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 1 Hong Kong Progress in ranking 2 Singapore 3 New Zealand 4 Switzerland 5 Ireland 6 14 UK 7 Mauritius 8 Georgia 10 Estonia 8 11 Canada 11 US 13 Lithuania 17 Latvia 29 Armenia 81 Turkey 2012 2015 96 Moldova 100 Russia 114 Azerbaijan

Georgia In International Rankings – 2017/18 Property Rights Component 1 Finland 2 Switzerland Progress in ranking 5 New Zealand 23 Germany 46 Georgia 120 47 Spain 48 Czech Republic 53 China 61 Armenia 67 Turkey 46 68 Lithuania 83 Poland 87 Latvia 113 Croatia 116 Russia 2011-2012 2017-2018 126 Moldova 128 Ukraine

Georgia In International Rankings – 2017/18 Effect of Taxation on Incentives to Invest, GCI Progress in ranking 1 United Arab Emirates 14 Georgia 15 Kuwait 22 Germany 29 Azerbaijan 35 32 Saudi Arabia 46 Montenegro 48 Czech Republic 49 Canada 60 Armenia 14 66 Sweden 72 Turkey 91 Moldova 97 Poland 104 Russian Federation 118 2011-2012 2017-2018 Latvia 123 Croatia 129 Ukraine

Georgia In International Rankings – 2017/18 Burden of Custom Procedures, GCI 1 Singapore Progress in ranking 11 UK 14 Georgia 16 Austria 17 Germany 28 27 Slovenia 30 Hungary 34 Czech Republic 43 Lithuania 14 46 Poland 57 Azerbaijan 60 Latvia 76 Russian Federation 80 Turkey 86 2011-2012 2017-2018 Moldova 87 Serbia 91 Armenia 126 Ukraine

Georgia In International Rankings – 2017/18 Doing Business 1 Singapure 2 New Zealand 3 Denmark 10 Macedonia 12 Estonia 14 Latvia 16 Georgia improved by 96 positions in 11 years 21 Lithuania 24 Poland  The Top Improver since 2006 in EE&CA and globally - With 44 27 Czech rep institutional and regulatory reforms 30 Slovenia  In 2017 Georgia is listed amongst regional leaders on the total 33 Slovakia 38 count of reforms Armenia 40 Russia 65 Azerbaijan 69 Turkey 80 Ukraine 112 Georgia (2006)

Georgia In International Rankings – 2017/18 Doing Business: Number of procedures to start a business, GCI 1 New Zealand 2 Azerbaijan 7 Georgia Progress in ranking 7 Estonia 7 Singapore 7 Sweden 18 United Arab Emirates 8 18 Lithuania 18 Netherlands 18 Ukraine 36 France 36 Moldova 36 Serbia 7 53 Switzerland 53 USA 70 Turkey 91 Czech Republic 91 Croatia 91 Japan 2011-2012 2017-2018 104 Germany 131 Saudi Arabia

Georgia In International Rankings – 2017/18 Doing Business: Investment freedom 1 Luxembourg Progress in ranking 2 Estonia 2 Hong Kong 21 Georgia 21 Armenia 36 37 Croatia 37 Latvia 37 Poland 37 Turkey 21 37 Israel 59 Lithuania 59 Serbia 89 Macedonia 103 Azerbaijan 135 Kazakhstan 135 United Arab Emirates 2012 2017 154 Moldova 154 Russia 154 Belarus 160 Ukraine

Georgia In International Rankings – 2017/18 Macroeconomic environment, GCI 1 Norway 4 Sweden Progress in ranking 6 Hong Kong 8 Czech Republic 15 Estonia 23 Latvia 29 Lithuania 137 41 Poland 48 Georgia 50 Turkey 53 Russia 58 Saudi Arabia 48 59 Belgium 60 Croatia 63 France 65 Azerbaijan 72 Serbia 2011-2012 2017-2018 81 Modlova 101 Armenia 121 Ukraine

Freedom From Corruption Worldwide Government Indicator, World bank Freedom from Corruption, Heritage Foundation Improved by 38 positions in 5 years Improved by 11 positions in 4 years 67 69 31 56 2012 2016 2012 2017

Georgian Sovereign Credit Rating BB - Stable BB - Stable Ba2 Stable Affirmed in May 2017 Affirmed in May 2017 Affirmed in September 2017 Progress in ranking Progress in ranking Progress in ranking Ba 2 BB Ba Ba Ba Ba BB BB BB BB BB BB BB 3 3 3 3 - - - - - - - B+ B+ B+ B+ B+ B+ B+ B+ B+ B+ B B 12/1/20… 11/1/20… 10/1/20… 11/1/20… 10/1/201 8/1/2014 3/1/2016 3/1/2017 9/1/2017 7/1/2007 8/1/2008 4/1/2009 8/1/2009 3/1/2011 12/1/201 10/1/201 4/1/2015 10/1/201 3/1/2017 5/1/2008 8/1/2008 9/1/2008 4/1/2010 3/1/2011 5/1/2016 0 1 4 6

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 Tbilisi International Airport (TAV) Georgian Railway - Total Length: Poti Sea Port (APM Terminals) Batumi International Airport (TAV) 2,083.9 km Batumi Sea Port (BIH) Kutaisi International Airport (UAG) Road - Total Length: 20,329 km Kulevi Terminal (SOCAR) Supsa Terminal (BP) Planned Planned Planned • Georgian Railway Modernization Tbilisi International Airport • New Deep Sea Port-Anaklia Project • International Cargo terminal • Tbilisi Railway Bypass Kutaisi International Airport • East-west highway • Apron extension • Rehabilitation of existing • Cargo Terminal infrastructure • Development of the logistic centers (Tbilisi and Kutaisi)

Large-Scale Infrastructure Projects Anaklia ia Deep Sea Sea Port Baku u – Tbilisi – Kars Ne New Ra Railway C Connection L Line • Anaklia Port will be constructed in 9 phases • Rehabilitation, reconstruction and construction of the 180 km-long railway line • Capacity of the I phase: 8 mln tons / Last phase: 100 mln tons • Capacity: 5 - 15 mln tons, 1 mln passengers • 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

Development of New Transit Routes and Corridors Georgia i Geo is a a mem ember since Octo ctober 2 2016 Geo Georgia i is a a mem ember since e 199 1993 Georgia Georgia

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

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