Friday, July 27, 2007, #142 (1409)

Business Roundup:
Prepared by Christina Tashkevich

Frontera to invest USD 30 million
Frontera Resources president Steve Nikandros announced the company plans to invest USD 20-30 million in 2007 on oil exploration.
In Taribana and Mirzaani fields (Dedoplistskaro district of Kakheti province), where Frontera Eastern Georgia carries out oil extraction, five new boring wells will be drilled.
As Nikandros said, 35 wells have already been drilled in Mirzaani and 5 - in Taribana. In 2006, the company extracted 36 000 barrels of oil, while for the six months of 2007 – 10 000 barrels.
Frontera operates in the Kakheti province since 1997 year. The company made about USD 100 million investments from 1997-2006.

JSC Bank of Georgia Receives Euromoney Award for Excellence
JSC Bank of Georgia announced last week that is has received the Euromoney Award for Excellence as the Best Bank in Georgia 2007.
“I am delighted that, for the third consecutive year, Bank of Georgia has been recognized as
the top bank in the country by Euromoney,” Chairman of the Supervisory Board of the bank Lado Gurgenidze said.

Increasing Potential of Agribusiness Cooperatives in Guria
On July 24, the Guria Agribusiness Center in partnership with the USAID’s SME Support Project hosted a roundtable meeting on increasing the potential of agribusiness cooperatives in Guria.
A USAID SME Support Project has contracted the Guria Agribusiness Center for six months to collaborate on the program. The program aims to increase agricultural income opportunities in west Georgia and improve the quality of market chains.
Guria Agribusiness will establish a partnership with 12 rural farmer cooperatives of 215 farmers.
According to Aleko Mameshvili, head of the Guria Agribusiness Center, the center works at all levels of agribusiness.

Ministry of Economic Development of Georgia Postpones Deadline for Poti Port Lease
The Ministry of Economic Development has postponed the deadline for submitting applications for the 49-year lease of the Poti Port, and the creation of a free industrial zone from September 14 to October 15.
International companies interested in the lease of the territory, creation of a free industrial zone and management shall submit applications to the Ministry of Economic Development of Georgia.

Government Plans Agro-Business Development
President Mikheil Saakashvili said July 25 at least 100 new processing companies will be set up in Georgia to boost the country’s agriculture sector by the end of next year.
Saakashvili added the development of the agro-business will continue to be the government’s priority.
Prime Minister Zurab Noghaideli explained the plan involved selling off over 40 000 hectares of agricultural land at 20 percent of its market price.
According to the plan, the land will be sold in 400-hectare plots and investors would have to set up processing factories there within the year.
President Saakashvili said the government expected that at least 100 000 new jobs would be created as a result of the project.
He also estimated GEL 600 million would be invested in the country’s agriculture sector within the next three years.
Minister of Economic Development Giorgi Arveladze said that agriculture constitutes 12 percent of the country’s GDP and 24 percent of country’s exports.

Allied Irish Bank Interested in Investing in Georgia
Ireland's largest bank, Allied Irish Bank (AIB), is looking at investment opportunities in Georgia, Georgia’s National Bank said July 23.
President of the National Bank of Georgia Roman Gotsiridze met with AIB representatives and briefed them on the country’s banking sector.  
Gotsiridze said that the banking sector, which he expects to attract USD 700 in investment this year, is one of the leading sectors of the country’s economy.

Israeli Company Chalafar Investment LTD to Invest USD 50 million
Israeli company Chalafar Investment Limited is going to invest in Georgian realty, consulting group Gepra announced. The volume of investments should amount to USD 50 million this year.
Investing projects include construction of residential complexes, as well as reconstruction of social and residential objects. According to Gepra, Chalafar Investment Limited, mainly engaged in investing in realty, intends to participate in oil refining in Georgia.

TBC Bank receives USD 35 Million Loan
TBC Bank has received a USD 35 million loan from Swiss corporation Credit-Suisse. The two-year loan is the corporation’s first investment in Georgia.
The bank said it’s not clearly defined where this loan would be spent, however adds that the bank would be able to finance any project to satisfy the increasing demand of banking services.



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