How does the eu- Deputy Mayor Details Consumer Spending in association agreement plans to tackle traffic Georgia: the power of affect customs? confidence 2016/17

Investor.geA Magazine Of The American Chamber Of Commerce In Georgia ISSUE 54 d e c.-jan.

AmCham Celebrates its 18th Anniversary december-january/2016-17 • Investor.ge | 3 Investor.ge content 6 Investment News Investor.ge provides a brief update on investments and changes in government policy that could impact the business environment.

8 Georgia’s New Cabinet

11 Explainer: How Does EU Agreement Affect Customs? deloitte Georgia’s customs expert Bondo Bolkvadze outlines what those changes mean for day-to-day operations.

14 Tbilisi Set for New Railway Bypass by 2018 a plan to move the central railway line from the middle 8 of Tbilisi has resumed after a three-year suspension. The new route will free 78 hectares of land in central Tbilisi for development.

16 Billions to be invested in Infrastructure: Update the government has pledged to invest billions of lari in new roads, better access to remote areas and improvements for the railway.

18 Construction and Cars: The View from Tbilisi City Hall

19 Consumer Spending in Georgia: The Power of Confidence Investor.ge looks into ’ increased spending and 28 the potential power of consumer confidence.

22 Will Airbnb and Others Bring Disruption to Georgia? airbnb and similar services have found a niche in Tbilisi, where the number of tourists has challenged the hospitality industry.

25 The Office of the Future: The Rise of Co-Working in Georgia Working at home can be lonely, which is one reason co- working spaces are booming – a trend that is now also gaining foothold in Georgia. 22 28 Russia Set to Return Georgian Films after years of negotiations, Moscow has agreed to send Georgia the original films, cartoons and animations that have been kept in the Russian archive since 1937.

32 Shopping Aghmashenebeli a historic boulevard in central Tbilisi on the left side of the Mtvkvari River, the avenue has something for everyone.

...... 36 36 NEWS

4 | Investor.ge • december-january/2016-17 december-january/2016-17 • Investor.ge | 5 Trump Tower Batumi Back On Investment Georgian media have reported plans to build a Trump Tower in Batumi have resumed after a six-year pause. The $250 million-dollar project, owned by Silk News Road Group, will reportedly restart “soon,” according to company representatives. U.S. financing for new hospital, port project Investor.ge The U.S.’s Overseas Private Investment Corporation (OPIC) plans to lend $67 provides a million to two Georgian projects: 120-bed Mother and Child Medical Center in brief update Tbilisi and infrastructure related to a new dock complex in the Black Sea town on investments of Poti, agenda.ge reported on November 16.

and changes German Experts to Draft Urban Development Plans for in government Villages policy that could The Ministry of Economy of Georgia and the German Society for International Cooperation (GIZ) have signed a memorandum of understanding to develop urban impact the business planning concepts for Akhmeta municipality, Tusheti and 12 villages, agenda. environment. The ge reports. The deal includes a 200,000 lari grant from GIZ for urban planning. information in this issue was taken Thermal Power Plant Planned for Gardabani The construction of a 230 MW combined-cycle thermal power plant in from agenda.ge, Gardabani is “yet another important step toward reinforcing Georgia’s energy a government- independence,” according to Georgian Prime Minister , the supported website, gov.ge website reported. The project will be implemented by the China Tianchen Engineering Corpora- and other tion and costs $159 million. The plant will go online in winter 2020. sources. Imports Increased by 31 Percent Foreign trade turnover was $9.950 billion in January-October 2016, an increase of 22 percent compared to the same period last year, the official statistics body, Geostat, reported.

Wine Association launches new guide for wine connoisseurs 120 wineries and wine bars are listed and mapped in the Wine Association’s new guide for Georgian wine. Each venue’s entry has a QR code: scan the bar code with a smartphone and its location is pin-pointed on Google maps. Se e more at www.gna.ge.

130 employed at new clay processing plant Askaneli Alliance has invested 30 million lari in a new bentonite clay process- ing plant in Ozurgeti in western Georgia, agenda.ge reported on November 20.

Standard & Poor’s Raises Georgian Oil and Gas Corporation’s ranking Standard & Poor’s (S&P) has bumped Georgian Oil and Gas Corporation from a negative to a stable rating, agenda.ge reported on 21 November. It now has a B+/B rating.

6 | Investor.ge • december-january/2016-17 december-january/2016-17 • Investor.ge | 7 and a doctorate in economics according Georgia’s New Cabinet to media reports. Kvirikashvili also named Viktor Prime Minister Giorgi Kvirikashvili has replaced Dolidze as Minister of Euro-Atlantic three ministers and named Economy Minister Integration. Dolidze, who joins the Dmitri Kumsishvili as the new Finance Minister. team after leaving the opposition Free Democrats, replaces Davit Bakradze, whom was tapped to serve as Georgia’s ambassador to the U.S. Dolidze has held several high rank- ing diplomatic assignments, serving as Georgia’s ambassador to NATO, as well as ambassador to Austria and Hungary. He is a lawyer by profession. Other changes include moving the State Minister for Diaspora Issues into the Foreign Ministry; former State Minister Gela Dumbadze will work in the diplomatic corps, according to media reports. fter sweeping the parliament tegic Project Coordination Department The cabinet was approved by the elections, has of the government’s Administration. Parliament on November 26. Under Aopted for small tweaks to the Previously, he served as deputy economy Georgian law, the PM’s candidates for government rather than major changes. minister in 2009. cabinet positions must be submitted to Prime Minister Giorgi Kvirikashvili He has worked in the finance and Parliament. Parliament committees of- is keeping his post, as are 13 out of the banking sectors as well, and holds a mas- ficially nominated the candidates and the country’s 17 ministers. One ministry – ter’s degree in business administration Parliament approved the list. the State Ministry for Diaspora Issues – has been reclassified as a part of the The full list of cabinet members, and their Foreign Ministry. biographies, can be found at gov.ge website. The biggest changes are slated for the country’s economic team: Finance Min- Prime Minister – Giorgi Kvirikashvili; ister Nodar Khaduri is being replaced by Minister of Finance and First Vice Prime Minister – Dmitri Kumsishvili; Minister of Agriculture – Levan Davitashvili; former Economy Minister Dmitri Kum- Minister of Culture and Monument Protection – Mikheil Giorgadze; sishvili, and former Business Ombuds- Minister of Defense – Levan Izoria; man has been tapped to Minister of Economy – Giorgi Gakharia; take over the economy portfolio. Minister of Education and Science – Aleksandre Jejelava; Gakharia joined the Georgian Dream Minister of Energy – Kakha Kaladze; government in 2013 as Business Om- Minster of Euro-Atlantic Integration – Viktor Dolidze Minister of Environmental Protection – Gigla Agulashvili; budsman. He was named Secretary of Minister of Foreign Affairs – Mikheil Janelidze; the Economic Council under the Prime Minister for IDPs issues – Sozar Subari; Minister in 2014. Minister of Internal Affairs – Giorgi Mghebrishvili; Minister of Regional Development Minister of Justice – Tea Tsulukiani; and Infrastructure Nodar Javakhishvili Minister for Labor, Healthcare and Social Affairs – Davit Sergeenko; has also been dismissed, set to be re- Minister of Corrections – Kakha Kakhishvili; Minister of Sports and Youth Affairs – Tariel Khechikashvili; placed by Zurab Alavidze. State Minister for Reconciliation and Civic Equality – Ketevan Tsikhelashvili. Alavidze currently heads the Stra-

8 | Investor.ge • december-january/2016-17 december-january/2016-17 • Investor.ge | 9 i sement advert

Explainer: How Does the EU Agreement Affect Customs? Deloitte Georgia’s customs expert Bondo Bolkvadze outlines what reforms under the EU-Georgia Association AGreement mean for day-to-day business operations.

he trade deal, known as the Deep and Com- prehensive Free Trade Area or DCFTA , Tforesees several major changes in customs procedures. The reforms are designed to bring Georgian customs and transit laws in line with EU standards by 2018. They will impact everything from benefit programs like the Authorized Economic Operator scheme to protection of intellectual property rights at the border. Several changes will have the largest impact on Georgian traders, and international businesses trading between EU member countries and Geor- gia. The Authorized Economic Operator, also known as AEO, is a voluntary system traders can join if they meet set criteria. The status provides several benefits but requires traders to meet a stringent list of requirements. A new system of customs’ audits - the Post Clearance Audit - will streamline border controls, while tweaks to the customs code will require that traders make some adjustments to their processes.

Authorized Economic Operator (AEO) Concept Traders who opt to meet a range of criteria are eligible to work in close cooperation with customs authorities to assure supply chain security and are entitled to certain benefits. The program is open to all supply chain actors. Any economic operator involved in customs-related operations in Georgia may apply for AEO status. Potential beneficiaries may include port op-

10 | Investor.ge • december-january/2016-17 erators, container terminals, warehouses, nies that are eligible and the criteria to has a comprehensive action plan for the freight-forwarders, transporters, import- join the program. development of post-clearance audit ers, exporters, customs clearance agents, AEO program is open for SMEs as practice, known as PCA. among others. well while Gold List program wel- The Revised Kyoto Convention de- comes only large-scale companies fines the practice as “as the measures by Criteria & Benefits above fixed threshold of annual trade which the Customs satisfy themselves EU has two types of authorization, turnover. as to the accuracy and authenticity of which differs according to criteria and AEO applicants may be subject to a declarations through the examination benefits. AEOC stands for simplified complex pre-authorization audit and of the relevant books, records, business customs procedures, while AEOS fo- permanent post-authorization moni- systems and commercial data held by cuses on safety and security standards toring. The audit will look at an ap- persons concerned.” granted to economic operators whom are plicant’s record keeping standards, IT PCA is considered a key element identified as the most secure links of the systems, technology used in logistics, of balancing customs control and trade international supply chain. accounting standards, business process facilitation. The practice reducing border Benefits of the program include: efficiency, internal audit systems, control on behalf of audit based control, AEOs will spend less time and safety and security measures within which makes customs clearance proce- resources on regular customs proce- the organization, etc. Gold List appli- dures more efficient. PCA offers several dures. cants are simply checked in customs benefits: AEOs are desired trade partners databases against specific criteria like Compliant trade is facilitated be- domestically and abroad because their the company’s turnover, evidence of cause the border control measures have efficiency is measured and recognized. tax and customs fraud, existence of been reduced; AEOs may become recognized as re- tax liabilities, VAT status. Customs can gain better informa- liable in the third countries, increasing Gold List program members are not tion on and understanding of clients’ Georgia’s export potential especially recognized by third country customs business; in EU. administrations while AEOs could be Risk levels can be more easily as- recognized under future Mutual Rec- sessed and reviewed by arranging Impact on business and ognition Agreements. on-site visits to the traders’ operations; expected challenges Gold list program is designed for Facilitates education, long-term and AEO reform provides an opportu- importers and exporters only, while comprehensive compliance manage- nity for traders; there are no obliga- AEO status provides preferences for ment; tions. Georgian companies may find it any business dealing with customs. Customs administrations’ resources challenging to meet EU standards to (e.g. freight-forwarders, shipping com- are more effectively deployed; join the program, however. Authoriza- panies, terminal-warehouse operators, Customs can promote the concept of tion conditions set out in EU guidelines customs clearance agents, etc.) voluntary compliance; require sophisticated quality manage- Best international practice identifies ment, business process management, Entry into force three types of customs audit/verifica- human resource management, safety and The AEO program is expected to tions: security standards, modern technologies launch in 2018, according to DCFTA. Post-clearance transaction verifica- (including IT), etc. Not many Georgian It may not directly replace the current tion is based on a risk management companies may achieve the necessary Gold List program but two programs will system identifying shipments that may level of efficiency to become AEOs. coincide at the beginning. It is possible be released by customs but are still that the Gold List may be eventually subject to double-checking. The data AEO vs Gold List replaced. in the individual customs declarations The Georgian customs administra- will be verified by a customs officer. tion’s “Gold list” program is similar to Post Clearance Audit (PCA) Desk audits are conducted based on the AEO concept, although there are key Concept information available to customs from differences including the type of compa- The Georgian customs administration internal databases, official correspon-

december-january/2016-17 • Investor.ge | 11 dence or telephone. Desk audits can capacity-building programs to avoid NCTS benefits customs officials turn into a field audit if customs decide sanctions. and companies: pre-arrival information to go into further in details. allows customs in a transit countries to Field audits takes place at a com- Customs Legislation perform risk assessment more quickly pany’s premises to capture a complete The DCFTA stipulates that Georgia and traders benefit from more expedient picture of the business. A field audit will have to align its customs regulations customs procedures. examines liabilities, duty exemptions, with EU legislation, which may lead to Connected traders receive electronic transaction costs, customs valuations, the adoption of a new customs code. responses advising of key decisions dur- import-export restrictions and prohibi- Currently Georgia does not have a ing the procedure, such as acceptance of tions, etc. separate customs code, as it was merged declarations, release of goods and the The list of potential auditees may with the tax code in 2010. notification of discharge. For Georgia, a include: No dramatic changes are expected major challenge will be integrating the Importers, exporters; in the customs regulatory framework, current system used in the country, Auto- Customs clearance agents; however, because the past ten years of mated System for Customs Data customs Warehouse and storage agents; customs reforms have been driven by system with the NCTS system. The Transporters or freight forwarders; the EU approximation agenda. Georgian Revenue Service has created a Consignees and owners of imported All key elements and administrative working group for transit system reform goods. procedures, including customs-approved and negotiated technical assistance with treatments, methods of control, risk the EU. Georgia should become part of Timing -based approaches, duty-relief regimes, the system no later than September, 2018. Georgia has recently started field au- preferential treatment regimes, etc., are dits, while transaction verifications and already in place. Border Measures for desk audit have been practiced for the Minor procedural changes will not Protection of Intellectual past several years. The German Federal seriously affect traders, although traders Property Rights (IPR) Customs Service, together with several may still need to make slight adjustments The DCFTA requires that Georgian international donor organizations, is sup- in their processes and capacity building. law and border inspections meet the EU’s porting the Georgian Revenue Service In addition, effective public-private dia- standards for Intellectual Property Rights in customs audit capacity building. The logue is necessary to ensure the private (IPR), and the Georgian Revenue Ser- Georgian Revenue Service plans to have sector is prepared and understands the vice’s customs department has developed a fully functional and capable PCA unit changes. a plan to reform Georgian legislation. by the end of 2018. The updated legislation should go This reform will facilitate legitimate into effect in September 2018. trade; IPR protection measures will Impact on business and ex- support the development of innovative pected challenges Transit Convention products in Georgia. The harmonization Customs audits facilitate legitimate Georgia has agreed to join the New process has three parts: 1) Expansion trade by removing border controls. Chal- Computerized Transit System (NCTS), of border measures to cover all customs lenges are expected from field audit, a Europe-wide customs system based procedures. Currently, it only applies to which will be a new level of scrutiny on electronic declaration and processing. imported or exported goods; 2) Expan- for businesses. NCTS was designed to replace the sion of types of intellectual property This might lead to more customs-im- paper-based system and to provide better rights protected by customs; 3) Intro- posed sanctions if traders do not update management and control of both internal duction of “ex officio” control, which their practices and pay proper attention community transit and international tran- enables customs administration to hold to details affecting cargo valuations and sit across the EU borders. a shipment and seize counterfeit goods subsequent duties. The system involves all EU member without a formal request or approval of Assuming that customs auditors will states and each country is connected the owner of an intellectual property soon be capable to detect all customs ir- through a central domain in Brussels to right. The harmonization process should regularities, traders will need adequate all of the other countries. be completed by 2018.

12 | Investor.ge • december-january/2016-17 DECISIONS OF THE INSPECTOR OF PERSONAL DATA PROTECTION WILL NEW APPROACH TO ENVIRONMENTAL ASSESSMENT NOW BE PUBLISHED With the assistance of the United Nations Economic Commission for Europe Increased need to protect personal data in digital age resulted in adoption of and the EaP GREEN, the Ministry of Environment and Natural Resources restrictive legislation on personal data protection. The Law of Georgia on Protection of Georgia has recently finished working on the draft Code of Personal Data protection was enacted in 2012. However, the law on paper is Environmental Assessment. The respective bill has not been presented to yet to be tested in practice. To ease the understanding of the rules and the Parliament of Georgia yet. However, the Code is expected to be establish unified practice of their application, the decisions rendered by the implemented in the upcoming year. The Code alters the existing system of Inspector of Personal Data Protection shall hereinafter be published on the issuing environmental impact permit. The Code is focused on increasing following webpage: This will ensure transparent and public involvement in the permitting procedure and reinforces existing public uniform development of the rules on protection of personal data in Georgia hearing system. The Code will not have an immediate retroactive application. and increase legal certainty and predictability. Confidentiality concerns are However, according to the current edition of the Code, entities who have taken care of as the identification data of the parties involved will not be already obtained the permit, are obliged to apply to the Ministry for obtaining disclosed. the environmental decision within 5 years of enactment of the Code. We will further update our readers on any progress regarding the Code. IMPORTANT AMENDMENTS TO THE TAX CODE ARE COMING INTO FORCE FROM 2017 RECENT TRANSACTIONS CLOSED BY BLC By way of heads-up, amendments to the Tax Code of Georgia adopting so We are happy to announce that after a multi-stage competitive bid called “Estonian Model” of profit taxation will come into force from January procedure, followed by lengthy negotiations, the Government of Georgia 2017. The announced objective of this new regulation is to encourage finally signed an investment agreement that grants Anaklia Development reinvestments and disincentivize offshore trading. According to the Consortium (ADC) the exclusive right to construct, develop and operate the amendments, the corporate income tax (profit tax) will be cancelled for $2.5 billion Anaklia Deep Sea Port, which will help establish a new maritime Georgian Companies and permanent establishments of foreign entities on corridor from China to Europe. As part of the agreement, the Government reinvested income. In essence, the new regulations are tailored to the so will invest $100 million in the construction and development of railway and called “Estonian Model” whereby the profits of the companies are not taxed, transportation links connecting the port to the region. The Anaklia Deep Sea unless distributed to the shareholders as dividends. Likewise, Georgia aims Port is expected to be operational by 2020. BLC acted as a local counsel to to fully release reinvested profit from tax burden thereby incentivizing the investor. reinvestments. We note that the said regulations do not apply to Oil & Gas business, NGOs and, until January 2019, also to the commercial banks, BLC represented Georgia Healthcare Group PLC (GHG) in acquisition of JSC microfinance organizations, insurance companies and pawnshops. ABC Pharmacia - holder of one of the largest pharmaceutical chains in Georgia operating under the brand name of Pharmadepo. The respective IMPORTANT SUPREME COURT DECISION REGARDING THE INTERIM Sale and Purchase Agreement on acquisition of JSC ABC Pharmacia was MEASURES signed in November and the completion of the transaction is now subject to clearance from the competition agency. In additional to the 33% equity stake On 21 October 2016 the Supreme Court of Georgia delivered an important in the combined pharmaceutical business, the shareholders of ABC judgment regarding the effect of interim measures. The court highlighted Pharmacia will receive US$ 25.0 million in cash. The completion of the that interim measures should be based on reasonable expectation that the transaction is expected to occur in January 2017. claimant will succeed on merits. Namely, the claimant has to prove convincingly the need for interim measures and demonstrate that the claim We are pleased to announce yet another successful deal closed in Georgia is substantiated. However, the court reiterated that the reasonable with the assistance of BLC. MagtiCom has acquired 100% share of Deltacom expectation of the court that the claimant will succeed on merits is merely a - an internet provider with the fixed and the backbone network infrastructure prima facie assessment and does not constitute a final judicial position on coving Tbilisi as well as all major regions of Georgia. By purchasing the outcome of the case on merits. We also remind our readers that effective Deltacom, MagtiCom intends to materially expand the regional area of from 7 July 2016, party seeking interim measure must prove that the value of internet access which will be beneficial to the customers as well as to the the property to be seized does not exceed the value of the claim to which the communications industry in general. The deal was authorized by the interim measure applies. Georgian National Communications Commission in the midst of November.

129a David Aghmashenebeli Ave, Tbilisi, 0102, Georgia Tel.: +995 32 292 24 91; +995 32 292 00 86 +995 32 293 45 26; +995 32 200 04 91

december-january/2016-17 • Investor.ge | 13 Lika Jorjoliani Georgian Railways, Tsagareishvili said Tbilisi Set research has shown the bypass will in- he Tbilisi Railway Bypass crease costs and decrease capacity. project is getting a reboot: three But Bakhtadze said the railway has years after it was suspended due worked with Tbilisi City Hall to improve for New T the project’s design and the new version to rising costs, the government has tasked its Partnership Fund and the Georgian is more efficient and less costly. “We are Railways to complete the $350 million ready to start works on transferring of Railway construction project by 2018. the railway this year, using an updated The details of the plan remain largely project and design,” he said, noting that unchanged: the railway lines that criss- the new design keeps costs down and will Bypass by cross central Tbilisi will be dismantled, make the bypass more efficient. and trains will bypass the city using new Bakhtadze added that the construc- track that runs near the Tbilisi Sea. tion, which is being handled by China 2018 The new route will branch off the cur- Railway 23 Bureau Group, should be rent line at Zahesi, pass through the Tbili- completed in 18 months. A plan to move the si suburbs of Avchala and Gladni and The same company also worked on head north to the Tbilisi Sea, joining the the original project in 2013, and the new central railway existing Kakheti railway line near Lilo, version of the bypass utilizes work that line from the according to Georgian Railway Head . The middle of Tbilisi The details of the plan remain has resumed Kakheti line will be upgraded to double track by refurbishment largely unchanged: the railway after a three-year of the existing single track and suspension. The new adding a second new track. lines that crisscross central route will free 78 Bakhtadze added that Tbilisi Tbilisi will be dismantled, and hectares of land Central Station will stop func- tioning as a railway station, trains will bypass the city using in central Tbilisi and passengers will use either new track that runs near the for development. Didube (trains heading west) or Navtlugi (trains heading east) Tbilisi Sea. station. Tbilisi Central will continue operating as a shopping mall. was completed three years ago, he said. Both Didube and Navtlugi stations Reportedly, about 65 percent of the are slated for renovation, he said, and necessary construction has already been the railway tracks that currently connect completed. them will be dismantled, freeing up 73 hectares of land in the city center for New life for Tbilisi’s Left Bank development. The new version of the bypass plan is the most cost-effective option, agrees the Concerns about cost CEO of City Institute Georgia, Mamuka Head of the Transport Corridor Salukvadze. Research Center Paata Tsagareishvili Now the city has to decide what to do argues, however, that the project does with 78 hectares of land in the center of not benefit the railway. the city, once it is free of railway track. Calling it a “no-win project” for When the bypass was originally planned,

14 | Investor.ge • december-january/2016-17 the swath of freed land was slated to be- There are just two “connections” be eight, he added. come Tbilisi’s new business district, with between the two halves of the city today; Plans for the left bank of the city will an eye on reducing traffic on the right once the left bank is developed, there will be included in the new master develop- bank. Salukvadze said the territory ment plan, which outlines urban is currently being considered for a development in Tbilisi for 2020- “second center” for Tbilisi and a Bakhtadze said the railway has 2030, Salukvadze said. recreational zone. worked with Tbilisi City Hall to The plan is set to be com- Once the railway tracks and pleted in April 2017. infrastructure are removed, the improve the project’s design and Tbilisi Mayor Davit Narma- city will be able to create “con- the new version is more efficient nia has said the city’s plans to nections” between the right and develop the 78 hectares will be left banks of Tbilisi. and less costly. submitted “as soon as possible.”

december-january/2016-17 • Investor.ge | 15 In September, Prime Minister Giorgi Kvirikashvili pre- Billions to be sented a governmental project on construction of the transport network linking all regions of Georgia. Plans include the construction and reconstruction of railway stations, ports Invested in and airports, as well as construction and renovation of the tourism infrastructure. In total, by the year of 2020, construction and reconstruc- Infrastructure: tion will be conducted on 1000 km of highway at an approxi- mate cost of $3.5 billion. Update Bridges: up to 150 new bridges have been constructed since 2006; 300 more bridges are scheduled in 2016-2020, including 100 bridges to be constructed in the Rikoti moun- tain pass. Tunnels: six automobile tunnels have been constructed A detailed since 2006; 50 automobile tunnels are scheduled to be built breakdown of in 2016-2020, including 40 automobile tunnels in the segment of Rikoti mountain pass. the investment The following projects are planned for the next four years, the Georgian according to Kvirikashvili: government Eastern-Western road and byroads: 730 km of a new road must be constructed. The Rikoti segment – Chumateleti- plans to make Argveta, on the Rikoti mountain pass – is scheduled to be in the country’s finished in 2020, with a four-lane, 53 km of highway. An infrastructure. alternative route to Rikoti highway could be the Kharagauli The plans include bypass road – Chumateleti – Kharagauli – Dzirula (50 km). In addition, there are plans to upgrade the highway from more roads, Tbilisi to Laris, and link it to the Red Bridge/Sadakhlo cus- improved access toms point. to remote areas There are also two routes planned to increase tourism to regions of Georgia: and upgrading the 55 km road linking Zemo Imereti and Racha; railway. 200 km between Sno-Juta-Roshka-Shatili-Omalo- Pshaveli, which would link the country’s mountainous regions. The highway would reach heights of 3000 m above sea level and will open up unique landscapes and cultures for domestic and foreign travelers.

Railway stations: The Georgian railway is implementing a project of mod- ernization of the railway that aims to optimize shipment of cargoes and transportation of passengers, decrease operational expenditures, acheive complete operational safety and in- crease capacity. Completion of the construction is planned by 2019. Currently, 40 percent of the work has been completed. To date, 70 percent of the new railway line Baku-Tbilisi- Kars has been built. A train can arrive from China in just nine days.

16 | Investor.ge • december-january/2016-17 Nino Bakradze we should have normal public transport Construction to meet people’s demands,” he said. Investment and “Since Tbilisi’s public transport Infrastructure system is not satisfactory right now, we and Cars: ver 410,000 cars are officially prefer to solve current traffic problems registered in Tbilisi, according slowly, step by step. We have created a The View Oto the statistics of the Ministry strategic plan called “Strategy of Urban of Internal Affairs. Mobility” with the Asian Development There are too many cars and too Bank. This plan is focused on five main from Tbilisi many traffic jams in Tbilisi, Deputy areas.” Mayor Irakli Lekvinadze told Investor. The plan includes new roads, and ge. Regulations and better public trans- new parking areas, as well as renovation City Hall portation are part of the city’s new plan and reconstruction for the city’s aging to improve the situation, he said. roads and byways. Deputy Tbilisi Mayor “We look at statistics and see how In addition, the city plans on invest- Irakli Lekvinadze spoke fast the number of cars has increased ing a billion lari in public transportation. with Investor.ge about during last ten years. We know that “Currently 500 buses run in Tbilisi, City Hall’s projects parking and traffic jams are very serious but we need 300 more to have a better and plans intended problems here. public transport scheme. to eliminate traffic The fastest way to solve those prob- According to statistics, currently bus- problems in Tbilisi. lems is through regulations. If we do it, es carry 105 million passengers per year, advertisement the metro is used 110 million times per “Before we reshape our infrastructure Pollution and Bike Rides year, and minibuses (called marshutkas and public transport system, we should The city is also planning to develop in Georgia) are used 220 million times work on new regulations to balance traf- infrastructure for electric cars: currently fic. We banned driving garbage there are 50 electric cars operating in Over 410,000 cars are officially trucks on the roads during Tbilisi, but the Lekvinadze said City rush hours in Tbilisi’s central Hall “hopes the number will increase.” registered in Tbilisi, according to districts. At the same time, we Electric cars are not taxed when they are the statistics of the Ministry of have agreed with businesses imported into Georgia – an extra incen- that their distribution trucks tive, he said. Internal Affairs. will not stop on more than In addition, City Hall has closed part twenty central Tbilisi streets of Aghmashenebeli Avenue to cars, and per year,” Lekvinadze said. during rush hours. At the same time, we there are plans to close some roads in There are about 2,000 marshutkas support vehicle inspections and would Old Tbilisi. The city is also studying the operating in Tbilisi today. Lekvinadze like to ban imports of cars with steering Sololaki district to see something similar notes that while they are necessary in wheels on the right side,” he said. can be done there. Tbilisi today, ideally they will not exist There are also plans to use new “We know the circumstances we have after 2023. technology to improve traffic flow – in- right now: we have a lot of buildings, “If we say we do not need marshutkas cluding an app to inform drivers about which do not leave space for pedestrians, anymore, then we should provide other congested areas – and to introduce new plus cars parked on the pavement. We kinds of transportation to our citizens. rules for Tbilisi’s many taxis. asked Tbilisi City Park (the company For now, the metro and buses are not It is estimated that there are over responsible for organizing the parking enough to meet demand. If we will have 25,000 taxis operating in the capital. system throughout the city) to be more a well-developed metro and bus system Safety regulations and traffic congestion tough with drivers who park cars on the by 2023, competition will eliminate are key areas for City Hall’s new taxi sidewalks,” Lekvanidze said. marshutkas from the market itself,” he regulations, Lekvinadze said. said. “Nowadays, the majority of The plan includes new roads, Lekvinadze added that there are taxis in Tbilisi are not safe for plans to revive the city’s old tram line, clients from a technical point and new parking areas, as well although possibly not before 2025. of view. In addition, drivers are as renovation and reconstruction In addition, the city is trying to tackle not well-organized and create the lack of parking spaces in the city. problems on the roads,” he said. for the city’s aging roads and Lekvinadze said that, currently, there “We do not want to be byways. are around 35,000 parking places in the too tough and start with very capital today, which is far less than the hard rules, so we decided to demand. introduce regulations step by step. First, “We have already canceled 4,000 He said City Hall plans on support- we will inspect drivers’ vehicles, check parking places this year. Plus, City Hall ing private businesses to build five new them personally for drugs and alcohol, does not give construction permission parking lots–with 3,000 to 5,000 new and gather their personal information to to projects that burden pedestrian pave- parking spaces–in 2017. create a database. Based on this infor- ment areas.” New construction permits also re- mation, City Hall will issue permits for There are no plans to develop bi- quire that developers allocate space for taxi drivers for a token price… After five cycle infrastructure right now, he noted, parking on-site as well. years, we plan to start issuing licenses although Lekvinadze added that the new instead of permits. general plan for Tbilisi – slated to be New Traffic Rules We need some time to start this pro- completed in the spring – includes “in- Lekvinadze noted, however, that bet- cess, but first it needs to be discussed formation about specific areas where we ter regulation of the roads is necessary to by parliament. We hope everything will can develop paths for bikes and proper ease the city’s traffic problems. conclude by spring 2017.” infrastructure.”

18 | Investor.ge • december-january/2016-17 Consumer Spending in Georgia: The Power of Confidence

More shops and Joseph Larsen sumption has risen rapidly over the past more shopping – decade: average monthly expenditures eorgia has been an economic per household rose from 382.6 lari in Investor.ge looks success story for more than a 2005 to 1,004.7 lari in 2015, an increase into Georgians’ Gdecade. Annual GDP growth of 161 percent. GDP growth has tended increased has averaged 5.8 percent since 2001. to track fairly closely with growth in Growth has slowed since 2014, but there consumption; total output grew by 118 spending and the are encouraging signs around Tbilisi and percent over the same period. potential power elsewhere in the country. Many of the goods that Georgians of consumer Particularly evident is the growing consume are imported. Through Septem- confidence. number of options enjoyed by consum- ber 2016, the country’s current account ers: East Point shopping center opened deficit stood at 6.08 billion lari, already earlier this year, and next year will exceeding the deficit from 2015. mark the opening of Galleria Tbilisi, an Expanding current account deficits 80-million-dollar shopping mall funded often correlate with growth in imports by the Georgian Co-Investment fund. and associated higher consumer spend- Exports count for a fairly low share of ing. Imports to Georgia stand at 7.59 Georgia’s growth basket, so consumption billion lari through the first nine months is crucial for economic growth. Con- of 2016, looking likely to top the 7.73

december-january/2016-17 • Investor.ge | 19 billion in total imports the country ab- for optimism. One indicator of better growth, too. sorbed in 2015. times ahead is the Consumer Confidence “Economic expectations have strong Index (CCI), a measure that is calculated repercussions in the real economy, as Breaking Down the each month by the International School they are typically self-fulfilling,” she Consumer Basket of Economics at said. However, when considering that (ISET). The index is compiled accord- “If people expect the economy to pharmaceuticals account for a large ing to survey responses by roughly 400 run hot next year, they will spend and consumers. invest, leading to the outcome that was Respondents are asked expected. Likewise, if they believe a Exports count for a fairly low to answer a series of ques- bank will go bankrupt, they will with- tions: how they expect their draw their money, leading to the very share of Georgia’s growth financial situation to change outcome they expected.” over the next 12 months, Official projections for GDP growth basket, so consumption is including whether they ex- stand at 3 percent for 2016, and a weak crucial for economic growth. pect to spend more or less lari continues to hold back imports. money in the near future However, the fact that consumers are and whether they expect optimistic is itself a signal that things portion of 2016 imports— roughly 2.59 to save money over the 12 months. The could be better in 2017, when the In- billion lari worth of medicine has been responses are then aggregated into a ternational Monetary Fund projects 5.2 imported this year—rather than consum- numerical index. percent growth. Such a figure would be er goods, these statistics don’t tell Georgia’s highest annual growth the real story about consumption. rate since 2012. Eva Bochorishvili, an econo- While consumer spending Another encouraging sign? mist in Galt & Taggart’s research Women have been especially division, was candid about that growth has been slow since optimistic of late, accounting for in an interview with Investor.ge. most of the rise in the Consumer “Foreign direct investment is driv- 2014, there are reasons for Confidence Index over the past ing our current account deficit,” she year. For Manukyan, this trend said. “Overall, consumer imports optimism. was both encouraging and surpris- are down.” ing: “The positive turn in the CCI Middling growth, in addition to low According to the CCI, consumer con- data was mainly driven by female re- consumer imports and low inflation, fidence began falling in late 2013, and spondents. However, we do not know the paint a picture of sluggish consumer it fell significantly during 2014. How- reasons behind it … On average, women demand. ever, it increased by This point was expressed by Bocho- 14.8 percentage points rishvili: “Since the second half of 2016, from September 2015 Middling growth, in addition prices are dropping. This is caused by to September 2016, three things: flat aggregate demand, low a clear indicator that to low consumer imports and prices on international markets, and a households are feel- low inflation, paint a picture of correction from 2015 [when inflation was ing better about their high due to the depreciation of the lari] current and future situ- sluggish consumer demand. … Overall, aggregate demand is low.” ations. According Laura Consumer Confidence Index Manukyan, an economist at ISET, are considerably more pessimistic than Optimistic upward-trending consumer confidence men.” For the sake of Georgia’s future While consumer spending growth has does more than say good things about economic growth, optimism is welcome, been slow since 2014, there are reasons the present. It can help propel future whatever the reason.

20 | Investor.ge • december-january/2016-17

Will Airbnb and Sally White ocation, location, location... Love it or hate it, Airbnb’s image depends on where you look. In Bar- Lcelona, Paris, Berlin and San Francisco, people have Others Bring protested against it. In New York and other cities across the U.S., as well as in in Paris, hotels have lobbied strongly to restrict it. Yet in Amsterdam and London, the governments Disruption to have welcomed it with open arms (if also with taxes). What will its impact be in Georgia? In Georgia, the informal accommodation sector seems Georgia? to be rising exponentially. Apart from Airbnb, there are now Booking.com, metroroommates.com, rentals.ge, roomlala. com, dailyappartmentstbilisi.com, roomorama.com, 9flats. com, makler.ge, dobovo.com, etc. Just how many rooms are Airbnb and similar services on offer is hard to see as there are many duplicate listings have found a niche in across sites. Tbilisi, where the number of Should hotels fear the rapid growth of Airbnb and its look- alikes? According to a 2016 Boston School of Management tourists has challenged the study entitled The Rise of the Sharing Economy: Estimating hospitality industry. the Impact of Airbnb on the Hotel Industry, the answer, in general, is “Yes!” The hit could be as much as 8-10% of hotels’ revenue. Airbnb’s impact has various dimensions. As Hospital-

22 | Investor.ge • december-january/2016-17 ity & Tourism Research from Canada’s first half of 2016, international numbers of next year. Ryerson University stated in May, it also were up 12.9% at 2.64 million visitors, Airbnb, similar competitors and the “limits hotels’ ability to employ dynamic and this follows on a 7% rise for all of hotels should be able to co-exist hap- price strategies at peak times since their 2015 to 5.9 million. Thus, the Georgian pily here. rates must be competitive.” Ryerson puts Tourism Strategy 2015-2025 target of Key is that Georgia is still very short the hit as high 13% of hotels’ revenue, 11 million international visitors (11.2% of beds for visitors. Last year, Georgia especially as Airbnb is now marketing to compound average growth rate) seems had 8.7 beds per thousand visitors, (down business travellers. reachable. from 16 in 2010), far below the average Anger has become so strong in Yet, Georgian tourism is bigger than of 42.8 in Eastern Europe. As TBC Capi- Europe that the European Commission that—Georgians also take holidays in tal commented: “Since 2010, the number put out guidelines for sharing-economy their own country. The number of do- of beds in the hospitality sector increased companies this summer, stressing the mestic tourist visits last year was 12.4 by 59% to 51,400, while the number of sector’s economic importance. These million. These domestic tourists also visitors increased by 1.9 times, to 5.9 state that implementing bans on sharing- need accommodation—24% went to million in 2015.” economy services like Airbnb and Uber Tbilisi, 8% to Kutaisi and 7% “should only be a measure of last resort.” to Batumi. Relatively, the impact on Georgia’s On the supply side, hotel In Georgia, the informal hospitality industry is probably small, room numbers are also rising— accommodation sector seems to as yet: Airbnb lists just 300+ locations the Georgian National Tourism each for Tbilisi and Batumi, and even Administration register shows be rising exponentially. in Kutaisi the number is 179. However, 1,475 hotels and guest houses, Airbnb (now valued at $30 billion, with with 51,404 beds in all. Many 23 million users) has a record of fantas- more beds are coming down the line, Many visitors have no desire for the tic growth. Increases in Airbnb growth with major international hotel groups hotels. Georgia’s tourism is addressing of hundreds of percent per year are seeing the opportunities for new hotels challenges which leave the market open currently the norm in Asian countries in Tbilisi, Adjara, Samtskhe-Javakheti, to the sharing economy. Many tourists in which Airbnb has newly established Imereti and Kakheti. The government has don’t spend much money—most make itself, for example. just put on the market a wide range of old short visits and come from poor coun- On the demand side, tourism growth buildings across the country suitable for tries, with over 70% from Armenia, in Georgia has, as brokers Galt & Taggart conversion to hotels. In all, a minimum and Turkey. The majority comment, shifted into “high gear.” In the of 8,500 more beds are likely by the end come to see friends and relations (55%)

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december-january/2016-17 • Investor.ge | 23 and most stay with a friend or relative term, and consequently shifting attention on the residential housing market bring- (65%). The average of receipts has not to the international midscale segment” ing, as in U.S. cities, protesters onto the changed much over the last eight years, its analysts wrote in a Georgian Tourism streets. according to World Bank and Georgian Sector Review published in June. In Georgia, peace should reign here, National Tourist—the range is $325- Yet, this still leaves opportunity for as well. For a start, there is an active $500, compared to $750 on average for Airbnb and others to price below the housing development market. Then, Eastern Europe. hotels’ floor level, especially in Tbilisi. Georgia Today reported in September, Elsewhere, there could after talking to local estate agents, that be scope for stress, particu- the residential market “has not experi- On the demand side, tourism growth larly, TBC Capital notes, enced any considerable price increase in Batumi, where hotel compared to the same period last year.” in Georgia has, as brokers Galt & occupancy rates have been International agents Colliers wrote in Taggart comment, shifted into “high falling. However, the gov- June that, since 2015, because of adverse ernment is investing in in- internal and external economic and cur- gear.” frastructure along the coast, rency factors “demand on the residential including the new port property market decreased by 10%,” at Anaklia, which should and prices had also fallen. Transactions, This, and the sharp rise in high-end increase demand. though, have been recovering since the hotel beds, has not been lost on hotel Politically, of course, the government election. investors, as Galt & Taggart comments. welcomes the sharing economy to help Thus, while “bad for hotels, but “We have seen the first signs of hotel boost tourism (and owners’ incomes). good for tourism and the economy” is investors in Georgia recognizing the Travel inflows were 13.9% of GDP in the Boston School of Management’s probability of oversaturation in the inter- 2015, up 8%. Yet, the government must rating of Airbnb, that does not look true national upscale segment in the medium also keep an eye on any possible squeeze in Georgia. Or, at least, not yet.

24 | Investor.ge • december-january/2016-17 Maarten de Boer the experiment ended a year later. How- The Office of ever, with help of those behind CoSpot, ccording to a 2016 global co- the Georgian NGO International Center the Future: working survey, the worldwide for Peace and Integration (ICPI) created Anumber of co-working spaces the co-working space and social bar is projected to be about 10,000 by the end Generator 9.8 in October, 2015. The Rise of of the year, with about 735,000 members. Natali Kenkadze and her friends, As a core business, co-working spac- the founders of ICPI, came up with the Co-Working in es offer individuals a space where they idea because of their own experience. can carry out their work, offering facili- ”At the beginning, we didn’t have an Georgia ties like desks, Wi-Fi, conference rooms office, so we were looking for such a and coffee. This reduces the overhead space. We were just going to bars and Working at home costs that come with renting an office, cafes. Lots of people are now meeting can be lonely, which and helps small organizations and indi- up in McDonalds or coffee shops. Why is one reason co- viduals network and share experience. go there if there is a meeting room or working spaces are co-working space?” Since the concept McDonalds or Coffeeshops of co-working is rather unfamiliar, they booming – a trend The first co-working space in Tbilisi decided to combine the co-working space that is now also opened up in 2014 in the Karvasla Busi- with a social bar, she told Investor.ge. gaining foothold in ness Center under the name CoSpot. It “The bar is used as a meeting place Georgia. proved hard to build a community, and and a venue for events that help familiar-

advertisement Vere Loft in Tbilisi

ize people with topics like startups or the other and create something meaningful. are sure that within a few years there sharing economy… Even the term “free- They want to have social impact. In an will be a boom of co-working places in lancer” is not so well known yet. We have open space you see other people work- Georgia.” They want to set an example them, but they don’t see themselves as a ing on ideas and projects and you start with their co-working space. “We want freelancers, but rather as unemployed.” to think: how could I help them? Or how to show young people that there is not could they help me to realize my ideas? just good stuff abroad, and bad stuff More than an Office This has just started in Tbilisi.” here. If we start ourselves, if we work Many people believe that co-working hard, then good stuff can happen here spaces are a sign of a healthy entrepre- International Standard too,” Eka says. neurial environment, where innovation With the opening of VereLoft in Janu- With a wide variety in subscriptions and social impact are fostered. ary, Tbilisi gained its first co-working (from 30 GEL a day to 300-800 GEL a “People do not just want a chair and space that meets international standards. month), interest is increasing. “We now a table,” says Ketevan Ebanoidze, who Founders and siblings Eka and David have 42 different occupations here, from is one of the founders of the co-working Tushishvili are convinced co-sharing graphic designers to architects. We also space ImpactHub Tbilisi. “People in- has a future in Georgia. “There are so have a UN officer working here, and creasingly want to share ideas with each many unexplored niches here, and we some people even record their music

26 | Investor.ge • december-january/2016-17 here, using their headphones,” Eka mentions. people working in co-work spaces have said they She believes that the design is very important for a co- feel healthier than they did working in traditional working space. “The design creates a cozy atmosphere and it offices. inspires. [As people,] we are not as productive in offices with white walls around us as we are when we are sitting on a terrace The same report said 68 percent of co-work space or in an open space, in a place where things are more mobile. users claim they are more focused and 50 percent Bringing the environment closer to how people would prefer reported higher incomes than they received when themselves to work makes them more productive.” working in conventional office-space.

Tbilisi as a Part of a Global Network Forbes listed the best co-working space in the In October 2016, ImpactHub (from 25 GEL a day to 390 world in 2016 as Proximity Space in Montrose, GEL a month) opened up in the Fabrika Complex, an initia- Colorado, USA. tive that brought in more international-quality competition. ImpactHub is known as a global community of co-working The magazine also included co-working spaces spaces, not only with the aim to provide a workspace, but also in Brazil, Bulgaria, Canada, Indonesia, Germany, to have a wider impact. Hungary, South Africa, Thailand and Tunisia. “We are connecting people in order for them to have a positive, social impact. This is the main idea of ImpactHub: to “The largest coworking spaces (measured by identify ideas, to share them and to encourage people,” Kete- number of members) are in Asia and the smallest van Ebanoidze says. The hub connects members in Tbilisi to are in Africa,” according to The Global Coworking a global network of more than 50,000 people, making it easier Survey 2015/2016. to learn from— and cooperate with—professionals from 87 advertisement different cities, ranging from Amsterdam to Tokyo. And with the government, businesses and universities in- creasingly supporting young people with innovative ideas, for example, by investing in startup incubators like TechnoPark or Vega Startup Lab, these innovative developments are only the start.

A Quick Guide to Co-working Co-working has taken off around the world, with nearly million people around the world opting to work in co-work spaces, according to a 2016 global co-working survey. Here is a brief run-down on the history and current stats to bring you up to date on the phenomena.

The first co-working space was in San Francisco, at Spiral Muse, according to Brad Neuberg, who is credited as the creator of the concept.

Neuberg also claims that he came up with the term co-working to reflect the “new kind of space to support the community and structure” that he “hungered for.”

Huffington Post reported that 70 percent of

december-january/2016-17 • Investor.ge | 27 Russia Set to Return Georgian Films A scene from the Georgian film Repentance

Nino Bakradze filmofond, the Russian archive created in After years of 1937, when Georgia was part of the So- negotiations, t took nearly two decades of nego- viet Union. To date, Georgia is the only tiations, but hundreds of Georgian Moscow has former Soviet republic in the Caucasus Ifilms are finally coming home. to secure the return of its original films. agreed to send An estimated 1000 original Georgian The copies of four films have already Georgia the films will be sent to Tbilisi from Gos- been given to Cultural Minister Mikheil original films, filmofond, the Russian film archive – a Giorgadze: The Last Hour by director diplomatic victory, according to Zurab Mikheil Chiaureli; Holtze and Amerikan- cartoons and Abashidze, the Georgian Prime Minis- ka by Leonard Esakia; and a documen- animations that ter’s Special Envoy for Relations with tary piece – Buba – by Georgia’s first have been kept in Russia. female director Nutsa Ghoghoberidze. Abashidze said it was not difficult to the Russian archive Entire History of Georgian secure the films’ return. “I can negotiate since 1937. Cinema with Gregory Karasin, Russia’s Special The originals of all Georgian films Envoy to Georgia on such issues. What made from 1916 and 1990 will be sent we cannot agree on is the problem of back to Tbilisi over the course of six to Abkhazia and South Osetia,” Abashidze seven years, according to Abashidze, told Investor.ge. who was able to secure the deal over the “Currently, all the history of Geor- past two years. gian film is preserved in Russia, all we The films are currently held in Gos- have is there, and the importance of

28 | Investor.ge • december-january/2016-17 december-january/2016-17 • Investor.ge | 29 A scene from the Georgian film Blue Mountains or Unbelievable Story

this process cannot be exaggerated. The “We will need six to seven years to Georgia’s Greatest Hits Russians who work at Gosfilmofond transfer all the negatives from Russia’s were happy with this decision because Gosfilmofond to Georgia. The estimated Georgia has a long history of powerful they are people who love film and know number of films is 706, but there might be and celebrated cinema. the value of such heritage,” says Zurab animated or documentary films we do not Here is a list of some of the most famous Maghalashvili, director of the Georgian know about yet. We divided this process films made by Georgian directors: National Film Center. into several phases. Ten films should be Georgian cinema dates back to 1908 in Georgia by the end of this November,” 1. Keto and Kote (1948) and is recognized by international film Dolidze told Investor.ge. Negatives trans- 2. Magdana’s Donkey (1956) critics for its unique vision during the So- ferred from Russia will be preserved in 3. Skhvisi shvilebi (1958) viet period. The films held in the Russian the building of the National Archive of 4. Father of a Soldier (1965) archive include classics from the golden Georgia until the Ministry builds a spe- 5. Didi mtsvane veli (1967) age of Georgian cinema. cial storage building. Since Georgia has 6. Arachveulebrivi not had any experience of working on the gamopena (1968) Logistics and Costs project like this, the Ministry met with 7. Pirosmani (1969) Nana Dolidze, a program coordinator the head of the French Film Archives 8. Sherekilebi (1974) in the Ministry of Culture and Monument several months ago and received some 9. The Wishing Tree (1977) Protection of Georgia, told Investor.ge recommendations. 10. Repentance (1984) that a special committee composed of The exact time frame for the transfer 11. Blue Mountains, or Unbelievable film critics, copyright experts, and the has not been set, and the total cost is still Story (1983) heads of both the Georgian National unknown, according to Dolidze. 12. Pesvebi (1987) Archive and Georgian National Film “Georgia has a chance to create a 13. Street Days (2010) Center have discussed the film archive special lab specializing in film and be- 14. In Bloom (2013) transferring project and all related tech- come the leader in the South Caucasus 15. Tangerines (2013) nical details. region,” she said.

30 | Investor.ge • december-january/2016-17 december-january/2016-17 • Investor.ge | 31 Shopping Aghmashenebeli

32 | Investor.ge • december-january/2016-17 Aghmashenebeli Avenue is the star of two major reconstruction projects, under both the previous and current administrations. A historic boulevard in central Tbilisi on the left side of the Mtvkvari River, the avenue has something for everyone: fabulous eye-candy for architecture buffs, tasty Turkish treats, and lots and lots of shopping. december-january/2016-17 • Investor.ge | 33 Many expats living in Georgia have grown accustomed to issues, Investor.ge will take you on an insider’s tour of retail traveling home with an empty suitcase, only to pack it full with therapy around the city. everything they cannot purchase here when they make the trip Our second destination is the historic neighborhood of back to Tbilisi. Aghmashenebeli Avenue. Famous for its architecture, Turkish But slowly the city is turning into a real shopping paradise, restaurants, and newly renovated pedestrian walking street, where finding real 100% cotton T-shirts, genuine American Aghmashenebeli has also emerged as a major shopping district. street styles, afford- able designs or sim- Retail Therapy ply real Aquafresh Most internation- toothpaste, is no lon- al brands with shops ger a daunting task. in Tbilisi, especially While the city’s shoes and apparel, two largest malls – have opened branch- Tbilisi Mall and East es on the Avenue. Point – have become There are also plenty the go-to places to of boutiques offer- shop, there are great ing less expensive bargains for adven- versions of the latest turous shoppers in fashions. nearly every neigh- The street is split borhood in the city. by Marjanishvili Over the next few Metro, with most in-

34 | Investor.ge • december-january/2016-17 i sement advert

ternational brands and Turkish-label boutiques to the west of the metro station. On the corner of Kakhidze and Aghamashenebeli, about two blocks west of the metro station, is one of the city’s most famous shops for fabric and sewing materials,128 Aghmashenebeli. East of the metro is a potpourri of shop- ping, with several highlights. One of the city’s most renowned bookstores, Santa Esperanza, is located on 12 Saint Petersburg Street, about one block east of the metro and down toward Uznadze Street. In addition, Aghmashenebeli boasts one of the biggest collections of wedding dress shops in the city. The shops start east of Marjanishvili Metro station, around 73 Aghmashenebeli, and are scattered over three city blocks. There are also tailor shops nearby for alterations.

A Bite to Eat Aghmashenebeli Avenue is famous for its Turkish restaurants – and there are plenty of those to try. There is also a grow- ing number of art cafes and other foreign restaurants to taste, with more opening in the new walking district at the beginning of the Avenue. It would take a full magazine to review all the Turkish restaurants, but favorites in- clude Ankara, at 117 Aghmashenebeli and, for sweets, Sapore at 95 Aghmashenebeli. There is also an Indian restaurant, San- jha Chulha, at 130 Aghmashenebeli. For Georgian cuisine, a new favorite, especially among tourists, is Barbarestan at 132 Aghmashenebeli. Famous for its use of authentic, old-school Georgian cooking, diners also enjoy live folk music. The city’s famous Shavi Lomi (Black Lion), has moved from the Sololaki neigh- borhood to near(ish) Aghmashenebeli; it’s new address is 28 Kvlividze Street, about three kilometers from Marjanishvili Metro station.

december-january/2016-17 • Investor.ge | 35 NEWS

content

Interview with AmCham Georgian President 40 Michael Cowgill

38 AmCham General Assembly 44 New members and Board Elections at Radisson Blu Iveria Hotel 46 Membership Directory

39 AmCham Georgia’s New President: Michael Cowgill 50 Social: AmCham Gala

41 AmCham Members Celebrate 54 Social: AmCham-US Embassy the Spirit of the Holidays Election Breakfast

42 Member Feature: Prospero’s 55 Social: AmCham Halloween Books Cocktail Reception

43 Member Feature: Dinehall

36 | Investor.ge • december-january/2016-17 excellence in quality audit & assurance tax advisory outsourcing HR & PAYROLL Finance Corporate Corporate BDO Legal BDO SOLUTIONS ACADEMY Technology Certi cations business advisory Business Trainings Advisory NEWS AmCham elects new board

On November 16th, The American Chamber of Commerce in Georgia (AmCham Georgia) held its annual General Assembly at Radisson Blu Iveria Hotel.

R. Michael Cowgill became the new President of AmCham.

Sarah Williamson became a new Vice-President of Sarah Williamson and Wales, a member of the Chartered AmCham. First Vice-President Institute of Taxation, a Registered Auditor A native of Dallas, TX, Ms. Williamson in Georgia and has an MBA from Herriot has been in Georgia since 1998. She Watt University in Scotland. He has been a Irakli Baidashvili was re- is the co-owner of UGT Group, a hold- Trustee of the Eurasia Partnership for over elected as Vice-President and ing company comprising multiple busi- seven years. He is also the Tax Chair of the Treasurer of AmCham. nesses including the largest full service IT Commercial Law and Tax Committee of company in the region - UGT Co. From AmCham. The names and biographies 2012-2016, Ms. Williamson served as the of the new board are listed President of AmCham and has been an ESBEN EMBORG below: active Board Member since June 2001. Director Having held many officer and board Esben Emborg has been in Georgia member positions of various organizations since 1999. He has worked a General and councils through the years, Ms Wil- Manager for Caucasus Region for Cad- liamson is currently a founding member bury Schweppes and Nestle until 2008. of the Prime Minister’s Investor Council; a Now he is working as Principal Partner for member of the Anti-Corruption Council; an Investment Fund (SEAF) that is currently Advisory Board Member of QSI Tbilisi; and managing a 30 million USD portfolio of an Advisory Board Member for Millennium investments all over Georgia. R. Michael Cowgill Challenge Account Georgia. President LASHA GOGIBERIDZE In his 19th year in Georgia, Mr. Cowgill Irakli Baidashvili Director is the President and co-founder of Geor- Vice-President/Treasurer Lasha Gogiberidze is a founding gian American University (GAU) in Tbilisi, Irakli Baidashvili is the Senior Vice Presi- partner of BGI Advisory Services Georgia Georgia. Prior to starting GAU, he was dent of GMT Group. The company is one and the director of BGI Legal. Previously, the pipeline adviser for the Government of the largest U.S. direct investments in Lasha worked at Ernst & Young’s Georgian of Georgia for the implementation of the Georgia, the owner of two Marriott hotels, office. Lasha graduated from Tbilisi State Baku-Tbilisi-Ceyhan (Oil) and South Cau- the Funicular Restaurant and several major University, has a LL.M. from the University casus (Natural Gas) Pipelines. real estate sites in Tbilisi. He is also member of Illinois, and is licensed to practice law Mr. Cowgill has over 40 years of experi- of the Investor.ge editorial board and sits in the state of New York. ence in managing all phases of projects in on Prime Minister’s Professional Education 40+ countries in the energy and education Authorization Council on behalf of Am- BADRI JAPARIDZE industries. In addition to being the past Cham. He is also President of the national Director First Vice-President and Vice-President/ barcoding agency GS1 Georgia. Badri Japaridze has been the Deputy Treasurer of AmCham, he is a member of Chairman of the Supervisory Board of TBC the UNDP Global Compact Steering Com- ANDREW COXSHALL Bank since 1999 and the Vice-President mittee for CSR in Georgia; a member of Director of Georgian Glass and Mineral Water Co. the Georgian Government Anti-Corruption Andrew Coxshall has over 28 years of (GG&MW) since 1995. Council; and Georgia Representative experience in audit, accounting, tax and A co-founder of the Georgian Recon- to OECD Responsible Business Conduct advisory services in more than 10 countries struction and Development Company, Initiative. Mr. Cowgill has an MBA from UC around the world. He is a Fellow of the Insti- he has served on its supervisory board Berkeley and is a current PhD candidate. tute of Chartered Accountants in England since 2004. In addition, he has served as

38 | Investor.ge • december-january/2016-17 NEWS

december-january/2016-17 • Investor.ge | 39 NEWS

Vice Chairman of the EU-Georgian Business Council and the Chairman of the Supervisory Board of TBC Kredit, as well as the Vice Chairman of the Supervisory Board of TBC Leasing. AmCham Georgia’s New Mr. Japaridze served as a MP in the Georgian Parliament between 1990 and 1992. President: Michael Cowgill

STEVE JOHNSON Investor.ge spoke with newly elected AmCham Director Georgia President, Michael Cowgill, about his Steve Johnson is the proprietor of Prospero’s Books and plans, the future of AmCham Georgia and the the General Manager of Betys’s Hotel. Prospero’s Books and business climate in Georgia. Caliban’s Coffee House is the leading English-language bookstore in Georgia. Michael Cowgill, OTAR KIPSHIDZE the recently elected Director president of AmCham Otar Kipshidze, the Managing Partner and Head of Georgia, comes to Litigation and Regulatory team of DLA Piper Georgia, has the position after serv- extensive experience in litigation, regulatory matters, energy, ing as a member of banking and finance and corporate law. Otar has advised the board, including on a number of key projects in Georgia, including major oil as First Vice President and gas transportation projects, and has a track record of and as Vice President/ successful resolution of numerous disputes in Georgian courts Treasurer, for many at various levels. years. He has lived in Georgia for 19 years KETTI KVARTSKHAVA and is the President Director and co-founder of Georgian American University (GAU). Ketti Kvartskhava is a Partner of BLC Law Office. Her pro- “It is a great honor and privilege to serve as President of fessional experience includes her work as a Commercial Law such a successful organization. AmCham’s visibility and ac- Advisor at the USAID Georgia and as an instructor at Tbilisi cess is at an all-time high, the largest membership base ever State University. She also worked as a Legal Counsel for the and the financial situation never better. This success is due US Georgian Commercial Bank JSC Absolute Bank and JSC in large part to the strategic direction and decisions made Transcaucasia Bank. by the Board of Directors which are then implemented by the officers, the Executive Director and the staff,” he said. CHRIS SCHLUETER Cowgill noted that his main priority is to continue to Director understand the needs and business interests of AmCham Chris Schlueter is Country Manager for BP in Georgia. members, and ensuring the Chamber “advocates for the Having worked for BP over 30 years, both stateside and in- best possible business environment with the Georgian Gov- ternationally, he arrived in March 2014 to head operations in ernment, and through our connections in the US Govern- Georgia. BP and its partners operate three large oil and gas ment, and the international community.” pipelines and are investing $2 billion in Georgia to expand gas pipeline operations three-fold. More investment, better business climate Another priority is helping support business growth, DWIGHT NYSTROM whether from local companies and investors or foreign direct Ex-Officio Member investment (FDI), he said. Dwight Nystrom is the Pol-Econ Chief and has been with “AmCham’s ability to support this growth is very impor- the U.S. State Department for over 19 years. Dwight’s previ- tant, both in working to ensure that Georgia has a favorable ous overseas posts were Brasilia, Toronto, Moscow, Dublin, business climate as well as supporting individual companies and Kabul. His U.S.-based assignments include as Regional and investors.” Economics Officer in the State Department’s Balkans Affairs He noted that currently the Chamber is continuing its office, a stint at the State Department training center as work on two broad issues: the tax system and the judiciary. the Deputy Director for Econ/Commercial training, and as “Both tax regulation and the judiciary have seen con- Deputy Director in the Office of eDiplomacy. Dwight has siderable improvement in recent years. All sides agree a B.A. in History from the University of Iowa and a Ph.D. in that corruption in these areas is rarely an issue. However, Economics from Auburn University. Prior to joining the Foreign unpredictable interpretations of the tax code by Revenue Service, he taught economics at the University of Louisville Service auditors and unpredictable judgements on con- and Montana State University. Dwight speaks Portuguese, tracts by the judiciary continue to create uncertainty that Russian, and Georgian. is unhelpful,” he said. AmCham is working on a tax project funded by US- GEORGE WELTON AID’s G4G project, and continues to work with the Investor Executive Director Council on general tax and judicial reform, to help address George Welton came to Georgia as a university lecturer these issues. in 2004. Soon after arriving, he started working as a profes- In addition, he noted the need for continued education sional researcher and founded GeoWel Research in 2008. His reforms to help bridge the gap in the job market. company conducts research and analysis for non-profits like As GAU President - and a founding member of Am- KfW, GIZ, UNDP, DfID, CARE International and some private Cham’s Education &Training (now HR& Education) Commit- companies. tee - Cowgill has unique insight into how education impacts

40 | Investor.ge • december-january/2016-17 NEWS

the business environment. “I have seen an ever increasing AmCham Members Celebrate improvement in the quality of students entering the university from the school system. However, I believe that there is still the Spirit of the Holidays a need for more attention to the quality of the elementary and secondary education AmCham member programs, similar to the reforms that have companies are raising been carried out in higher (university) edu- funds and supporting cation,” he said, adding that the Georgian charity events to help and US Governments’ efforts, including make the holidays the US Millennium Challenge project, are brighter for those a positive sign. in need in Georgia. The business community can help The following is a make the reforms more effective by short list of some providing valuable information regard- charitable activities ing what educational requirements they member companies COATS volunteers help expect from their new hires – and by children pick out warm are involved in. providing internships and scholarships for clothing and accessories. motivated students. American Friends of Georgia is First Step Georgia. The funds will go to Working with the Georgian organizing a Christmas charity gala purchase toys for children. and U.S. Governments dinner “Mission to Rebuild the Dzegvi KPMG in Georgia supports the Outreach and dialogue with both the Georgian and U.S. governments are key to Shelter,” and its Hospice and Palliative aging, low-income socially vulnerable the Chamber’s success, he said. Care program. The Gala dinner will take populations in Georgia by serving din- “AmCham’s primary role is to under- place on Saturday, December 10, 2016 ner and sweets to the elderly at House stand and respond to the needs and business interests of its members through at Garden Hall. For more information: of Catharsis. In addition, every January interaction with the Georgian and U.S. www.afgeorgia.org. KPMG in Georgia, together with the Governments and the international com- munity,” he said. Budget Rent a Car is supporting NGO Sand Clock, assists 10-12 low “To best accomplish that, we must the International Women’s Association’s income families in need of groceries and have a constructive dialog with the ap- annual fundraiser for charity, the Winter other necessities. propriate representatives of those orga- nizations so that our concerns are heard Fair 2016. Mercure Tbilisi Old Town donates and considered. Within the new Georgian Deloitte Tbilisi continues to sponsor 10% of its monthly income from the Government administration, we have been interacting with all the relevant rep- American Friends of Georgia’s annual weekly Sunday Brunch (11-3pm) to the resentatives for quite some time and have charity event. As per tradition, it also charity fund social partnership. In addi- every reason to believe that our dialog plans to support vulnerable families who tion, on December 3rd and 10th, Mercure will continue.” Cowgill noted that as part of the most need help this holiday season by collect- will host orphans and the elderly for recent AmCham Georgia trip to the U.S., ing clothes, purchasing Christmas pres- dinner and gifts. he saw “firsthand how our comments and opinions as US/Georgia business leaders ents for children, preparing Christmas The Salvation Army in Georgia were valued.” food parcels and organizing a Christmas continues to support children in need The Chamber will make every effort party for the children. through its Angel Tree program. The to continue the practice, he said “as it is invaluable to the understanding of what EY Georgia sponsors American organization also partnered with the is really happening within the Georgian Friends of Georgia’s Christmas Gala. COATS charity, which provides warm business community and how those in DC can influence policies that best benefit It is also supporting Temi-Community clothing for children. Georgia.” in Gremi village. Instead of traditional There are also plans to place Red New Year’s gifts giving to clients and Kettles on the streets around the country Building on success Cowgill noted that it is also important business partners, EY Georgia is con- to raise donations for its programs. Any- to build on AmCham’s success by continu- tributing money to Temi, for further one can donate to its efforts; for more ing to improve the services it offers to all developing its winery-restaurant facility. information, please email gillian_jack- its members. “Another very important challenge Hotels & Preference Hualing [email protected] or call the for AmCham as a business organization Tbilisi has collected warm clothes for the office 2333785. is that as we grow in size, we also must continue to provide individual attention Village Gremi Community. In addition, Vinotel is donating 1 GEL per check- to the needs of the members,” he said. it donated funds to the daycare center at out to the fund for children with cancer.

december-january/2016-17 • Investor.ge | 41 NEWS

told Investor.ge. population, our competitors try to go to “Six years ago, we used to see that the same success model direction as we bookstores expanded to different loca- chose.” tions without watching the political and Megrelishvili noted, however, that a economic indicators, competing to each key difference is that the coffee at Pros- other, and then closing the branches. We pero’s is fresh roasted, which is still a chose a different strategy: instead of dis- rarity. In addition, Prospero’s Books has tributing ourselves to different locations, been investing in it is employee training we decided to expand on the existing and knowledge. location, increase our size and then open the other stores,” she said. Creating a community “We expanded successfully and She added that Propero’s Books recently we add a third store on Vaja- works hard to be more than just a book- Pshavela Street for Saburtalo-region store. Prospero’s customers in Tbilisi... Prospero’s Books’ “Improving of the quality life of the mission is to create an environment local community depends on the pri- Books for the local and expatriate customers vate sector rather than the government. to experience the best quality services Prospero’s Books has also conducted its and products. And this is what we try to share of different social activities, such as Expands to establish in all of our stores.” promoting reading for young children by organizing “reading hours” on Sundays; Increased competition sponsoring book launches for local and Saburtalo The number of bookstores in Tbilisi international authors and art exhibitions Prospero’s Books – as well as in other cities and towns for local artists,” she said. around the country – is growing. While The management is also investing in has opened its third Prospero’s was a pioneer in Tbilisi, eco-friendly practices. location in Tbilisi at 1 the first to offer a bookstore and fresh “We initiate and train our employees Vaja Pshavela Street roasted coffee for its patrons, the trend on paper waste prevention and recy- (inside the National has caught on to other chains as well. cling, which is not widely practiced in Archive Center). There are also more bookstores Georgia – as well as many similar initia- Investor.ge spoke with selling books in English, a sign, accord- tives, which we believe that government Tamara Megrelishvili, ing to Megrelishvili, that the market is regulations will introduce in Georgia in the director of becoming more competitive, especially future.” in Tbilisi. The government, she said, can help the stores, about “What makes us different from other by reducing restrictions on selling Eng- Prospero’s newest bookstores in Tbilisi is that we are a lish educational material and doing more bookstore and the pioneer in the Caucasus market as an to protect copyrights. “There will be sig- book business in English bookstore, and we created a very nificant changes in the retail industry and Georgia today. interesting landscape for the competition innovation, and experiments will be the in terms of the books and fresh roasted challenge not only for Prospero’s Books Prospero’s Books and Caliban’s Cof- coffee businesses,” she said. in Georgia, but for all world bookstores,” fee – an institution for book and coffee “The current competition is intense Megrelishvili said. lovers for 17 years – has finally expanded in Georgian market, especially in Tbilisi. “And like other bookstores, the into Saburtalo, with a new store at 1 Vaja Prospero occupies a niche position in the main challenge for us is to maintain a Pshavela Street. general English bookselling segment. flexible position for strategic change in The move was part of the store’s Although the English mass titles are not the future. At this level, I can say we are expansion strategy, Tamara Megrelishvili a high-demand product for the Georgian ready and open to all beneficial changes.”

42 | Investor.ge • december-january/2016-17 NEWS

“During the day very important and Dinehall: The World’s First special subjects are talked about, dis- cussed and decided while eating, that’s why people start to choose the places Fresh-Casual Cafe-Restaurant where they can find good service and Tbilisi’s newest fine dining the details to make our guests feel as they atmosphere, feel themselves important restaurant is whipping up deserve it. We are happy that since June and eat fresh food.” more for its guests than 9th, we have hosted 40 thousand guests.” just good cuisine: it is on a Fresh, local products mission to introduce a new philosophy about eating. Quality food and quality Dinehall uses fresh, local products to Investor.ge spoke with Taner time prepare a “global menu” for its clients, Icten, Maqro Food board He added that Dinehall is more than Icten noted. But the restaurant prides member and group head, itself on its peerless Georgian cuisine. about dining in Tbilisi, food just a restaurant. “In our concept ,we innovation and creating have Expo Halls for Events and Meeting, “Dinehall is a Georgian Brand, but the first world`s first fresh- we have more companies that are waiting it has a global menu, in our menu we casual Cafe –Restaurant. for our proposals, and we are proud of have Chicken Shkmeruli, Soup Kharcho, it,” he said. Lobio and Pork Ojakhuri from Georgian cuisine,” he said. Dinehall, a $6 million investment, opened at 28 Rustaveli in June. The restaurant is the first branch of a new project by the Maqro Food group: a restaurant and a life philosophy. Group head Taner Icten came to the project as a consultant, bringing five years of experience in the food sector. “We worked on Dinehall project for one year, looking and comparing famous trends around the world,” Icten told Investor.ge. “According to our research, there were no restaurants in Tbilisi where the owners or managers of a company could gather for their business meetings or go out with their families.” The solution was Dinehall Tbilisi. “Every human being is entitled to an honorable life and good food. Here in Dinehall Tbilisi, we serve freshly prepared dishes, using only the best lo- cally sourced products. In that sense we claim to be the world`s first fresh-casual Café –Restaurant,” he said. “Our motto is ‘Good food is a hu- Dinehall is aimed for diners over the “We chose these dishes because we man right,’ with this believe we treat our age of 25 and their families, “especially trust that we do them best. We don’t have guests. While working on the Dinehall people who believe that good food is a competitors among the Georgian and lo- concept, we took into consideration all human right,” Icten said. cal cuisine restaurants.”

december-january/2016-17 • Investor.ge | 43 NEWS

Budget Rent a Car - Kartlos Group LLC Dio Ltd. Domsons’ Otokoc Georgia LLC Corp A Corp B Engineering LLC Corp A Kartlos Group acquires Dio represents a highly qual- Corp B Otokoc Georgia LLC is a underdeveloped agricultural ified professional team that is Domsons’ Engineering is 100% subsidiary of Otokoc Au- properties in picturesque lo- oriented towards the constant a leading Georgian group tomotive Turkey, which is the cations in Georgia, develops improvement of the quality of specializing in MEP Engineering largest 31st company of Tur- them according to international its products and customization. on different levels. Group con- key with USD 1.9 billion sales best practice, redevelops all The company has a wide range sists of three companies (Dai- revenues. Otokoc holds the processing infrastructure to of its manufactured products: kin Georgia LLC, Gradus LLC, licensee rights of Avis and Bud- the highest standards, obtains PVC doors and windows, Per- Techknowledge LLC), each of get not only in Turkey, but also certification of all aspects of gola, glasing systems, blinds, them using its knowledge to represents Avis in Kazakhstan, operations to ISO22000 and mosquito screens, awning, ensure customer satisfaction on Azerbaijan, Northern Iraq and GlobalGAP standards, and external shading systems, um- every level of provided service Budget in Georgia, Hungary. designs, builds and commissions brellas, glass enclosed blinds, (HVAC, water & sewage, eleva- Otokoc Turkey manages a car luxurious resorts and hotels in barissol, windows shutters, in- tor, firefighting, electricity, low fleet of 40,000 cars. Avis Budget harmony with the surrounding frared heaters, mist cooling voltage, BMS). Group is a US company with environment. The Company systems, garage doors, sun sail, www.domsons.com USD 8.5 billion sales revenues provides a unique Caucasian membranes, industrial doors, operating in 180 countries with agrarian holiday experience, door automation. Dio has own 11,000 sales ofices. be it amongst vineyards, or- representatives in various re- www.budget.com.ge chards, or pastures for cattle gions of Georgia: Batumi, Telavi, and sheep amongst idyllic Kutaisi, Khashuri and Gori. mountain scenery. A focus on www.dio.ge professionally managed adven- turous activities makes Kartlos Group LLC the logical destina- tion for polo, rodeo, paragliding and heliskiing in the Caucasus. Long-established distribution channels in East Asia and Aus- tralia for produce, beverage and inbound tourism position the company well for sustained growth in this market, in both goods and services. www.kartlosgroup.com ne w members

44 | Investor.ge • december-january/2016-17 NEWS ne w members

GTS Electronics, Ltd. Maqro Food LLC Nexia TA LLC Veziri Ltd. Corp B “Dinehall” Corp B Corp B GTS Electronics is the de- Corp B Nexia International is a lead- Veziri Ltd. was established scendant of GIS Electronics Maqro Food LLC “Dinehall” ing top 10 worldwide network of in 1996 as communication and Ltd. founded in early 90’s by is the first fresh casual café independent accounting and security systems integrator and the energy sector profession- restaurant, which is located on consulting firms. Founded in products supplier for Georgian als. Since that GTS Electronics 28 Rustaveli Avenue. Dinehall 1971, for now, NEXIA’s network Market. Initially the company Ltd. is family owned enterprise combines five venues in one unites 614 offices in more than started its activities with supply lead by the second genera- - café and restaurant, bar, 110 countries. All independent and installation of conventional tion. The nature of business is wine cellar, patisserie and art member firms apply strict pro- RF systems and later diversify- production, service and distri- gallery. Dinehall’s expo halls cedures and standards and ing into other communication bution of variety of office and are perfect for private com- are subject to regular quality media. Nowadays, Veziri Ltd. industrial equipment: stabilizers, panies and individual events. control reviews which must be is considered as one of the UPS-s, battery chargers, high Dinehall’s concept is “Less is met as a condition of continu- leading Communication and frequency invertors, etc. More”, company’s philosophy is ing membership of Nexia In- Security systems supplier and www.gts-el.com “Good Food is a Human Right”, ternational. Services provided: integrator on Georgian Market. company’s vision is to reach a audit, International Financial The company provides design, global standard with customer Reporting Standards (IFRS), supply, installation, commission- and employee satisfaction, also accounting outsourcing, tax, ing, maintenance, customer to acquire competitive advan- consulting, tax dispute solutions, training and after sale support tages in its industry by creating legal, valuation, transactions, fully meeting customer require- difference. reporting & budgeting, busi- ments. Veziri Ltd. gives priority to www.dinehall.ge ness plans. all projects concerning Country www.nexia.ge Development. The company participates in charity activities, supports refugees and socially vulnerable groups. www.veziri.net

december-january/2016-17 • Investor.ge | 45 AmCham Company Members as of December 2016

PATRON MEMBERS Avon Cosmetics Georgia LLC Construction Service LLC Georgian American University 117 Tsereteli Ave. 2 Gen. Mazniashvili St., 8 Aleksidze St. Tel: 2226805; Fax: 2226806 Tel: (599)500559 Tel: 2206520; Fax: 2206519 www.avon.com www.cs.ge www.gau.ge BP Exploration Georgia 24, S. Tsintsadze St. Tel: 2593400 www.bpgeorgia.ge Betsy’s Hotel / Prosperos Books Cushman & Wakefield - 32/34 Makashvili St. / Georgian Logistic Group Ltd. Veritas Brown 12 G. Kuchishvili St., 0179 34 Rustaveli Ave. 6th floor, Block 10, Tel: 2987624, Fax: 2923592 Tel: 2422424 71 Vaja-Pshavela Ave. www.glg.ge KPMG Georgia LLC www.betsyshotel.com Tel: 2474849 3rd Floor, Besiki Business Center, www.veritasbrown.com 4 Besiki St., 0108 Tel: 2935713; Fax: 2982276 BHP International GMS Ltd. www.kpmg.ge Office 305, 3rd Floor, Digomi District, Area 25, 0159 2 Baratashvili St. Dechert Georgia LLC 7th floor, Pixel building, Tel: 2644101 Tel: 2103207 www.gmsgroup.ge www.bhp-int.com 34 Chavchavadze avenue PricewaterhouseCoopers Tel: 2334719 7 Bambis Rigi St., 0105 www.dechert.com Tel: 2508050; Fax: 2508060 www.pwc.com British American Tobacco GMT Group 71 Vazha Pshavela Ave. 4 Freedom Square Tel: 2157500/01/02; Fax: 2157503 Deloitte Tel: 2988988; Fax: 2988910 www.bat.com 36a, L. Asatiani St., 0105 www.gmt.ge UGT Tel: 2244566; Fax: 2244569 17a Chavchavadze Ave., 7th floor www.deloitte.ge Tel: 2220211; Fax: 2220206 www.ugt.ge Budget Rent a Car - Otokoc Gosselin Moving Georgia Georgia LLC 3 M/D, Didi Digomi 37 Rustaveli St. Diplomat Georgia Tel: 2596601/02/03; Fax: 2596600 Tel: 2234122 65, Kakheti Highway www.moving.gosselingroup.eu www.budget.com.ge Tel: 2984950 CORPORATE A MEMBERS www.diplomat.ge

Catoni & Co. Georgia Grant Thornton LLC AECOM Georgia LLC 7 Dzmebi Zubalashvilebi St. 61 D. Aghmashenebeli Ave. DLA Piper Georgia LP 34, Chavchavadze Ave. Apt.22/23 Tel: 2604406 10 Melikishvili St. Tel: 555603200 Tel: 2989230; Fax: 2922264 www.grantthornton.ge Tel: 2509300; Fax: 2509301 www.aecom.com www.hapag-lloyd.com www.dlapiper.com

Alliance LLC 135 King Parnavaz St., Batumi Caucasia Trading Greco Group Tel: 591555757 Apt 11, Bld 7, 16 Krtsanisi St. EY Georgia 1 Nutsubidze St. www.alliancegroup.ge Tel: 14433050083; Fax: 44 Kote Abkhazi St. Tel: 2393138; Fax: 2311107 14433788388 Tel: 2439375; Fax: 2439376 www.greco.ge www.ge.ey.com Alliance Group Holding, JSC www.caucasiatrading.com 47/57 M. Kostava St., 0179 Tel: 2424181; Fax: 2998112 GT Group www.agh.ge Caucasus University F H Bertling Georgia Ltd. 48 B. Cholokashvili St. 77 Kostava St., Bld.6, 4th fl. Room 3, 4th Floor, Tel: 2740740 Alstrom Grid SAS Tel: 2377777; Fax: 2313226 154 Agmashenebeli Ave. www.gtgroup.ge Representation in Georgia www.cu.edu.ge Tel: 2252287 5th Floor, Pixel Bulding, www.bertling.com 34 Chavchavadze Ave. Tel: 2259516 / 2259505 CH2M Hill GULF Georgia www.ge.com 5th Floor, GMT Plaza, by Sun Petrolium Georgia LLC FINCA Bank Georgia Pixel Business Center, Freedom Square 71 Vazha-Pshavela Ave. 3rd fl. Ameriacan Hospital Management Tel: 2474040; Fax: 2470210 34 Chavchavadze Ave. Tel: 2244949 Tel/Fax: 2496444 Company (AHMC) www.ch2m.com www.finca.ge 6 U. Chkheidze St., 0102 www.gulf.ge Tel: 577007012 www.americanhospitalmanagement.com Chemonics International 5, 2nd Blind Alley, Chavchavadze St. Frontera Resources Georgia 12 Paliashvili St. Hilton Batumi American Medical Centers, Tel: 2234311; Fax: 2234309 13 Takaishvili St., Batumi Georgia www.chemonics.com Tel: 2252412 www.fronteraresources.com Tel: 292092 12 Arakishvili, Tbilisi, 0179 www.hilton.com Tel: 557313707 www.amcenters.com Colliers International Georgia LLC Georgian American Alloys, Inc. Auto Service Caucasus 37/39 Kostava St., 200 S Biscayne Blvd Suite 5500, Iberia Refreshments, JSC 5 Shalikashvili St. Grato Business Center 7th Floor Miami FL 33131 USA Tetri Khevi Hesi District, Orkhevi Tel: 2208080 Tel: 2224477 Tel: (1)3053757560 Tel: 2241091; Fax: 2241090 www.precisiontune.com www.colliers.com www.gaalloys.com www.pepsi.ge

46 | Investor.ge • december-january/2016-17 IG Development Georgia Ltd. PepsiCo Wimm-Bill-Dann TMC Global Professional Basel LLC 47/57 Kostava St. Village Ponichala, Tbilisi 0165 Services 49 Krtsanisi St. Tel: 2987589 Tel: 2475290 6001 Indian School Road NE, Suite Tel: 2550110 www.igdevelopment.ge www.wbd.ru 190, Albuquerque, NM 87110, USA www.krtsanisi.com Tel: (1 505) 8723146 www.tmcservices.com IMSS Ltd. Philip Morris 10a Bakhtrioni St. 1 Tabidze St. Basis Bank JSC Tel: 2920928 Tel: 2439001; Fax: 2439005 West Invest Ltd. 1 Ketevan Tsamebuli Ave. www.imss.ge www.philipmorrisinternational.com 13a Lortkipanidze St. Tel: 2922922; Fax: 2986548 Tel: 2997275 www.basisbank.ge www.west-invest.ge Kartlos Group ProCredit Bank 20 Ushangi Chkheidze St., 0102 154 Agmashenebeli Ave. Batumi International Container Tel: 599540893 Tel: 2202222; Fax: 2202222-2226 www.kartlosgroup.com Terminal www.procreditbank.ge 11, Baku Street, 6010, Batumi Tel: 422 276452 CORPORATE B MEMBERS www.bict.ge Kavkaz Cement JSC ProductSavvy Dev Georgia 29 Andronikashvili St., 0189 6th Floor, Pixel Building, Tel: 2619090 34 Chavchavadze St. Action Global Communications www.kavkazcement.ge Tel: 593248248 Georgia (Action Georgia) BDO LLC www.productsavvy.com App. 3, 84a Paliashvili St., 0165 2 Tarkhnishvili Str. Tel: 2220426 Vere Business Centre, 0179 www.actionprgroup.com Maersk Georgia LLC Tel: 2545845; Fax: 2399204 www.bdo.ge 6 Khetagurov St. Radisson BLU Iveria Hotel Tel: 2200800; Fax: 2200815 1 Rose Revolution Sq. www.maerskline.com Tel: 2402200; Fax: 2402201 Adjara Group Hospitality www.radissonblu.com 1, 26 May Sq., 0179 BGI Advisory Services Georgia Tel: 2300099 18 Rustaveli Ave., II floor Marriott Hotels, Resorts & Suites www.adjaragroup.com Tel: 2997292; Fax: 2996615 13 Rustaveli Ave. Ronny’s Ltd. www.bgi.ge Tel: 2779200; Fax: 2779210 3 Apt., 3 Vazha-Pshavela Ave. www.marriott.com Tel: 2472472 www.ronnyspizza.com Air Astana Airlines JSC 5th Floor, Pixel Business Center, BLB (Business Legal Bureau) Meridian Express 34 Chavchavadze Ave. 1 Shevchenko St, Apt.1 15-17 Ketevan Tsamebuli Ave.0103 Tel: 2514999 Savaneti 99 Ltd. Tel: 2995797 Tel: 2745188 www.airastana.com Vilage Savaneti, Bolnisi Region www.blb.ge www.ups.com Tel: 2605599

Microsoft Georgia LLC Aliance Georgia Ltd BLC Law Office 34 Chavchavadze Ave. SEAF Management LLC 33 Samurzakano St. 4 Gudiashvili Sq. Tel: 2970123 7, Niko Nikoladze St. II Floor. Tel: 2243773 Tel: 2922491; Fax: 2934526 www.microsoft.com Tel: 2998115; Fax: 2923533 www.groupaliance.com www.blc.ge www.seaf.ge

M & M - Militzer & Munch Georgien, FedEx GSP Sheraton Metechi Palace Hotel Aversi Pharma BMC Gorgia 39 Ketevan Tsamebuli Ave. 20 Telavi St. 148/2 Aghmashenebeli Ave. 140 Tsereteli Ave. Tel: 2748240, 2748941 Tel: 2772020; Fax: 2772120 Tel: 2987860 Tel: 2960960 www.fedex.com/ge www.sheraton.com/tbilisi www.aversi.ge www.gorgia.ge

ModernRoofing Ltd. SICPA Security Solutions Baker Tilly Georgia Ltd. Capital Bank 118 Tsereteli Ave. Georgia Meidan Palace, 44 Kote Abkhazi St. 1 Vertskhli St. Tel: 2356611 79 Chargali St., 0178 Tel: 2505353; Fax: 2505353 Tel: 2428888 www.modernroofing.ge Tel: 2434580 www.sicpa.com www.bakertillyinternational.com www.capitalbank.ge

Oracle Ayazağa Mevkii Meydan Sok. T&K Restaurants (McDonald’s Bank of Georgia CaspiGroup Ltd. Spring Giz Plaza Kat:11 Georgia) 3 Pushkin St. 29 Bochorma St. Maslak, Istsnbul, Turkey 1 Dzmebi Kakabadze St. Tel: 2444134; Fax: 2983269 Tel: 2550818 Tel: 577500151 Tel: 2921246; Fax: 2251422 www.bog.com.ge www.caspigroup.com www.oracle.com www.mcdonalds.ge

Orient Logic Ltd. TBC Group Bank Republic Caucasus Online LLC 8 Beliashvili St. 7 Marjanishvili St. 2 Gr. Abashidze St. 71 Vazha-Pshavela Ave. Tel: 2541818 Tel: 2272727; Fax: 2228503 Tel: 2925555; Fax: 2925544 Tel: 2000022 www.orient-logic.ge www.tbc.com.ge www.republic.ge www.co.ge

december-january/2016-17 • Investor.ge | 47 AmCham Company Members as of December 2016

Channel Energy (Poti) Limited GeoCapital Microfinance Gloria LLC International Black Sea Georgia LLC, By Petrocas Energy Organization Ltd. 3 Gorgasali St., 0105 University Group 5 Tsereteli St, Kutaisi Tel: 2000245 David Agmashenebeli Alley 13 km, 52, David Agmashenebeli St., Poti Tel: 431 267070 www.tiflispalace.ge 2, 0131 Tel: (995493) 2-7-08-60 www.geocapital.ge Tel: 2595005 www.petrocasenergy.com www.ibsu.edu.ge GM Capital LLC Geocell 2 Tarkhnishvili St., 0179 3 Gotua St. Château Mukhrani, J.S.C. Tel: 2912626 JTI Caucasus Tel: 2770100, ext. 7435; Sangebro St. www.gmcapital.ge VII Floor, Pixel Business Center, Tel: 2201878; Fax: 2201878; Fax: 2770119 34 Chavchavadze Ave. www.mukhrani.com www.geocell.ge Tel: 2604111 www.jti.com GTS Electronics GeoEngineering LLC 35 Moscow Avenue, 0137 Citi & Co. 15a Tamarashvili St. Tel: 2710800 4 Besiki St. Tel: 2311788; Fax: 2311787 www.gts-el.com Kordzahia, Jgenti Law Firm Tel: 2920921 www.geoengineering.ge 10 Petriashvili St. Tel: 2921878 www.kjlaw.ge Gvinadze & Partners LLC Continent Cron Palace Geomill LLC 44 Kote Abkhazi St, 0105 Hotel Tbilisi 4, Chirnakhuli St. Tel: 2438970, Fax: 2438971 1 Kheivani St., 12/13 Tel: 2400000 Leavingstone www.gvinadzeandpartners.ge Tel: 2242321 www.geomill.ge 12a Al. Kazbegi Ave. www.cronpalace.com Tel: 2105103 www.leavingstone.com Georgian Airways HeidelbergCement Georgia Crowne Plaza Borjomi 12 Rustaveli Ave. 18 Lermontov St. Tel: 2999730; Fax: 2999660 Baratashvili Str. 9, 1200 Borjomi Tel: 2474747 Legal Partners Associated LLC www.georgian-airways.com Tel: 995 367 220260 www.heidelbergcement.ge Office #203, Besiki Business Center, www.cpborjomi.com 4 Besiki St. 0108 Tel: 2200203; Fax: 2250458 Georgian Beer Company www.lpa.ge 3311 Saguramo, Mtskheta District Herbalife Crystal, MFO JSC Tel: 2437770 Bld. 4a Tamarashvili St., 0162 72 Tamar Mepe St. Kutaisi, 4600 Tel: 2202929 Tel: 431253343 www.geobeer.ge www.herbalife.com Liberty Bank JSC www.crystal.ge 74 Chavchavadze Ave. Georgian Express Tel: 2555500; Fax: 2912269 105, Tsereteli Avenue, 0119 Hotels And Preference Hualing www.libertybank.ge Dio Ltd. Tel: 2696060 Tbilisi 12th Km David Agmashenebeli Alley www.dhl.com Hualing Tbilisi Sea New City, 0152 N3, Parsadani St. Tel: 2505025 LSG Ltd. (Taxi Prius) Tel: 2361112 42, G. Brtskinvale St. www.dio.ge www.hotelspreference.ge Georgian Hospitality Group Tel: 2131515 22 Peritsvaleba St., 0103 www.lemondo.com Tel: 2987789 Domsons’ Engineering www.ghg.ge Hualing International Special 8a Sanapiro St. Economic Zone Tel: 2050303 25 Apt. 34/36 Kobuleti St. Luca Polare 54 Oniashvili St. www.domsons.com Georgian Industrial Group LLC Tel: 591005900 GIG Plaza, 14 Gazapkhuli St., 0177 www.hualing.cn Tel: 2990399 Tel: 2210187 www.lucapolare.com Duty Free Georgia www.gig.ge 3rd floor, 4 Besiki St., Hydrolea LLC Besiki Business Center 11 A. Apakidze St. Maqro Food “Dinehall” Tel: 2430150 Georgian Integrated Systems Tel: 790420015 28 Rustaveli Ave. www.dfg.ge (GiS) www.hydrolea.com Tel: 2001616 Office 1, 85 Abashidze St., 0163 www.dinehall.ge Tel: 2243724 www.gis.ge Efes Brewery in Georgia - ICS Ltd. TNT Agent in Georgia Lomisi JSC Mercure Tbilisi Old Town 25 Agmashenebeli Ave. Village Natakhtari, Mtskhta Region 9 Gorgasali St., Old Tbilisi, 0105 Tel: 2910220 Tel: 2357225 Georgian Resources Company Tel: 2006060 3-5 Kazbegi St. www.tnt.ge www.natakhtari.ge www.mercure.com Tel: 2936676 www.georgianresources.com

EVEX Medical Corporation IGroup Mgaloblishvili Kipiani Dzidziguri 197/24g Kazbegi Ave. 40 Vazha-Pshavela Ave. (MKD) Geo Steel LLC Tel: 2308483 Tel: 2550505 36 Davit Gareji St., Rustavi, 3700 Office 24, 71 Vazha-Pshavela Ave. www.igroupgeorgia.com www.evex.ge Tel: 2243794 Tel: 2553880 www.geosteel.com.ge www.mkd.ge

Gebrüder Weiss LLC ILF Beratende Ingenieure ZT Airport Adjacent Territory, Globalink Logistics Group GmbH Branch in Georgia Mina JSC Kakheti Hwy 14-A Shartava St, 2nd fl, Suite 7 15 Tamar Mepe Ave. 4 Besiki St. Tel: 2710011 Tel: 2253262; Fax: 2439002 Tel: 2199453 Tel: 2449981/82/83; Fax: 2449980 www.gw-world.com www.globalinkllc.com www.ilf.com www.mina.com.ge

48 | Investor.ge • february-march/2016 Mira Hotels Ltd. Poti Free Industrial Zone Shota@Rustaveli Boutique Hotel NON-PROFIT ORGANIZATIONS Brose Street Turn,Old Tbilisi Pixel Building, 4th floor, 1 Shevchenko St., 0108 Tel: 2242244/55/88 34 Chavchavadze Ave. Tel: 2317089 www.riverside.ge Tel: 2485485 www.theshota.com Agricultural University of www.potifreezone.ge Georgia 140 David Aghmashenebeli Alley Silknet Ltd. Tel: 2594901 MyGPS 95 Tsinamdzgvrishvili St. www.agruni.edu.ge 6 Bokhua St., 0159 Primera Golf & Residence 36, Khetagurovi St., 0102 Tel: 2910345; Tel: 2180180 Tel: 2200036 www.silknet.com www.mygps.ge Alliance for Progressive Healthcare SRG Investments LLC 27/29 Chavchavadze Ave., 0179 National Center for Dispute Publicis Ltd. 49a Chavchavadze Ave, 3rd floor Tel: 2242413 Resolution 17 V. Jorbenadze St. Tel: 2253581 4/7 Rustaveli St., Rustavi Tel: 2745672; Fax: 2745671 www.silkroad.ge Tel: 2193406 www.publicis.ge American Friends of Georgia www.ncdr.ge 77 Nutsubidze St. Tbilisi View Tel: 2397174; Fax: 2388495 4a, Freedom Sq. Qebuli Climate www.afgeorgia.org Tel: 2999980 101, Tsereteli Ave. NCC Ltd. www.tbilisiview.ge 9, Erekle II turn Tel: 2356201 Tel: 2725088 www.qebuli.ge CARE International in the www.ensisi.ge TBC Leasing JSC Caucasus 8 Bulachauri St., 0161 37 Tsagareli St., 0162 Rakeen Development LLC Tel: 2272727 Tel: 2291941 Pixel Business Center, www.tbcleasing.ge www.care-caucasus.org.ge Nexia TA 34 Chavchavadze Ave. 4th Floor, 19 David Gamrekeli St., Tel: 2933393; Fax: 2933993 0160 www.rakeen.ge Terabank JSC Europe Foundation Tel: 2242559 3 Ketevan Tsamebuli Ave. 3 Kavsadze Str. www.nexia.ge Tel: 2507700 Tel: 2253942; Fax 2252763 (ext. 112) Rentals LLC www.terabank.ge www.epfound.org 46 Rustaveli Ave.; 36 Griboedov St. Noblet Media Tel: 2454567 / 2996412 7, Khorava St. www.rentals.ge Terrace Hotel & Restaurant Free University of Tbilisi Tel:w 2396300 7 Polikarpe Kakabadze St. 140 David Agmashenebeli Alley www.nobletmedia.com Tel: 2999001 Tel: 2200901 Resolution Insurance Brokers, www.theterracetbilisi.com www.freeuni.edu.ge Georgia LLC 61, Gorgasali St. Nodia, Urumashvili & Parnters Tel: 2936305 Theco Ltd. Georgian Wine Association Office #28, IV Block, 16 Chikovani St. www.rib.ge 12 Mtatsminda St. 71 Vazha-Pshavela Ave. Tel: 592107515 Tel: 2505457 Tel: 2207407 www.tbilisia.ru www.nplaw.ge Rixos Hotel Borjomi 16 Meskheti St., Borjomi Good Governance Initiative Tel: 2292292 University of Georgia Pixel Center, 8th Floor, 34, http://borjomi.rixos.com 77a Kostava St. Nutrimax Ltd. Chavchavadze Ave. 68a Rustavi Highway, 0165 Tel: 2552222 www.ug.edu.ge Tel: 2243111 Tel: 2305335 www.ggi.ge www.nutrimax.ge Rooms Hotel 14 Merab Kostava St. Tel: 2020099, 2730099 VD Capital www.roomshotels.com 77 Kostava St., 0175 QSI International School of Overall Management Group Tel: 2363672; Fax: 2364302 Georgia (OMG) Inc. Village Zurgovani, Tbilisi 29 Marjanishvili St. RSM Georgia LLC Tel: 2537670; Fax: 2322607 Veziri Ltd. Tel: 2436052; Fax: 2436052 67, Aghmashenebeli Ave. www.qsi.org 7 Luarsab Andronikashvili St., 0131 Tel: 2558899 Tel: 2251614 www.rsm.ge www.veziri.net Paine Stevens LLC Salvation Army 1 Ivane Javakhishvili Sqr. 16 Ikalto St. Tel: 2333786; Fax: 2330227 Tel: 2903211, Fax: 2903291 Rustavi Azot Ltd. Vinotel (“Aigvinissakhli”) LLC www.salvationarmy.org www.painestevens.com 2 Mshvidoba St. Rustavi-3702 4 Elene Akhvlediani Ascent Tel: 995341270900 Tel: 2555888 www.azot.ge www.vinotel.ge San Diego State University - PASHA Bank Georgia JSC Georgia 15, Shota Rustaveli Ave. Rustavi Steel LLC 5 Kostava St. 0108 Tel: 2265000 Wings and Freeman Capital 12 Y. Gagarin St., 3700 Rustavi Tel: 2311611 www.pashabank.ge Green Building, 6, Marjanishvili St. Tel/Fax: 260 66 99 Tel: 2940051; Fax: 2940053 www.georgia.sdsu.edu www.rmp.ge www.wfcapital.ge

Policy and Management Transparency International Consulting Group (PMCG) Sakcable JSC Wissol Georgia Georgia 61 Aghmashenebeli Ave, 4th floor Suite 414, 19 Gamrekeli St. 74b Chavchavadze Ave. 61 Agmashenebeli Ave. 0102 Tel: 2921171 Tel: 2221418 Tel: 2915315; Fax: 2915615 Tel: 2932129 www.pmcg.ge www.sakcable.ge www.wissol.ge www.transparency.ge

february-march/2016 • Investor.ge | 49 NEWS

AmCham Black Tie Anniversary Gala AmCham hosted a Black Tie Anniversary Gala on November 11 for 270 guests at Rooms Hotel New Ballroom. In addition to AmCham membership, notable guests included Georgian Prime Minister Giorgi Kvirikashvili; the Minister of Economy and Sustainable Development, Dimitry Kumishvili; the Minister of Foreign Affairs, Mikheil Janelidze; the former business ombudsman, Giorgi Gakharia; the U.S. Ambassador, as well as the Ambassadors of Turkey, the Netherlands and Italy; the head of the EBRD, Bruno Balvanera, and many other senior members of the government and the international community.

Guests enjoyed cocktails, a delicious dinner, and a special wine collection from Rooms Hotel, as well as a string quartet, jazz band and rock and roll band on a warm autumn evening.

50 | Investor.ge • december-january/2016-17 NEWS

december-january/2016-17 • Investor.ge | 51 NEWS

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december-january/2016-17 • Investor.ge | 53 NEWS

U.S. Elections Breakfast at Courtyard Marriott

AmCham, jointly with the U.S. Embassy in Tbilisi, hosted an Election Breakfast on November 9 at the Courtyard Marriott Ballroom. AmCham President Sarah Williamson and Ambassador Kelly welcomed guests. The Georgian Minister of Foreign Affairs, Mikheil Janelidze, also addressed the attendees. The Breakfast was attended by over 300 guests, including representatives of AmCham member companies and special invitees from the Georgian government and diplomatic representatives. Guests enjoyed an American- style breakfast and sparkling wine.

54 | Investor.ge • december-january/2016-17 NEWS

AmCham Halloween Cocktail Reception at Lolita

On October 31st, AmCham Georgia hosted a Halloween Cocktail Reception for AmCham members and friends at Lolita. AmCham Vice-President R. Michael Cowgill greeted the guests and thanked the venue for hosting the reception. Mr. Cowgill informed guests about AmCham’s upcoming events and gave a short overview of the next few month. Members enjoyed thematic decorations, a selection of Georgian wine and the atmosphere of friends and business partners.

december-january/2016-17 • Investor.ge | 55 NEWS

Board Of Directors 2016

R. Michael Cowgill President

Sarah Williamson Irakli Baidashvili Andrew Coxshall First Vice-President Vice-President & Treasurer Director

Esben Emborg Lasha Gogiberidze Badri Japaridze Director Director Director

AmCham Executive Director Writers George Welton Nino Bakradze, Bondo Bolvadze, Maarten de Boer, Joseph Larsen, Lika Jorjoliani, Meri Taliashvili, Sally White Copy Editor Alexander Melin Special thanks to AmCham Georgia’s staff, Deloitte, Michael Cowgill, and all our contributors. This magazine would not be possible without your help. Marketing & Promotion Saba Gvetadze and Salome Tkeshelashvili

Promotional Design Levan Baratashvili

Magazine Design and Layout Giorgi Megrelishvili 56 | Investor.ge • december-january/2016-17 NEWS

Steve Johnson Otar Kipshidze ketti kvartskhava Director Director Director

Chris Schlueter Betsy Haskell, Director Founding Advisor

george welton dwight nystrom Exec. Director Ex-Officio Member

AmCham Georgia Patron Members:

© The American Chamber of Commerce in Georgia, 2016 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 december-january/2016-17 • Investor.ge | 57

Wishing You a haPPY neW Year!

otar Kipshidze, Office Managing Partner ([email protected]) avto svanidze, Partner ([email protected]) | Ted Jonas, Of Counsel ([email protected]) DLa Piper georgia LP, 10, Melikishvili street, Tbilisi 0179, georgia T +(995)32 2509 300 | F +(995)32 2509 301

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