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1. WHEAT SUPPLY PROBLEMS “IN THE PROCESS OF REGULATION”, SAYS PRIME MINISTER
   (Daily News: October 25, 2006)

   Prime Minister Zurab Nogaideli has acknowledged at a government meeting today that due to suspension of transport links and imposing sanctions by Russia, Georgia has faced problems with the supply of a number of products, including wheat. The Prime Minister says the country has encountered some “logistics problems” for the past 20-25 days, which currently are in the “process of regulation”.

2. COMMERCIAL OPERATOR OF ENERGY SYSTEM SINGS ELECTRICITY BARTER EXCHANGE DEALS WITH IRAN AND AZERBAIJAN
   (Daily News: October 25, 2006)

   Georgia will be able to receive electricity in case of necessity under a barter exchange deal with Iran and Azerbaijan, Bidzina Chkonia, the director general of the commercial operator of the energy system, has said today. The operator, which has agreements with all energy distributors, intends to employ the system to provide an energy balance in the energy system.

3. EXPECTED AND UNEXPECTED INITIATIVES
   (Weekly Press Digest: October 22, 2006)

   Early in the week, the press reports focused on the statement of the EU Council of Ministers made on the Georgian-Russian relationships. The statement was issued in Luxemburg on October 17.

4. POLITICAL COMPROMISES
   (Weekly Press Digest: October 15, 2006)

   The UN Security Council has made this week a resolution on Abkhazia. The country is still under the impression of local election outcome.

5. OUTLOOK FOR ALTERNATIVE ENERGY SOURCES CONSIDERED
   (Daily News: October 11, 2006)

   The Georgian government has declared it does not expect Russia will suspend supplies of energy carriers but will still search for alternative energy supply sources.

   To that end, the Georgian governmental delegation led by Prime Minister Zurab Nogaideli will visit Iran on October 22-24.

6. BUDGET EARNS 40-45M LARI FROM AGRICULTURAL LAND PRIVATIZATION
   (Daily News: October 10, 2006)

   Zurab Shkhvatsabaia, the vice chairman of the Agrarian Committee of Parliament, says earnings from agricultural land privatization have made up 40-45 million lari. According to latest data, 22,000 hectares have been already privatized, while the process is coming to an end for 12,000 more hectares.

7. ELECTION CAMPAIGN IN GEORGIA ENDS, ANTI-GEORGIAN CAMPAIGN IN RUSSIA GROWS STRONGER
   (Weekly Press Digest: October 8, 2006)

   The October 5 local election and anti-Georgian campaign in Russia have been the main topics of the week. As it had been expected according to the first reports of the Central Election Commission the ruling National Movement became winner among six parties and one election alliance.

8. FOREIGN EXPERTS READY TO HELP GEORGIA DEVELOP WINE SECTOR
   (Daily News: October 6, 2006)

   A wine forum held yesterday in Tbilisi focused on the prospects of wine sector development and improving legislation. The forum was timed to the visit to Georgia of Federico Castellucci, the director general of International Organization of Vine and Wine (OIV), which numbers 42 states.

9. RULING NATIONAL MOVEMENT WINS LOCAL ELECTIONS
   (Daily News: October 6, 2006)

   According to the first reports of the Central Election Commission (CEC), the ruling National Movement has won the October 5 local elections.

   66.4% of voters voted for the National Movement, Davitashvili-Khidasheli-Berdzenishvili received 11.9% of votes, the Labor Party – 10.7%, Topadze-Industrialists – 6.4%, Georgia’s Way of Salome Zurabishvili – 2.9%.

10. TBILISI CORPS TO RECEIVE INTERNATIONAL QUALITY CERTIFICATE
    (Daily News: October 4, 2006)

    The Tbilisi Corps (the service of the City Hall) has been granted international ISO 9001:2000 certificate.

    The certificate was granted as a result of 3-months intensive cooperation with Italian DEA Georgia (product certification company).

11. Rezonansi: “THE ENERGY SCANDAL OF THE CENTURY”
    (Economic Press Monitor: September 26, 2006)

    Details of acquiring Georgian energy entities by Czech company EnergoPro are still hazy. EnergoPro bought through a contest Georgian United Distribution Energy Company, Ajara Distribution Company and six hydro power stations for $312 million, but the agreement has not yet been signed.

12. 24 Saati: “TRANSIT DEAD END OR A LIGHT BY THE END OF CORRIDOR”
    (Economic Press Monitor: September 25, 2006)

    Zurab Garakanidze, a candidate of economic sciences, says the state is to support the transport sector to support compatibility of the TRACECA (Europe-Caucasus-Asia) corridor. The expert suggests negotiating the tariff policy with Central Asian states, reviewing high tariffs of Poti and Batumi ports and diversifying freight turnover or focusing not only on oil but also on dry cargo and container shipment.

13. COMMERCIAL BANKS TO HAVE ACCESS TO PUBLIC REGISTRY DATABASE FOR GRANTING MORTGAGE LOANS
    (Daily News: September 28, 2006)

    The National Agency of Public Registry has signed today a memorandum with real estate agencies and commercial banks. According to the memorandum, the latter two will be able to use the database of the agency.

14. GOVERNMENT OFFICIALS VISIT UPPER ABKHAZIA
    (Daily News: September 27, 2006)

    Today, President Mikheil Saakashvili, Parliament Speaker Nino Burjanadze, Defense Minister Irakli Okruashvili, Tbilisi Mayor Gigi Ugulava as well as Cathalicos-Patriarch Ilia II visited Upper Abkhazia.

    The President of the country has launched the initiative to call officially the highland Kodori Gorge, the only Tbilisi-controlled territory in Abkhazia, Upper Abkhazia.

15. NEW STEPS
    (Weekly Press Digest: September 24, 2006)

    New York, which has hosted the meetings of UN General Assembly and NATO foreign ministers, has witnessed most important developments for Georgia this week. At the NATO ministerial on September 21, 26 states unanimously decided on Georgia’s transition from IPAP (Individual Partnership Action Plan) to Intensive Dialogue (ID).

16. THE QUESTION OF THE RIGHT CHOICE
    (Weekly Press Digest: September 17, 2006)

    With tension still simmering in the conflict zones, Georgia hopes to change a peacekeeping format. The question of “protracted conflicts” on the territory of GUAM states (Georgia, Ukraine, Azerbaijan and Moldova) has been placed on the agenda of thesession of the UN General Assembly.

17. 24 Saati: “CHALLENGE SHOULD NOT TURN INTO DANGER!”
    (Economic Press Monitor: September 13, 2006)

    Zurab Garakanidze, a candidate of economic sciences, considers that this negative phenomenon of inflation could have been the result of several not monetary conditions.

    In particular, in 2004-2005 the government under conditions of stable performance of the budget was late to take adequate steps in terms of monitoring spending, says Garakanidze.

18. Rezonansi: “WHOLESALE MARKET TO BE CONTROLLED BY MINISTERS?”
    (Economic Press Monitor: September 12, 2006)

    Following the reorganization of the association of the Georgian Wholesale Energy Market into a commercial operator, new staff was employed, leaving seven of former staff unemployed.

    In particular, Zakaria Kutsnashvili, a lawyer and head of the legal department of the association, appeared jobless.

19. KFAED TO DISBURSE $17M TO GEORGIA FOR ROAD REPAIRS
    (Daily News: September 14, 2006)

    Georgia has signed a $16.7-million loan agreement with the Kuwait Fund for Arab Economic Development (KFAED). The funds will go to the restoration of Tbilisi road infrastructure.

20. PRIME MINISTER FORECASTS $1.5B INVESTMENT IN 2007
    (Daily News: September 13, 2006)

    An estimated volume of investment in Georgia in 2007 is $1.5 billion, Prime Minister Zurab Nogaideli has told the government meeting today. This will become a pre-requisite for the economic development of the country and continuation of the employment program, he says.

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