Hazelnuts and Honey Highlight Georgia's Export Potential

SOLAR PANELS TO BE PRODUCED GEORGIAN BUSINESSES A BILLION EUROS FOR AT KUTAISI FREE ZONE EMBRACE COACHING CULTURE GEORGIA

Investor.A Magazine Of The American Chamber Of Commerce In Georgia geISSUE 68 APRIL-MAY 2019

Hazelnuts and Honey Highlight Georgia’s Export Potential

APRIL-MAY 2019 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. The information in this issue was taken from agenda.ge, a government supported website, and other sources.

8 Georgia Pushes for Close Relations with Japan Georgian Prime Minister Mamuka Bakhtadze led a delegation to Japan in March. The prime minister noted that it is possible to increase exports to Japan and increase foreign direct investments from Japanese businesses. 16 9 Solar Panels to Be Produced at Kutaisi Free Zone 10 Georgia Goes All in On Education – Way to Freedom Initiative

11 Breathe a sigh of relief: Georgian government acts to improve air quality

16 A Billion Euros for Georgia: An interview with investor Oleg Ossinovski

19 Georgian Hazelnuts and Honey Highlight Export Potential Georgian agriculture exports are steadily increasing: in 2018 the country exported $959.2 million worth of agricultural products, up 23.2 percent compared to 19 2017. Exports to the EU are still dwarfed by the demand from other countries, but two products — hazelnuts and honey — underscore the potential for growth.

23 Explainer: Anaklia Deep-Sea Port

25 Georgia Ski Resorts Prepare to Host Freestyle Ski and Snowboard World Championships Georgian ski resorts are steadily growing in popularity. The resorts are hosting more skiers and snowboarders but remain under developed. The government and international donors are planning major infrastructure projects, especially new roads, to make the resorts more accessible in time for the 2023 Freestyle Ski and 28 Snowboard World Championships. 28 USAID Programs Encourage Private Businesses to Invest in Local Communities

31 Georgian Businesses Embrace Coaching Culture

32 NEWS ...... 32

4 | Investor.ge APRIL-MAY 2019

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APRIL-MAYAPRIL-MAY 20120199 Investor.geInvestor.ge | 5 AZERBAIJAN LARGEST SOURCE factory. The factory produces parts for INVESTMENT OF FDIS IN GEORGIA IN 2018 civil aircraft, including doors and control Azerbaijan (19.5%), the United panels. ATC will produce parts for Boe- Kingdom (16.5%) and the Netherlands ing and other large aircraft companies NEWS (13.6%) topped the list of sources of including Airbus and Bombardier. foreign direct investments (FDIs) in ATC is a joint venture between INVESTOR.GE Georgia in 2018. The total amount of Israeli Elbit Cyclone and the Georgian PROVIDES A FDIs in Georgia was $1.23 billion in state-owned Partnership Fund. It opened 2018, a decrease from 2017, GeoStat in 2018 and has already received ISO BRIEF UPDATE reported in early March. FHUWL¿FDWLRQ ON INVESTMENTS The three sectors receiving the high- AND CHANGES HVWYROXPHVRI)'VZHUH¿QDQFH GEORGIA INCREASES BLUEBERRY IN GOVERNMENT million), transportation ($209.9 million) PLANTATIONS POLICY THAT COULD and energy ($157.2 million), agenda.ge The agriculture cooperative IMPACT THE BUSINESS reported. Agrotema has received state funding ENVIRONMENT. THE worth 100,000 lari to create a six hectare INFORMATION IN THIS STUDENTS CREATE FIRST CANNED blueberry plantation in western Georgia, ISSUE WAS TAKEN GEORGIAN WINE agenda.ge reported on March 19. Two Georgian students have cre- The funding comes from the state-run FROM AGENDA.GE, DWHGDFDQQHGZLQHSURGXFW±D¿UVWIRU Plant the Future program, which aims to A GOVERNMENT- the country, commersant.ge reported in boost agriculture in rural areas. The plan- SUPPORTED WEBSITE, February. tation is planned for Samegrelo-Zemo AND OTHER SOURCES. Inventor Saba Sakhvadze said he and Svaneti. Reportedly 50 people will be his partner George Machavariani were employed on site. Georgian blueberries ELENE TABAGARI inspired by the words of Albert Einstein: are currently exported to the Middle East “Everything should be as simple as it and Europe. can be.” The two students decided to create canned wine – called Mivino – $32 MILLION TO PREVENT when they had trouble opening a bottle NATURAL DISASTERS IN GEORGIA of wine. Sakhvadze told commersant.ge Georgia is launching a $32 million, he wants their wine to be as popular and seven-year project to prevent natural accessible in Georgia as beer. He also GLVDVWHUV7KHSURMHFW¶V¿UVWVWHSLVWR says they plan to export Mivino world- design special geological maps which wide. Mivino’s Rkatsiteli and Saperavi will be used to determine the best places wines are currently available in a limited to install early detection systems. number of shops. Early warning systems have already The students plan to eventually offer been built in the River Vere in the capital canned sparkling wine, semi-sweet wine of Tbilisi and in the Devdoraki Gorge in and rose wine. Mivino will soon be avail- northern Georgia. able at local supermarkets, Sakhvadze The Green Climate Fund is investing added. $27 million and the Swiss government is contributing $5 million to the project. GEORGIAN FACTORY PRODUCES Deputy Minister of Environment Protec- PARTS FOR BOEING AIRCRAFT tion and Agriculture Nino Tandilashvili %RHLQJKDVSXUFKDVHGLWV¿UVWRUGHU QRWHGWKLVLVWKH¿UVWWLPHVXFKDODUJH of aircraft parts from Aerostructure project has been launched to target envi- Technologies Cyclone, a Tbilisi-based ronmental threats in the country.

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APRIL-MAY 2019 Investor.ge | 7 OPIC INVESTS $50 MILLION IN cluding Adjara and Samtskhe-Javakheti. era Shovi resort in upper Racha. POTI PORT In Batumi, Adjara, for instance, the The Chairman of Symmetry Giorgi The U.S. Overseas Private Invest- FRVWIRUURRPVLQIRXUDQG¿YHVWDUKR- Jakhutashvili told bm.ge the company ment Corporation (OPIC) has loaned tels has increased up to 34 percent, while will invest $60 million in the project. Pace Group $50 million to develop a family-style hotel costs have increased Jakhutashvili said the resort will have multi-functional marine terminal at Poti by 0.3 percent, PMCG found. the capacity to host 56,000 visitors a year. Port. Total investment in the project is Hotels also reported higher prices in reportedly $120 million; the terminal is the region of Racha. Hotels in the center GEORGIA TO INVEST 25 PERCENT scheduled to be completed in 2019. of capital Tbilisi cost 4.2 percent less OF BUDGET IN EDUCATION than last year, according to the report. The Georgian government will spend GEORGIAN HOTEL FEES INCREASE 25 percent of the budget on education by IN 2018 $60 MILLION INVESTMENT 2022. PM Mamuka Bakhtadze noted the The index of Georgian hotel prices PLANNED FOR GEORGIA’S SHOVI reforms will also encourage more private has risen 2.6 percent over the past year, RESORT investment in the education sector. The according to PMCG. The cost of a hotel A realty company called Symmetry plan includes higher teacher salaries and room has increased in several regions, in- has begun work to renovate the Soviet- more modern methodology. Georgia Pushes for Close Relations with Japan GEORGIAN PRIME MINISTER MAMUKA BAKHTADZE LED A DELEGATION TO JAPAN IN MARCH. THE PRIME MINISTER NOTED THAT IT IS POSSIBLE TO INCREASE EXPORTS TO JAPAN AND INCREASE FOREIGN DIRECT INVESTMENTS FROM JAPANESE eorgia and Japan signed a pon Export and Investments Corporation memorandum of understanding BUSINESSES. (NEXI). Gto insure exports and invest- NEXI is a Japanese government ments between the two countries during corporation that specializes in export PM Mamuka Baktadze’s trip to Japan. credits. The corporation supports the The agreement was signed between export of Japanese goods and services Economy Minister Giorgi Kobulia and and the expansion of Japanese businesses Masafumi Nakada, the president of Nip- overseas by providing insurance products

8 | Investor.ge APRIL-MAY 2019 such as export credits, investments and East, we are a small but remarkably including Deputy Prime Minister and loan insurance. attractive economy for international 0LQLVWHURI)LQDQFH7DUǀ$VǀLQ7RN\R investments. Our market is fully open, 7KHRI¿FLDOVGLVFXVVHGGHHSHQLQJ UNTAPPED POTENTIAL FOR our economy is liberal and our location bilateral relations, including prospects INVESTMENT is strategic,” he said. for more trade and investment between The agreement focuses on several the two countries. areas, according to gov.ge, including BILATERAL INVESTMENT TREATY The Georgian PM also met with production and manufacturing, tourism, Bakhtadze also noted that Tbilisi and Yasushi Akahoshi, President of Japan energy, transport and logistics, telecom- Tokyo have completed negotiations on External Trade Organization (JETRO). munications, trade and export facilita- the Bilateral Investment Treaty (BIT), Akahoshi noted JETRO is already coop- tion, public property management and which is a pre-requisite for greater erating with Georgian on several issues. construction. Bakhtadze said the agree- investments to be made from Japan in He praised the government’s plan ment should bolster investments and Georgia. to increase spending on education, not- trade between the two countries. “Japan for us sets a very good ex- ing that Japan has prioritized human “We have all the opportunities to ample of how a nation with a strong resources. “Japan is a country without increase our exports to Japan 10 times will can overcome any hurdles and suc- many resources. RYHUWKHQH[W¿YH\HDUV´KHVDLG ceed. Again, with your assistance and “That is why we focus on human Bakhtadze also opened the Japan- partnership we are reminded every day resources, and that is the number one Georgia Business Forum. of the brighter future that lies ahead of secret of Japan’s development,” he said. He encouraged Japanese business to us,” he said. “We discussed mutual cooperation at invest in Georgia in his opening remarks. various levels: high level, elementary “We have a very ambitious goal MEETING WITH JAPANESE level, and vocational training, which to make Georgia a multi-dimensional OFFICIALS is very important. Overall, I am more regional hub…Located at the crossroads Bakhtadze also held meetings with FRQ¿GHQWDERXWRXUPXWXDOFRRSHUDWLRQ between Europe, Asia and the Middle VHYHUDOKLJKUDQNLQJ-DSDQHVHRI¿FLDOV in the future,” Akakoshi said. Solar Panels to Be Produced at Kutaisi Free Zone

A GERMAN INVESTOR be employed at the factory; eventually Georgia because “it is very convenient there will be as many as 350 employees. in terms of logistics,” since there is sea IS PLANNING TO AE Solar Georgia will export the access and the company can use the trade START PRODUCING panels to the US, the Middle East, Europe agreement with the US and the EU to SOLAR PANELS IN and other regions, he said. export their goods under more favorable GEORGIA IN APRIL 7KH¿UVWSDQHOVZLOOEHH[SRUWHGWR terms as more than 40 percent of the Thailand, Mexico and the US, Fattak- production will take place in Georgia. hov said. He added that the production costs “We are planning on opening a train- are about half what the company was LIKA JORJOLIANI ing facility in the middle of the year, paying to produce its goods in China. where our distributors and specialists AE Solar was established in Germany erman AE Solar Georgia plans will be trained how to install and operate in 2003. to start production of solar solar stations. We have a lot of plans and, t became interested in opening a Gpanels in April, the company’s over the next two years, we plan to invest production facility in Georgia in 2016, general director, Durbek Fattakhov, told around $100 million in the production of after meeting with the Georgian economy Investor.ge. solar cells for solar batteries,” he said. minister and learning about the “Made in In the initial phase 200 people will Fattakhov said the company chose Georgia” program.

APRIL-MAY 2019 Investor.ge | 9 ing methodologies to schools across the country. As for salaries, the government hopes to triple teachers’ income by 2023 to about 1,500 lari, with teachers with KLJKHUTXDOL¿FDWLRQVHQMR\LQJVDODULHV upwards of 2,000 lari. In 2018-2019 alone, 10,000 teachers will be given increased salaries. The importance of vocational education has also been a cornerstone of promised education reform. Georgia Goes All “Vocational education and life-long learning is one of the priority areas of our reform. We are introducing a sys- in On Education – tem which will help individuals of any age to adapt to a fast-changing world,” Bakhtadze noted in September. Way to Freedom Initiative New teaching methods in Georgian schools are also on the agenda. A new, he Georgian government has novation.” modern curricula and approaches to promised to invest one-fourth The prime minister justified the teaching will be introduced n 50 public Tof the state budget, or about six expenditure by arguing that it is only a schools by the end of the 2018-2019 percent of the country’s GDP, into “un- very-well educated generation of Geor- school year, with another 2,000 schools precedented support for education” by gians which will be able to deal with the across the country following suit by 2022. The announcement was made in a country’s pressing issues. 2023. special presentation in March. “We face various challenges: the The country’s Unified National “Through investing one-fourth of occupied territories, poverty, infrastruc- Examination has also received atten- the budget in education, Georgia will tural problems, thousands of internally tion, and will be cut back to just three become one of the most educated na- displaced people and a need for invest- compulsory subjects instead of four. The tions in the world,” Bakhtadze said at ments. We will be able to respond to the exam will feature Georgian language and the presentation. challenges only with an educated genera- literature, a foreign language and a third The launch of the initiative, titled tion,” Bakhtadze said in February 2019. subject determined by a student’s desired Education – Way to Freedom, is the In the run up to the launch of the ¿HOGRIVWXG\ IXO¿OOPHQWRIRQHRI%DNKWDG]H¶VPDLQ SURJUDP%DNKWDG]HXQYHLOHGD¿YH\HDU One of the most important aspects of promises when he was appointed prime plan for education reform in September education reform, Bakhtadze has noted minister of Georgia back in June 2018. of last year while speaking at the Acad- on a number of occasions, is that young Tweeting about the initiative at the emy of Ikalto – an ecclesiastical academy people will no longer have to go abroad time, Bakhtadze said: “GovernmentGeo established in between the 11th and 13th to get a good education. by 2022 will allocate up to 6% of GDP centuries in the eastern Georgian region “No country or economy in the 21st to edu reform. of Kakheti. century will be successful without build- “Human Capital development its the His plan proposed to revamp the ing on the creation of human capital.... principal building block of sustainable education system of the country at all our objective for educational reform is economy and progress-minded nation. levels, to address infrastructural issues, to strengthen human capital in Georgia, This sweeping reform will boost Econ UDLVHWHDFKHUV¶VDODULHV¿[WKHFRXQWU\¶V to create systems which will place Geor- growth and transform Georgia into a national exam system, raise teacher gia among the developed economies,” regional leader for education and in- TXDOL¿FDWLRQVDQGLQWURGXFHQHZWHDFK- Bakhtadze stated.

10 | Investor.ge APRIL-MAY 2019 Breathe a Sigh of Relief: Georgian government acts to improve air quality

ack in 2016, the World Health ducted by the National Environmental THE MAIN ISSUE Organization (WHO) released Agency earlier this year show that most The sector needing the most immedi- Bits annual report on health sta- pollutants in the atmosphere in Georgian ate attention in Georgia is transport, and tistics for its 194 member states, which cities are largely within normal levels, the government has taken notice. UDQNHG*HRUJLDIRUWKH¿UVWWLPHDVWKH with several exceptions warranting The form of pollutant most respon- country with the deadliest air pollution. concern. sible for pollution deaths is particulate Though this data was later proved wrong Though more recent data of Geor- matter (PM), which is commonly re- – WHO researchers had used outdated gia’s mortality rate due to air pollution is leased by fuel combustion in vehicles. numbers – it certainly moved Georgian lacking, the 2018 WHO health statistics Since cities are both high in population policy makers to action. FRQ¿UP*HRUJLD¶VPRUWDOLW\UDWHGXHWR DQGWUDI¿FGHQVLW\WKH\DUHHVSHFLDOO\ Since then, Georgian policy mak- air pollution is is still higher than that vulnerable to the health consequences ers have introduced a number of green of all the EU member states, and if the of PM. policies to reduce the country’s criteria government wants its EU membership In Georgia the majority urban popu- pollutant levels, and things appear to be bid to be taken seriously, still further lation combined with underdeveloped moving in the right direction. Tests con- action is needed. WUDI¿FUHJXODWLRQVDQGSXEOLFWUDQVSRUW

APRIL-MAY 2019 Investor.ge | 11 has driven up PM emissions, and with, The 2016 UN environmental per- THE GOOD NEWS it the number of pollution deaths. formance report of Georgia shows that While transport sector emissions are Back in 2009, the National Report RIWKHYHKLFOHÀHHWLVROGHUWKDQ undoubtedly a problem, Georgia’s low of the State Environment cited motor years old. DLUTXDOLW\UHÀHFWVPRUHRQWKHFRXQWU\¶V transport as one of the leading causes of As in most of the developing world, recent economic boom and growing ambient pollution in Georgia, account- diesel cars are preferred in Georgia middle class than on the government’s ing for a staggering 90% of emissions because they are more fuel efficient, delayed response to the crisis. in urban environments. delivering 25 to 30 percent better fuel Since the 1990s there has been a While the transport sector is a huge economy than their gasoline counter- dramatic increase in household income, contributor to pollution worldwide, in parts. Though this means diesel cars which means families are purchasing Georgian cities it is disproportionately are superior in terms of greenhouse gas more domestic appliances and private ve- responsible. For comparison, the trans- emissions, all but the most modern diesel hicles, consuming more energy, and thus portation sector accounted for 30% of engines release higher levels of PM. producing more waste and emissions. emissions in NYC in 2016. Meanwhile low quality fuels on the Economic expansion combined with Though there were early indications Georgian market damage catalytic con- a relaxed environmental policy has led that reforms were needed in the transport verters, the control device that reduces to a number of environmental issues in sector, results have been lagging. The the toxicity of gases and pollutants. Be- Georgia, but this trend is not anoma- 2016 UN Environmental Perfor- lous in the developing world, mance Review (EPR) of Georgia where economic development states emissions of Total Suspended In Tbilisi and other large cities, is frequently observed alongside Particulate Matter (TSP) has either the combination of poor traffic decreased air quality. While the decreased or remained stagnant in Georgian government was not in all sectors but the transport sector, management, underdeveloped road a position to invest in air pollution which increased by 208% from 2008 infrastructure, and private vehicle control during the country’s eco- to 2013. nomic ascent, it is now following In 2009 the National Report usage has led to frequent traffic the path of other developing pow- of the State Environment reported jams resulting in increased vehicle erhouses, such as China, towards that private vehicles were preferred the implementation of stricter in Georgia as a consequence of the emissions. environmental control. country’s underdeveloped public Georgia’s reasons for invest- transport system. Despite recent ing in air pollution control are efforts to promote public transport, the cause replacement is pricey (on average many. The rate of mortality and health problem persists. $1,000 USD), owners will simply have related issues by air pollution is high in The UN report shows that in a period them removed, resulting in higher emis- Georgia, and the threat it poses to worker of just 10 years, the number of wheeled sions from the vehicle. productivity, capital development, and vehicles on the road in Georgia increased The importation of second hand ve- tourism is not insignificant. In 2015, three times – from 319,461 in 2004 to hicles combined with Georgia’s relaxed WHO and the Organization for Eco- 1,021,261 in 2014. transport regulations has had disastrous nomic Co-operation and Development In Tbilisi and other large cities, the consequences for the country’s air qual- (OECD) estimated premature death and FRPELQDWLRQRISRRUWUDI¿FPDQDJHPHQW ity because vehicles were not tested for disability from air pollution cost Europe underdeveloped road infrastructure, and safety and emissions most cars in Geor- 1.6 trillion USD in economic losses. private vehicle usage has led to frequent gia did not meet US and European stan- Apart from this, Georgia has political WUDI¿FMDPVUHVXOWLQJLQLQFUHDVHGYHKLFOH dards. Until the new mandatory inspec- incentive to invest in pollution control. emissions. tions are completed, cars with elevated EU membership is on the table for Geor- To make matters worse, the majority emission levels and damaged or removed gia if the country meets the key criteria of vehicles on the road in Georgia are old, catalytic converters will continue to be for accession outlined in the 2015 EU diesel engine cars. on the road. Association Agreement, which calls

12 | Investor.ge APRIL-MAY 2019 Restructuring and Second Chance Nodia, Urumashvili & Partners

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>ashaEŽĚŝa͕ OĸĐe Ϯϴ͕&ůŽŽr 4͕loĐŬ 4͕ϳϭsazha-WshĂǀĞla ǀĞ͘ Whone: +995 ϯϮ Ϯ ϮϬϳ ϰϬϳ Managing WĂƌƚner dďŝůŝƐŝ͕ Ϭϭϴϲ͕ Georgia ŝŶĨŽΛŶƉůĂǁ͘ŐĞ on the Georgian government to reduce health of our kids.” paid parking would be introduced in emissions through improved vehicle Though this proposal is still on the 7ELOLVLWRUHJXODWHWUDI¿FÀRZ standards and fuel quality. table, other measures have already been In a statement he stressed the under- In response to these demands Tbilisi taken to encourage the use of public development of the city’s transport sector City Hall issued the Environmental transport and reduce the amount of relative to European standards. Strategy 2015-2020 to oversee the de- vehicle emissions in the nation’s overly “Zonal parking was established in velopment of the capital into a modern, congested capital. all developed European and overloaded eco-friendly city by EU standards. As With a grant from the European Bank FLWLHVORQJDJRDQGLVRQHRIWKHHI¿FLHQW part of the strategy, City Hall is planning for Reconstruction and Development measures to put the transport system in to regulate the transport sector order.” more strictly in order to improve Tbilisi City Hall issued the The Tbilisi Municipality air quality in the city. will begin the new experiment In a 2018 public statement, Environmental Strategy 2015-2020 to on Kote Apkhazi Street, and Mayor Kakha Kaladze acknowl- oversee the development of the capital will gradually introduce zonal edged the transport sector issues parking in other busy areas of RXWOLQHGLQWKH81UHSRUWVSHFL¿- into a modern, eco-friendly city by EU the city. cally the high number of private standards Batumi and Kutaisi have vehicles in the city, the importa- also introduced their own re- tion of foreign vehicles and the spective environmental plans to DJHRIWKHYHKLFOHÀHHW6RPHRIWKH (EBRD), 100 new buses were added FRPEDWLQFUHDVHGWUDI¿FFRQJHVWLRQDQG measures Kaladze proposed were drastic: WRWKHFLW\¶VÀHHWLQDQGDQRWKHU emissions in the city. “Ninety percent of [private cars] are 700 more will be added during the next In Batumi key measures include re- WRRRXWGDWHG«7KH¿UVWWKLQJWREHGRQH IRXU\HDUV)UHQFKSXEOLFWUDQVSRUW¿UP organization of on-street parking, bus alongside technical inspection is to halt SYSTRA is also expected to complete route optimization, mini-bus replace- the import of old cars. This might trigger the restructuring of the city’s bus routes ment, and the development of spaces for some dissatisfaction, but this is a step that by July 2019. pedestrians and cyclists. has to be taken. The matter concerns the Earlier in 2019, Kaladze announced Meanwhile the US has supported the

14 | Investor.ge APRIL-MAY 2019 ADVERTISEMENT

development of a Clean Energy Program in Kutaisi, where the transport sector is particularly underdeveloped. One of the immediate initiatives of the program is the rehabilitation of roads, which are almost entirely in disrepair. In 2018, the Road Department announced the construction of a new bypass road LQ.XWDLVL:KHQLWLV¿QLVKHGWUDI¿FZLOOEHGLUHFWHGRXWVLGH the congested city, and to the highway. In response to the environmental demands of the AA, the Parliament of Georgia has introduced a number of legislative policies in support of clean technology. These include the abolishment of import VAT for electric motorcycles, mopeds and electric cars, the prohibition of low quality petrol and diesel in Georgia, and the introduction of mandatory vehicle inspections. Already these changes have proven themselves effective. In 2018 the Environment Protection Supervision Department collected 240 fuel samples without prior notice, and found that all samples met the requirements of the 2015 decree. Meanwhile Georgia’s nationwide step-by-step vehicle inspections have been progressing according to plan. Already a total of 21,276 vehicles have been inspected as of 19 January 2019, and all other private vehicles over 8 model years will be inspected by December 2019. So far these inspections have been successful in getting vehicles on the road up to European standards. Over 97% of vehicles with violations were repaired in order to pass the second round of inspections.

WHAT’S NEXT Fortunately for Georgia, vehicle PM emission levels are among the easiest to control. Across the developed world there is a downward trend in vehicle PM emissions due to the modernization of vehicle technologies and transportation systems. The European Envi- ronmental Agency reports emissions of PM decreased by 28% in Europe in just eight years, and if Georgia adopts similar PHDVXUHVDLUTXDOLW\ZLOOVLJQL¿FDQWO\LPSURYH Though the Georgian government has made steps in the right direction, the implementation of green policies is only half the battle. Scattered parking meters and a few isolated bicycle and bus lanes will not be enough to encourage urban vehicle owners to leave their cars parked at home. The UN report concludes that in order for public transport to become attractive to citizens, the government should explore other forms of electric public transport, such as trolleybuses and trams, introduce road pricing in congested areas, and – above all – inform the population of the health effects of road transportation pollution.

APRIL-MAY 2019 Investor.ge | 15 cal course, is heading towards European integration. Here I will emphasize the efforts of Minister of Economy and A Billion Euros Sustainable Development of Georgia Giorgi Kobulia, [who has put forward] many liberal ideas directed towards an open economy.” That policy is important for investors, for Georgia: he noted. “If the economy is not open, the An interview with investor perspectives for development are few. Georgia’s economy is not very big, so it should be open and as liberal as possible Oleg Ossinovski – such as that of Singapore or Estonia. INVESTOR.GE However, it should be noted that doing business in Georgia in general is not SPOKE WITH OLEG GLI¿FXOW7KLVFRXQWU\LVDWWUDFWLYHIRU OSSINOVSKI, THE investors, including myself,” he said. HEAD AND FOUNDER OF AS SKINEST GROUP, A DIVERSE PORTFOLIO Ossinovski believes that the real A MAJOR INVESTOR potential for construction in Tbilisi is in OF TBILISI HILLS GOLF the suburbs, not the city center. & RESIDENCES, ABOUT From hydropower plants to golf courses and residential housing com- HIS INVESTMENTS, THE plexes, Ossinovski has been actively BUSINESS CLIMATE investing in the country for a decade. IN GEORGIA AND Originally from Estonia, he was HIS PLANS TO drawn to Georgia by its open economy. His company, AS Skinest Group, is DEVELOP GOLF IN THE involved in the railway sector and owns COUNTRY. a hydropower plant. Ossinovski underscored the poten- leg Ossinovski plans to mo- ments in Georgia are divided into three tial for small hydropower plants in the bilize a billion euros over areas: hydropower, the railway sector country. Othe next decade for his latest and business development,” he told “In my opinion, it is a mistake that project – a professional golf course and Investor.ge. the development of low-volume hydro- residential development in Tbilisi. “My company, AS Skinest Group, power plants has been suspended. Large That might seem like a lot of money operates in the railway sector in Georgia. hydropower plants carry with them many to invest in a project concerning a sport We have also built a hydropower plant in problems and risks, so it is important to that many Georgians have never heard Georgia. However, I constantly diversify develop many small hydropower plants. of. But Ossinovski is a man who likes my portfolio, including in Georgia. I This does less damage to the environ- to take risks. think this is important for business and ment and is generally less risky,” he said, “For more than 20 years, I have had not only – this is also positive for Geor- DGGLQJWKDWLWZRXOGEHQH¿W*HRUJLDLIWKH my own businesses. In general, I have gia’s economic development,” he said. government were to make an “additional made investments in 15 countries, one Ossinovski added that “the economic effort” to develop small hydropower of which is Georgia. Overall, my invest- course of Georgia, as well as the politi- plants.

16 | Investor.ge APRIL-MAY 2019 APRIL-MAYAPRIL-MAY 20201919 Investor.geInvestor.ge | 1717 “Electricity is not cheap in Georgia a and a spa. closely associated with luxury tourism, today, and a large portion is imported “This is a small version of a town, he noted. from Russia. It is important for Georgia RXWRIWKHUHDOWRZQZKHUH\RXFDQ¿QG “Golf-tourism promotes so-called to become energy independent.” all the necessary things you need for a luxurious tourism development, as it will “Concerning the railway, many coun- comfortable life and to enjoy your com- attract a new tourist contingent – a tourist tries have gone through this process and munity”, Ossinovski said. which spends more money in the country. they have all come to the same conclu- First, however, Tbilisi needs to learn So the country will gain an additional sion. The infrastructure should remain how to golf. bonus from the golf mound,” he said. in state ownership, but a state company “Tbilisi Hills Golf & Residences has should not operate on the shipping mar- many plans to popularize golf. The prior- FUTURE INVESTMENTS ket because it hinders the competitive- ity is on learning,” he said. Ossinovski says he is always look- ness of the market. The state company “Georgia will go the way of many ing for new areas to invest in, and the will always defeat rivals, as it is not countries in the world. Golf is not popu- Georgian government’s open economy FRQFHUQHGZLWKLQFRPHDQGHI¿FLHQF\ lar in Georgia because this sport has no policy makes the country an attractive Many countries have gone down this history in Georgia; we will create this place for investors. road and I hope Georgia will consider history. Georgians will play golf as well He cautioned, however, that there is their example,” said Ossinovski. as people in other countries do. There are room for improvement. no stereotypes in this direction, golf is a “One of the major problems in the A SMALL TOWN WITHIN A CITY game for everyone.” Georgian economy today is the unbe- “Over the next 10 years we plan to Tbilisi Hills Golf course is already OLHYDEO\KLJKUH¿QDQFLQJUDWHWKDWWKH mobilize one billion euros for the proj- a member of European Tour Destina- National Bank imposes. For example, ect”, Ossinovski says. tions, which represent prestige golf if the National Bank today imposes a The golf course is a part of a much clubs in Europe. That, Ossinovski said, UH¿QDQFLQJUDWHRIVHYHQSHUFHQWLQODUL larger residential development, including should increase golf tourists coming to ZKHUHDVLQÀDWLRQLQ*HRUJLDLVWZRSHU- homes, international school, kindergar- the country. cent, this means that the National Bank ten and playground for children, a 5-star Ossinovski sees the project as a way is hindering economic growth,” he said. KRWHOWHQQLVFRXUWVVRFFHU¿HOGVJ\PV to increase tourism to Georgia: golf is “This is not good, because it is important for the country to grow its

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www.ilf.com me for several reasons: Georgia imports products, so it is important to develop the agricultural sector in the country. Today, a large part of the agricultural land is not used, so it would be good if investors had the opportunity to use this land, even in the case of high taxes.” Ossinovski noted, however, that the country has a good tax system and a good attitude towards investors. 50 years of experience and innovation in providing world-class “The legislation is very friendly project management, engineering and consultancy services shaped towards investors, so overall my ex- ILF Consulting Engineers into your trusted advisor worldwide. pectations in the investment climate are MXVWL¿HG:HDUHFRQVWDQWO\ORRNLQJIRU 50 YEARS OF ENGINEERING EXCELLENCE QHZSURMHFWV,IZH¿QGDJRRGSURMHFW

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Phone +995 (57) 777 60 13 Phone +995 (57) 777 60 13 E-Mail [email protected] E-Mail [email protected] Georgian Hazelnuts and Honey Highlight Export Potential

GEORGIAN AGRICULTURE SALLY WHITE hazelnut sector was extremely welcome EXPORTS ARE STEADILY for the prime minister of the country, INCREASING: IN 2018 eorgian food continues to grab Mamuka Bakhtadze, given that the coun- THE COUNTRY EXPORTED the international headlines. try’s crops have been dealing with stink $959.2 MILLION WORTH OF G Two exports – hazelnuts bugs the past few years. AGRICULTURAL PRODUCTS, and honey – have illustrated the coun- At Davos it was his discussions with UP 23.2 PERCENT COMPARED try’s potential at two very different, but Swiss chocolate manufacturer Camille TO 2017. EXPORTS TO THE important, European gatherings – the Bloch that led to the announcement by its EU ARE STILL DWARFED BY former on the sidelines at the World CEO, Daniel Bloch, that Georgia would THE DEMAND FROM OTHER Economic Forum in Davos and the latter be the destination of its first foreign COUNTRIES, BUT TWO at a much smaller event, the International investment. PRODUCTS — HAZELNUTS AND Green Week in Berlin. HONEY — UNDERSCORE THE No location has yet been announced The reason this is such good news? POTENTIAL FOR GROWTH. by Camille Bloch for the land it wants to These two sectors are major sources secure to grow hazelnuts for its famous of income for tens of thousands of the trademark Ragusa chocolate. Daniel country’s small farmers. %ORFKKDVMXVWVDLGKHZDV³FRQ¿GHQWLQ 7KHYRWHRIFRQ¿GHQFHLQ*HRUJLD¶V the success of the project and hopes that

APRIL-MAY 2019 Investor.ge | 19 its implementation will commence in the country combat the bug. In February, nearest future.” the Ministry of Agriculture announced 7KDWZDVDZHOFRPHYRWHRIFRQ¿- it was donating 2,000 modern spraying dence for Georgia’s hazelnut production, machines to the Georgian Hazelnut Pro- where stink bugs have been damaging duction Association for distribution to crops over the past few years. Last year destroy the bugs and associated fungal was particularly bad, with a fall in pro- infections. duction value of 50 percent, according to “The association will organize meet- WKHODWHVW¿JXUHVIURP*HR6WDW:KDWZDV ings with groups of farmers to inform are caused by fungal diseases,” she told Georgia’s number two export now ranks them about the planned works and the Georgian Journal last December. 10th after a drop in exports of around 30 government goals,” the ministry said at For organic farmers, in particular, percent last year and 50 percent in 2017. the time. who cannot use chemical sprays, “it is Countries as far afield as the US The Ministry of Agriculture referred important that they do not only trap and (where they have been invading homes to the fungal problems in the hazelnut kill the stick bugs, but also invest much since 1998), parts of Europe, the Medi- plantations and has been organizing more time and work in the maintenance terranean, Turkey and the Black Sea are widespread education campaigns. At of their hazelnut orchards. They must DOVR¿JKWLQJSODJXHVRIWKHLQVHFWZLWK Georgia’s prime “green” NGO, Elkana, prune the shrubs properly in order to more or less success. its director Mariam Jorjadze has said make sure there is enough light in the or- In Georgia there are a number of more bluntly that she believes “only 15 chards and as a consequence less humid- campaigns to do away with the pest. Last percent of losses in hazelnuts are directly ity and ergo less fungi,” she explained. year, the US Agency for International linked” to the stink bug. Georgia’s hazelnut production is a Development (USAID) offered $3.5 “There is high humidity in Western relatively strongly organized sector, with million and gifted 17 tractors to help the Georgia. Thus we think the main losses exports from the prime growing areas - in

20 | Investor.ge APRIL-MAY 2019 and grants to the larger producers and processors. This has helped SRT and NUTSGE in Samegrelo, for example, to improve VWDQGDUGVDQGJDLQWKH,62FHUWL¿FDWHV necessary to trade with Europe. The initiative has launched other schemes to raise the level of growing and manage- Western Georgia’s regions of Samegrelo, report points out, the industry is impor- ment skills. Adjara and Guria - going to Italy, Germa- tant to Georgia as it “supports the liveli- ny and Russia. (The EU imports at least hoods of more than 50,000 growers and UNTAPPED POTENTIAL OF HONEY 25 percent of its consumption.) Support 30 processors.” Honey’s debut on the EU market for further development has come from However, its adds that: “...due to the was a success as well, in part due to the DPXOWLPLOOLRQHXUR¿YH\HDUSURJUDP inconsistent quality and lack of market help of German technical assistance, the to boost Georgian production and ex- distinction, Georgian hazelnuts often Deutsche Gesellschaft für Internationale ports and raise productivity and quality sell at a discount to neighboring Turkish Zusammenarbeit (GIZ) and Georgia’s from the Global Development Alliance. hazelnuts (the world’s largest source) Ministry of Environmental Protection This comprises USAID, the US agency resulting in lower prices and reduced and Agriculture. Cultivating New Frontiers in Agriculture SUR¿WDELOLW\´ TAPLI is a premium brand for export (CNFA) and long-term customer, Italian The European Bank for Reconstruc- to foreign markets, meeting all quality chocolate manufacturer Ferrero, which is tion and Development (EBRD) and controls and standards. While the EU – the world’s largest hazelnut buyer. the European Union’s EU4Business the world’s largest honey importer, buy- As a Global Development Alliance initiative has been providing credit lines ing $1 billion worth in 2017 – recognized

APRIL-MAY 2019 Investor.ge | 21 sherbets, while Chestnut is preferred in Turkey. More than half of the small- producers’ honey never reaches foreign markets. Alpine beekeepers are a familiar site to those driving through Gudauri to reach Kazbegi, as they follow the ancient traditions, taking their hives up to the alpine regions for summer. They are also to be found in summer on the country’s main east-west route at the Rikoti Pass. However, even in Georgia the bee has its problems, having to cope with pesti- Georgian testing laboratories back in limited resource base – on average only cides, fertilizers, excessive antibiotics 2016, only now have a few beekeepers one hectare of arable land, according to and heavy metal (all found in some honey been able to reach the phyto standards. a report on Georgia’s Honey Market Sys- tests), and the population of rare Cau- Two beekeepers, one from Racha and the tem from Czech Republic Development casian honey bees has been shrinking. other from Guria, were among the 1,700 (CRD) program, People in Need – the This bee – Apis Mellifera Caucasica — is exhibitors at Green Week. crop is vital, and considered one of the prized for its long stinger (which collects For many rural households it is the PRVWSUR¿WDEOH PRUHKRQH\DQGSROOLQDWHVPRUHÀRZHUV only source of cash, and is therefore a There is not only the honey, which moderate swarms and resistance to low focus of development projects by sev- LQKDGDSHUFHQWSUR¿WPDUJLQ temperatures. eral foreign aid programs as well as the but other, though slightly less lucrative, Samegrelo-Zemo Svaneti is the main Georgian government. No one is cur- products such as pollen, propolis, bees- producing region (around 25 percent), rently sure of beekeeping numbers or of wax, bee venom, royal jelly and queens. followed by Kakheti (15 percent) and WKHLURXWSXW WKRXJKVRPH¿JXUHVSXWLW There is also trade in bee colonies. Adjara (11 per cent) according to the at 4,000 tons annually but rising rapidly) The numbers that do exist (a fraction CRD report. Each region has, as with as so much of the honey produced is used of the whole), while not up-to-date, give wine, differing traditions in their cul- in village barter systems or sold for cash an indication of the scale of honey’s im- tivation and production – for example, and is a popular “informal” export. portance – in 2016 there were 270,000 Adjara beekeepers like to attract swarms The big hope is for organic honey. It colonies, 3,688 large-scale apiarists and of healthy wild bees and use hand-crafted commands premium prices and is found 174 co-operatives. (Numbers have since wooden hives. in the very poorest areas of Georgia, up expanded considerably, according to an- Government programs and foreign in the mountains. In the EU and Japan ecdotal accounts.) In a good year, hives aid have in recent years sought to educate especially, consumers are ready to pay can deliver three harvests. beekeepers, expand their numbers, raise KLJKSULFHVIRUFHUWL¿HGRUJDQLFSURG- *HRUJLDKDVÀRUDOGLYHUVLW\DEXQ- quality, introduce tougher registration, ucts. Currently, Mexico, Guatemala, dant bee-friendly alpine meadows and a safety standards and monitoring and Argentina, Uruguay and Chile are the millennia-long tradition of beekeeping. restore the population of Caucasian bees. dominant suppliers of organic honey. (Back in 2012, archaeologists discovered To cut processing costs many beekeepers The world trade in honey as a whole what they believed to be a 5,500 year-old form co-operatives, and these have been is worth $2.5 billion. Many countries jar of honey in a noble woman’s tomb given hives, extractors and tanks and have tough barriers to entry to protect near Borjomi.) loans have been made available. their bee populations, though. A notable Honey types include the rare and It is noticeable how much more fre- H[FHSWLRQ²DQGDVLJQL¿FDQWQHZPDUNHW highly valued Alpine Honey, Chestnut, quently in the last couple of years jars of for Georgia — is the Middle East (with Blossom, Lime, Acacia and Linden Georgian honey can be found in super- trade being mainly “informal”). honeys. The latter is popular with Azer- markets, markets and small wineries as As farming families possess a very baijani traders for use in sweets and well as on the roads all over the country.

22 | Investor.ge APRIL-MAY 2019 coming in from the Black Sea region and estimated at $2.5 billion. beyond. That will allow for shipments To date, 180 lari ($70 million) has Explainer: by boat to enter the markets of Armenia, been invested in the project, and negotia- Azerbaijan and Georgia on a scale they tions for sums of $220 million and $400 are currently unable to. Looking further million are in the process, the Anaklia Anaklia abroad, Anaklia could serve as a transit Development Consortium says. point between China and Europe, with The current plans call for the port Iran, India and Central Asia all standing to have the capacity to handle 900,000 Deep-Sea WRJDLQVLJQL¿FDQWO\DVZHOO shipping containers in phase one. The berths will be spread out over WHERE DID ANAKLIA GET ITS 60 hectares of land and will be able to START? handle about 1.5 million tons of goods. Port Located 140 kilometers north of By the end of the second phase of devel- Georgia’s Black Sea town of Batumi, opment, scheduled for 2030, the port will THE PLANNED BLACK Anaklia has a long history of almost but be able to accept up to 14 million tonnes SEA DEEP-SEA PORT not quite being on the map. of goods per yea. IS EXPECTED TO The Soviet Union looked at the 7KDW¿JXUHZLOOULVHWRPLOOLRQ idea of building a port in the area back tonnes by 2080. BOLSTER GEORGIA’S in 1984, but the idea was only seri- ROLE IN THE REGION RXVO\ÀRDWHGXQGHU0LNKHLO6DDNDVKYLOL¶V ANAKLIA’S COMPETITIVE EDGE AS A TRANSIT AND presidency. A deep sea port in Anaklia would LOGISTICS HUB Saakashvili was enthusiastic about have a number of advantages. the project but it never formally took off Director of the Transport Corridor during his administration. Research Center Paata Tsagareishvili The idea of a deep sea port in Anak- says Anaklia will be able to compete lia received new life in 2015 when the with Mersin (Turkey), Odessa (Ukraine), Georgian Dream government announced Novorossiysk (Russia), Klaipeda (Lithu- a tender for the port to be built, and the ania), Ventspils (Lithuania), Bander Ab- JSC Anaklia Development Consortium bas (Iran) and Romanian ports. was selected over another bidder. Tsagareishvili notes that a combination of factors may have the potential to DEVELOPMENT AND INVESTMENT truly make Anaklia a preferable option &RQVWUXFWLRQRI¿FLDOO\NLFNHGRIILQ for shippers. December 2017. “These are all deep sea ports, and we Work on dredging the bed of the port PXVW¿QGDQDGYDQWDJHLQFRPSHWLWLRQ began in September 2018, led by Dutch with them. The development of Anaklia company Van Oord. To date, more than Port will be facilitated by, for example, ¿YHPLOOLRQFXELFPHWHUVRIVDQGKDV political tension in Ukraine, the existing he Anaklia Deep Sea Port is of- been removed from the seabed. sanctions against Iran, and the fact that ten described as Georgia’s most The port will be constructed in a getting to a Baltic Sea port is possible Timportant infrastructure project. series of nine phases, with some of the only through Russia, which limits their The construction and development of most important aspects including a 2.25 HI¿FDF\´KHVD\V a deep sea port on Georgia’s Black Sea km quay wall, a 2.9 km breakwater and Tsagareishvili adds that “the Turkish coast is by no means singular in purpose: break and dry and liquid bulk berths. port of Mersin is not very accessible in In the short term, the port would It will ultimately have a total holding winter, and the Baku-Tbilisi-Kars train serve to further expand the region’s capacity of 100 million tonnes. line faces similar, seasonal issues.” connectivity, opening up sea shipments The total cost of the port alone is But the boon of Anaklia won’t be

APRIL-MAY 2019 Investor.ge | 23 the bane of other ports in the country, put forward by China which aims to con- further on into Turkey and European Tsagareishvili says, which will need to nect the global trade economy through countries. make their own niche and their opera- a series of trade and shipping routes Should the Middle Corridor be able to tions more effective. extending across the world. VWDQGRQLWVRZQWZROHJVWKHUDPL¿FD- “It is necessary for ports in Batumi “[Anaklia] is of strategic importance tions would be enormous. and Poti to avoid overlay [with Anaklia]. for us – it is part of our strategy and vi- “More than 99 percent of land cargo For example, chemical cargo that pass sion of turning Georgia into a regional [from the Far East] is transported through through Central Asia in high volumes transport and logistics hub. The govern- the Russian corridor, and not even one should be distributed through the port ment has done its utmost for the project percent is transported through the Middle of Poti, while Batumi is set to handle to become a priority for leading global Corridor,” head of NGO Hub Georgia petroleum products,” he says. ¿QDQFLDOLQVWLWXWLRQV´3ULPH0LQLVWHU Vaso Urushadze says. Mamuka Bakhtadze said in early March. “This is a form of political depen- ANAKLIA IN THE BIG PICTURE When it comes to serving as a region- dence, and now the West wants this The Georgian government sees al transport and logistics hub, Anaklia’s WUDQVSRUWFRUULGRUWREHGLYHUVL¿HG«:H Anaklia as playing a key role not only in UROHZRXOGEH¿OOLQJLQRQHRIWKHODUJ- have more allies in the world than Russia, the region, but in trans-Eurasian transport est missing link in what is known as the starting with China and ending with the as well. Middle Corridor, or the Trans-Caspian countries of Central Asia and Western Of particular importance in this re- International Transport Route (TMTM) countries. They are ready to allocate gard is China’s Belt and Road Initiative – an international transport corridor that ¿QDQFLDOUHVRXUFHVIRUWKHGHYHORSPHQW (also known as the One Belt, One Road runs through China, Kazakhstan, the of transport and logistics infrastructure initiative) – a vast development strategy Caspian Sea, Azerbaijan, Georgia and in Georgia,” Urushadze notes.

ADVERTISEMENT idea of hosting the Olympics in 2030. The Freestyle Ski and Snowboard World Championships could serve as a good trial run: 21 countries participated in the event in the US this year. To help prepare for the 2023 event, the European Investment Bank will give $2.36 million to construct a bypass road around Bakuriani which should be completed by summer 2019. The Ba- kuriani Municipal Development Fund, responsible for implementing the road, VD\VWKDWWUDI¿FMDPVLQ%DNXULDQLKDYH become too frequent due to the absence Georgia Ski Resorts of a road, hindering the movement of both tourists and locals alike. Moreover, a new public parking area, Prepare to Host Freestyle sewage system, renovated central park and better municipal transport, in addition to a new road that leads up to the Ski and Snowboard World Mitarbi cable car, will also be provided for, Georgia’s Ministry of Infrastructure Championships says. “At the next stage of the project, we will upgrade the main roads and streets, GEORGIAN SKI RESORTS he Georgian government and the renovate buildings, create pedestrian ARE STEADILY GROWING IN LQWHUQDWLRQDO¿QDQFLDOLQVWLWX- and bicycle routes along the river and POPULARITY. THE RESORTS Ttions are set to invest heavily in develop recreational zones in Bakuri- ARE HOSTING MORE SKIERS Georgia’s two most popular ski resorts ani,” the Ministry of Infrastructure told AND SNOWBOARDERS BUT – Bakuriani and Gudauri. The planned Investor.ge. REMAIN UNDER DEVELOPED. SURMHFWVDQG¿QDQFLQJDUHHDUPDUNHGWR The resorts’ growing popularity is THE GOVERNMENT AND help prepare for the 2023 Freestyle Ski also driving investment. In 2014, just INTERNATIONAL DONORS and Snowboard World Championships, 71,195 foreigners visited Georgia’s ski ARE PLANNING MAJOR which will be held in both resorts. resorts. In 2017, the number had doubled INFRASTRUCTURE PROJECTS, 7KLVLVWKH¿UVWWLPHLQWKHKLVWRU\ to 150,000 visits by foreigners alone. ESPECIALLY NEW ROADS, of the event that Georgia will host the Gudauri is the country’s most popu- TO MAKE THE RESORTS lar resort, taking in the lion’s share of MORE ACCESSIBLE IN TIME world championships, and the interna- FOR THE 2022 FREESTYLE SKI tional attention underscores Bakuriani visitors: 116,333 tourists in 2017, while AND SNOWBOARD WORLD and Gudauri’s growing stature as tourist Bakuriani took in 26,029 and Mestia CHAMPIONSHIPS destinations in the country. hosted 7,085 in the same year. For the nascent industry, that’s noth- UNTAPPED POTENTIAL ing to sneeze at, but there is much room Bakuriani has long sought to position to grow, as evidenced by the fact that itself as an international ski destination. despite years of chaotic building and In 2006, the resort sought to be consid- development, the Georgian Ministry of ered as a host for the 2014 Winter Games. Infrastructure told Investor.ge that the /DVW\HDUWKHJRYHUQPHQWDOVRÀRDWHGWKH existing infrastructure is not enough to

APRIL-MAY 2019 Investor.ge | 25 attract European ski buffs searching for adrenalin pumping runs. This was followed by quick development in the 2000s, which has turned out to be both a blessing and a boon for Gudauri: the numbers of tourists are taking bounds and leaps, but the pace of development has forced the industry to take a more prudent approach to expansion, and address several other crucial infrastructure issues such as water and sewage systems. Today private investors are building large-scale hotel and residence develop- ments, in addition to the infrastructure serve the increased number of tourists. country’s resorts for modern skiers and ZRUNVEHLQJ¿QDQFHGE\WKHVWDWHDQG In response, the Georgian Min- snowboarders. LQWHUQDWLRQDO¿QDQFLDOLQVWLWXWLRQV istry of Infrastructure and Regional Bakuriani, the country’s oldest ski International brand hotels are already Development has decided to expand UHVRUWZDVLGHQWL¿HGHDUO\7KH6RYLHWV taking an interest in the resorts’ potential. the resort, opening up slopes on New started developing it for skiing in 1935. Best Western Plus Bakuriani added 70 Gudauri, Lower Gudauri-Seturebi and The location was used as a training base rooms to the resort’s accommodation Kobi-Gudauri. for the winter Olympics up until the stock in 2017. Two other international 7KH¿UVWVWHSZDVFRPSOHWHGLQWLPH 1970s and 1980s. projects -- Radisson Blu in Gudauri and for the 2019 ski season. Gudauri is now However, one of the country’s most Ramada Resort in Goderdzi – are report- connected to Kobi (a village in Stepants- popular ski destinations largely lay edly underway. minda) by cable car: the Kobi-Gudauri dormant until an Austrian company was cable car covers over 7.5 km in about given a license in 1985 to build a hotel NEWCOMERS ON THE MOUNTAIN 15 minutes and can serve about 2,800 in Gudauri, a mountain village just 120 Goderdzi and Mestia (Tetnuldi and passengers an hour. km north of Tbilisi. Hatsvali) ski resorts are the newest in The construction of more roads the country. in the region, including six bridges Goderdzi ski resort came into DQG¿YHWXQQHOVRQWKH.YHVKHWL The Georgian Ministry of existence quite recently in just Kobi road, is also planned. More- Infrastructure and Regional 2015. Though it is still under over, more advanced sewage and development, its slopes are open water supply systems will be put Development has decided to expand to skiers, who can make use of a LQWRSODFHDQGZLOOEH¿QDQFHGE\ the resort ski lift, several hotels in the area the Asian Development Bank. and restaurants. By its completion, the resort will have the capacity A NATURAL SKI PARADISE The hotel, Marco Polo, opened in to entertain 7,500 skiers per day on 35 Georgia’s blooming status as a ski 1988 and survived the early years of kilometers of trails and will be serviced destination is to be expected – 66 percent independence by promoting a very niche by eight lifts. of the country is covered in mountains, form of skiing, heliskiing. Though a bit distant from the capital with ski elevations peaking above Given the fact that the extreme sport of Tbilisi, the Georgian National Tourism 3,000 meters above sea level. While was still in its early development, it Administration is hopeful that new roads, Georgia enjoyed a solid reputation for was not available everywhere, and in for which plans have already been drawn skiing during the Soviet Union, it has Georgia it was considerably cheaper XSDQG¿QDQFLQJVHFXUHGZLOOVWLPXODWH taken nearly two decades to prepare the than elsewhere. Gudauri was able to WKHÀRZRIWRXULVWVWR*RGHUG]L$GMDUD

26 | Investor.ge APRIL-MAY 2019 in all seasons, from both near and far. casian mountains is an entirely unique “Adventure and ski tourism are on “Goderdzi and Batumi are a great experience”, Kvrivishvili said. the top of our list, and we want to reach FRPELQDWLRQDQGZLOOEHQH¿WRQHDQ- Mestia, on the other hand, opened to out and peak the interest of tourists not other, ensuring that the more seasonal skiers just seven years ago, but already only from the region, but from all over, tourism sectors in the area do not go offers winter sports enthusiasts the lon- including Europe, Israel, China and neglected in the off-season”, the head gest ski trails in the South Caucasus, in beyond. By 2025, we want to see the of the Georgian National Tourism Ad- Tetnuldi – 9.5 km. It also has the larg- percentage of tourists coming to Georgia ministration, Mariam Kvrivishvili, told est vertical drop of 1.7 km. In total, the from our neighboring markets (Armenia, Investor.ge. resort offers 30 km of tracks, and boasts Azerbaijan, Russia, Turkey and Ukraine) Though Goderdzi is still quite a ways the longest ski season in all of Georgia. go down to 70% of the total market share, from completion, it already has much down from its current position of around to offer. WHAT’S AHEAD ON THE TRAIL? 85%, and for tourists from other regions “Goderdzi has some of the most The Georgian National Tourism of the world to take up a bigger share breathtaking views of anywhere in Agency has been working in line with of the pie. Georgia – of anywhere in the world, for the country’s tourism strategy, which “Georgia is uniquely placed to attract that matter. And that’s one of the unique has set out ambitious plans for the period experienced skiers from Europe and selling points of attracting travelers from spanning from 2015-2025. elsewhere searching for a real adventure. outside the region to Georgia in general: By that time, Kvrivishvili said, one of It might even be that by 2025, we’ve to be at the crossroads of Europe and the most important goals is to diversify even surpassed the goals we set out for Asia, with spectacular views of the Cau- the market. ourselves”, Kvrivishvili said.

APRIL-MAY 2019 Investor.ge | 27 of organizations like USAID seems radi- more likely to survive in the long-term. USAID cally different to the goals of the private sector. However, the two are not as far AMCHAM AND PRIVATE SECTOR apart as one might think. ENGAGEMENT ON BUSINESS Program USAID Director Mark Green ex- ENABLING ENVIRONMENT plains the strategy in the organization’s USAID’s Governing for Growth Encourages new Private Sector Engagement Policy (G4G) project currently focuses on the document. improvement of the business enabling “I believe the future of interna- environment. It works with the private Private tional development is enterprise driven. sector, and has worked intensively with ‘Enterprise-driven development’ means $P&KDPDUHÀHFWLRQRIDORQJWUDGLWLRQ Businesses aligning with private enterprises as co- of engagement between USAID and creators of market-oriented solutions, AmCham on policy issues. with shared risk and shared reward. It “We have worked with USAID for to Invest means recognizing the value of engaging many years, working together to help the private sector in development and facilitate contact between the business in Local humanitarian assistance to help shape so- sector and government on policy issues,” lutions that achieve sustained impact and noted AmCham Georgia Executive Di- can carry forward long after USAID’s rector George Welton. Communities support has ended,” he said. This work has many different dimen- The logic of market engagement is sions, he noted. A NEW PUSH BY USAID driven by scale, innovation and sustain- “We work through our committees TO INVOLVE PRIVATE ability. In terms of scale, development and the Investor Council to develop BUSINESSES IN ITS DLGLVVLJQL¿FDQWEXWGRHVQRWFRPHFORVH legislation, leveraging the insights and to the scale of investment that the private expertise of our members to ensure that WORK TO EMPOWER sector mobilizes. In Georgia in 2018, the changes on policy and law serve to en- LOCAL POPULATIONS IS economy generated $5 billion in gross able businesses and do not create nega- PROVIDING BENEFITS FOR capital formation, which is actually quite tive unintended consequences.” GEORGIAN BUSINESSES a bit less than aggregate investment. AmCham has also worked as an AND COMMUNITIES Therefore, leveraging this investment to implementer on USAID projects directly. achieve development goals can have far In particular, George noted that “immedi- more impact than if USAID just invested ately after the Rose Revolution in 2004, the money directly. we worked with the Business Climate SAID is one of the U.S. Engaging with the private sector can Reform project, engaging intensively on government’s main agencies also inject private-sector expertise and the massive tax reform, changes in trade Ufor providing development innovation to solve social problems, policy, licensing and much more.” assistance to the country. In 2018, the whether that is knowledge transfer to More recently, AmCham has run organization had a total budget of $56 improve supply chains, new technologies projects under USAID’s Judicial In- million, an amount that is likely to grow to help underserved communities access dependence and Legal Empowerment in 2019. This money goes to support services or expanding the use of new Program (JILEP) and Governing for work on economic growth, civil society, innovations to improve local healthcare. Growth (G4G) Projects HOHFWLRQVJHQGHUHPSRZHUPHQWFRQÀLFW Working with the private sector is “All of these projects have used pri- prevention and much more. also assumed to create greater sustain- vate sector knowledge to inform policy In 2018 USAID launched a new push ability. If companies can be made to work and have been effective because Am- to place private-sector engagement at the better, then they will contribute to eco- &KDPKDVEHHQDEOHWRXVHLWVLQÀXHQFH core of what it does. This might seem nomic well-being for years. If policies and strong government connections to strange because the development work are aligned with market needs, they are advocate for change. But USAID’s part-

28 | Investor.ge APRIL-MAY 2019 nership has been vital as their resources there are really three main motivating working with the G-HIP project, has used have allowed us leverage our skill sets factors for partners to join us in a de- its expertise and its skill set to train local to work more intensively on the issues velopment program: (1) CSR plain and farmers and improve the hazelnut value than we would be able to without that simple: it improves a company’s image chain. This is a boon for the farmers who support. It has also made us stronger as and in some cases builds brand loyalty; can sell their produce for more money, an organization, which makes our work (2) outgrowth: a company wants to grow and for Ferrero, which can increase and more sustainable,” he said. its business but there is a systemic prob- diversify their source of hazelnuts. lem blocking the way (e.g. not enough Another example is the Crystal Mi- DIRECT ENGAGEMENT WITH skilled labor, suppliers are too scattered, FUR¿QDQFH2UJDQL]DWLRQ&U\VWDO)XQG BUSINESS regulatory impediments, etc.); (3) secu- which has been running a project with While engagement with the private rity of investments: this is often the case USAID support that works with young sector on the business environment has for companies that own infrastructure entrepreneurs to develop their business a long track-record, a newer innovation – they rely on the stability and security ideas. is for USAID to directly partner with of the surrounding community to help This project provides zero-interest, businesses on particular projects. protect their investments.” unsecured loans to help selected entre- So, what’s in it for the company? Driven by a range of these motiva- preneurs start their businesses. It also Veronica Lee, Director of Economic tions, a number of projects stand out. provides mentoring to help ensure that *URZWKKLJKOLJKWVWKUHHPDLQEHQH¿WV Ferrero made a large investment in the business succeeds. The project is “We have worked with a number of hazelnut production more than a decade clearly a great opportunity for entrepre- private sector partners in the past and ago in western Georgia. Now Ferrero, neurs who can utilize it, Archil Baku-

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Kyiv Odessa Lviv www.amcenters.com +995 (32) 250 00 20 Tbilisi Batumi Almaty Astana APRIL-MAYAPRP ILIL-L MAY 2012019019 Investor.geInveests orr.ge | 29 radze, Chairman of Crystal Fund, said. to schools. Deloitte was a partner in the with vision and energy in a wide range He added that the project also strong- project and found employees really re- of directions, as the Georgian market ly supports the company’s “DNA.” sponded to the project. matures. As a result, more companies “It allows us to engage with young “We were engaged with the project are innovating in agriculture, tourism, entrepreneurs who are crucial for our for three years and each year, the number IT, education, energy, manufacturing future development. It is our ambition to of Deloitte participants in the project and much more. There are plenty of turn this CSR [corporate social responsi- grew,” Managing Partner of Deloitte opportunities for engagement to resolve bility] into a sustainable project,” he said. John Robinson said. individual company issues and achieve Similarly, USAID’s Development The volunteers, he says, really en- the greatest possible economic and social Credit Authority, a loan portfolio guar- joyed it. “Some of our team put a huge impact.” antee implemented by TBC Bank, helps amount of their own time into working at And through CSR, there are also make up to $15 million dollars in lending the schools and many of them said that it opportunities that go beyond the core available to agribusinesses in Georgia. was one of the best and most rewarding business. “Opportunities for broader This kind of credit guarantee scheme is things that they have ever done.” social engagement abound, as patriotic also set to expand under the new USAID Georgians look for opportunities to not PSE strategy. FUTURE OPPORTUNITIES AND THE only grow their businesses, but to have BP and Anaklia Development Con- JOURNEY TO SELF-RELIANCE a positive impact on the environment, on sortium have also developed projects Building on these experiences, US- the education sector, on the lives of the with USAID. Working with USAID’s AID’s new Private Sector Engagement poor and excluded. Through both internal =UGD3URMHFWWKH\DUHERWK¿QDQFLQJ strategy makes the private sector one of and external CSR, Public Sector Engage- projects in the communities that are lo- the most central partners in their future ment from USAID will be able to tap into cated near to their main activities. BP are work. Businesses will be eager to engage, this and help it along,” Welton added. supporting social and economic projects AmCham’s Executive Director George Veronica Lee, Head of the Economic in communities located next to their main Welton says. Growth portfolio, noted that “engage- pipelines and Anaklia Development Con- “There are almost endless opportuni- ment is not just about money. Good sortium is supporting projects that will ties for engagement. In a business en- corporate citizens and the new business help the economic develop of Anaklia abling environment, the Investor Council models they introduce can also simply and its surrounding area. brings together the Prime Minister and drive the development of the wider busi- Not all of the initiatives connect to government to meet with key business ness community.” the core business. Many opportunities for associations and the International Finan- The ultimate goal, as stated in the partnership with USAID projects have cial Institutions. This is an ideal platform new USAID strategy, is to help ensure simply helped those companies connect for governance discussions and private that society gradually reduces its depen- to communities and provide volunteering sector engagement.” dence on foreign development support. opportunities for staff. There is also a growing pool of inno- “Ultimately, development should For example, USAID’s G-PriEd vating companies that create opportuni- be about achieving self-reliance, and project worked with private-sector vol- ties for more direct engagement, he said. the private sector is the key partner in unteers to provide business skills classes “Individual companies are emerging achieving that goal,” she said.

30 | Investor.ge APRIL-MAY 2019 to coaches several years ago. are usually held once a week, for three Nino Dzotsenidze was one of the months or longer depending on a client’s Georgian pioneers of Georgian businesses coach- needs. ing. She started seven years ago. In the Eka Babunashvili, a coach with over Businesses early 2010s, executive coaching wasn’t ¿YH\HDUVRIH[SHULHQFHVD\VWKDWDJRRG that popular among Georgian companies, coach does not make the client dependent ']RWVHQLG]HUHFDOOV+HU¿UVWFOLHQWZDV on coaching. Embrace TBC Bank. “The coach does this by listening, Today, Dzotsenidze consults mostly asking focused questions, reflecting corporations on an executive level. She back, challenging and acknowledging explains that the basic step is to have the client. The coach makes clients’ goals Coaching clear and helps them to develop a strong proper performance evaluations, which strategy and action plan. As the popu- can expose a range of problems within an larity of coaching increases, businesses organization. “If a company has a proper Culture will have to be aware about coaching evaluation system, they will notice how standards and what to expect from a important coaching is,” she says. COMPANIES IN GEORGIA professional coach,” she told Investor.ge. In the future, Dzotsenidze believes $VWKH¿UVW*HRUJLDQPHPEHURI,Q- ARE INCREASINGLY business coaching will be as necessary ternational Coach Federation (ICF) she HIRING COACHES TO for businesses as modern accounting is facilitating “International Coaching systems. Week” early may this year, a voluntary EMPOWER EMPLOYEES 7RGD\RYHUFHUWL¿HGFRDFKHVDUH and free event organized to raise aware- TO COMMUNICATE working with Georgians, both as business about coaching in Georgia. BETTER AND TO BUILD ness coaches and as life coaches. Tamuna Chichua, a professional TAPPING INTO MANAGEMENT STRONGER TEAMS coach and the founder of a coaching SKILLS academy called Growin, hopes that the Dea Chkhaidze’s first experience QXPEHURIFHUWL¿HGFRDFKHVZLOOLQFUHDVH with coaching was in 2016. LQWKHQHDUHVWIXWXUH*URZLQLVDQRI¿FLDO Chkhaidze, the HR and Development and exclusive representative of Erickson Director of Georgia Healthcare Group, International and offers professionals says coaching has helped her develop NINO BAKRADZE leadership skills. VKRUWDQGORQJWHUPFHUWL¿HGFRXUVHVLQ “When I received feedback and coaching. hen Aleksi Aleksishvili cre- evaluation from my manager and col- “I believe that coaching is crucial ated the Policy and Man- leagues in 2016, it was a wakeup call for our society and very soon people agement Consulting Group for me. I considered myself a successful W will realize it. The popularization of this (PMCG), he hired business coaches to person who had achieved a lot. But from profession means that we will have new work with his new team. their feedback, it was clear that I needed SRVLWLYHFKDQJHVLQWKH¿HOGRIHGXFDWLRQ At the time it was a new practice for to develop particular leadership skills,” medicine, business and so on,” Chichua Georgia, but Aleksishvili had experi- she says. Coaching, she adds, helped her told Investor.ge. enced it at international forums. He knew achieve that. “I set goals and started work to businesses coaches could help his newly WHAT IS COACHING? founded company create a strong sense achieve them. This process was a lot of The main tenet of coaching is that hard work, I had obstacles, but my coach of corporate identity. people know how to solve their own was very supportive and helped me to “To identify what the corporation’s problems, but they may need help to overcome all of them,” she says. goal is and what your role is in achiev- ¿QGWKHDQVZHU$FRDFKZRUNVZLWK Chkhaidze credits the coaching ses- ing this goal is very important. After an individual to unlock their potential VLRQVZLWKPDNLQJKHUPRUHFRQ¿GHQW identifying all these factors, you have by asking questions. The key skill of She said the practice also helped her learn a better idea of how to act. That is what coaching is asking the right questions how to delegate work, how to manage we got out of coaching sessions,” he told to help an individual work through their time and motivate staff. Dzotsenidze Investor.ge. own issues. thinks that if a person knows how to Coaching for businesses started gain- The average price of a life coaching manage herself very well, she can man- ing popularity in the West in the 1980s, session varies between 50-150 lari. Busi- age others, too. and has become a standard part of business and executive coaching cost more, “Increasing self-awareness is one of ness culture over the past decade. and are usually negotiated between the the main goals of coaching sessions,” Georgian executives began turning coach and client. Coaching sessions she says.

APRIL-MAY 2019 Investor.ge | 31 NEWS

CONTENT

LUNCHEON WITH 33 JAPANESE AMBASSADOR

33 AMCHAM HOSTS MP TAMAR 34 CLT COMMITTEE DISCUSSES CHUGOSHVILI AND TOURISM AGRICULTURE LAND LAW AGENCY HEAD MARIAM KVRIVISHVILI 34 GOSSELIN MOVES GEORGIAN PIROSMANI PAINTINGS TO 33 AMCHAM HOSTS MP TAMAR TALLINN AND PARIS CHUGOSHVILI AND TOURISM AGENCY HEAD MARIAM 36 NEW MEMBERS KVRIVISHVILI 38 MEMBERSHIP DIRECTORY 33 AMCHAM LUNCHEON WITH JAPANESE AMBASSADOR AT 42 SOCIAL: AMCHAM MEMBER TBILISI MARRIOTT COCKTAILS

34 AMCHAM TOURISM COMMITTEE 44 BOARD OF DIRECTORS MEETS NEW HEAD OF TOURISM AGENCY

32 | Investor.ge APRIL-MAY 2019 NEWS

AMCHAM HOSTS MP TAMAR CHUGOSHVILI AND TOURISM AGENCY HEAD MARIAM KVRIVISHVILI

AmCham hosted a monthly Business from Head of National Tourism Agency of the National Tourism Administration Roundtable with the First Deputy Chair- Mariam Kvrivishvili. Mariam Kvrivishvili presented on the person of Parliament Tamar Chugoshvili Chugoshvili presented on parliamen- ongoing projects and future plans of the on March 1 at the Tbilisi Marriott Hotel. tary and judicial reforms, current chal- administration. Both answered members’ Members also heard a presentation lenges and future goals. The new Head questions during a Q&A. ROUNDTABLE WITH MIKHEIL KHIDURELI, AMCHAM LUNCHEON DIRECTOR OF ENTERPRISE GEORGIA WITH JAPANESE AmCham hosted a AMBASSADOR AT monthly business roundta- TBILISI MARRIOTT ble with the director of En- terprise Georgia Mikheil AmCham Georgia hosted a Mem- Khidureli on March 19 at bers’ only luncheon with the Japanese Sheraton Metechi Palace. Ambassador to Georgia Tadaharu Uehara Khidureli presented at the Tbilisi Marriott on February 20. the results of 2018 and The ambassador spoke about Japan’s role introduced plans for the in Georgia and Japanese foreign policy as agency’s future develop- it relates to Georgia and the region. The ment. He answered mem- presentation was followed by a lively bers’ questions during an Q&A between members and Ambassador extended Q&A. Tadaharu Uehara . NEWS

AMCHAM TOURISM COMMITTEE MEETS NEW HEAD OF TOURISM AGENCY

AmCham’s Tourism Committee met with new head of Georgian National Tourism Administration (GNTA), Mariam Kvrivishvili, on March 4. Kvrivishvili delivered a very com- prehensive and detailed presentation of GNTA’s strategy and views on tourism and exchanged opinions with the committee members.

CLT COMMITTEE DISCUSSES AGRICULTURE LAND LAW CLT Committee members and other interested AmCham members held a meeting on March 7 to discuss the draft organic law on agricultural land and other related amendments to various laws. Along with the general discussion on the issue of agricultural land ownership by foreigners and proposed exceptions to this rule, members also considered the recommendations AmCham shall suggest to the parliament of Georgia.

Gosselin moves Georgian Pirosmani paintings to Tallinn and Paris

GOSSELIN IS PACKING UP THIS ARTIST’S WORK FOR A TRIP FROM THE GEORGIAN CAPITAL OF TBILISI TO AN EXHIBITION TO BE HELD IN TALLINN AND PARIS. WEARING SILK GLOVES, GOSSELIN EMPLOYEES PACKED THE WORKS IN CRATES, WHICH WERE THEN BROUGHT TO THE AIRPORT ACCOMPANIED BY A POLICE ESCORT

34 | Investor.ge APRIL-MAY 2019 ADVERTISEMENT "#$%"&!$%#& #'$%" %& Niko Pirosmani could never have known that his works ( would travel the entire continent after his death. Destitute at the time of his passing more than one hundred years ago, the Georgian artist’s work is now worth millions. Pirosmani didn’t achieve international recogni- $%&"$% )"*" tion until after his death, but later inspired many of the +,(-,./ greats, including Picasso. 0 The poignant portraits and takes of traders, laborers, KLVWRULF¿JXUHVDQGDQLPDOVFUHDWHGE\WKHDV\HWXQNQRZQ Niko Pirosmani achieved world fame shortly after his death in 1918, when an exhibit of Georgian art travelled around Europe. One hundred years later, Gosselin is packing up this artist’s work once again, this time for a trip from the Georgian capital of Tbilisi to an exhibition to be held in Tallinn and Paris.

FROM TRUSTED HANDS The ten Pirosmani works in the exhibit are worth a total of 17 million euros. Gosselin’s team in Georgia ar- ranged the complete move to Tallinn. In a matter of one week - which included a few all-nighters - the team made the customized crates that would keep the works safe on the plane. The foam inside protects the pieces from shock, and a special tissue paper prevents damage to the layers of oil paint.

TO TRUSTING HEARTS "! 1 2 2 Gosselin is very experienced in moving unusually -,./ 3 expensive works of art, says Gosselin regional manager for the Caucasus John Braeckeveldt. “After a number of successful moves for museums in Italy, Georgia and France, museums and the embassies NQRZKRZWR¿QGXV:HWUHDWDSDLQWLQJWKDWLVKDQJLQJ on a private individual’s wall with just as much respect as a piece meant for a museum. We give every move the greatest attention to detail.” Wearing silk gloves, Gosselin employees packed the works in crates, which were then brought to the airport accompanied by a police escort. Braeckeveldt: “It goes without saying that you don’t take a single risk with works like these. Moving is team- 2 work and everything has to be absolutely perfect: the cus- ! "" #" $#% toms documents, the reservations for the airplane, transport "& &'#() * ! to and from the museums, the team that will unpack the #()( #()( % + #! ," works at the destination, and so on. Every aspect of the " ,#(- .- ( #) move must be perfectly aligned with the previous one. Our ,& ,#/% '0''1 #2 3#"' team really did a fantastic job over the past few weeks.” ! NEWS

Dressler Consulting LLC m2 Real Estate Pace International LLC Corp. A Corp. A Corp. A

Dressler Consulting is a US-based JSC m² Real Estate was established by Pace International LLC was established PXOWLQDWLRQDOFRPSDQ\ZLWKRIÀFHVLQWKH JSC Bank of Georgia in 2006. Driven by a in New York, USA in 1997. Pace Interna- United States, Poland, Ukraine and Geor- WHDPRIKLJKO\TXDOLÀHGSURIHVVLRQDOV-6& tional LLC is a founder member of Pace gia. With a highly skilled team of over 100 Pò5HDO(VWDWHLVDVLJQLÀFDQWSOD\HULQWKH Group. Pace Group involves several com- FHUWLÀHG GHYHORSHUV DQG HQJLQHHUV VSH- real estate market in Georgia. Key business panies engaged in international freight for- cializing in multiple technologies. Dressler directions: real estate development and warding, transportation, berth operations Consulting LLC has designed and devel- property management. At various times, and other transport related activities. From oped enterprise business solutions and shareholders of m² Real Estate were the 2015, Pace Group started development of applications for clients in North America, emerging markets investment funds with an ultra-modern port terminal complex on Western Europe and Eastern Europe. The a combined investment of more than 25 hectares of land in Poti. The total cost company provides a full range of services $10 million in JSC m² Real Estate. At pres- of the project is 120 million USD, with the related to software product development ent, JSC m² Real Estate is a wholly owned ÀUVWVWDJHRILQYHVWPHQWVEHLQJPLOOLRQ and works closely with its clients during subsidiary of investing company “Georgia 86'RIZKLFKPLOOLRQZLOOEHÀQDQFHGE\ the project lifecycle to ensure that the Capital”. OPIC. New terminal will allow us to receive project fully meets all the expectations www.m2.ge vessels with the capacity of 50,000 tons and requirements. DQGVLJQLÀFDQWO\LQFUHDVHFDUJRWXUQRYHU www.dresslerconsulting.com www.pace.ge

Interco Travel Group RSM Georgia LLC Transporter LLC Corp B Corp B Corp B Celebrating more than 25 remarkable RSM Georgia is an independent Transporter LLC in headquartered in years in Caucasus, InterCo Travel Group member of a global network RSM, which Tbilisi, Georgia. The company was found- has established an enviable reputation is the 6th largest network of independent ed in 2015. In 2016, Transporter became as a group of the full service destination DXGLWWD[DQGDGYLVRU\ÀUPVLQWKHZRUOG DQRIÀFLDOGLVWULEXWRURI%RPEDUGLHU5HFUH- management companies, hand crafting DQG WKH ÀIWK ODUJHVW ÀUP LQ WKH 86 7KH ational Products (BRP) and all of its brands and coordinating complex outbound and network comprises of more than 43,000 (Can-Am, Can-Am Spyder, See-Doo, Lynx inbound itineraries, covering all logistics, staff working across 800 offices in 120 and Ski-Doo, Evinrude,). In March, 2017 transportation, accommodation and the countries. The company is in each of the Transporter signed distributor contract insider access to unique experiences. top 40 major business centers throughout with Brunswick Boat Group, in 2017 the www.interco.travel the world. Clients of RSM Georgia range FRPSDQ\ EHFDPH RIÀFLDO GLVWULEXWRU RI from growth-focused entrepreneurial busi- MND Group, Kawasaki Motors, Italcar, nesses through to leading multi-national Jobe Watersports, Zodiac Nautic, Grand organizations across many sectors and Boats in Georgia. In 2018 the company operating nationally and across borders. became authorized dealer of Pistenbully, As an integrated team, the company distributor of Husqvarna Group, Gardena shares skills, insight and resources, as well and Volvo Penta. Currently Transporter is as a client-centric approach that’s based distributor of more than 70 international on a deep understanding of client’s busi- brands in Georgia. ness. RSM Georgia offers its services in four Transporter LLC runs 3 showrooms, one PDLQ RIÀFHV LQ 7ELOLVL DQG EUDQFK RIÀFHV in the capital, Tbilisi, one in the four season in Batumi and Kutaisi. Since 2012 RSM resort Bakuriani and one in the sea side re- has been a leading sponsor of European sort Batumi. Transporter LLC also operates Business Award, Europe’s largest and most DVHUYLFHFHQWHUZLWKFHUWLÀHGWHFKQLFLDQV VLJQLÀFDQW FURVVVHFWRU EXVLQHVV UHFRJQL- and mobile service group. tion program. www.transporter.com.ge www.rsm.ge NEW MEMBERS

36 | Investor.ge APRIL-MAY 2019 NEWS NEW MEMBERS

Representative Office of Mars AE Solar LLC APM Terminals Poti LLC in Georgia Corp. B Corp B Corp. A Mars makes many great products: AE Solar is one of the leading brands APM Terminals Poti is a part of A.P. chocolate, quality pet foods, nutritious in renewables, providing high-quality Moller-Maersk, the world’s largest integra- family foods as well as tasty gum and photovoltaic energy products, services tor of container and port logistics, with confections. Mars operates more than and energy storage solutions since 2003. over 70 terminals in 59 countries. APM Ter- IDFWRULHVDQGRIÀFHVLQFRXQWULHV AE Solar Smart Technology was awarded minals Poti Sea Port is the port services and The company has more than 100,000 as- as “Top Innovation 2018” by PV Magazine container solution provider of choice for sociates, thousands of suppliers and mil- and SNEC 2017 “Top 10 Highlights”. In Georgia and the Caucasus and handles lions of consumers worldwide. Mars is the Georgia AE Solar established companies over 80% of container volume in Georgia. company behind many of the enduring for global sales, EPC services for PV proj- The port works with shipping lines, import- brands Georgian citizens have come to ects and manufacturing of PV modules. ers/exporters, governments, business lead- know and trust. These brands are confec- www.ae-solar.com ers and the entire global supply chain to tionery - Skickers®, M&Ms®, Twix®, Mars®, provide solutions that help nations achieve Bounty®, Milky Way®, Orbit®, Skittles®; pet their ambitions and businesses reach their nutrition - Whiskas®, Kitekat®, Catsan®, performance goals. Pedigree®, Chappi®. www.apmterminals.com www.mars.com

Mr. Umit Hakki Aydogan Mr. Gigi Tsiklauri Individual Individual Based in Georgia since 2013, worked Having retired from the U.S. Embassy in as GM at Mina (Glass Production), as 2016 after 14 years of service as Ambassa- BDM at GIG and Maqro. He has also GRU·VWUDQVODWRU0U7VLNODXULÀUVWUHJLVWHUHG worked in Turkey, Uzbekistan, Kazakhstan, as a sole proprietor and in 2017 founded 8NUDLQH DQG 5XVVLD PDLQO\ IRU ûLüHFDP GT Language Services LLC. The major area He is a graduate of Bosphorus University of activities of Mr. Tsikaluri and his com- LQ ,VWDQEXO ZLWK D PDMRU LQ ÀQDQFH DQG pany is interpreting and translation with later moved to sales and then general overwhelming majority of his contracts management, managing production EHLQJIXQGHGHLWKHUE\86*RIDIÀOLDWHG companies. entities.

APRIL-MAY 2019 Investor.ge | 37 AmCham Company Members as of April 2019

PATRON MEMBERS Betsy’s Hotel / Prosperos Books Dentons Georgia LLC Gosselin Mobility Georgia 32/34 Makashvili St. / 10 Melikishvili St. 3 M/D, Didi Digomi 34 Rustaveli Ave. Tel: 2509300; Fax: 2509301 Tel: 2596601/02/03; Fax: 2596600 Tel: 2987624, Fax: 2923592 www.dentons.com www.gosselinmobility.eu BP Exploration Georgia www.betsyshotel.com 24, S. Tsintsadze St. Tel: 2593400 Diplomat Georgia Grant Thornton LLC www.bpgeorgia.ge 65, Kakheti Highway Blox for “Hampton by Hilton” 61 D. Aghmashenebeli Ave. Tel: 2984950 1 Akhmeteli St. Tel: 2604406 www.diplomat.ge Mob: 593339279 www.grantthornton.ge KPMG Georgia LLC www.facebook.com/BLOXge/ 5th Floor, GMT Plaza, 4 Freedom Sq., 0105 Dressler Consulting Greco Group Tel: 2935713; Fax: 2982276 1664 De Mott Court/ Merrick 1 Nutsubidze St. British American Tobacco www.kpmg.ge New York, 11566, USA Tel: 2393138; Fax: 2311107 71 Vazha Pshavela Ave. Tel: +1-5169081444 www.greco.ge Tel: 2157500/01/02; Fax: 2157503 www.dresslerconsulting.com www.bat.com PwC Georgia GT Group 12 M. Aleksidze St., 0160 EY Georgia 48 B. Cholokashvili St. King David Business Center 44 Kote Abkhazi St. Budget Rent a Car - Otokoc Tel: 2740740 Tel: 2508050; Fax: 2508060 Tel: 2439375; Fax: 2439376 Georgia LLC www.gtgroup.ge www.pwc.com 37 Rustaveli St. www.ge.ey.com Tel: 2234112 www.budget.com.ge F H Bertling Georgia Ltd. GULF Georgia UGT Room 3, 4th Floor, by Sun Petrolium Georgia LLC D&KDYFKDYDG]H$YHWKÀRRU 154 Agmashenebeli Ave. Pixel Business Center, Tel: 2220211; Fax: 2220206 Caucasus University Tel: 2252287 34 Chavchavadze Ave. www.ugt.ge .RVWDYD6W%OGWKÀ www.bertling.com Tel/Fax: 2496444 Tel: 2377777; Fax: 2313226 www.gulf.ge www.cu.edu.ge

FINCA Bank Georgia 9D]KD3VKDYHOD$YHUGÀ Hilton Batumi CORPORATE A MEMBERS CleanTech Ltd. Tel: 2244949 13 Takaishvili St., Batumi 5 Avlip Zurabashvili St., 0144 ZZZ¿QFDJH Tel: 292092 Tel: 2922202 www.hilton.com Alliance LLC www.cleantech.ge 135 King Parnavaz St., Batumi Tel: 591555757 Frontera Resources Georgia www.alliancegroup.ge 12 Paliashvili St. Iberia Refreshments, JSC Tel: 2252412 Tetri Khevi Hesi District, Orkhevi Coca-Cola Company www.fronteraresources.com Tel: 2241091; Fax: 2241090 114 Tsereteli Ave. www.pepsi.ge Alliance Group Holding, JSC Tel: 2941699, 2942609 47/57 M. Kostava St., 0179 www.coca-cola.com Gazelle Finance Georgia LLC Tel: 2424181; Fax: 2998112 Tatishvili st. 3/5 (Melikishvili Ave. www.agh.ge IMSS Ltd. $ZRUG%XVLQHVV&HQWHUWKÀRRU 10a Bakhtrioni St. Colliers International Tel: 2904304 Tel: 2920928 Georgia LLC ZZZJD]HOOH¿QDQFHFRP www.imss.ge American Medical Centers, 11th Floor, King David Business Georgia Center, 12 M. Aleksidze St. 0171 11 D. Arakishvili St., Tbilisi Tel: 2224477 General Electric Kavkaz Cement JSC Tel: 2500020 www.colliers.com 5th Floor, Pixel Bulding, 29 Andronikashvili St., 0189 114, Gorgiladze St., Batumi 34 Chavchavadze Ave. Tel: 2619090 Tel: (+995 32) 250 00 77 Tel: 2259516 / 2259505 www.kavkazcement.ge www.amcenters.com www.ge.com Conformity Assessment International (CAI) LLC 8 Politkovskaya St., 1086 Maersk Georgia LLC Anaklia Development Tel: 595690008 Georgian American Alloys, Inc. 6 Khetagurov St. Consortium www.ca.international 200 S Biscayne Blvd Suite 5500, 6 Marjanishvili St. Miami FL 33131 USA Tel: 2200800; Fax: 2200815 Tel: 2959910 Tel: (1)3053757560 www.maerskline.com www.anakliadevelopment.com www.gaalloys.com &XVKPDQ :DNH¿HOG*HRUJLD 4th Floor, 34 l. Chavchavadze Ave. Marriott Hotels, Resorts & Suites 0179 Avon Cosmetics Georgia LLC Georgian American University 13 Rustaveli Ave. Tel: 2474849 117 Tsereteli Ave. 8 Aleksidze St. Tel: 2779200; Fax: 2779210 Tel: 2226805; Fax: 2226806 ZZZFXVKPDQZDNH¿HOGJH Tel: 2206520; Fax: 2206519 www.marriott.com www.avon.com www.gau.ge

Deloitte 0DUV//&5HSUHVHQWDWLYH2I¿FH Best Western Hotel Tbilisi King David Business Center GMT Group in Georgia 11 Apakidze St. WKÀRRU0HUDE$OHNVLG]H6W 4 Freedom Square 71 V. Pshavela Ave; “BCV”, 0186 Tel: 2300777 Tel: 2244566; Fax: 2244569 Tel: 2988988; Fax: 2988910 Tel: 2207507 www.bestwesterntbilisi.ge www.deloitte.ge www.gmt.ge www.mars.com

38 | Investor.ge APRIL-MAY 2019 Mastercard Sheraton Grand Tbilisi Metechi AE Solar LLC %/&/DZ2I¿FH 2 Leonidze St. /1 G.Tabidze St., Palace Hotel 88 Avtomshenebeli St. (Hualing 129a D. Agmashenebeli Ave., 0102 Premises No.315, Floor 4 20 Telavi St. Kutaisi Free Industrial Zone), Kutaisi Tel: 2922491; Fax: 2934526 Tel: 2900815 Tel: 2772020; Fax: 2772120 Tel: 2300099 www.blc.ge www.mastercard.com www.sheraton.com/tbilisi www.ae-solar.com

Meridian Express BMC Gorgia 15-17 Ketevan Tsamebuli Ave.0103 SICPA Security Solutions Air Astana Airlines JSC 140 Tsereteli Ave. Tel: 2745188 Georgia 5th Floor, Pixel Business Center, Tel: 2960960 www.ups.com 79 Chargali St., 0178 34 Chavchavadze Ave. www.gorgia.ge Tel: 2434580 Tel: 2514999 www.sicpa.com www.airastana.com Microsoft Georgia LLC 34 Chavchavadze Ave. Borjomi Likani International Tel: 2970123 16 Meskheti St., Borjomi Tel: 2292292 www.microsoft.com Spotcoin LLC APM Terminals Poti https://www.borjomilikani.com 13 Shalva Radiani St., 0179 52 Aghmashenebeli St., Poti Tel: 599258539 Tel: 0493 277777 M² Real Estate JSC www.spotcoin.net www.apmterminals.com 29 Chavchavadze Ave. CaspiGroup Ltd. Tel: 2444111 29 Bochorma St. www.m2.ge Tel: 2550818 T&K Restaurants (McDonald’s Aversi Pharma www.caspigroup.com Georgia) 148/2 Aghmashenebeli Ave. 2I¿FH7HFKQRORJLHV6WHHOFDVH 1 Dzmebi Kakabadze St. Tel: 2987860 Dealership Tel: 2921246; Fax: 2251422 www.aversi.ge 4 Freedom Sq., 0105 www.mcdonalds.ge CaucasusTransExpress Ltd. Tel: 2999980, 2688229 10a Tashkent St. ZZZRI¿FHWHFKQRORJLHVJH Tel: 22375716 Baker Tilly Georgia Ltd. www.cte.ge TBC Group Meidan Palace, 44 Kote Abkhazi St. Oracle Nederland B.V. 7 Marjanishvili St. Tel: 2505353; Fax: 2505353 5HSUHVHQWDWLYHRI¿FH Tel: 2272727; Fax: 2228503 www.bakertillyinternational.com Kievskoe Shosse, 22nd km, bld www.tbc.com.ge Caucasus Online LLC 6/1,10881, Moscow, Russia 71 Vazha-Pshavela Ave. Tel: +74956411400 Tel: 2000022 www.oracle.com Bank of Georgia www.co.ge TMC Global Professional 3 Pushkin St. Services Tel: 2444134; Fax: 2983269 Orient Logic Ltd. 6001 Indian School Road NE, Suite www.bog.com.ge 8 Beliashvili St. Channel Energy (Poti) Limited 190, Albuquerque, NM 87110, USA Tel: 2541818 Georgia LLC, By Petrocas Energy Tel: (1 505) 8723146 www.orient-logic.ge Group www.tmcservices.com 52, David Agmashenebeli St., Poti Basis Bank JSC Tel: (995493) 2-7-08-60 1 Ketevan Tsamebuli Ave. Pace International LLC www.petrocasenergy.com Tel: 2922922; Fax: 2986548 Abuladze st. First Lane 8, 0162 Visa International Service www.basisbank.ge Tel: 2914701 Association www.pace.ge 900 Metro Center Boulevard, Foster Château Mukhrani, J.S.C. City, CA 94404, USA Sangebro St. PepsiCo Wimm-Bill-Dann Tel: 599374877 Batumi International Container Tel: 2201878; Fax: 2201878; Village Ponichala, Tbilisi 0165 www.visa.com Terminal www.mukhrani.com Tel: 2475290 11, Baku Street, 6010, Batumi www.wbd.ru Tel: 422 276452 www.bict.ge West Invest Ltd. City & Co. 4 Besiki St. Philip Morris 13a Lortkipanidze St. Tel: 2920921 1 Tabidze St. Tel: 2997275 Tel: 2439001; Fax: 2439005 www.west-invest.ge BDO LLC www.philipmorrisinternational.com 2 Tarkhnishvili Str. Vere Business Centre, 0179 CMC LLC Tel: 2545845; Fax: 2399204 4 Besiki St. ProCredit Bank Willis Towers Watson Ltd. www.bdo.ge 17 M. Lebanidze St. Tel: 2240717 154 Agmashenebeli Ave. www.cmc.ge Tel: 2202222; Fax: 2202222-2226 Tel: 2905509 www.procreditbank.ge www.willis.com BGI Advisory Services Georgia 5XVWDYHOL$YH,,ÀRRU Crowne Plaza Borjomi Radisson BLU Iveria Hotel Tel: 2997292; Fax: 2996615 Baratashvili Str. 9, 1200 Borjomi 1 Rose Revolution Sq. www.bgi.ge Tel: 995 367 220260 Tel: 2402200; Fax: 2402201 www.cpborjomi.com www.radissonblu.com CORPORATE B MEMBERS

Biltmore Hotel Tbilisi School of Tomorrow LLC Adjara Group Hospitality 29 Rustaveli Ave. Crystal, MFO JSC 21, Petre Kavtaradze St. 1, 26 May Sq., 0179 Tel: 2727272 72 Tamar Mepe St. Kutaisi, 4600 Tel: 2233199 Tel: 2300099 http://www.millenniumhotels.com/en/ Tel: 431253343 hwww.st.edu.ge www.adjaragroup.com tbilisi/the-biltmore-hotel-tbilisi/ www.crystal.ge

APRIL-MAY 2019 Investor.ge | 39 AmCham Company Members as of April 2019 NEWS

Dio Ltd. Georgian Express Hualing International Special M & M - Militzer & Munch 12th Km David Agmashenebeli Alley 105, Tsereteli Avenue, 0119 Economic Zone Georgia N3, Parsadani St. Tel: 2696060 25 Apt. 34/36 Kobuleti St. 39 Ketevan Tsamebuli Ave. Tel: 2361112 www.dhl.com Tel: 591005900 Tel: 2748240, 2748941 www.dio.ge www.hualing.cn http://ge.mumnet.com

Domson’s Engineering Georgian Hospitality Group Hydrolea LLC 8a Sanapiro St. 22 Peritsvaleba St., 0103 11 A. Apakidze St. Maqro Construction Tel: 2050303 Tel: 2987789 Tel: 790420015 22 Panjikidze St. www.domsons.com www.ghg.ge www.hydrolea.com Tel: 2000909 www.maqro.ge

Dorche Branch Prepabrik Iapi Ve ICS Ltd. TNT Agent in Georgia 25 Agmashenebeli Ave. Inshaat Sanai Tijaret JSC Georgian Industrial Group LLC Tel: 2910220 Maqro Food “Dinehall” 026/13 Ilia Chavchavadze Ave. GIG Plaza, 14 Gazapkhuli St., 0177 www.tnt.ge 28 Rustaveli Ave. Tel: 593472419 Tel: 2210187 www.dorce.com.tr Tel: 2001616 www.gig.ge www.dinehall.ge ILF Beratende Ingenieure ZT Duty Free Georgia GmbH Branch in Georgia UGÀRRU%HVLNL6W 15 Tamar Mepe Ave. Georgian Integrated Systems Mercure Tbilisi Old Town Besiki Business Center Tel: 2199453 (GiS) 9 Gorgasali St., Old Tbilisi, 0105 Tel: 2430150 www.ilf.com 2I¿FH$EDVKLG]H6W Tel: 2006060 www.dfg.ge Tel: 2243724 www.mercure.com www.gis.ge Interco Travel Group Efes Brewery in Georgia - 117 I. Abashidze St., 0179 Lomisi JSC Tel: 2294343 0*/DZ2I¿FH//& Village Natakhtari, Mtskhta Region www.interco.travel WKÀRRU3L[HOEXLOGLQJ Tel: 2357225 Geo Steel LLC 34 Chavchavadze Ave., 0179 www.natakhtari.ge 36 Davit Gareji St., Rustavi, 3700 Tel: 2206633 Tel: 2243794 www.mglaw.ge www.geosteel.com.ge International Black Sea ExpoGeorgia JSC University 118 Tsereteli Ave., 0119 David Agmashenebeli Alley 13 km, Tel: 2341100 2, 0131 Mgaloblishvili Kipiani Dzidziguri www.expogeorgia.ge Globalink Logistics LLC Tel: 2595005 (MKD) 60 Sh. Nutsubidze St., 0186 www.ibsu.edu.ge 2I¿FH9D]KD3VKDYHOD$YH Tel: 2000238, 2208147 Tel: 2553880 www.globalinkllc.com www.mkd.ge Gebrüder Weiss LLC Isbank Georgia JSC Airport Adjacent Territory, 140/B Agmashenebeli Ave., 0102 Kakheti Hwy Tel: 2310515 Tel: 2710011 www.isbank.ge Mina JSC www.gw-world.com *ORULD//& 7LÀLV3DODFH 3 Gorgasali St., 0105 4 Besiki St. Tel: 2000245 Tel: 2449981/82/83; Fax: 2449980 JTI Caucasus www.mina.com.ge Geocell ZZZWLÀLVSDODFHJH VII Floor, Pixel Business Center, 3 Gotua St. 34 Chavchavadze Ave. Tel: 2770100, ext. 7435; Tel: 2604111 Fax: 2770119 www.jti.com Mira Hotels Ltd. www.geocell.ge GM Capital LLC Brose Street Turn,Old Tbilisi 2 Tarkhnishvili St., 0179 Tel: 2242244/55/88 Tel: 2912626 www.riverside.ge www.gmcapital.ge Kordzahia, Jgenti Law Firm GeoEngineering LLC 10 Petriashvili St. 15a Tamarashvili St. Tel: 2921878 Tel: 2311788; Fax: 2311787 www.kjlaw.ge www.geoengineering.ge Murphy Bridge Gvinadze & Partners LLC 8th Floor, Building 6, Saakadze Sq, 44 Kote Abkhazi St, 0105 0160 Legal Partners Associated LLC Tel: 2438970, Fax: 2438971 Tel: 2007107 Geomill LLC 2I¿FH%HVLNL%XVLQHVV&HQWHU www.gvinadzeandpartners.ge www.murphyshipping.com 4, Chirnakhuli St. 4 Besiki St. 0108 Tel: 2400000 Tel: 2200203; Fax: 2250458 www.geomill.ge www.lpa.ge MyGPS HeidelbergCement Georgia 6 Bokhua St., 0159 21 Al.Kazbegi Ave. Georgian Airways Liberty Bank JSC Tel: 2180180 12 Rustaveli Ave. Tel: 2474747 74 Chavchavadze Ave. www.mygps.ge Tel: 2999730; Fax: 2999660 www.heidelbergcement.ge Tel: 2555500; Fax: 2912269 www.georgian-airways.com www.libertybank.ge

National Center for Dispute Georgian Beer Company Herbalife Nutrition Luca Polare Resolution 3311 Saguramo, Mtskheta District Bld. 4a Tamarashvili St., 0116 54 Oniashvili St. 4/7 Rustaveli St., Rustavi Tel: 2437770 Tel: 2202929 Tel: 2990399 Tel: 2193406 www.geobeer.ge www.herbalife.com www.lucapolare.com www.ncdr.ge

40 | Investor.ge APRIL-MAY 2019 NEWS

NCC Ltd. Regus, Georgian Branch, Tbilisi Terabank JSC American Friends of Georgia 9, Erekle II turn Business Centre 3 Ketevan Tsamebuli Ave. 77 Nutsubidze St. Tel: 2725088 Level 4, 1 Tabidze St., 2 Leonidze Tel: 2507700 Tel: 2397174; Fax: 2388495 www.ensisi.ge St.,0105 www.terabank.ge www.afgeorgia.org Tel: 2900039 www.regus.com Terma JSC CARE International in the Nexia TA Floor 1, 10 Budapest St. Caucasus 4th Floor, 19 David Gamrekeli St., Tel: 599554794 37 Tsagareli St., 0162 0160 Rentals LLC www.terma.ge Tel: 2291941 Tel: 2242559 46 Rustaveli Ave.; 36 Griboedov St. www.care-caucasus.org.ge www.nexia.ge Tel: 2454567 / 2996412 www.rentals.ge Terrace Hotel & Restaurant CENN 7 Polikarpe Kakabadze St. 27 Betlemi St., 0105 Tel: 2999001 Nodia, Urumashvili & Parnters Tel: 2751903 www.theterracetbilisi.com 2I¿FH,9%ORFN Resolution Insurance Brokers, www.cenn.org 71 Vazha-Pshavela Ave. Georgia LLC Tel: 2207407 61, Gorgasali St. www.nplaw.ge Tel: 2936305 Theco Ltd. www.rib.ge 16 Chikovani St. (CiDA) Civil Development Tel: 592107515 Agency www.tbilisia.ru 9/1 Pirosmani St., Rustavi, 3700 Nutrimax Ltd. Tel: 341258822 68a Rustavi Highway, 0165 Rooms Hotel www.cida.ge Tel: 2305335 14 Merab Kostava St. Transporter LLC www.nutrimax.ge Tel: 2020099, 2730099 113b Beliashvili st. www.roomshotels.com Tel: 2147171 Europe Foundation http://www.transporter.com.ge 3 Kavsadze St. Tel: 2253942; Fax 2252763 (ext. 112) Paine Stevens LLC www.epfound.ge 1 Ivane Javakhishvili Sqr. RSM Georgia LLC University of Georgia Tel: 2903211, Fax: 2903291 85 Paliashvili St., 0162 77a Kostava St. www.painestevens.com Tel: 2558899 Tel: 2552222 Free University of Tbilisi www.rsm.ge www.ug.edu.ge 140 David Agmashenebeli Alley Tel: 2200901 www.freeuni.edu.ge PASHA Bank Georgia JSC Veziri Ltd. 15, Shota Rustaveli Ave. Sakcable JSC 7 Luarsab Andronikashvili St., 0131 Tel: 2265000 Suite 414, 19 Gamrekeli St. Tel: 2251614 Georgia Red Cross Society Tel: 2221418 www.pashabank.ge www.veziri.net 15 J. Kakhidze St. www.sakcable.ge Tel: 2961092 www.redcross.ge

Policy and Management Vinotel (“Aigvinissakhli”) LLC 4 Elene Akhvlediani Ascent Consulting Group (PMCG) Silknet Ltd. Good Governance Initiative Tel: 2555888 $JKPDVKHQHEHOL$YHWKÀRRU 95 Tsinamdzgvrishvili St. Pixel Center, 8th Floor, 34, www.vinotel.ge Tel: 2921171 Tel: 2910345; Chavchavadze Ave. www.pmcg.ge www.silknet.com Tel: 2243111 www.ggi.ge Wings and Freeman Capital Green Building, 6, Marjanishvili St. Primera Golf & Residence SRG Investments LLC Tel: 2940051; Fax: 2940053 QSI International School of 36, Khetagurovi St., 0102 D&KDYFKDYDG]H$YHUGÀRRU www.wfcapital.ge Georgia Tel: 2200036 Tel: 2253581 Village Zurgovani, Tbilisi www.silkroad.ge Tel: 2537670; Fax: 2322607 Wissol Georgia www.qsi.org 74b Chavchavadze Ave. Publicis Ltd. Tel: 2915315; Fax: 2915615 17 V. Jorbenadze St. T3Concept Ltd. www.wissol.ge San Diego State University - Tel: 2745672; Fax: 2745671 13 Radiani St., 0179 Georgia www.publicis.ge Tel: 2434455 5 Kostava St. 0108 www.turner.com, www.t3concept.ge Zarapxana LLC Tel: 2311611 15 Lubliana St. www.georgia.sdsu.edu Tel: 2510001 Qebuli Climate www.zarapxana.ge 101, Tsereteli Ave. TBC Leasing JSC Transparency International Tel: 2356201 8 Bulachauri St., 0161 Georgia www.qebuli.ge Tel: 2272727 61 Agmashenebeli Ave. 0102 www.tbcleasing.ge NON-PROFIT ORGANIZATIONS Tel: 2932129 www.transparency.ge

Rakeen Development LLC Agricultural University of Pixel Business Center, Tbilisi View Georgia Union of Busines Ladies 34 Chavchavadze Ave. 4a, Freedom Sq. 140 David Aghmashenebeli Alley 8 D. Gamrekeli St., 0194 Tel: 2933393; Fax: 2933993 Tel: 2999980 Tel: 2594901 Tel: 2308661 www.rakeen.ge www.tbilisiview.ge www.agruni.edu.ge www.ubl.ge

APRIL-MAY 2019 Investor.ge | 41 NEWS

AmCham Member Cocktails AMCHAM GEORGIA HOSTED A COCKTAIL RECEPTION AT DINEHALL ON MARCH 7. AMCHAM GEORGIA PRESIDENT MICHAEL COWGILL GREETED THE GUESTS AND ANNOUNCED ONGOING ISSUES OF AMCHAM AS WELL AS THE UPCOMING EVENTS. MEMBERS USED THE OPPORTUNITY TO RECONNECT WITH FRIENDS, COLLEAGUES AND FELLOW REPRESENTATIVES OF MEMBER COMPANIES

42 | Investor.ge APRIL-MAY 2019 NEWS

APRIL-MAY 2019 Investor.ge | 43 NEWS

Board Of Directors 2019

R. MICHAEL COWGILL PRESIDENT

SARAH WILLIAMSON IRAKLI BAIDASHVILI LASHA GOGIBERIDZE FIRST VICE-PRESIDENT VICE-PRESIDENT & TREASURER DIRECTOR

BADRI JAPARIDZE STEVE JOHNSON OTAR KIPSHIDZE DIRECTOR DIRECTOR DIRECTOR

AmCham Executive Director Writers George Welton Nino Bakradze, Lika Jorjoliani, Elene Tabagari, Maddeline Undis, Sally White Assistant Editor Special thanks to all the contributors to the magazine, AmCham Georgia staff, Ari Neumann and all our contributors. Copy Editor This magazine would not be possible without your help. Alexander Melin Marketing & Promotion Nini Kapanadze Promotional Design Levan Baratashvili Magazine Design and Layout Giorgi Megrelishvili 44 | Investor.ge APRIL-MAY 2019 NEWS

SERGI KOBAKHIDZE KETTI KVARTSKHAVA CHRIS SCHLUETER DIRECTOR DIRECTOR DIRECTOR

SANDRO SHELIA BETSY HASKELL, DIRECTOR FOUNDING ADVISOR

GEORGE WELTON ELIZABETH ROOD EXEC. DIRECTOR EX-OFFICIO MEMBER

AmCham Georgia Patron Members:

© The American Chamber of Commerce in Georgia, 2018 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 APRIL-MAY 2019 Investor.ge | 45

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