NEWS / Tbilisi Belt & Road Forum Accomplished

07 December 2017

Tbilisi Silk & Road Forum has been completed. The forum was held under the patronage of the Prime Minister of Georgia, Giorgi Kvirikashvili on 28-29 November. Official delegations from 34 countries and about 2000 delegates from over 60 countries attend the forum.

Ukrainian and Moldovan Prime Ministers, Vice Prime Ministers of some country’s, other high-rank officials and representatives of the diplomatic corps and international organizations (including the European Union, the European Bank for Reconstruction and Development, the European Investment Bank, the Asian Development Bank, the World Trade Organization, the Gulf Cooperation Council, the Universal Postal Union, the Intergovernmental Organization for International Carriage by Rail, the World Customs Organization, the Telecommunications Development Bureau, etc.) as well as the internationally recognized experts and the Journalists.

Local and international business representatives – 1100 business person including over 500 foreign companies - also attended the Tbilisi Belt & Road Forum.

Dozens of bilateral meeting were held during the Tbilisi Belt & Road Forum including the meetings of the high political officials, the Government and the private sector representatives as well as the bilateral meetings among the business representatives.

The main focus of the meetings and the panels of the Tbilisi Belt & Road Forum was the significance of the One Belt, One Road Initiative. It was highlighted that Georgia is gradually becoming transport, investment, logistic and service hub of the entire region. This fact was emphasized by the political leaders, representatives of the international organizations and private sector and they also made statements regarding the future projects.

Prime Minister of Ukraine, Volodymyr Groysman emphasized the development of the corridor between East and West: “There are significant directions between Asia and Europe as well as the Baltic states. In terms of these corridors, Ukraine can be a reliable partner. As the Prime Minister of Georgia, Giorgi Kvirikashvili stated before, we really can create a union of Georgia, Azerbaijan and Ukraine via provision of the railway and ferry transportation services.”
Prime Minister of Moldova, Pavel Filip talked about the necessity of the further enhancing of the cooperation between the countries of the region in order to achieve the goals of the Silk Road. “One Belt, One Road Initiative can become an effective mechanism in terms of achieving our common aspirations and globalization of economy, which will enable us to accomplish the goals,” – the Prime Minister of Moldova stated.
Deputy Prime Minister and Minister of Foreign Affairs of Slovenia, Karl Erjavec talked about Georgia’s role in the Belt & Road initiative implementation. As Karl Erjavec said, “Slovenia plans to closely cooperate with Georgia: “Slovenia and Georgia have many things in common. We have develop excellent relations with Georgia and I believe that our economic cooperation will go even deeper.”
Alain Pilloux, the EBRD Vice President, gave the positive evaluation of the Georgia’s activity in terms of international projects as well as with regard of the implemented reforms stipulated by the 4-point plan of the Georgian Government. “Georgia is a second-wave reforms leader in Eastern and Central Europe and this is an obvious progress. Georgia’s openness and readiness, its progressive approach to trade, active cooperation with China as well as with the EU within the framework of the Deep and Comprehensive Free Trade Area Agreement, is more than welcoming,” – the EBRD Vice President noted.
Vice President of the ADB, Wencai Zhang discussed the on-going and planed project in Georgia. “We managed to do many things in Georgia. We now talk about the 3 billion USD investments, which will serve to connect Georgia with the neighboring countries and transform your country into some kind of hub. It is also planned to implement the large-scale projects including East-West highway and the North-South high-speed line. We will actively engage in this projects, which will further strengthen our relations with Georgia.
Deputy Secretary General of the WTO, Yi Xiaozhun claimed that upon the full-scale implementation of the One Belt, One Road Initiative it will become possible to provide rapid links between demand and realization of the goods, it will generate the inclusive trade and ensure closer ties between Europe and Asia.
According to Vazil Hudák, the Vice President of the European Investment Bank, it is planed to allocate EUR 8 billion for the implementation of various projects for Eastern Partnership countries: “In 2016, we have invested a record amount of investments in the Eastern Partnership countries (1.6 billion EUR). Our goal is to provide 8 billion EUR for the credits for Georgia, Armenia, Moldova and Ukraine.” As Vazil Hudak stated, the European Union and the Eastern Partnership countries are closely cooperating in various fields including the transport safety and economic ties.
Minister of Tolerance of the United Arab Emirates Sheikh Nahyan bin Mubarak Al Nahyan stressed on the fact that there are all the conditions in Georgia for doing business. As the Sheikh stated, he plans to double the amount of investments in the following two years.
The CEO of the Georgian Industrial Group, Zurab Gelenidze stated that the construction of the 300 MW Coal Power Plant is a large-scale project, which will be implemented in full compliance with the environmental standards.
Nenskra Hydropower Plant Vice Chief Executive Officer, Taekwon Seo presented to the public the details of the project. According to Taekwon Seo, financial part of the project will be accomplished in 2018, the plant will be partly generated in 2021 while it will become fully operational in 2023. “Nenskra Hydropower will significantly reduce the import of the electricity to the country, especially during the winter season. Georgia should become the energy hub in the region. We will need to employ over 3000 workmen during the construction process,” – Taekwon Seo stated.

Ten topical panels were held on 28-29 November within the framework of the Tbilisi Belt & Road Forum, which are as follow:

High Level Dialogue on Belt and Road Connectivity for Stability ( welcoming panel);
Trade Facilitation along Belt and Road Initiative: Session I – Trade Facilitation;
Trade Facilitation along Belt and Road Initiative: Session II– E-commerce;
Transport Infrastructure;
Energy - Transregional Opportunities (Oil, Gas and Electricity);
Digital Connectivity;
New Gateway for Opportunities;
Capture the Investment Opportunities: Session I - Investing and Trading Opportunities in Georgia;
Capture the Investment Opportunities: Session II - Georgia - Regional Frontier for Global Investments;
CAREC 2030: Connecting the Region for Shared and Sustainable Development.

Delegates of the Georgian Government to the Tbilisi Belt & Road Forum introduced to the guest of the Forum Georgia’s economic situation including the business climate, investment environment, transit capacities, trade peculiarities, energy resources, customs and taxation systems, tourism opportunities, etc. The need of further strengthening of the cooperation between the countries was especially highlighted.

At the same time, Tbilisi Belt & Road Forum became the platform for signing of several exceptionally significant documents:

First Vice Prime Minister of Georgia, Minister of Economy and Sustainable Development Dimitry Kumsishvili and the Deputy Minister of Commerce of the People’s Republic of China, Qian Keming, within the frames of the Tbilisi Belt & Road Forum, signed the Memorandum of Understanding between Georgia and the People’s Republic of China on Cooperation for Development of Economic Zones and Facilitation Industrial Powers. The memorandum aims to further develop economic and trade relations through cooperation in trade, investments and improvement of industrial opportunities as well as the building of the platforms for the cooperation between the businesses and strengthening of the industrial clusters.
The Memorandum of Cooperation was signed by the representatives of the Baku International Sea Trade Port and the Kazakhstan Port of Kuryk and the CEO of the Anaklia Development Consortium. Agreements between the ports will facilitate the development of the trans-Caspian corridor and create competitive conditions for the freight transportation upon the completion of the Anaklia port. In the nearest future, the Anaklia Port plans to sign a memorandum of cooperation with the Romanian port of Constanta.
On November 28, the affiliated company of the JSC Georgian Railway, the GR Logistics and Terminals signed the Memorandum of Cooperation with the affiliated company of China Railway, the International Transport Multimodal Company CRIMT and the company Lianyungang New Silk Road International Container Development. These Memorandums of Cooperation will facilitate the deepening of the relations between the companies, creation of the joint working groups and increasing the transit flows from China to Turkey, Europe and Ukraine through Georgia and via the trans-Caspian corridors. They will also contribute to the rapid development of the transit capabilities of the country.
Three important financial documents were signed on November 29. The European Investment Bank (EIB) and the European Investment Fund (EIF), which are jointly recognized as the EIB Group, have signed three agreements with Georgian banks, which will provide more than 90 million EUR targeted at facilitation of Georgian small and medium enterprises. In particular, the European Investment Bank and the TBC Bank signed two agreements: 1. InnovFin Treaty for Georgian Small and Medium Sized Innovative Enterprises and Average Capitalization Companies; 2. Guarantee Agreement within the EU4Business initiative aimed at providing small loans to small and medium enterprises. The third contract was signed by the European Investment Bank with Credo Bank to support the credit line of approximately 12 million GEL, which will support Georgian micro and small enterprises projects.

Several significant and interesting fact also were recorded within the Tbilisi Belt & Road Forum including the following:

First Vice Prime Minister of Georgia, Minister of Economy and Sustainable Development Dimitry Kumsishvili, within the frames of the Tbilisi Belt & Road Forum, held a meeting with the Minister of Transport, Maritime and Communication of Turkey, Ahmet Arslan. Issues related to the cooperation of the two countries in the transport sector were discussed during the meeting. Special accents were made on the Baku-Tbilisi-Kars Railway, which is scheduled to be launched in 2018. Prospects of further development of the project was also discussed at the meeting.
It was established the Georgian National Construction Foundation. The Shanghai largest energy company CEFC and the Partnership Fund joint company - the Georgian National Construction Foundation, will provide a new investment platform and a solid financial instrument for the implementation of the business projects. Cooperation will cover trade, investment and cultural sectors. The official signing ceremony at the Belt & Road Forum was introduced by the Luxembourg-based affiliated company of the CEFC Shanghai Financial Service Co., Ltd – Georgia Investment SCS and the affiliated company of the Partnership Fund – the East West Bridge.
President of Venice Port, Pino Musolino said at the Tbilisi Belt & Road Forum that the Port plans to take active part in the One Belt, One Road initiative. For this purpose, the management of the Port intends to hold meetings with the relevant state agencies, representatives of the private sector and the management of the Ports of Batumi and Poti.

The panels of the Tbilisi Belt & Road Forum were moderated by the world-known experts and journalists such as Dr. Anil K. Gupta (Michael Digman Chair & Professor, The University of Maryland at College Park, USA ), Axel Threlfall (Editor-at-Large, Reuters), Aaron Heslehurst (BBC World News presenter), Eithne Treanor (Managing Director, E.Treanor Media), Matthew Oresman (Counsel of Pillsbury Winthrop Shaw Pittman), Melinda Crane (Chief Political Correspondent, Deutsche Welle TV), Ian Burrell (Famous Media Consultant) and Safdar Parvez (Director of Regional Cooperation and Operation Division of the Central Asia Department, ADB).

Reporting of the Tbilisi Belt & Road Forum involved over 100 local journalist as well as the representatives of the international media including Euronews, BBC, Bloomberg, Deutsche Welle, The Economist, Al Jazeera, The Guardian, etc.