Transcript Document
Investment opportunities in Georgia
Heidi Eterovic, UNDP Georgia
Sophia Kenchoshvili, Georgian National Investment Agency
Country overview:
Population: 4.6 mln
Capital: Tbilisi
Area: 69,700 sq km (26,911 sq miles)
Life expectancy: 69 years (men), 77 years
(women) (UN)
Monetary unit: Georgian Lari (GEL)
GEL/US$: 1.6500, GEL/EUR: 2.1264
2008 GDP: US$ 12.8 bn
2008 GDP per capita(PPP): US$ 4,851
Real GDP Growth: 2% in 2008, 12.4% in 2007,
9.4% in 2006 and 9.6% in 2005
Inflation rate (e-o-p): 5.5%
Source: CIA Fact book, Dep. of Statistics
Why Georgia?
FDI and export promotion #1 priorities of the government
Favorable conditions for business: # 19 by Ease of Doing Business
Strategic location, and liberal trade regimes
Growing ties to the EU
Opportunities in investment and sourcing.
Investment sectors:
Energy sector: government support to renewables
Agriculture sector: organic production, processing
Agriculture sector: sourcing, water, wine
Education, technical consulting and services
State Program: Renewable Energy 2008
• List of 87 sites, capacity ranging from 5 mw- 60 mw
• Investors interested are required to submit a standard application form
• Will be available for other investors for 30 day period
• Bank guarantee in the amount of US 170, 000 per mw of prospective capacity.
• The land will purchased at a nominal price
• Electricity generated can be sold either domestically or abroad.
Export Markets:
•The Georgian power grid is connected to the grids of all neighboring countries and can work in
synchrony with Russia and Azerbaijan
•Once the HVTL Armenia-Georgia line becomes operational, Georgia will have the ability to export
electricity not only to Armenia, but also to Iran
•Prior to that, Turkey and, to a lesser extent, Azerbaijan and Russia, are the most attractive markets
for electricity exports
•Turkey is the most attractive market to export electricity with the existing 220kV transmission line and
DC link – no synchronisation required. Furthermore, once the construction of the 400-500kV
transmission line is completed (due tentatively in 2011) capacity for export will increase drastically
Agriculture sector: 100 new enterprises in rural areas
State will undertake obligation to develop road and amelioration infrastructure
On preliminary stage collection of 100 lots of land an competitive selection of investors will be
launched
At the same time upon specific request of investor selection of land necessary for creation of such
enterprise will take place
Size of land lot exceeds or matches 200 ha and lot could consist of different partials
Criteria for selection:
Payment of maximal price for land partial
The best investment conditions among the candidates
Conditions for the winners:
Payment of maximal price and implementation of investment project
In standard case enterprise shall be created during 1 year
Investor pays 20 % of Price
In the investor meets all the contractual demands, rest 80% shall not be paid
Poti Free Industrial Zone: The first industrial zone in the Caucassus region
Location: adjacent to the Poti Sea Port – largest port on the Black Sea
Total Free Zone Area: 300 ha with water frontage of Rioni River and Black Sea on two sides
Logistics: well connected to the highways, railroads and international Tbilisi and Batumi Airports
Key investment sectors:
Advantages of the FIZ in Poti:
Manufacturing
Competitive rates of lease of land, warehouse and
container storage areas
100% ownership of companies operating in PFIZ
No foreign exchange controls
100% exception from profit tax
100% capital and profit repatriation
No restriction on hiring expatriates
Exempt of VAT payment on import and export of goods
No trade barriers of quotas
Low cost of energy
Small/medium enterprises
Warehouse and container
storage
Transport and logistics
High tech industry
Raw material industry
Storage and trade
Maintenance and Reconditioning
Contacts:
Sophia Kenchoshvili: [email protected]
Heidi Eterovic: [email protected]
www.investingeorgia.org
www.undp.ge
www.agro100.ge
www.minenergy.gov.ge
www.economy.ge
www.investmentguide.ge
Thank You!