Page 42 - GEORptSep18

The Georgian government has in recent years sought to diversify its power mix by incorporating renewable and clean energy sources in order to contain its dependence on imports of Azerbaijani gas. In addition to their contributions to mitigating climate change, these projects will also help Tbilisi manage its current account deficit, which has been on the rise and which is financed largely with foreign borrowing.
9.2 Major corporate news 9.2.1 Oil & gas corporate news
Tbilisi gas provider Kaz TransGas has announced that gas tariffs are to rise for Tbilisi enterprises and companies from September 16, moving up from Georgian lari (GEL) 0.75 per cubic metre to GEL 0.80, Georgia Today reported. The Kazakh company reportedly said that the price increase was necessary to secure funds to complete all ongoing works on gas supply networks in the capital. Even after the increase, the company’s tariffs would still be the lowest in the country, KazTransGas said.
“For commercial customers, the gas price in the regions is 0.86 GEL (including VAT),” KazTransGas – Tbilisi reportedly said, adding that the tariff would increase for 15,000 commercial customers out of 500,000 customers in the capital. “The issue has been studied by the Georgian National Energy and Water Supply Regulatory Commission and the price increase has been substantiated,” the company added.
The daily quoted gas industry analyst Gia Jandieri as saying that after the gas tariffs are put up, the State should reduce some other taxes in order to promote small businesses. “When businesses see increased taxes, of course this will affect the product prices... In order to overcome these challenges, the government needs to act,” he said.
“The price of flour has been increasing and now if the gas tariff goes up too, the cost of bread will be up for sure,” one bakery owner was cited as saying. “Generally, we do not dictate to the commercial sector what price should be imposed. This is not our prerogative,” the report quoted Minister of Economy and Sustainable Development Giorgi Kobulia as saying.
9.2.2 Transport corporate news
Georgia’s Tegeta Truck and Bus has won a GEL45mn (€18mn) contract to provide 90 new buses for the Tbilisi city transport system, a statement from the city authorities said. Tbilisi’s old yellow buses — the newer eco-friendly buses in operation are painted blue — are a frequent cause of complaint in the city due to their emissions. City mayor Kakha Kaladze stressed at a meeting on August 8 that upgrading the public transport system is one of his team’s priorities. “[I]n 2018-2019, the buses will be fully renovated and yellow buses, which are a serious discomfort for the city and passengers, will be completely replaced,” Kaladze said, announcing the decision to award the contract to Tegeta. The company will provide the 90 new buses in stages, not later than nine months after the contract is concluded. Kaladze has previously talked of the importance over overhauling the capital's transport system to reduce air pollution. While acknowledging that the old yellow buses are a contributor, he also stressed that "cars are also a problem. More than 500 000 cars are moving in the city. More than 50% of these are in critical condition." In June, the Tbilisi mayor called for a ban on used car imports.
42 GEORGIA Country Report September 2018 www.intellinews.com