Page 55 - GEORptApr21

9.1.4 Automobile sector news
Promised production of electric cars with Chinese partner in Georgia delayed another year
The planned production of the first electric cars in Georgia has been postponed to 2022, Georgian Economy Minister Natia Turnava has said. A plant for the manufacture of electric vehicles, to be located in Kutaisi, western Georgia, is to be run by the Georgian aigroup in partnership with Chinese state-owned automobile maker Chang’an Automobile. Land was awarded for the factory and it was supposed to start operations as soon as 2020, with plans to sell the electric cars coming off its production lines domestically and in European Union member states.
However, in a perhaps worrying sign, the website of Aigroup has been suspended.
“Industrial holding aigroup brings together aicar, aienergy, aipower and aiproduction. aigroup focuses on environmentally friendly projects and gives them the priority,” the company’s Linkedin account reads.
There is scarce information on Big Service Ltd, the project company set up by aigroup Chang’an Automobile.
Under a contract signed with authorities, when the land was passed over for the factory in return for a symbolic fee of one Georgian lari in July 2019, the investors promised to start production by April 27, 2021 at the latest. The fine set for failing to meet the deadline was equally symbolic, though: 550 lari ($18) per day.
Turnava said that the coronavirus pandemic prevented the investor from starting production and that the company would be given extra time to fulfil its obligations.
“It is so important for us to develop a green economy and at the same time strengthen Kutaisi as an industrial centre. We will support the investor to fulfil this task", Turnava said.
“Big Service Ltd was given land and buildings located on it worth [Georgian lari] GEL68.23mn ($23mn) for GEL1 in 2019 with investment commitments to set up an electric car manufacturing factory within no more than two years (no later than 27.05.2021) and then produce at least 5,000 units of electric cars within no more than 18 months,” Agenda.ge recapped.
In addition, the company was obliged to employ at least 300 people for at least 18 months within a period of not more than one year after fulfilling the obligation to launch the factory.
9.1.5 Tourism sector news
Georgia loses $700mn in tourism revenues in Aug-Sep alone
Foreign visitors in Georgia spent only $15.6mn in September, some 95% less than in the same month last year, according to a report released by the National Bank of Georgia (NBG).
Across August and September, Georgia's tourism revenue shrunk by $700mn compared to the same period of last year.
The decline in tourism revenues in September amounted to $303mn, on top of the $397mn drop in August. The central bank attempted to maintain balance in the foreign exchange market by selling FX from reserves it built up to be robust, but it is hard to offset such a deep drop in inflows.
In 2019, Georgia received a record number of visits from international travellers, some 9.36mn, of which 5mn visits were tourists. The tourists spent more than $3bn in the country. Georgia expects to receive $1.5bn in external financing this year, part of which will be used by the central bank to try to maintain a satisfactory nominal exchange rate.
A total of 50,499 international visitors crossed into Georgia in September.
55 GEORGIA Country Report April 2021 www.intellinews.com