Georgian PM, Economy Minister, Deputies discuss main priorities of 2023

Georgian Prime Minister Irakli Garibashvili and Economy Minister Levan Davitashvili, along with his deputies, on Saturday, reviewed the plans and main priorities of 2023, as well as the dynamics of the implementation of the 2030 development strategy, at the working meeting, the Government Administration said.

The Economy Minister and the deputies briefed Garibashvili on major projects, including the work on the long-term development plan of Tbilisi International Airport and the establishment of a new terminal and airfield infrastructure, to be completed this year. The officials stressed the importance of the project for “ensuring” the rapid economic development of the country and the “growing dynamics” of tourism.

The Anaklia deep-sea port project on western Georgia’s Black Sea coast was also reviewed, which will be 51 percent owned by the state after its completion, and an international competition to select investors will be announced for the remaining 49 percent. The officials said “active negotiations” were underway with potential investors for the project, noting that in the first phase, the port was expected to reach 7.8 million tonnes of throughput per year.

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As was noted at the meeting, the technical-economic analysis and geological survey of the “historic” Black Sea submarine cable project, funded by the World Bank, would be completed in 2023. Under the project, a 1,195 km long cable will provide “high-quality” telecommunications between Georgia and Romania. Implementation of the project will contribute to the strengthening of energy security in Europe and the Caucasus region, the development of the renewable energy sector, as well as the increase of transit opportunities.

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The conversation touched upon major energy projects, with the Georgian officials highlighting the importance of the construction of power plants and the creation of additional capacities. It was stressed that in 2023, power plants with the highest capacity of 105 megawatts would begin operating. The average annual output of the mentioned power plants will be 473 megawatts, with the investment amounting to $140.7 million. As was also mentioned, It was planned to announce an auction of 700 megawatts. 

Gasification plans for about 150 villages, with more than 26,000 additional subscribers to receive natural gas and with around ₾88 million (about $33 mln) allocated for the implementation of the project, were also discussed at the meeting.

As for the internet access project, jointly implemented together with the World Bank, up to 350 km of the fibre-optic infrastructure has already been built and the construction of a 450 km line is still underway. Four new tenders are to be announced for the provision of the internet in new locations, with a total construction of 1,600 km. Western Georgia has been a target geographical area for an internet access project this year and Eastern Georgia will be for 2024.

At the meeting, the head of the Government was also informed of the projects planned for the promotion of entrepreneurship. It was noted that 7,550 new beneficiaries would be financed in 2023 within the framework of the Enterprise Georgia programme, and it was also planned to create 20,000 new jobs and finance up to 2,500 beneficiaries, with a total investment of ₾1.6 million (about $600,000). A “comprehensive reform” of State Owned Enterprises is planned in 2023, for which the strategy and action plan have been already approved. 

The plans of the Economy Ministry for 2023:

• Georgia will act as a Host Country of ITB Berlin in 2023, which is the largest trade fair for tourism in the world. In the given capacity, Georgia will be able to interact with 200 000 visitors and share its travel products with them. There will be 100 000 business visitors at the fair and exposure to a multi-million television audience;
• Work will be completed and Law of Georgia on Tourism will be adopted in 2023;
• Georgia will host a FIS Freestyle Ski and Snowboarding World Championship in 2023. Within the scope of the initiative, new cable lifts were constructed in Bakuriani with artificial snowfall systems, tailor-made water reservoirs and six new contest tracks. Specialised hardware and safety inventory have also been purchased. Almost ₾265 million (about $100 mln) has been invested in the project. The Championship is set to run from February 16 till March 5.
• Large-scale rehabilitation works are planned at Kutaisi International Airport in 2023, total investment budget of which will reach ₾47 million (about $123 mln). Blueprints of the new takeoff and landing slots with 3.5 km will be completed within the scope of the project. Traffic tracks and platforms will be rehabilitated as scheduled. New parking lot will be built in addition for 400 vehicles. Adequate light signalling systems will be upgraded and installed in compliance with international standards;
• Work will be completed on the development strategy of airports in 2023. Initiative is implemented with support of the Asian Development Bank;
• High terrain infrastructure development is planned in 2023-2024, with a total investment value of ₾66.5 million (about $25 mln). Within the scope of the initiative, a cable car will be built in parallel with gondolas in Georgia’s northern Gudauri ski resort. Artificial snow fall system of 9 km will be built as well. Two new ski tracks will be constructed in Hatsvali ski resort in the country’s north-western Mestia (7 km long); 
• Within the scope of legal approximation with the European Union as envisaged in the Association Agreement, the railway transport sector will be reformed in 2023. Initiative aims to create a railway system of European model in Georgia to increase the efficiency, effectiveness and transparency of the sector;
• The Ministry of Economy and Sustainable Development of Georgia will carry out a study together with the World Bank on the feasibility of developing a high-speed railway transport in Georgia. Study aims to enable the development of a high-speed passenger and cargo transportation by rail in Georgia, which will further advance the economy of the country. Study will be used for the design of a Railway Network Development Plan towards a high-speed railway transportation;
• Fourth International Silk Road Forum is intended to be held in autumn of 2023 in Tbilisi. Agenda of the forum will involve several panel discussions with parallel events and bilateral meetings between businesses. Forum will gather high-ranking officials from various countries of the world, international organisations, financial institutions and private sector representatives;
•  Programme of ₾150,000 (about $57,000) Grants will be continued in 2023 to finance innovative start-ups with global scaling potential. Over 150 businesses were funded under the program in previous years and raised private equity exceeded ₾400 million (about $152 mln).
• Programme of ₾25,000 (about $9,500) Small Grants will be launched in 2023 to finance the preliminary innovative ideas in regions of the country;
• The Acceleration Programme will provide for the re-training of 120 start-ups in the coming four years from 2023. It is worth noting that Georgia has been transformed into a Regional Hug as a result of the Acceleration Programme and majority of participants are start-ups from the region;
• Over 10 000 beneficiaries will participate in various programmes for the development of an innovative eco system in 2023;
• Also, 5000 IT professionals will be re-trained in the coming three years;
• It is anticipated to inaugurate three new tech parks nation-wide in addition in Georgia in 2023 and 2024, including those in western Georgia’s Senaki and Kutaisi, as well as southern Akhaltsikhe. It is worth noting that the country acquired seven new tech parks and one innovation centre in 2022.