Page 57 - GEORptSep21

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
Israel removes Georgia from travel red list
Georgia’s May tourism figures show strong rebound
Israeli tourists will be able to visit Georgia again starting September 1, but will be subjected to self-isolation or quarantine upon their return home, following a decision made by the Israeli government to remove Georgia from the coronavirus travel red list and place it on the orange list.
“We’re delighted to announce that as of yesterday the Israeli government no longer considers Georgia to be a ‘red country’, but ‘orange,’” announced the Embassy of Israel in Tbilisi.
Israel removed Georgia from the ‘safe country’ list on July 30 following a sharp increase in coronavirus cases in the country.
A report on tourism in May showed 104,700 visitors arrived in Georgia, marking a monthly record since the beginning of the pandemic.
The flow of visitors was 180% higher y/y, but the figure should be adjusted for the low base, as the country was under lockdown in May 2020.
57 GEORGIA Country Report September 2021 www.intellinews.com