facebook.com/ georgiatoday Issue no: 888/49 • OCTOBER 18 - 20, 2016 • PUBLISHED TWICE WEEKLY PRICE: GEL 2.50 Dimitry Kumsishvili visiting reconstruction works in Gudauri In this week’s issue... Tbilisi - Ashkhabad Direct Flights to Be Launched as Part of Growing Cooperation PAGE 2 Khachapuri Index, Exchange Rate Dynamics and International Tourism ISET PAGE 4 Tbilisi Fashion FOCUS Week ON BUILDING BETTER Gudauri gets longed for water is Back system amid infrastructure PAGE 7 development works PAGE 1-2 Electricity Market Watch GALT & TAGGART PAGE 8 Bakradze Appointed as Georgian Former Diplomat Hopes Era of Messiahs Soon to Ambassador to USA End in Georgia POLITICS PAGE 11 existing relationships and the perspectives of BY THEA MORRISON strengthening cooperation between Georgia and its strategic partner, the United States. Batumi International Beach Gegeshidze’s replacement was announced by he President of Georgia, Giorgi Prime Minister of Georgia, Giorgi Kvirikashvili, Rugby Festival Short-listed for Margvelashvili, appointed David in early September. Davit Bakradze was hosted by President Bakradze, State Minister for Euro- The PM said that Bakradze had “excellent Margvelashvili Rhino Grassroots Award pean and Euro-Atlantic Integration, working experience as an ambassador among not infl uence the decision-making process.” The as the Georgia’s new Ambassador NATO member states, has huge experience President assessed his comments as “an incom- TExtraordinary and Plenipotentiary to the United regarding Georgia’s Euro-Atlantic integration petent statement from an unqualifi ed ambas- States of America (USA) on Wednesday. and his personal characteristics will also allow sador.” Bakradze, 41, replaced former ambassador to him to establish important relations.” Gegeshidze fi rst received formal criticism dur- the USA, Archil Gegeshidze, and will begin his Gegeshidze occupied the ambassador’s post ing the October 2015 visit of the Georgian Pres- new duties on December 5, 2016. in March, 2013. This July he was summoned to ident to New York and Washington where he The President hosted the newly appointed the Foreign Ministry of Georgia to provide an accused the Head of the Georgian diplomatic Ambassador at the Presidential Palace. explanation over his statement that pro-Russian mission in the USA of failing to attend meetings At the meeting, the offi cials discussed the forces are “present in the ruling team but do and forgetting correct diplomatic etiquette. SPORTS PAGE 12 Prepared for Georgia Today Business by Markets Asof14ͲOctͲ2016 STOCKS Price w/w m/m BONDS Price w/w m/m BankofGeorgia(BGEOLN) GBP30.03 Ͳ1,3% +2,6% GEOROG04/21 105.38(YTM5.39%) Ͳ0,1% Ͳ0,1% GHG(GHGLN) GBP3.28 +3,1% +9,3% GEORG04/21 111.98(YTM3.93%) Ͳ0,1% Ͳ0,2% TBCBankGroup(TBCGLN) GBP12.58 Ͳ0,6% +9,3% GRAIL07/22 112.50(YTM5.20%) Ͳ0,2% Ͳ0,3% BGEOLN07/23 103.25(YTM5.42%) Ͳ0,4% +0,1% COMMODITIES Price w/w m/m CrudeOil,Brent(US$/bbl) 51,95 +0,0% +13,3% CURRENCIES Price w/w m/m GoldSpot(US$/OZ) 1251,03 Ͳ0,5% Ͳ5,4% GEL/USD 2,3763 +1,8% +2,9% GEL/EUR 2,6050 +0,7% +1,1% INDICES Price w/w m/m GEL/GBP 2,8963 Ͳ0,5% Ͳ5,3% FTSE100 7013,55 Ͳ0,4% +5,1% GEL/CHF 2,3995 +0,5% +1,1% FTSE250 17980,18 Ͳ0,1% +2,0% GEL/RUB 0,0377 +0,5% +6,5% DAX 10580,38 +0,9% +1,9% GEL/TRY 0,7685 +0,4% Ͳ0,9% DOWJONES 18138,38 Ͳ0,6% +0,6% GEL/AZN 1,4887 +1,6% +6,3% NASDAQ 5214,16 Ͳ1,5% +0,8% GEL/AMD 0,0050 +2,0% +2,0% MSCIEMEE 129,20 Ͳ2,3% +1,1% GEL/UAH 0,0921 +1,9% +5,0% MSCIEM 897,03 Ͳ1,9% +1,3% EUR/USD 0,9113 +2,1% +2,5% SP500 2132,98 Ͳ1,0% +0,3% GBP/USD 0,8205 +2,0% +8,6% MICEX 1966,39 Ͳ0,7% Ͳ1,9% CHF/USD 0,9903 +1,3% +1,7% MSCIFM 2506,88 Ͳ0,9% Ͳ0,2% RUB/USD 62,9573 +1,0% Ͳ3,4% GTIndex(GEL) 908,54 Ͳ +8,0% TRY/USD 3,0903 +1,3% +3,7% GTIndex(USD) 768,04 Ͳ +6,9% AZN/USD 1,6090 +0,4% Ͳ1,9% GEORGIA TODAY 2 BUSINESS OCTOBER 18 - 20, 2016 New Water Supply System & Infrastructure Transformations for Gudauri Reconstruction works are expected to BY NINO GUGUNISHVILI reach completion in November. As Dimitry Kumsishvili, First Vice Pre- mier of Georgia, noted during his trip he Georgian Ministry for to Gudauri, the overall investment Regional and Infrastruc- assigned for the development of the tural Development is work- popular mountain resort is GEL 170 -180 ing on a water supply system million. rehabilitation for Gudauri Further to the water system rehabili- TSki Resort and, for the fi rst time in taton, infrastructural changes are also Gudauri history, it is said the place will in line for Gudauri, to be realized accord- now have enough water to satisfy both ing to the recommendations and Master locals and visitors. Plan implemented by the Ecosign Moun- Lack of water was a problem that tain Resort Planners Company (Canada), Tbilisi - Ashkhabad remained unsolved for the many years which highlights the areas that need to of the resort’s existence, yet which never be improved for the better functionality affected the resort’s popularity. of the resort in order to boost its tour- The fi rst phase of the project, being istic potential. handled by the United Water Supply The new development plan is seen as Company of Georgia, entails the con- a basis for a long-term strategy accord- Direct Flights to Be struction of drinking water reservoirs, ing to which Gudauri will develop with with an allocated government grant of new ski tracks, ski lifts, hotels and resi- over GEL 4 million. dential areas. Launched as Part of Growing Cooperation day and Sunday following an agreement The fi rst steps towards mutual coop- BY NINO GUGUNISHVILI reached between the two countries in eration were made during the offi cial June, when a memorandum of coop- visit of Giorgi Margvelashvili, President eration between the aviation authorities of Georgia, to Ashkhabad in 2014. wice weekly fl ights from of Georgia and Turkmenistan was signed. Today, the two countries cooperate Tbilisi to Ashkhabad are The agreement enables the two par- in principle in petroleum trade areas, to be launched from the ties to have direct fl ights not only to while this year, Georgia offered Turk- beginning of November. the capitals of Georgia and Turkmeni- menistan the use of Georgian sea ports The Boeing-737 and Boe- stan, but to any other direct destinations for the transportation of goods to Ting-757 aircrafts will fl y every Wednes- within the territories of both countries. Europe. GEORGIA TODAY OCTOBER 18 - 20, 2016 BUSINESS 3 ‘Winter in Georgia’ Promo Honorary Tbilisi Wins at International Citizens Awarded Tourism Festivals project and Agmashenebli Avenue play- dancer; Robert Gogolashvili, folklore BY NINO GUGUNISHVILI ing an integral part in the festival, specialist; Lali Badurashvili, actress; together with an older part of the city, Alexander Chivadze, Georgian football Legvtakhevi, where the 19th century player; former Tbilisi Dinamo captain, he fi rst day of the city fes- was brought back to life through show- Giorgi Kvesitadze - Biologist; Guela tival Tbilisoba was rounded ing the old professions that were once Mukhashavria, Doctor; Nodar Mgalob- off with a gala dinner and popular and existed in Tbilisi," Davit lishvili, actor; Levan Tchachiashvili, concert at the Ilia Garden Narmania, the Mayor of Tbilisi, said in doctor; Dimitri Eristavi, painter; Liana on Agmashenebli Avenue, his opening speech. Isakadze,violinist; Djemal Chkuaseli, Twhere representatives from the fi elds of Tbilisi in Georgian Cinema was chosen singer and head of Erisioni folklore art, sports and science gathered along- as a leitmotif of the Honorable Citizen ensemble; and Revaz Gabriadze, Puppet side state offi cials at the annual Honor- of Tbilisi award ceremony and the guests Theatre director, writer and painter, were able Citizen of Tbilisi award ceremony. had an opportunity to see footage from all awarded as Honorary Citizens of The ceremony dates back to 1979 when Georgian fi lms on a huge screen on stage. Tbilisi. it was organized for the fi rst time, ever As per tradition, this year many famous A special award for the highest artistic after a traditional event held during the Georgian actors and actresses, doctors, achievement was given to the Georgian Tbilisoba festival. sportsmen, singers, and scientists ensemble “Kartuli Khmebi” (Georgian "This year Tbilisoba gained in size received an award. Voices) by Micheil Giorgadze, the Min- considerably, with new venues and loca- Tamar Skhirtladze, Georgian actress; ister of Culture and Monument Protec- tions added, especially the new Tifl is Pridon Sulaberidze, famous Georgian tion of Georgia. “There are ongoing internet marketing BY NINO GUGUNISHVILI campaigns promoting the winter season in Georgia in 12 countries worldwide, with TV advertising campaigns in romotional footage ‘Winter Ukraine, Kazakhstan and Russia,” Giorgi in Georgia,’ produced by the Chogovadze, Head of National Tourism Georgian National Tourism Administration as he introduced the Administration (GNTA) of GNTA’s winter marketing strategies. Georgia won prestigious He added that spring and summer tour- Pawards at a variety of International Tour- ist seasons are also promoted in 16 coun- ism Festivals in Riga, Latvia (Main prize tries, with a massive campaign on Tri- of RIGA TOURFILM Festival), Zagreb, pAdvisor. Croatia (Special Prize of Zagreb TOURFILM Festival) and a Silver Prize See the promo here: at Baku International Tourism Film Fes- https://www.youtube.com/ tival in Azerbaijan. watch?v=5imZlN0EllU\ GEORGIA TODAY 4 BUSINESS OCTOBER 18 - 20, 2016 THE ISET ECONOMIST A BLOG ABOUT ECONOMICS AND THE SOUTH CAUCAUS www.iset-pi.ge/blog The ISET Policy Institute (ISET-PI, www.iset-pi.ge) is an independent think-tank associated with the International School of Economics at TSU (ISET).