Issue 4, 2013. August-September



Avtandil Chedia

Georgia, EU Conclude DCFTA Talks
On July 22, the European Commission announced that the European Union and Georgia have completed talks on a Deep and Comprehensive Free Trade Agreement (DCFTA). The agreement, part of Georgia's Association Agreement with Brussels, will be signed as soon as "internal EU and Georgia procedures" are completed, the commission reported.
Specialists have estimated that the DCFTA could increase exports to the EU by 12 percent, and imports by 7.5 percent.

Three Year EU/UN Project to Aid Ministry of Agriculture
The European Union and the United Nations Food and Agriculture Organization (FAO) have announced a new three-year project to provide technical assistance to the Ministry of Agriculture. The project, and 2 million euros in aid, will focus on improving the competitiveness of the agricultural sector through the development of effective policies.

Georgian American Alloys Invests in Mines
Over the course of 2013, Georgian American Alloys has invested more than 10 million lari in its mining holdings, including 600,000 lari spent to improve social conditions for miners. The bulk of the investment was for new equipment.

World Bank Allocates Another $75 Million for East-West Highway
Georgia and the World Bank signed the fourth financing agreement for the East-West Highway project in June. The World Bank has committed a total of $292 million to construct the modern highway, which will connect Tbilisi and the Black Sea, easing transit and transportation costs.

Number One Investor in Georgia: Japan
Geostat reported, based on preliminary data, that in the first quarter of 2013, Japan was the country's largest foreign direct investor, with $46.3 million. Coming in second was Azerbaijan, with $38.4 million, followed by the Netherlands with $34.9 million.

IFC Extends $4 Million Credit Line to Finca
The International Finance Corporation (IFC) has opened a $ 4 million credit line to microfinance organization Fincato spend on loans to small- and medium-sized businesses.

Millennium Challenge Corporation Approved Second Compact to Georgia
The Georgian Ministry of Education and Science reported on June 19 that the board of the US Millennium Challenge Corporation approved a five-year compact with Georgia worth $140 million. The program includes three projects: improvement of general education quality, development of production skills and labor force, and STEM (Science, Technology, Engineering and Mathematics) higher education.

Radisson Plans New Park Inn Hotel in Tbilisi
Carlson Rezidor, the parent company of Radisson Hotels, announced plans for a new Radisson Park Inn Hotel in Tbilsi on July 9. The 200-room hotel is scheduled to open mid-2015 on Rustaveli Avenue. Radisson currently operates two hotels in Georgia, in Tbilisi and Batumi.