Page 50 - GEORptNov18

KTGT to recover $40mn of overdue debt, a move which KTG disputed.
That same year, following a court ruling, the Georgian authorities dismissed KTG’s general manager, replacing him with its own appointee. Subsequently, KTG formally lost control of KTGT despite having 100% ownership. Georgia and Kazakhstan engaged in multiple intergovernmental discussions on the issue of KTG restoring control over KTGT between during 2009-2015, but no progress was made.
In September 2015, KTG submitted a pre-arbitrage notice to the Georgian government. Moody's considers the sale of KTGT as a better alternative to a costly international arbitration process. KTC is expected to generate $30mn-$50mn from the sale, according to Moody's estimates.
9.2.2 Transport corporate news
A plan to establish a joint venture between Czech Skoda group and a partner in Georgia to produce locomotives for regional countries was discussed on the occasion of Czech Industry and Trade minister Marta Novakova's visit to Tbilisi on September 14. Notably the discussion comes amid plans of Swiss company Stadler Rail to construct a manufacturing plant in Georgia. It has been discussed repeatedly with Georgian authorities. Novakova met Minister of Economy and Sustainable Development Giorgi Kobula. The envisioned locomotives would serve both Georgian Railways and be exported to neighbouring countries, including Russia, Ukraine and Azerbaijan. Czech companies are also interested in participating in state tenders in connection with the supply of electric buses in Tbilisi and Batumi.
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.
9.2.3 Metallurgy & mining corporate news
Georgia’s Interior Ministry on July 16 said four miners were killed and six were injured when a methane explosion caused the roof of a tunnel in a coal mine to collapse. In a statement, it said that the accident occurred early on July 16 at the Mindeli mine in Tkibuli, about 200km west of the capital, Tbilisi. An investigation was launched to discover whether any safety standards had been breached, the ministry added. In April, an accident in the same mine k illed six miners and injured three. The mine is operated by Georgian company Sakhnakhshiri. In its statement on the April incident, Sakhnakhshiri said the cause was a shock effect triggered by a rock burst, a
50 GEORGIA Country Report November 2018 www.intellinews.com