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More Enterprises Are Created in Georgia

Within the framework of State Program “Produce in Georgia” two new plants are being established, – Government has approved allocation of funds for the construction of mineral products factory in the village Geguti of Tskaltubo municipality and innovative plant of wood processing in Lanchkhuti municipality.

In Lanchkhuti municipality, a fast-growing forest nursery will be planted on the land that has been transferred with long-term lease, which requires an investment in an amount of 2.5 million dollars; also, the company plans to build a wood processing factory that will employ innovative, environmentally friendly technologies to produce wood pellets.

“It’s a new word in the economy and a very important project,” – the Prime Minister stated. Based on the practical needs identified while implementing the hotel industry segment of the state program, relevant amendments will be introduced to “Produce in Georgia”.

The amended provisions envisage lowering of the amount of minimum amount of loan from half a million GEL to 200 thousand GEL, while increasing the maximum limit to 2 million GEL.

“Preliminary analysis revealed that the amount of the maximum limit of the loan could not ensure the quality construction of the hotels and we consider that this change will boost participation in the program”, – Prime Minister noted.

The government has recently approved the component of hospitality network development. The program envisaged state co-financing of interest expenses, 50% of the cost of guarantees required by the bank are covered by the state, the state also ensures provision of required land and property and invitation of foreign experts in case of necessity.

Prime Minister’s Press Office