Geor eorgias S Silk Perspective and The Silk Road Economic - - PowerPoint PPT Presentation

Geor eorgia’s S Silk Perspective and The Silk Road Economic Cooperation

The Silk Road Support Group of the OSCE PA 13-14 March 2018 Baku, Azerbaijan

Georgia In International Rankings – 2017/18

Index of economic freedom

114 100 96 81 29 17 13 11 11 10 8 7 6 5 4 3 2 1

Azerbaijan Russia Moldova Turkey Armenia Latvia Lithuania US Canada Estonia Georgia Mauritius UK Ireland Switzerland New Zealand Singapore Hong Kong

14 8

2012 2015

Progress in ranking

Georgia In International Rankings – 2017/18

Property Rights Component

128 126 116 113 87 83 68 67 61 53 48 47 46 23 5 2 1

Ukraine Moldova Russia Croatia Latvia Poland Lithuania Turkey Armenia China Czech Republic Spain Georgia Germany New Zealand Switzerland Finland

120 46

2011-2012 2017-2018

Progress in ranking

Georgia In International Rankings – 2017/18

Effect of Taxation on Incentives to Invest, GCI

129 123 118 104 97 91 72 66 60 49 48 46 32 29 22 15 14 1

Ukraine Croatia Latvia Russian Federation Poland Moldova Turkey Sweden Armenia Canada Czech Republic Montenegro Saudi Arabia Azerbaijan Germany Kuwait Georgia United Arab Emirates

35 14

2011-2012 2017-2018

Progress in ranking

Georgia In International Rankings – 2017/18

Burden of Custom Procedures, GCI

126 91 87 86 80 76 60 57 46 43 34 30 28 17 16 14 11 1

Ukraine Armenia Serbia Moldova Turkey Russian Federation Latvia Azerbaijan Poland Lithuania Czech Republic Hungary Slovenia Germany Austria Georgia UK Singapore

27 14

2011-2012 2017-2018

Progress in ranking

Georgia In International Rankings – 2017/18

Doing Business

112 80 69 65 40 38 33 30 27 24 21 16 14 12 10 3 2 1

Georgia (2006) Ukraine Turkey Azerbaijan Russia Armenia Slovakia Slovenia Czech rep Poland Lithuania Georgia Latvia Estonia Macedonia Denmark New Zealand Singapure

improved by 96 positions in 11 years

• The Top Improver since 2006 in EE&CA and globally - With 44

institutional and regulatory reforms

• In 2017 Georgia is listed amongst regional leaders on the total

count of reforms

Georgia In International Rankings – 2017/18

Doing Business: Number of procedures to start a business, GCI

8 7

2011-2012 2017-2018

Progress in ranking

131 104 91 91 91 70 53 53 36 36 36 18 18 18 18 7 7 7 7 2 1

Saudi Arabia Germany Japan Croatia Czech Republic Turkey USA Switzerland Serbia Moldova France Ukraine Netherlands Lithuania United Arab Emirates Sweden Singapore Estonia Georgia Azerbaijan New Zealand

Georgia In International Rankings – 2017/18

Doing Business: Investment freedom

160 154 154 154 135 135 103 89 59 59 37 37 37 37 37 21 21 2 2 1

Ukraine Belarus Russia Moldova United Arab Emirates Kazakhstan Azerbaijan Macedonia Serbia Lithuania Israel Turkey Poland Latvia Croatia Armenia Georgia Hong Kong Estonia Luxembourg

36 21

2012 2017

Progress in ranking

Georgia In International Rankings – 2017/18

Macroeconomic environment, GCI

121 101 81 72 65 63 60 59 58 53 50 48 41 29 23 15 8 6 4 1

Ukraine Armenia Modlova Serbia Azerbaijan France Croatia Belgium Saudi Arabia Russia Turkey Georgia Poland Lithuania Latvia Estonia Czech Republic Hong Kong Sweden Norway

137 48

2011-2012 2017-2018

Progress in ranking

Freedom From Corruption

69 31

2012 2017

67 56

2012 2016 Improved by 38 positions in 5 years Improved by 11 positions in 4 years

Freedom from Corruption, Heritage Foundation Worldwide Government Indicator, World bank

Georgian Sovereign Credit Rating

7/1/2007 8/1/2008 4/1/2009 8/1/2009 3/1/2011 12/1/201 1 10/1/201 4 4/1/2015 10/1/201 6 3/1/2017

Progress in ranking

BB BB

• B+

B+ B+ B+ BB

• BB
• BB
• BB
• 12/1/20…

11/1/20… 10/1/20… 5/1/2008 8/1/2008 9/1/2008 4/1/2010 3/1/2011 11/1/20… 5/1/2016

Progress in ranking

B+ B+ B+ B+ B BB

• BB
• B

B+ B+

10/1/201 8/1/2014 3/1/2016 3/1/2017 9/1/2017

Progress in ranking

Ba 2 Ba 3 Ba 3 Ba 3 Ba 3

BB - Stable

Affirmed in May 2017

BB - Stable

Affirmed in May 2017

Ba2 Stable

Affirmed in September 2017

Overview of Georgia’s Transport and Logistics Sector

• Leveraging its location, Georgia’s transport economy can benefit from large addressable transit flows,

growing economies and landlocked resources

• Ports are cost-competitive vs. alternative routes
• Georgia’s existing transport economy is transit based
• Upgrading regional transport infrastructure
• Alternative route through Georgia takes 7-9 days from China to Europe instead of 45 days of

traditional route

Sea Port Roads and Railway International Airports

Poti Sea Port (APM Terminals) Batumi Sea Port (BIH) Kulevi Terminal (SOCAR) Supsa Terminal (BP) Georgian Railway - Total Length: 2,083.9 km Road - Total Length: 20,329 km Tbilisi International Airport (TAV) Batumi International Airport (TAV) Kutaisi International Airport (UAG) Planned Planned Planned

• New Deep Sea Port-Anaklia
• Georgian Railway Modernization

Project

• Tbilisi Railway Bypass
• East-west highway
• Rehabilitation of existing

infrastructure Tbilisi International Airport

• International Cargo terminal

Kutaisi International Airport

• Apron extension
• Cargo Terminal
• Development of the logistic centers

(Tbilisi and Kutaisi)

Baku u – Tbilisi – Kars Ne New Ra Railway C Connection L Line Anaklia ia Deep Sea Sea Port

• Rehabilitation, reconstruction and construction of the 180 km-long railway line
• Capacity: 5 - 15 mln tons, 1 mln passengers
• Anaklia Port will be constructed in 9 phases
• Capacity of the I phase: 8 mln tons / Last phase: 100 mln tons
• Total project cost: USD 2.5 billion Cost of the first phase: USD 600 mln
• Government contribution ≈ USD 100 mln
• The official ceremony of the construction of Anaklia Deep Sea Port was

held on December 24, 2017

Large-Scale Infrastructure Projects

Geo Georgia i is a a mem ember since Octo ctober 2 2016 Geo Georgia i is a a mem ember since e 199 1993

Georgia

Georgia

Development of New Transit Routes and Corridors

Georgia’s Rapid Growth

• GDP Growth +4.7%
• FDI +18%
• Growth in Export +29.4%
• Growth in N of Tourists +18.8% (7.5 mln)
• Zero tax on reinvested profit (+ 0.6 bln GEL of reinvestment in 2017)
• Visa free with EU
• FTA with EU and China

#inves estingeo eorgia