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"Business Resonance" : The Co-investment Fund’s Projects Hung in the Air |
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 Despite the fact that the fund's management announced that 10 projects worth 1.1 billion USD had been approved, none of them have been launched yet.In 2013, the government announced its intention to attract investments worth $ 2 billion. It is now obvious that the plan was not feasible. The reasons for the failure were explained by objective delays in the formation of the Co-investment Fund , which was supposed to work with investors offering them real projects , etc. In addition, a political factor was given as an argument – elections, change of power, cohabitation, standby from the business , etc.But the election is over, the transition period is over, the fund has was created, according to Ivanishvili , 6 billion USD are mobilized, 10 projects totaling 1.1 billion USD are approved.After that, everyone had the expectation that in the near future at least a part of these projects would be launched , and finally, promised jobs would be created.However, "Business Resonance " was told at the Fund that the approval of the project does not mean its implementation. The project will be handed over to investors, they would consider it, and if they deem it profitable , then a decision on funding will be made. It turned out that at this stage the projects have no investors. We know about 10 virtual projects the same thing we knew a few months ago - they relate to energy, real estate tourism and agriculture. Yet we know that the milk processing plant is planned to be built for 50 million USD, hydroelectric power plants with a capacity of 400 MW as well as several hotels. And no other specific details.As for the Partnership Fund, it selects the projects in accordance with the economic potential and influence on economic development.At this stage, the fund has implemented several projects - two hotels in the regions, pig farm , moreover, the construction of thermal power plant of 230 MW and worth 200 million is being carried out jointly with the Turkish "Chalik Group" . The construction of Anaklia port on the Black Sea and valued at $ 500 million is also planned – at this stage an investor is being searched. The Fund is also in talks about the construction of another hydroelectric power with the capacity of 210 MW and valued at 628 million USD.Thus, at this stage the Fund is engaged only in two major projects - besides one of them yet has no investor, and it’s unclear when the second will begin. "The fact is that with respect to these two funds we have only virtual information. A fact that the Fundwill facilitate investments – these are only words. Time to time we hear that the fund’s capital is growing, but it is not expressed in specific projects," - said the expert Giorgi Abashishvili. According to the expert Irakli Lekvinadze, there are certain expectations in respect of funds that they can bring serious capital to the country. The Co-investment Fund should attract large investments in energy, real estate, agriculture , and infrastructure. But so far we have almost no information about the projects. Specifically, it is known only that the Ukrainian company " Terra Food" plans to build a milk processing plant in western Georgia. But there is virtually no information even on this project. I also know that many local companies have offered their projects for consideration by the fund, but there is no result, "- said the expert .At the same time , against the backdrop of failure of an investment plan for 2013 , Director of the National Investment Agency Giorgi Pertaia said that in 2014 a rapid growth of investment was expected. "The growth will begin in 2014. If the country is stable, then the second half of the year will be very successful. Besides, there is nothing surprising in the fact that amid two elections , the investment climate has worsened,"- Pertaia notes.However, while promises remain promises, and none of them have yet developed into a real business.
Source: commersant.ge
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March 12, 2014
