Georgia: 9Th Best in Global Business Ranking

GEORGIAN WINE EXPERIMENTS HISTORY, DOWNLOADED: GEORGIA HOPES TO BEAT THE COLD A NEW APP BRINGS INSIGHT NEW RAILWAY BRINGS TO GEORGIA’S TOURISM SITES ECONOMIC GROWTH

Investor.geA Magazine Of The American Chamber Of Commerce In Georgia ISSUE 60 DEC.-JAN. 2017-18

Georgia: 9th Best in Global Business Ranking

DECEMBER-JANUARY/2017-18 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.

10 Georgia Ranked 9th in Annual Doing Business Report

12 Government Reduces Ministries, Strengthens Economy Ministry

13 Georgian Government Unveils New Pension Plan

13 Georgia Takes Chair at International Open 16 Government Organization Tbilisi will hold the chair for a year. The country has been praised for its steps toward public accountability

16 Georgia Hopes New Railway Will Bring Economic Growth The long-anticipated Baku-Tbilisi-Kars railway is now up and running. Georgian officials believe the new route will be a boost to the economy in terms of transit cargo, tourism and employment.

18 Investment Climate Attracting Indians to Georgia Indian investors are increasingly opening restaurants, 18 shops and financing films in Georgia.

21 From Wild Herbs to Pet Furniture: A Look at Georgia’s Widening Export Market

24 Creating a Biomass Industry: Efforts to create a cleaner fuel

30 History, Downloaded: A New App Brings Insight to Georgia’s Tourism Sites

34 Georgian Wine Experiments to Beat the Cold Wine lovers eager for a warm drink are pushing Georgian wineries and winemakers to adapt mulled wine recipes for local grapes. 21 37 Snow, Sun and Skiing: A Guide to Georgia’s Winter Resorts

38 The New Silk Road: The US needs a free trade deal with Georgia A reprint of the article AmCham Georgia President Michael Cowgill wrote for The Hill

39 AmCham Goes to Washington

41 NEWS ...... 41

4 | Investor.ge DECEMBER-JANUARY/2017-18

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DECEMBER-JANUARY/2017-18DECEMBER-JANUARY/2017-18 Investor.geInvestor.ge | 5 EBRD FORECASTS FASTER Turkey opened on October 30. INVESTMENT GROWTH FOR GEORGIAN The railway will “change the current ECONOMY economic reality, providing totally new The European Bank for Reconstruc- economic opportunities in the region NEWS tion and Development (EBRD) has said DQGEH\RQG´*HRUJLDQ3ULPH0LQLVWHU the Georgian economy is growing faster Giorgi Kvirikashvili said at the railway’s INVESTOR.GE PROVIDES than expected in 2017, a trend that is opening ceremony in Baku. A BRIEF UPDATE likely to continue in 2018, agenda.ge “It can be openly said that a new Eur- ON INVESTMENTS reported on November 9. asian bridge has been founded today that AND CHANGES The economy will grow by 4.5 per- will connect not only our economies, but IN GOVERNMENT cent in both 2017 and 2018, according to also our citizens, and improve and boost POLICY THAT COULD the EBRD’s latest forecast. their welfare,” he added. The presidents of Azerbaijan and IMPACT THE BUSINESS “The economy of Georgia is ac- celerating on the back of strong export Turkey, together with the prime ministers ENVIRONMENT. THE performance and burgeoning tourism. In of Georgia, Kazakhstan and Uzbekistan INFORMATION IN THIS WKH¿UVWKDOIRI*'3JURZWKSLFNHG attended the opening. ISSUE WAS TAKEN up to an estimated 4.5 percent year-on- Agenda.ge reported that the railway FROM AGENDA. year following two years of below-3 is expected to carry nearly 1 million pas- GE, A GOVERNMENT percent growth in 2015-16,” the revised sengers and 6.5 million tons of freight a SUPPORTED WEBSITE, report said. The report also noted that year. Eventually it will be able to trans- AND OTHER SOURCES. the Georgian lari had appreciated against port between 15 and 17 million tons of the U.S. dollar until mid-October, in part freight a year, according to media reports. GXHWRLQFUHDVHGIRUHLJQFXUUHQF\LQÀRZV from exports and tourism, as well as the GEORGIA HOSTING SECOND SILK government’s tighter monetary policy ROAD FORUM and a resurge in remittances, which grew +LJKUDQNLQJRI¿FLDOVIURPRYHU E\SHUFHQWLQWKH¿UVWQLQHPRQWKV countries and representatives from over of the year. “A recovery in consumption, 500 companies attended the second investment in infrastructure and strong annual Silk Road Forum in Tbilisi on performance of the hospitality sector 1RYHPEHU*HRUJLDQ3ULPH0LQ- are expected to contribute to growth,” ister Giorgi Kvirikashvili underscored the EBRD stated. Agenda.ge quoted the the country’s commitment to developing Georgian Economy Ministry as saying its strategic location at the crossroads of that Georgia will enjoy “one of the fast- East and West in his opening remarks. est economic growths among the Eastern The forum, called Belt and Road, pro- and Central European and Central Asian vides a platform for regional countries countries in the years to come.” and business partners to discuss potential Export grew by 28.3 percent and the opportunities in four areas: transport, income received from tourism increased energy, trade and business-to-business E\SHUFHQWLQWKH¿UVWQLQHPRQWKV contacts, agenda.ge said. of the year, the report said, citing Min- The annual event is a joint effort by istry data. the Georgian and Chinese governments and the Asian Development Bank, it not- BAKU-TBILISI-KARS RAILWAY ed. The goal is to “promote the sharing OPENS of ideas, experiences and expertise along The long-awaited railway line con- the revived Silk Road and beyond,” the necting the Caucasus to Europe via report said.

6 | Investor.ge DECEMBER-JANUARY/2017-18 Republic new multifunctional event venue

Rose Revolution Square and grand occasions of any kind. t.: +995 32 2 402 200 www.republic.ge

DECEMBER-JANUARY/2017-18 Investor.ge | 7 GEORGIA WINE EXPORTS GROW OLDEST EVIDENCE OF WINE “SECRET SANTA” TO PROMOTE 59 PERCENT FOUND IN GEORGIA - LOCAL BUSINESSES Georgian wine exports have grown STUDY SAYS %DQNRI*HRUJLDDQG*HRUJLD3RVW 59 percent in the first ten months of Scientists have found the oldest have announced the second annual Se- 2017 compared to the same period last known traces of wine at two neolithic cret Santa program for small Georgian year, agenda.ge reported on November sites near Tbilisi, media reported on manufacturers. Small businesses can reg- FLWLQJRI¿FLDO¿JXUHV November 14. ister for the program, which encourages Brandy exports are also up—the TKH¿QGLQJVZHUH¿UVWSXEOLVKHGLQ people to buy Georgian products as New country exported over 13 million bottles DOHDGLQJVFLHQWL¿FMRXUQDO3URFHHGLQJV Year gifts, at business.secretsanta.ge. of Georgian brandy to 22 countries, a 91 of the National Academy of Sciences. This is the second year for the Se- percent increase compared to the same Grape seeds and traces of acid found cret Santa program: last year more than period last year. on pieces of clay vessels at the sites were 60,000 people participated, according to The country’s chacha exports were dated to 6000-5800 BC. Bank of Georgia. The program allows up 198 percent compared to 2016, the This makes them 600 years older than people to purchase gifts—and receive report noted. WKHSUHYLRXVO\HDUOLHVWNQRZQ¿QGLQJLQ a gift in return—from an anonymous The country earned a total of $222.4 Iran’s Zagros Mountains. Secret Santa, and support Georgian busi- million from the export of all three al- The samples were taken from two nesses in the process. coholic beverages, a 50 percent increase sites in southern Georgia, not far from This year’s Secret Santa program compared to the same period last year. the capital Tbilisi. starts on December 1.

8 | Investor.ge DECEMBER-JANUARY/2017-18 DECEMBER-JANUARY/2017-18 Investor.ge | 9 eorgia has been named the ninth “With tangible reforms implemented Georgia country in the world for ease of in three key areas this year—making Gdoing business, according to electricity more affordable, strengthen- the World Bank Group’s annual Doing ing minority investor protections, and Ranked 9th Business Report. making resolving insolvency easier— The report ranks 190 countries on Georgia continues to be a top reformer a variety of issues that affect opening, in the Europe and Central Asia region, in Annual running and closing a business. and is poised to accelerate inclusive and Georgia improved its score, and sustainable growth,” Mercy Tembon, Doing was a top performer among European World Bank Regional Director for the and Central Asian countries. Today it South Caucasus, said in a press confer- is ranked above Sweden and just below ence about the report. Business Norway. Georgian Minister of Economy Giorgi Gakharia said the country has THE REPORT NOTED GEORGIA’S become a regional leader, the report said. Report PROGRESS IN FIVE AREAS: “Georgia has become the regional Starting business: 4th place (8th leader, where the phrase ‘ease of doing in 2017) business’ is realistic and accurately re- Getting electricity: 30th place ÀHFWVWKHEXVLQHVVFOLPDWHLQRXUFRXQWU\ (39th in 2017) The Doing Business report is one of the 3URWHFWLQJPLQRULW\LQYHVWRUV most prestigious rating systems, and see- 2nd place (7th in 2017) ing Georgia among its top ten countries Enforcing contracts: 7th place is a great incentive for international (16th in 2017) business circles to direct their vectors Resolving insolvency: 57th and investments towards Georgia,” place (106th in 2017) Gakharia said.

10 | Investor.ge DECEMBER-JANUARY/2017-18 DECEMBER-JANUARY/2017-18 Investor.ge | 11 Government Reduces Ministries, Strengthens Economy Ministry

Finance Minister Mamuka Bakhtadze Economy Minister Dimitry Kumsishvili

tructural reforms announced by ter. Chkhenkeli was previously Deputy PRUHPRGHUQVWDWHDQGÀH[LEOHVWDWHDS- *HRUJLDQ3ULPH0LQLVWHU*LRUJL Rector of the Tbilisi State University paratus, which will reduce administrative SKvirikashvili will expand the and Dean of Natural Sciences and En- expenses,” Kvirikashvili said. portfolio of the country’s Ministry of gineering School at Georgian American “Our style is to make sure changes Economy and Sustainable Development University. are as painless and evolutionary as pos- of Georgia and shutter the Ministry of The changes will streamline bu- sible, and not radical,” he said. (QYLURQPHQWDQG1DWXUDO5HVRXUFHV3UR- reaucracy in the country and help the “This is the rationale behind the tection of Georgia as well as the Ministry JRYHUQPHQWFXWFRVWVDFFRUGLQJWR30 upcoming changes. I am convinced that of Sport and Youth Affairs of Georgia. Kvirikashvili. these reforms and changes will make a The Ministy of Economy and the “The planned changes will serve tremendous difference in our country’s Ministry of Agriculture of Georgia will greater progress, of shaping an even progress and development,” he added. take over parts of the environmental THE MEMBERS OF THE NEW CABINET ARE: portfolio; the Ministry of Education and Dimitry Kumsishvili, First Vice Prime Minister, Minister of Economy and Sustainable Science of Georgia is expanding to in- Development of Georgia clude youth affairs issues and the former Mikheil Janelidze, Vice Prime Minister, Minister of Foreign Affairs of Georgia Ministry of Sport will be merged with Giorgi Gakharia, Vice Prime Minister, Minister of Internal Affairs of Georgia the Ministry of Culture and Monument Mamuka Bakhtadze, Minister of Finance of Georgia 3URWHFWLRQRI*HRUJLD Mikhail Chkhenkeli, Minister of Education and Science of Georgia The change reduces the number of Ilia Eloshvili, Minister of Energy of Georgia ministries in the country from 18 to 14. David Sergeenko, Minister of Labor, Health and Social Affairs of Georgia Two new ministers have been Sozar Subari, Minister of Internally Displaced Persons from the Occupied Territories, QDPHGDVSDUWRIWKHUHVKXIÀH0DPXND Accommodation and Refugees of Georgia Bakhtadze is replacing Dimitry Kum- Levan Davitashvili, Minister of Agriculture of Georgia VLVKYLOLDV¿QDQFHPLQLVWHU%DNKWDG]H Zurab Alavidze, Minister of Regional Development and Infrastructure of Georgia previously worked as the head of the Mikheil Giorgadze, Minister of Culture and Monument Protection of Georgia Georgian Railways. Kumsishvili has Levan Izoria, Minister of Defense of Georgia taken over the economy portfolio. Thea Tsulukiani, Minister of Justice of Georgia Mikhail Chkhenkeli has replaced Ketevan Tsikhelashvili, State Minister of Georgia for Reconciliation and Civic Alexandre Jejelava as education minis- Equality he Georgian government is pre- favor of employed and self-employed Georgian paring to overhaul the country’s people,” explained Deputy Economy Tpension system to create a model Minister Nino Javakhadze. that will encourage people to save more She stressed that pension contribu- Government for their retirement. tions will be tax free. The new system, known as an ac- “I believe that the contribution cumulated pension, will exist in parallel of the state is very important in this Unveils New to the current, government-provided process: in addition to the 2 percent pension. contribution from the state, which will Pension Plan ³7KHGUDIWODZLQYROYHVDGH¿QHG be implemented in favor of participants, contribution pension scheme, in particu- the contribution, the accrued interest and THE GEORGIAN ECONOMY lar - each employee, employer and the the pension withdrawal will be exempt MINISTRY PRESENTED THE pension scheme agency makes a contri- from income tax. This is a big advantage GOVERNMENT’S PLANS TO bution of 2 percent of gross volume of of what the state is doing to encourage CHANGE THE COUNTRY’S the employee’s income to an individual people to participate in this system,” PENSION SYSTEM ON 31 retirement account. Javakhadze said. OCTOBER. THE NEW PLAN CALLS FOR CREATING A PENSION FUND As for the self-employed, they will “That is, the contribution of the state AND ESTABLISHING A SECOND make a deposit of 4 percent of their is of two kinds - 2 percent and the ben- TYPE OF PENSION, KNOWN AS income, and the state will additionally H¿WVWKDWWKHSDUWLFLSDQWVDUHRIIHUHG7KLV AN ACCUMULATED PENSION. transfer 2 percent of taxable income in is a pretty good offer by the state and it is

DECEMBER-JANUARY/2017-18 Investor.ge | 13 hardly ever found in other countries of the world,” she added. The Minis- try plans to send a draft of the bill to GEORGIA TAKES CHAIR parliament by the end of the year; it is estimated that the new system will AT INTERNATIONAL be launched from the third quarter of 2018. The Georgian government has been working on the new pension OPEN GOVERNMENT program for several years; several donor organizations have been involved in the process - World Bank, ORGANIZATION Asian Development Bank, USAID TBILISI WILL HOLD THE CHAIR FOR ONE YEAR. G4G, International Monetary Fund, THE COUNTRY HAS BEEN PRAISED FOR ITS STEPS French Development Agency (AFD). Highlights from the proposal TOWARD PUBLIC ACCOUNTABILITY ALTHOUGH (taken from agenda.ge): TRANSPARENCY AND DATA EXPERTS CAUTION Employed individuals up to THAT MORE WORK IS NECESSARY. the age of 40 will be automatically enrolled in the program. 3HRSOHRYHUWKHDJHRIFDQ opt into the program if they want. INGE SNIP SERVING THE PUBLIC The pension program covers In an open letter about the Georgian eorgia is now the chair of the government’s commitment to creating an citizens of Georgia, foreign citizens international Open Government open government, PM Kvirikashvili wrote permanently residing in Georgia or GPartnership (OGP), taking over that “engaging directly with our citizens those having no citizenship but are from France in September 2017, and will has given us a better understanding of lead the organization until October 2018. employed or self-employed and hav- the shortcomings we need to overcome.” The multilateral initiative was founded He noted that Georgia’s successful ing income. in 2010, and currently counts over 70 reforms have led to new opportunities at The monthly input of an em- national governments (representing a home and internationally. ployed person, both in private and WKLUG RI WKH ZRUOG·V SRSXODWLRQ ÀIWHHQ UNDP Deputy Resident Representa- subnational governments, seven multilat- public sectors, will equal two percent tive in Georgia Shombi Sharp praised the eral bodies, and thousands of civil society government’s reforms. of their untaxed monthly salary. organizations. “UNDP has been proud to support Self-employed people can use “Trust is at the very heart of OGP’s Georgia building its well-deserved repu- the program or not; it is up to them endeavors, and we look forward to work- tation in governance reforms for over ing with our new co-chairs to increase the to decide. a decade, from the Public Service Hall breadth and depth of open government concept to more recently helping the If a self-employed person de- initiatives,” said OGP CEO Sanjay Pradhan, ServiceLab imbed citizen co-creation cides to accumulate the pension, they who was quoted in press release. into the design and delivery of more ef- will have to contribute four percent The partnership works to promote fective, innovative public services. And transparency, increase civic participa- of their monthly incomes. we worked with the Georgian Parliament WLRQ ÀJKW FRUUXSWLRQ DQG KDUQHVV QHZ on an ambitious action plan to increase The state will contribute two technologies to make governments more citizen engagement, for example through percent of the employed person’s open, effective, and accountable. e-petitions, which was recognized by the taxed salary to their pension account. And Georgia was awarded the co- global OGP ‘Champions Award’ in 2015,” chair position due to its commitment to Sharp told Investor.ge. 3HQVLRQFRQWULEXWLRQVZLOO improve government transparency. “Chairing the OGP now is a great be accumulated in a pension fund, The country’s progress has been opportunity for Georgia both to share its which will be invested by the state; noted. Transparency International ranked many achievements with other countries, earnings on the investments will Georgia 44th out of 100 countries in its while at the same harnessing new oppor- &RUUXSWLRQ3HUFHSWLRQLQGH[DVLJQLÀFDQW tunities in the area of open data.” be paid to those who hold pension improvement compared to previous years The country will have four main strate- accounts. where it continuously ranked above 50th. gic goals during its chairmanship, includng

14 | Investor.ge DECEMBER-JANUARY/2017-18 strengthening citizen engagement and Eric Barrett, a technologist and data SMALL STEPS TO SUCCESS ensuring transparency and combating journalist, has followed the Georgian OGP The Georgian government is working corruption. developments closely over the past few with civil society to make sure its reforms Since joining the OGP membership, years and is cautiously optimistic. “The are making a difference. For instance the Georgia has made several concrete steps Georgian government has made strides, Open Government Georgia’s Forum was to open its data up to the public increasing albeit more slowly than I would like,” Bar- recently created to oversee the govern- its accountability. rett told Investor.ge. ment’s activities related to the OGP and In 2012, the government initiated its But Barrett also mentions that are helps bridge state institutions and civil Transparent Party Financing, a new frame- still some major issues in the manner the society. work that allows citizens to see where the government is working to improve its Keti Tsanava, the National Coordi- ÀQDQFHV RI SROLWLFDO SDUWLHV FRPH IURP transparency. nator of OGP at the Ministry of Justice, ,QSROLWLFDOSDUW\ÀQDQFLDOGHFODUD- He notes that crucial information told Investor.ge that the government is tions, in the form of information provided ZKLFK VRFLHW\ FDQ EHQHÀW IURP LV HLWKHU “continuously developing new strategies by political parties and related statistics, behind an extremely high paywall, not to open up data crucial to understand VWDUWHGWREHVKDUHGRQWKHRIÀFLDOZHEVLWH public at all, or of poor quality. future economic development, improved RI6WDWH$XGLW2IÀFHLQPDFKLQHUHDGDEOH One example is the business registry. accountability, and more. We are working format (in Microsoft excel forms). Prior to the 2012, civil society could access with all government agencies to ensure In 2014 the Supreme Court of Georgia data about registered businesses in bulk, the data is submitted in the right format, started compiling statistics on hearing but after the Public Registry made some but of course this is a learning process, motions regarding operative investigative changes, this data is no longer available and we continue to learn everything day.” activities, in order to ensure transparency for proper analysis. Barratt warned that She added that work on a new ac- and accountability of law enforcement publishing information behind a paywall tion plan, which will be developed with agencies. By completing this commit- “undermines equal participation in using civil society, government agencies and ment, Georgia is one of the few countries that data as a service, whether for ac- international organizations, will start in worldwide publishing these statistics. FRXQWDELOLW\SXUSRVHVRUHYHQIRUSURÀWµ four months.

DECEMBER-JANUARY/2017-18DECDDEECECEMBEMEMMBBER-ERERR-JANJAJANANUUARY/2017-18 Investor.geInvestor.ge | 15 Georgia Hopes New Railway Will Bring Economic Growth

THE LONG-ANTICIPATED BAKU-TBILISI-KARS RAILWAY IS NOW UP AND RUNNING. GEORGIAN OFFICIALS BELIEVE THE NEW ROUTE WILL BE A BOOST TO THE ECONOMY IN TERMS OF TRANSIT CARGO, TOURISM AND EMPLOYMENT.

INGE SNIP The European Union has said that A BILLION-DOLLAR COMPANY PHOTO BY GEORGE SURGULADZE the new rail corridor “coupled with in- Kvirikashvili and other Georgian vestments, improved infrastructure and RI¿FLDOVKDYHSUDLVHGWKHSURMHFWDVD ravelling and trade may have just logistics coordination, will provide better harbinger of future economic growth. become a little bit easier in the connectivity, new business opportunities “I am convinced that the new railway TCaucasus with the opening of a and increased trade.” will drastically change the current eco- new railway route from Azerbaijan to The 846-kilometer-long trade route nomic reality and will put in place brand Turkey via Georgia. can move over one million passengers -new conditions for development both in On October 30, 2017 the Baku- and 6.5 million tons of cargo per year; an the region and beyond,” he said at BTK’s Tbilisi-Kars (BTK) railway opened after increase to 15-17 million tons is expected opening ceremony in Baku. over two decades of planning the new with the planning of a parallel track in “Once fully commissioned, the new trade route. the upcoming years, according to reports. railway route will foster unlocking our Urban planner Giorgi Kankia says the countries’ transit and logistics potential “NEW EURASIAN BRIDGE” project is important on a “global scale.” and further strengthen the region’s trans- The BTK is widely expected to “The importance of the project is of port and trade status.” provide an economic boost for all three global scale, both freight, and passenger Georgia has been heavily investing in countries along its route. transportation,” Kankia says, stressing its transportation and trade infrastructure, *HRUJLDQ3ULPH0LQLVWHU*LRUJL that the international trade resulting from including the country’s state-run railway Kvirikashvili described the BTK as it may lead to further investments in the company. a “new Eurasian bridge.” “The com- country’s railway system. For Georgia, The Georgian Railway, globally the missioning of the new rail route will the BTK is a welcome addition in its wish only state-controlled railway monopoly strengthen the region’s transport and to become an international hub for trade, publicly listed and valued at over $1 bil- trade status... The project will boost and Georgia has been actively pursuing lion, according to the Financial Times, tourism; new jobs will be created,” the opening of free industrial zones along has made major improvements over the Kvirikashvili said. its section of the route. past few years in its development. In

16 | Investor.ge DECEMBER-JANUARY/2017-18 2016, the organization opened a new rail “Today it is too early to speak about economic success from BTK could lead service with four double-decker trains, WKH¿QDQFLDOEHQH¿WVRI%DNX7ELOLVL to better passenger train services, as well. each able to carry 530 passengers and Kars, because it is more of a political “This project will increase the capac- reach a maximum speed of 160 km/h. project then an economic one. Unfortu- ity of Georgian Railways’ infrastructure And the opening of an additional termi- nately for the Georgian side, in recent to carry more freight. It will also mo- nal in Vale, close to the Turkish border, years we have observed a decrease in bilize additional funding for passenger is said to create the potential for more transit cargoes on both the railway and transit service improvements,” he said, transit growth in the region, especially at ports. Therefore the addition of a new adding that this could led to more pro- in terms of coal. railway from today’s perspective can’t gressive railway development. The company’s recent successes have bring any positive outcome for the whole “An urban rail transportation system given it a boost following years of falling Georgian economy,” he said. is absent in Georgia right now,” explains cargo volumes. “But we should be optimists; if we Kankia, who specializes on the economic Analyst Vakhtang Charaia told Inves- will work in the right direction we can EHQH¿WVRIXUEDQWUDQVSRUWDWLRQ tor.ge that if the BTK railway attracts overcome these problems,” Charaia “Commuter rails provides access to new sources of cargo, it will benefit added. many citizens due to its high capacity, Georgia. taking thousands of cars off the roads He warned, however that while it is MORE CARGO, MORE DQGWKHUHIRUHHDVLQJWKHWUDI¿FVLWXDWLRQ possible, it is “a long and complicated PASSENGER ROUTES? in urban centers, and it has an indirect task to achieve.” Urban planner Kankia noted that positive impact on air pollution.”

DECEMBER-JANUARY/2017-18 Investor.ge | 17 Investment Climate Attracting Indians to Georgia

INDIAN INVESTORS ARE INCREASINGLY OPENING RESTAURANTS, SHOPS AND FINANCING FILMS IN GEORGIA.

Darispan Prasher at a Georgian event dedicated to Indian dancing

LIKA JORJOLIANI agreement to start a feasibility study for DORQJZLWK%ULWLVKDQG*HRUJLDQ¿UPVWR a free trade deal between Georgia and construct hydro power plants in Georgia. India was signed in April 2017. 7DWD3RZHULQYHVWHGDURXQGPLOOLRQ ndian investors are coming to For example, JSW Steel partnered dollars in a power project in Georgia. Georgia, attracted by the country’s with Georgian Steel Group Holding Lim- KEC International has been working in Istreamlined laws for opening busi- ited to establish a plant to convert metal power transmission in Georgia for more nesses and the growing tourism industry. scraps into reinforced steel bars in 2009. WKDQ¿YH\HDUV Large Indian companies have long Trans Electrica was founded by But smaller investors—farmers, been interested in Georgia: a bilateral ,QGLDQ¿UP&RQWLQHQWDO&RQVWUXFWLRQ UHVWDXUDWHXUVDQG¿OPPDNHUV²DUHFRP-

18 | Investor.ge DECEMBER-JANUARY/2017-18 ing in larger numbers today, according Georgian universities. restaurants in Tbilisi alone. WR'DULVSDQ3UDVKHUZKRZRUNVDVWKH 3UDVKHUZKRXVHGWRZRUNDWWKH Riju Naniyil recently started a busi- Adviser to the Rector in International Georgian embassy in India, noted that ness in Georgia. He is 30, newly married Affairs at Caucasus International Uni- many Indian farmers left after Georgian and is planning to move his family to versity . law was changed to restrict foreign own- Georgia. His business is a start-up, a While Indian citizens were initially ership of agricultural land. small café-restaurant called Asian Cui- attracted to Georgia for agriculture, today Today, he said, the majority of In- sine, which is located in a prestigious they are coming to open restaurants and dians in Georgia are opening shops and part of Old Tbilisi. retail businesses, as well as to study at restaurants: there are around 20 Indian “I registered my business 11 months

DECEMBER-JANUARY/2017-18 Investor.ge | 19 He notes that Indian cuisine is gain- ing popularity in Georgia, and the restaurant caters to locals as well as Indians and tourists. “Our restaurant employs 50 persons. Right now we are only in Tbilisi, but we want to expand,” he said.

FROM SVANETI TO BOLLYWOOD ,QGLD¶V¿OPLQGXVWU\KDVDOVREHFRPH increasingly active in Georgia, in part thanks to the government’s “Film in Georgia” program, which offers foreign film producers incentives to film in Georgia. 3UDVKHUVDLGKHKDVWDNHQSDUWLQWZR ¿OPSURGXFWLRQVLQFOXGLQJDQ,QGLDQ ¿OP³0DFKLQH´ZKLFKZDVSURGXFHG and directed by two Bollywood producers, the brothers Abbas and Mastan Burmawalla. The second was an Indian thriller— ³0RP´²ZDV¿OPHGLQ6YDQHWL Aromal Vasantha Kumar, the Direc- tor of Roza Rise Multinational Company, decided to establish a business that in- FOXGHV¿OPVLQLWVSRUWIROLRDIWHUFRPLQJ to Georgia as a tourist. “My friends living here told me about their experience,” he said. “When I arrived here, I found that Georgia is a rapidly developing country, has friendly relations with Europe and has received a visa-free regime.” He added that the conditions seemed right to start a business. DJR3ULRUWRWKDW,OHDVHGWKLVDUHD:H He arrived from Dehli two years ago “I opened my own company. The mainly serve students and deliver fast in order to start a business, and initially business climate is very attractive. My food to Indian students. Generally, I sup- planned to open a shoe factory. FRPSDQ\LVPXOWLSUR¿OHG,DPGHDOLQJ pose that my clients are Indian students, But eventually he settled on manag- ZLWKWRXULVPWKH¿OPLQGXVWU\DQGZRUN as well as tourists and local citizens,” ing the restaurant for its Indian owner. in education,” he said. he said. ³3ULPDU\LQYHVWPHQWVIRUWKHVWDUWLQJ 7KH¿OPLQGXVWU\KHVDLGLVSDUWLFX- Naniyil said he was initially attracted of a business in Georgia are less than in larly interesting, and he is working on to the country by the simple business India. And leasing of this restaurant in DWWUDFWLQJ,QGLDQ¿OPPDNHUVWR*HRUJLD registration procedures. India would be much more expensive. The country is beautiful, he said, noting Anyle Sood manages the Sanja Chula In fact, starting a business in Georgia is that “Aghmashenebeli Avenue looks restaurant on Aghmashenebeli Avenue. easier,” he said. OLNH3DULV´

20 | Investor.ge DECEMBER-JANUARY/2017-18 LIKA JORJOLIANI She added that their fruit products From Wild are currently sold in Georgia and in post- few years ago, Dr. Izolda Kite- Soviet countries, and they are looking Herbs to Pet sashvili, the chief neurologist to expand to the EU market, and plan A in the eastern Georgian town of to export frozen fruit, dry fruits and Furniture: A Look Gurjaani, decided to start farming. blackberry tea. She began with a small plot of land Kitesashvili stressed that there is at Georgia’s and 50 American Chester blackberry untapped potential for more blackberry plants, which were provided as part of growers in Georgia. She helped establish Widening Export a UN-supported program at the local WKH$VVRFLDWLRQRI3URGXFHUVRI%ODFN- college. berries, which is planning to create an Market Today, her farm is producing 25 tons informational website so other farmers of small fruit, it employs her entire fam- can learn about cultivating and selling THE TRIAD OF FAMOUS ily—plus 20 additional workers—and blackberries. “Our Association includes GEORGIAN EXPORTS—WINE, she started a company, Gile, to sell her more than 100 blackberry producers. One MINERAL WATER, AND NUTS—IS product to supermarkets here and in other member, an entrepreneur from Kutaisi, WELL KNOWN. BUT SINCE 2014, former Soviet countries. KDVDOUHDG\VHQWD¿UVWORWRIEODFNEHUULHV THAT LIST HAS BEEN SLOWLY The business was so successful that to Kuwait. EXPANDING, AND NOW INCLUDES A WIDE VARIETY she started to expand, Kitesashvili told But to provide regular supplies, we OF PRODUCTS: EVERYTHING Investor.ge. need large volumes, and all producers FROM BLACKBERRIES AND “The cooperative is specializing in must be united,” she said. MEDICINAL HERBS TO CAT the cultivation of blackberries, peaches, TOYS AND ANCHOVIES. DQGWRPDWRHV%XWWKHPRVWSUR¿WDEOHLV FROM ENGINEER TO MEDICINAL INVESTOR.GE SPOKE WITH THREE cultivation of blackberries of this sort. HERBS ENTREPRENEURS WHO ARE FINDING NEW MARKETS FOR THE We closely cooperate with the USAID Farconi, Ltd was created by an un- “MADE IN GEORGIA” LABEL AND and with its support ... our cooperative employed engineer in Kutaisi in 1995 THE GOVERNMENT AGENCY has received a grant to procure equip- to ship raspberries and bay leaves to SUPPORTING THEIR EFFORTS. ment,” she said. Russia and other post-Soviet countries.

DECEMBER-JANUARY/2017-18 Investor.ge | 21 to the EU market—and to the other countries that have free trade agreements with Georgia. “Georgian manufacturers have a great chance to enter into the EU market, which is stable ... The agency increases awareness of the peculiarities of the free-trade regime with the EU. We are working with our entrepreneurs not only in relation to free trade with the U.S., but with China too, and a free mode with Turkey and CIS countries,” she told Investor.ge. Morgoshia said the agency provides “microgrants”—worth between 5,000 and 15,000 lari—to small- and medium- sized businesses. About 8,500 businesses have re- Fast-forward 25 years: today his son free trade with the EU, it was very dif- ceived grants so far. The funds can be is exporting medicinal herbs and other ¿FXOWWRVHOORXUJRRGVWRWKH(XURSHDQ XVHGWR¿QDQFHWKHVWDUWRIDEXVLQHVVRU Georgian products to Europe. market as the customs fee was very high. to expand an existing enterprise. Giorgi Alpaidze, the founder’s son 7RGD\WKHSURFHGXUHLVPRUHVLPSOL¿HG´ The agency also provides assistance and current director of sales at Farconi, he said. to the manufacturing sector: the govern- said they upgraded their production to The company also exports Georgian PHQWSURYLGHVFR¿QDQFLQJIRUWKHLQWHU- meet EU standards in 2016. Now they are spices under the brand name “Khomli,” est on certain bank loans—10 percent exporting 49 different types of medicinal Alpaidze told Investor.ge. for producers, as well as for companies herbs to Ukraine and Germany, where “Our main markets for Georgian involved in the hospitality sector. they are used by pharmaceuti- In addition, if investors plan cal companies. The company Kitesashvili stressed that there is to invest more than six times the is planning to expand so it cost of a parcel of government can sell its herbs to Georgian untapped potential for more blackberry land (four times if the land is companies as well. in the suburbs), the agency can Currently, over 1,000 growers in Georgia. sell it for the symbolic price of farmers sell their goods to one lari. Farconi, which has two factories in spices are post-Soviet countries. Recent- Morgoshia noted that the agency western Georgia. O\ZHVHQWRXU¿UVWVKLSPHQWRI*HRUJLDQ has programs to help businesses meet “One is located in Kutaisi, and is de- spices to China, to Hong Kong,” he said, international standards, including manu- signed for processing of spices, and the noting they are not selling them on the facturing standards. second one—in the village of Zvani, in domestic market right now. “We conduct consultations with the Vani District, is designed for the pro- Georgian companies to enable them to cessing of bay leaves ... Both enterprises INEXPENSIVE LOANS, EDUCATION enter ... the international markets,” she are located in Imereti (Western Georgia) Mariam Morgoshia, Head of the said. and employ up to 60 people,” he said. VWDWHDJHQF\³3URGXFHLQ*HRUJLD´WROG The agency also helps Georgian com- The Association Agreement with Investor.ge that the government program panies register for trading platforms, like the EU was a major turning point for is helping Georgian entrepreneurs and “Trade with Georgia” and the European Farconi, Alpaidze said. SURGXFHUVOHDUQDERXWWKHEHQH¿WVDQG network of entrepreneurs, to help estab- ³3ULRUWRVLJQLQJRIDQDJUHHPHQWRQ requirements to export Georgian goods lish themselves as exporters.

22 | Investor.ge DECEMBER-JANUARY/2017-18 FCO Georgian Products

“We provide the necessary infor- INSPIRE TO PRODUCE “Today our enterprise employs 420 mation and help them reach concrete David Bardavelidze, a partner of people, with an average monthly salary government entities,” she said, adding )&2*HRUJLDQ3URGXFWVVDLGKHZDV of up to 800 lari. The products are sold that the agency continues to support inspired to start an export business after in the EU countries,” he said. SURGXFHUVE\¿QDQFLQJSHUFHQWRI Georgia signed its free trade agreement “Of course, our European partner, the cost of joining trade missions, forums with the EU. and exhibitions overseas. The company was “Our entrepreneurs have participated RQHRIWKH¿UVWWRUH- t*HRUJLDQPDQXIDFWXUHUVKDYHDJUHDW in exhibitions conducted in Germany, ceive financial sup- China and other countries,” she said. port from the govern- FKDQFHWRHQWHULQWRWKH(8PDUNHWu 6RIDU³3URGXFHLQ*HRUJLD´KDV PHQW¶V³3URGXFHLQ ¿QDQFHGSURMHFWVIRUDWRWDOLQYHVW- Georgia” program and, since exporting WKH*HUPDQFRPSDQ\=RR3OXVSOD\HG ment of 752 million lari, which includes LWV¿UVWSURGXFWVLQLWKDVJRQHIURP a key role in our entering into the Euro- the agency’s assistance with commercial strength to strength, Bardavelidze said. pean market. But most remarkable is the bank loans. Together with their German partners “Made in Georgia” tag on the product The beneficiaries have employed =RR3OXVWKH\SURGXFHDQGH[SRUWIXU- DQGWKHGHOLYHU\RI¿QLVKHGSURGXFWVWR 12,565 people, Morgoshia said. niture and food for animals. the European market.”

DECEMBER-JANUARY/2017-18 Investor.ge | 23 He is a great believer in “empower- ment from the grass roots to get things going.” Here is where government incentives and direction are required. He knows what he is talking about, his company having worked across Europe, Africa and Asia. As he adds: “You need enough places from which to make a start—there are many opportunities, but you need scale. Then you have to create structures to build a market for private investment and for support from the likes of the EU, millions on biomass-plant and district (%5'86$,'RU81'3´6FRWODQGKDV Creating heating in Ukraine and the Balkans. been going that route, and it could be Another enviable model is the Baltic Georgia’s next step. a Biomass project. Funded by the region’s pension Scotland also has had the challenge funds and insurance companies and of clarifying who is running the country’s Industry: the European Investment Bank, it was bioenergy strategy and thus drawing up announced a few weeks ago that the an enforceable program of penalties and investors would build a 16-million-euro incentives. Efforts to Lithuanian biomass plant. The plan is As in Georgia, the territory is covered for it to provide 10 per cent of the energy by several government bodies. (The create a needed to heat Vilnius. merging of the Ministries of Economy As yet, not a lot has progressed in and Energy to form the Ministry of cleaner fuel Georgia on sustainable biomass con- Economy and Sustainable Development sumption beyond surveys, plans, forums, removes some of the overlap.) conferences and the workshops stage. So Additionally, there are local stake- SALLY WHITE it comes as something of a surprise when holders in the form of municipalities and international biomass energy expert, a lot of private and commercial vested iomass is moving up on Geor- Neil Harrison of UK consultants re:heat, interests in the land. Not to speak of JLD¶VRI¿FLDOOLVWRIHQHUJ\SUL- says “a good country model for Georgia the political implications in Georgia Borities and Georgia’s embryonic would be Scotland!” surrounding wood, an energy source biomass sector is hoping that now the His notes that, currently, Georgia, thousands currently use for free—solar, time is right to get funding and start much like Scotland, has been short of wind and water are so much simpler. working. a formal structure on which to build a “So, in these conditions it is harder While there are a few privately biomass industry to diversify energy to know what is going on and harder owned biomass fuel plants, and munici- sources. to make things happen,” he says after pal district heating based on biomass is For example, district heating projects having spent some months in Georgia being revived, the industry is still tiny. can be clustered to create scale for a advising the United Nations Develop- business that can attract international aid PHQW3URJUDPPH 81'3 LOOKING TO THE BALKANS, and investment—to be really effective, UKRAINE ... AND SCOTLAND the sums of money required run into the MOVING AWAY FROM One potential source of financing many millions of dollars. UNSUSTAINABLE BIOMASS for the nascent industry is the European Small plants can be networked or 2I¿FLDOO\*HRUJLDLVFXUUHQWO\PHHW- Bank for Reconstruction and Develop- formed into co-operatives with the same ing 11 percent of its energy needs from ment (EBRD), which has been spending aim. biomass. Harrison notes, however, that

24 | Investor.ge DECEMBER-JANUARY/2017-18 this is not the sustainable type of biomass the Georgian govern- There may be opportunities for grants, such as from Lithu- ment and the EU are promoting. ania’s climate change bilateral cooperation programme. Ex- “It is all the energy created across the country from con- perts from the Lithuanian Biomass Energy Association visited sumption of any kind of wood and other materials,” Harrison Georgia this summer—biomass is that country’s most common points out, adding that this includes illegally logged wood and source of renewable energy, and Lithuania hopes to lead the forest debris as well. EU in biofuel production by 2020. While Georgia is seeking to create a cleaner energy industry Other gaps, which have arisen in analysis by Zaal Khel- by building wind power and hydro plants and promoting small- adze, director of New Technology Center (which manages the scale solar generation, is it is currently a huge burner of wood. Biomass Association of Georgia) is the lack general knowledge $VWXG\IXQGHGE\WKH81'3VKRZVWKDW³PRUHWKDQSHU on the subject. FHQWRIWKHUXUDOSRSXODWLRQVWLOOUHOLHVRQ¿UHZRRGDQGLOOHJDO 7KHUHLVKHVD\V³$GH¿FLWRINQRZOHGJHRQWKHDFDGHPLF logging for their heating needs.” and consumer level – educational establishments do not provide The study adds that “unsustainable annual consumption [of enough knowledge on the subject.” So, people do not under- wood]… costs Georgia around GEL446 million every year.” stand what is at stake here. Worse still, this wood is often consumed while still wet, is not Georgia’s Deputy Minister of Environment and Natural RQO\LQHI¿FLHQWZKHQLWFRPHVWRKHDWJHQHUDWLRQEXWLWVVPRNH Resources Ekaterina Grigalava has stressed “the importance is bad for people’s health. of cooperation between the state and private sector.” The solution the internationally directed Georgian biomass “With good policies and proactive business approaches, programs are seeking is the production of briquettes made from Georgia will achieve tremendous success producing and utiliz- wood, agricultural and municipal waste—a million and a half ing on renewable energy,” Grigalava said. tons of agricultural residues and more than one million cubic ADVERTISEMENT PHWHUVRIIRUHVWUHVLGXHVDUHSURGXFHGHYHU\\HDU$81'3 report estimates that 70 percent of residential energy could be supplied from this residue, and so could systems for hospitals and government departments. 3OXVELRPDVVHQHUJ\SURGXFWLRQFRXOGFUHDWHKXQGUHGVRI badly needed jobs.

A MILLION-DOLLAR INVESTMENT $FWLRQVRIDUKDVLQFOXGHGWKHIROORZLQJWKH81'3SXWXS $1 million for a four-year biomass program, including support for three pilot biomass plants to start briquette production in 0DQDYL7ELOLVLDQG$NKPHWD7KH81'3VXSSRUWVWKH*HRUJLDQ Biomass Association, which is tasked with further advancing Georgian biomass use. Municipalities have been discussing the use of biomass in new and revived district heating systems along the lines developed in the Baltics. The ideas put forth for encouraging a commercial biomass PDUNHWOLVWHGLQDUHFHQW81'3UHSRUWLQFOXGHG loan guarantees tax rebates investment grants state funding renewable energy targets developing a holistic forest sector help for foreign investors via investment guidelines

DECEMBER-JANUARY/2017-18 Investor.ge | 25 ADVERTISEMENT

History, Downloaded: A New App Brings Insight to Georgia’s Tourism Sites

NIKI GETSADZE IS SALLY WHITE include Mount Ushba, churches and BRINGING GEORGIAN ancient towers, but you’ll be guided to HISTORY TO TOURISTS iki Getsadze, 31, is one of the where you can taste local dishes. The young Georgian tech profes- much shorter three-kilometer walk ONE DOWNLOAD AT Nsionals who are helping Geor- through Old Tbilisi gives two hours of A TIME THROUGH HIS gia catch up with the IT revolution. In a history and stories, taking you through AUDIO GUIDE GEORGIA country that still prefers to live on Face- the narrow streets, past old trade centers, APP. HE SPOKE WITH book, he is designing websites and apps churches and theaters. All the guides INVESTOR.GE ABOUT to help companies put their messages out. come plentifully supplied with pictures WHAT TOURISTS LACK His latest project is to help bring and each has a reference map. IN THE COUNTRY AND international-standard services via a mo- The Audio Guide Georgia Mobile HOW NEW, GEORGIAN- bile-based tourism App can detect DESIGNED APPS CAN FILL app, Audio Guide The Audio Guide Georgia your location with Georgia (available your smartphone’s THE GAP. at www.audiogui- Mobile App can detect your *36

30 | Investor.ge DECEMBER-JANUARY/2017-18 for use on a mobile or other device,” app by June—just in time to reach the church carvings to Tbilisi’s rich legacy of Getsadze said. peak summer tourism season. The award art nouveau buildings, and now its mul- “The main aim is to provide accurate has enabled him to offer the download WLSOHDZDUGZLQQLQJ¿OPV

Tourism numbers (visitors spending more than 24 hours in the country) are rising strongly, up over 28 percent in the first nine months of this year, at 2.78 million visitors. by using it online,” he explained. His timing has been excellent. Tour- ism numbers (visitors spending more than 24 hours in the country) are rising to having 24 hours of electricity a day, America. VWURQJO\XSRYHUSHUFHQWLQWKH¿UVW DJDLQOHWDORQH¿QGLQJLWVZD\DURXQG However, times are changing in nine months of this year, at 2.78 million the internet! However, he received a Georgia—more and more companies, visitors. While the largest contingents Georgian IT degree and then, after mov- consultants and freelancers are marketing are still by far those from Georgia’s ing to London, worked on building his via websites and apps. “Before, big com- neighbors, the numbers from Germany, design skills by studying at London’s panies used to go out of the country and France and the UK all rose by around prestigious University of the Arts’ Col- ¿QGVRPH(XURSHDQRU$PHULFDQFRP- 30 per cent. lege of Communication. panies for their tech-communications 7R¿QGWKHPRQH\WREXLOGWKHDSSKH Back in Georgia, it took a few years problems,” Getsadze said. applied for an award under the govern- for his web- and app-design business to “Nowadays, it’s more the case that ment’s “Start-up Georgia” scheme and gain momentum. Georgia might have Georgian people and companies are received funding. He started the business had a booming creative scene of one sort involved in developing, designing and plan in January 2017 and, spurred on by or another since time immemorial—the building Georgian corporate websites, the award, he had designed and built the eye catches evidence everywhere, from mobile apps, etc.,” he added.

DECEMBER-JANUARY/2017-18 Investor.ge | 31 This, as he says, is excellent for the OVER SIX MILLION INTERNATIONAL TRAVELERS VISITED GEORGIA IN country. “Keeping all this in Georgia is 2017 helping build an IT industry here and 2YHUPLOOLRQLQWHUQDWLRQDOWUDYHOHUVDUULYHGLQ*HRUJLDLQWKH¿UVWPRQWKV creating jobs,” he noted. of 2017, according to the Head of the Georgian National Tourism Administration, agenda.ge reported on November 3. The report quotes administration Head Giorgi RESEARCH, RESEARCH, RESEARCH Chogovadze as saying that a total of 6,430,824 international visitors entered Georgia While his company works mostly in in January-October of this year, which is 1,016,180 (or 18.8 percent) more than in the Georgian, English and Russian, Getsadze same time period of last year. He noted that nearly half— 3,042,907—stayed in Georgia has made sure that he can access experts for longer than 24 hours, a 28 percent increase compared to the same period last year. in other languages to help his clients “According to data from the second quarter of 2017, the income from international expand internationally. tourism amounted to $658.7 million for Georgia, which was $143 million more (or For those who are just beginning to a 27.8 percent increase) than the same period last year,” Chogovadze said. Revenues market their products online, he said, re- IURPLQWHUQDWLRQDOWRXULVPLQWKH¿UVWDQGVHFRQGTXDUWHUVRIDPRXQWHGWR search is vital to establishing an effective billion—a 26 percent increase from the last year. presence. “Always try to research your whole marketplace. You have to research INCREASE IN TOURISM BY COUNTRY: what is going on in your industry, not United Kingdom – 33 percent increase only in terms of what competitors are Russia – 32 percent increase doing visually or technically, but also to Germany – 32 percent increase ¿QGRXWDVPXFKGHWDLODVSRVVLEOHDERXW France – 29 percent increase their products. That enables you to decide 3RODQGSHUFHQWLQFUHDVH how and what you need to communicate Lithuania – 18 percent increase to your customers. It will help you paint Azerbaijan – 15.6 percent increase an appealing picture of your business and Armenia – 11.8 percent increase ensure the targeting of your message to Turkey – 10.5 percent increase your customers is spot on,” he explained. Ukraine – 0.2 percent increase

32 | Investor.ge DECEMBER-JANUARY/2017-18 CONSTITUTIONAL COURT OF GEORGIA LIMITS THE CONCEPT OF Although not yet progressed to the Parliament, the draft law has “GOOD FAITH B UYE R ” already produced a lot of controversy. The law introduces allegedly In its recent decision of 17 October 2017, the Constitutional Court of modern approach of accumulating pension funds by contributions Georgia rendered particular reading of Article 185 of the Civil Code made by the employee, the employer and the state to replace the of Georgia unconstitutional. The named article protects the existing social pension package. In particular, according to the draft interests of a good faith buyer and denotes that sales transaction law, each month 2% of the gross salary will be transferred by the shall be upheld even if seller was not a lawful owner of the employee to the special pension fund, 2% shall be paid by the property, provided that seller was registered as the owner at the employer and 2% will be added up by the state from employee's Public Registry and buyer was not aware of seller's defect in title. personal income tax. The funds so accumulated will be managed The Court noted that the limited reading of Article 185 exempts from and invested by the state agency to ensure reasonable returns on the concept of “good faith buyer” only the buyer who has a positive such investments. After retirement, people will thus have knowledge of seller's defect in title and leaves out the instances, accumulated funds at their disposal to decently provide for where the buyer is informed that the title is disputed at the Public themselves in their old age. The Government expects the reform to Registry or the courts. The Court established that Article 185 must boost state economy, however it remains questionable whether the be read broadly to capture the latter scenario as well. The decision business sector, obliged to contribute their portion of the funds, will of the Constitutional Court does not imply that the buyer is share such enthusiasm. burdened to take additional steps or bear additional costs related to PPP REGULATION FINALLY IN PARLIAMENT the due diligence of seller's title, rather the buyer should refrain from purchasing the immovable property when informed of the Long awaited bill on Public and Private Partnership (PPP) was challenge of the title. Otherwise, buyer has to bear the risks ½nally lodged to the Parliament of Georgia on 28 September 2017. associated with success of such challenge. The bill aims to establish uni½ed legislative and institutional framework for public and private partnership in Georgia. The ISSUING LOANS IN USD MAY BECOME AN ADMINISTRATIVE document was elaborated in cooperation with various Ministries of OFFENCE Georgia, IMF, EBRD and international experts and is said to re¾ect The regular readers of BLC Newsletter may recall that, effective the state-of-art approaches in PPP regulations. The draft law from January 2017, loans below GEL 100 000 may no longer be provides for the rules governing PPP process staring from issued in USD. As an effective enforcement mechanism, the evaluation and announcement of the project up until selection of the Parliament of Georgia discusses amendments to the investor and monitoring the compliance with its PPP commitments. Administrative Offences Code of Georgia envisaging sanctions for The bill further differentiates between concessions and non- violation of the above rule. Sanctions include administrative concession PPPs and abolishes an outdated law of Georgia on warning with a cure period of one month and a penalty in the Issuing Concessions to Foreign States and Companies. If adopted, amount of GEL 1000 in case of continuous or repeated breach. If the the law shall enter into force on 31 March 2018. In the interim, the bill goes through, the compliance with the restriction and related Government of Georgia has to establish a new institution sanctions will be administered by the Revenue Service of Georgia. supervising the PPP projects and also adopt relevant implementing legislation. Amendments do not concern ½nancial institutions supervised by NBG. CONSTITUTIONAL AMENDMENTS ADOPTED MAJOR REFORM OF STATE PENSION SYSTEM UNDERWAY On 13 October 2017, the Parliament of Georgia adopted extensive On 31 October 2017, the Government of Georgia has introduced a amendments to the Constitution of Georgia. Among others, the draft law on Accumulative Pension to kick off public discussion. amendments cover restriction of foreign ownership of agricultural lands, subject to carve-outs prescribed by the special organic law to be further adopted by the Parliament. Most importantly, Georgia shifts from semi-parliamentary to a wholly parliamentary system of government with a president elected by the Parliament, rather than by citizens directly. The amendments further enhance certain social rights and provide for the de½nition of marriage as a union between a woman and a man. The restated Constitution comes into effect after the next presidential elections in 2018. Georgian Wine Experiments to Beat the Cold

TATJANA MONTIK to be adopted by the purists of Georgia’s WINE LOVERS EAGER ancient wine-making culture. Has the FOR A WARM n the West, people have been drink- trend spread to Georgian wineries? DRINK ARE PUSHING ing hot wine to warm up in the win- GEORGIAN WINERIES Iter since the Roman Empire, where WHEN IN ROME *HRUJH3LUDGDVKYLOLLVWKHRZQHURI AND WINEMAKERS TO WKHGULQNZDVNQRZQDV&RQGLWLXP3DUD- doxum. Today, every Christmas market two popular hotels and a restaurant in ADAPT MULLED WINE in Germany, Austria and Italy offers Kakheti, Chateau Mere and Royal Ba- RECIPES FOR LOCAL several kinds of mulled wine, white and WRQL3LUDGDVKYLOLDOVRUXQVWKH:LQYHULD GRAPES. red, without or with “Schuß” (i.e.. extra winery. “During the winter season, hot shot of strong alcohol). wine beverages are highly popular with Hot wine beverages have slowly RXUJXHVWV´3LUDGDVKYLOLVDLG made their way to Georgia, too. Today, “But now, I am talking only about nearly every restaurant in Tbilisi that mulled wine. I would say that beverages caters to tourists has mulled wine on its like grog have not yet made their way to menu. Cafes in Gudauri and ski resorts in Georgia. For mulled wine, our restaurant Bakuriani have also adopted the drink: it has some special recipes; they vary a lot,” is hard to imagine an active day outdoors he added, noting that Georgian wine is without the warming and relaxing effect suitable for warm wine drinks. of aromatic mulled wine. “We use our Winveria wine to cook But it is one thing to have the drink mulled wine. Our recipes include spices served in a cafe—and quite another for it like cinnamon and cloves, a bit of lemon

34 | Investor.ge DECEMBER-JANUARY/2017-18 or orange peel,” he said. making mulled wine. The taste of the gian wines, she is less informed about Shukhman winery from Kakheti has a wine you choose does not really matter, the European varieties. special seasonal product called “Mulled as you cook it and as you put spices into “In our country, there is no tradition Wine,” which one can find in wine it. You are supposed to add some sweet of hot wine beverages. I am pretty sure shops as well as in some supermarkets. taste, too, like sugar syrup or honey. This that mulled wine should be made on a From the main winemaker of Shukhman is why you should not worry much. Just base of wine made from other [grapes], winery, Giorgi Dakishvili, I learned that take any Georgian wine you like, boil it, not Georgian grapes,” she said. this drink is made out of Saperavi wine, and enjoy,” Chkhaidze recommended. Giorgi Natenadze runs a winery in spiced with orange peel, cinnamon, Davit Tsintskavadze, general man- the Samtskhe-Javakheti region close nutmeg, cloves and black pepper. “You ager of the new Kakheti wine company to Vardzia. He dedicates his passion to don’t need to do anything yourself any Nelkarisi, is pleased with the new trend reviving the rare old grape varieties that more. Just open the bottle, warm up its for mulled wine in his country. He rec- were destroyed in the 16th century, after contents and enjoy your drink,” Dakish- ommended making the drink with Ikano the Turks occupied that region. vili suggested. semi-sweet wine, a blend of Saperavi Natenadze is convinced, too, that you According to Dakishvili, this sea- DQG0HUORWZKLFKZRQ¿UVWSUL]HWKLV should not use wine made from Georgian sonal product is so popular with the year as the best semi-sweet wine of grapes to prepare hot wine drinks. “As customers that some of them also enjoy Georgia from the Georgian Sommelier hot wine is more a kind of European tra- it as a cold drink, too. Association. dition, you should take wine like Caber- This should actually not be surpris- net Sauvignon for making mulled wine,” ing, since the Romans also used to drink MATTER OF TASTE AND VINE Natenadze suggested. “I have this kind &RQGLWLXP3DUDGR[XPFROG Other Georgian wine connoisseurs of wine, made in qvevri for three years. In the popular and well-sorted wine disagree, however, arguing that a Euro- I experimented with preparing mulled shop “8,000 Vintages” in Tbilisi’s Sa- pean vintage is better suited to make a wine with it. And the result was surpris- EXUWDORGLVWULFWRQHFDQ¿QGDULFKFKRLFH European drink like mulled wine. ingly nice. But as we know, Cabernet of wine from different wineries from Tamar Janiashvili Rokashvili, the Savignion is not a Georgian grape.” all over Georgia. There, I approached PDQDJHUDW3KHDVDQW¶V7HDUVUHVWDXUDQW If anyone can tell me the proper place Irakli Chkhaidze, the general manager, and winery in Sighnaghi, is experienced (and vintage) for mulled wine, it would in order to ask him about the new trend at organizing wine tastings for guests. be Alexander Novikov, the owner of to drink hot wine drinks in winter time. Rokashvili admitted, though, that while Dadi’s Bar on Shalva Dadiani street in “Georgian wine is perfectly suited for she is very knowledgeable about Geor- Tbilisi. A relative newcomer to Tbilisi,

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DECEMBER-JANUARY/2017-18DECDE EMBMBER-ERR-R-JANJAJANANUARUAUARARY//2022017-18 Investor.geInvests orr.gge | 35 Many different recipes of mulled wine he has been working in the food and is bringing Georgia closer to the Euro- can be found on the Internet, includ- beverage industry for about 25 years: pean Christmas traditions. “Actually, we ing the original recipe of mulled wine. he studied in Switzerland and he then Georgians found out about mulled wine a This is an adapted version of the recipe of Conditum Paradoxum taken from worked at international hotel chains long time ago. We learned about it from an old Roman cooking book, De Re around the world as a food and beverage Soviet cookbooks, which also contained Coquinaria, written by Caelius Apicus specialist. When I asked him about the some exotic recipes. There, it was called in the 3rd-4th century A.D. trend to drink mulled wine, a sarcastic glintvein. smile crossed Novikov’s face. “I am 7KLVLVZK\\RXRIWHQ¿QGWKLVQDPH CONDITUM PARADOXUM sorry, but mulled wine is not a drink to glintvein, on the menus of restaurants or Ingredients: be served in bars or in restaurants,” he as an advertisement offering mulled wine

200 g of honey replied. “This is why we don’t have it on the street. But this does not mean that on our menu.” in Soviet times we prepared glintvein 1.5 liters of dry white wine “You would usually drink mulled ourselves. 5 fresh peppercorns (or 10 dried ones) wine outside, if you are somewhere in It was more a kind of theory to us. 2 fresh bay leaves (or 4 dried ones) the mountains for skiing,” Novikov said. The trend of drinking mulled wine is 5 dates “You would usually drink it from a cup quite new for Georgia, it started about 3 g saffron with thick sides. ¿YHVL[\HDUVDJR´*YDUDPLDH[SODLQHG This keeps your drink warm for a “But I don’t consider this drink to be VSULJRIURVHPDU\DQGODYHQGHUÁRZ- ers or 3 small lavender stalks long time. And pay attention to one wine. It is more a kind of hot cocktail. more detail: Don’t overindulge, because But I quite like it. For Christmas it is a otherwise you’ll probably get a hangover kind of special drink. When it is cold Preparation: with headaches the next day.” outside, you naturally want to drink 1. Core the dates, soak the date meat His advice is well placed: headaches something hot, and if it is made of wine, in 200 ml of the wine, and roast the date pits in an ungreased pan. are a rather common side effect of mulled it is even better,” he added. wine consumption, unfortunately. Is Georgian wine suitable for mak- 2. Add the date pits, wine with dates and the honey to the pan, bring to a These unpleasant symptoms are usu- ing mulled wine? What about Artizani boil, and froth. ally caused if bad wine was used for mak- wines, for example? Gvaramia replied

3. Add the remaining ingredients and ing the drink or due to the extra shot of ZLWKRXWDQ\KHVLWDWLRQ³'H¿QLWHO\%XW bring to a boil again. alcohol that is usually added to the wine of course it depends on your taste. Some

4. When the boiled wine has cooled, in order to increase its alcohol content. people prefer sweeter wines for cooking add the remaining wine and leave for As wine loses its alcohol content mulled wine. I only must warn you in 1 to 2 days. during the cooking process, some people one respect: Don’t look for something )LOWHUWKHVSLFHGZLQHWKURXJKDÀQH add extra alcohol shortly before serving. with a lot of tannin, which is actually a sieve before serving. This drink can be Strictly speaking, however, this beverage very Georgian style, as the structure of enjoyed hot as well as cold. is no longer “mulled wine.” It should be this wine is too strong. For mulled wine called “punch” instead. you need something milder and more The Conditum may be kept refrigerated balanced,” he said. for several months. A SIP CLOSER TO EUROPE As I learned, everything is a mat- Irakli Gvaramia is a young wine- ter of taste as well as of quality—this This recipe is also great with red instead maker running the brand Artizani. In his extends to wine, including the mulled of white wine. winery, Gvaramia and two of his business variety. Speaking for myself, I welcome The addition of dates is the matter of partners are producing red and rosé wines the mulled wine trend in Georgia: I taste, of course. You can skip them and from the microzone in the Kakhetian vil- remember how a cup of this aromatic instead experiment with cloves, carda- lage of Khashmi, which is known as the spicy hot wine drink has saved me in mom seeds, star anise, and pimento in your personal version of mulled wine. best area for Saperavi grapes. past winters—helping me avoid catching Gvaramia is rather enthusiastic about a cold even when I was freezing in the mulled wines. No wonder: This trend winter weather. Enjoy!

36 | Investor.ge DECEMBER-JANUARY/2017-18 SNOW, SUN AND SKIING: A Guide to Georgia’s Winter Resorts

Georgia may have built its tourism about 180 km from the capital Tbilisi mountainous region of Svaneti. The industry as a sunny getaway to Batumi and just 30 km from the town of Bor- region is home to the highest peaks in and its Black Sea beaches, but the coun- jomi—which is also a resort town in its the country, according to skigeorgia.ge: try is equally inviting for winter travel. own right, famous for its ancient mineral Tsurungala (4220 meters), Ailama (4550 +RPHWR¿YHPDMRUVNLUHVRUWV*HRU- water springs. m), Shkhara (5068 m), Jangha (5060 m), gia has something for everyone. Tucked in the beautiful Borjomi Gestola (4860 m), Tikhtingen (4620 m), Gudauri is the closest ski resort to Gorge, Bakuriani is located about 1700 Tetnuldi (4860 m), Mazeri (4010 m) and Tbilisi—just 121 km from the capital— meters above sea level and enjoys snowy Chatini (4370 m), which neighbor the which makes it a popular winter weekend winter weather from December to March. famous Mt. Ushba (4700 m.) playground for Tbilisians. Locally, it is best known as a resort for Goderdzi is located in the western It sits in the greater Caucasus moun- families and boasts of a good beginners region of Adjara. tain range, 2,200 m above sea level. slope and plenty of activities for non- The resort is 109 km from Batumi Gudauri has been the site of major invest- skiers. Neighboring Mitarbi is scheduled and 252 km from Tbilisi. It is 2,000 ment from the government, and has 57 to be connected to Bakuriani’s Kokhta meters above sea level, and offers eight kilometers of ski runs. There is also heli- ski area. kilometers of ski runs. It is an all-year skiing and, for the non-skiers, tubing. Mestia and Tetnuldi are located resort, with the ski season running from Bakuriani is in the lower Caucasus, in Georgia’s breathtakingly beautiful November to May. UHIRUPVDQGGLYHUVLÀFDWLRQDQGLPSURYH- and CIS countries, including the Russian ments in the democratic environment Federation. Georgia recently signed an The New Silk that continue to unleash the talents and exclusive free trade agreement with Chi- entrepreneurial instincts of its highly edu- na, which is having an explosive impact cated population. on Georgia’s export markets and promises Road: The US Prudent policy, exports, tourism, invest- to put this small country in an enviable ment and a commitment to becoming position — with a modern deep-water a regional hub for trade have fueled this port — along Eurasia’s New Silk Road. In needs a free VXFFHVV0HDQZKLOHGLYHUVLÀFDWLRQLQHQ- all, Georgia currently has free access to ergy, tourism, transportation, agriculture, a market of over two billion consumers. logistics, and business processes offer Improvements to Georgia’s infrastruc- exciting growth potential. ture will, in themselves, bring huge business trade deal As a result, in October, the Interna- opportunities. The Georgian government tional Monetary Fund revised Georgia’s has announced $4.5 billion of transport annual growth to 4.3 percent, which is an infrastructure projects over the next four with Georgia extremely healthy outlook and more than years; a continuation of transport, energy double the regional average. Moody’s has and infrastructure enhancements that DOUHDG\VLJQDOHGLWVFRQÀGHQFHLQ*HRUJLD have been taking place for years. INVESTOR.GE by upgrading its local and foreign cur- Major U.S. companies, like AECOM IS REPRINTING rency issuer ratings to Ba2 from Ba3, one in engineering contracting and General notch away from investment grade. Electric in contracting and equipment AMCHAM GEORGIA 7KHVH LPSURYHPHQWV UHÁHFW WKH VXF- sales, have been taking advantage of cess of market reform efforts over many Georgia’s opportunities. Other U.S. com- PRESIDENT MICHAEL years. Most recently, this has been led by panies have also invested over many years COWGILL’S Georgian Prime Minister Giorgi Kvirikash- in tourism, telecom, IT, energy production vili’s four-point strategy to draw investment (hydro, wind and solar) and many other EDITORIAL, WHICH to the country by modifying income tax sectors. But the Georgian market still re- WAS ORIGINALLY laws favorably for most businesses, stream- mains relatively unknown to U.S. compa- OLQLQJJRYHUQDQFHWRGULYHHIÀFLHQF\DF- nies. To help correct this oversight and help PUBLISHED IN THE HILL celerating critical infrastructure projects, U.S. companies take better advantage and focusing investment in education on of these opportunities, the most urgent ON OCTOBER 28. the most needed areas and professions. need is a Free Trade Agreement between Georgia has the most business-friendly, Georgia and the United States. reliable, and predictable business environ- $Q)7$ZRXOGEHQHÀWERWKFRXQWULHV ment in the region. Georgia’s favorable VLJQLÀFDQWO\ tax regime is the 9th least burdensome We have seen, for example, how in the world, according to the World America’s FTA’s with Chile and Singapore (FRQRPLF)RUXP7KLVLVDVLJQLÀFDQWHQ- dramatically increased exports and over- Georgia, the small European country ticement to both local and international all trade, giving U.S. companies footholds nestled along the shores of the Black Sea investors. for accessing new markets and expanding and astride Europe’s highest mountains, Moreover, Georgia is emerging as a their business in those regions. Georgia is is one of the few unequivocal success regional hub for trade on the New Silk a highly educated and Westernized, low- stories in a region where America’s security Road. Georgia is now less than 10 days cost and low-tax access point to Europe, and commercial interests are strong and overland from China, and within four days Eurasia, the Middle East and Asia. And for growing. The next natural step to extend of any point in Europe. A new deep-water many American companies, Georgia can that relationship is a Georgia-U.S. Free port on the Black Sea will further enhance provide a similar foothold. Trade Agreement. This would enhance this connectivity, as it will be capable of The bond between Georgia and the the security and prosperity of Georgia, handling up to 100 million tons of cargo United States was based initially on an while offering U.S. companies a new and and the world’s largest container ships. unbreakable commitment to freedom dynamic route into Eurasia, the Middle The Anaklia Port Project, estimated at and on increasing geopolitical and energy East and the EU. $2.5 billion, is an ambitious joint venture security along this European borderland. Due in large part to bipartisan support EHWZHHQ86DQG*HRUJLDQÀUPVDQGZLOO Now commerce and trade undergird and in Congress and the U.S. government, be operated by an American company. support that commitment. The next logi- Georgia is thriving. USAID, OPIC, Millen- Georgia now has a Deep and Com- cal step in this welcome process is a Free nium Challenge Corporation, and the prehensive Free Trade Agreement with the Trade Agreement that offers American Departments of State, Commerce and EU, and its citizens enjoy visa-free travel to investors a leg-up in a busy and growing Defense all continue to contribute to that the Schengen countries. Georgia has free marketplace. This should be a priority to success. This has helped create a long trade agreements with Turkey, the Euro- strengthen the economy and security of track record of free-market economic pean Free Trade Association countries, both countries.

38 | Investor.ge DECEMBER-JANUARY/2017-18 issues. For example, in the late spring of this year, the White House proposed its so-called “skinny budget,” which LQFOXGHGVLJQL¿FDQWFXWVLQ¿QDQFLQJWR and for Georgia. In response, we were able to contact the U.S. Senators and Representatives we had met before to argue against this proposal. It currently appears that the 2017/2018 budget is very favorable for Georgia. As a result, one of the goals of the delegation was to thank U.S. legislators for their continued support. As with our previous trips, the 2017 delegation highlighted a range of topics which we tailored to the interests of U.S. RI¿FLDOV:HGLVFXVVHGWKHFRQWLQXHG and irreversible Western trajectory of democratic and economic reforms in Georgia and the continued efforts by Russia to undermine this agenda. We also highlighted the considerable opportunity that Georgia offers for U.S. companies as a hub for the region, particularly with the large infrastructure projects under development. Given these facts, we were also able to emphasize the way in which a U.S.- Georgia Free Trade Agreement (FTA) would work to serve the economic and strategic interests of both America and AMCHAM GOES TO WASHINGTON Georgia, and we discussed how to tackle some of the hurdles involved in making At the end of October/early No- and inform. The U.S. Government and such an agreement happen. vember, an AmCham delegation visited experts in DC tend to hear about Geor- In arranging the meetings, we reached Washington, DC to meet with US gov- gia in terms of politics and geopolitics, out to U.S. government agencies, as HUQPHQWRI¿FLDOVOHJLVODWRUVIURPWKH and most of what they hear comes from well as members of the House Foreign House and Senate, and foreign policy ex- politicians, diplomats or politically ori- Affairs, Appropriations and Ways and perts. The delegation included AmCham ented NGOs. Our trip provides a business Means Committees and the Senate *HRUJLD3UHVLGHQW0LFKDHO&RZJLOO)LUVW and economic perspective directly from Foreign Relations Committee. We also 9LFH3UHVLGHQW6DUDK:LOOLDPVRQ%3 American businesses on the ground. reached out to members of the House Country Director, Chris Schleuter; San The trip also helps us develop a rela- Georgia Caucus and to U.S. Senators Diego State University Georgia Dean WLRQVKLSZLWK86RI¿FLDOVDQGGHYHORS who have been strongly pro-Georgia for Ken Walsh; and AmCham Georgia Ex- a better understanding of the priorities, many years. The level of interest from ecutive Director George Welton. people and personalities that shape U.S. the Washington side was tremendous. We We make this trip every two years policy for Georgia. This understanding conducted 45 meetings in four days, in- or so, and its main goal is to update FDQWKHQKHOSXVDGYRFDWHRQVSHFL¿F cluding meetings with the State Depart-

DECEMBER-JANUARY/2017-18 Investor.ge | 39 gotiating trade agreements) is currently focused on renegotiating other large existing trade deals, including NAFTA involving the U.S., Canada and Mexico. Most importantly, however, we found WKDW86JRYHUQPHQWOHJLVODWRUVDQGRI¿- cials fully understand the challenges that Georgia faces, and they are interested in continuing to support the country and looking for opportunities that Georgia might offer for American companies to trade and invest. Many of the members of ment, Commerce Department, USAID, Georgia deserves continued U.S. support Congress and staffers had visited Geor- WKH867UDGH5HSUHVHQWDWLYHDQG23,& and that such support is in America’s gia; in some instances, several times. All From Congress, we met with eight U.S. immediate national and geopolitical of them continue to agree that the U.S. Representatives directly and the staff of interest. Legislators also offered general must remain as Georgia’s most important 26 additional Representatives and 10 support for the concept of an FTA, both strategic ally. The AmCham team, in Senators. We also met with local think- because of an understanding of the need turn, was happy to reinforce that view, tanks, like the Business Executives for to intensify U.S.-Georgia economic and to offer ourselves as a facilitator of 1DWLRQDO6HFXULW\ %(16 DQG¿QLVKHG relations, and because the current ad- U.S.-Georgia economic relations now our trip with a roundtable discussion ministration may have an appetite for bi- and in the future. panel hosted by the Carnegie Endow- lateral trade agreements. However, most AmCham would like to thank the PHQWIRU,QWHUQDWLRQDO3HDFH of the meetings also acknowledged that U.S. Embassy, the Georgian government Our messages were extremely well achieving an FTA would require a clear and Georgian Embassy in Washington received. As we have found in the past, development strategy as the USTR (the and all of the delegation members for there was a clear understanding that government entity responsible for ne- their support of our trip.

40 | Investor.ge DECEMBER-JANUARY/2017-18 NEWS

CONTENT

50 AmCham Social

42 AMCHAM HOLDS ANNUAL 43 MEMBER PROFILE: KPMG GENERAL MEETING 44 MEMBER FEATURE: SDSU 42 AMCHAM HOSTS MEMBERS-ONLY PRESENTATION ON ANAKLIA 45 MEMBER FEATURE: AFG DEVELOPMENT 46 MEMBERSHIP DIRECTORY 42 AMCHAM’S CLT COMMITTEE DISCUSSES LABOR LAW, JUDICIARY 50 SOCIAL: AMCHAM HOSTS LUNCH WITH U.S. TRADE DELEGATION

DECEMBER-JANUARY/2017-18 Investor.ge | 41 NEWS

AMCHAM HOLDS ANNUAL GENERAL ASSEMBLY

The American Chamber of Commerce in Georgia held its %DLGDVKYLOLSUHVHQWHGWKH¿QDQFLDOUHSRUWZKLFKZDVDS- annual General Assembly and Luncheon at the Holiday Inn proved by members. Two resolutions from the board were also +RWHORQ1RYHPEHUWK$P&KDP*HRUJLD3UHVLGHQW0L- approved; a resolution to continue Otar Kipshidze as a Board chael Cowgill offered an overview of the accomplishments of Member of AmCham and a Resolution to appoint Amy Denman the AmCham during the last year. AmCham Treasurer Irakli as an Honorary Member.

AMCHAM HOSTS MEMBERS-ONLY PRESENTATION AMCHAM’S CLT COMMITTEE DISCUSSES LABOR ON ANAKLIA DEVELOPMENT LAW, JUDICIARY 0DPXND.KD]DUDG]H&R)RXQGHU3DUWQHURI$QDNOLD'H- The AmCham CLT Committee members discussed current velopment Consortium; Levan Akhvlediani, Chief Executive legal issues in Georgia at the November 10 meeting. The Com- 2I¿FHURI$'&DQG.HWL%RFKRULVKYLOL&(2RI-6&$QDNOLD mittee discussed recent developments within the judiciary sys- &LW\SUHVHQWHGRQWKH$QDNOLD'HHS6HD3RUWDQG$QDNOLD&LW\ tem in detail, as well as important factors related to the creation projects for AmCham members at the Chamber’s monthly of the commercial chambers under the common court system. In roundtable at Radisson Blu Iveria on October 26. The presenta- addition, the Committee also considered upcoming changes to tion was followed by dynamic Q&A session between AmCham WKHODERUODZDQGWKHUHOHYDQW¿QGLQJVIURPWKHUHFHQWFRQIHU- members and the guests. HQFHRQODERUULJKWVZKLFKWKH*HRUJLDQ3DUOLDPHQWRUJDQL]HG

42 | Investor.ge DECEMBER-JANUARY/2017-18 NEWS

'XHWRWKHJURZWKLQWKH.30*$G- visory business in Georgia in recent years and the expectation of further develop- PHQWVLQWKLVPDUNHWLQ*HRUJLD.30* Georgia needed an experienced person to lead this part of the business. Irina, with her wealth of experience in Deal Advi- sory, Risk Consulting and Management Consulting along with her background in Audit was the ideal candidate. Irina has worked with some of the largest businesses in Georgia on numerous projects over the last four years and has gained a huge amount of experience especially in the telecoms sector. $QGUHZ&R[VKDOO0DQDJLQJ3DUWQHU IRU.30**HRUJLDH[SODLQHGZKDWWKLV PHDQWIRU.30**HRUJLDDQGIRUKLP SHUVRQDOO\³7KHDGGLWLRQRID3DUWQHULQ the Advisory business greatly enhances .30*VFDSDELOLWLHVWRVHUYHFOLHQWV¶ needs and puts us in a great position to be ready for additional growth in this area. Also for me personally I am extremely happy for Irina to get through the very ULJRURXV3DUWQHUDGPLVVLRQSURFHVV which is a testament to her strength of character, determination and versatility. I am sure that she will do a great job and encourage others by her achievements.” ,ULQDDOVREHFRPHVWKH¿UVWIHPDOH SDUWQHULQWKH%LJ¿UPVLQ*HRUJLD DQGUHÀHFWV.30*¶VJHQGHUHTXDOLW\ credentials. Irina said “During the past couple of \HDUVWKH$GYLVRU\WHDPLQ.30**HRU- GEORGIA ANNOUNCES gia grew from a small pool of advisory professionals to practically independent APPOINTMENT OF NEW PARTNER teams of Transaction services, Valua- tions, Financial Risk Management, Risk 2Q2FWREHU.30*LQ*HRU- nia, Georgia and the UK. Consulting professionals. I am very gia promoted Irina Gevorgyan to partner. Irina is a Fellow of the Association proud of our achievement and extremely Irina has been heading up the Advisory RI&KDUWHUHG&HUWL¿HG$FFRXQWDQWVLQ happy to lead this team. I believe that the practice in Georgia since 2013 and has the UK and holds an MBA from the advisory market in Georgia will continue overseen the growth in the Advisory prestigious IE Business School in Ma- growing and I will do my best to lead team from two to 13 people. Irina joined drid. Irina is also a registered auditor in .30**HRUJLD$GYLVRU\WHDPWRIXUWKHU .30*LQDQGKDVZRUNHGLQ$UPH- Georgia. success”

DECEMBER-JANUARY/2017-18 Investor.ge | 43 NEWS

when he said he “instantly fell in love with it.” “I started programming in the 5th grade and instantly fell in love with it. Since then, my utmost goal was to get a job in one of the world’s biggest software companies and did my best to bring my skills to the needed level. For the past six years, I initiated eight software startups, out of which I am currently running two of them back in Georgia,” he said. “I also worked for more than 10 different companies and governmental structures and eventually did projects on probably all popular programming languages for various platforms. I believe WKLVH[SHULHQFHSOD\HGDVLJQLÀFDQWUROHWR get an invitation to Facebook’s technical interview.” As an intern at Facebook headquarters, Luka said he will be working as a software developer. “The group matching process is done using an employee’s skills closer to the internship period, but due to my background, I believe any software project at SDSU’s Luka Lomtadze Chosen for Facebook will be exciting for me. I feel like I have just embarked on the highway leading to huge future successes. I feel Coveted Facebook Internship like now I will move even faster and thus ZLOODFKLHYHVLJQLÀFDQWO\PRUHLQP\OLIHµ INVESTOR.GE SPOKE WITH SAN DIEGO STATE he said. Luka noted that Facebook is the most UNIVERSITY (SDSU) JUNIOR LUKA LOMTADZE ABOUT popular social media platform in Georgia BEING SELECTED AS THE COUNTRY’S FIRST INTERN AT - and in the world. FACEBOOK. But he noted that the company has become more than a networking system. “Facebook is a company which unites Luka Lomtadze, a junior in the SDSU impossible,” Luka told Investor.ge. more than tens of thousands of different Computer Engineering program, will work “Statistically, only 0.132% of applicants softwares, including Instagram, WhatsApp, as a software developer intern at Face- get this job. Being among them and also Oculus VR and many other popular ser- book headquarters — one of the most EHLQJ WKH ÀUVW 6'68 LQWHUQ DW )DFHERRN vices,” he said. prestigious internships in the world. feels like we are doing really great in our “I believe the younger generation On average, Facebook receives challenge. It might seem hard and chal- always tries to do be different, tries to do DSSOLFDWLRQVDQQXDOO\LQWKHÀHOG lenging, but it is totally possible. I believe extraordinary things, and Facebook’s so- of software development, he noted in a the fact that I could do it will motivate cial networking became the very ordinary blog post. It hires just 330 interns. others to do their best.” thing in our lives people can’t live without,” +HLVWKHÀUVWVWXGHQWLQWKHKLVWRU\RI SDSU Georgia Dean Ken Walsh said he said. SDSU to earn a position in the social media Luka is an example of what the university “I believe Facebook is the most popu- giant’s coveted internship program. Prior is working toward for every student. lar social networking system in Georgia to studying at SDSU, Luka graduated from “The goal of the SDSU Georgia project for all generations–almost all teenagers Kutaisi’s Physics and Math school. is economic growth, and we achieve this are at least actively using Instagram and “Being here on the main campus in goal by helping students to reach their most of the organizations and businesses California, I have been feeling a fervent dreams in Science and Technology. vigorously promote their products/services responsibility of being Georgian, which is /XNDLVWKHÀUVWRIPDQ\VWXGHQWVZKR through Facebook’s main social network- one of the biggest motivations for me all will be taking advantage of this opportu- ing platform. I think the reason for it is just the time. I and my Georgian friend have nity,” Ken Walsh told Investor.ge. because of it is Facebook! – the world’s an ardent desire to challenge everyone Luka has been fascinated with pro- most powerful magnet which brings all who thinks stereotypically that nothing is gramming since he was in the 5th grade, people together.”

44 | Investor.ge DECEMBER-JANUARY/2017-18 NEWS

The annual gala and other fundraising homes and in a small hospice AFG: Supporting efforts have allowed AFG to help parts of Together for Real Changes—ad- the community that are often ignored, vocacy and day centers for parents of Kiladze noted. disabled children the Tradition of “In general, AFG’s biggest achieve- Children with Leukemia in Hema- ment has been to promotion the tradition tology/Oncology Center—contributed of philanthropy and corporate social re- equipment to the new molecular lab in the Philanthropy sponsibility, introducing palliative care to Iashvili Children’s Hospital and art supplies INVESTOR.GE SPOKE WITH LENA the country of Georgia, raising awareness for their rehabilitation program KILADZE, AMERICAN FRIENDS IN of young generation in voluntary activities, Eco Summer Camp—ecological/ GEORGIA’S EXECUTIVE DIRECTOR- need of cultural heritage preservation, as- environmental program and holiday for GEORGIA, ABOUT THE CHARITY’S sisting and helping the issues that were less children in Tbilisi whose parents are unable ACCOMPLISHMENTS IN 2017 AND assisted and less paid attention by all other to take them out of the city ITS PLANS FOR THE MONEY IT RAISES donors and the state,” she said. Cultural Preservation Program—rais- DURING ITS ANNUAL GALA, WHICH Last year, the gala raised $90,000, ing awareness about the importance of WILL BE HELD ON DECEMBER 9. funds that were used to help the elderly preserving culture and many others. First Step Georgia Day Care Center— The American Friends of Georgia - AFG AFG’s Christmas Charity Gala will be for disabled children - has been helping children and other held on December 9, 2017, at the Biltmore C.O.A.T.S.—AFG participates in this vulnerable citizens of Georgia since 1994. Hotel in Tbilisi. program, providing warm clothing to For the past several years, it has funded Thanks in part to the money AFG children from our projects in Nikozi, Bediani its innovative and effective projects and earned last year, it has been able to con- and Dzegvi programs by holding an annual charity tinue important work with children in need, She added that AFG started a new gala. DVZHOODVRWKHUEHQHÀFLDULHV project in 2017, the Zaza Pachulia Bas- The event is more than an evening Kiladze said AFG continued several NHWEDOO $FDGHP\ ZKLFK EHQHÀWHG out - and more than just a fundraiser, Lena projects and programs from 2016, includ- children from all over Georgia. Kiladze told Investor.ge. ing: AFG was also able to start an emer- “The Gala is continuing a tradition of Youth Platform (social and cultural JHQF\ PHGLFDO IXQG ZKLFK ÀQDQFHG D promoting philanthropy in Georgia to ben- programs)—for children to learn about life-saving kidney transplant in Belarus for HÀWWKHPRVWQHHG\FKLOGUHQDQGHOGHUO\ cultural preservation and volunteerism in a Georgian male and provided assistance in Georgia. AFG’s annual Charity Gala AFG’s projects to a Georgian woman who is undergo- brings together different groups of people Dzegvi Shelter Community—began ing an experimental treatment at NIH in around a project—corporations, embas- reconstruction of a building in Dzegvi Maryland, United States. sies, associations, citizens, well-known where disabled adults, homeless elderly The funds raised at this year’s gala will artists, musicians—and demonstrates that and single mother and their children live be used primarily for two focus projects, Only Together Can We Make A Difference. Bediani Children’s Village—for former Kiladze said. The contribution and participation of lead- street and abandoned children AFG is working to complete the re- ing, successful Georgian corporations turn Higher Education Scholarship Fund— construction of Dzegvi Shelter Community into long term partnership that is very im- university education for former street building, which she said will enable the portant for developing and strengthening children charity to start running rehabilitation and civic society and solving social problems Hospice and Home Care Program— educational programs, as well as start in Georgia,” she said. nursing care for ill and poor elderly in their small social entrepreneur projects. The funds raised will also be used to fund another year of the Hospice and Palliative Home Care Program in Tbilisi providing care for the elderly. .LODG]HQRWHGWKDWUDLVLQJIXQGVWRÀQ- ish the Dzegvi Shelter Community building will be a major accomplishment for 2017. “The building will not only include residential facilities for inhabitants but will also meet the critical need for additional public spaces for educational and voca- tional training, medical care, art therapy, and a children’s gymnasium,” she said. “Those being helped are disabled adults, homeless elderly, and single moth- ers with their children,” she said. AmCham Company Members as of December 2017

PATRON MEMBERS British American Tobacco Dentons Georgia LLC GMT Group 71 Vazha Pshavela Ave. 10 Melikishvili St. 4 Freedom Square Tel: 2157500/01/02; Fax: 2157503 Tel: 2509300; Fax: 2509301 Tel: 2988988; Fax: 2988910 www.bat.com www.dentons.com www.gmt.ge BP Exploration Georgia 24, S. Tsintsadze St. Tel: 2593400 Gosselin Mobility Georgia www.bpgeorgia.ge Diplomat Georgia Budget Rent a Car - Otokoc 3 M/D, Didi Digomi 65, Kakheti Highway Georgia LLC Tel: 2596601/02/03; Fax: 2596600 Tel: 2984950 37 Rustaveli St. www.gosselinmobility.eu www.diplomat.ge KPMG Georgia LLC Tel: 2234112 www.budget.com.ge 3rd Floor, Besiki Business Center, 4 Besiki St., 0108 Grant Thornton LLC Tel: 2935713; Fax: 2982276 EY Georgia 61 D. Aghmashenebeli Ave. www.kpmg.ge 44 Kote Abkhazi St. Tel: 2604406 Caucasus University Tel: 2439375; Fax: 2439376 www.grantthornton.ge .RVWDYD6W%OGWKÀ www.ge.ey.com Tel: 2377777; Fax: 2313226 PwC Georgia www.cu.edu.ge 12 M. Aleksidze St., 0160 Greco Group King David Business Center 1 Nutsubidze St. F H Bertling Georgia Ltd. Tel: 2508050; Fax: 2508060 Tel: 2393138; Fax: 2311107 Room 3, 4th Floor, www.pwc.com www.greco.ge Chemonics International 154 Agmashenebeli Ave. 5, 2nd Blind Alley, Chavchavadze St. Tel: 2252287 Tel: 2234311; Fax: 2234309 www.bertling.com www.chemonics.com GT Group UGT 48 B. Cholokashvili St. D&KDYFKDYDG]H$YHWKÀRRU Tel: 2740740 Tel: 2220211; Fax: 2220206 www.gtgroup.ge www.ugt.ge FINCA Bank Georgia 9D]KD3VKDYHOD$YHUGÀ CleanTech Ltd. Tel: 2244949 5 Avlip Zurabashvili St., 0144 ZZZ¿QFDJH GULF Georgia Tel: 2922202 by Sun Petrolium Georgia LLC www.cleantech.ge Pixel Business Center, CORPORATE A MEMBERS 34 Chavchavadze Ave. Food TV Geo LLC Tel/Fax: 2496444 45b. M. Kostava St. www.gulf.ge AECOM Georgia LLC Colliers International Tel: 2931570 34, Chavchavadze Ave. Georgia LLC www.foodtvgeo.com Tel: 555603200 11th Floor, King David Business Hilton Batumi www.aecom.com Center, 12 M. Aleksidze St. 0171 13 Takaishvili St., Batumi Tel: 2224477 Tel: 292092 www.colliers.com Frontera Resources Georgia www.hilton.com Alliance LLC 12 Paliashvili St. 135 King Parnavaz St., Batumi Tel: 2252412 Tel: 591555757 www.fronteraresources.com www.alliancegroup.ge Iberia Refreshments, JSC Conformity Assessment Tetri Khevi Hesi District, Orkhevi International (CAI) LLC Tel: 2241091; Fax: 2241090 8 Politkovskaya St., 1086 Gazelle Finance Georgia LLC www.pepsi.ge Alliance Group Holding, JSC Tel: 595690008 2I¿FH1LNR1LNRODG]H6W 47/57 M. Kostava St., 0179 www.ca.international Tel: 2424181; Fax: 2998112 Tel: 2904304 ZZZJD]HOOH¿QDQFHFRP www.agh.ge IMSS Ltd. 10a Bakhtrioni St. Tel: 2920928 &XVKPDQ :DNH¿HOG*HRUJLD American Medical Centers, www.imss.ge WKÀRRU%ORFN General Electric Georgia 71 Vaja-Pshavela Ave. 5th Floor, Pixel Bulding, 11 D. Arakishvili St., Tbilisi Tel: 2474849 34 Chavchavadze Ave. Tel: 2500020 ZZZFXVKPDQZDNH¿HOGJH Tel: 2259516 / 2259505 Kartlos Group 114, Gorgiladze St., Batumi www.ge.com 20 Ushangi Chkheidze St., 0102 Tel: (+995 32) 250 00 77 Tel: 599540893 www.amcenters.com www.kartlosgroup.com Dechert Georgia LLC Georgian American Alloys, Inc. Avon Cosmetics Georgia LLC WKÀRRU3L[HOEXLOGLQJ 200 S Biscayne Blvd Suite 5500, 34 Chavchavadze avenue Kavkaz Cement JSC 117 Tsereteli Ave. Miami FL 33131 USA Tel: 2334719 29 Andronikashvili St., 0189 Tel: 2226805; Fax: 2226806 Tel: (1)3053757560 www.dechert.com Tel: 2619090 www.avon.com www.gaalloys.com www.kavkazcement.ge

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

46 | Investor.ge DECEMBER-JANUARY/2017-18 Marriott Hotels, Resorts & Suites Risk Management and Insurance Air Astana Airlines JSC BLB (Business Legal Bureau) 13 Rustaveli Ave. &RPSDQ\³*OREDO%HQH¿WV 5th Floor, Pixel Business Center, 1 Shevchenko St, Apt.1 Tel: 2779200; Fax: 2779210 Georgia” 34 Chavchavadze Ave. Tel: 2995797 www.marriott.com 7 Polikarpe Kakabadze St. Tel: 2514999 www.blb.ge Tel: 2500001 www.airastana.com ZZZEHQH¿WVJH

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

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

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

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

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

DECEMBER-JANUARY/2017-18 Investor.ge | 47 AmCham Company Members as of December 2017

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

Legal Partners Associated LLC Dorche Branch Prepabrik Iapi Ve Gvinadze & Partners LLC 2I¿FH%HVLNL%XVLQHVV&HQWHU Inshaat Sanai Tijaret JSC Georgian Express 44 Kote Abkhazi St, 0105 4 Besiki St. 0108 026/13 Ilia Chavchavadze Ave. 105, Tsereteli Avenue, 0119 Tel: 2438970, Fax: 2438971 Tel: 2200203; Fax: 2250458 Tel: 593472419 Tel: 2696060 www.gvinadzeandpartners.ge www.lpa.ge www.dorce.com.tr www.dhl.com Liberty Bank JSC HeidelbergCement Georgia 74 Chavchavadze Ave. Duty Free Georgia 21 Al.Kazbegi Ave. Tel: 2555500; Fax: 2912269 UGÀRRU%HVLNL6W Georgian Hospitality Group Tel: 2474747 www.libertybank.ge Besiki Business Center 22 Peritsvaleba St., 0103 www.heidelbergcement.ge Tel: 2430150 Tel: 2987789 www.dfg.ge www.ghg.ge Luca Polare 54 Oniashvili St. Herbalife Nutrition Tel: 2990399 Bld. 4a Tamarashvili St., 0116 www.lucapolare.com Efes Brewery in Georgia - Tel: 2202929 Lomisi JSC Georgian Industrial Group LLC www.herbalife.com Village Natakhtari, Mtskhta Region GIG Plaza, 14 Gazapkhuli St., 0177 Maqro Construction Tel: 2357225 Tel: 2210187 22 Panjikidze St. Tel: 2000909 www.natakhtari.ge www.gig.ge Hualing International Special www.maqro.ge Economic Zone 25 Apt. 34/36 Kobuleti St. Enviroserve Caucasus Tel: 591005900 Maqro Food “Dinehall” [email protected] Georgian Integrated Systems www.hualing.cn 28 Rustaveli Ave. www.enviroserve.ae (GiS) Tel: 2001616 2I¿FH$EDVKLG]H6W www.dinehall.ge Tel: 2243724 Hydrolea LLC www.gis.ge Mercure Tbilisi Old Town EVEX Medical Corporation 11 A. Apakidze St. 9 Gorgasali St., Old Tbilisi, 0105 40 Vazha-Pshavela Ave. Tel: 790420015 Tel: 2006060 Tel: 2550505 www.hydrolea.com www.mercure.com www.evex.ge Georgian Resources Company 3-5 Kazbegi St. ICS Ltd. TNT Agent in Georgia Mgaloblishvili Kipiani Dzidziguri Tel: 2936676 25 Agmashenebeli Ave. (MKD) ExpoGeorgia JSC www.georgianresources.com Tel: 2910220 118 Tsereteli Ave., 0119 2I¿FH9D]KD3VKDYHOD$YH www.tnt.ge Tel: 2553880 Tel: 2341100 www.mkd.ge www.expogeorgia.ge

Geo Steel LLC ILF Beratende Ingenieure ZT Mina JSC 36 Davit Gareji St., Rustavi, 3700 GmbH Branch in Georgia 4 Besiki St. Gebrüder Weiss LLC Tel: 2243794 15 Tamar Mepe Ave. Airport Adjacent Territory, Tel: 2449981/82/83; Fax: 2449980 www.geosteel.com.ge Tel: 2199453 www.mina.com.ge Kakheti Hwy www.ilf.com Tel: 2710011 www.gw-world.com Mira Hotels Ltd. Brose Street Turn,Old Tbilisi Globalink Logistics LLC International Black Sea Tel: 2242244/55/88 60 Sh. Nutsubidze St., 0186 University www.riverside.ge Geocell Tel: 2000238, 2208147 David Agmashenebeli Alley 13 km, 3 Gotua St. www.globalinkllc.com 2, 0131 Tel: 2770100, ext. 7435; Tel: 2595005 Murphy Bridge Fax: 2770119 www.ibsu.edu.ge 8th Floor, Building 6, Saakadze Sq, www.geocell.ge 0160 Tel: 2007107 *ORULD//& 7LÀLV3DODFH www.murphyshipping.com 3 Gorgasali St., 0105 Isbank Georgia JSC GeoEngineering LLC Tel: 2000245 140/B Agmashenebeli Ave., 0102 15a Tamarashvili St. ZZZWLÀLVSDODFHJH Tel: 2310515 MyGPS Tel: 2311788; Fax: 2311787 www.isbank.com 6 Bokhua St., 0159 www.geoengineering.ge Tel: 2180180 www.mygps.ge GM Capital LLC JTI Caucasus Geomill LLC 2 Tarkhnishvili St., 0179 VII Floor, Pixel Business Center, National Center for Dispute 4, Chirnakhuli St. Tel: 2912626 34 Chavchavadze Ave. Resolution Tel: 2400000 www.gmcapital.ge Tel: 2604111 4/7 Rustaveli St., Rustavi www.geomill.ge www.jti.com Tel: 2193406 www.ncdr.ge

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

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

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

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

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

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

FEBRUARY-MARCH/2016 Investor.ge | 49 NEWS

AMCHAM HOSTS LUNCH WITH U.S. TRADE DELEGATION

AMCHAM GEORGIA HOSTED PARTICIPANTS OF THE CERTIFIED U.S. TRADE MISSION TO GEORGIA AT A LUNCH RECEPTION AT TBILISI MARRIOTT HOTEL ON OCTOBER 20. AMCHAM GEORGIA PRESIDENT MICHAEL COWGILL GREETED THE GUESTS AND INTRODUCED COMPANIES FROM THE MISSION. GUESTS HAD AN OPPORTUNITY TO INTRODUCE THEIR COMPANIES TO AMCHAM MEMBERS. MEMBERS AND THE TRADE MISSION REPRESENTATIVES HAD AN OPPORTUNITY TO SHARE EXPERIENCES AND GAIN NEW CONTACTS.

AGBC’s Irine Asatiani and Mamuka Tsereteli

Osman B Akyalcin (Lockheed Martian) and AmCham Georgia Vice President/Treasurer Irakli Baidashvili AmCham Georgia President Michael Cowgill and Kenneth Angell (OPIC)

Nikola Bertucci (Acrow Bridge), Dwight Nystrom (US Embassy) , Chris Jennions (Bechtel), AmCham Georgia President Michael Cowgill AmCham Georgia Board Member Esben Emborg 50 | Investor.ge DECEMBER-JANUARY/2017-18 NEWS

The event was widely attended Kakha Sharabidze (BLB)

Guests met members of the trade commission Natia Montgomery (Food TV) and Tika Dugashvili (Food TV)

Daduna Kokhreidze and Nina Tsutarova (Nodia/Urumashvili) Levan Nikoladze (LPA) and Irene Asatiani (AGBC) DECEMBER-JANUARY/2017-18 Investor.ge | 51 NEWS

Board Of Directors 2017

R. MICHAEL COWGILL PRESIDENT

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

ESBEN EMBORG LASHA GOGIBERIDZE BADRI JAPARIDZE DIRECTOR DIRECTOR DIRECTOR

AmCham Executive Director Writers George Welton Lika Jorjoliani, Tatjana Montik, Inge Snip, Sally White

Copy Editor Photos Alexander Melin George Surguladze (pages 4, 16)

Marketing & Promotion Nini Kapanadze

Promotional Design Levan Baratashvili Special thanks to all the contributors to the magazine, AmCham Georgia’s Magazine Design and Layout staff, and all our contributors. This magazine would not be possible without Giorgi Megrelishvili your help. 52 | Investor.ge DECEMBER-JANUARY/2017-18 NEWS

STEVE JOHNSON OTAR KIPSHIDZE KETTI KVARTSKHAVA DIRECTOR DIRECTOR DIRECTOR

CHRIS SCHLUETER BETSY HASKELL, DIRECTOR FOUNDING ADVISOR

GEORGE WELTON DWIGHT NYSTROM EXEC. DIRECTOR EX-OFFICIO MEMBER

AmCham Georgia Patron Members:

© The American Chamber of Commerce in Georgia, 2017 arising from the use of any product or service advertised within All rights reserved. No part of this magazine may be re-printed, or the pages of this issue. reproduced or utilized in any form or by electronic, mechanical Investor.ge is printed by CEZANNE or other means now known or hereafter invented, including AmCham Georgia: photocopying and recording, or in any information storage or rd retrieval system without permission. 36a Lado Asatiani Street, 3 ÁRRU7HO 7KHRSLQLRQVH[SUHVVHGLQWKLVPDJD]LQHGRQRWUHÁHFWWKHRSLQLRQ [email protected] of the American Chamber of Commerce in Georgia nor its Board HGLWRU#DPFKDPJHɕZZZDPFKDPJH Members or staff, unless otherwise stated. AmCham Georgia neither endorses, nor can be held liable for any eventuality www.investor.ge DECEMBER-JANUARY/2017-18 Investor.ge | 53

Season’s Greetings and Best Wishes for the New Year ʪʰʲʵ˂ʨʭʯʨˆʨʲ˄ʬʲʹ

Otar Kipshidze Avto Svanidze Georgia Managing Partner Partner [email protected] [email protected]

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