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Issue no: 888/49 • OCTOBER 18 - 20, 2016 • PUBLISHED TWICE WEEKLY PRICE: GEL 2.50

Dimitry Kumsishvili visiting reconstruction works in Gudauri In this week’s issue...

Tbilisi - Ashkhabad Direct Flights to Be Launched as Part of Growing Cooperation PAGE 2 Index, Exchange Rate Dynamics and International Tourism ISET PAGE 4 FOCUS Week ON BUILDING BETTER Gudauri gets longed for water is Back system amid infrastructure PAGE 7 development works PAGE 1-2 Electricity Market Watch GALT & TAGGART PAGE 8 Bakradze Appointed as Georgian Former Diplomat Hopes Era of Messiahs Soon to Ambassador to USA End in POLITICS PAGE 11 existing relationships and the perspectives of BY THEA MORRISON strengthening cooperation between Georgia and its strategic partner, the United States. Batumi International Beach Gegeshidze’s replacement was announced by he , Giorgi Prime Minister of Georgia, , Rugby Festival Short-listed for Margvelashvili, appointed David in early September. was hosted by President Bakradze, for - The PM said that Bakradze had “excellent Margvelashvili Rhino Grassroots Award pean and Euro-Atlantic Integration, working experience as an ambassador among not infl uence the decision-making process.” The as the Georgia’s new Ambassador NATO member states, has huge experience President assessed his comments as “an incom- TExtraordinary and Plenipotentiary to the United regarding Georgia’s Euro-Atlantic integration petent statement from an unqualifi ed ambas- States of America (USA) on Wednesday. and his personal characteristics will also allow sador.” Bakradze, 41, replaced former ambassador to him to establish important relations.” Gegeshidze fi rst received formal criticism dur- the USA, Archil Gegeshidze, and will begin his Gegeshidze occupied the ambassador’s post ing the October 2015 visit of the Georgian Pres- new duties on December 5, 2016. in March, 2013. This July he was summoned to ident to New York and Washington where he The President hosted the newly appointed the Foreign Ministry of Georgia to provide an accused the Head of the Georgian diplomatic Ambassador at the Presidential Palace. explanation over his statement that pro-Russian mission in the USA of failing to attend meetings At the meeting, the offi cials discussed the forces are “present in the ruling team but do and forgetting correct diplomatic etiquette. SPORTS PAGE 12

Prepared for Georgia Today Business by Markets Asof14ͲOctͲ2016 STOCKS Price w/w m/m BONDS Price w/w m/m BankofGeorgia(BGEOLN) GBP30.03 Ͳ1,3% +2,6% GEOROG04/21 105.38(YTM5.39%) Ͳ0,1% Ͳ0,1% GHG(GHGLN) GBP3.28 +3,1% +9,3% GEORG04/21 111.98(YTM3.93%) Ͳ0,1% Ͳ0,2% TBCBankGroup(TBCGLN) GBP12.58 Ͳ0,6% +9,3% GRAIL07/22 112.50(YTM5.20%) Ͳ0,2% Ͳ0,3% BGEOLN07/23 103.25(YTM5.42%) Ͳ0,4% +0,1% COMMODITIES Price w/w m/m CrudeOil,Brent(US$/bbl) 51,95 +0,0% +13,3% Price w/w m/m GoldSpot(US$/OZ) 1251,03 Ͳ0,5% Ͳ5,4% GEL/USD 2,3763 +1,8% +2,9% GEL/EUR 2,6050 +0,7% +1,1% INDICES Price w/w m/m GEL/GBP 2,8963 Ͳ0,5% Ͳ5,3% FTSE100 7013,55 Ͳ0,4% +5,1% GEL/CHF 2,3995 +0,5% +1,1% FTSE250 17980,18 Ͳ0,1% +2,0% GEL/RUB 0,0377 +0,5% +6,5% DAX 10580,38 +0,9% +1,9% GEL/TRY 0,7685 +0,4% Ͳ0,9% DOWJONES 18138,38 Ͳ0,6% +0,6% GEL/AZN 1,4887 +1,6% +6,3% NASDAQ 5214,16 Ͳ1,5% +0,8% GEL/AMD 0,0050 +2,0% +2,0% MSCIEMEE 129,20 Ͳ2,3% +1,1% GEL/UAH 0,0921 +1,9% +5,0% MSCIEM 897,03 Ͳ1,9% +1,3% EUR/USD 0,9113 +2,1% +2,5% SP500 2132,98 Ͳ1,0% +0,3% GBP/USD 0,8205 +2,0% +8,6% MICEX 1966,39 Ͳ0,7% Ͳ1,9% CHF/USD 0,9903 +1,3% +1,7% MSCIFM 2506,88 Ͳ0,9% Ͳ0,2% RUB/USD 62,9573 +1,0% Ͳ3,4% GTIndex(GEL) 908,54 Ͳ +8,0% TRY/USD 3,0903 +1,3% +3,7% GTIndex(USD) 768,04 Ͳ +6,9% AZN/USD 1,6090 +0,4% Ͳ1,9% GEORGIA TODAY 2 BUSINESS OCTOBER 18 - 20, 2016 New Water Supply System & Infrastructure Transformations for Gudauri Reconstruction works are expected to BY NINO GUGUNISHVILI reach completion in November. As Dimitry Kumsishvili, First Vice Pre- mier of Georgia, noted during his trip he Georgian Ministry for to Gudauri, the overall investment Regional and Infrastruc- assigned for the development of the tural Development is work- popular mountain resort is GEL 170 -180 ing on a water supply system million. rehabilitation for Gudauri Further to the water system rehabili- TSki Resort and, for the fi rst time in taton, infrastructural changes are also Gudauri history, it is said the place will in line for Gudauri, to be realized accord- now have enough water to satisfy both ing to the recommendations and Master locals and visitors. Plan implemented by the Ecosign Moun- Lack of water was a problem that tain Resort Planners Company (Canada), Tbilisi - Ashkhabad remained unsolved for the many years which highlights the areas that need to of the resort’s existence, yet which never be improved for the better functionality affected the resort’s popularity. of the resort in order to boost its tour- The fi rst phase of the project, being istic potential. handled by the United Water Supply The new development plan is seen as Company of Georgia, entails the con- a basis for a long-term strategy accord- Direct Flights to Be struction of drinking water reservoirs, ing to which Gudauri will develop with with an allocated government grant of new ski tracks, ski lifts, hotels and resi- over GEL 4 million. dential areas. Launched as Part of Growing Cooperation

day and Sunday following an agreement The fi rst steps towards mutual coop- BY NINO GUGUNISHVILI reached between the two countries in eration were made during the offi cial June, when a memorandum of coop- visit of , President eration between the aviation authorities of Georgia, to Ashkhabad in 2014. wice weekly fl ights from of Georgia and Turkmenistan was signed. Today, the two countries cooperate Tbilisi to Ashkhabad are The agreement enables the two par- in principle in petroleum trade areas, to be launched from the ties to have direct fl ights not only to while this year, Georgia offered Turk- beginning of November. the capitals of Georgia and Turkmeni- menistan the use of Georgian sea ports The Boeing-737 and Boe- stan, but to any other direct destinations for the transportation of goods to ing-757T aircrafts will fl y every Wednes- within the territories of both countries. Europe. GEORGIA TODAY OCTOBER 18 - 20, 2016 BUSINESS 3 ‘Winter in Georgia’ Promo Honorary Tbilisi Wins at International Citizens Awarded Tourism Festivals project and Agmashenebli Avenue play- dancer; Robert Gogolashvili, folklore BY NINO GUGUNISHVILI ing an integral part in the festival, specialist; Lali Badurashvili, actress; together with an older part of the city, Alexander Chivadze, Georgian football Legvtakhevi, where the 19th century player; former Tbilisi Dinamo captain, he fi rst day of the city fes- was brought back to life through show- Giorgi Kvesitadze - Biologist; Guela tival Tbilisoba was rounded ing the old professions that were once Mukhashavria, Doctor; Nodar Mgalob- off with a gala dinner and popular and existed in Tbilisi," Davit lishvili, actor; Levan Tchachiashvili, concert at the Ilia Garden Narmania, the Mayor of Tbilisi, said in doctor; Dimitri Eristavi, painter; Liana on Agmashenebli Avenue, his opening speech. Isakadze,violinist; Djemal Chkuaseli, whereT representatives from the fi elds of Tbilisi in Georgian Cinema was chosen singer and head of Erisioni folklore art, sports and science gathered along- as a leitmotif of the Honorable Citizen ensemble; and Revaz Gabriadze, Puppet side state offi cials at the annual Honor- of Tbilisi award ceremony and the guests Theatre director, writer and painter, were able Citizen of Tbilisi award ceremony. had an opportunity to see footage from all awarded as Honorary Citizens of The ceremony dates back to 1979 when Georgian fi lms on a huge screen on stage. Tbilisi. it was organized for the fi rst time, ever As per tradition, this year many famous A special award for the highest artistic after a traditional event held during the Georgian actors and actresses, doctors, achievement was given to the Georgian Tbilisoba festival. sportsmen, singers, and scientists ensemble “Kartuli Khmebi” (Georgian "This year Tbilisoba gained in size received an award. Voices) by Micheil Giorgadze, the Min- considerably, with new venues and loca- Tamar Skhirtladze, Georgian actress; ister of Culture and Monument Protec- tions added, especially the new Tifl is Pridon Sulaberidze, famous Georgian tion of Georgia.

“There are ongoing internet marketing BY NINO GUGUNISHVILI campaigns promoting the winter season in Georgia in 12 countries worldwide, with TV advertising campaigns in romotional footage ‘Winter Ukraine, Kazakhstan and ,” Giorgi in Georgia,’ produced by the Chogovadze, Head of National Tourism Georgian National Tourism Administration as he introduced the Administration (GNTA) of GNTA’s winter marketing strategies. Georgia won prestigious He added that spring and summer tour- Pawards at a variety of International Tour- ist seasons are also promoted in 16 coun- ism Festivals in Riga, (Main prize tries, with a massive campaign on Tri- of RIGA TOURFILM Festival), Zagreb, pAdvisor. Croatia (Special Prize of Zagreb TOURFILM Festival) and a Silver Prize See the promo here: at Baku International Tourism Film Fes- https://www.youtube.com/ tival in Azerbaijan. watch?v=5imZlN0EllU\ GEORGIA TODAY 4 BUSINESS OCTOBER 18 - 20, 2016 THE ISET ECONOMIST A BLOG ABOUT ECONOMICS AND THE SOUTH CAUCAUS www.iset-pi.ge/blog

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

due to external developments in the BY IA KATSIA AND ERIC LIVNY global markets. As a result, the $Kh-Index did not increase as much as its Georgian (Lari) equivalent. ne glance at the (Lari) Similarly, the Lari started appreciating Khachapuri Index chart in spring 2016 (reaching a local maximum (for locals) tells the whole of 2.19 (Lari)/$ in June), at exactly the story of Georgian agricul- time when seasonal factors normally ture. Left to fend for them- bring (Lari) Kh-Index to its annual min- selvesO during the cold winter months, imum. Overall, peak-to-trough, the $Kh- Georgian cows produce very little milk, index fell only 21%, as compared with sending dairy prices through the roof. 30% in local currency. Conversely, milk production peaks with the arrival of sunny weather and green * * * fodders in early spring, leading to a col- The most important takeaway from lapse of milk prices. In the absence of the $Kh-Index story is that, in the absence large-scale industrial milk production of signifi cant price infl ation, a devalu- (that does not depend as much on cli- ated national currency strengthened mate and weather conditions), the roller Georgia’s position as a competitive des- coaster image repeats itself, year in, year tination for international tourism (at out. least as far as prices are concerned). The A somewhat different picture emerges prices of Georgian goods may go up and if we recalculate the Khachapuri Index down due to seasonal factors (in both in US$. Lari and US$), but on average we have The roller coaster image is very easy become much cheaper for foreign con- to discern in 2014-15 (dashed blue line). sumers of our tourism services and goods. Peak-to-trough (December 2014 to May This might have been an important fac- 2015), the $Kh-Index fell a solid 36% as tor behind the spectacular increase in compared to 28% for its Georgian (Lari) the number of international arrivals that equivalent. The fall in $Kh-Index was so Georgia has seen in 2016. precipitous because in the fi rst half of 2015 the (Lari)/$ exchange rate dynam- ics reinforced the seasonal fl uctuations KH-INDEX METHODOLOGY in the price of Imeretian cheese and other seasonal ingredients. In other words, not only did the Khachapuri Inspired by the Big Mac Index ingredients become cheaper after Janu- of the Economist magazine, ary 2015, but also the Georgian currency the ISET Khachapuri index lost in value, falling from about 1.80 to tracks infl ation by using the 2.30 (Lari)/$ in a matter of 6-7 months. most popular Georgian food, Thus, by April 2015, Georgia had become the Khachapuri. As opposed to an extremely cheap destination for for- other infl ation indices relying eign tourists; in May 2015, the $Khachapuri Index hit an all-time low of $1.24! on a complex basket of Interestingly enough, the roller coaster consumer goods the ISET image disappeared almost completely Khachapuri index uses a in the second half of 2015 and in 2016 basket for calculating infl ation (solid red line) since Lari and dairy prices that includes only those happened to move in the opposite direc- ingredients that are needed to tion, cancelling each other’s infl uence cook one Imeretian khachapuri and producing a line that is much fl atter - fl our, cheese, yeast, milk, than the norm. Thus, when demand for eggs, and butter. It also traditional Georgian delicacies went up includes energy costs - gas and with the start of the high tourism season (in June-July 2015), the Lari went down electricity.

ROUTING FLIGHT NUMBER WEEK DAYS DEPARTURE ARRIVAL TK 379 02:35 04:05 TBILISI - ISTANBUL ATATURK AIRPORT TK 387EVERYDAY 06:35 08:05 TK 383 22:55 00:30+1 TK 386 01:40 04:55 ISTANBUL ATATURK AIRPORT - TBILISI TK 382EVERYDAY 18:10 21:30 TK 378 21:15 00:30+1 TK 381 1/2/4/5/6/7 04:25 05:50 TBILISI - ISTANBUL SABIHA GOKCEN AIRPORT TK 381 3 05:05 06:30 ISTANBUL SABIHA GOKCEN AIRPORT - TBILISI TK 380 EVERYDAY 19:40 22:55 TK 391 1/2/4/6/7 10:35 11:40 BATUMI - ISTANBUL TK 393 1/3/4/5/7 20:15 21:20 TK 390 1/2/4/6/7 06:25 09:20 ISTANBUL - BATUMI TK 392 1/3/4/5/7 16:20 19:20 Tel: (995 32) 2 45 08 08 10 Galaktion Street E-mail: [email protected]

TIFLIS 7.5x6cm ING.indd 1 13/06/16 15:16

GEORGIA TODAY 6 BUSINESS OCTOBER 18 - 20, 2016 Georgian Cooking Meets Georgian Cooking in Bold New Old Tbilisi Restaurant

far apart and above its cousins. Unham- BY ROBERT ISAF pered by either excessive regulations or a cultural mistrust of what comes out of the earth, Georgia produces fresher, t’s one of the odd overlooked tastier, more local ingredients, and a things about Tbilisi, another one wealth of handmade, “artisanal” food of the details, the kind of thing products for its chefs, for a fraction of you’d miss amidst the snow-capped the price they’d fetch in Europe or Amer- mountains in the distance on a ica. Iclear day or the mist-draped mountain “And I’ve got to say it, that’s one thing looming above the rooftops under autumn about this part of the world,” Freeman rain. It is exactly the sort of thing that admits, breaking into a smile – “people you could count on a chef to notice, aren’t so afraid about a homemade sau- though. There’s rosemary; everywhere. sage.” It’s wild throughout the Caucasus, at He’s extra excited about those sausages. home on bare slopes and dry, rocky cliffs The menu’s only about 15 items long; waiting for hikers. Rosemary in Tbilisi he’s already had to cut down from around comes native and planted both, the sea- 40, and is still developing more. Those green needles and lilac fl owers climbing spicy, homemade kupati sausages, for up to Narikhala and spraying out beside instance, have designs towards forming the white roses politicking on Rose the base of a genuine Kartuli biscuits Revolution Square. Grant Freeman used and gravy. Fried Green Tomatoes – as to run his hand through those bushes, Southern a dish as it gets – are already on , as he’d pass, rub- on the menu, served with achika and bing the leaves to carry a bit of the scent Svan arajani, but since Freeman only with him. It’s one of his favorite herbs, wants to use local and fresh ingredients, he says. they’ll have to come off the menu as fresh “People seem to use rosemary as dec- tomatoes go out of season. Once they oration, but never cook with it,” he do, though, he plans on replacing them explains. “It’s something you can fi nd with Fried Pickled Green Tomatoes, very easily – my cooks have even told combining the uniquely -Geor- me that you can fi nd dried rosemary – gian pickled green tomatoes with the but nobody sells fresh rosemary. So I distinctly Golden Isles-Georgian tradi- just thought, yeah, this is something that tion of fried pickles. I want to use in my cooking – and it’s a Other menu items already exemplify beautiful sounding name as well, and it Freeman said, “and when I said yes, we that same sort of playfulness, mixing and has an amazing fl avor.” started getting the ball rolling – and you matching in simple ways to create bril- Unlike rosemary, Freeman isn’t native know, it’s Georgia. When liant new tastes. Freeman’s Badrijani to Georgia – at least not the Caucasian decide to do something it starts happen- Nigvzit is, sure and steady, eggplant with one. He was born in Savannah, Georgia, ing right then and there and you’re kind walnut – only the eggplant is cut into in the US, and raised between Atlanta of just along for the ride sometimes.” long sticks, battered in mchvadi corn- and Chattanooga, at the southern end of And it was certainly a fast ride. Freeman meal and deep fried, served with a wal- the low, rolling Appalachian Mountains. and his partner started discussing the nut dipping sauce. Forget Tbilisi; you After nearly a decade living as a profes- restaurant only a year ago, things didn’t half expect to be seeing that pop up at sional chef, he decided he wanted a Fried Green Tomatoes- Green achika Svan arajani (chili and herb sour cream) really start moving until nearly this sum- pit bbqs across Appalachia in no time. change, and came to Baghdati to teach eager student discovering a new lan- ised; Georgian food meets Georgian food, mer, and the bulk of the actual work, Sometimes the boyish punning is obvi- English for six months. That was four guage; studying it, exploring its rules curated by a master chef. including the signifi cant renovations ous; Freeman calls his take on Satsivi, years ago. and quirks, and toying with it all glee- Perhaps as surprising as the food is just needed for their new space, was all made with braised chicken and served That the food here piqued the young fully, unrestrained by native familiarity. how easy it was to get the business off crammed in to August and September. hot, “Satskheli” (“We’re committing a chef’s imagination shouldn’t come as The result is a mix of Kartvelian classics the ground. The idea of opening a res- “That was probably the biggest hurdle,” bit of a sin playing with that,” he sheep- much of a surprise. “From a culinary with a Dixie accent, and Southern fare taurant hadn’t even been Freeman’s, he said. “We had a very tight timeframe ishly admits, with a sort of 12-year-old’s perspective,” Freeman says, “I just decided with a Caucasian twist. His hallmark is originally; one of his students had a because we didn’t have the biggest budget devil grin). Other times innovation is I should do something, I want to do creative simplicity, though; a down-home cousin who knew Freeman was a chef, to begin with – so we needed to get our simply in using local ingredients that something, but I didn’t know what.” rusticism that runs through everything and decided he wanted to be an investor workers in here and doing the work, don’t normally end up on the local table. That “what” turned out to be Rosemary, from ingredients to décor to prices; in whatever restaurant Freeman wanted frankly, if possible 24/7.” He means that Crawfi sh is found all over the country, one of the most quietly exciting new there’s no sense that he’s overplayed his to open. near-literally: building codes proved less but doesn’t play much of a role in Geor- restaurants in Tbilisi. Freeman approaches hand. It is a great hand, though, and the “It took me a couple of days to think trouble for the renovation than after- gian cuisine; at Rosemary, you’ll fi nd the classics of like an food as arrives is exactly what’s prom- about it, because it’s a big commitment,” hours noise ordinances did. them melting buttery out of the Crawfi sh Indeed, though South and Sakartvelo and Sulguni Polenta Fritters. might complement each other gastro- Freeman jokes that one of the most nomically, one does seem to have an important rationales behind Rosemary’s advantage over the other for entrepre- name is the fact that it already ends in neurs, and Messrs. Trump and Obama an “I” sound (“Maybe 95% of Georgians alike will doubtless be disappointed to change my name to Granti, and to be learn which one. Georgia’s efforts to honest I really don’t like that…”), but of streamline its bureaucracy and keep its course there is something wildly appro- regulatory framework business-friendly priate about having this restaurant named have clearly paid off. “We went through after an ingredient so ubiquitous in the the Justice House and I’d say an hour Georgian landscape yet so absent from and half later we were a business. It’s the Georgian kitchen. Freeman’s far from that fast. They come in, they have people the only chef pushing the boundaries of who speak English and can help walk what Kartvelian cooking means these you through it, they show you what you’re days – he ticks off a list of chefs he’s fol- setting up, they talk to you about it and lowing while we talk, people messing get all of your information and as long with everything from wild truffl es to as you’ve got your ducks in a row it’s – centuries-old cookbooks – but it’s hard bing-bang-boom! – you’re done and now not to get a little bit extra excited by the you own a business.” novelty of a Georgia boy giggling his Freeman’s started a business before, in way towards a Georgian-Georgian fusion Chattanooga – the city’s fi rst food truck cuisine, in a tiny little old town restau- (sadly, not choo-choo themed) – and to rant looking all the world like it was hear him talk, even that was a much picked up and plopped down here from longer and more involved process than somewhere off some Peachtree Street. setting up a full brick-and-mortar estab- Anyways, it’s exciting to me, and I tell lishment here. “There’s a lot more codes him so – it seems like something new. in place in the US,” he says, “a lot more He just shrugs. “To be honest, at this bureaucracy.” point in my life? Tbilisi, Georgia is more That over-regulation doesn’t stop with my home than Atlanta, Georgia,” he says. the fi ling papers. A certain western “It’s hard to think about whether you’re “squeamishness”, as Grant puts it, has breaking new ground when you’re just helped set Georgia’s culinary landscape trying to make good food.” GEORGIA TODAY OCTOBER 18 - 20, 2016 BUSINESS 7

Tbilisi is Back Over the next four days, from October 20 to BY NINO GUGUNISHVILI October 23, Rooms Hotel Tbilisi will be the major venue for the Tbilisi Fashion Week with MACH &MACH, Mariam Gvasalia, LTFR, Ani Datukish- ledging to introduce a new concept and vili, ETHERE ACCESOIRE, Salome Tkabladze, promising names in the Georgian fash- ANASTASIA, Tamta, Lasha Jokhadze, Kate’s Cool, ion industry, Tbilisi Fashion Week starts and many more collections to be seen on the cat- on October 19 with a particular focus walk. Ukrainian designer Lara Quint will also on showcasing newcomers. present her new works during the Week. P“Carefully selected and assisted through their As in prevoius years, this year, too, Tbilisi Fash- work, the new and emerging Georgian designers ion Week will be attended by the top fashion to be displayed will have a unique platform dur- magazines VOGUE ITALIA, BRITISH VOGUE, ing the Tbilisi Fashion Week to show their poten- Vogue Russia, ELLE Russia, Barneys NEW YORK, tial and talent,” the organizers say. Fabulous Muses Blog, Harper’s BAZAAR Kazakh- On October 18, the offi cial showroom will open stan, British GQ , END magazine, ACHTUNG at Tbilisi Mall, general sponsor of Tbilisi Fashion MODE, Lufthansa Magazine, Planet Fashion, Nar- Week, with seasonal collections to be presented gis Azerbaijan, Fashion To Max, and Vogue Japan, until October 30. together with fashion buyers from Saks Fifth With the offi cial opening on October 19, Tbilisi Avenue – Almaty, Portrait Store, PODIUM MAR- Fashion Week will kick off on the newly renovated KET, KUZNETSKY MOST, and Al Duca d’Aosta Agmashenebeli Avenue, with an exhibition of VENECIA. Nino Ramishvili’s off-stage costumes and a per- Famous stylist and blogger Oksana On will also formance from her Sukhishvili National Ballet. be on hand to give a masterclass on the infl uence The same evening guests will be invited to of cinema and art on the fashion industry. CHUBIKA’s Secret Garden, where Georgian Tbilisi Fashion Week will close on October 23 designer Nino Chubinishvili will present her col- in Skyline Residence, a new project from real lection with installations and performances. estate development company M2. GEORGIA TODAY 8 BUSINESS OCTOBER 18 - 20, 2016

The Galt & Taggart Research team comprises Georgian and Azerbaijani fi nance and economic experts who have broad experience of covering the macro and corporate sectors of the two countries. Our current product offering includes Georgian and Azerbaijan macroeconomic research, Georgian sector research, and fi xed income corporate research. For free access to Galt & Taggart Research, please visit gtresearch.ge or contact us at [email protected]. Electricity Market Watch on bank fi nancing still ongoing, according to GOGC. FOR GEORGIA TODAY BY The debt will be issued to the Gardabani Thermal TAMARA KURDADZE Power Plant-2 SPV (fully owned by GOGC). The plant is expected to be commissioned in 2020.

ector research is one of the key directions ADDITIONAL 320.1 MW OF of Galt & Taggart Research. We currently INSTALLED CAPACITY EXPECTED TO provide coverage of Energy, Healthcare, COME ONLINE BY EARLY 2017 Tourism, Agriculture, Wine, and Real Estate A total of 320.1 MW of installed capacity is expected sectors in Georgia. As part of our energy to come online by early 2017. The 4.4 MW Sagu- Ssector coverage, we produce a monthly Electricity ramo HPP hit the grid mid-September. Next in line Market Watch, adapted here for Georgia Today’s is the 20.7 MW Qartli WPP, expected to commence readers. Previous reports on the sector can be found operations in test regime by the end of October. on Galt & Taggart’s website - gtresearch.ge. Total project cost amounted to US$ 30mn, with US$ 24mn fi nanced through a loan from EBRD. MINISTRY OF ENERGY’S PRELIMINARY Qartli WPP has a 10-year, 12-month guaranteed 2017 BUDGET SET AT GEL 121MN PPA with ESCO at a purchase price of USc 6.89/ The Ministry of Energy will be allocated GEL 121mn kWh. 108 MW Dariali and 187 MW Shuakhevi (-10.4% y/y) according to the 2017 draft budget. HPPs are expected to be commissioned shortly 74.4% of total, GEL 90mn (~US$ 40mn), will go to thereafter. Dariali HPP has a guaranteed off-take the construction and rehabilitation of strategically tariff of USc 6.5/kWh November through April for important transmission infrastructure. According a period of 10 years. The terms of the Shuakhevi to the draft budget, transmission infrastructure PPA remain confi dential. While all newly built development is to be fi nanced through debt from HPPs have priority access to cross-border trans- IFIs. One of the largest projects planned for 2017 mission lines, the current summer capacity is in terms of project cost is the 220 kV Akhaltsikhe- already allocated to Paravani. If the 320 MW of Batumi transmission line, with an estimated cost new installed capacity hits the grid as expected in of GEL 45.6mn (~US$ 20mn), fi nanced by the World 2017 and generators decide to export to Turkey, the Bank. Notably, the budget is preliminary and sub- capped export capacity will become a constraint, August 2014 level. Consumption of the Abkhazian in the grid. 76.0% of TPP-generated electricity was ject to revision. unless the cap is removed by the Turkish side. region was up 12.9% y/y. Electricity exports increased provided by Gardabani CCPP (USc 2.8/kWh) and 13.3% y/y in August 2016, with Turkey the only the rest by G-Power (USc 3.7/kWh). Gardabani MINISTER OF ENERGY KSANI SUBSTATION REHABILITATION importer. According to the data from GCAT (GSE CCPP also provided guaranteed capacity for all of RESIGNS, LEAVING HIS DEPUTY COMPLETED BY SIEMENS AUSTRIA capacity auction), the entire export capacity was August (31 days), along with Unit 3 (31 days) and AS THE SUCCESSOR The rehabilitation of one of Georgia’s strategically allocated to Georgia Urban Energy (Paravani HPP). Unit 4 (2 days). Unit 9 and G-Power, on the other Mr. resigned from his post as the important substations, the Ksani SS, has been com- In addition to exports, a signifi cant amount of elec- hand, had no stand-by days in August. The guar- Minister of Energy, leaving Mr. Ilia Eloshvili as his pleted by Siemens Austria. The project cost EUR tricity transit (138.7 GWh) took place from Azer- anteed capacity fee increased 361.3% y/y to USc successor. Georgian law requires all state ministers, 9.9mn and was debt-fi nanced by ADB. Ksani SS is baijan to Turkey. Transit fees go to GSE, the trans- 0.71/kWh. except the Prime Minister, to step down from active key to strengthening the national grid, as it is one mission system operator. duty if they are running for parliament in the elec- of the main 500/220 kV substations servicing high TURKISH ELECTRICITY PRICES FLAT tions. Campaigning with the , Mr. and medium voltage lines, including Kartli-1 (Ksani- DOMESTIC ELECTRICITY DEMAND COMPARED TO AUGUST 2015 Kaladze could no longer hold his ministerial post. Gardabani), Kartli-2 (Zestaponi-Ksani), and Mukh- MET ALMOST ENTIRELY WITH Market clearing prices in Turkey were fl at com- Mr. Eloshvili has been with the Ministry since 2012, rani (Ksani-Marneuli) 500 kV overhead lines. HYDROGENERATION pared to August 2015. The weighted average whole- serving as the Deputy Minister of Energy. Domestic consumption needs were met almost sale price in Georgia was at USc 4.3/kWh (-26.7% AGREEMENT TO INCENTIVIZE entirely by domestic hydrogeneration in August y/y), while the Turkish market clearing price was NEW SERVICE QUALITY RULES AIM TRANS-BORDER ELECTRICITY 2016. Total generation was up 11.0% y/y, with gen- at USc 5.7/kWh. 3.2% of total electricity supplied TO INCENTIVIZE HIGHER QUALITY TRADE BETWEEN TURKEY AND eration by Enguri and Vardnili up 16.3% y/y and to the grid was traded through the market opera- SERVICE PROVISION BY UTILITIES GEORGIA GOES INTO EFFECT other regulated HPPs up 19.9% y/y. Generation by tor, with the rest was traded through bilateral con- The regulator aims to incentivize service quality A 20-year intergovernmental agreement between deregulated HPPs increased 5.6% y/y. TPP genera- tracts. Import prices decreased 18.2% y/y to USc improvement by gas, electricity, and water utilities. Turkey and Georgia in the energy sector went into tion in July 2016 was down 33.9% y/y, as hydrogen- 5.2/kWh, with 100% of imports (10.5 GWh) coming The newly adopted Service Quality Rules (“the effect in September 2016. The agreement envisages eration was enough to meet the increased demand from Azerbaijan. Rules”) provide quality standards for utilities and collaboration towards advancing the regional elec- will go into force on January 1, 2017. The Rules dic- tricity market, including enhanced trans-border tate standard response times to customer com- infrastructure (400 kV Akhaltsikhe-Tortum and plaints and requests. They also require notifying 150 kV Batumi-Muratli), sharing of experience, and subscribers about planned service interruptions promotion of green energy. The working group and the outlining of a clear timeframe for handling that was created under the charter is supposed to unplanned outages. When a utility company can- develop an action plan by the end of 2016. The not resolve an unplanned outage in less than 12 action plan will include a detailed roadmap on how hours, it must submit a detailed explanation to the Turkey and Georgia will develop the necessary commission. If customer complaints/requests are trans-border infrastructure to enhance trade poten- not satisfi ed within a specifi ed timeframe, the cus- tial and facilitate development of longer term inter- tomers are automatically reimbursed according to national off-take agreements that would be in common standards. The Rules reward utilities that compliance with ENTSO-E standards. Georgia and deliver superior performance across three pillars Turkey also plan to coordinate efforts on synchro- – out-of-service notifi cations, handling unplanned nizing Georgia’s export capacity auctions. outages, and timely response at the utility call center – by increasing their regulatory cost base, TBILISI CONSUMPTION REMAINS which translates into increased revenue for the THE LEADING DRIVER OF DOMESTIC utilities. ELECTRICITY CONSUMPTION GROWTH Domestic consumption increased 8.1% y/y in August GARDABANI-2 CCPP CONTRACTED TO 2016, with DNOs being the major growth drivers. COMMENCE OPERATIONS IN 2020 DNO consumption increased 7.2% y/y, with the Agreements were signed at the end of September greater Tbilisi area (Telasi subscribers) posting an for the development of the 230 MW Gardabani-2 outsized 22.3% y/y growth rate. Usage of Energo- CCTP. An implementation agreement was signed Pro subscribers was fl at (+0.3% y/y), while Kakheti by Gardabani Thermal Power Plant-2, GOGC, and Energy Distribution usage was up 6.4% y/y. Con- ESCO. An EPC agreement was signed by Garda- sumption of eligible consumers was up 11.3% y/y, bani Thermal Power Plant-2 and China Tianchen albeit from a very low base in August 2015 (-53.6% Engineering Corporation (TCC). Construction of y/y). Consumption of Georgian Manganese drove the CCTP will be funded by equity from GOGC the growth, with consumption up 25.3% y/y. Nota- and debt from Chinese banks, with negotiations bly, GM’s consumption is still 41.9% lower than the GEORGIA TODAY OCTOBER 18 - 20, 2016 BUSINESS 9 ANTARECO Accounting and Financial Advisory Company Enters Georgian Market

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in Europe and beyond. The company the Georgian market. BY NINO GUGUNISHVILI operates in the Czech Republic, , During the opening event the repre- , Gibraltar, , Latvia, sentatives of ARENA TAX and ANTAR- Malta, Mexico, New Zealand, Poland, ECO gave presentations of their ser- ew accounting services Romania, South Africa, Slovakia, Spain, vices and discussed with representatives and fi nancial advisory the United States and the United King- of Georgian businesses. Journalists, company ANTARECO dom. This year it has opened two the representatives of the Polish presented itself in Radis- branches: one in Madrid and is now embassy in Georgia and the represent- son Blu Iveria Tbilisi adding the ANTARECO Georgia branch atives of the International Chamber of recently.N to their portfolio. Commerce ARENA TAX Group is one of the big- “We provide services tailored to our “The company is working very actively gest teams of tax advisors and account- partner’s needs, we provide accounting with international clientele, some of ing specialists in the CEE working mostly services, management reporting, super- them present in Georgia, and that was for fi nancial service companies, equipped vision and accounting consultancy,” the main reason for the company’s deci- to provide comprehensive tax, legal, Teona Makasarashvili, Head of ANTAR- sion to strengthen its presence in the business and accounting solutions. The ECO Georgia told GEORGIA TODAY. country through opening its branch in company has a tax advisory, accounting “Financial institutions and international Tbilisi,” said Michał Musielak, “Arena and accounting advisory competence businesses, are seen as a major segment Tax Group CEO. “Our goal is to have a and a considerable experience in advis- for ANTARECO operations.” strong presence in Georgia, to be a ing international companies. Makasarashvili also noted the fl exibil- regional hub for Georgia, Armenia and ANTARECO, together with the licensed ity and ease of communication within Azerbaijan, and to provide accounting tax advisory ARENA TAX, are entities the company’s head offi ce and the newly and tax support to the multiple fi nancial which belong to Arena Tax Group. opened Georgian branch. The compa- industries that are very fast developing Antareco Georgia’s main scope of ser- nies that are already on ANTARECO in this country,” he added. vices is fi nancial advisory, accounting Georgia’s client list are mostly interna- The company positions itself as pro- services, payroll and fi nancial reporting. tional, with an established history of active, experienced and innovative, with Together with Arena Tax Group, cooperation with ARENA TAX GROUP, the expertise to provide services inter- ANTARECO provides its services from which in turn gave a dynamic start to nationally, while implementing complex its Warsaw headquarter in 15 countries the company, providing its services to projects locally. GEORGIA TODAY 10 BUSINESS OCTOBER 18 - 20, 2016 Russian Ministry International Community's of Transport to Set Assessment of October 8 New Border Taxes Parliamentary Elections

n October 9, Georgian For- istered and, in general, the fundamental commitments of the EU-Georgia Asso- eign Minister Mikheil rights of citizens were respected. ciation Agreement,” they said. Janelidze held a meeting They positively assessed the accuracy Meanwhile, the United States congrat- with representatives of the of voter lists and commended the ulated the people of Georgia on a com- OSCE Offi ce for Demo- increased confi dence of electoral stake- petitive and well-administered October Ocratic Institutions and Human Rights, holders in this regard. 8 elections which confi rmed Georgia as OSCE Parliamentary Assembly, NATO They further noted the pluralistic media a leader of democratic reform in the Parliamentary Assembly, and heads of environment in the country and engage- region. the European Parliament Election Obser- ment of national minorities in both pro- “The United States looks forward to vation Delegation, who had come to portional and majoritarian lists. continuing our close cooperation with Georgia on the invitation of the Georgian The work of the Central Election Com- Georgia on a common agenda that Foreign Ministry. mission at all levels was assessed as advances Georgia’s political and eco- The sides spoke about the pre-election professional and timely. It was also noted nomic development and its aspirations environment and the election process. that the Central Election Commission to integrate into Euro-Atlantic institu- Representatives of the international enjoyed high confi dence among electoral tions,” US representatives said. organizations emphasized that the elec- stakeholders. Minister of the Federal Republic of tions were conducted in a peaceful and The International Republican Institute Germany, Frank-Walter Steinmeier, noted competitive environment and that the (IRI) made a special note of the growing that, with these elections, Georgia has fundamental rights of Georgian citizens role of women in the electoral process, once again demonstrated the maturity were fully observed. They added that including through participation in the and functionality of its young democracy. these elections can be seen as a tremen- election commissions. “The elections were well organized and dous step towards consolidation of Overall, the elections were evaluated met European standards; Georgian vot- category (passenger or cargo), while democracy. as a great step forward in the process of ers clearly showed that they continue to BY NATIA LIPARTELIANI for rail transport according to cargo Mikheil Janelidze thanked the repre- consolidation of democracy in the coun- endorse a determined policy of rap- volume. sentatives of the international commu- try. prochement with Europe and the asso- The exact mechanism for tax admin- nity for their interest in Georgia and for According to the assessment of the ciated reforms in a large majority,” he he Russian Ministry of istration is yet to be announced. The their active monitoring of the processes. delegation of GUAM, the elections were said. Transport plans to estab- Russian media reported that the new He added that their involvement ensured free and fair and held in accordance with Foreign Offi ce Minister of United King- lish new taxes on border tax rules are expected to be launched the transparency of the elections. the OSCE and the Council of Europe dom on Europe and Americas, Alan crossings, reports Russian in the second half of 2017. More than 1400 international observ- standards. Duncan, congratulated the Georgian ‘Kommersant.’ The money Shipping companies say that the addi- ers from 55 organizations and institutions Despite several incidents, the interna- people on conducting the fi rst round of Treceived from the taxes will be used tional border taxes will cause a tariff monitored the October 8 parliamentary tional observers, including the delega- parliamentary elections. He agreed with for developing and improving border increase, which will, in turn, increase elections. tion of the National Democratic Institute the assessment of the OSCE Offi ce for infrastructure and will go towards par- the market for products. This might The observers unanimously note that, (NDI), underlined that overall, these Democratic Institutions and Human tial compensation of maintenance costs. negatively infl uence Georgian export in general, the elections were held in a facts did not interfere with the national Rights and urged all political leaders to At the fi rst stage, taxes will be paid to Russia as Russia is among it most peaceful and competitive environment outcome. respect the will of the people of Georgia at road and rail checkpoints. The min- important trading partners. In January- and expressed the will of the Georgian According to the statement of the Head and demonstrate their commitment to istry has set measurements for the August 2016, Russia's share in total people. According to the assessment of of the NATO Parliamentary Assembly, the democratic process. determination of taxes for vehicles by exports for Georgia was 9 percent. observers, the existing legislative frame- with these elections Georgia has reaf- The Ministry of Foreign Affairs of Lat- work of Georgia provides a means for fi rmed its status as a leader of democratic via noted that the elections ensured a the conduct of democratic elections. transformation in the region. He also democratic process, were well-admin- The joint statement of the OSCE/ stressed that the elections had encour- istered, and that political competition ODIHR, NATO Parliamentary Assembly, aged those people who support Georgia’s was present, and fundamental rights and Parliamentary Assembly of the Council Euro-Atlantic integration. freedoms were observed. of Europe, European Parliament and the High Representative of the European Along with Latvia, the government of OSCE Parliamentary Assembly empha- Union for Foreign Affairs and Security Spain also congratulated Georgia on the sized that the elections were well admin- Policy, Federica Mogherini, and Com- holding of successful elections. They missioner for the European Neighbor- affi rmed their strong will to deepen co- hood Policy and Enlargement, Johannes operation between the two countries Hahn, made a joint statement regarding and their support in strengthening Geor- the parliamentary elections held in Geor- gia-EU relations with the full implemen- gia. The statement confi rms the support tation of the EU-Georgia Association of the European Union towards Georgia’s Agreement. stable, successful and democratic future. Minister of Foreign Affairs of the Repub- The representatives of European Union lic of Lithuania, Linas Linkevicius, also The elections reaffi rmed their commitment to a stable, reacted to the parliamentary elections, democratic and prosperous future of welcoming the determination of Geor- have proved that Georgia. gian people and the government to walk “Once the electoral process has been the path of a stable and functioning democracy is completed, the European Union looks democracy. forward to working with the democrat- A large number of the international stronger in ically elected new Parliament and Gov- observers are to remain in Georgia to ernment to deepen the political and monitor the second round of the major- Georgia economic relations based on the joint itarian elections.

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Pick up a copy of Georgia Today Education at any BIBLUS shop or phone 229 59 19 Price: 2 Gel GEORGIA TODAY OCTOBER 18 - 20, 2016 POLITICS 11 Former Diplomat Hopes Era of Messiahs Soon to End in Georgia

are also many others. It is not only about the Geor- respect a great deal. I would like to see us move Kenneth Yalowitz, former gian government wanting to be westward looking. past what I call ‘messiahs;’ two larger-than-life fi g- US Ambassador to Georgia The Georgian people, country’s institutions, non- ures who are off stage, but whose presence is still governmental organizations, the business commu- very much felt,” said Yalowitz. nity, civil society – the country as a whole - wants He went on to express hope that one day to look fowards, and I think this will continue,” Georgia will “move to a system of orderly, Coffey said. transparent, regular governance, in which Kenneth Yalowitz, former US Ambassador people who are elected do their jobs, to Georgia, agrees that Georgia will stay and are not looking over their shoulder committed to its western aspirations regard- for guidance from somewhere else. I less of the parties in parliament. “I do not think it is very important that people think it is a setback, but I regret it. I who were leaders in the past move would have liked to have seen these to the side. We do this in the two parties explicitly in parliament, United States all the time. We but I think te trajectory of Geor- have elections, those who lose gia is clear and this election move on and go off into the sun- confi rmed it,” stated Ambassador set and do something else. That Yalowitz. is what I would like to see in While praising the elections as Georgia. I would like to see the democratic, the former diplomat Georgian Dream government spoke about a challenge which and its leadership really take step forward for Georgian democracy, Coffey seems to be identical for two of full responsibility and imple- BY IA MEURMISHVILI, VOICE OF believes it would also position Georgia more advan- the major parties in the country. ment the economic and polit- AMERICA, GEORGIAN SERVICE tageously with NATO. “For so long NATO has been “Georgia has a very effective Luke Coffey, Director of the Allison ical reforms that are necessary divided internally about how to approach Georgia Prime Minister and a good Pres- Center for Foreign Policy Studies at and move forward,” Ambassa- and how to integrate Georgia into the Alliance. ident - both of whom I know and The Heritage Foundation dor Yalowitz concluded. ost of the international observers Part of this compromise in my opinion has been claim that the October 8, 2016 to insert language in every NATO Summit declara- Georgian parliamentary elections tion saying that progress towards NATO would were free and fair. Because none depend on an upcoming election,” said Coffey. of the parties managed to get 51 By conducting the October 8 elections in a free Mpercent of the votes, there will be a run-up election and fair manner, Georgia demonstrated to the West in coming weeks. that its democracy is advancing. “After a country Director of the Allison Center for Foreign Policy has so many free and fair elections, at what point Studies at The Heritage Foundation, Luke Coffey, does it seem odd - if not unnecessary - to keep says that all parties involved in the elections should mentioning it in the summit declarations. If any- realize that the election is a process, not a single thing, I think it is disrespectful to the Georgian event. “It is really important that all parties involved people, who have participated and voted in the in the electoral process remain committed to a free, selections.” fair, safe and open process which allows all sides Two of the most western-oriented parties in to contest these run-up elections freely and fairly,” Georgia - Free Democrats and the Republican Party he told VOA Georgia. “By all accounts, it was a - could not overcome the fi ve percent threshold success, but it is not over yet,” said Coffey, adding, necessary to gain seats in the parliament. Some in “There is potential that there could be some local Georgia, as well as in the West, think that this would tensions rising that could put in jeopardy the be a setback for Georgia’s western orientation. upcoming run-up elections.” Coffey disagrees. “It is unfortunate because they While successful and peaceful elections were a are such strong supporters of the West, but there Second Round of Elections Scheduled for October 30 in Georgia

Movement – 27.111 percent and the ultranationalist, BY THEA MORRISON pro-Russian Alliance of Patriots – 5.006 percent. Georgian Dream and United National Movement candidates are expected to face each other in run- eorgia’s Central Election Commission offs in 44 districts. (CEC) announced that the second Georgia has a 150-seat parliament, with 73 MPs round of parliamentary elections will elected in majoritarian, single-mandate constitu- be held on October 30 in 50 single- encies. The remaining 77 seats are awarded to MPs mandate constituencies, 18 of which elected in proportional voting based on party lists. Gare located in the capital Tbilisi. Voting will be re-run at one polling station in Marneuli, south of Tbilisi, and in three precincts in Zugdidi in western Georgia. The initial election results in each were invali- dated by the CEC after violent clashes marred the voting process on October 8. A group of people attempted to raid a polling station in the Marneuli region village of Kizilajlo. In Zugdidi, two precincts were attacked during the fi rst round in the village of Jikhashkari. In both locations, the attackers attempted to seize the ballot boxes while the polls were still open. Three political parties crossed the 5 percent threshold to gain seats in the next parliament, including the ruling Georgian Dream with 48.668 percent, the main opposition United National

PUBLISHER & GM Journalists: Photographer: ADDRESS Reproducing material, photos George Sharashidze Tony Hanmer, Irakli Dolidze 1 Melikishvili Str. and advertisements without Zaza Jgarkava, Tbilisi, 0179, Georgia prior editorial permission is COMMERCIAL Maka Bibilashvili, Layout: strictly forbidden. DEPARTMENT Karen Tovmasyan, Misha Mchedlishvili Tel.: +995 32 229 59 19 The author is responsible for Commercial Director: Dimitri Dolaberidze, E: [email protected] all material. Rights of authors Iva Merabishvili Maka Lomadze, Webmaster: F: GeorgiaToday are preserved. The newspaper Marketing Manager: Tim Ogden, Joseph Larsen, Sergey Gevenov is registered in Mtatsminda Mako Burduli Vazha Tavberidze, ADVERTISING & district court. Nugzar B. Ruhadze, Circulation Managers: SUBSCRIPTION EDITORIAL DEPARTMENT: Nino Gugunishvili, David Kerdikashvili, +995 595 279997 GEORGIA TODAY Editor-In-Chief: Thea Morrison, David Djandjgava E-mail: marketing@ Reg. # 06/4-309 Katie Ruth Davies Natia Liparteliani georgiatoday.ge GEORGIA TODAY 12 SPORTS OCTOBER 18 - 20, 2016 Batumi International Beach Rugby Festival Short-listed for Rhino Grassroots Award

remarkable youth development program rugby friends Kakha Mkheidze, President BY KATIE RUTH DAVIES in Cambodia. The full list is: of GBRU and Zura Dugladze “Dugi.” 1. The Batumi International Beach They were later joined in their endeav- Rugby Festival (Georgia). ors to spread the sport more widely by he Batumi International 2. The Cronk-Cunis National Under 21 Anthony Lynn in 2010 who has been back Beach Rugby Festival has Festival (England). and forth to Georgia since and who is been short-listed for the 3. Kampuchea Balopp (Cambodia). responsible for starting the Bulldogs UK Rhino Grassroots Rugby 4. The Los Vegas Invitational Tourna- and bringing them to play in Georgia. Award which is to be pre- ment (USA). Although the Union is active all year Tsented at the World Rugby Conference 5. The Piotrowice Nyskie International round and hopes to be more so in future and Exhibition in London in November. Rugby Festival (Poland). as beach sports gain more support inter- The list features a variety of events and Rhino is exhibiting at World Rugby’s nationally, the main event of the year is organizations with a wide geographical ConfEx for the third time on November the annual Batumi Beach Rugby Festival spread – social rugby events in Georgia, 14th and 15th at the Hilton London Metro- which is held in a purpose-built stadium the USA, Poland and the UK, and a pole Hotel, and is an Offi cial Supporter on the beach in Batumi. The tournament has a growing inter- national following with the Bulldogs from the UK this year having made their third consecutive visit, and teams from Russia and Turkey giving the competi- tion some added interest. The 2017 Festival will be held to coin- cide with the 20th Anniversary of TBC Bank and the Jazz Festival which they sponsor annually. The Jazz Festival hosts stars of the international jazz scene for a ten day extravaganza of seaside music. The Batumi Beach Rugby Festival is sponsored by the Georgian Rugby Fed- With Berkan Aras, Zura Dugi, Emil Aliev, Tamir Alievand Izzettin Çavus. eration, Batumi City Hall, the Georgian Ministry of Sports, TBC Bank with of this year’s event. The Rhino Grass- Beach Rugby Union (GBRU), told GEOR- Rhino Rugby as a proud supplier of roots Rugby Award will be presented to GIA TODAY. match balls and kit for the organizers the winning organization following a Due to celebrate its 10th anniversary and referees. Rhino sponsored panel session on ‘Sup- next year, the Georgian Beach Rugby “In terms of players, in the fi rst year porting Grassroots Rugby’ which starts Association was set up in 2007 on the media representatives took part, and it at 12.30pm on Monday 14th November. initiative of a number of veterans of is still predominantly for amateurs. How- “It’s a great honor to receive the nom- Georgian rugby teams- older players ever, we have also had years when fi nances ination and I have a lot of gratitude to who couldn't play anymore but who still allowed professionals to play,” Dugladze everyone who helped along the way- it's wanted to be involved with rugby. told GEORGIA TODAY. “Next year we Beach Rugby Champions — with Bagashvili Odisei-giorgi, Nikoloz Aptsiauri, Gaga Maisuradze, Rati Urushadze, Zura Dugi, Gio Meladze, Giorgi Kheladze, Giorgi Iliaevi a great honor for Georgian rugby,” Zura The enthusiasm and passion for the expect to have at least 10 men’s teams and Maxo Qushashvili. Dugladze, Vice President of the Georgian game was shared in particular by old and 4 women’s teams.”