESTAURANT ON SEPTEMBER 6. AMCHAM GEORGIA PRESIDENT MICHAEL COWGILL GREETED THE GUESTS AND INTRODUCED AMCHAM KYRGYZ REPUBLIC REPRESENTATIVES. THE EVENT WAS AN OPPORTUNITY FOR AMCHAM GEORGIA TO TREAT ITS GUESTS TO THE SPECTACULAR VIEWS OF TBILISI’S OLD TOWN AND PROVIDE ITS MEMBERS WITH THE OPPORTUNITY TO MEET COLLEAGUES FROM GEORGIA AND THE KYRGYZ REPUBLIC.

50 | Investor.ge AUGUST-SEPTEMBER/2017 NEWS

OCTOBER-NOVEMBER/2017 Investor.ge | 51 NEWS

Board Of Directors 2017

R. MICHAEL COWGILL PRESIDENT

SARAH WILLIAMSON IRAKLI BAIDASHVILI ANDREW COXSHALL FIRST VICE-PRESIDENT VICE-PRESIDENT & TREASURER DIRECTOR

ESBEN EMBORG LASHA GOGIBERIDZE BADRI JAPARIDZE DIRECTOR DIRECTOR DIRECTOR

AmCham Executive Director Writers George Welton Emil Avdaliani, Nino Bakradze, Lika Jorjoliani, Tatjana Montik, Inge Snip

Copy Editor Photos Alexander Melin George Surguladze (pages 4, 10,20), Tatjana Montik (pages 28,30)

Marketing & Promotion Saba Gvetadze Special thanks to CRRC Georgia for their contribution to the magazine, Promotional Design AmCham Georgia’s staff, and all our contributors. This magazine would not be Levan Baratashvili possible without your help.

Magazine Design and Layout Giorgi Megrelishvili 52 | Investor.ge AUGUST-SEPTEMBER/2017 NEWS

STEVE JOHNSON OTAR KIPSHIDZE KETTI KVARTSKHAVA DIRECTOR DIRECTOR DIRECTOR

CHRIS SCHLUETER BETSY HASKELL, DIRECTOR FOUNDING ADVISOR

GEORGE WELTON DWIGHT NYSTROM EXEC. DIRECTOR EX-OFFICIO MEMBER

AmCham Georgia Patron Members:

© The American Chamber of Commerce in Georgia, 2017 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 ÁRRU7HO 7KHRSLQLRQVH[SUHVVHGLQWKLVPDJD]LQHGRQRWUHÁHFWWKHRSLQLRQ [email protected] of the American Chamber of Commerce in Georgia nor its Board HGLWRU#DPFKDPJHɕZZZDPFKDPJH Members or staff, unless otherwise stated. AmCham Georgia neither endorses, nor can be held liable for any eventuality www.investor.ge OCTOBER-NOVEMBER/2017 Investor.ge | 53