Economic Press Monitor May 26 - June 1, 2019	Days:  18 25 01 08 15

economic & politics

BANKEBI DA FINANSEBI: “LEVAN AKHVLEDIANI – ANAKLIA PORT IS ATTACKED BY FORCES IN THE POWER TOO”

May 31, 2019 - Levan Akhvlediani, director general of Anaklia Development Consortium indicates that permission for construction of deep-water port in Poti was issued on May 2.

However, on May 21, when the meeting was held between representatives of Georgian government and international financial institutions (concerning financing of Anaklia port project), “nothing at all was said” in respect of issue of Poti, Akhvlediani specifies.




TABULA: ““APM TERMINALS”: WE DID NOT RECEIVE THE DOCUMENT ON CANCELLATION OF THE MAY 2 ORDER”

May 31, 2019 - APM Terminals (operator of Poti seaport) announced on May 29 that it got on May 2 the permission for construction of the deep-water mooring in Poti.

However, after sharp reaction of Anaklia Development Consortium, which declared that this threatens implementation of the project of Anaklia deep-water port, Georgia’s Minister of Economy and Sustainable Development Natia Turnava cancelled this permission on May 30.




TABULA: ““I DID NOT INFORMED TURNAVA ON THE SUBJECT” – FORMER CHIEF OF LEGAL ENTITY OF PUBLIC LAW MAKES FIRST COMMENT”

May 31, 2019 - In his statement, former chief of the Agency of Construction and Technical Supervision Grigol Kakauridze declared that he made the decision on conditions of land use in Poti by APM Terminals (operator of Poti seaport) independently. “I did not inform directly” the Minister of Economy and Sustainable Development Natia Turnava, he assured.




BANKEBI DA FINANSEBI: “PROSECUTOR’S OFFICE DETAINED 7 HIGH RANKS, INCLUDING FORMER MAYOR OF BATUMI GIORGI ERMAKOV AND DEPUTY MINISTERS OF EDUCATION AND FINANCE”

May 31, 2019 - Prosecutor’s Office of Ajara detained members of Ajara government, as well as current and former high ranks of Batumi municipality, including former mayor Giorgi Ermakov, the newspaper reports. As the reason, misspending of funds in the large volume (1.37 million lari) and abuse of office were named.




TABULA: “GVENETADZE: SUCH DEPRECIATION IS USUALLY FOLLOWED BY STRENGTHENING”

May 30, 2019 - Lari official exchange rate depreciated to record-breaking mark, passing level of 2.8 GEL/USD, Tabula says.

As president of National Bank of Georgia Koba Gvenetadze declares, “With other things being equal, such depreciation is followed by strengthening”.




FORBES GEORGIA: “MERCEDES-BENZ BUSINESS WEEK – FOR THE FIRST TIME IN GEORGIA”

May 28, 2019 - The world’s first Mercedes-Benz Business Week will be held in Georgia, the magazine reports. According to the article, the event will be held on June 7-9 and during a business week will attract up to 500 guests.




TABULA: “SAGANELIDZE: 80% OF FISH IS BROUGHT BY IMPORT, WHEN WE HAVE SO MUCH RIVERS AND SO MUCH SEA”

May 28, 2019 - David Saganelidze, executive director of Georgian Partnership Fund, declares Georgian Company of Branch and Regional Development, created by the Fund 2 years ago, studies capacity of all regions.

Among branches, which need encouragement, Saganelidze names fishery.

macroeconomics & budget

TABULA: “GVENETADZE: CURRENCY EXCHANGE RATE IS NOT THE MOST IMPORTANT FACTOR OF PRICE GROWTH”

May 27, 2019 - “An exchange rate is one of the factors, causing price growth and inflation, and not the most important of them”, president of National Bank of Georgia (NBG) Koba Gvenetadze declares. “Aggregated demand has more important impact than inflation”, he specifies.




KVIRIS PALITRA: “WHAT WILL RISE IN PRICE BECAUSE OF FLUCTUATION OF LARI”

May 27, 2019 - Official exchange rate exceeded 2.78 GEL/USD, the newspaper points, noting that more than this lari was depreciated in December 2016.

National Bank of Georgia (NBG) explains that conclusion, allegedly devaluation of lari will cause inflation, is wrong, the newspaper says, indicating that Georgia is very dependent on import and in these circulstances, “only prayer could save production from a rise in price”.

energy, oil & gas

REZONANSI: “SECRET PRIVATIZATION IN POWER INDUSTRY”

May 29, 2019 - Expert Temur Chichinadze declares that “there are serious and reasonable suspicions that energy lines’ privatization has been prepared” and their “withdrawal from the list of strategic objects” is envisaged.

“To all appearances, they will raise a tariff”, Chichinadze asserts.




FORBES GEORGIA: “THE WORLD BANK WILL FINANCE GEORGIA’S ENERGY SECTOR WITH $62M”

May 29, 2019 - The board of directors of the World Bank (WB) approved allocation of $62 million for Georgia’s energy sector, the magazine reports.

As the bank said, funds are approved within the “Reliability of Electrical Supply and Financial Improvement” project and will be allocated by the International Bank for Reconstruction and Development (IBRD, member of the WB group).

conflict and court

NETGAZETI.GE: “SUFFERED FROM CYBER-CRIME “SOLO” CLIENTS AGAINST “SAKARTVELOS BANKI””

May 30, 2019 - 2 clients of SOLO service (wealthy clients) of Sakartvelos Banki (Bank of Georgia) declare that swindlers stole from them large sums by means of Internet, while the bank did not protect them properly, Netgazeti.Ge reports. Both clients prepare for a lawsuit.




TABULA: “DIRECTOR OF CHIATURA MINING AND PROCESSING WORKS LEAVES THE POST”

May 28, 2019 - Referring to the statement of Georgian Manganese, Tabula reports that Akaki Gurjidze leaves the post of director of this Chiatura ore mining and processing enterprise. As the reason, created situation is named.




REZONANSI: “ONE STEP FROM NATIONWIDE STRIKE”

May 27, 2019 - Over 3,000 miners in Chiatura are on strike for more than 10 days, the newspaper says, pointing that they are joined in solidarity by up to 50 coalminers in Tkibuli.

According to the article, it is expected that workers of Ferro (Zestaponi ferroalloy plant) also will join the protest.




TABULA: “AGREEMENT BETWEEN MINERS AND “GEORGIAN MANGANESE” WAS NOT REACHED, PROTEST PROCEEDS”

May 27, 2019 - Negotiations between miners, striking in Chiatura, and Georgian Manganese have ended in nothing, Tabula reports. The strike continues already for 12 days.

companies

BANKEBI DA FINANSEBI: “COMPANY “NOVA” OPENED NEW ENTERPRISE WITH ASSISTANCE OF “TBC” AND EBRD”

May 29, 2019 - On May 27, LLC Nova opened in Batumi the enterprise, which will produce polyethylene water tanks and other similar items, the newspaper reports.

The article specifies that the project is funded by TBC Bank and EBRD, which allocated credit of 3 million EUR.




FORBES GEORGIA: “GEORGIA’S MOST PROFITABLE COMPANIES”

May 28, 2019 - Income, gained in 2017 by Georgia’s 100 largest companies outside of financial sector, totaled to 18 billion lari, the magazine reports.

In turn, income of 150 largest companies totaled to 20.4 billion lari that made up 54% of the country’s GDP for 2017.

transport & communications

BANKEBI DA FINANSEBI: “NEW PORT WILL BE BUILT IN POTI – COST OF THE STAGE I MAKES UP $250M”

May 30, 2019 - In Poti construction of new seaport begins, the newspaper reports. Referring to Poti city hall, the article specifies that protective pier with length of 1,640 running m and mooring with length of 700 running m will be constructed.




NETGAZETI.GE: ““IF THIS FACT WILL NOT BE FOLLOWED BY REACTION OF THE GOVERNMENT, ANAKLIA PROJECT WILL STOP” – EXTRAORDINARY STATEMENT OF “CONSORTIUM””

May 30, 2019 - On May 2, Georgian Ministry of Economy and Sustainable Development issued to affiliated structure of APM Terminals the permission for construction of deep-water, multifunctional mooring in Poti, reports Anaklia Development Consortium (builds deep-water port in Anaklia).

However, no information on this subject was reported at the meeting of representatives of Georgian government with international financial institutions and Consortium (concerning financing of construction of Anaklia port), Consortium points.