The Ministry started accepting statements from physical and legal entities concerning construction of hotels with the intention to develop Kobuleti “Free Touristic Zone” (so called “Pichvnari” territory, 140 meters from the sea.) Three plots of land with the area of 11.3ha have been allocated for 27 hotels which will be constructed on this territory. Three types of hotels have been determined. The wisher will have to make a choice out of these options. The number of floors of the hotels is also determined: 5, 6 or 7 floors (42, 52 or 60 rooms.) (Please follow the link ) Full package of the project construction documentation will be ready by September 24, 2010. Few changes can be made in the project according to the clients wish. It is remarkable that: Management of the construction building land will happen at a symbolic price; Project construction documentation will be handed to the client for free; The territory will be provided with Engineering Utility Networks and corresponding infrastructure. In case if the project is finished by August 1, 2011, the investor will receive a 15-year income and property tax exemption. Statements must be submitted before October 30, 2010. For detailed information contact: Department of Urbanization and Construction of the Ministry Contact numbers: 99 10 45; 99 10 46; 99 11 13; Department of City Planning at the Ministry of Finance and Economy of Adjara Autonomous Republic Contact numbers: 8(88222) 4-79-18 Info Service Contact numbers: 8(88222) 4-79-38; 8(88222) 4-79-39; 8(88222) 4-79-40.

Since September 1^st, 2010 order #690 of Minister of Finance has been come in force, which affirms VAT special regime on Import. Entity, that has declared and paid to the state budget more than 200 000 lari of VAT in last uninterrupted 12 month can use special taxation regime. According to Enclosure 1, Article 2 and paragraph 7, the entity which satisfies the all conditions of the above named regime, then Tax Service automatically gives the status of the special regime.

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On September 13-14, in Batumi, in “Sheraton” hotel and in Tbilisi, in hotel "Courtyard Marriott” will be held the Turkey-Georgia Business-Forum organized by the National Agency for Investment and the Chamber of Commerce and Industry of Georgia. Within the frameworks of the Forum, according to the sectors, bilateral meeting will be held between the Turkish and Georgian Businessmen. Turkish businessmen delegation will be represented by the representatives of following sectors: Construction and Building Materials, Real Estate, bags and shoes production; restaurants and cafes, food products, poultry and eggs, sweets, car parts, agricultural products, wedding dresses, jewellery manufacture products; accounting, computer, printing services (printing) ; biochemical / haematological reactive and equipment, heavy industry (mineral, black metal), educational and social services. International Investors Association of Georgia calls on the Georgian businessmen to participate actively  in mentioned forum in order to establish new business contacts. The bilateral meetings will be held in Batumi on September 14 at 11 o’clock in “Sheraton” hotel.

“Nabucco” gas pipeline will receive a credit of 4 Billion Euros, foreign media reports. The corresponding agreement was signed between the consortium, building the gas pipeline, and the group of organizations yesterday. The group includes the European Bank for Reconstruction and Development, the European Investment Bank and the International Finance Corporation. The total cost of “Nabucco” project was estimated at 8 billion Euros. The construction of the gas pipeline is to start in 2012; while its activation is planned by 2015. ”Nabucco” is regarded as a main alternative of the Russian South Stream pipeline.

On September 1, 2010 was held an auction by Ministry of Economy and Sustainable Development, where was sold the building with land and property on the territory of Batumi oil processing plant.

Those International Investors Association members who are the owners of the mill factories reacted positively on initiative of the Georgian President to develop special plan by the government connected with growth of the wheat prices.

For investor’s part, they are trying to find an alternative wheat markets with acceptable prices. The owner of Ortsva LTD Ismail Bazarani declared that he purchased wheat in special wheat storage terminals in Tabrzon, which will enable him, not only increase but also decrease wheat prices in nearest days.

For now High-quality 50 kg bag of flour costs 47-48 GEL, as for first class flour – 45 GEL.

In order to study and discuss different issues Chief advisor to Prime-Minister of Georgia Giorgi Pertaia specially visited Batumi and held meeting with the members of International Investors Association and exporters. The purpose of the meeting was to give information to Association members and exporters about working on all issues raised by investors during the meeting on August 9^th of current year. The attendees had also a chance to talk with Mr. Giorgi and discus all actual problems they face during their activity. Government of Georgia is actively working on the issues, solving of which will help exporters very much by means of increasing the export volume. For this reason Mr. Giorgi discussed particular issues with exporter of CIS countries by using of one-to-one form and also expressed his willingness to study carefully their affairs and solve problems. As the fall is upcoming there appeared main problems concerning of exporting citruses and Government’s active actions for protecting exporters’ interests were perceived positively.

On August 21-22 Batumi visited delegation of 14 persons of Tourism Investors Association "TYD” from Turkey. The guests were hosted by the Chairman of Adjara A/R Mr. Levan Varshalomidze, where the participants considered the prospects of increase of Turkish investments in the field of tourism. Members of the delegation met with Georgian President Mikheil Saakashvili and discussed the tourism development plan. International Investors Association of Georgia actively participated in a program of the visit of "TYD" delegation and establishes the close ties with the Tourism Investors Association to discuss the future specific projects. Tourism Investors Association of Turkey "TYD" was established in 1988. It unites hundreds of investors, who are working in the field of tourism. Turkey is the world's leading country in tourism and it is in eighth place. The branch is being served by 250 thousand hotel beds, 25 thousand places of Aviation, 8 thousand Marina - yacht wharf capacity, 400 thousand people are employed and the country receives annually 27 million tourists and 23 billion dollars income. The relationship with the representatives of mentioned branch and the sharing of its experience is very important precondition for the successful development of tourism.

Georgian government increased the fee for using roads up to 200 lari and concerning procedures will be implemented by Revenue Service based on Government resolution. In the resolution is also indicated the instruction for these procedures. In particular, in case of movement through Georgian Territory under custom control or transportation of cargos, freight auto transport – tractors, Cargo carrier motor vehicles except minibus, special purpose motor vehicles – emergency trucks, car hoists, Fire vehicles, auto concrete vehicles, road cleaning vehicles, irrigation-washing vehicles, workshop vehicles and also the owner or the driver of the car with x-ray equipment should pay fee for using road – 200 lari. In addition at time of crossing boarder the authoritative person from Revenue Service shall explain to the driver all his liabilities concerning the fee payment in written form. Without fee payment under custom control it is not allowed to transport cargos through Georgian Territory. In case of violation of a rule the driver has to pay penalty of 600 Gel worth. There is also indicated the conditions for liberation from fee. The person who is carrying cargo from check point of the seaport to the nearest custom control zone in 10 km radius or vice versa by truck vehicles, is free from fee payment. Government implemented fee for using road just for keep new roads in safe. As for the decision it was made by parliament at spring session.

September 8-9, 2010
Tbilisi, Marriott - Tbilisi, Georgia
In cooperation with the U.S. Embassy in Tbilisi, Georgia

On September 8-9, 2010, the U.S. Department of Commerce will host a Business Summit at the Tbilisi Marriott Hotel to promote new trade and investment relationships between U.S. and Georgian companies.

Participants in the Summit can expect:

· A conference on September 8 will provide the latest information on the most prospective business opportunities in Georgia, on best practices from U.S. companies that have successfully done business in Georgia, and on the experiences of Georgian companies that are involved in profitable U.S. business partnerships. Panel discussions will focus on energy, infrastructure, financial resources, and best prospects for cooperation, including franchising, tourism, agriculture and health care.

· A half-day of networking on September 9 will provide an opportunity for Summit attendees to have one-on-one meetings with select Summit speakers (see the registration form for details).

· Guidance from the Overseas Private Investment Corporation and the Export-Import Bank of the United States on how to use U.S. government programs to do business with Georgia.

· The U.S. Ambassador to Georgia and the Georgian Ambassador to the United States are both expected to participate.

· Information from representatives of multilateral development banks with major active projects in Georgia, including the European Bank for Reconstruction and Development, International Finance Corporation, and Asian Development Bank.

Registration

The registration fee to attend the Business Summit is USD 50 (or GEL 90).  The Amcham in Georgia is conducting registration on behalf of U.S. Department of Commerce.  See the registration for at www.amcham.ge/Summit%20registration%20form%20with%20bios.pdf for more information and details on how to register.

Questions?

Please contact Ellen House at 202-482-0360 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it