GEORGIAN NATIONAL INVESTMENT AGENCY

Transcription

1 GEORGIAN NATIONAL INVESTMENT AGENCY March, 2011

2 Country Overview Area: Population (2009E): Life expectancy: Official language: 69,700 sq km 4.4 mln 74 years Georgian Literacy: 100% Capital: Currency (code): GDP 2010: Tbilisi GDP real growth rate 2010: 5.5% GDP CAGR % GDP per capita 2010(PPP): Lari (GEL) US$11.0 bln US$5.057 Inflation rate (e-o-p) 2009: 8.0% External debt to GDP 2009: 37.2% Nominal GDP (mln GEL) 8,564 17,948 GDP per capita (GEL) 1,972 4,093 Total budget revenues (mln GEL) 1,368 5, Standard & Poor's Ratings Services raised its long-term foreign and local currency sovereign credit ratings on Georgia to 'B+' from 'B in April, 2010 BB-/Stable B+/Negative B+/Stable

3 Priority Sectors Tourism Energy Agriculture Real Estate Development

4 Priority Sectors TOURISM

5 Tourism Trends in Georgia In Thousands % Government Actively developing tourism sector - anticipated annual tourist growth of 35% in the next 3-5 years Examples: New high-end all year round winter resort - Mestia Free Tourist Zones in Kobuleti and Anaklia Development of Spa Cities around Georgia % % Georgia Offers 35% ,000 Historical and Cultural monuments % F F F Resorts and 182 Resort Areas 8 National Parks 2400 Springs of Mineral Waters Curative Climate

6 ANAKLIA- Project Incentives Anaklia offers: Sandy beach and a subtropical climate Best climatic conditions along the Georgian Black Sea Coast Beautiful seaside boulevard, designed by a famous Spanish architecture Company CMD Ingenieros, along which the hotel plots are located A yacht club Completion of works within 18 months since signing the contract. The government offers investors unprecedented terms for the construction of hotels along the seaside: Free land: A plot of land along a seaside boulevard with an area of 3.7 hectares will be provided for 5 hotels. i.e. on average 0.6 ha for each hotel plot A Free Hotel Master Plan No profit and property taxes for 15 years Free casino license (10 years) for the hotels with over 80 rooms Utility networks and corresponding external infrastructure such as electricity, gas, water and new roads Mineral water from a nearby source will be available at each land plot

7 Kobuleti- Project Incentives Free Land Kobuleti is a townlet and seaside health resort on Black Sea in western Georgia located in Adjara region Average temperature in August is +25 C The lands that will be handed over to investors are located 140 meters from Black Sea in Pichvnari (Fine forest) area a part of the Kolkheti Valley only 3-4 meters below sea level Development area of 11.3 ha for 30 hotels Pichvnari (Fine Forest) Unique Microclimate Resort Priority-warm and humid climate Maximum therapeutic effect-combination of thalassic therapy and other medical procedures Investment range 1-3 million USD Free Hotel Master Plan No Profit and Property taxes for 15 years Fully Provided engineering utility networks and corresponding external infrastructure such as electricity, gas, water and new roads

8 Tskaltubo - Located in fertile Western Georgia Imereti and sits at the foot of the Greater Caucasus Mountain Range, at an elevation of only 98 m. Subtropical climate and considered to be the warmest spa resort in Eurasian region. Average annual temperature of +15C, with average low of +19C and average highof +25C. Over 2000 hours of sunshine annually. More than 150 types of deciduous (leafy) and coniferous (evergreen) trees on the territory of this unique resort area. Existing set of sanatoriums and baths receiving visitors on a daily basis Ability to host 15,000 tourists on a daily basis. Excellent existing city planning for development of spa & wellness destination.

9 Mestia Treasure of Caucasus Mestia Municipality is located in the Samegrelo-Zemo Svaneti region of Georgia, Central-West Caucasus, 1450 meters above the sea level surrounded by sub alpine pine and chestnut forests and majestic mountains. Area is an important cultural centre and contains a number of medieval monuments, churches and forts which are on the list of UNESCO World Heritage Sites Comprehensive Development Vision, General Planning and Specific Master Plan prepared by international consultant EcoSign Mountain Resort Planners Ltd, Canada and Geographic,Georgia Situated high above the town of Mestia lies a beautiful alpine plateau which is the chosen location for the new Atsvali Village Center A year-around destination with winter ski-resort and summer outdoor related activities skiing, heli-skiing, climbing, snowboarding, horseback riding, rafting, fishing, hiking, huntingetc Land for nominal price 1sq.m =1 USD

10 Priority Sectors ENERGY

11 Regional Energy Hub - Net Electricity Exporter Reliable transit country and regional energy hub Baku-Tbilisi-Ceyhan (BTC) oil pipeline Baku-Supsa oil pipeline South-Caucasus gas pipeline (SCP) from Shah-Deniz North-South Gas pipeline Georgia-Azerbaijan Southern Gas (GASP) Gas supply contracts with Azerbaijan for 10 years and with Shah Deniz for 20 years Transit role for oil & gas pipelines and railway Circa 1.6% of world oil production NABUCCO/White Stream huge potential to transport gas from the Caspian The only country in the region (which doesn t have its own gas resource) that was not effected by gas crises in January 2009 Georgia/Romania MoU for transportation carbon recourses from Caspian via Black Sea Recent study affirmed the White Stream s economic and technical feasibility White Stream (proposed) Net electricity exporter in all four neighboring countries Construction of 500 kv. power transmission line to Turkey Construction of 100 kv. power transmission line to Turkey Huge untapped hydro resources Only 18% of the country s hydro potential has been utilised Huge, rapidly growing consumption rate and high tariffs on the Turkish electricity market Once all three electricity lines are operational, total transmission capacity to Turkey will reach 1,500 MW - 10 times more than current capacity

12 Large-Size Hydro Projects Cascade of Mtkvari HPPs Installed capacity 207 MW; Average projected annual generation 1,2 TWh; Cascade of Oni HPPs Installed capacity 272 MW; Average projected annual generation 1,530 TWh; Khudoni HPP Oni Cascade Namakhvani Cascade Upper Mtkvari Cascade Khudoni HPP Installed capacity 750 MW; Average projected annual generation 1,66 TWh; Cascade of Namakhvani HPPs Installed capacity 450 MW; Average projected annual generation 1,6 TWh.

13 On-Going Projects Total of 20 HPP on-going projects Total installed capacity of 1480 MW and annual generation 5 TWH Investment 2,2 bln USD. 11 HPP projects awarded and MOUs under negotiations Total installed capacity of 280 MW and annual generation 1.4 TWH Investment 550 mln USD. 2 new HPP constructions launched in 2009 Bakhvi HPP- 6 MW Mtkvari HPP- 36 MW Cost 10 million Cost - $60 million 4 new HPP constructions launched in 2010 Paravani HPP 78 MW Lukhuni 2 HPP 12 MW Cost $100 million Cost - $21 million Zoti HPP 36 MW Cost - $80 million Kvirila HPP 5.2 MW Cost - $12 million Over 60 more locations available with pre-feasibility conducted

14 Priority Sectors AGRICULTURE

15 Offerings: Agriculture- offerings & opportunities Legal provisions to own (i.a. for foreigners) agricultural land 0% VAT on primary production of agricultural products 0% export duty + 100% VAT refund 0% of import duty on agricultural and other equipment 100% depreciation allowance on investment Liberal labor regulations Favorable Climate and Soil GSP and GSP + (EU) regimes and FTA Agreements Well developed transport sector including railway and sea ports essential for effective exports of agricultural goods

16 Opportunities Fresh Fruit and Vegetables Greenhouse crops (off-season) Berries (Blueberry, Table Grapes, Pomegranate) Citrus (early and late varieties) Exotic fruit (Persimmon, Pheikhoa and Kiwi) Livestock Pedigree Production Modern Dairy Farms and Consolidation Points Modern Cattle Fattening Facilities Intensive Pig Farming Storage and Production Plants Sorting and grading facilities Cold storage warehouses Artificial Insemination Centers Slaughter houses Meat processing facilities

17 Priority Sectors REAL ESTATE

18 Real Estate Market Summary Hottest destinations for construction and development in the region Liberal system of issuing permits Express service system CONSTRUCTION TURNOVER NUMBER OF CONSTRUCTION PERMISSIONS GRANTED Non-Residential Residential 2500 World Bank/IFC Doing Business Report th in the world in respect of dealing with construction permits 2 nd place worldwide in ease of registering property

19 Parliament Building Land Plot sq.m Usable Space sq. m Parking- 389 sq.m Big Court sq.m Small Court 285 sq.m Terrace (Including Starecases and Pools) 1438 sq.m. Basement sq.m. Number of Rooms 574 PRICE - $ The building is a cultural heritage site and is distinguished for its architecture, visual beauty and constructional firmness. The overall technical condition of the building is satisfactory with no serious damages or deformations. The medium quality of the refurbishment is average. Taking into consideration this place is ideal for the development of various business activities including but not limited to a hotel, high-class office space and a shopping center.

20 Privatization Opportunities in Tbilisi Former Ministry of Economy and Sustainable Development Former Ministry of Finance Land Space: m 2 Building Space: m 2 Price: USD Land Space: m 2 Building Space: 7994 m 2 Price: USD For Sale Clinical Hospital of I. Javakhishvili Tbilisi State University (TSU) (no profile liability is required) Land Space: m 2 Building Space: m 2 Price: USD Former Tbilisi Publishing House Land Space: 9.447m2 Building Space: m2 Price: USD

21 GEORGIAN NATIONAL INVESTMENT AGENCY 12, Chanturia Street, 0108Tbilisi, Georgia Tel/Fax: ( ) ( )