Issue 4, 2011. August-September

   

IN BRIEF

A brief synopsis of new investments and business news compiled by Investor.ge's Eteri Masuradze.

Clean Energy Invest AS to develop Hydro-power Project in Adjara
Clean Energy Invest AS, an Oslo-based company, will invest up to $385 million to develop a hydro-power plant (HPP) cascade project on the Adjaristskali River in the Adjara Autonomous Republic. The project involves construction of a four-stage cascade with a total capacity of over 257 MW. The cascade includes the following plants: Zomleti HPP, Vaio HPP, Koromkheti HPP and Chorokhi HPP.

International Finance Corporation (IFC) Invests in Georgian Healthcare Group
IFC, a member of the World Bank Group, is investing $3 million in equity in Archimedes Health Developments, a newly-created company established by Archimedes Global, a Georgian-based medical insurance group to help expand access to health insurance and health services in Georgia and other emerging markets in Eastern Europe and Central Asia.

Bilberry to be Cultivated in Adjara
According to Dato Khilaishvili, representative of Subtropic Fructice, the company will cultivate bilberry on 15-16 hectares of plantations in Adjara. The company expects the first harvest in 2013-2014 and is planning to export the majority of the crop to Turkey and Europe. The company bought farm machinery in Turkey and saplings of 12 high-yielding varieties of bilberry in the US. Subtropic Fructice was founded with Georgian investments in 2010; to date the company has invested 1 million lari in the project.

Georgia Expects $1 billion FDI in 2011

The Georgian government expects foreign direct investment to double this year, after falling 65 percent over the past two years, said Minister of Economy and Sustainable Development, Vera Kobalia.
Georgia may receive more than $1 billion of investment, mainly in hydro-power projects. Tourism is also expected to lure investors after more than 2 million people visited the former Soviet republic last year.
Foreign direct investment fell to $553.1 million last year from $658.4 million in 2009 and $1.56 billion in 2008.

Four Countries Consume 76% of Georgia's Wine Exports
Georgia's exports to Ukraine (worth $18 million, or 46 percent of total), Kazakhstan ($5.9 million, 15 percent), Belarus ($3.9 million, 10 percent) and Poland ($2 million, 5 percent) account for 76 percent of the country's total wine exports. Exports to the United States were worth $986,000 - three percent of the total wine exports.
In total, Georgia exported $39.3 million of wine in 2010, an increase of 22.8 percent compared to the previous year. According to the Georgian Wine Association, 80 percent of wine produced in Georgia is white, which is very popular in the local market, while exports are predominately of red wine (about 70 percent).

X-ray Installed at Poti Railway Junction
A new X-ray scanner will enable customs officials to check all incoming cargo at the port without opening containers. The Chinese government financed the system with a $30 million grant.

Israeli Investors to cultivate Greenhouse in Kobuleti
Israeli businessmen are planning to use 23 000 Ha of land in Adjara to build a fruit greenhouse. They plan to cultivate 5 000 Ha in by the end of 2012. (National Investment Agency, July 2011)

Bananas from Kakheti
The first batch of Kakhetian bananas, cultivated in a local village, will hit the market soon. The bananas have been grown in Grujaani.

Pernod Ricard Sells Shares in Georgia's GWS
Pernod Ricard, the French drinks giant sold shares in Georgian Wine and Spirits LLC (GWS) to the Georgian unit of Marussia Beverages BV, wine and spirits group registered in the Netherlands. The prices of the shares has not been disclosed. (Rustavi 2 July 28 2011)

Food Producers to be Fined for Violations
The Parliament has adopted legislative amendments, imposing fines on food producer companies from July 1 for violations.
Unauthorized production or distribution of food will be subject to a 300 lari fine.
Other companies will have until June 1, 2012, to meet food safety standards.