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Issue no: 1046/128 • MAY 8 - 10, 2018 • PUBLISHED TWICE WEEKLY PRICE: GEL 2.50

In this week’s issue... FOCUS Renowned Alpinist Messner ON BOOSTING BUSINESS Back to Plan PM announces extension to Startup program and Swiss Mountain Center Agency for Development and NEWS PAGE 2 Cooperation Director General talks Vocational Education PAGE 8,12 Manufacture in ! ISET PAGE 4 Electricity Market Watch GALT & TAGGART PAGE 8 Spotlight on Georgian Telecommunication

Image source: etrainingpedia.com BUSINESS PAGE 10 Radisson Blu, French Embassy Invite Michelin-Star Guria: The New Paradise Chefs to Bring Georgia to a New Level of Gastronomy of Tourism

BY KATIE RUTH DAVIES

uisine, as it stands today, is the product of the generations which have preceded us. Each of those involved has added his or her brick to this great edifi ce of gastronomy. – said world renowned French Chef, Guy Savoy.C Echoing this sentiment, the innovative vision of BUSINESS PAGE 14 the Ambassador of France to Georgia, Pascual Meunier, and the General Manager of Radisson Blu Iveria, Tbi- lisi, Jordi Kuijt, has begun to strengthen the “edifi ce” Putin’s Monumental Task: of culinary artists in Georgia. April 25th saw two Michelin star French Chefs, Gilled Chesneau and Stephane Derailing the Western Laruelle, of the Guy Savoy restaurants in Paris, visiting to give masterclasses and special guest dinners Expansion at Radisson Blu Iveria’s exclusive restaurant, ‘Androp- ov’s Ears.’ Continued on page 5 POLITICS PAGE 15

Prepared for Georgia Today Business by Markets Asof04ͲMayͲ2018 STOCKS Price w/w m/m BONDS Price w/w m/m BGEOGroup(BGEOLN) GBP33.16 Ͳ4,8% Ͳ6,4% GEOROG04/21 102.36(YTM5.87%) Ͳ0,9% Ͳ1,7% GHG(GHGLN) GBP2.79 Ͳ0,4% Ͳ8,5% GEORG04/21 106.63(YTM4.43%) Ͳ1,1% Ͳ1,3% TBCBankGroup(TBCGLN) GBP17.46 Ͳ3,9% Ͳ3,0% GRAIL07/22 107.52(YTM5.70%) Ͳ0,4% Ͳ2,0% BGEOLN07/23 100.80(YTM5.82%) Ͳ0,2% Ͳ0,4% COMMODITIES Price w/w m/m CrudeOil,Brent(US$/bbl) 74,87 +0,3% +10,1% CURRENCIES Price w/w m/m GoldSpot(US$/OZ) 1314,50 Ͳ0,7% Ͳ1,4% GEL/USD 2,4557 Ͳ0,4% +2,8% GEL/EUR 2,9366 Ͳ1,7% +0,1% INDICES Price w/w m/m GEL/GBP 3,3240 Ͳ2,0% Ͳ1,1% FTSE100 7567,14 +0,9% +7,6% GEL/CHF 2,4500 Ͳ1,6% Ͳ1,5% FTSE250 20421,88 +0,7% +6,0% GEL/RUB 0,0393 Ͳ0,8% Ͳ5,5% DAX 12819,60 +1,9% +7,2% GEL/TRY 0,5804 Ͳ4,7% Ͳ2,8% DOWJONES 24262,51 Ͳ0,2% Ͳ0,0% GEL/AZN 1,4442 Ͳ0,7% +2,9% NASDAQ 7209,62 +1,3% +2,4% GEL/AMD 0,0051 Ͳ +2,0% MSCIEMEE 160,89 Ͳ2,5% Ͳ6,3% GEL/UAH 0,0933 Ͳ0,5% +2,6% Chat with us MSCIEM 1136,17 Ͳ1,7% Ͳ1,7% EUR/USD 0,8360 +1,4% +2,6% SP500 2663,42 Ͳ0,2% +0,7% GBP/USD 0,7390 +1,8% +4,1% MSCIFM 2888,63 Ͳ2,6% Ͳ4,5% CHF/USD 1,0000 +1,2% +4,1% GTIndex(GEL) 1582,68 ͲͲRUB/USD 62,4574 +0,5% +8,7% GTIndex(USD) 1208,13 ͲͲTRY/USD 4,2309 +4,7% +5,8% , AZN/USD, 1,6936 Ͳ,0,2% Ͳ,0,1% GEORGIA TODAY 2 NEWS MAY 8 - 10, 2018 Tbilisi Court Bans Georgian Condoms for Depicting Religious Symbols

of Georgia and the case-law of the Euro- BY THEA MORRISON pean Court. Therefore, we believe the court’s judgment limiting freedom of speech on account of protecting religious bilisi City Court has fi ned freedoms and national dignity is a dan- Georgian condom produc- gerous precedent of censorship,” the ing company AIISA with NGO stated. GEL 500 and banned four The lawsuit against AIISA was fi led by of its condoms from the Tbilisi City Hall, which, on its own, was Tmarket for unethical advertising. addressed by the far-right and national- The company was also tasked to with- ist group, ‘Georgian Idea,’ asking for an draw the advertisement and the distrib- “adequate reaction” regarding the pack- uted items, as they had “violated the aging of the condoms. morality and dignity of society.” AIISA condoms also depict prints of Tbilisi City Court judge, Lasha Tavart- various famous persons, including Rus- kiladze, found the following imagery on sian President Vladimir Putin, Kim Jong the condom packaging unethical and Un, Stalin, Adam and Eve and many offensive to the religious feelings of a quotes from Georgia’s famous poem - particular group as well as national dig- The Knight in the Panther’s Skin, written nity: in the era of Queen Tamar. 1. Queen Tamar, a Medieval ruler of On March 20, the Patriarchate of the Georgia who has been sanctifi ed by the released a Georgian Orthodox Church, with an statement regarding the company, say- inscription – Gate of Thrones in Tamar; ing AIISA had insulted religious feelings 2. A left palm, with a condom on two and naming their actions “blasphemy.” fi ngers. The court considered this as Moreover, a rally against the company representing the Blessing Right Hand was held in Georgia’s western city of by which the clergymen of the Orthodox Photo: Banned AIISA condom. Source: AIISA , where protesters demanded Church depict the cross; turning point and respected both by the the decision of Tbilisi City Court, she (NGO) Georgian Democratic Initiative proper punishment of the company rep- 3. A photo of a panda with the text – State and the Church. plans to address the European Court of (GDI), which protects Gachechiladze’s resentatives. Would Have a Wank but it’s Epiphany. The owner of AIISA company, Anania Human Rights (ECHR) in Strasburg. interests, says the judgment is not in line A similar rally was held in Tbilisi on As the company itself explains, these are Gachechiladze, believes the court verdict “This is censorship and restriction of with the Constitution of Georgia. April 19, when the students of Georgia’s lyrics from a Georgian band’s song; contradicts freedom of expression and freedom of expression. I am not going “We believe that the court’s judgment Theological Seminary, run by the Patri- 4. Packaging that refers the 12th Cen- endangers the democratic state and soci- to remove the production from sales contradicts the Constitution of Georgia, archate of the Georgian Orthodox Church, tury Battle of Didgori between King ety. until the case is considered by all instance the Convention for the Protection of gathered at the old building of Parlia- David the Builder and Seljuk Turk forces, She says she will appeal the court ver- courts,” Gachechiladze stated. Fundamental Rights and Freedoms, the ment and called on the state to “protect which in Georgia is regarded as a historic dict and if the upper instance court upholds Non-Governmental Organization jurisprudence of the Constitutional Court Christian society from insults.” Passenger Traffi c at Renowned Alpinist Messner Back to Georgian Airports Plan Caucasus Mountain Center ast year, acclaimed mountain- eer Reinhold Messner visited Georgia at the invitation of Prime Minister Giorgi Kviri- up by 34% kashvili, to familiarize himself withL Georgia’s mountains, in the com- pany of experts for spatial planning and representatives of the Mountain Resorts Development Company. This time, together with prominent architect Wer- ner Tscholl, he visited Svaneti and the site allocated for construction of the Caucasus Mountain Center, followed by a detailed discussion with Georgian Prime Minister Giorgi Kvirikashvili. The PM recalled Messner’s previous Gotsiridze. The meeting was also attended According to the Head of the Govern- visit and praised the Caucasus Mountain by Executive Director of the Georgian ment, the Caucasus Mountain Center Center project as unique. Wine Association, Tina Kezeli. Along will have a signifi cant impact on Geor- “I have saved the project’s blueprint with Georgia’s mountains, Messner has gia’s mountaineering and the country’s drawn by Messner. This museum will taken a liking to the oldest Georgian further development in this direction. be open on all sides to offer unique views winemaking traditions. “The Caucasus Mountain Center pro- in every direction, in perfect harmony Reinhold Messner was the fi rst moun- ject will be designed by the best archi- with the mountains, notably Ushba. It is taineer in the world to ascend Mount tects. In his visit, Reinhold Messner was located high in the mountains, accessible Everest without supplemental oxygen accompanied by Werner Tscholl, one of by cable transport and road. It is a truly and technical equipment in 1980, and to the best architects in Italy and 2016 unique project, and I am excited about have ascended all 14 peaks over 8,000 Architect of the Year. He will design the launching it,” Kvirikashvili emphasized. meters. museum as a partner facility of Messner’s He then discussed the details of the The mountaineer was 13 when he started network of museums. This means that Caucasus Mountain Center with the climbing diffi cult routes. Together with everyone visiting his museums through- acclaimed mountaineer, the First Vice his brother, 11 years of age at that time, out Europe will receive information Prime Minister, Minister of Economy he was recognized among Europe’s best about Mestia, Svaneti, and Georgia,” the and Sustainable Development Dimitri alpinists. Messner is the fi rst to have PM stated. Kumsishvili; Minister of Regional Devel- crossed the Antarctic, Greenland, and According to Messner, the project is a opment and Infrastructure, Maya Tskit- the Gobi Desert on foot. He has authored great opportunity for placing Georgia ishvili; Head of the Mountain Resorts more than 80 books describing his trav- Photo source: TAV Georgia in the spotlight of world mountaineer- Development Company, Alexandre Ono- els an adventures. Messner is a former ing, the potential for which the country prishvili; and mountain planner Giorgi Member of the European Parliament. Batumi airport has seen over 68,261 pas- certainly possesses. BY THEA MORRISON sengers so far in 2018, 59% more compared “The Caucasus Mountain Center will to the same period of 2017 which posted tell the world the story of relations a result of 42,983 passengers. between Mankind and the mountains,' n January-April 2018, Georgian Passenger traffi c in Kutaisi International Messner told the PM. "Most likely, we airports served a total of 1,208,430 Airport has increased by 14%. The air- will start building next year. Your land- passengers, 34% more compared port served 104,082 passengers in the scapes are some of the most beautiful to the same period of 2017, which same period of 2017; while, this year the in the world, especially Ushba, a key saw 903,878 passengers. indicator reached 118,433 passengers. mountain in the history of alpinism. Your IDuring the fi rst four months of 2018, The local destination airports in Mes- mountains are perfect for mountaineer- Tbilisi International Airport served tia and Ambrolauri received 1,632 pas- ing and hiking. I believe that the Cauca- 1,020,104 passengers, 35% more compared sengers in four months. sus will be as strong as the Alps as an to the number of passengers transferred In January-April 2018, 91 fl ights were attraction for hikers and mountaineers in the same period last year (754,783). conducted in local airports of Georgia. from all over the world." GEORGIA TODAY MAY 8 - 10, 2018 NEWS 3 Gov't to Tighten Sanctions for Violating Fire Safety Rules

tional buildings and complexes; shop- a GEL 100 fi ne. However, the worst incident happened facilitated the evacuation of people from BY THEA MORRISON ping centers, complexes and hypermar- If the safety rules are violated by a pri- in the Leo Grand Hotel in Georgia’s Black the building during the fi re. kets; clubs and entertainment-leisure vate fi re-rescue unit, the owner company Sea coastal city Batumi, which left 11 The new draft law has already been centers; hotels, guesthouses, tourist bases will be fi ned from GEL 5000 to GEL people dead in November last year. submitted to Parliament for considera- he Emergency Management and campsites; sanatoriums; leisure 10,000. Georgia’s Ministry of Inter- tion. Service of Georgia has pre- houses; public catering facilities (res- Violation or failure to comply with nal Affairs assessed that the pared a draft law which taurants); 2000 m2 or more general retail emergency situation prevention or to 5-star hotel had been func- envisages stricter penalties and wholesale trade buildings / territo- react to requests on important buildings tioning without observing for breaching fi re safety ries; railway and motor transport sta- shall be subject to a fi ne of GEL 1000. the safety norms, being Tregulations. tions, as well as metro, air and sea build- If the fi re-fi ghting brigade is sent to the unequipped with an auto- According to the draft, in case of viola- ings (ports); oil bases and terminals fi re location late, this will result in a 1000 matic fi re and alarm sys- tion of fi re safety rules, fi nes will be ten containing 500 m3 or more tank volumes; GEL fi ne. tem and not possessing times greater than previously. petrol and gas stations; thermal and Failure to meet the requirements for the right ventilation sys- Violation or failure to comply with the hydro power plant buildings; storage the protection of the population, mate- tem, which would have requirements of the fi re safety rules and and construction material warehouses; rial and cultural values during an emer- conditions shall be subject to a fi ne of and grain storage and / or processing gency situation will be subject to a fi ne GEL 500. enterprises (mills). of GEL 3000. However, if violated during a special Violation of rules of evacuation and Several Georgian markets and shop- fi re-fi ghting regime, the same action will emergency exits, fi re alarms, safety ping centers were destroyed in blazes be subject to a fi ne of GEL 1000. Cur- announcements during a fi re, and evac- in 2017 due to the absence of proper rently, according to the Code of Admin- uation management, will be fi ned from safety systems in the buildings. istrative Offenses, the breach of above- GEL 1000 to GEL 5000 while the current mentioned rules envisages GEL 50 and law only implies a GEL 200 fi ne. GEL 200 fi nes, respectively. If the law regarding access to buildings According to the draft, the absence of has been violated, it will be followed by fi re-fi ghting systems, special equipment and fi re extinguishers in buildings will result in a GEL 1,000 fi ne instead of the current GEL 100. According to the project, buildings subject to state fi re supervision will be: buildings owned by the state authority and municipality bodies; educational, sports, medical and cultural heritage monuments; more than 28m-high public buildings; Public buildings with two or more underground fl oors; multi-func- GEORGIA TODAY 4 BUSINESS MAY 8 - 10, 2018

Manufacture in Georgia!

a lower share of busi- nesses expect their business conditions to worsen.

SALES PRICES EXPECTATIONS The Sale Price Expec- tation Index increased from 11.2 points (Q1 2018) to 11.7 points (Q2 2018). The increase in the Index is driven by signifi cant improve- ment in the manufac- turing and construc- tion sectors. The agriculture sector's verall, the BCI gained 8.3 period, sales (production or turnover) sales price expecta- points compared to Q1 of the 236 fi rms surveyed increased from tions decreased the most, by -49.5 points. lack of demand as the main limiting 2018. Expectations in the 35.1 (Q1 2018) to 41.6 (Q2 2018). The manufacturing sector expects a factor for further business develop- private sector in Georgia A signifi cant increase in performance noticeable increase in prices over the ment. increased signifi cantly, by was observed almost in all sectors: con- next three months. (for more informa- O struction (+40.2), manufacturing tion, see Table). METHODOLOGY (+34.2), retail trade (+12.3), service The overall Sales Price Expectations The ISET Policy Institute, working in (+6.3) and others (+17.2). Signifi - Index increased for large companies and partnership with the International Cham- cant improvement means that in decreased for SMEs. The majority (72%) ber of Commerce in Georgia (ICC), these sectors, the weighted bal- of all surveyed fi rms are not going to implemented the Business Confi dence ance between positive and nega- change the prices they charge over the Survey in December 2013, and publishes tive responses decreased com- next three months. Only 7% of fi rms the Business Confi dence Index (BCI) on pared to the previous quarter. In and construction (-14.5). The highest expect to decrease prices, and 21% expect a quarterly basis. the agriculture and fi nancial sec- increase was reported in the manufac- to increase prices in the future. Confi dence is measured through a sim- tors, production/turnover/sales turing and retail trade sectors (see the ple survey instrument targeted at top for the past three months worsened table). LIMITING FACTORS business executives. The survey is online. by -64.0 and -16.2 points, respec- As one can see from the table below, A low level of consumption activities Answers obtained from the surveys are tively. business expectations for the three-month and lack of access to fi nancing continue aggregated in the form of “balances.” Compared to the previous quar- period April through June 2018 increased to be two of the most signifi cant obsta- Balances are constructed as the differ- ter, a lower share of surveyed fi rms for large size and decreased for SMEs cles for businesses. From a total of 236 ence between the percentage of respond- (57%) stated that employment fi rms. remained the same over the past The majority (58%) of surveyed busi- nesses do not expect 18.1 percentage points, and reached 67.0 any changes in index points (up from 48.9 points in Q1). employment over the Business performance over the past three next three months. months increased, reaching nearly 41.6 Furthermore, 33% of points (increasing from 35.1), indicating fi rms stated that they an upturn in production/turnover/sales. would employ more The synergy of improved performance employees in the in the past three months and higher future. Meanwhile, expectations have led to a raise in over- 57% of the surveyed all BCI. fi rms expected that The BCI index increased in all sectors the economic condi- except agriculture: manufacturing (+41.6), tion of their busi- retail trade (+14.6), construction (+10.0), nesses would fi nancial (+2.6), service (+4.1) and other improve over the fi rms participating in the survey, 26% ents giving positive and negative replies. (+7.1). The agriculture sector worsened next three months, of large sized fi rms and 36% of SMEs The methodology for compiling the by -28.0 points. and 35% did not noted that lack of access to fi nance was indices is based on the Joint Harmonised expect any changes their main obstacle. Meanwhile, 16% EU Programme of Business and Con- PAST PERFORMANCE in the future, while of large fi rms and 27% of SMEs chose sumer Surveys. Businesses’ actual performance increased signifi cantly compared to the fi rst quar- ter of 2018. In the Q2 2018 reporting three months. More businesses reported an increase and fewer decrease in employ- ment. Moreover, 42% of fi rms claimed that their busi- ness activities remained unchanged over the past three months, while 36% of participants stated that they had improved their performance, and 22% stated the decline.

EXPECTATIONS The Expectations Index increased by 18.1 index points in the second quarter of 2018. Expec- tations about the next three months improved Tel: (995 32) 2 45 08 08 almost in all sectors, 10 Galaktion Street E-mail: [email protected] except agriculture (-57.3) GEORGIA TODAY MAY 8 - 10, 2018 BUSINESS 5 Radisson Blu, French Embassy Invite Michelin-Star Chefs to Bring Georgia to a New Level of Gastronomy

Continued from page 1 any restaurant of this level needs to have so many things taken into consideration: “We had a vision when we opened this food, service, menu; all the small details.” restaurant to bring European gastronomy “There are many great Georgian res- to Georgia and combine it with the best taurants,” Radisson’s GM went on. “But Georgian traditions,” Jordi Kuijt told in looking at the variety of upscale Euro- GEORGIA TODAY. “There is a very rich pean style venues, we found a gap. In Georgian food tradition which we wanted Andropov’s, we had the location, the to show and develop, and we are ideally décor [by French designers Gilles et placed to do so with our Georgian chef, Boissier] and a French kitchen, and we Irakli Todadze, trained by us to a level decided to take a risk and focus on sea- that can be Gault & Millau, and in future, food. Georgia is very much a meat-lov- perhaps Michelin.” ing country and fi sh is decidedly missing, In collaboration with the French especially considering the growing num- Embassy, Andropov’s Ears hosted a full ber of businesses coming to Georgia and day of masterclasses with 10 of the best the increasing tourism; with the Geor- known and upcoming Georgian chefs, gians travelling more, experiencing and aiming, as Kuijt told us, to “bring Geor- seeing more and becoming more recep- gia to a new culinary level.” tive to novelties.” “We originally offered a masterclass We asked the two chefs about the mas- “The fi rst thing we were looking for was Air Zena, and once with Baltic Air, which With the abundance of Francophiles for just four chefs, but demand was so terclass and how they felt it had gone. the focus of the restaurant; what we could includes a one-hour stop in Riga.” and lovers of fi ne dining now here in high, we made space in the kitchen for “I was very impressed with the com- bring to the table that would surprise. We “We chose to start our restaurant with Tbilisi, and with city-dwellers being ever 10,” Kuijt said. “It was a small, effi cient petencies and adaptability of the Geor- chose to start with artichoke soup and a Georgian chef,” he added. “Irakli did more exposed to the delights of Euro- kitchen, with all the chefs listening atten- gian chefs,” said the experienced chef- black truffl e. We saw that they had salmon great things for us in the Radisson Blu pean cuisine, thanks to the work and tively to Gilled and Stephane- eager to trainer, Gilled Chesneau, titled ‘Mobile on the menu and chose that as a main, Hotel and now Andropov’s is his baby. dedication of the Andropov’s Ears team learn. They truly made the most of the Chef: Spiritual Defender of Guy Savoy.’ with chocolate ice-cream in a light biscuit Trained by European chefs, he’s changed and the French Embassy, the “edifi ce” of experience of having such high-level “And it came as something of a surprise- edging for dessert, topped by a chocolate the way he cooks. If he continues this Georgian gastronomy is guaranteed to chefs in Georgia.” after all, our only experience of Georgia coin ‘engraved’ with Guy Savoy’s logo.” way, within four years he could be the go from strength to strength in the com- “It was an honor to have two Michelin- before this was by talking to the organ- Georgian guests spoke of their pleasure level of Michelin. Andropov’s Ears and ing years. star chefs here, because, in Georgia, few izers here through conference calls.” and enthusiasm at being able to taste understand the concept and quality that Gilled mentioned their eagerness on such cuisine in a high-class Tbilisi set- Michelin entails,” he noted. “We hope arriving to try the local cuisine, includ- ting. The truffl es especially impressed to help change this.” ing the world-famous . “Geor- them. We found out from Kuijt that many Ambassador Pascal Meunier knew gian food is something totally different- of the ingredients, as standard, are brought Gilled from the Paris restaurant and, heavy on the herbs and salt, with plenty into Georgia from Europe. once he and Kuijt had a plan, they con- of fresh vegetables. Of course, we tried “We have two fl ights per week fl ying tacted Gilled and Stephane and, via con- khachapuri, and ended with a drink or in fresh products for us- oysters from ference calls, made all necessary prepa- two of Chacha.” Britannia, lobsters, crab. When the shell- rations ahead of their special visit. The day after the masterclass, the two fi sh arrive, they are still alive,” he said. Stephane Lareulle, who has been work- chefs, with their Georgian colleagues, “This is something unique to Tbilisi, and ing for Guy Savoy at Le Chiberta, l’Etoile, prepared a three-course meal for local an investment for us. We checked out since 2007, in a rare moment’s break appreciators of fi ne dining. We asked the fi sh markets in Dubai, Batumi, Istan- from the kitchen between courses, told how they had chosen which dishes to bul and Italy. But the best quality and us of the positive experience of being in prepare. best delivery came from Rotterdam in Georgia. “There is amazing hospitality,” “When we arrived, we had a careful look The Netherlands. Once a week, our he said. “The country is very beautiful.” at the Andropov’s Ears menu,” Gilles said. ingredients come on a direct fl ight with GEORGIA TODAY 6 BUSINESS MAY 8 - 10, 2018 Green Diamond: Delivering Apartments Ahead of Schedule

“I’m one of the fi rst residents of MAQRO Construction’s complex Green Diamond. I’ve very pleased with it and I’d be happy to cooperate with this company again in future. During the construction period, all the safety rules were observed- I could see it all online through their live webcams. I also appre- ciate that even when I turned up at the site without warning, I was allowed to check on the progress on my apartment.” Another resident, Mrs. Nino Turash- vili, who has long planned to start living independently, decided to make this dream to come true in Green Diamond. “I had been planning to buy a unit for a long time, but it was Green Diamond that fi nally pushed me to do it: the model and the showrooms I saw in the sales offi ce were so perfect that I made a decision within 15 minutes. A few days after the contract was signed, I decided he residential complex deliver units earlier and surprise cus- to visit the construction site and it came Green Diamond continues tomers,” he notes. “It highlights the as a complete shock to me to see this to surprise future residents company's credibility and service qual- empty space without fences. But I wasn’t in Tbilisi with its unprec- ity that we take the interests of our worried because I’d heard about the edented results. The deliv- future residents into account.” company’s reliability and how it had eryT of all 731 apartments, sold nine “Green Diamond is a unique project delivered early on its Green Budapest months before completion of the con- in Tbilisi in terms of infrastructure and construction. Two weeks on, I went struction, began one month earlier the quality,” he adds. “This is not just a again and saw how much progress had agreed deadline. residential complex, this is a different been made. For the next two years, I However, this is not the fi rst such case lifestyle, where residents can enjoy found my dealings with the company for the developer company MAQRO greenery, fresh air, beautiful gardens, to be fl exible and comfortable and I was Construction, as, in 2016, its project playgrounds for children, sports areas, offered a fl exible payment term.” Green Budapest was delivered to resi- pools, and more. Living in Green Dia- Mrs. Nino has visited the construction “I am so happy that my children will grow ested in moving away from the city dents an incredible fi ve months earlier mond will change their and their fam- site often since fi rst making her pur- up in such a healthy atmosphere,” she adds. center to escape the noise and pollution: than the agreed deadline. ily’s everyday lives. I’m also planning chase and says it is the only project in Green Diamond is the fi rst large-scale residents of Green Diamond have the Oguz Kaan Karaer, Chief Sales and to move with my family and start a new Tbilisi where you have all the facilities complex to be located in Dighomi, near opportunity to enjoy fresh air and tran- Marketing Offi cer, explains that the life in Green Diamond,” he confesses. inside. “You don’t need to go out for the city center in an ecologically clean quility. early delivery of apartments has become The delivery process began in April your daily needs as it comes with a area and in this regard, MAQRO Con- Green Diamond will launch the 3rd a tradition for MAQRO Construction. and will last for the next few months. green area, playgrounds, swimming struction was a pioneer. It is an approach stage sales in September, so people still “It’s of multilateral importance for us Mr. Alekhsandre Piranishvili was one pools, an ecologically clean area with which has been justifi ed. In modern have the chance to join and enjoy a not only to meet the deadlines, but to of the fi rst residents to receive his unit. fresh air – a rare project in the city.” cities, more and more people are inter- happy and healthy lifestyle!

GEORGIA TODAY 8 BUSINESS MAY 8 - 10, 2018

The Galt & Taggart Research team comprises Georgian and Azerbaijani fi nance and economic experts who have broad experience of covering the macro and corporate sectors of the two countries. Our current product offering includes Georgian and Azerbaijan macroeconomic research, Georgian sector research, and fi xed income corporate research. For free access to Galt & Taggart Research, please visit gtresearch.ge or contact us at [email protected]. Electricity Market Watch before the enforcement of the law. Domestic electricity consumption low base (-21.7% y/y) in March 2017. increased demand for imports drasti- FOR GEORGIA TODAY BY increased 9.3% y/y to 1.1TWh, slightly Enguri/Vardnili generation almost dou- cally. Most of the imported electricity MARIAM CHAKHVASHVILI ELECTRICITY CONSUMPTION above the planned level (+2.9%). The bled, increasing 87.5% y/y from last year’s came from Azerbaijan (77.3% of total DRIVERS IN 2017 sole contributors to consumption growth low base when Enguri had low genera- imports of Mar-18), while the rest came Consumption growth in 2017 was mainly were distribution licensees: 1) Energo- tion due to its halted operation in Feb- from Turkey. Notably, it was fi rst time ector research is one of the driven by the consumption of the non- Pro Georgia subscribers’ consumption ruary 2017. The Abkhazian region con- since 2008 that Turkey served as import key directions of Galt & Tag- residential sector: 1) The direct consum- increased by 18.8% y/y. The growth can sumed 87.4% of electricity generated country. This import was refl ection of gart Research. We currently ers increased their consumption by 18.1% be explained by addition of new com- from Enguri/Vardnili. The generation ESCO’s tender on barter of electricity provide coverage of Energy, y/y, due to increase of the Georgian mercial subscribers; 2) Telasi consump- of other regulated and deregulated HPPs won by Aksen Enerji in February 2018. Healthcare, Tourism, Agricul- Manganese production level and 2) the tion was up 10.2% y/y. also increased signifi cantly by 20.4% y/y Sture, Wine, and Real Estate sectors in ELECTRICITY PRICES IN Georgia. As part of our energy sector GEORGIA AND TURKEY coverage, we produce a monthly Elec- The average import price increased by tricity Market Watch, adapted here for 26.9% y/y to USc 5.0/kWh, from USc Georgia Today’s readers. Previous reports 3.4/kWh last year. In March 2017, there on the sector can be found on Galt & was subsidized electricity import from Taggart’s website - gtresearch.ge. Russia via Salkhino line to satisfy the excess needs of the Abkhazian region. EXPECTED CHANGES Despite higher import price, the whole- IN LEGISLATION sale market price was down by 2.3% y/y The draft law on electricity and natural to USc 5.0/kWh, due to low electricity gas sets the new threshold for manda- imports. Electricity traded at the whole- tory registration for direct consumers sale price through the market operator at 15.0 GWh of average monthly con- was 24.4% of total electricity supplied sumption from May-2018. This law is to the grid, down from 30.7% in March expected to be approved by Parliament 2017. by mid May 2018. The current law non-residential subscribers of distribu- There was no Electricity export or and 42.8% y/y, respectively, due to high The average price of electricity in Tur- requested mandatory registration of tion licensees increased their consump- transit in March 2018, although the annual water fl ow and the addition of new HPPs key was up 2.4% y/y to USc 4.1/kWh, direct consumers from all companies tion by 8.4% y/y, in line with the average balance envisaged the export of 28.0 (Dariali and Khelvachauri) to the group 17.2% below the wholesale market price connected to the high voltage (35kV+) growth rate over 2012-2017. New com- GWh. Georgian Urban Energy, owner of deregulated HPPs. Thermal genera- in Georgia. transmission grid from May 2018. After mercial entities added to the distribution of Faravani HPP, has a long-term trans- tion was up 14.4% y/y, approval of the law, companies eligible grid are the main drivers of the growth. mission and dispatch agreement, enabling but signifi cantly below to register as direct consumers will be Electricity consumption by residential the company to export the predetermined the planned level reduced from the expected 60 to the 4 subscribers of distribution licensees was volume of electricity from March to (-29.1%). Wind genera- following companies: Georgian Incor- down by 2.0% in 2017 and accounted for November each year to Turkey. For three tion showed a 21.1% y/y poration, BFDC Georgia, Tsekhi-1, and 20% overall domestic consumption. consecutive years, Georgian Urban decrease to 7.1GWh and Block Power. Other companies will Notably, the average growth rate of res- Energy has voluntarily sold electricity contributed 0.6% of total retain the option to be registered as idential consumption is 1.9% over 2012- to ESCO instead of exporting it. In 2018, supply. direct consumers, with the exception 2017 and we do not expect signifi cant Georgian Urban Energy will export only The surplus in hydro that they will no longer be able to go changes to this trend in the near future. in May, June and July. generation reduced back to the distribution companies’ Electricity generated by domestic electricity imports by services. Notably, BFDC Georgia and ELECTRICITY CONSUMPTION sources increased by 34.5% y/y. Hydro 48.4% y/y from last Geo Servers already voluntarily regis- AND GENERATION generation showed signifi cant increase year’s high base, when tered as direct consumers on April 30, – MARCH 2018 (+42.4% y/y) in March 2018 from a very interruption in Enguri PM Introduces Startup Friendly Initiative

tartup Friendly, an extension development of Georgia's economy," he of the 'Startup Georgia' pro- noted. gram, aims to serve as yet He opined that startups are the most another tool to encourage new dynamic and fastest growing parts of business in Georgia. It was the country's economy. Sintroduced by Prime Minister Giorgi "Our goal is to have as many people as Kvirikashvili at Tech Park, Tbilisi, earlier possible join this way of thinking. Startup today. Friendly seeks to provide a format for Hailed by the PM as "the latest prom- relations between rookie startups and ising project under the government's large, established and successful com- Four-Point Plan," the initiative will help panies," Kvirikashvili said. "Every startup startups establish relations with large needs access to technology and capital," businesses. while allowing large busi- he added. "This project is the bridge to nesses to engage in the development of providing young business persons with various fi elds and to make mutually access to what they need to develop." benefi cial investments. TBC Bank was the fi rst to engage in "Startup Georgia in itself has a great the startup concept, its founder himself return as it transforms young people's having started the business with just thinking into a newer, more dynamic, $500. future-oriented brand," the PM said "Such examples help shape our econ- today, going on to congratulate the win- omy, and demonstrate the enthusiasm ners of the latest Startup Georgia contest. needed to push this country forward," "You won a transparent competition in the PM said, pointing to the aim to have which not only local startup experts but startups become a form of social respon- also venture capitalists, CEOs of leading sibility for larger companies investing companies from Silicon Valley and from in and guiding them. Image source: PCMag.com various other countries took part. We "Banks will no longer look down on concluding with the information that be the last step in this direction as the to develop enthusiam and innovative have launched a bright new phase in the startup businesses," Kvirikashvili said, the Startup Friendly initiative will not Georgian government has more plans thinking in its youth.

GEORGIA TODAY 10 BUSINESS MAY 8 - 10, 2018 Spotlight on Georgian Telecommunication

ments projects that meet international BY NIA PATARAIA standards, in addition to those of indi- vidual companies. Everything it does is connected to the eorgian Telecommunication tourism sector in some way. The number is a company established of tourists is growing by the year in by Ericsson employees on Georgia, and the country needs to pre- June 6, 2017, for the purpose pare ahead of time through more con- of project planning, instal- structions, more hotels; something Geor- lationG and post-installation service provi- gian Telecommunication is experienced sion. The company soon earned the part- in, at present counting hotels Ibis styles nership of Turk Telekom, Turkcell and and Mercury among its clients. Avea. Its offi cial partners are EL-BI, Sie- mens, Honeywell, ABB and Rittal. ON SAFETY REGULATIONS Georgian Telecommunication’s Safety regulations are crucial, but the installed optical transmitter infrastruc- main focus is always on low price, and ture uses Ericsson’s optical web technol- this is the Georgian business mentality ogy, which is how it meets consumer that excludes work of international expectations. Despite its short existence standards. In Georgia, you might see on the Georgian market, Georgian Tel- quality but not necessarily execution at ecommunication has already gained the the highest level. Safety standards are trust of such big companies as: BP, Maqro very important and should be adhered Construction, TAV Construction, TAV to in order to respond to customer Georgia, Enka, Dorce, Worley Parsons, demands. Georgian Telecommunication and Turkish Airlines. hopes that Georgia, as a developing “Through brilliant teamwork, we offer country, will eliminate this problem step individual solutions, reliable techniques by step and all the companies on the and services to real estate owners as well Georgian market will eventually succeed as retailers,” a representative of Georgian in following international standards and Telecommunication states. “The quality be motivated to work to such standards of communication and continuity is the within a competitive environment. main feature of our fi eld. Georgian Tel- as well as to create maximum comfort addition, it has qualifi ed personnel in Georgian Telecommunication designed, ecommunication offers continuous qual- and customized services based on indi- this area who are constantly being planned and installed fi re systems using SERVICES ity of communication to its customers vidual requirements. retrained. Preparation of a team for each Siemens devices. As well as drawing up • Fire systems throughout the whole territory of Geor- It is a highly competitive fi eld, but project demands such professional an internal network infrastructure • Observation and Safety systems gia, and beyond.” Georgian Telecommunication says it growth. throughout the residential area (with • Smart house stands above other companies like it in equipment manufactured by Cisco), • IT service EASY WITH TECHNOLOGY that it offers a complete suite of services, RECOGNITION AND through Georgian Telecommunication, • Internal network Georgian Telecommunication’s motto not only for the installation of a specifi c STANDARDS the metal construction was designed • Projection is 'Easy with Technology,’ meaning it device, but also for further technical Even though Georgian Telecommunica- and installed. After that, Magti Sat and • GSM Systems works through simple technologies. In inspection. It inspects fi re systems using tion only opened last year, it has already Silknet carried out further works which • Fibre Optic the 21st century, we have the opportunity Siemens testers, which are hard to fi nd participated in numerous projects, the were supervized by Georgian Telecom- to simplify our daily lives with smart in Georgia. It also distributes products most noteworthy being the South Cau- munication. In addition, according to devices. Georgian Telecommunication’s via partner international companies. casus Pipeline Mill2 project which is the international standards of the com- mission is to simplify and improve the Georgian Telecommunication always being led by one of the largest energy pany, Georgian Telecommunication daily routine of society in the direction chooses the best producers, being focused companies in the world - BP. numbered the equipment used in the of technology. The main driving force on high quality products to ensure that The construction of a residence for construction. is to protect people's lives and property, safety results are 100% guaranteed. In BP employees started in Gardabani. Georgian Telecommunication imple- Astana, Tashkent to Increase Trade Turnover to $3 billion yoyev and Deputy PM Mamin agreed to Kazakhstan and Uzbekistan will con- BY DIMITRI DOLABERIDZE hold the fi rst Kazakhstan-Uzbekistan tinue to work together to increase trade Interregional Forum in Astana, the turnover by ensuring the supply of Regional Economic Forum of Central Uzbek gas to the south of Kazakhstan irst Deputy Prime Minister of Asian countries in Tashkent, as well as in the autumn and winter period, as Kazakhstan, Askar Mamin, the fi rst meeting of the Business Coun- well as providing services for the tran- met with Uzbek President cil and a joint business forum in Shym- sit of Kazakh gas through the territory Shavkat Mirziyoyev during his kent. of Uzbekistan. working trip to Tashkent. The The parties spoke in favor of raising In addition, the fi rst deputy prime min- sidesF discussed issues of trade and eco- the level of investment cooperation, isters of the republics of Kazakhstan and nomic cooperation between Kazakhstan implementing joint investment projects Uzbekistan decided to establish a joint and Uzbekistan. with access to the markets of third coun- Deputy Prime Minister of Uzbekistan have been reached, and interregional working group to work out the issue of Mamin noted that “Uzbekistan is Kazakh- tries, and also discussed further measures Achilbay Ramatov attending. cooperation is actively developing. mutual recognition of visa regimes of stan's largest trading partner in Central to intensify cooperation in the fi elds of Trade and economic and investment The First Deputy Prime Minister of both states for tourists from third coun- Asia,” and highlighted that the foreign construction, engineering, transport, cooperation between Kazakhstan and the Republic of Kazakhstan noted the tries crossing the Kazakh-Uzbek border trade turnover between the countries for logistics, tourism, space and military- Uzbekistan is conducted on a systematic favorable impact of easing Uzbekistan's to visit tourist sites along the Great Silk Q1 2018 had increased by 50% compared technical sphere. basis. Joint trading houses have been excise policy on the activation of bilat- Route, and on the mutual promotion of to the same period last year. By the end Within the framework of the visit, a established and are successfully operat- eral trade and spoke in favor of consid- tourism opportunities of the two coun- of the year, taking into account the sig- working meeting of the Co-chairmen ing in the main sectors of the economy, ering the possibility of further reducing tries. nifi cant potential for increasing mutual of the Joint Intergovernmental Com- such as agriculture, petrochemicals, the excise taxes on imports of a number of At the end of the working meeting, the trade, the volume of bilateral trade is mission was held, on bilateral coopera- pharmaceutical industry, and machine goods having priority export potential co-chairs of the Joint Intergovernmental expected to be raised to $3 billion. tion between Kazakhstan and Uzbeki- building. Agreements on the implemen- for Kazakhstan. Commission signed the relevant Proto- During the meeting, President Mirzi- stan, with Askar Mamin and First tation of large infrastructure projects An agreement was reached that col. GEORGIA TODAY MAY 8 - 10, 2018 BUSINESS 11 Element Construction: The Right Way to Do the Job is to Do it Safely!

BY ALEXSANDRE KORKOTADZE, HSE MANAGER, ELEMENT CONSTRUCTION

onstruction is one of the largest sec- tors, and at the same time one of the most dangerous, due to the high level of physical activity involved. In Georgia, the number of injuries thatC occur as a result of construction works is alarming. According to the offi cial data of the Geor- gian Ministry of Internal Affairs, in 2011-2017, there were 317 deaths in the workplace and 882 injuries. The risks for employees and visitors on construc- tion sites include falling, being trapped under

dropped equipment, and being injured by electric- health and labor safety is of paramount importance • Investigation and accounting of accidents. ity or by the movement of objects. In order to pro- in terms of an organization's health and labor safety For "Element Construction", the most important tect workers against the risk of falling, safety means culture. Management should encourage employees thing is the safety of our employees and those peo- An employee who should be formed on ramps, crossing paths and to bring to light health and labor safety concerns ple directly or indirectly involved in the company's throughout the whole construction site where and provide recommendations so that management activities. Consequently, under the HSE policy, speaks out about potential injuries can occur. and HSE representatives can immediately deal with based on ISO 14001 (Environmental Protection) The person responsible for labor safety must the issues raised. After the risk is determined and a and OSHAS 18001 (Health and Labor Safety) stand- health and labor safety inform both workers and visitors about the risks risk assessment is made, the management is respon- ards, health, labor safety and environmental train- on the construction site. Before acquiring access sible for the elimination or minimization of risks to ing is directed towards: concerns in the to the construction site, everybody must be given ensure a safe work environment for employees. • Preventing incidents; safety instructions regardless of their occupation The Department of HSE helps management and • Preventing harm to workers and visitors; workplace will be and work. Incidents often occur in the workplace employees in health, labor safety and environmen- • Environmental protection and minimal impact because the HSE (Health, Safety and Environment) tal improvement in the workplace, through the on it; protected from representative lacks information about health and following methods: • Full compliance with the applicable standards labor safety, which is the fi rst step toward prevent- • Provision of a communication channel between and legislation of Georgia; discriminatory action, ing incidents. With timely delivered instructions, management and staff; • Encouraging and rewarding secular employees. small risks at the workplace may be avoided. • Regular checks and specifi c labor health, labor The right way to do the job is to do it safely! including termination of An employee who speaks out about health and safety and environmental trainings; labor safety concerns in the workplace will be pro- • Organization of meetings on healthcare, labor Tbilisi, Mgaloblishvili Str. 13 work and loss of tected from discriminatory action, including ter- safety and environmental issues and recom- Tel: 032 2 309 490 mination of work and loss of wages. mendations for guidance on corrective meas- Emal: [email protected] wages Construction site management’s attitude towards ures to be taken to address these issues; www.ec.ge Export Increases by 36% in January-April 2018

Poland – (1012774). The export growth was also BY THEA MORRISON remarkable in European, US, Asian and other traditional markets: Japan 139% (73122), Czech Republic - 90%(21288 ), UK - 89% (40740), Kazakh- eorgia’s National Wine Agency (NWA) stan - 84% (1108938), The Netherlands - 83% reports that in January – April 2018, (29793), South Korea - 76% (31380), Belarus - 75% 25 million bottles of wine have been (321258), Germany - 66% (241540), Lithuania - exported to 43 countries worldwide, 51% (172020), Russia - 47% (16246021), Latvia - 36% more than in the same period 32% (526380), Ukraine – 27% (2389280), Poland Glast year. - 24% (1012774), Estonia – 19% (1858926), USA - In total, the income from wine export in January- 4% (105568) April 2018 amounted to $59.2 million, which is 43% The Georgian National Wine Agency says that, higher than this time in 2017. in total, 147 Georgian companies exported wine The top fi ve countries that imported the most from Georgia. bottles of Georgian wine in January-April this Five million bottles of Georgian brandy and 84,000 year are: Russia – (16246021), Ukraine - (2389280), bottles of chacha were exported abroad in January- China – (1802792), Kazakhstan – (1108938) and April of this year. GEORGIA TODAY 12 BUSINESS MAY 8 - 10, 2018 SDC Director General Completes 3-Day Visit to Georgia

BY KATIE RUTH DAVIES

he Director General of the Swiss Agency for Development and Coop- eration SDC, H.E. Manuel Sager, on Friday completed a three-day visit to Georgia, during which he met with Tthe Georgian Minister of Education and Science and the First Deputy Minister of Environment Pro- tection and Agriculture, as well as representatives of the international community, civil society organ- izations and the private sector. On 4 May, the Swiss delegation, headed by Ambas- sador Manuel Sager, was received by the First Deputy Minister of Environment Protection and Agriculture, Nodar Kereselidze. The parties dis- cussed the development priorities of the agriculture sector in Georgia and opportunities for continuous cooperation. “Development of agriculture is a priority for the Government of Georgia. Switzerland, with the UNDP, FAO, Mercy Corps and HEKS/EPER, sup- port Georgia in accelerating progress in this sec- tor,” Ambassador Sager said. “With the First Dep- uty Minister, we discussed issues concerning small and medium enterprises, the role of sector asso- ciations, the transfer of knowledge and technical skills to farmers, as well as the introduction of new standards and regulations. These issues are impor- tant for increasing the productivity and competi- tiveness of Georgian agriculture. Overall, I am very satisfi ed with our engagement, partnerships, and cooperation for agriculture in Georgia, and SDC “Switzerland has been supporting the develop- support to this important agenda.” Kartli and Samtskhe regions, where they looks forward to continuous progress in this regard.” ment of the vocational education system in Geor- “Modernization of Vocational Education and had the opportunity to review the progress of the “Switzerland’s support is very important for us. gia since 2012,” Sager noted. “Together with the Training (VET) is one of the most important reforms Switzerland-funded projects and interact with local Vocational education and training is a precondition UNDP, we closely collaborate with the Ministry that are underway in Georgia these days,” said authorities and stakeholders, as well as the private for the development of any agricultural fi eld; and of Education and Science to increase the quality Munkhtuya Altangerel, Deputy Head of the UNDP sector, NGOs and the local population. it is gradually gaining more importance,” Keresel- of vocational education in the country and make in Georgia. “Its progress will address some press- The Swiss Agency for Development and Coop- idze noted. it more tailored to the needs of the private sector. ing developmental issues, such as unemployment, eration SDC is the development agency of the On the same say, the Ambassador met with Min- It will increase the employment and incomes of rural poverty and local business development. With Federal Department of Foreign Affairs of Switzer- ister of Education and Science, Mikheil Chkhenkeli. youth, thus contributing to improving the attrac- assistance from the Swiss Government, the UNDP land. In 2017, the SDC, in cooperation with the The parties discussed the ongoing education reform tiveness of vocational education in general. Swit- helps introduce up-to-date VET models to create Swiss State Secretariat for Economic Affairs and in Georgia and the increased role of vocational zerland has a long established vocational educa- more opportunities for the young, as well as for Directorate of Political Affairs, launched its new education in this reform. They exchanged views tion system, which contributes to keeping the those who wish to get new skills or try new profes- Cooperation Strategy for the South Caucasus 2017- on ways to make vocational education more respon- youth unemployment rate low. We are sharing sions.’ 2020. The Strategy targets the economic develop- sive to the needs of the private sector, which will relevant practices and examples with Georgia as On 2-3 May, the Swiss delegation, together with ment and the strengthening of democratic insti- reduce youth unemployment in the country and possible inspiration for continuous progress, and representatives of the partnering UNDP, FAO and tutions, as well as human safety and security in contribute to increasing their incomes. SDC looks forward to further cooperation and Mercy Corps, visited several project sites in Kvemo the region. GEORGIA TODAY MAY 8 - 10, 2018 BUSINESS 13 EU-Supported Project Reforms Georgia’s Prosecution Services

the evolution of the system while backing BY BENJAMIN MUSIC it up with fi gures and facts. Detailing the focus points of the Chief Prosecutor’s Offi ce, the spokesperson he name is convincing: “Pro- highlighted several areas where improve- moting Prosecutorial Inde- ment is imperative. One area is the per- pendence through Monitor- sistent countrywide occurrence of domes- ing and Engagement,” in tic violence. short - PrIME. The European Besides introducing additional cam- UnionT has launched a new project to paigns to call for an end to domestic vio- reform the prosecution services in Geor- lence, the goal is to raise awareness among gia. The aim is bridge the gap to other potential perpetrators by outlining the countries as Georgia’s judicial system lags dangers and consequences. In addition behind more effi cient systems. Although to a broken family life and a mentally the usual processing time is faster than need to do. We need to look for a direc- hensive approach, as part of which IDFI to cover them subjectively is often not unhealthy environment for children to in neighboring states, the reforms build tion to curb the crime rates and the vio- and its partners will work in four main present. Formal training for journalists grow up, the victimization of women is a multiple pillar system, including factors lence. This pillar will also be included in directions: fi rst, monitoring; second, media and media representatives aims to a heavy consequence often weighing on such as media and monitoring, into an our project. We’ve been involved in the investigation; third, capacity building and explain the main pillars of legal proce- their minds for the rest of their lives. effective judicial system. process since the beginning of the reforms awareness-raising aimed at ensuring dures in Georgia and to create a media Costly psychological therapy sessions PrIME is a two-year project, running and we are very much looking forward impartiality and fairness in the Georgian environment in which cases are dealt add to the pain, as treatment is rarely from 2018-2020. It aims to enhance the to continuing our support and supervi- prosecution and investigation systems; with in the most professional manner sought. accountability of the PSG and empower sion of the reforms.” and, fourth, increasing capacity and aware- possible. Through such efforts, the The Prosecutor’s Offi ce highlighted the information exchanges between the gov- “It is our fi rst project of such a major ness on hate crimes and violence against reformers hope to remove ideological ratifi cation of the Istanbul Convention as ernment, civil society, media and the scale for us, we couldn’t have imagined women. opinions from legal articles as they harm the basis for these additional steps. The public on the ongoing major reforms in carrying out such a project a couple of Looking at the fourth point, the trust the impartiality of courts. Convention condemns violence against the system. years ago,” Giorgi Kidiashvili, Executive of the population will measure the The Offi ce of the Chief Prosecutor of women, which is rooted in the mere fact “Georgia has made signifi cant progress Director of the IDFI, said. “We are very achievements. Some of the projects Georgia, participating heavily in the of women being of the opposite gender. in advancing the sequence of reforms proud and excited to work with the sup- include focus groups, which are led by reforms, has several objectives it hopes It calls for various measures to prevent across all sectors of the prosecution ser- port of the EU. We also see that the Geor- personnel who receive training before- to achieve. In addition to the Prosecuto- violence to women, to support the victims vice,” said Giorgi Gogadze, Deputy Chief gian government strongly supports us hand to learn the methodology. The dis- rial Council, which elects the Chief Pros- and to implement an infrastructure to Prosecutor of Georgia. “In the upcoming and this is important- having the backing cussion of these focus groups will deal ecutor for a six-year term, an Advisory seek help when confronting violence as years, the reform package calls for further of the state ensures the improvement of with addressing hate crimes and violence Council will be set up and the advisor’s a woman. Besides special emergency actions to enhance the quality of institu- the dialogue between the civil sector and against women. The prosecutors will position strengthened in order to help phone numbers, additional educational tional independence and integrity, to the government.” also have the chance to visit The Neth- the prosecutor with the handling of cases training for the wider public and fi nancial empower low-level prosecutors, actively “The European Union strongly supports erlands to understand how the country as well as the necessary research required support for victims, it calls for prosecu- engaging them in the decision-making Georgia’s efforts to strengthen the rule works against such crimes. This will to decide on contentious cases. The Advi- tors specializing in the issue to increase processes, and to raise citizen trust in and of law and human rights protection in enable them to learn from other systems sory Council will also have the power to the leverage in court cases. An important awareness about the justice system of line with its international commitments, which have proven effective in dealing recommend a case promotion if they see point will be the setting up of collective Georgia.” including the Association Agreement. We with such issues. fi t. complaint schemes, which women can “We hope to see many new visions and are happy to see state institutions engaged The inclusion of the media is often An additional point of the planned use together to go against one or multiple initiatives,” he added. “Over the last 100 actively in this action implemented underrated during such reforms, some- restructuring is the implementation of perpetrators. years of our history, it has been symbolic together with civil society partners,” noted thing the organizations are trying to the 2017-2021 Action Plan, which revolves Juvenile justice is also in the spotlight and essential to create such independent Mikolaj Bekasiak, Communications Atta- improve on this time round. Journalists around the improvement of four essential of the reforms, as a new juvenile law was monitoring tools. Yet, it won’t be enough ché at the EU Delegation to Georgia. are the mouthpieces for many legal points. recently enacted by the Georgian govern- and there are many additional things we The PrIME project assumes a compre- cases; however, the necessary expertise The fi rst priority is a constant observa- ment hoping to raise perspectives of youth tion and improvement of human rights, and to prevent them from engaging in coupled with strict punishment for human criminal activities. New prosecutors have rights violations. This is followed by the already been appointed, but the Chief aim to increase the overall trust of the Prosecutor’s Offi ce hopes to engage more public in the Chief Prosecutor’s Offi ce. legal experts to create a long-lasting effect Third, the Offi ce is to channel resources on society in this area. to the promotion of legal professionals Overall, various organizations like IDFI, in hopes of attracting more personnel of will heavily support the government in high quality to work under the banner of reforming the Chief Prosecutor’s Offi ce the Ministry of Justice. Creating publicity and the prosecutorial framework of Geor- and raising the value of the profession gia. It needs to be seen to what extent the will also heavily benefi t the private legal Georgian public will experience these sector. Lastly, the Action Plan implements changes. Just days ago, the EU published additional measures to curb crime and an alarming report mentioning new indi- lower the crime rate in all parts of Geor- cations of increased corruption in the gia. legal sector in Georgia. As international These objectives and the road to achiev- eyes are watching, hope that ing them will be measured through the the level of decreases introduction of new indicators. This ena- further, continuing the trend of the past bles both public and reformers to observe 15 years. Ministers of Transport of Organization of Economic Cooperation Countries Meet in Turkmenistan

develop and implement partnership BY DIMITRI DOLABERIDZE strategies in such areas as economics and trade, transport and communica- tions, energy, tourism, social welfare and meeting of the Ministers of the environment. Transport of the member The meeting discussed aspects of the countries of the Organiza- development of the regional market of tion of Economic Coop- transport and communication services, eration (ECO) was held on freight and passenger transportation by Athe Turkmen coast of the . rail, road and sea transport, and civil The 9th meeting of the Ministers of aviation. Transport and Communication of the The need to synchronize legislation member countries of ECO: Azerbaijan, and tariffs, the gradual simplifi cation of Afghanistan, Iran, Kazakhstan, Kyr- customs, visa and other procedures, was gyzstan, Pakistan, Turkmenistan, Turkey, noted, measures designed to facilitate Tajikistan and Uzbekistan, was held in The forum saw discussion of a wide port communications, enhancing inter- focus on the program ‘ECO Vision 2025 the activities of business structures and the Avaza National Tourism Zone, reports range of issues related to the develop- national cooperation in a strategically Prospects’ (ECO Vision 2025), within to signifi cantly affect the growth of cargo the State News Agency of Turkmenistan. ment of regional and interregional trans- important sector, as well as a particular which ECO member countries intend to fl ows and volumes of foreign trade. GEORGIA TODAY 14 BUSINESS MAY 8 - 10, 2018 Guria: The New Paradise of Tourism BY BENJAMIN MUSIC

logs and travel magazines seem to have recently dis- covered Georgia as a hidden gem nestled between the Caucasian Mountains. The fiB gures are promising too; last year the celebration of the six-millionth tourist put the country into excitement as Dutch backpacker Jesper Black was voluntarily “kidnapped” by the tourism department to meet the Prime Minister in a perfectly orchestrated PR stunt. A little surprise turned into a year of fame for Jesper, and he’s still traveling the country, taking part in TV events such as the Georgian version of “Dancing with the Stars.” At the same time, tourism numbers keep on surging, putting the new predictions at over 7 million tourists this year. A massive success considering Georgia’s fateful economic and political diffi culties just a decade ago. Yet, the crowds tend to gather at just a handful of spots around the country, neglecting the picturesque landscapes of many other locations well-worth their region. Roads are at times bumpy, and spotlight of grandeur, as its accommo- ing created dolphins, grizzly bears, and his life. A friendly woman serving as attention. Adjara, Khakheti, and - it takes a while to reach the small moun- dation options currently comprise three- penguins. The park and arena were both both grandmother and tour guide pro- Mtianeti are the most frequented hot- tain towns and villages within. However, star hotels, guest houses, and fl at rentals, fi nanced by billionaire Bidzina Ivanish- vides the necessary background infor- spots besides Tbilisi. All four regions the lack of hype should not discourage with just the Kolkhida Sanitorium able vili and Cartu Fund, who donated the mation upon request. considerably improved their infrastruc- visitors. to boast anything even close to luxury. constructions to the State after comple- South of Poti, a salt-water lake and its ture to cope with the soon-to-come The long beaches along the Yet, the soft sands, gently sloping beach, tion. surroundings have been transformed seven-millionth tourist in 2018. A sou- coast offer a wealth of relaxation oppor- warm, shallow waters and beach-side Guria also offers fantastic hills and into a National Park. Cut off from the venir of the costly tourism promotion tunities and Guria’s small part of that tranquility to be found at Ureki make mountain ranges for backpackers and Black Sea, an estuary created it, making during the reign of Saakashvili, hotels rich diversity, the village of Ureki, with even a day-trip there worth your time. backcountry explorers. Though not nearly it the largest of its kind in Georgia. Away and resorts mushroomed and new roads its magnetic sands and access by train Other recent investments aim to spur as high as the glaciers on the Georgian from the coastline, Rangers take visitors were constructed to facilitate quick and from Tbilisi, should defi nitely be on a tourism fi gures in the Guria region. border to Russia, the region offers beau- into the Park via a 20-minute boat ride, smooth transportation. visitor’s ‘must-visit’ list. The tourist vil- Opened in 2016, the Black Sea Arena is tiful gorges and rivers untouched by which reminds one of the CIA Miami The Georgian National Tourism Admin- lage’s brutalist architecture is worth the biggest of its kind in the entire Cau- mass tourism. The promotion of small intro, the nature there resembling the istration (GNTA), together with other seeing, though be warned, these build- casus region. Functioning as a concert settlements and their most famous chil- Everglades (thankfully, minus the alliga- governmental institutions, now hopes ings are merely houses left unloved, not hall and visited only be the crème de la dren is a key area for the Tourism Admin- tors). Hideouts offer inspiration for a to detour some of the tourist buses to grand structures by Le Corbusier. Trave- crème of the music industry, it has so istration right now. The museums of two camping adventure, including the essen- another regions, one of them Guria. lers of fi ner tastes can motor southwards far successfully hosted artists such as writers give enough reason to venture tial bonfi re-marshmallow combination, Caught between Samegrelo and Adjara, into the neighboring Adjara region to Aerosmith, Christina Aguilera and the out into the unknown and end up in a when handled with caution and respect 5-star hotels and audience-attracting stay at any of its many luxury hotels. Scorpions. Adjacent to the arena, an farmers’ village, where the writers spent to the surrounding greenery. events are still a rarity in this western Ureki is still awaiting its time in the impressive park stretches out, showing most of their time. Guria is experiencing a true transfor- off bronze versions of the best musicians The tiny town of Kela, right across its mation. The locals are eager to benefi t of Georgia and the West. From world- main river, was the birthplace of Egnate in the same way as their surrounding renowned composers such as Beethoven Ninoshvili, whose drive for justice became regions from the tourism boom in Geor- and Mozart to big shots in Georgian evident in his works early-on, works gia. Be it a cultural trip or a plunge into classical music such as Viktor Dolizde, which dealt with the oppressions the nature, Guria offers an authentic land- who created the fi rst Georgian comic Russian Tsar exercised on the Georgian scape for all types of traveler. opera called “Keto and Kote,” music afi - people. Writing about pain and looking The government seems determined to cionados will delight in exploring. Elton for new solutions to catapult the country promote the region, and support is com- John and Michael Jackson are defi nitely out of its misery, he found himself in ing from all sides. From the top national the highlights, but Georgian star Revaz Tbilisi creating the Marxist party “Mes- politicians to the municipality leaders Lagidze is just as worthy of your ears, ame Dasi,” which later gave shelter to and mayors; all are pulling on the same creator of Tbilisi’s hymn “Tbiliso.” Well- young Stalin’s ideological convictions. string, and campaigns reinforce the many spaced, paved areas surrounded by Another museum is located in the town endeavors undertaken by the authorities. wooden benches exhibit the artists in of Chokhatauri where Nodar Dumbadze Soon, Guria will be offering the same the form of statues, while speakers blast spent many summers enjoying the soli- luxurious enjoyment and adventure as out their masterpieces. Follow the path tude and the view over the Guria valley. its neighboring region Adjara: during through the park to see the numerous Little cypress trees dot the valley, remind- the nights new hotels will give shelter marvelous animal woodcarvings on ing one of Tuscany. Photos, books and and during days, the mountains will give either side. It seems the entire animal paintings cover the walls of his museum explorers the opportunity to get lost in kingdom is showcased, with artists hav- house, giving a fi rst-hand glimpse into a world of green solitude. Georgia Takes 3rd Place in Wings for Life World Run 2018 Wings for Life World Run 2018 was BY THEA MORRISON also attended by the Minister of Culture and Sports Mikheil Giorgadze, Olympic champions Lasha Talakhadze and Giorgi n May 6, Georgia for the Asanidze, World Champion in Paralym- fi fth time joined the larg- pic Fencing Irma Khetsuriani, and many est charity event in the others. world, The Wings for Life This year’s Male Global Champion 2018 World Run, claiming third is Aron Anderson from the United States, place.O who ran 89.85 kilometers. The winners of World Run 2018 Geor- The 2018 Female Global Champion is gia were: Alexander Cherbukin (74.72 Vera Nunes of Portugal who ran 53.78km km) among men and Nina Zarina (47.45 in Germany. km) among women. Irma Zveriashvili The world marathon 2018 was held in and Merab Dukashvili were the winners 200 locations in 66 countries. In total, among the wheelchair runners. 100,000 participants were able to cover The event took place in in Kakheti, 934,484 km. with a trail that edged the Lopota sec- Georgian media reported that the event tion of the Caucasus Range. participants in Georgia littered the mar- Aside from an 18+ age limit, World Run athon area with plastic bottles and cups. has no restrictions. A total of 7,000 peo- However, the Wings for Life World Run ple registered to take part in the race in Organizer and the President of the Georgia, including professional athletes, National Federation of Sport 'Sport for amateurs, persons with disabilities and Everyone,' Maya Azarashvili stated that foreigners living in or visiting the coun- special clean-up teams were located in try. the area, and cleaned the whole territory Photo source: redbullcontentpool.com 2017 winners from Poland, Germany, after the race was over. Turkey and Georgia participated in the Wings for Life World Run Georgia is and Sports and organized by the National Last year, in Georgia, 5,000 people reg- national, Shota Samushia, 94, was the run in Kakheti. supported by the Ministry of Culture Federation of Sport 'Sport for Everyone.' istered for the global run, and Georgian oldest participant in the world. GEORGIA TODAY MAY 8 - 10, 2018 POLITICS 15 Putin’s Monumental Task: Derailing the Western Expansion

been a part of the settlement. Nowadays, up pressure on Russia by providing OP-ED BY EMIL AVDALIANI Putin can only envy those times as Europe military cooperation and general diplo- marches towards the East. Sure, there matic and economic support to Ukraine are huge problems with the EU enlarge- and Georgia (and, to a lesser extent, n May 7, Putin was sworn ment and Ukraine, Georgia and Moldova Moldova). The battle for the former in as Russia’s President, have seen only a part of the benefi ts they Soviet states will play an important role which will his fourth pres- were expecting. Nevertheless, it can be in Russian politics over the next few idential term, extending argued that Europe will not be easily years. his rule beyond the psy- defeated in its plans on expansion. Europe Beyond Ukraine, Putin will also face chologicalO mark of 18 years – the longest and its powerhouse, Germany, needs three major foreign policy questions in since the Stalin epoch. new markets, and Ukraine represents a his new term: 1) fi nalizing a settlement Putin enters his six-year term with large unchartered pool. in Syria; 2) reaching a consensus with numerous headaches over internal and Never in history has Russia’s hold on Japan over the Kuril Islands. Still, as foreign policy issues. Overall, Putin’s its former territories and in eastern outlined above, these questions are likely fourth term can be expected to be char- Europe been so fundamentally chal- to be overshadowed by Russia’s funda- acterized by the challenge of an invigor- lenged. Local elites as well as economies mental problem positioned in and around ated and united western front. Russian are now increasingly connected to Europe Ukraine. geopolitical infl uence in Ukraine, Geor- or third countries such as China, Turkey, To these large foreign problems will gia, and Moldova has diminished over and Azerbaijan. be added internal challenges. Among the past decade. Western encroachment This creates the fundamental tension them, the economy is a top priority. Putin on what was always considered a Rus- around Ukraine and Russia’s future abil- does not face strong opposition and this sian sphere of infl uence has reached new ity to project its power. It was largely is unlikely to happen unless a radical levels, unimaginable at the time of the because of the loss of the Ukrainian worsening of the economic situation Vladimir Putin speaks with his hand on the Constitution during his inauguration Soviet break-up in the early 1990s. Rus- ceremony. Image source: vosizneias.com market that the nascent Eurasian Eco- takes place across the country. And this sia’s entire western frontier (except for nomic Union for the moment lacks is important, as the Russian economy, Belarus) is now under Western infl uence. important economically for Moscow. eastern Europe. momentum. Among all the problematic as projected, will see very little, if any, To start, Putin’s primary focus will be Without Ukraine, Russia is far too To Putin’s credit, the task he faces is issues accumulated between Moscow improvement. As a confi rmation, recent Ukraine. The country is an underbelly detached from the core of the European indeed monumental. His predecessors and the western powers, Ukraine will statistics showed that the Russian defense to the Russian domination over Eurasia. continent. Nowadays, Russia is rather from the Soviet as well as Russia’s impe- be of primary focus. Russia will have to budget was cut by almost 20% for the One should not forget the importance more “in Asia” than Europe, and this rial times fought with various European make a decision. Dragging-on with the fi rst time over the last two decades. Con- of this country to Moscow. In the Rus- bothers the Russian political elites pri- monarchs, but they never faced a unifi ed issue will not help as the EU will work sidering how prioritized this section of sian mindset, Ukraine is part of the marily not because of the fear of becom- Europe in the long run. In fact, what further to solidify its positions in the fi nancing was for Russia, and for Putin Russian world, an integral part of the ing Asia-oriented, but because Moscow Russia faced was a fundamentally divided former Soviet space. personally, the cut signals signifi cant Slavic world and what’s more, it is might lose its foundational infl uence in Europe where Russia could always have In addition, the US, too, is ratcheting economic problems in the country.

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