WASTE NOT, WANT NOT WILL SOURING RUSSIAN-TURKISH COMFORT FOOD: AN RELATIONS BE A BOON FOR INTRODUCTION GEORGIA? 2016 B.-MAR. E Investor.geA Magazine Of The American Chamber Of Commerce In Georgia ISSUE 49 F EU Visa Liberalization: Georgia’s Ticket to Europe FEBRUARY-MARCH/2016 • Investor.ge | 3 Investor.ge CONTENT 6 Waste Not, Want Not There is a new effort to clean up illegal dumps and create modern waste management in georgia. 8 EU Visa Liberalization: Georgia’s Ticket Helena Bedwell speaks with producers, economists and government officials about what Brussels’ visa-free regime could mean for the Georgian economy. 11 Will Souring Russian-Turkish Relations Be a Boon for Georgia? Investor.ge spoke to government officials and economists to see if the georgian economy could benefit from the 14 crisis. 14 Winter in Georgia: Where to go, with skis or without Investor.ge has complied basic information about Georgia’s four main skiing destinations – and some great sites for day trips. 18 Georgia Developing New Incentives to Attract Foreign Film Companies The economy ministry is betting on financial and technical assistance to bring more film shoots to Georgia. 22 Building the Future: An Overview of Major 18 New Projects Planned In Tbilisi The Tbilisi horizon is constantly changing, and with More major projects underway the skyline of Georgia’s capital could look quite a bit different in a few years. 24 Georgia’s Hydro Boom New regulations and better infrastructure are attracting more investors to Georgia. 27 The Keepers of the Dream: Abastumani’s Dedicated Astronomers The oldest astronomical observatory in the South Caucasus is hidden on the top of the mountain above the 22 spa city of Abastumani. 31 Comfort Food: An Introduction Amy Binder, co-owner of Ronny’s Pizza, lays out a new kind of dinner party to enjoy in 2016. 34 BP Georgia’s Paralympic Champions BP Georgia is sponsoring three paralympic athletes for the 2016 games in Rio ...... 38 38 NEWS 4 | Investor.ge • FEBRUARY-MARCH/2016 FEBRUARY-MARCH/2016 • Investor.ge | 5 their waste in their backyards.” “What makes the recycling sector WASTE NOT, Gorkhelashvili is the communica- very difficult to develop is the absence of tions and outreach team manager for systemic waste separation, and so busi- the four-year Waste Management Tech- nesses need to find sources of recyclable WANT NOT nologies in Regions (WMTR) program, waste based on private arrangements financed by USAID and supported by the either with institutions or landfills,” she Caucasus Environmental NGO Network. said, noting that mixed waste is not good THERE IS A NEW EFFORT TO The program focuses on helping for recycling. CLEAN UP ILLEGAL DUMPS Georgia improve its waste management “It is very hard to say how profitable AND CREATE MODERN and recycling programs. recycling is, or could be in Georgia. For WASTE MANAGEMENT Gorkhelashvili said there have been this, we need accurate figures for waste IN GEORGIA, THE improvements over the years, and the production in the country. However, it WASTE MANAGEMENT trend is being reinforced by Georgia’s should be noted that there are small/ TECHNOLOGIES IN obligations under the EU-Georgia As- medium-sized companies that operate REGIONS (WMTR) sociation Agreement. in the waste-recycling sector in Georgia PROJECT. INVESTOR.GE Part of that trend is the new Waste and are profitable.” SPOKE WITH RUSUDAN Management Code, which entered into The WMTR program has developed GORKHELASHVILI, THE force in 2015, she said. The new code an association of different-sized com- COMMUNICATION obligates municipalities to develop plans panies involved in waste management AND OUTREACH TEAM for municipal waste management. It also in Georgia, and is working with them to MANAGER FOR THE introduces fines for littering and illegal promote integrated waste management PROJECT, ABOUT HOW dumping. principles at central and local levels to THEIR WORK WILL To date, the WMTR has cleared three support them in their operation, Gork- HELP CLEAN UP THE “spontaneous” dumpsites in Adjara and helashvili noted. COUNTRYSIDE AND PUSH four in Kakheti, the program’s focus ar- FOR MORE SUSTAINABLE eas. It has also planted 380 trees at illegal Youth – Agents for CHANGE RECYCLING. dumpsites in the two regions. The WMTR program is also working The WMTR program has been work- closely with the youth to educate them ing closely with the Ministry of Environ- about recycling. AN EXPENSIVE PROBLEM ment and Georgia’s Solid Waste Man- “The program’s most important target llegal landfills in Georgia are a agement Company, she added, to create audience is youth, in terms of raising very extensive problem due to the international-standard regulations on awareness on integrated waste man- Icountry’s socio-economic condition, building, operating and closing landfills. agement—Reduce, Reuse, Repurpose, Rusudan Gorkhelashvili said. Gorkhelashvili noted that the pro- Recycle—principles,” she said. “In the regions, funds allocated to gram’s objectives are based on reducing The youth outreach also includes ac- waste management are very limited. waste so there is less to go to landfills. tivities gear to engage children at school Waste management—collection, trans- and in the summer. portation, disposal or recycling, and REDUCE, REUSE, RECYCLE “We work with school students monitoring of waste—is not a cheap Promoting recycling is an important through competitions on waste-related is- service,” she said, adding that while the part of the program. sues, seminars, open classes, workshops, situation has improved in Tbilisi, it is still “Unfortunately, there are no recy- training, as well as eco-camps, which are a problem outside the capital. cling centers in Tbilisi where people can one of our most important activities for “Illegal dumping exists because, take their recyclable waste; there are only raising awareness and education,” she when there’s no infrastructure, i.e. waste campaigns, from time to time, carried out explained. bins, and when waste is not collected, by book stores,” she said, adding that “The youth, who are agents of people have no choice other than creating CENN also has a recycling campaign, change, are the primary target of our spontaneous illegal dumpsites or burning the Green Office Campaign. project.” 6 | Investor.ge • FEBRUARY-MARCH/2016 FEBRUARY-MARCH/2016 • Investor.ge | 7 HELENA BEDWELL eorgia lacks common borders with the EU VISA EU. But the new visa-free regime Brus- Gsels plans to grant the country, together Liberalization: with the 2014 free trade agreement, could help Georgia build new bridges and bolster increasing Georgia’s Ticket trade relations. BREAKING AWAY FROM THE RUSSIAN MARKET For Russian market has traditionally been the DECEMBER 18 WAS A main focus for Georgian producers. BIG DAY FOR GEORGIA: Trade between the two countries dwindled fol- THE EUROPEAN lowing Moscow’s 2006 trade embargo, although the UNION REAFFIRMED Russian market has slowly opened up to Georgian ITS COMMITMENT TO producers since 2012. GEORGIA AND UKRAINE The breakthrough in trade relations with Rus- siah as been a welcoming bolster for Georgian BY CONFIRMING THEIR trade. But it has come with fears that the Georgian INTENTION TO GRANT economy could once again grow dependent on CITIZENS THE RIGHT Moscow. TO OBTAIN VISAS FOR Pundits hope, however, that the new benefits SHORT-TERM BUSINESS, from EU’s visa-free regime and the Deep and Com- TOURIST OR FAMILY prehensive Free Trade Agreement (DCFTA) will TRIPS. BLOOMBerg’s help Georgia build stronger trade relations outside HELENA BEDWELL SPEAKS of Russia and the former Soviet Union. WITH PRODUCERS, Roman Gotsiridze, an expert and former central banker of Georgia, believes the wider EU market ECONOMISTS AND will give Georgia more opportunities to grow and GOVERNMENT OFFICIALS start mass production.The most important benefits ABOUT What Brussels’ of all, he noted, could be the visa-free regime’s VISA-FREE REGIME power to end the illegal immigration of Georgians COULD MEAN FOR THE abroad and kick-start affordable tourism. GEORGIAN ECONOMY. INTERNATIONAL MARKETING FOR GEORGIA’s FAMOUS CUISINE In the first six months of the Georgia-EU trade agreement, Georgian exports of fruit juices to the EU more than tripled, according to a DCFTA fact sheet. Under the free trade agreement, Georgia has started exporting some products to the EU that it did not export to it before, such as acyclic alcohols and synthetic filament yarns. Georgia’s Ministry of Agriculture, which has a significant role as a connecting bridge to the 8 | Investor.ge • FEBRUARY-MARCH/2016 FEBRUARY-MARCH/2016 • Investor.ge | 9 EU market, was asked whether any and imports premium-class Georgian Russia, including political risks. Also, fluctuations have been detected in trade products to France and Monaco. Cre- if we totally concentrate on Russia, we numbers. ated by the Sopromadze family, it offers won’t have enough for other markets.” “The EU market is not a virtual real- the French market of 80 million sauces, ity for us anymore; as much as 35% of juices and other 25 other types of prod- REASSURING INTERNATIONAL total trade is with the EU market right ucts that have already established a INVESTORS now, an increase as compared to previous reputation in France. The Director of Georgia’s National years,” Levin Davitashvili, the Deputy Khatuna Sopromadze, a co-founder Investment Agency, Giorgi Pertaia, said Minister of Agriculture, said in an inter- of the company, tells me that at first EU visa liberalization will also pave view in Tbilisi in December. “Hazelnuts, it was very difficult to establish local the way for more foreign investors in contacts and build con- Georgia. Pundits hope, however, that the new sumer trust. She added He noted that it will help foreign benefits from EU’s visa-free regime that Georgian produc- businesses perceive Georgia as a stable, ers were equally hard successful, Western-oriented country.