Abstract: Georgia became the most important free trade platform in that area thanks to the agreements with EU, China, Turkey, Canada, CIS. The ongoing and planned for the coming three years huge infrastructure works are doubling the job opportunities for Italian enterprises.
19/02/2019 – Class Editori. This morning a tender of almost 1 million euros of investment was launched for the construction of a school. Since the beginning of this year, 81 tenders for a total of 90 million were launched. In 2018, 300 tenders were launched in Georgia. All of which have been reported by the Italian embassy, as Antonio Enrico Bartoli highlighted -the ambassador in Tblisi, the Georgia’s capital- in the road show Confindustria is organizing in some Italian cities to present the opportunities for the companies participating in the Belt & Road Initiative.
Georgia, a small country of just 3.7 million inhabitants, with a 19 billion GDP by 2020, is actually becoming one of the most active and equipped free trade platform in the European continent. It is a strategic hub thanks to its geographical location along the new land Silk Roads.
The commercial agreements with EU, CIS (Commonwealth of Independent States), Canada, Turkey, China and those still under discussion with USA and India, followed by an investment plan of billions of dollars funded by the government and the supranational banks, are drawing attention and businesses for this country that, together with Azerbaijan, constitutes the corridor among the Caspian Sea and Black Sea. Georgia is also a natural link for the Central Asia energy resources and some European countries, such as Italy.
"Moreover, for international investors there are incentives and concessional terms among the Country's strengths, that ruling class means to continue along the reform path, to support the economic initiative and to enhance institutions," said Bartoli. That situation convinced big groups -such as Ferrero, specialized in confectionery, Saipem and Saili Impregilo, involved in infrastructural works- to establish foundations.
As a matter of fact, the Infrastructure Development Strategy 2017-2020 aims to modernize the sector through the implementation of 2.500 projects, that will provide work for about 40.000 people and has the target of refurbishing around 1.000 km of roads, including 300 viaducts and 50 tunnels, explained the ambassador. He also listed one by one the most important projects that are setting construction sites thanks to funds from the European Investment Bank, from the European Bank for Reconstruction and Development, from th World Bank and lately also from the Asian Infrastructure Investment Bank.
In total, it is about 3,4 billion euros of financial commitments on the transport system. For the coming three years, the construction of the East-West four-line highway is planned, that will have a capacity of 50.000 vehicles per day. In the framework of this project, the Ministry of Economics and of the Sustainable Development of Georgia carried out a study for the feasibility of the construction of two logistics centers in Tblisi and Kutaisi, that should have a cost of 95,5 and 72,5 million dollars respectively. Those centers aim to improve the logistics services management to encourage exports, create new workplace and attract more international capitals.
The upgrading works have been involving the Kutaisi International Airport as well, where the Bei's 70-million-euro investment is contributing to expand the square, the car parks, and the existing terminal.
Another important improvement project regards the Anaklia port on the Black Sea, attracting 2.5 billion in investments for the construction of 10,000 TEU container ships docking stations – as well as of a large logistics platform, and of the infrastructures linking the docks to the main communication channels, either rail or road. When fully operational, the port should reach a cargo capacity of about 100 million tons of goods per year, reducing transport times between China and Europe by approximately two weeks.
The total generated activity should produce a 49-billion-euro turnover and provide work for 20,000 people. Plans are for nine implementation stages, with the first one injecting 458 million euros to increase the structure's container capacity by 900,000, and ending in 2020. During the same year the Ankalia Special Economic Zone (SEZ) should also become operational, extending over a 2,000-hectare area next to the airport.
Another important sector in Georgia is the energy one. Over the last ten years, the country has been working on the construction of 10 hydroelectric plants with a total capacity of 157 MW, moving a total investment of 264.4 million dollars. In the next few years, the Georgian Energy Development Fund (GEDF), with the contribution of the European Bank for Reconstruction and Development (EBRD), is planning to build the country's first wind farm with an initial capacity of 20 MW – yet extendable to 200 MW.
In regard to oil and gas, Georgia's first gas depot, developed next to the exhausted Samgori South Dome gas field 30 kilometers from Tbilisi, should be finished by 2021. The storage point should host up to 210-280 million cubic meters of gas, equaling 10-15% of annual national consumption and granting the country's energy security against possible supply disruptions. Gas collection will mainly involve the Azeri mining field of Shah Deniz, aiming to achieve a production of 26.1 billion cubic meters of gas per year by 2021.
When it comes to the Belt & Road Initiative, Georgia's strategic importance has long alerted large Chinese groups which, despite winning some important contracts, are still met with resistance from parts of the Georgian administration – fearing for their independence. "Ironically, the situation seems to be in favor of Italian companies. When it comes to planning, work control, and special equipment supply, the big Chinese groups look at them as privileged subcontractors with an higher added value," stressed Maurizio Ferri, Ice manager for Georgia and Azerbaijan.
(Source:Class Editori)
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