GEORGIA

CIA FACTBOOK

Georgia has overcome the chronic energy shortages and gas supply interruptions of the past by
renovating hydropower plants and by increasingly relying on natural gas imports from Azerbaijan
instead of from Russia.

Labor force:

1.959 million (2011 est.)

Labor force - by occupation:

Agriculture: 55.6%

Industry: 8.9%

Services: 35.5% (2006 est.)

Unemployment rate:

12.1% (2016 est.)

12% (2015 est.)

Unemployment has also remained high.

The government has received high marks from the World Bank for its anti-corruption efforts. Since 2012,
the Georgian Dream-led government has continued the previous administration's low-regulation, low-
tax, free market policies, while modestly increasing social spending, strengthening anti-trust policy, and
amending the labor code to comply with International Labor Standards.

Georgia’s Labor Code defines the minimum age for employment (16), work hours (41 per week), annual
leave (24 calendar days), and leaves other wage and hour issues to be agreed between the employer
and employee.

Labor Code in July 2013, which included regulations on the termination of employment contracts and
mass dismissal, and it increased the role of the state in the collective dispute resolution process.
Grounds for termination of employment relations were further elaborated; the code defines severance
pay for an employee at the time of termination of a labor relation and its payment term. An employer is
obliged to give compensation of not less than a month’s salary to an employee within thirty (30) days.
According to the amendments, an employer is obliged to give to the dismissed employee a written
description of the grounds for termination within 7 days after an employee requests it. The labor code
also prescribes rules for paying overtime labor (over 41 hours), which must be paid at an increased
hourly rate. https://www.state.gov/e/eb/rls/othr/ics/2015/241569.htm

The amended labor code now specifies the essential terms for labor contracts. These terms include:
the starting date and the duration of labor relations, working hours and holiday time, location of
workplace, position and type of work, amount of salary and its payment, overtime work and its
payment, duration of a paid and unpaid vacation and leave, and rules for granting leave
Employees are entitled to up to 183 days (six months) of paid maternity leave which can be up to 24
months when combined with unpaid leave. Leave taken for pregnancy, childbirth, childcare, and
adoption of a newborn are subsidized by the state.

Under the Labor Code, a contract of employment may bar an employee from using the knowledge and
qualifications obtained while performing his duties with another employer. This provision may remain in
force even after the termination of labor relations.

personal income tax at the rate of 20 percent in 2009

Exports - partners:

Azerbaijan 10.9%

Telephone system:

General assessment: fixed-line telecommunications network has limited coverage outside Tbilisi;
multiple mobile-cellular providers provide services to an increasing subscribership throughout the
country

Domestic: cellular telephone networks cover the entire country; mobile-cellular teledensity roughly 110
per 100 persons; intercity facilities include a fiber-optic line between T'bilisi and K'ut'aisi

International: country code - 995; the Georgia-Russia fiber-optic submarine cable provides connectivity
to Russia; international service is available by microwave, landline, and satellite through the Moscow
switch; international electronic mail and telex service are ava (2015)

WATER AND SEWAGE SYSTEMS - All 85 towns and regional centers have centralized public water supply
systems including 156 headwork intake facilities. These use mainly groundwater or underground water
sources and have a capacity of 3.1 million cubic meters daily. There are 41 towns and regional centers
with sewage systems and 30 more have treatment plants. The total length of water supply networks is
9,500 kilometers (5,903 miles), while sewage pipelines stretch 4,000 kilometers (2,485 miles).

Approximately 60% of water supply systems and 50% of sewage systems are past their service lives.
Repairs and maintenance have not been done for many years at some utilities, leading to frequent
breakdowns, pollution, and loss of water.

POWER AND ENERGY SYSTEMS - Georgia imports the majority of its necessary supplies of natural gas
and oil products. The country has overcome chronic energy shortages and gas supply interruptions of
the past by renovating hydropower plants and relying on gas from Azerbaijan instead of Russia. Since
late 2005, disruption in electricity is nearly a consistent 24 hour a day service due to increased metering,
better billing, reduced theft, management reforms and investments in infrastructure.

Georgia's location between Europe and Asia has enabled it to develop its role as a transportation point
for gas, oil and other goods. The Baku-Tbilisi-Ceyhan oil pipeline and the Baku-Tbilisi-Erzerum gas
pipeline transport oil and gas to Georgia. https://sites.google.com/site/countryofgeorgia/national-
infrastructure

U.S.-GEORGIA RELATIONS

The United States established diplomatic relations with Georgia in 1992 following Georgia’s 1991
independence from the Soviet Union. Since 1991, Georgia has made impressive progress fighting
corruption, developing modern state institutions, and enhancing global security.

The strength of U.S.-Georgia relations is codified in the 2009 U.S.-Georgia Charter on Strategic
Partnership.

The United States and Georgia seek to identify opportunities for U.S. businesses to invest in Georgia,
and for both countries to sell goods and services to each other. They have signed a bilateral investment
treaty and a bilateral trade and investment framework agreement. Georgia can export many products
duty-free to the United States under the Generalized System of Preferences program.
https://www.state.gov/r/pa/ei/bgn/5253.htm

CONTRACTING

But in a country like Georgia, public contracting accounts for 40 per cent of all government spending
and about 10.6 per cent of the country’s GDP (Gross Domestic Product).

POTI

In 2014, total container throughput of Georgian ports was approximately 480,000 TEUs, with Poti's
container volume 80% of this total, or 385,000 TEUs. In 2015, the current Poti Seaport is expected to
handle over 8 million tons of cargo and 400,000 TEUs, with more than 1,300 vessel calls.

Poti is the main base and headquarters for Georgia’s navy. Other businesses include a fishing fleet and
fish-processing as well as the manufacture of dredgers, hydraulic equipment, and electrical equipment.
In 2002, over 47 thousand people lived in the Port of Poti.

three cranes work each ship at Berth 7

There is about 490,840 sq ft (45,600 sq m) of total open staging in the port area.

AMMO The location of the new port in north of Poti might be conducive to ammunition operations.

Stevedoring and Related Terminal Services (S&RTS)

There is no S&RTS contract in place. The port is operated by Poti Port Authority, which would acquire
any services or equipment necessary. The port operates 24 hours a day.
BATUMI

Stevedoring and Related Terminal Services (S&RTS)

There is no S&RTS contract in place. The Batumi Container Terminal is owned and operated by the
International Container Terminal Services, Inc. (ICTSI) a Philippine Company, which would acquire any
services or equipment necessary. The port operates 24 hours a day.
Contains five specialized terminals for oil, containers, rail ferry, dry cargo, and passengers.

The Port of Batumi is connected by road and rail with Turkey, Russia, Central Asia, and the Caucasus. It
handles a variety of cargoes, vessels, and passengers. It contains five specialized terminals for oil,
containers, rail ferry, dry cargo, and passengers.

The oil terminal operates four berths, one of which can accept four tankers at one time. Three berths
total 505 meters long with alongside depths from 10.2 to 12 meters. The Conventional Buoy Mooring
(CBM) can accommodate vessels from 185 to 250 meters long with alongside depth of 13.6 meters. The
terminal specializes in processing crude oil, diesel oil, petrol, and black oil.

The multi-purpose Batumi International Container Terminal has three berths with capacity for handling
300 thousand TEUs of containerized cargo per year. The terminal covers 13.6 hectares and includes the
ferry and dry bulk general cargo terminal. The container terminal berth is 284 meters long with
alongside depth of 11 meters.

The Port of Batumi’s Ferry Terminal has a berth for a rail ferry moving freight between Batumi, Varna in
Bulgaria, Ilichevsk in Ukraine, and Poti in Georgia. The three-decked ferry has capacity for 12.6 thousand
DWT and can accept 108 eight-wheel rail cars. The ferry system is completely automated and handles
about 700 thousand tons of cargo per year.

The dry cargo terminal offers four berths with total length of 834 meters with alongside depths from 8
to 11 meters. The dry cargo terminal handles grains, ore, bags and pallets, general cargo, and wood.

Located within the city center, the Port of Batumi’s Passenger Terminal has two berths. Berth 10 is 200
meters long with alongside depth of 11.6 meters, and berth 11 is 194 meters long with alongside depth
of 8.25 meters.