Page 22 - bne IntelliNews Georgia country report November 2017

This is the China-led multilateral lender's first project in Georgia and the South Caucasus.
Founded two years ago with $100bn in capital aimed at financing the new Silk Road, AIIB has focused its financing efforts on Central and South Asia until now. Its investment in Georgia speaks to the importance of the small, but strategically located South Caucasus country, with which China also agreed to the first free trade agreement (FTA) in the region earlier this year.
Authorities in Batumi are seeking to build a bypass road in order to avoid national roads crossing tourist and residential areas in Batumi. The project is expected to be launched this year and be completed in 2022.
AIIB also signed an agreement with the Asian Development Bank (ADB) on June 16 to cooperate on the project. ADB has more experience financing projects in Georgia, having invested some €108mn in infrastructure projects in the country to date.
6.0 Public Sector 6.1 Budget
Georgian finance ministry forecasts €20.6mn surplus in 2017 budget draft
Georgia's finance ministry has drafted 2017's budget targeting a surplus of GEL54mn (€20.6mn), versus a deficit of GEL2mn budgeted for 2016, agenda.ge reported on October 3. In releasing its draft budget for 2017, the ministry said that it anticipated revenues to the tune of GEL8.71 and expenditures of GEL8.17bn, although it allocated an overall GEL10bn for state agencies and public investment projects.
The ministry amended a previous version of the draft which stipulated GEL10.55bn in expenditures, some 9% of which was to be financed through external borrowing. The ministry said that it modelled its 2017 budget based on this year's performance. Between January and September, instead of the anticipated modest deficit, the ministry reported a “significant” surplus of GEL140mn.
22 GEORGIA Country Report November 2017 www.intellinews.com