Page 40 - GEORptFeb19

through the creation of a network of innovation hubs in selected cities and town; the provision of innovation services; ensuring financing through technical assistance and matching grants; and project implementation support.
9.1.7 Retail sector news
Global wine production rebounded in 2018 after last year’s historically low harvest, with some of the East European wine producers expecting massive hikes in output this year. Georgia is expecting the biggest hike among all the main wine producers, with this year’s harvest expected to come in at 2.0 hectolitres ( mhl) — up 57% compared to 2017, said the International Organisation of Wine and Vine in newly released data.
The country exported 45.4mn 0.75 litre bottles of wine to 50 countries around the world in the first seven months of 2018, a 19% increase compared to the same period of 2017. In value terms, the increase was even sharper; Georgia sold $90.3mn worth of wine overseas during the period, a 28% y/y hike. “Georgian wine exports have been increased in Georgian wine strategic markets both in Europe and Asia, as well as in US and other traditional markets,” the National Wine Agency that provided the data said in a statement on August 7.
Russia was the top export market for Georgian wine, buying over 28.5mn bottles in the seven months. Russia was followed by Ukraine (5mn bottles), China (3.5mn), Kazakhstan (2.0mn) and Poland (0.9mn).
While all these are well-established markets for Georgian wines, the data also showed that Georgian producers are making inroads in a diverse range of markets. Sales to Japan were up by 124% to 166,032 bottles in the first seven months of 2018, while exports to South Korea rose by 130% albeit to a still modest 40,980 bottles, and Georgia managed to hike sales to Romania by a stunning 390% to 84,654 bottles. Other markets that are saw a sharp increase in sales included Kyrgyzstan (up 81%), the UK (67%), the Czech Republic (68%) and Kazakhstan (41%).
9.1.8 Renewable energy sector news
The board of the European Bank for Reconstruction and Development (EBRD) will discuss on November 28 a $30mn loan that the Turkish group Anadolu would use to develop a $88.7mn hydropower plant in Georgia, Kheledula HPP. The project was agreed in December 2016.
Anadolu in 2014 completed the largest hydropower plant built in Georgia for 40 years: a 85MW plant, at a cost of $200mn, located on Paravani river in the southern part of the country close to Turkey. The EBRD approved at that time a $52mn loan to support financing the power plant. The World Bank Group's International Finance Corporation contributed $40.5mn and another $23mn was raised from commercial banks.
Of relatively small size and using environmental-friendly technology, the new Kheledula HPP project was rated by the EBRD as Class A for its moderate environmental and social impact.
The EBRD’s loan would be part of a $60mn financing package with the remaining part mobilised from third parties.
The borrower is a special purpose vehicle established in Georgia to develop, construct and operate the project. It is majority-owned and controlled by the Anadolu Group, a large Turkish conglomerate partially listed on the Istanbul Stock Exchange.
The power plant with a capacity of 51MW is to be developed on the Kheledula
40 GEORGIA Country Report February 2019 www.intellinews.com