Page 49 - GEOGRptJun19

Minister of Internal Affairs Giorgi Gakharia, after the clash, said that the construction of the hydro power plant would continue if it was supported by 90% of the population. His statement hinted at the complex situation in Pankisi Gorge: an ethnic group called Kists with Chechen roots form the majority (75%) of the population in the isolated region in northern Georgia that encompasses nine villages (around 8,000 local inhabitants). Following the Chechen crisis in the 1990s, thousands of refugees fled over the mountains into Georgia, and many ended up settling in the Pankisi Gorge area.
“As for the hydro power plant the builders will continue negotiations with you over this issue and the decision will be based on the agreement with the population. But you must know one thing: throwing stones is not the way out. We must calm down now and do what is suitable for our brotherhood, relationship and centennial history,” Gakharia said.
He added: “We have put the issue of the hydro power plant aside and agreed – the HPP will be built when 90% of the population support it.”
9.1.10 Utilities sector news
Georgia is to privatise its postal services run by Georgian Post, economy minister Giorgi Kobulia said in a Bloomberg interview, after which he explained the policy to local media .
The country’s railway transport company will be unbundled, its railway transport market will be opened up to private operators and the electricity system privatisation might resume, he also reportedly said.
The privatisation option was under consideration for the railway company Georgian Railway, but only after a company reorganisation including the unbundling of the railway infrastructure and transport functions, Kobulia added. As part of the railway transport system restructuring, the government wants to encourage more involvement of private railway operators, while the infrastructure management company would operate separately.
Georgia has to restructure its railway transport and electricity systems under the EU-Georgia Association Agreement. It must also implement EU directives on railway transport, which require the infrastructure segment to be segregated by 2022.
Similar restructuring plans are envisaged for the Georgian electricity distribution. Under the Association Agreement and the Energy Community Treaty, Georgia has to implement the Third Energy Package into its national legal framework.
"We need to increase the efficiency of these companies in order to privatise them," said Kobulia in relation to Georgian Railway and State Electrosystem. According to Kobulia, the plan is to eventually privatise State Electrosystem. Its selloff was suspended in 2011 in the face of "challenges" on the market.
9.2 Major corporate news 9.2.1 Oil & gas corporate news
Azerbaijan has moved further into securing more value from its huge gas resources with the launch of the country’s first urea plant by the State Oil Company of the Azerbaijan Republic (SOCAR).
Production at the €800mn installation in Sumqayit Industrial Zone outside Baku began on January 16, according to officials. Around 70% of the plant’s urea (aka carbamide) production is likely to be exported to Turkey, Georgia and
49 GEORGIA Country Report June 2019 www.intellinews.com