cracking the nut business Saving georgia’s A government plan to Threatened wheats boost mountain tourism
Investor.geA Magazine Of The American Chamber Of Commerce In Georgia ISSUE 51 j u n e -j ly 2016
AmCham Georgia in Washington june-july/2016 • Investor.ge | 3 Investor.ge content 6 Investment News
8 FIZs in Georgia: Industrial hotspots in Kutaisi, Poti and Tbilisi
10 Is Limited Liability Always “Limited”?
11 Georgian Macroeconomic Review and Growth Prospects
14 A Blooming Industry: Georgia Faces a Growing 8 Demand for Flowers
16 Cracking the Nut Business
18 Georgia’s Estonian Connection
20 Saving Georgia’s Threatened Ancient Wheats
24 Creating a New Niche
26 Building on Success: A Government Program to 14 Boost Hotels in Mountainous Areas
28 Georgia’s Potential to Become Hub of Medical Tourism
30 A Tourist in Time: How Can Georgians Turn Their Soviet Past and Love of Stalin into a Benefit?
32 Georgia: Creating a Premier Tourism Destination 16 33 High Expectations for the 2016 Tourism Season 34 Keeping Workers on the Job: The keys for bolstering job satisfaction at Georgian SMEs
36 Merab Abramishvili, An Artist and His Tigers
...... 41 26 NEWS
4 | Investor.ge • june-july/2016 june-july/2016 • Investor.ge | 5 PM Giorgi Kvirikashvili at Investor Roadshow in US Investment eorgian Prime Minister Giorgi Kvirikashvili recently participated in a multi-city investor roadshow in partnership with Citigroup News Gand J.P. Morgan. The roadshow was organized by the Georgian National Investment Agency. From hotels to startups, $1 Million Investment for Topishare Topishare, a startup social network based in Tbilisi, announced on May stock listings to 31 that it secured $1m dollar in its Series Round A. The company’s press Memorandums of release said the startup is now valued at $10m. understanding, $120m Twin-Tower hotel complex planned for Batumi the latest news Construction of a multi-million dollar complex in Batumi will begin on in investment in June 5 and be completed by 2017, the Agenda.ge website reported. The Georgia. Twin Tower complex, which will have 5,000 hotel rooms and apartments, will reportedly be the sixth largest in the world by number of rooms.
European Investment Bank loans €45 million to Georgia The European Investment Bank (EIB) is lending €22.5 million to finance small and medium-sized enterprises (SMEs) and companies engaged in trade and commerce in the country, Agenda.ge reported. This will be the first tranche of a €45 million loan to Georgia’s Bank Republic.
Georgia’s GDP Grew 4.3 Percent in April The estimated real Gross Domestic Product (GDP) growth rate of Georgia reached 4.3 percent year-on-year (y/y) in April, according to official statistics. Estimated real GDP average growth was 2.3 percent for Q1 2016 y/y and 2.8 percent for the first four months of 2016, compared to the same time last year.
New Charter Georgia-Kazakhstan Flights SkyBus, a Kazakhstan airline company, is starting charter flights between Batumi and eight cities in Kazakhstan, Agenda.ge reported. Flights will be available eight times a week starting in June; the following cities will be serviced as part of the three-month program: Aktobe – Batumi - Astana; Kyzylorda – Batumi – Aktobe; Shymkent – Batumi – Kyzylorda; Aktau – Batumi – Shymkent; Atyrau – Batumi – Aktau; Karaganda – Batumi – Atyrau; Kostanay – Batumi – Karaganda; and Astana – Batumi – Kostanay.
Commercial Attaches for Georgian embassies Georgia’s Economy Minister Dimitry Kumsishvili has announced com- mercial attaches will be stationed at the country’s embassies to help foster business ties abroad, Agenda.ge reported. The move is part of a plan to build stronger economic ties between Georgia and other countries over the next 18 months, the report said.
6 | Investor.ge • june-july/2016 june-july/2016 • Investor.ge | 7 in 2015. Pursuant to to a decision of govern- ment of Georgia signed in March, 2015, a land plot of over 350,000 square-meter was given to the Georgian Huashun In- ternational Industrial Investment Group Ltd in order to run a FIZ at Kutaisi for 30 years, the Hualing Kutaisi FIZ. Initial investment in the Hualing Kutaisi FIZ was $150 million. The Hulang Kutaisi FIZ started operating in FIZs in Georgia: Industrial hotspots October 2015 and already contains about 15 different companies. in Kutaisi, Poti and Tbilisi As Giorgi Rogava, Sales and Devel- Over 100 companies receive the benefits of being registered at a opment Manager of the Hualing Kutaisi Georgia’s first tech park Free Industrial Zone (FIZ) in Georgia. Currently, four FIZs are active FIZ says, most of these companies around the country. produce furniture and plastic goods, Nino Bakradze From Kutaisi to Portugal processed wood and stone raw materi- After it initiated the Poti FIZ, the als. The total value of production in the Poti’s 300 Hectare FIZ government decided to establish its next Hulang Kutaisi FIZ has been over $2 he history of Free Economic FIZ in Kutaisi, and, in 2009, allocated 27 million since last October, Rogava told Zones (FIZs) in Georgia starts hectares of land to LLC Fresh-Georgia Investor.ge. Tin 2008, when RAKIA Georgia adjacent to Kutaisi’s former truck manu- Two months after the Hualing FIZ’s Free Industrial Zone LLC, founded by facturing plant. LLC Fresh-Georgia, presentation in Kutaisi, the government the RAK Investment Authority (RA- a subsidiary of the Egypt-based Fresh announced a new project, this time in KIA), a government agency of the Emir- Electric Company, serves as an admin- Tbilisi, the Tbilisi Free Zone. ate of Ras al-Khaimah, bought an over istrator company of the Kutaisi FIZ to BitFury, world’s leading blockchain 3-million-square-meter tract of land in the present day. technology company, is the owner and the seaside city of Poti. The Poti Free Mikheil Tigishvili, General Director developer of the property. The Tbilisi Industrial Zone has been fully functional and Founder of the Kutaisi Free Indus- Free Zone was initiated in the autumn since 2011. trial Zone, says that the Kutaisi FIZ 2015 on a 17 hectare land plot in a Tbilisi Today, the Poti FIZ offers 300 hect- contains 20 companies. Most of them suburb. According to the government’s ares of land, of which over 120 hectares produce home appliances, including gas decision, BitFury will run the FIZ in are currently occupied by businesses. cookers, water heaters, and washing ma- Tbilisi for 49 years. According to David Barker, director of chines, as well as textile goods like en- Currently, BitFury runs energy effi- RAKIA Georgia Free Industrial Zone vironmentally friendly pillows, blankets cient immersion cooling mega Data Cen- LLC, the company that operates the Poti and bed sheets. Tigishvili highlights that ter in the Tbilisi FIZ, which processes FIZ , the FIZ supports services of almost the total value of goods produced in the transactions using BitFury’s latest gen- 80 licensed investors in a wide range of Kutaisi FIZ is over $50 million per year. eration 28 nm and 16 nm ASIC chips. As industries, including vehicle equipment Goods produced in the Kutaisi FIZ are Juliet Kinkladze, Business Development suppliers, construction materials, indus- largely exported to post-Soviet countries. Manager of Tbilisi Free Zone, told Inves- trial liquids, textiles and pharmaceuti- This year, companies in the Kutaisi FIZ tor.ge, BitFury has already invested $30 cals. According to Barker, Poti FIZ had have started to export their products to million in the project and employs over proceed 3,777 containers in 2015. Since Poland and Portugal, as well. 70 people. According to Kinkladze, the inception, however investors in the Poti Tbilisi FIZ is focused on but not limited FIZ have invested about $44 million in A New Generation of FIZs to high tech projects. The team is work- the Georgian economy and employed After a six-year break, the govern- ing on attracting pharmaceutical, trading 380 people. ment licensed two more FIZs in Georgia or textile companies to the FIZ as well.
8 | Investor.ge • june-july/2016 june-july/2016 • Investor.ge | 9 do so only by lawful means. As a law firm, Mgaloblishvili Kipiani Is Limited Liability Dzidziguri (MKD) handles nearly all key aspects of Georgian law and advises on various investments in different sectors of the economy. Always “Limited”? The firm benefits from a large team of expert lawyers and a well-established Tamara Tkeshelashvili and Mariam Antia, network of external professionals to lawyers at Mgaloblishvili Kipiani Dzidziguri (MKD) law firm provide its international and domestic The Supreme Court of Georgia issued a landmark clients with more specialization and decision in 2015 (case #as-1307-1245-2014, case #as-1158- focus. According to international legal 1104-2014) defining the scope of personal liability of directories, MKD’s practice and lawyers the shareholders and the directors of a company. The have been consistently recognized as one decision is important because it discusses the doctrine of the leaders in Georgia. of piercing the corporate veil and interprets one of The information provided in this the core fiduciary duties – the duty of care. article is general in nature and does not constitute legal advice. Please contact Piercing the Corporate Veil The Duty of Care your legal advisor regarding your spe- he Supreme Court ruled that the As for the personal liability of direc- cific needs and situation. grounds for liability of share- tors, the Supreme Court discussed the Tholders and directors are inher- obligation of a director to manage his Tamara Tkeshelashvili ently different, given their distinct status. or her company in good faith and with Tamara has been a lawyer at MKD According to the Supreme Court, due care, and in the best interests of the since 2005 with extensive experience shareholders may be held personally li- company. The Supreme Court explained in Corporate Law, Communications, able (the corporate veil may be pierced), that the minimization of tax liabilities Banking and Finance. She has advised based on article 3.6 of the Law of Georgia and appropriate tax planning are part local and international clients in a broad on Entrepreneurs, if shareholders misuse of exercising due care, since they aim variety of high-profile cases and transac- corporate forms of to increase profit for tions relating to implementing various limiting liability. investors. Neverthe- regional projects, structuring of transac- The Supreme The Supreme Court ruled less, they do not jus- tions, acquisition of shares, regulatory Court broadly inter- that the grounds for tify involvement in matters and more. preted said clause, illegal schemes of stating that personal liability of shareholders tax evasion, due to Mariam Antia liability could arise and directors are the resulting crimi- Along with deep understanding and not only from the nal liability and the genuine affection for civil aviation, misuse of the corpo- inherently different, given destructive effects Mariam has a significant practice in rate form, but also as their distinct status. they will have on a Corporations and Banking and Finance a result of abusing company in the long under her belt, as well as expertise in limited liability. As run. Employment Law. What sets her apart is the Supreme Court states, such abuse of Illegal tax evasion also deprives di- the international exposure, and in-house corporate power occurs when a share- rectors of the shield of the business judg- counsel prospective of how corporations holder orchestrates activities aimed at ment rule (i.e. the presumption that the operate, and how best to assist corporate tax evasion and the company is used by decisions of the directors are informed, clients. the shareholder as a tool for originating in good faith and in the company’s best undeclared income. The burden of proof interests). All in all, company directors More information on MKD Law Firm in such a case is on the plaintiff. shall aim at increasing profit, but shall is available at www.mkd.ge
10 | Investor.ge • june-july/2016 “Resilient” Economy Georgian Macroeconomic In his assessment of ongoing eco- nomic challenges, Agris Preimanis, the Lead Economist for Central Asia at the Review and Growth EBRD, explains that “through various channels, including the reduction of Prospects exports and remittances, and reduction of income associated with oil revenues, we saw that the entire region was affected Keti Khukhunashvili and Georgia was not alone in seeing lower economic growth. However, Geor- he Georgian economy has fared very well despite last year’s economic turbu- gia stood out as a more resilient country lence, which included a game-changing shift in oil prices and deep corrections compared to the rest of region.” Tin emerging market exchange rates compounded by a strengthening dollar. Georgia has one of the highest real These challenges have pushed Georgia to diversify away from its largest regional GDP growth rates among CEE countries trade partner and increasingly look toward the EU for cooperation. Georgia is ex- and its immediate neighbors, achieving pected to deliver relatively stronger growth in the region and start capitalizing on its 2.8% real GDP growth in 2015 versus steadfast focus on EU integration, according to the latest assessments published by a contraction in Russia and below 2% the European Bank of Reconstruction and Development (EBRD), the Fitch Ratings growth for most other CEE countries. and S&P Global Ratings agencies. Moreover, the EBRD recently raised
advertisement growth forecasts for Georgia for 2016 affirmations in rating levels and outlook less than negative 5% of GDP for oil- and 2017 - to 3.4% and 3.9%, respec- assessment issued by Fitch Ratings and importing regional peers and positive tively – crediting better tourist inflows S&P Global Ratings in the press releases balances for the oil exporters Russia and improved business confidence and accompanying their respective May 2016 and Azerbaijan in 2015. However, this investor confidence as reasons for a ratings actions. may even be a blessing in disguise, more positive outlook. “External condi- Both agencies see supportive fiscal since the major cause and the source of tions remain difficult, as Russia is still in and external conditions for Georgia to the persistently high level of CA deficit recession, and other trading partners are deliver on its stronger growth prospects. is, in fact, the high level of FDI, which not doing as well. However, Georgia is In particular, the S&P has highlighted in turn results in a high level of imports expected to turn the corner and there is the prudent level of general govern- that are essential for projects financed by improvement in business sentiment. We ment debt (at 40% of GDP) and several FDI. Without the FDI-driven imports, the see increased trust in the national cur- positive developments expected in the CA deficit could be at a level similar to rency and in the NBG’s actions. Against country, including progress toward the that of oil-exporting countries. this background, growth in Georgia is EU-Georgia Association Agreement. Ac- On the other hand, S&P signals projected to deliver relative improve- cording to the EBRD, the effects of the concern with the country’s external ment,” noted Preimanis in his interview EU’s promising Deep and Comprehen- debt levels, which are compounding the with Investor.ge. sive Free Trade Area (DCFTA) regime effects of the lingering CA deficit and The Georgian currency was also rela- may even skew the preferred foreign which contributed to the 2015 CA deficit, tively more resilient to the stronger dollar currency for Georgia in favor of the euro: the highest since 2012. This deficit is and other factors affecting re- not supported by the country’s gional currencies. Even though current dependence on imports the lari dropped more than 20% Georgia has one of the and the composition of exports against the greenback in 2015, largely based on low-value- it continued to weaken at a highest real GDP growth rates added goods that may not allow slower pace of approximately for further significant improve- 8% since the beginning of 2016 among CEE countries and its ments in the trade balance. (as at 16 May 2016). Furthermore, the level of The EBRD credits this immediate neighbors. dollarization is also persistently leveling off in the pace of high, which adds to the real ef- depreciation to increased trust fects of the approximately 20% in the local currency and the Central It may soon be more relevant to use the depreciation versus the U.S. dollar that Bank’s policies. euro as the benchmark currency given materialized by the end of 2015. As the These factors are also expected to Georgia’s increasing diversification ERBD notes in its May 2016 Economic help decrease dollarization on both the toward the EU – currently comprising Prospects report, Georgia has not seen a loans and deposits sides. Additionally, 24% of the country’s exports in the first significant increase in non-performing the improving trade deficit, which has four months of 2016. loans (NPLs) levels and any further contracted by approximately 14% in jump is not expected, despite a certain the first four months of the year, led to Lingering Challenges lag in such increases. Nevertheless, the less pressure on the GEL exchange rate This is not to dismiss the lingering depreciation was very testing for local versus the U.S. dollar, euro and other challenges in the Georgian economy. The businesses. trade partner currencies. Supporting this S&P has highlighted its discomfort with As explained by the EBRD’s Lead recovery, inflation was reigned in after the level of current account (CA) deficit Economist, “the NPL numbers mask exceeding the NBG target rate in 2015 – at 10.6% in 2014, 11.6% in 2015 and the impact on the real economy – many to a more acceptable level of 3.2% in a projected 10.3% of GDP in 2016 (data companies that borrowed in dollars and April 2016 (y/y). according to the IMF) – which remains have incomes in the local currency are This careful optimism is shared by high despite recent improvements in experiencing a more difficult time as a rating agencies, as well in the most recent the trade balance. This is compared to result. Even though the shock is not big
12 | Investor.ge • june-july/2016 june-july/2016 • Investor.ge | 13 enough to cause a significant problem increase year on year in the number of in the economy, these companies need visitors in the first four months of 2016. A Blooming to tighten their belts, and we will see The international consensus places high the continued effect of this throughout hopes on the sector already in 2016. As Industry: 2016.” Agris Preimanis of the EBRD notes, “Looking at the broader picture for Georgia Positive Outlook tourism in the region, and particularly The positive news, however, is that among the FSU countries, Georgia stands Faces a Georgia is managing to develop its FDI to benefit the most, not least because potential by focusing on becoming a of constraints in tourist flows to other Growing regional transport and communica- countries.” tions hub, a tourism destination and a The broader consensus is for Georgia Demand for green-energy provider for neighboring to use the DCFTA and its progressing economies. Opportunities in all three integration with the EU as a catalyst Flowers sectors are promising and substantial, for continued improvement in local There is steady including greater trading ties with China economic competitiveness and policy growth in Georgia’s and the engagement in the Silk Road reform. Georgia has the opportunity to Belt project, the Anaklia Deep Sea Port build solid macroeconomic positions domestic and development, and the DCFTA. for long-term growth by developing imported flower and high-value-added, niche ex- garden sector. ports, and creating a robust The Georgian currency communications/transporta- tion network, as well as by Maia Edilashvili was also relatively enhancing its tourist potential and green energy generation he Camellia Flowers Art Salon more resilient to the capabilities. The more active on Tbilisi’s Vazha-Pshavela Av- progression of the Silk Road Tenue opened a little over a year stronger dollar and other Belt initiative also presents an ago, selling cut flowers imported from important gateway for Geor- the Netherlands and Ecuador. factors affecting regional gia to reprise and capitalize The salon charges between $22 and on its role as the transportation $290 for a bouquet of flowers, depending currencies. and communications hub in on the number and selection of flowers, the region. relatively costly for a country where “Georgia should look at average monthly income per capita is The country is already making im- the DCFTA and the Association Agree- 273 lari ($125). pressive progress. As S&P notes in its ment as being an anchor for continued Despite the prices, demand has been May 2016 credit action report, Geor- improvement in competitiveness and steady and is growing, according to the gia has financed 75% of its CA deficit reform. This will help in terms of trade Salon’s manager, Bondo Machavariani. through net FDI, primarily concentrated with other countries and will improve on the energy sector in 2015. A hefty domestic competitiveness compared Growing Number of Imports portion of last year’s FDI was also con- to foreign companies. That, combined From 2010 through 2015, Georgia centrated in the energy sector, particu- with expected progress in an economic imported cut flowers from more than larly the South Caucasus gas pipeline environment where we see other trading ten countries, with Ecuador, Turkey, the connecting Azerbaijan and Turkey and partners of Georgia improving as well, Netherlands, Armenia and Azerbaijan passing through Georgia. Tourism is also Georgia has a solid basis for growth in being the top five countries of origin of emerging as a sector for significant cash- the medium term,” noted the EBRD’s flower imports last year in terms of prod- generating potential, delivering a 15% Preimanis. uct value, according to GeoStat.
14 | Investor.ge • june-july/2016 From 2010 to 2015, the volume and value of imported flowers increased, while the number of exports of flowers halved. In figures, in 2015, 654.1 tons of flowers were imported, compared to 325.4 tons in 2010. Georgian flower exports fell from 30.9 tons in 2010 to 15.9 tons in 2015.
Demand vs. Quality Statistics for Georgian-grown flowers are not readily available, although there are data on the number of greenhouse businesses registered by GeoStat in the fields of gardening, decorative gardening and nursery throughout Georgia—385. Nearly half, 160, are located in Tbilisi. Camellia’s Machavariani told In- vestor.ge that the Georgian market is Vardi-2014/ENPARD dominated by local production, which is, however, not of the same quality as the addition to other services. partnership with Care International. The imports and cannot meet the demands of The sector is also attracting interest cooperative’s financial contribution was local flower shops. from international donors, who are sup- 4,488 lari ($2,058), plus a non-monetary “The lifespan of imported flowers is porting various startups in rural areas. contribution via the greenhouse construc- four times longer than that of local flow- Vardi-2014, a joint cooperative of tion amounting to 8,000 lari ($3,670). ers.Therefore, prices go up,” he added. five energetic, innovative women from With this grant, the cooperative mem- The high price of commercial gas in western Georgia’s Abasha region, is one bers renovated the facility, equipped it Georgia makes it “impossible” for local such beneficiary. with ventilation and irrigation systems, growers to compete in terms of quality The cooperative decided to create a a special shade net, and purchased 500 and price, he indicated. rose greenhouse using support offered rose bushes, increasing their total num- To improve the local flower sector, by The ENPARD. The European Union ber to 1,600 bushes, according to www. the Georgian government and donors, programme started in 2013 in Georgia enpard.ge. like the European Neighbourhood and through variety of aid modalities has Programme for Agriculture and Rural thus far allocated 102 million euro in sup- Nurturing a New Generation Development (ENPARD), are working port of agriculture and rural development There is also a rising demand for with greenhouses and entrepreneurs. in the country. The ENPARD aims to professional florists. The Georgian The Agricultural Projects Manage- improve the efficiency of the institutions Patriarchate Community College of ment Agency, an arm of the Georgian involved in agriculture, to strengthen Decorative Gardening was authorized Ministry of Agriculture, has been run- cooperation among small farmers and in 2011, and over the past five years, the ning a preferential agri-credit project to stimulate economic growth in the college has issued 550 diplomas – and since 2013. rural areas. 40 percent of its alumni are employed at “The program invites those interested The ENPARD provided 7,909 lari florist shops, as private gardeners, or they into the flower greenhouse business, in in support ($3,627) for Vardi-2014, in have opened their own stores.
june-july/2016 • Investor.ge | 15 – in terms of weight – than all other Georgian crops other than grapes, apples and tangerines. “Of course, the hazelnut industry has good potential in Georgia,” Rati Kochlamazashvili, a senior researcher at International School of Economics at Tbilisi State University (ISET), told Investor.ge. “We are in the top five pro- ducers [worldwide], holding as much as a 5% share of the international market and taking the third place in terms of hazelnut plantations, with only Turkey and Italy being ahead. And there is a possibility for Georgia to increase its share.”
Hazelnuts/ENPARD
Building a better business Cracking the Nut Business To help farmers and exporters tap into the full potential of Georgia’s hazelnut Georgia is the fourth largest producer of production, the European Neighbour- hazelnut worldwide. Now its focus is on hood Programme for Agriculture and improving their quality and quantity. Rural Development (ENPARD) is help- ing increase the capacity and efficiency Maia Edilashvili Today he cooperates with around 50 of the players involved in the sector. farmers. With a processing capacity of Launched in 2013, with an allocation azelnuts are a top Georgian 200 tons of hazelnut per month, the plant of 102 million euro so far, ENPARD export, outselling traditional employs 90 persons during peak season, works to reinvigorate the agriculture and products like wine and mineral in August and September. H the rural sector thorough fostering coop- water. But the sector has to tackle issues From August through mid-May, eration between farmers, the government like supply and quality in order to take Natinvest sold approximately 1,500 tons and civil society. full advantage of the market’s potential, of hazelnuts, mainly to Italy, the UK, The ENPARD improves farmers’ according to specialists. Germany, Latvia, Estonia, Belgium, the know-how through consultations and Czech Republic, Russia and Kazakhstan. local information centers, and also Booming demand Svanidze said that nearly 80 percent strengthens cooperation among small- Cezanne is now offering the wide-spectrum “This business is expanding,” Davit of Georgian hazelnut exporters work Paper Packaging Production holder farmers to increase productivity Svanidze, founder and director of Natin- through international traders. for the first time in Georgia! and reach economies of scale. vest, one of the 26 hazelnut processing “We have to send our product to • All-size Paper cups • Take-away Boxes • Kraft Paper Bags • Shopping Bags The Georgian government is trying to plants in Georgia, told Investor.ge. whichever country they request, depend- 140, Tsereteli Avenue, 0119, Tbilisi. Georgia help the sector, according to Nana Chin- Tel.: +995 32 235 70 02, +995 32 235 70 02 The company was set up in 2011 as ing on market demand,” he explained. www.cezanne-web.com chilakashvili, Deputy Head of the Public an exporter, initially renting out plants England and Italy, he noted, have been Relations Department at the Ministry of to process the product. Later, in 2015, the most welcoming markets for his busi- Agriculture. Svanidze opened his own processing ness during this latest season. The ministry’s scientific-research plant in Zugdidi, western Georgia, with In 2014, the latest year for which center has conducted a number of train- the support of the Ministry of Agricul- full statistics are available, Georgia’s ing sessions in hazelnut growing mu- ture. hazelnut yield was 37,400 tons, larger
16 | Investor.ge • june-july/2016 nicipalities throughout Georgia and has in weight, which is detrimental to the shell is removed. “In Georgia this index handed out information leaflets, in order hazelnuts’ quality. The goal, according is 35-40 percent, while in Turkey it’s to strengthen knowledge of hazelnut to CNFA’s webpage, is that by the time 50 percent,” Kochlamazashvili noted. growers and exporters. the project ends in 2020, there will be Some of the assistance from donors, “State co-financing schemes were two sustainable associations that assist the Georgian government and the EN- developed, allowing farmers to expand growers and processors in exporting high PARD, is starting to help, according to their business, launch new plantations quality, dried, traceable hazelnuts that Mamuka Beriashvili, the owner of three or replace old, less productive hazelnut sell at a premium to international buyers. hazelnut production plants. Beriashvili is varieties with new, high-yielding ones. particularly impressed with the hazelnut With the assistance of the government Competing with Turkey export procedures to Europe, which have numerous hazelnut processing plants and These measures could also help become easier. “Previously [farmers cooperatives were set up,” the ministry Georgia compete with Turkey, the larg- were issued] a temporary license but now said in emailed comments. est player in the international hazelnut it is a permanent EURO-1 certificate, In addition, Georgia’s hazelnut which is issued in Georgia,” the EN- industry celebrated the launch of a In addition, hazelnut producing PARD’s webpage (www.enpard.ge) new, Georgia Hazelnut Improve- quoted him. In addition, hazelnut ment Project (G-HIP) in May. enjoys VAT free status in Georgia, production enjoys VAT-free status The five-year project is a public- unlike Turkey, which makes Georgian in Georgia, unlike Turkey, which private alliance between USAID, makes Georgian hazelnuts more Ferrero and CNFA (Cultivating hazelnuts more competitive on global competitive on global markets. New Frontiers in Agriculture), markets. “Our biggest competitor Turkey a non-profit organization head is paying three percent export tax so quartered in Washington, D.C. they lose in terms of price policy,” and Brussels. market. Turkey holds a 68 percent share Beriashvili said. Malkhaz Khuntsaria Experts working with the project say of the world’s hazelnut supply and, as the of Soplis Imedi (Hope of the Village), a one of the challenges to the quality of leading producer, it sets the rules of the hazelnut producing cooperative funded Georgian hazelnuts is the pay system: game, according to specialists. It’s hard by ENPARD in Senaki municipality, in many farmers in Georgia have tradi- to compete with Turkey for a number of western Georgia, told Investor.ge that tionally been paid based on the weight reasons, economists believe, particularly the future of the sector looks promising. of their harvest. As a result, farmers considering its high productivity and “There is a deficit of around 25% an- attempted to harvest their crop early the proportional volume of good qual- nually in European markets,” he noted. when the hazelnuts are moist and heavier ity kernel remaining after the hazelnut
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june-july/2016 • Investor.ge | 17 implementation of corporate tax reform, obstacles for economic growth in our Georgia’s which is scheduled for early 2017. The country”, said Giorgi Mzhavanadze and government will make retained and Salome Deisadze, research fellows at reinvested profits exempt from the cur- the International School of Economics Estonian rent corporate tax rate of 15 percent. In at Tbilisi State University, in an e-mail addition, companies will file taxes on a interview with Investor.ge. monthly basis rather than annually as “The most important bottleneck in Connection they do now. business development in Georgia is a These reforms are closely modeled skills mismatch: the demand for highly on the corporate tax regime that was qualified workers is high, but supply can- Tbilisi is looking to implemented in Estonia in 2003. A 2011 not meet the labor market needs,” said Tallinn’s success study by economists at the Bank of Es- Mzhavanadze and Deisadze. There is for keys to tonia found that exempting reinvested thus much room for growth in vocational and retained profits resulted in higher education. economic reform. economic growth and labor productivity, The Ministry of Education and Sci- and shifting to a monthly filing system ences of Georgia is deepening its coop- reduced the amount of time that compa- eration with the Estonian government in nies spend on tax compliance each year. this area. One example is a partnership “In the Estonian case it has proved project between Kobuleti Community over the years that [corporate tax re- College Akhali Talgha and Valga, an Es- form] was a very clear contribution to tonian vocational education and training economic growth” said the Estonian institution. Launched earlier this year, Ambassador to Georgia, Priit Turk, in an the project will allow Georgian logistics interview with Investor.ge. Ambassador students to pursue advanced studies in Turk spoke highly of tax reform in his Estonia and participate in internships own country, and is optimistic that it can with Estonia-based companies. work for Georgia as well: “I don’t see Joseph Larsen why [it would not be successful]. The Bridging the Gaps for Future vision of the government in Georgia is Growth hen one hears the term the same as it was in Estonia.” Education experts are optimistic “special relationship” in for- Tax reform is just one of the areas that Georgia can learn valuable lessons Weign diplomacy, the Anglo- in which the two countries share ideas. through its cooperation with Estonia. American partnership is usually what Ambassador Turk also spoke at length But according to Simon Janashia, a comes to mind. However, the partnership about education, one area where success- Tbilisi-based education consultant, there between Georgia and Estonia is another ful reforms have helped spur economic are structural problems holding back special relationship worth watching. growth. He identified three key aspects Georgia’s vocational education sector. These two former Soviet republics of Estonia’s successful education reform: “Professional education is not very share borders — and complicated rela- developing a curriculum that aligns with prestigious and not a very secure invest- tionships — with Russia. They also have labor market needs, improving teach- ment,” said Janashia. Georgian students deep cultural, geographic, and historical ers’ qualifications, and expanding and lack a bridge from vocational education differences. Those differences have not improving vocational training. to higher education. There is no clear stopped them from cooperating in a path forward for someone who goes number of areas, however. Focus on Education, through a vocational program but later Exchange decides to pursue a university degree. A Shared Vision These lessons have not been lost Georgia could also do more to utilize The latest point of convergence on Georgia. A “low level of education advanced technologies, including the between the two countries is Georgia’s is definitely one of the most important internet and communications. Advance-
18 | Investor.ge • june-july/2016 june-july/2016 • Investor.ge | 19 ment in these areas has been critical for Estonia. According to Turk, Estonia’s success is largely due to “a very clear focus on Saving Georgia’s high-tech and IT. It has been focused for 15 years, and now we see some results ... Students and different segments of society got training in how to use the Internet.” Threatened Georgia has made gains in these areas. Nearly all of the country’s secondary schools have internet access, and 300,000 Georgian schoolchildren have received laptop computers free Ancient Wheats of charge from the government. Prized by agriculturists However, according to Janashia, usage lags behind capabili- ties. There are no “regulations that would acknowledge infor- abroad, Georgia’s mal education” and “no accreditation mechanism for distance endemic varieties of programs,” explains Janashia. Georgian schools will have to wheat are making a integrate web-based education in order to make the most of available technologies. slow, quiet comeback In the view of Ambassador Turk, it is important that both after years of neglect. countries maintain a forward outlook during their ongoing economic transformations: “It’s always important to look more to the future than discuss what has been achieved previously. I think that a very clear focus on the future and very clear goals Sally White [are most important].” advertisement eorgia could just as well be described as the “cradle of wheat” as the G“cradle of wine.” The lands between the Caucasus mountain ranges are regarded by scientists and named by the United Nations as a “biological hotspot” for many plants. For wheat, over half—14 out of 27—of the world’s known varieties are registered in Georgia, five of them endemic. Grains named in the oldest Georgian translations of the Bible (“Asli,” “Dika,” and “Ipkli”) are still around. Grapes and grain have two different sto- ries. Georgia’s indigenous grape varieties and wineries, both large and small, are enjoying commercial success across the world. Yet the country’s farmers of ancient, Georgian heri- tage grains have only a minute part of even the domestic market, let alone the global one. Globally, the ancient Georgian “land-race” varieties—regional ecotypes which adapted over centuries to local conditions— are revered and collected by world plant gene banks. Ag- riculturists want them because they thrive in harsh conditions and are thus sought after to develop strains that will survive global warm- ing. Nutritionists recommend them because
20 | Investor.ge • june-july/2016 Georgia: Cradle of wine and cradle of wheat they have a relatively simple gluten gram), be grown for subsistence only as breads. It smells warm and fragrant with structure, which many say makes them a hardy, adaptable crop that may produce their scents. Over the next few weeks easier to digest — the U.S.-based Old- lower yields but needs no chemicals. the bread will begin to be sold in shops ways Whole Grains Council is just one Fortunately, these grains are not only across Tbilisi. party to research that indisputably proves healthy but also produce delicious, nutty- She, Jean Jacques Jacob, and most this. These strains were around long, long tasting bread. Hence some of Tbilisi’s others who produce bread from Geor- before grains began to be hybridized to new restaurants, Mukha on Perovskaya, gian heritage grains, are using Georgia’s deliver mega-yields, which particularly, for example, and wine bars, such as Meskhetian Red Doli wheat (Tsiteli in recent years, have brought dietary Vino Underground on Galaktion Tabidze Doli), a soft wheat which spread over all challenges for many consumers. Street are showing interest. And for several years now, An Artisan Revival Vake shoppers have enjoyed Georgia could just as Just as its heritage grains are in dan- the village stall (across from ger of dying out, Georgia’s artisan food Goodwill) of Frenchman Jean well be described as the producers are beginning to adopt them. Jacques Jacob, who brings This is very necessary, as while Georgia’s organic produce, salads, eggs, “cradle of wheat” as the Biological Farming Association, Elkana, cheeses and heritage-grain has run projects to include these heritage bread from the village where “cradle of wine.” grains in a national seed bank, only com- he farms in Kakheti. mercial success will ensure their survival The latest pioneer is Lali on any meaningful scale. Otherwise, they Meskhi, who, after a career in interna- of Georgia. Its ancestor (as recorded in a will exist merely on the edges of fields tional development, has opened a bakery, paper on “The ancient wheats of Georgia and in uplands as relicts of history. Or Mzatamze, which uses only these grains. and their traditional use in the southern they will, as with some Elkana farmers The shelves in her bakery — of course an part of the country” written by Elkana’s (especially those taking part in its UN- organic one — are stacked with brown director, Mariam Jorjadze, among others) funded 2009 Samtskhe-Javakheti pro- and white loaves of wheat, rye and sweet was Triticum aestivum. Remnants of this
june-july/2016 • Investor.ge | 21 Mzatamze Nick Paniashvili grain have been found in Neolithic ma- have latched on to Tsiteli Doli, including tainability in Georgia. She sees huge terials in Western Georgia and materials it their gene banks, and farmers in the potential in Georgian wheat, having of the Eneolithic Age in Eastern Georgia. south of France are using it, calling it spent the last five years managing a Georgian soft wheat varieties are Caucasus Rouge. United Nations Development project to used to derive modern wheat species, However, says Meskhi, finding develop agriculture—crops for human enough of the wheat is no and animal food being key — tourism easy task. Hence, her plan and environmental education. Beyond Just as its heritage grains is to do what Jacques has domestic consumption, however, there done: grow her own. In any are opportunities arising from wheat’s are in danger of dying event, this is something that tremendous strategic importance in food has long been in her mind, security and trade globally. out, Georgia’s artisan food since the grain was recom- “Georgian wheats are not just deli- mended by her nutritionist cious and good for the health of those producers are beginning to several years ago. Plus, she who eat the bread made from them,” thinks increasing production says Meskhi. adopt them. of these ancient varieties is “They can improve food security the only way to improve the because of their resistance to nutrient, quality of Georgian bread. water and climate stress. So, they are commented Jorjadze in her paper: important not just to Georgia, but to the “Regrettably, these wheat species are Seeds of Sustainability world, and we should be promoting them critically endangered in Georgia. Fortu- For Meskhi, Georgian wheat is of much more widely.” nately, they are known and conserved in particular interest, coming as she has She intends to make sure that Georgia genebanks abroad.” The U.S. and France from a background of building sus- does!
22 | Investor.ge • june-july/2016 Another controversy is in Article 21, now allowing one member of MUCH ADO ABOUT NOTHING OR A REAL the constitutional panel, instead of the entire panel to bring the cases to the plenum of 9 judges. Therefore, any case, even if does BATTLE FOR THE CONSTITUTIONAL not fall under the competence of the Plenum may end up there at COURT the decision of one judge. The quorum of the Plenum has been increased from 6 to 7 members, whereas the decisions now may be rendered at the Headline news in Georgia recently start with the breaking news of consent of 6 attending judges, instead of 4. purported attacks on independence of our Constitutional Court. Thus, the talks on the possible political motivations may continue Politicians, experts, NGOs and everyone who may or may not have whereas our job is to only bring the facts to the reader, reflected an informed opinion are wondering if the President will use his right by the independent lawyers of BLC. to veto this law and if the Parliament will overcome it with the same ease as it has done before. Nine judges of the Constitutional Court appointed by the Parliament, President and the Supreme Court stand to protect constitutional order and rights in Georgia. DEFAULT JUDGMENTS MAY NOT MAKE The judges in the Constitutional Court may be appointed only for one SENSE ON THE LEVEL OF APPEALS – 10-year term, interestingly, the term of three current judges, two President's appointees, one Parliamentary and one Supreme Court appointee is expiring at the end of September. With its decision rendered on March 17, 2016, the Grand Chamber of the Supreme Court overruled the default judgment rendered by While the first few amendments to the law are aimed to specify the Court of Appeals stating that the failure to submit the written the procedure applicable to the appointing the Chairman of the response to an appeal must not serve as a basis for rendering Constitutional Court, procedure of substituting the judges, etc. the default judgment by the appellate court (Case #as-121-117-2016). first controversy begins from Article 18 of the Organic Law on Supreme Court based its arguments on the principle of adversary Constitutional Court of Georgia. The law previously stated that trial. The judgment states however, that the failure of the party to after the expiry of their tenure judges could still handle cases appear in the oral hearings will, yet trigger the threat of the default under their initial review. The new law limits the right of the judge judgments. whose term is expiring in 3 months to review cases related to the election, referendum, etc. but other pending cases, such as the review of constitutionality of the normative acts shall wait until the new judges are appointed. Consequently, starting from July 2016 four judges of the Constitutional Court shall be dismissed from all cases related to the constitutionality of any normative act. Creating a New Niche
24 | Investor.ge • june-july/2016 The Georgian government and private businesses are working together to expand the country’s tourism sector. From mountains to medical services, Georgia is creating new niches to attract tourists.
june-july/2016 • Investor.ge | 25 Building on Success: A Government Program to Boost Hotels in Mountainous Areas
26 | Investor.ge • june-july/2016 Investor.ge’s Lika Jorjoliani spoke is also interest in creating ropeways con- necting Gudauri with Kazbegi. with Deputy Economic Minister Keti A second ski resort, Bakuriani, is Bochorishvili about the government’s slated for toboggan runs and a new park. new initiative to help encourage Three new ropeways and accom- developers to build hotels in modations for 300 beds are planned for nearby Mitarbi, a resort not far from mountainous areas around the Borjomi. country. In Svaneti, four new ropeways are planned for the Tetnuldi resort and, in Adjara, a master plan has been created for the newest ski resort in the country, Goderdzi. In addition, this year the low-cost Lika Jorjoliani availability,” she said. airline Wizz Air will open a regional Therefore, the Ministry decided to base at the Kutaisi Airport. There are also he Georgian government is bet- make access to affordable financing the more flights to Israel, Iran and Russia ting on a new financing system heart of the initiative, betting that more planned, she said. Tto attract more hotels and servic- investment in high-value projects will es—and more tourists—to the country’s led to economic growth in remote areas Key to Developing Tourism remote mountain resorts. of the country. sector From Bakuriani to Bakhmaro and Developers who build a hotel in a “Large-scale projects completed in every potential ski resort in between, the mountainous region within 24 months mountain resorts are key to increasing the program foresees low interest rates and will pay annual interests rates of between number of tourists,” Bochorishvili said. other business-friendly conditions to en- zero to three percent for two years. The She noted that there have already courage businesses to build in potential project also foresees “co-participation” been real successes, including the ar- hot spots for tourists. worth half of the loan amount, Bochor- tificial snow systems in Gudauri and “One of the main targets of the gov- ishvili said. Bakuriani (Didveli); the creation of bike ernment is to transform mountain skiing If a developer brings an international boulevards and parks in Bakuriani and resorts into four-season resorts,” Deputy hotel brand to Georgia, the project will Gudauri, built according to European Economy Minister Keti Bochorishvili provide some co-financing for the annual standards; the opening of the Goderdzi said. interest rate as well, and as much as a Resort; and the establishment of a single The project, which is part of the 300,000 lari for annual franchising and ticket to all ski resorts for subscribers. government’s Produce in Georgia pro- management costs for two years. The ticket would allow skiers to use ser- gram, also aims to increase the number vices at Gudauri, Bakuriani, Goderdzi, of tourists, develop infrastructure in the Plans Across the Country Tetnuldi, and Hatsvali resorts. regions and create local jobs, she noted. There are already developments “The implementation of these proj- planned or underway in six of Georgia’s ects resulted in an increasing in the Low-Interest Ioans mountainous resorts, she said. number of beds; for example in Gud- Bochorishvili said that Produce in A general development plan is be- auri, there was an 85 percent increase Georgia studied the tourism market and ing created for the Bakhmaro resort in compared with 2010, and a 66 percent found that more support was necessary western Georgia. increase in the number of visitors,” she to encourage developers to build accom- There is also a new general develop- said. modations in mountainous regions. ment plan for Gudauri, a popular ski “According to research conducted by “The demand for high-quality ho- resort, which includes the construction EY, there is the potential for three times tels is constantly increasing, but for the of additional three ropeways as well as the number of visitors – from half a mil- entrepreneurs the key issue is financial work on the water supply system. There lion to 1.5 million.”
june-july/2016 • Investor.ge | 27 Georgia’s Potential to Become Hub of Medical Tourism
The growing Meri Taliashvili even provide them with special offers for recovery resorts or other services, popularity of rom Turkey and Thailand to Costa depending on what they are interested medical tourism Rica, countries around the globe in. But basically there is great demand is attracting Fare building medical infrastruc- for musculoskeletal system and gas- attention in ture and treatment programs to attract trointestinal tract diagnosis, and resort patients, who are, in a growing trend, treatments,” she told Investor.ge. Two Georgia. seeking care abroad. Georgia has plenty percent of the total annual number of to attract foreign patients, according to international tourists to Georgia come Ketevan Zurashvili, the Chief Specialist seeking medical treatment, according to of the Department of Tourism Products the 2013 International Visitors Survey and Small-Infrastructure Development at data. the Georgian National Tourism Agency. “There is a huge interest in medical Tapping into the Trend tourism from neighboring countries. We Zurashvili noted that in order to
28 | Investor.ge • june-july/2016 clinic offers high-quality treatments for ICSI, IVF, egg donation, surrogacy, laparoscopic gynecological surgeries, therapeutic and surgical treatments, and all kinds of various other gynecological and reproductive disease diagnoses and treatments. Dr. Nato Khonelidze, a professor and founder of In Vitro, told Investor.ge that Georgia provides an important service for couples seeking infertility treatment. “Since many European countries don’t allow donation and surrogacy, in this case Georgia is a very attractive country. We receive 20-25 international patients monthly,” she said. In addition, patients from the UK, France, Germany, U.S., Australia, South Korea, Romania, Sweden, Norway, Po- land, Lithuania, Latvia, Russia, Armenia, Uzbekistan, Kazakhstan, and Ukraine travel to Georgia to receive hair-loss treatments. Rusudan Buachidze founded Medi- cal Travel Georgia LTD in 2015 to promote Georgia as a medical tourism destination and to make high-demand and high-quality medical care accessible and affordable for international patients. She began to operate as an inbound medical tourism facilitator and col- laborates with Georgia’s leading medical “reach the potential” of Georgia’s medi- about Georgia. centers in all areas of medical tourism, cal-tourism sector, the country must tap including fertilization, plastic surgery, into current trends in the global market. Affordable, High-Quality dentistry, and cardiac surgery. Currently, the administration is work- Treatment “We create a comfortable environ- ing on spa and fitness community promo- Patients from Armenia and Azerbai- ment for medical travelers who take tion. During the year, they participated jan, Russia and Turkey, Israel and the advantage of medical tourism in Georgia in twenty international exhibitions, in the Czech Republic – as well as from many and provide them during their trips with European as well as Asian and Middle other countries – are already traveling to all the necessary and extra services such Eastern countries, where they present Georgia seeking treatment for infertility, as organization of pre-consultations, the country’s potential. dentistry, digestion problems and dozens transportation, accommodations, accom- In addition, Georgia hosts press and of other issues. paniment to the clinics, twenty-four hour information tours. Last year, about 300 In Vitro, a well-known fertilization online support, and sightseeing tours,” journalists visited the country; they trav- clinic in the South Caucasus, has been Buachidze told Investor.ge. eled and got acquainted with Georgia receiving patients from Europe and “Our mission is to create a remark- and sent back materials to their countries U.S. as well more than a decade. The able experience for each medical tourist.”
june-july/2016 • Investor.ge | 29 While Putin considers Russia as a full and rightful heir of the Soviet Union legacy, the former Georgian government took drastic steps to awaken the wounds of Soviet repressions by creating the information-packed occupation museum inside the National Museum in the capi- tal, Tbilisi. The Georgian government also reno- vated the museum in Stalin’s home town, removing his statue from the city center. Putin was reportedly outraged at the A Tourist in Time: How Can Georgians name of the Museum of Soviet Occupa- tion, which Rurua took as a compliment. Turn Their Soviet Past and Love of He says the conversation between Putin and Saakashvili— two fierce op- Stalin into a Benefit? ponents— neatly summed up Georgia’s decade-long attempt to break away from Helena Bedwell of their past, in an attempt to make it its Soviet past. go away, or, on the other side, are over- “Why call it a Soviet occupation everal years ago, my friend told whelmingly proud of the fact that Stalin museum? Georgians were among them, me that he found portions of his was born here. too,” Putin reportedly said. Sgrandfather’s sentencing files “Then why don’t you open a museum from the Stalin-era purges on the tables The Path of Poland of Kremlin occupation by Georgians?,” in the decor of the popular KGB cafe in Why can’t Georgia do the same as Saakashvili replied. Tbilisi. Poland, Romania, the Baltic countries His grandfather was one of the tens of and Germany? Why are we Georgians A Vast Potential millions of victims of Soviet repression not facing our Soviet past in an orderly There is vast potential to conduct and mass killings, those who were called and constructive manner? countrywide tours around Georgia, “enemies of the people.” These people, Nikoloz Rurua, a Georgian politician, where history lies deep in the ground in with their families or without, were and a former member of the Cabinet of the form of mass graves and in the former killed in mass executions, performed by Georgia, thinks that there is simply no NKVD (the precursor to the KGB) build- Chekists (from Cheka, secret service). readiness or “will” in Georgian society ings and cellars that are falling apart—or Relatives were sent to Gulags, where to do deal with its Soviet past. being torn down— without any attention hunger and death awaited them. He argues that even movies and from the government. My friend’s family went to the documentaries are not made to enlighten In addition, the Gulag system existed KGB-themed cafe and demanded that the public. One exception is the famous not just in the cold, harsh Russian climate the papers be removed from the table film “Repentance,” but critics argue the but also in Georgia— slave labor and display. Their wish was granted, but the movie was too fake, sad and disturbing— camps all had their own history here. question of how to treat Georgia’s Soviet too far from reality to make an impact. While the current government has past remains. Rurua, who established the Museum been criticized for appearing too con- How many more files like those are of Soviet Occupation in 2005, tells a fas- cerned about Russia’s feelings to dig misplaced, lost or simply lying some- cinating story of how Russian President up the past, other former Eastern Bloc where covered in dust? Vladimir Putin reacted with he learned countries have turned similarly painful Thoughts on Stalin in Georgia are about Tbilisi’s plans to open the museum legacies into a learning tool, and a draw decidedly mixed: people seem to be split during then-President Mikheil Saakash- for tourists. between ignoring and being ashamed vili’s visit to Moscow. Tourists want to see such places.
30 | Investor.ge • june-july/2016 At the moment, there are only the Oc- to defend itself. which can be found at sovlab.ge. The cupation Museum and Stalin Museum The Ministry’s displays include ar- project “develops routes of repressions to visit; they are not satisfying demand. chival footage and black-and-white pic- and terror in the center of Tbilisi (Solo- On the same note, there is a desperate tures of the Soviet army entering Tbilisi, laki-Mtatsminda district) and prepares need for in-depth education, for students already foreshadowing the dark future educational programs, based on archive and schoolchildren to visit such places, ahead as they marched through the city’s and library materials, memories and oral as the school curriculum provides little streets, posing with the dead—those who histories,” according to the website. information about Georgia’s tragic past. perished in the unbalanced fight just I was told that the history of one of It’s not surprising that, until now, outside the capital, Tbilisi—a sign that my favorite old streets in Tbilisi, Macha- only foreign writers, such as Simon the cleansing of the so-called “enemies beli and Ingorokva, provides a real sense Sedbag Montefiore, Robert Lafonte, of the state” had begun. of how terror spread in those days, as Lawrence Scott Sheets, and others, The archives document the transfor- the purges seem to have touched nearly have carried out detailed research work mation of the Georgian police as well: in every building. on Stalin. one room there is a tall mannequin wear- Khvadagiani worries, however, that Are Georgians unable to judge their ing a sharp-cut leather jacket, a familiar the group’s six years of work has failed own past the way other post-Soviet, look for the Chekist, who brought terror to make a major local impact because Eastern European and Baltic peers have to the streets and minds of the newly their support mostly comes from the done? Do we need to wait for the next created Soviet republics. West and their work is largely based on generation, those who have no memory On the table of Lavrenti Beria, the Western experiences. But the work of of a Soviet childhood or connections, for notorious head of the NKVD, killer Sovlab, even with its regular tours of an objective policy? and sex predator of those times, his ink sites in Tbilisi, is too little to cover the The archives of the Ministry of In- blotter still bears the marks of those he entire history of the Soviet terror. ternal Affairs are certainly the first stop sentenced to death. His large table is Government participation and help for any person interested in the details of topped with green marble, a sign of his is crucial, especially when it comes to the Soviet terror. power and wealth. Everything, from the the main evidence, such as houses, cel- I have visited several rooms at the table to the typewriter of the secretary lars and routes, used by the repression Ministry, which are packed with very who typed his murderous decrees, smells machine, which now require protection informative materials, but are sadly not of blood and fear. from possible destruction due to age open to the public without special notice The key to could be Beria’s boss, Sta- or investors wanting to “renovate” the or permission from the authorities. While lin himself: sadly, even mass murderers historic areas. Russia descends into amnesia over Stalin have their fans, and there are plenty of “There is one such amazing house, and the Soviet past, Georgia’s KGB such fans in Georgia. in a terrible state, where the cellars were archive from 1921-1990 is online in Statues erected to the former leader used as prison cells, which includes a searchable database as a vital act of and local son are scattered around the isolation chambers still bearing the memory. Cheka orders and files of those country, and there are personal collec- writings on the walls of those prisoners, persecuted are available on website, but tions and mini-museums, which could untouched,” Khvadagiani said. “No one those who wish to look further and scan be open to public if arranged. thinks to preserve those places for the documents need to apply for permission. future,” he added. The display documents date from Terror Streets The slowing building boom in Tbili- the reign of Georgian royalty and the Some groups are already trying to si’s historic quarters has provided the so-called Amirspasalaris—the royal use what remains in the public domain organizers of those tours time to raise servants who managed military forces— to educate tourists and locals alike about awareness. They have reached out to and continue up to the modern police Georgia’s tragic past. President Giorgi Margvelashvili to help force of today. Irakli Khvadagiani, who joined this save his own childhood home, as the Georgia was occupied by the Soviet effort, has worked on a Soviet Past Re- building once housed a NKVD detention army in 1921— a small, happy republic search Laboratory project entitled “Red cell, and holds invaluable history of the terminated and overrun without a chance Terror Topography,” information about people who were held there.
june-july/2016 • Investor.ge | 31 Georgia: Growing sector he KPMG report, which is based on information from interviews with hotels as well as other sources, highlights the rapid growth Creating a Tof the hospitality sector — including hotels, restaurants and catering — (HORECA) in Georgia. Two percent of Georgia’s total GDP came from the HORECA Premier Tourism sector in 2015, according to official data. The number of international arrivals to the country is now growing faster than the world rate, according to data from the UN World Tour- ism Organization and the Georgian National Tourism Administration. Destination From the KPMG report: “A comparison of global growth rates with those that of Georgia showed that during the last five years international arrivals in Georgia increased considerably faster than KPMG recently published A in the rest of the world. The number of tourists traveling internation- overview of the Georgian ally throughout the world was growing at a steady rate during recent years.” hospitality sector. The summary The report found that most visitors are coming from neighboring highlights the tourism countries, predominately Azerbaijan and Armenia (24.9 percent and 23.6 percent respectfully), with Turkey as a close third, trailed industry’s steady growth by Russia and Ukraine. and high expectations, as July, August and September are the peak times for visitors, ac- well as the government’s cording to the report. Most visitors are coming to see relations, the report found: “The plans to continue developing majority (54 percent) of domestic visits were carried out for the pur- Georgia as a premier, all- poses of visiting friends/relatives, followed by 11 percent for shopping trips, 10 percent for health and medical care, and 8 percent for year destination. Investor.ge holiday, leisure, and recreational purposes. All other types of travel summarized the main findings; made up 17 percent of domestic travel.” the complete report is available KPMG found that most visitors are opting to stay in hotels (65 percent), followed by hostels (18 percent) and apartment rentals at KPMG’s website, (11 percent). The report noted that in the peak season, hotels had www.KPMG.com/GE. an 84 percent occupancy rate in 2015, compared to 53.7 percent in the low season. Visitors are mainly travelling to Tbilisi and Imereti during their time in Georgia, the report said, citing data from the Georgian National Tourism Administration.
2025: “Premier, year-round, high-quality tourism destination” The report also highlighted the government’s strategy to develop the tourism sector in Georgia, with the goal of creating a “premier, year-round, high-quality tourism destination” by 2025: Create unique, high-quality visitor experiences; Improve air access from high-spending markets and internal transport networks to facilitate the free flow of visitors to and within the country; Improve data collection and market research capabilities in order to better ascertain the demands and preferences of higher- spending markets; Use the above research and marketing resources to more effec- tively target and communicate with these higher spending markets; Improve visitor services, from transportation to accommodation; In addition, the GNTA expects the number of international visitors to reach 11 million. It also expects the level of receipts from tourists to amount to USD 5.5 billion, representing a 6.7% contribution to GDP, and for the number of Georgians employed in the sector to increase by 85%, to reach 333,564.
32 | Investor.ge • june-july/2016 “Hotel Continent Cron Palace Tbilisi is ready and also High Expectations hopes that this year there will be even more demand for MICE tourism than before. The hotel has all the resources for all types of event services. In addition, we are optimis- for the 2016 tic that the number of both individual and group tourists will increase — and that there will be more tourists from Tourism Season many different countries, and Georgia will become an even more recognized destination for world travelers. “ Investor.ge asked members from the Hotel Continent Cron Palace Tbilisi hospitality sector about their expectations “Since Crowne Plaza Borjomi opened at the end for the upcoming tourism season. of December 2015 there is no previous-year data with which the performance of the hotel could be compared with. However, judging by demand, interest ,and already secured business, we are up for a successful first summer season.” Crowne Plaza Borjomi
“For the 2016 season Adjara Group Hospitality expects large groups of guests from Israel, Iran, and Russia. We will also gladly host a new segment at the soon-to-be- launched “Fabrika Hostel”. In addition, the group forecasts an intensified demand for conference spaces from the corporate side due to the upcoming elections this fall.” Adjara Group
“For 2016 tourism season, we hope that Georgia will be able to attract more tourists and business travelers from Europe. Unfortunately, until now, the awareness of country’s tourism and business capabilities are not ad- vertised or known to the majority of EU customers. Based on Georgia’s active development of tourism sector, it is essential to attract more travelers. “ River Side Hotel
“Considering the increased competition in recent years, we welcome the initiatives and promotional activi- ties of GNTA and the Government, and expect a strong boost for Georgia Leisure Tourism, as well as positive influ- ence on foreign investments and developing business tourism.” Tiflis Palace
“A twice daily flight from Tbilisi to Batumi is essential; so far in 2016 there have been none. Twice weekly Charter flights from Tel Aviv make it easier to get to Israel than the Georgian capital. Thankfully, the season is looking strong, with May delivering outstanding occupancy. We expect this season to October to be strong, with Leisure. MICE filling September and October.” Hilton Batumi
“We have strong expectations due to the overall growth of incoming tourist numbers, especially from neighbouring countries. Even though many hotels are under construction, supply is still limited. We expect an influx of Asian travellers due to Silk Road positioning of the country and the increasing support of the government in the development of tourism.” Shota Rustaveli
june-july/2016 • Investor.ge | 33 Tamara Megrelishvili that have had a lasting impact on internal Keeping work relationships. became interested in about moti- First, Georgian culture does not give Workers on the vational issues in SME (small-and extra weight to strategic planning and I medium-sized enterprise) culture a focuses on current problems rather than Job: The keys decade ago when receiving numerous future planning at work. A legacy of amounts of job applications at my fam- Georgia’s Soviet past is that companies for bolstering ily–owned business. I noticed that there rarely developed future strategies and was an established vulnerability in the only deal with the problems as they job satisfaction Georgian business sector due to a lack of emerge. labor resources, wage competition and Second, many issues arise in at- the market’s small size. It was not hard tempting to formulate healthy teams in at Georgian to notice that small organizations were a manner that disregards individualistic struggling to find the best motivational goals. Georgian culture has the natural SMEs incentives to reduce employee turnover. tendency to build teams, which assign Businesses mostly lacked skilled labor collective interests to individuals as their While writing her and their HR departments were having responsibilities. Master’s thesis on trouble keeping employees happy while Another issue is the tradition of organizational complying with organizational demands. rule breaking and violating disciplinary culture in Georgian It was clear that Georgian companies norms inside of an organization, which businesses, Tamar needed to understand how to motivate disrupts company procedures, policies, Megrelishvili, the human capital in order to reach their and performance. In Georgian society, full potential. executive director the most popular manager is the one who fights regulations and allows more of Prospsero’s A new approach to freedom. Books and founder motivation management All of these issues create a complex of Prospero B, SME sustainability can be improved work environment. It is challenging to found businesses by implementing long-term labor strate- identify and apply the proper motivation. were struggling gies in Georgia but there is a challenge: But companies that fail to do so struggle to understand the gaps exist between Western management to develop to their full potential. motivational issues principles and Georgian local practices. influencing people The vacancies at Georgian companies What do Georgian are filled by reducing employee turnover employees want? both at work and and implementing retention programs Retention programs can help moti- while applying for that do not affect employee motivation vate staff to complete tasks that bring jobs. or job satisfaction, which is why using extrinsic and intrinsic rewards. For in- Western management methods and theo- stance, a career is sometimes considered ries often fail in Georgian companies. an extrinsic motivation due to (money, In addition, Georgian managers are not rewards, status) but it can also be intrinsi- familiar with the root causes job (dis) cally motivating, if it creates enjoyment satisfaction, and public opinion also and job satisfaction. holds that increasing income or status Extrinsic rewards– both in terms of yields improved performance. forms of rumuneration (compensation, benefits, rewards) or benefits (recogni- Individualism vs. tion status, merchandise and travel) – are Collectivism typically used as a scorecard to measure There are different factors and issues the degree a company appreciates an
34 | Investor.ge • june-july/2016 employee. However, intrinsic motivation of extrinsic and intrinsic motivations in gian culture requires different human can be the most powerful motivator. the Georgian companies: management resource techniques and bonus-system Georgian managers put a lot of focused on the rate of retention rather approaches. thought into employee retention strat- than job satisfaction. Second, another aspect that influ- egies but fail to apply different mo- To gain an understanding of their ences Georgian organizations is the tivations to the different stages of an underlying motivations and rationales, cohesiveness of the collectivist culture. employee’s career. It is important for the respondents were asked additional Many Georgian employees at SMEs management to understand what their questions to have them describe how desire to work in a company as a part of employees want. they view themselves as employees as “good” teams, and prioritize that over So, what do Georgian employees well as their preferences in terms of team high-salary and stable work. Third, and managers prefer in the long run? members and bosses. demographic factors and need play a Extrinsic motives (salary, prestige, Out of the young respondents, 22 large role in Georgia. The difference status) rather than intrinsic motivators percent focused on their sociable and between goals and motive depends on (recognition, a sense of accomplishment) communicative skills while 51 percent age. Senior employees prioritize their due to the economic conditions in the described themselves as lazy. Mid-level financial rumuneration, while Georgian country? Or both intrinsic and extrinsic employees said they characterized them- young applicants give priority to being motivational incentives? selves as responsible and hardworking. part of a motivated team and place less They also said they wanted to be part of emphasis on financial reward. Salary vs job satisfaction In conclusion, Georgian culture Employee motivations were exam- SME sustainability can be has strong characteristics in terms of ined through questionnaires. 172 orga- masculine, in-group collectivism with nizations (161 small-and medium-sized improved by implementing significant internal cohesiveness. This enterprises and 12 large organizations) long-term labor strategies factor has a tendency to formulate were chosen from private and public natural interpersonal relationships. Such sector organizations. in Georgia but there relationships propagate group security Also, 3000 job seekers, SME em- is a challenge: gaps (stability) rather than the goal of the ployees and top or mid-level managers organization or individual interests. participated in this questionnaire. Among exist between western Furthermore, employees view extrinsic them, 81percent were women and 19 and intrinsic motivators differently at dif- percent were men. Nearly half – 43 management principles and ferent ages. At an early professional age, percent – of the respondents had never Georgian local practices. belongingness and love (as extrinsic) and worked, while 57 percent had previous self-realization (as intrinsic) are the pri- work experience. ority; whereas later in their professional The interviews showed that Georgian a “good team” – happy, communica- development, employees better relate to companies focus on extrinsic motives tive co-workers with strong internal financial and recognition incentives for to retain employees, particularly sala- relationships. motivation. It is a misconception that fi- ries, but that falls short of employees’ All the respondents wished to work nancial motivation is the dominant factor expectations. with fair and professional manager with in Georgian organizational culture. The Despite high salary and motivational a supportive, good attitude. Other moti- findings revealed that both extrinsic and programs, some managers complained vators, including those related to “Stable intrinsic motivators are equally moti- that they could not achieve the engage- Work”, “High Salary” and “Location of vating for employees and valid if used ment level and job satisfaction they Workplace” were in least important pri- together. Only a strategy built on equal desired among the employees, while orities for the young potential employees. extent of usage of extrinsic and intrinsic others noted that focusing on intrinsic This explains several factors that af- motivation can resolve motivational motivations at the workplace gave rise fect Georgian organizational behaviors. issues in organizations and, in the long to equity issues among employees. This First, since Georgian organizational cul- run, led to happier and more productive situation is an indication of the imbalance ture mirrors the national culture, Geor- employers and employees.
june-july/2016 • Investor.ge | 35 Merab Abramishvili, An Artist and His Tigers
36 | Investor.ge • june-july/2016 An exhibition at the Museum of Modern Art honored Merab Abramishvili, one of Georgia’s most unique and influential painters, whose artwork features in collections around the world.
june-july/2016 • Investor.ge | 37 recollects Baia Tsikoridze, an art histo- rian, gallerist, and the artist’s long-time friend. “He used to go to the Tbilisi zoo and stare at the tiger for hours, lost in its wild beauty. Once he tried to embrace it and his sweater ended up in shredded,” smiles Tsikoridze, whose portrait Abra- mishvili painted in the early 1990s.
Georgian Frescoes’ Magic Born in 1957 in Tbilisi, Abramishvili was well-versed and steeped in Oriental mysticism, paganism, and medieval Christianity, and created a vast range of work seeking to synthesize these varied spiritual experiences. He explored them all over again, producing various ren- derings of the Paradise, the Garden of Getsemani, the Arcangel Gabriel, as well as various scenes of Christ’s life and his beloved beasts. His father, Guram Abramishvili, was an expert in Georgian medieval art at the Museum of Fine Arts in Tbilisi and exposed Merab to Georgian frescoes, Oriental antiquities, and Persian minia- tures from an early age. He studied the Merab Abramishvili frescoes of the 7th century Ateni Sioni Abramishvili loved untamed beasts – in his Church near Gori, and was deeply fas- cinated by them. As he started his formal mind, panthers, leopards, and tigers were education in the early 1970s, Alexander mystical creatures of unparalleled elegance. Bandzeladze, one of the Soviet Union’s leading artists, encouraged the young Merab to develop his own style. He cer- Monica Ellena – in his mind, panthers, leopards, and tainly did – Merab went on to create a tigers were mystical creatures of un- unique visual language and transported to slender, majestic tiger is set paralleled elegance, in his canvas their canvas and plywood the gesso technique against a lush, exotic garden savage strength would fuse with divine from the frescoes he loved. He would Awith elaborate lace-like foliage beauty. The Georgian painter read early hand prepare the plastered grounds and – its gaze wandering into the distance, its on the “Maneaters of Kumanon,” a book paint it with tempera, washing it off and mauled victim lying at its feet, lifeless. in which hunter-naturalist Jim Corbett repainting the surface several times – the The Maneater of Kumanon is one of details his life in the Kumanon region translucent color palette and the resulting Merab Abramishvili’s most magnificent of India from the 1900s to 1930 while dream-like became his trademark. works, one of many in which the late hunting man-eating tigers and leopards. “He was a perfectionist; he would Georgian artist painted, expressing his And Abramishvili was deeply impressed totally lose himself in his art while caught wonder with wild animals. by the book. “Merab loved that book and in his creative impetus. He was also a Abramishvili loved untamed beasts all his life dreamed to travel to India,” sensitive soul who struggled with life’s
38 | Investor.ge • june-july/2016 challenges, and sought refuge in the mys- better future.” essentially vary between $6,000 and tical imaginary,” explains Tsikoridze. $30,000,” explains Tsikoridze, who, At the end of the 1980s, the So- Renewed Success along with the artist’s family, organized viet Union started descending toward In the rough-and-tumble decade of the most comprehensive exhibit of Abra- its meltdown – political, social, and the 1990s, selling works of art was not mishvili’s work. The exhibition helped economic instability surfaced and be- enough to earn a high income, and Abra- track down unknown work – about 40 came paramount in the 1990s in newly mishvili paintings would sell for less than percent of the paintings included in the independent Georgia. Art critic Nino $1,000. Those times are gone. In 2013, catalogue were a surprise for the curator, Shervashidze wrote that “the generation the auction house Sotheby’s organized since they came from private collections. of the artists from the 1980s juxtaposed “At the Crossroads,” its first exhibition “My family owns many paintings and their own constructed worlds against focusing on the post-Soviet orbit’s art: we receive requests from collectors very aggression, political instability, and Abramishvili’s Maneater of Kumanon often, but we don’t sell them,” Levan socio-economic uncertainty. Perhaps as was sold at a stellar GBP 35,000 (USD Abramishvili, the artist’s son, explained a result of such escapism, painting in 50,272). The following year, the auction to Investor.ge. Levan is a painter himself, Georgia experienced a revival not seen house placed Abramishvili’s Piano at as is his sister Ketevan. since the 1960s. Abramishvili’s practice GBP 25,000. “We sell them only through auctions, can therefore also be read as a type of “Prices depend greatly on the paint- as they help to strengthen his name and resistance of hopefully striving for a ing’s size and the period, but they can popularity.”
june-july/2016 • Investor.ge | 39 NEWS
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AmCham in 42 Washington
44 Tsulukiani Details Justice, 45 Happy Hour with AmCham! Rule of Law Reforms 46 New Members 44 Chamber Hosts US Strategic Partnership Chairs 48 Member Profile: TBC Leasing
44 Education Minister Spells out 49 Member Profile: RSM Reforms 50 Member Directory 45 IRI’s Andrea Keerbs Presents Latest Political Polls 54 Social: Georgian Independence Day 45 Tourism Committee Open to All Hospitality Members 55 Social: AmCham Happy Hour
45 Rusudan Kbilashvili to lead 56 Board of Directors CSR Committee
40 | Investor.ge • june-july/2016 NEWS
june-july/2016 • Investor.ge | 41 NEWS
AmCham trip to DC to mark the 25th Anniversary of Georgian Independence
From the 23rd to the 26th May, the in the region. Following on from this, the President Michael Cowgill. It included American Chamber of Commerce in group discussed the need for continued George Welton, Executive Director of Georgia took a delegation of US compa- US support for Georgia and suggested a AmCham, Chris Schleuter, BP Head nies to Washington DC to mark the 25th range of ways in which this support can of Country, Georgia, Andrew Coxshall, Anniversary of Georgian independence. be expanded. Managing Partner, KPMG, Georgia, The purpose of the meetings was to give As Sarah Williams, President of Ken Walsh, Dean of San Diego State think-tanks and legislators in Washington AmCham, pointed out, ‘We felt that it University, Georgia and Nicola Mariani, the perspective of businesses in Georgia. was important to travel to Washington at Partner, Dechert. The group highlighted the incredible suc- this time to help ensure that the Georgia The delegation had 47 meetings in cesses that Georgia has achieved in the success story is not overshadowed by the 4 days, including meetings with think last 25 years, and its continuing trajec- other problems in the region. We wanted tanks, the State Department, the Office of tory of impressive reforms. In particular, to stress that not only does Georgia con- the US Trade Representative, Congress they used the trip to highlight that in tinue to be the best reformer in region and Senate. We even met with former US economic reforms, democratic develop- but it is also America’s most reliable ally Secretary of Defense, Donald Rumsfeld, ment as well as market and Western- and supporter’. who is bringing over 100 Rumsfeld Fel- orientation, Georgia remains the lead The delegation was led by AmCham lows to Georgia in June. The level of reformer and America’s key strategic ally President Sarah Williamson and first Vice interest in our trip was so high that the
42 | Investor.ge • june-july/2016 NEWS
group had to split into two so that we could meet enough people in the time. ‘The Representatives and staffers, both in the house and in the Senate, were extremely interested to hear the perspec- tive of US businesses in Georgia. We went with the desire to help draw more attention to Georgia and found a willing audience of legislators who were eager to help’, said George Welton, Executive Director of AmCham. Of course, the focus of our discussion was on economic and business issues. The Representatives were particularly interested to hear about Georgia’s con- tinuing work to develop its status as a Silk Road Hub and with the DCFTA implementation moving forward, as an access point to the EU. We, of course, highlighted the important role of US Meeting with Susan Davis, Representative California companies in this development includ- ing with the improvement of pipeline, hosting them in the near future. Finally, we stressed our willingness road, port, electricity distribution and We also used our trip to support legis- to act as a resource to US legislators and transmission infrastructure. lators on the US-side. Representative Poe Georgia-interested researchers. We were We highlighted the importance of ex- and Representative Connolly, who head told by many that we were considered a isting US-support, from the US Embassy, the Georgia Caucus, have put forward valuable source of information, as US- USAID, the Millennium Challenge Cor- House Resolution 660. This resolution companies, because we have a politi- poration, Department of Commerce and condemns Russia’s military intervention cally unbiased, long-term and close-up many others. But we also highlighted of Georgia and calls Russia to withdraw understanding of what is happening in how crucial cultural and educational and fulfill the terms of the August 2008 the country. relations have been and continue to be, Ceasefire agreement. In all of our meet- We, therefore, intend to maintain through educational exchanges like Flex, ings we encouraged representatives to these connections and continue our dis- Muskie, Ugrad and Fullbright, military sign the legislation and, with our support, cussions in the future, and feel that we training and the on-the-ground engage- the resolution secured enough signatures could become a key source of informa- ment of Peace Corps and others. that it was able to move through the com- tion for Americans trying to understand In addition, we pointed out that mittee process. Georgia. America needs to maintain continued high-level connections at a government level. As everyone in Georgia knows, Georgia looks better ‘close-up’ so we strongly encouraged the Representa- tives to visit Georgia as an expression of support, to allow us to show Georgia’s famous hospitality and in order to see the successes close-up. Quite a few of the Representatives we met said that they would visit and we look forward to
Meeting with Luke Murray, Foreign Policy Advisor to Representative Ted Poe Texas june-july/2016 • Investor.ge | 43 NEWS
Tsulukiani Details Justice, Rule of Law Reforms
AmCham Georgia hosted a Member luncheon with Minsiter of Justice Thea Tsulukiani on April 6, at Radisson Blu Iveria Hotel. Ms. Tsulukiani presented a summary of the historic and ongoing judicial and rule of law, reforms that have taken place since the Georgian Dream Coalition came to power. She particularly empha- sized the importance of the separation of government and politics that she has strived to create. The Minister also informed attending member company representatives about recently opened Public Service Halls in the regions of Tbilisi and invited attendees to come to future openings. The presentation was followed by a lively Q&A between members and the Minister.
Chamber Hosts Education Minister Spells out Reforms U.S. Strategic Partnership Chairs
On 11 April 2016, AmCham Board of Directors hosted a dinner with the Co-Chairs of the Economic, Energy, and Trade Working Group under the Georgia-U.S. Charter on Strategic Partnership, Principal Deputy Assistant Secretary of State Kurt Tong and Assis- tant Administrator of the U.S. Agency for International Development (USAID) Then-Education Minister Tamar meeting with a political- and economic- Thomas Melia. Sanikidze discussed the latest reforms environment review. Ms Sanikidze also The meeting was also attended by with AmCham members at the monthly spoke about public -private partnership Science and Technology Adviser to the roundtable meeting at Tbilisi Marriott in education sector. Secretary of State Vaughan Turekian Hotel on May 18, 2016. Both presentations were followed and US Embassy and USAID represen- Nicholas Berliner, Deputy Chief of by dynamic Q&A between AmCham tatives. Mission of the US Embassy opened the members and the presenters.
44 | Investor.ge • june-july/2016 NEWS
IRI’s Andrea Keerbs Presents Political Polls
AmCham Georgia hosted a Member luncheon with Andrea Keerbs, Georgia Resident Country Director for the In- ternational Republican Institute (IRI) on May 3, at Holiday Inn. Ms. Keerbs presented about IRI’s Georgia Public Opinion Survey, March 12–April 2, 2016. The poll includes questions on a range of social and public policy issues, including the economic welfare, corrup- tion perceptions, government reforms, etc. The poll also aims to measure the support of political parties in today’s society. AmCham members asked ques- tions and debated about the survey results following the presentation.
Tourism Committee Happy Hour with AmCham! Open to All Hospitality On April 14 AmCham hosted Ken- OPIC loan and the opportunity that it can Members neth Angell, Director of the Finance represent to qualified members. The AmCham Tourism Committee Department of the Overseas Private The presentation was followed by a decided to open the group to all members Investment Corporation (OPIC), who Cocktail Happy hour, where members who work in hospitality business at the prsented on the topic of OPIC’s activities had an opportunity to reconnect with May 6 meeting. The Chair of the Com- in Georgia, the process of applying for an each other. mittee Andreas Heidingsfelder encour- aged the discussion to identify new chal- lenges and the ways of resolving them.
Rusudan Kbilashvili to lead CSR Committee Rusudan Kbilashvili, from the Wis- sol Group, was named CSR Committee Chair at the May 19 meeting. The Committee is now focusing on three issues: - environmental issues (particularly waste, recycling and trash clean-up) - volunteerism - disability employment
june-july/2016 • Investor.ge | 45 NEWS
GMS Ltd. Orient Logic Ltd. Action Global Continent Cron Palace Corp A Corp A Communications Hotel Tbilisi GMS Group is a group of Orient Logic offers wide Georgia (Action Corp B health care companies. Main range of enterprise servers and Georgia) Continent Cron Palace Hotel directions are medical supply server solutions from world lead- is located in the picturesque and technology distribution; ing manufacturers such as DELL, Corp B central district of Tbilisi – Ort- turn key projects, operation and HP and SUN. View specifications Action Global Communica- achala. Cron Palace will open tions is a strategic communications management of hospital sector. and choose the correct server you wonderful views of Tbilisi. consultancy established in Nicosia, www.gmsgroup.ge configuration based on your ap- Restaurant, bars, spacious spa- plication and server environment Cyprus, in 1971. The company net- work links more than 40 countries center, that includes swimming using convenient tools & links. pool, sauna, hamam and sport www.orient-logic.ge in Central and Eastern Europe, the Balkans, the Baltics, Russia, the CIS complex – these are just few countries, Central Asia, the Middle places at the hotel that give East, North Africa and the Eastern you the opportunity to relax dur- Mediterranean. The Georgian ing your stay in Georgia. Highly branch of the company was professional team is always at established in 1996 as one of the the guests disposal. first PR agencies in the country. The www.cronpalace.com company prides itself as leader in the evolution of the local com- munications industry, being the first agency to introduce press release distribution and media relations and events as a means for local companies to connect with audi- ences. The team has longstanding and widespread relationships with local media, and is a respected source of newsworthy informa- tion. Years of experience in the local market mean that Action Georgia is best placed to offer clients comprehensive strategic communications campaigns that will help to achieve their busi- ness objectives. Furthermore with intimate local knowledge and insight into the Georgian market, the company is well placed to develop comprehensive strategies that capitalise on the rising popu- larity of the internet, social media and digital platforms.
Since 2013 Action Georgia is contracted by the European Com- mission to implement the Com- munications Unit for European Neighbourhood Programme for Agriculture and Rural Develop- ment (ENPARD) in Georgia. The goal of the project is to inform Georgian citizens and the interna- tional community on EU support to and achievements in agriculture and rural sector reform in Georgia, as well as on alternative develop- ment and improvement of liveli- hoods in rural areas through the ENPARD programme. For more information visit www.enpard.ge. www.actionprgroup.com new mem b ers
46 | Investor.ge • june-july/2016 NEWS new mem b ers
Gloria LLC LSG Ltd. (Taxi Prius) Shota@Rustaveli Alliance for Corp B Corp B Boutique Hotel Progressive The hotel “Tiflis Palace” offers Taxi Prius company was Corp B Healthcare to the guests the opportunity to founded in 2009. Each stage in Set in the center of Tbilisi few NP enjoy the unique combination the development of the compa- steps away from the Rustaveli of facilities and advantages ny sought a customer-oriented The members for APH in- Avenue, Shota@Rustaveli Bou- clude: individual professional, one can offer in Tbilisi. Only “Tiflis steps. At this point a taxi Prius is tique Hotel offers exceptional Palace” features all in one: the fastest growing company pharmaceutical distributors, experience to its visitors, 38 stylish hospital groups and standalone - an ideal location in the in its segment. In November rooms are designed to ensure heart of old city center - the 2014, fleet was equipped with clinics, pharmacy chains and the comfort and tranquility. The E-medica as an electronic com- hotel is located in the legend- “HALLE” - the latest accounting state of the art fixtures and exqui- ary place of city’s foundation, systems, which allows for maxi- merce for medicines and medi- site room amenities allow gusts to cal disposables. APH will use best just next to the famous Sulphure mum control of each trip and a enjoy every moment spent in the Baths, and is surrounded by the tariff accuracy. Allows the user practices from the developed room. Restaurant Il Melograno countries’ healthcare industries most important tourist attractions to travel to and interpreted in and a SPA with small indoor pool and popular entertainments; accordance with the require- to make pharmaceutical goods creates perfect urban retreat in and services more affordable for -the best picturesque and ments of the report provided the heart of business and cultural breath-taking views - the ho- to the customers. At this stage, the Georgian people. In addi- center of Tbilisi. tion, it is APH’s goal to come up tel features the most beautiful the company owns 40 cars. The www.theshota.com and stunning panoramic views company owns only Prius Toyota with the initiatives to improve the available in Tbilisi, presenting vehicles, the color yellow, our current legislation in Georgian to the guest an unforgettable brand-specific packaging. 2017 healthcare industry. All of the picture of the ancient city with is planned to open in the repre- APH’s actions are aimed at help- its labyrinths of narrow streets sentation in Batumi, it will be the ing the current Georgian health- and old style Georgian houses first phase of the company’s care business environment more with wooden balconies, beauti- presence in all major regions of fair and competitive. ful riverside of Mtkvari, historical the establishment. and cultural heritages like the https://www.facebook.com/ Narikala Fortress, the Metekhi TAXI-PRIUS-591539254219760/ Church and the famous Sulphure Baths combined with examples of modern architecture such as the Peace Bridge, the Presiden- tal Residence and the House of Justice; Women Wellness Care - international standards of service quality; Alliance Hera - attentive professionals with NP a passion of hospitality. Women Wellness Care Alli- www.tiflispalace.ge ance HERA is a nonprofit orga- nization established by women health professionals in 2000. Their vision is to see breast cancer eliminated as a life-threatening disease. HERA is a driving force to bring breast cancer early awareness, early detection and screening, and psychosocial support to every woman who deals with breast cancer. In Georgia, HERA pioneered the breast cancer footrace to bring public attention to breast can- cer and eliminate stigma around this disease. www.georgiarace.com
Mr. Donohue, Colin Individual
june-july/2016 • Investor.ge | 47 NEWS
to be launched throughout upcoming years. TBC Leasing regularly publishes success stories of their clients on their own web-page (http://tbcleasing.ge/ge/ our-projects). Behind the success of the leasing company stands a motivated, talented and success-oriented young team. Con- Leasing is a multi-billion industry in stant investment in their employees’ new office the modern world. 80% of companies personal and career development is the in developed countries use leasing as key to achieving all goals. By now TBC for TBC a source to invest in fixed assets. Even Leasing holds 72% of the leasing market though the business emerged a decade and is growing its portfolio annually. The leasing ago in Georgia, it is already developing company faces a lot of challenges and dynamically. According to 2015 data, always strives for innovation and the the Georgian leasing market portfolio development of new products. has reached more than 115 million GEL As long as demand for their flex- which is a 450% growth since 2010. ible products is growing and small and More and more SME companies pur- medium business units are developing, chase equipment, cars, trucks or other more and more resources are needed to assets through leasing. adequately meet the demand. TBC Leas- TBC Leasing is serving up to 600 ing is the team of more than 40 people, clients and managing more than 1,300 and, therefore, a new office became a contracts signed with them. Sectors fi- pleasant necessity for several reasons: nanced by the company cover medicine, creating a comfortable and relaxing light industry, printing, transportation, working atmosphere for employees and food and beverages production, service, offering more space for meeting with trade, construction and agriculture all clients and partners. Thus, TBC Leasing over Georgia. Even though the clients’ moved to a new office on Chavchavadze list includes many large companies, Ave. 80 with a grand opening ceremony the main mission of TBC Leasing is to on the terrace of the new building. make it easy for small and medium-sized The new marketing strategy is ori- enterprises to invest in capital assets. ented on as much direct communication That is why the company is actively as possible. Events are planned in the participating in government projects, like capital city and regionally throughout “Produce in Georgia.” On the other hand the year with the aim to meet potential it has simplified car-financing procedures clients, offer the leasing services and and thus has improved partnerships with build new partnerships gradually. Invit- almost all official dealers in Tbilisi. ing clients, vendors, partners and stake- By now any new car can be purchased holders to the office opening ceremony in just a day by both individuals and – their first ever big event – was the first legal entities. Even more products are successful step to fulfilling this strategy.
48 | Investor.ge • june-july/2016 NEWS
According to recent worldwide together firms that perform transnational market research, RSM showed a 6% audits and involving them more closely increase in global fee income, to USD with IFAC’s activities in audit and other $4.64 billion, for the financial year assurance-related areas. ending 31 December 2015 and became RSM’s firms are here to advise cli- the 6th largest global network of inde- ents on a wide range of issues including pendent audit, tax and consulting firms. audit and assurance, consulting, tax, Its membership consists of a number of risk advisory, IFRS, restructuring, IT, firms that are within the top 5 in their transaction and business and financial the Sixth market including the 5th largest firm in advisory solutions. As well as these the U.S. (formerly McGladrey), and the core services, RSM Georgia also offers largest 3rd largest in China. RSM encompasses a wide range of specialist services, such over 120 countries, 760 offices and more as legal advisory, wealth management global audit, than 38,300 employees internationally. and evaluation services. In addition, RSM is recognized for a passionate focus just recently the company has launched tax and on collaboration, deep understanding of a sub-brand, RSM Georgia Solutions, what matters most to clients, and insight which is focused on IT consulting. It is consulting sharing by senior partners. worthwhile to mention that RSM Georgia RSM Georgia (formerly RSM Capto) Solutions has already become the first service with eight years of experience in the local certified partner of SAP Business One tax, audit and consulting market consists in Georgia. It will enable RSM Georgia of four offices and 70 professionals. Solutions to offer and implement SAP’s provider On October 26, 2015, RSM Capto was business management software, designed rebranded to “RSM” and adopted a new for small and medium-sized enterprises visual identity alongside its fellow mem- on local market. Wherever you are in the bers all over the world. A single unified world, you will enjoy the same seamless global brand enables RSM to better com- service, combining astute local knowl- municate its strengths and global service edge with the global expertise of RSM’s capabilities as the adviser of choice to most senior professionals. entrepreneurial, growth-focused organi- RSM actively engages in promoting zations. RSM’s new look and feel was and celebrating the very best in entre- designed by the leading global branding preneurship and business leadership, company, Landor. In Georgia, RSM’s championing the role of the entrepreneur rebranding as well as local communica- in today’s world economy. RSM is the tion campaign planning was done by the lead sponsor and corporate champion of marketing partner company BRANDOR the European Business Awards (EBA), Consulting. promoting commercial excellence and RSM is a member of the Forum of recognition of entrepreneurial brilliance. Firms. The objective of the Forum is RSM Georgia is eager to support Geor- to promote consistent and high-quality gian companies to participate in the EBA standards of financial reporting and and showcase themselves alongside the auditing practices worldwide, bringing European Business Elite.
june-july/2016 • Investor.ge | 49 AmCham Company Members as of June 2016
PATRON MEMBERS Betsy’s Hotel / Prosperos Books Cushman & Wakefield - Georgian American University 32/34 Makashvili St. / Veritas Brown 8 Aleksidze St. 34 Rustaveli Ave. 6th floor, Block 10, Tel: 2206520; Fax: 2206519 Tel: 2987624, Fax: 2923592 71 Vaja-Pshavela Ave. www.gau.ge BP Exploration Georgia www.betsyshotel.com Tel: 2474849 24, S. Tsintsadze St. www.veritasbrown.com Tel: 2593400 www.bpgeorgia.ge Georgian Logistic Group Ltd. BHP International 12 G. Kuchishvili St., 0179 Tel: 2422424 Office 305, 3rd Floor, Dechert Georgia LLC 2 Baratashvili St. www.glg.ge KPMG Georgia LLC 7th floor, Pixel building, Tel: 2103207 3rd Floor, Besiki Business Center, 34 Chavchavadze avenue www.bhp-int.com 4 Besiki St., 0108 Tel: 2334719 Tel: 2935713; Fax: 2982276 www.dechert.com GMS Ltd. www.kpmg.ge Digomi District, Area 25, 0159 Tel: 2644101 British American Tobacco www.gmsgroup.ge 71 Vazha Pshavela Ave. Deloitte Tel: 2157500/01/02; Fax: 2157503 PricewaterhouseCoopers 36a, L. Asatiani St., 0105 www.bat.com 7 Bambis Rigi St., 0105 Tel: 2244566; Fax: 2244569 Tel: 2508050; Fax: 2508060 www.deloitte.ge www.pwc.com GMT Group 4 Freedom Square Tel: 2988988; Fax: 2988910 Catoni & Co. Georgia www.gmt.ge 7 Dzmebi Zubalashvilebi St. UGT Apt.22/23 Diplomat Georgia 17a Chavchavadze Ave., 7th floor Tel: 2989230; Fax: 2922264 65, Kakheti Highway Tel: 2220211; Fax: 2220206 www.hapag-lloyd.com Tel: 2984950 www.ugt.ge www.diplomat.ge Gosselin Moving Georgia 3 M/D, Didi Digomi Tel: 2596601/02/03; Fax: 2596600 www.moving.gosselingroup.eu Caucasia Trading CORPORATE A MEMBERS Apt 11, Bld 7, 16 Krtsanisi St. DLA Piper Georgia LP Tel: 14433050083; Fax: 10 Melikishvili St. 14433788388 Tel: 2509300; Fax: 2509301 Grant Thornton LLC AECOM Georgia LLC www.caucasiatrading.com www.dlapiper.com 61 D. Aghmashenebeli Ave. 34, Chavchavadze Ave. Tel: 2604406 Tel: 555603200 www.grantthornton.ge www.aecom.com Caucasus University EY Georgia 77 Kostava St., Bld.6, 4th fl. 44 Kote Abkhazi St. Tel: 2377777; Fax: 2313226 Greco Group Alliance Group Holding, JSC Tel: 2439375; Fax: 2439376 www.cu.edu.ge 1 Nutsubidze St. 47/57 M. Kostava St., 0179 www.ge.ey.com Tel: 2393138; Fax: 2311107 Tel: 2424181; Fax: 2998112 www.greco.ge www.agh.ge
CH2M Hill F H Bertling Georgia Ltd. 5th Floor, GMT Plaza, Room 3, 4th Floor, Ameriacan Hospital Management GT Group Freedom Square 154 Agmashenebeli Ave. Company (AHMC) 48 B. Cholokashvili St. Tel: 2474040; Fax: 2470210 Tel: 2252287 6 U. Chkheidze St., 0102 Tel: 2740740 www.ch2m.com www.bertling.com Tel: 577007012 www.gtgroup.ge www.americanhospitalmanagement.com
Chemonics International GULF Georgia 5, 2nd Blind Alley, Chavchavadze St. FINCA Bank Georgia 71 Vazha-Pshavela Ave. 3rd fl. by Sun Petrolium Georgia LLC Tel: 2234311; Fax: 2234309 American Medical Centers, Tel: 2244949 Pixel Business Center, www.chemonics.com Georgia www.finca.ge 34 Chavchavadze Ave. 12 Arakishvili, Tbilisi, 0179 Tel/Fax: 2496444 Tel: 557313707 www.gulf.ge www.amcenters.com Colliers International Georgia LLC Frontera Resources Georgia 12 Paliashvili St. 37/39 Kostava St., Hilton Batumi Auto Service Caucasus Tel: 2252412 Grato Business Center 7th Floor 13 Takaishvili St., Batumi 5 Shalikashvili St. www.fronteraresources.com Tel: 2224477 Tel: 292092 Tel: 2208080 www.colliers.com www.precisiontune.com www.hilton.com
Georgian American Alloys, Inc. Avon Cosmetics Georgia LLC Construction Service LLC 200 S Biscayne Blvd Suite 5500, Iberia Refreshments, JSC 117 Tsereteli Ave. 2 Gen. Mazniashvili St., Rustavi Miami FL 33131 USA Tetri Khevi Hesi District, Orkhevi Tel: 2226805; Fax: 2226806 Tel: (599)500559 Tel: (1)3053757560 Tel: 2241091; Fax: 2241090 www.avon.com www.cs.ge www.gaalloys.com www.pepsi.ge
50 | Investor.ge • june-july/2016 IG Development Georgia Ltd. PepsiCo Wimm-Bill-Dann West Invest Ltd. Basel LLC 47/57 Kostava St. Village Ponichala, Tbilisi 0165 13a Lortkipanidze St. 49 Krtsanisi St. Tel: 2987589 Tel: 2475290 Tel: 2997275 Tel: 2550110 www.igdevelopment.ge www.wbd.ru www.west-invest.ge www.krtsanisi.com
Philip Morris IMSS Ltd. 1 Tabidze St. Basis Bank JSC 10a Bakhtrioni St. Tel: 2439001; Fax: 2439005 CORPORATE B MEMBERS 1 Ketevan Tsamebuli Ave. Tel: 2920928 www.philipmorrisinternational.com Tel: 2922922; Fax: 2986548 www.imss.ge www.basisbank.ge Action Global Communications ProCredit Bank Georgia (Action Georgia) 154 Agmashenebeli Ave. App. 3, 84a Paliashvili St., 0165 Kavkaz Cement JSC Batumi International Container Tel: 2202222; Fax: 2202222-2226 Tel: 2220426 29 Andronikashvili St., 0189 Terminal www.procreditbank.ge www.actionprgroup.com Tel: 2619090 11, Baku Street, 6010, Batumi www.kavkazcement.ge Tel: 422 276452 www.bict.ge Radisson BLU Iveria Hotel 1 Rose Revolution Sq. Adjara Group Hospitality Maersk Georgia LLC Tel: 2402200; Fax: 2402201 1, 26 May Sq., 0179 6 Khetagurov St. www.radissonblu.com Tel: 2300099 BDO LLC Tel: 2200800; Fax: 2200815 www.adjaragroup.com 2 Tarkhnishvili Str. www.maerskline.com Vere Business Centre, 0179 Ronny’s Ltd. Tel: 2545845; Fax: 2399204 3 Apt., 3 Vazha-Pshavela Ave. www.bdo.ge Tel: 2472472 Air Astana Airlines JSC Marriott Hotels, Resorts & Suites www.ronnyspizza.com 5th Floor, Pixel Business Center, 13 Rustaveli Ave. 34 Chavchavadze Ave. Tel: 2779200; Fax: 2779210 Tel: 2514999 BGI Advisory Services Georgia www.marriott.com www.airastana.com 18 Rustaveli Ave., II floor Savaneti 99 Ltd. Tel: 2997292; Fax: 2996615 Vilage Savaneti, Bolnisi Region www.bgi.ge Tel: 2605599 Meridian Express 15-17 Ketevan Tsamebuli Ave.0103 Aliance Georgia Ltd Tel: 2745188 33 Samurzakano St. SEAF Management LLC BLB (Business Legal Bureau) www.ups.com 7, Niko Nikoladze St. II Floor. Tel: 2243773 www.groupaliance.com 1 Shevchenko St, Apt.1 Tel: 2998115; Fax: 2923533 Tel: 2995797 www.seaf.ge www.blb.ge
Microsoft Georgia LLC 34 Chavchavadze Ave. Sheraton Metechi Palace Hotel Asseco Georgia Tel: 2970123 24 Mosashvili St. www.microsoft.com 20 Telavi St. BLC Law Office Tel: 2772020; Fax: 2772120 Tel: 2720901 4 Gudiashvili Sq. www.sheraton.com/tbilisi www.asseco.ge Tel: 2922491; Fax: 2934526 www.blc.ge M & M - Militzer & Munch Georgien, FedEx GSP SICPA Security Solutions 39 Ketevan Tsamebuli Ave. Georgia Aversi Pharma Tel: 2748240, 2748941 79 Chargali St., 0178 148/2 Aghmashenebeli Ave. BMC Gorgia www.fedex.com/ge Tel: 2434580 Tel: 2987860 140 Tsereteli Ave. www.sicpa.com www.aversi.ge Tel: 2960960 www.gorgia.ge
ModernRoofing Ltd. T&K Restaurants (McDonald’s 118 Tsereteli Ave. Georgia) Baker Tilly Georgia Ltd. Capital Bank Tel: 2356611 1 Dzmebi Kakabadze St. Meidan Palace, 44 Kote Abkhazi St. 1 Vertskhli St. www.modernroofing.ge Tel: 2921246; Fax: 2251422 Tel: 2505353; Fax: 2505353 Tel: 2428888 www.mcdonalds.ge www.bakertillyinternational.com www.capitalbank.ge
Oracle Ayazağa Mevkii Meydan Sok. TBC Group
Spring Giz Plaza Kat:11 7 Marjanishvili St. Bank of Georgia CaspiGroup Ltd. 3 Pushkin St. Maslak, Istsnbul, Turkey Tel: 2272727; Fax: 2228503 29 Bochorma St. Tel: 2444134; Fax: 2983269 Tel: 577500151 www.tbc.com.ge Tel: 2550818 www.bog.com.ge www.oracle.com www.caspigroup.com
TMC Global Professional Services Orient Logic Ltd. 6001 Indian School Road NE, Suite Bank Republic Caucasus Online LLC 8 Beliashvili St. 190, Albuquerque, NM 87110, USA 2 Gr. Abashidze St. 71 Vazha-Pshavela Ave. Tel: 2541818 Tel: (1 505) 8723146 Tel: 2925555; Fax: 2925544 Tel: 2480048; Fax: 2480048 www.orient-logic.ge www.tmcservices.com www.republic.ge www.caucasus.net
june-july/2016 • Investor.ge | 51 AmCham Company Members as of June 2016
Channel Energy (Poti) Limited GeoEngineering LLC Gloria LLC Interco Travel Holding Georgia LLC, By Petrocas Energy 15a Tamarashvili St. 3 Gorgasali St., 0105 36 Al. Kazbegi St. Group Tel: 2311788; Fax: 2311787 Tel: 2000245 Tel: 2294343 52, David Agmashenebeli St., Poti www.geoengineering.ge www.tiflispalace.ge www.intercontinental.ge Tel: (995493) 2-7-08-60 www.petrocasenergy.com
GM Capital LLC International Black Sea Château Mukhrani, J.S.C. Geomill LLC 2 Tarkhnishvili St., 0179 University Sangebro St. 4, Chirnakhuli St. Tel: 2912626 David Agmashenebeli Alley 13 km, Tel: 2201878; Fax: 2201878; Tel: 2400000 www.gmcapital.ge 2, 0131 www.mukhrani.com www.geomill.ge Tel: 2595005 www.ibsu.edu.ge
Citi & Co. Gvinadze & Partners LLC 4 Besiki St. 44 Kote Abkhazi St, 0105 Tel: 2920921 Georgian Airways Tel: 2438970, Fax: 2438971 JTI Caucasus 12 Rustaveli Ave. www.gvinadzeandpartners.ge VII Floor, Pixel Business Center, Tel: 2999730; Fax: 2999660 34 Chavchavadze Ave. Continent Cron Palace www.georgian-airways.com Tel: 2604111 Hotel Tbilisi www.jti.com 1 Kheivani St., 12/13 HeidelbergCement Georgia Tel: 2242321 18 Lermontov St. www.cronpalace.com Tel: 2474747 Georgian Beer Company www.heidelbergcement.ge Kordzahia, Jgenti Law Firm 3311 Saguramo, Mtskheta District 10 Petriashvili St. Tel: 2921878 Crowne Plaza Borjomi Tel: 2437770 Baratashvili Str. 9, 1200 Borjomi www.geobeer.ge www.kjlaw.ge Tel: 995 367 220260 Herbalife www.cpborjomi.com Bld. 4a Tamarashvili St., 0162 Tel: 2202929 www.herbalife.com KSB Bank 3 Ketevan Tsamebuli Ave. Crystal, MFO JSC Georgian Express Tel: 2550000, Fax: 2507707 72 Tamar Mepe St. Kutaisi, 4600 105, Tsereteli Avenue, 0119 www.ksb.ge Tel: 431253343 Tel: 2696060 www.crystal.ge www.dhl.com Hotels And Preference Hualing Tbilisi Hualing Tbilisi Sea New City, 0152 Leavingstone
Duty Free Georgia Tel: 2505025 12a Al. Kazbegi Ave. 3rd floor, 4 Besiki St., www.hotelspreference.ge Tel: 2105103 Besiki Business Center Georgian Hospitality Group www.leavingstone.com Tel: 2430150 22 Peritsvaleba St., 0103 www.dfg.ge Tel: 2987789 www.ghg.ge Hualing International Special Economic Zone Legal Partners Associated LLC Efes Brewery in Georgia - 25 Apt. 34/36 Kobuleti St. Office #203, Besiki Business Center, Lomisi JSC Tel: 591005900 4 Besiki St. 0108 Village Natakhtari, Mtskhta Region www.hualing.cn Tel: 2200203; Fax: 2250458 Tel: 2357225 Georgian Integrated Systems www.lpa.ge www.natakhtari.ge (GiS) Office 1, 85 Abashidze St., 0163 Tel: 2243724 Hydrolea LLC EVEX Medical Corporation www.gis.ge 11 A. Apakidze St. Liberty Bank JSC 40 Vazha-Pshavela Ave. Tel: 790420015 74 Chavchavadze Ave. Tel: 2550505 www.hydrolea.com Tel: 2555500; Fax: 2912269 www.evex.ge www.libertybank.ge
Georgian Resources Company Gebrüder Weiss LLC 3-5 Kazbegi St. ICS Ltd. TNT Agent in Georgia Airport Adjacent Territory, Tel: 2936676 25 Agmashenebeli Ave. LSG Ltd. (Taxi Prius) Kakheti Hwy www.georgianresources.com Tel: 2910220 42, G. Brtskinvale St. Tel: 2710011 www.tnt.ge Tel: 2131515 www.gw-world.com www.lemondo.com
GeoCapital Microfinance Geo Steel LLC IGroup Organization Ltd. 36 Davit Gareji St., Rustavi, 3700 197/24g Kazbegi Ave. Luca Polare 5 Tsereteli St, Kutaisi Tel: 2243794 Tel: 2308483 54 Oniashvili St. Tel: 431 267070 www.geosteel.com.ge www.igroupgeorgia.com Tel: 2990399 www.geocapital.ge www.lucapolare.com
Geocell ILF Beratende Ingenieure ZT 3 Gotua St. Globalink Logistics Group GmbH Branch in Georgia Mercure Tbilisi Old Town Tel: 2770100, ext. 7435; 14-A Shartava St, 2nd fl, Suite 7 15 Tamar Mepe Ave. 9 Gorgasali St., Old Tbilisi, 0105 Fax: 2770119 Tel: 2253262; Fax: 2439002 Tel: 2199453 Tel: 2006060 www.geocell.ge www.globalinkllc.com www.ilf.com www.mercure.com
52 | Investor.ge • february-march/2016 Mgaloblishvili Kipiani Dzidziguri Policy and Management Sakcable JSC Alliance for Progressive (MKD) Consulting Group (PMCG) Suite 414, 19 Gamrekeli St. Healthcare Office 24, 71 Vazha-Pshavela Ave. 61 Aghmashenebeli Ave, 4th floor Tel: 2221418 27/29 Chavchavadze Ave., 0179 Tel: 2553880 Tel: 2921171 www.sakcable.ge Tel: 2242413 www.mkd.ge www.pmcg.ge
Shota@Rustaveli Boutique Hotel American Friends of Georgia 1 Shevchenko St., 0108 77 Nutsubidze St. Tel: 2317089 Mina JSC Poti Free Industrial Zone Tel: 2397174; Fax: 2388495 www.theshota.com 4 Besiki St. Pixel Building, 4th floor, www.afgeorgia.org Tel: 2449981/82/83; Fax: 2449980 34 Chavchavadze Ave. www.mina.com.ge Tel: 2485485
www.potifreezone.ge Silknet Ltd. 95 Tsinamdzgvrishvili St. CARE International in the Tel: 2910345; Caucasus www.silknet.com 37 Tsagareli St., 0162 Mira Hotels Ltd. Tel: 2291941 Publicis Ltd. Brose Street Turn,Old Tbilisi www.care-caucasus.org.ge Tel: 2242244/55/88 17 V. Jorbenadze St. SRG Investments LLC www.riverside.ge Tel: 2745672; Fax: 2745671 49a Chavchavadze Ave, 3rd floor www.publicis.ge Tel: 2253581 Europe Foundation www.silkroad.ge 3 Kavsadze Str. Tel: 2253942; Fax 2252763 (ext. 112) National Center for Dispute www.epfound.org Resolution Qebuli Climate Tbilisi View 4/7 Rustaveli St., Rustavi 101, Tsereteli Ave. 4a, Freedom Sq. Tel: 2193406 Tel: 2356201 Tel: 2999980 www.ncdr.ge www.qebuli.ge www.tbilisiview.ge Free University of Tbilisi 140 David Agmashenebeli Alley Tel: 2200901 TBC Leasing JSC www.freeuni.edu.ge 8 Bulachauri St., 0161 Rakeen Development LLC NCC Ltd. Tel: 2272727 9, Erekle II turn Pixel Business Center, 34 Chavchavadze Ave. www.tbcleasing.ge Tel: 2725088 Georgian Wine Association www.ensisi.ge Tel: 2933393; Fax: 2933993 12 Mtatsminda St. www.rakeen.ge Terrace Hotel & Restaurant Tel: 2505457 7 Polikarpe Kakabadze St. Tel: 2999001 Noblet Media www.theterracetbilisi.com Resolution Insurance Brokers, Good Governance Initiative 7, Khorava St. Georgia LLC Pixel Center, 8th Floor, 34, Tel:w 2396300 61, Gorgasali St. Chavchavadze Ave. www.nobletmedia.com Theco Ltd. Tel: 2936305 Tel: 2243111 16 Chikovani St. www.ggi.ge www.rib.ge Tel: 592107515 www.tbilisia.ru Nodia, Urumashvili & Parnters QSI International School of Office #28, IV Block, Rixos Hotel Borjomi University of Georgia Georgia 71 Vazha-Pshavela Ave. 16 Meskheti St., Borjomi 77a Kostava St. Village Zurgovani, Tbilisi Tel: 2207407 Tel: 2292292 Tel: 2552222 Tel: 2537670; Fax: 2322607 www.nplaw.ge http://borjomi.rixos.com www.ug.edu.ge www.qsi.org
VD Capital Salvation Army Nutrimax Ltd. Rooms Hotel 77 Kostava St., 0175 16 Ikalto St. 68a Rustavi Highway, 0165 14 Merab Kostava St. Tel: 2363672; Fax: 2364302 Tel: 2333786; Fax: 2330227 Tel: 2305335 Tel: 2020099, 2730099 www.salvationarmy.org www.nutrimax.ge www.roomshotels.com Wings and Freeman Capital Green Building, 6, Marjanishvili St. Tel: 2940051; Fax: 2940053 San Diego State University - Georgia Overall Management Group RSM Georgia LLC www.wfcapital.ge 3 Chavchavadze Ave. (OMG) Inc. 67, Aghmashenebeli Ave. Tel: 2290820 29 Marjanishvili St. Tel: 2558899 Wissol Georgia www.sdsu.edu Tel: 2436052; Fax: 2436052 www.rsm.ge 74b Chavchavadze Ave. Tel: 2915315; Fax: 2915615 www.wissol.ge Transparency International Paine Stevens LLC Rustavi Azot Ltd. Georgia 1 Ivane Javakhishvili Sqr. 2 Mshvidoba St. Rustavi-3702 61 Agmashenebeli Ave. 0102 Tel: 2903211, Fax: 2903291 Tel: 995341270900 Tel: 2932129 www.painestevens.com www.azot.ge www.transparency.ge NON-PROFIT ORGANIZATIONS
Agricultural University of Women Wellness Care Alliance PASHA Bank Georgia JSC Rustavi Steel LLC Georgia HERA 15, Shota Rustaveli Ave. 12 Y. Gagarin St., 3700 Rustavi 140 David Aghmashenebeli Alley 67 S. Meskhi St., Kutaisi 4600 Tel: 2265000 Tel/Fax: 260 66 99 Tel: 2594901 Tel: 599257172 www.pashabank.ge www.rmp.ge www.agruni.edu.ge www.georgiarace.com
february-march/2016 • Investor.ge | 53 NEWS
Georgia celebrated the 25th anniversary of its independence with a military parade, tributes to the country’s 1918- 1921 First Republic government, and many other events. Military orchestras and soldiers from several countries, including the United States and the UK, participated.
54 | Investor.ge • june-july/2016 NEWS
AmCham cocktail reception at Mercure Hotel
On June 3rd AmCham Georgia hosted a Members’ Appreciation Reception at Mercure Tbilisi Old Town Hotel.
june-july/2016 • Investor.ge | 55 NEWS
Board Of Directors 2016
Sarah Williamson PRESIDENT
R. Michael Cowgill 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 Nino Bakradze, Helena Bedwell, Maia Edilashvili, Monica Ellena, Lika Jorjoliani, Keti Khukhunashvili, Joseph Larsen, Meri Taliashvili Copy Editor Alexander Melin Photographs ENPARD (pages 14-17); Nick Paniashvili (pages 21-22) Marketing & Promotion Saba Gvetadze and Salome Tkeshelashvili
Promotional Design Levan Baratashvili Special thanks to the Prime Minister’s Office, ENPARD, KPMG, Mgaloblishvili Magazine Design and Layout Kipiani Dzidziguri (MKD), as well as to all the AmCham Georgia staff. Without Giorgi Megrelishvili your help, this issue of Investor.ge magazine would not be possible. 56 | Investor.ge • june-july/2016 NEWS
Steve Johnson Ted Jonas ketti kvartskhava Director Director Director
Chris Schlueter Betsy Haskell, K.G. Moore Director Founding Advisor Ex-Officio Member
george welton Exec. Director
AmCham Georgia Patron Members:
© The American Chamber of Commerce in Georgia, 2015 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 floor. Tel: 2 22-69-07 The opinions expressed in this magazine do not reflect the opinion [email protected] of the American Chamber of Commerce in Georgia nor its Board [email protected] │ www.amcham.ge Members or staff, unless otherwise stated. AmCham Georgia neither endorses, nor can be held liable for any eventuality www.investor.ge june-july/2016 • Investor.ge | 57
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