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Infrastructure

Georgia is in a highly strategic location in that it serves as an entry gate to the Caucasus and Central Asia. Transport corridors are breathing new life into the ancient trade route between east and west and could reinvigorate Georgian transportation.

Georgian transport economy is transit oriented. Up to 60% of cargo flow in Georgia is transit. Logistics accounted for around 9.5% of GDP in 2015 and about 3,3% of employment.

The Ministry of Regional Development and Infrastructure of Georgia in last several years expended up to 1 billion USD for the improvement of the infrastructure. In 2015, the Ministry expensed 401,601,255 USD for the same purpose.

ROADS & HIGHWAYS

Road infrastructure is rapidly developing throughout Georgia. In 2013 and 2014 years for the development of road infrastructure, the government expended 501,226,113 USD. In 2015 the expenses for the same purpose was 236,958,758. There is a 1,603 km international roads and 21 301 km all roads in Georgia.

For the construction of highways in 2013 and 2014 years was spent 289,523,938 USD, in 2015 was spent 165,476,190 USD. 150 km new east-west highway is constructed, 100 km is ongoing project.

RAILROADS

Georgian Railways is concentrated to organize freight and passenger transportation with efficient infrastructure and rolling stock services and to make Caucasus the most effective connection between Europe and Asia. There is 1 326 km railway; Georgian railway currently has around 30 mln t/year capacity. Modernization process is in progress.

The project of Baku-Tbilisi-Kars railroad mainline was initiated in 2007 by the governments of Georgia, Azerbaijan and Turkey. This railway has a significant importance for the region, because it is intended to connect Georgian and Azerbaijan railways to the Turkish one. Baku-Tbilisi-Kars railway project is almost completed and integration is planned in 2016. The project envisages the rehabilitation, reconstruction and construction of 180 km length Marabda-Kartsakhi railway section consisting of: Marabda-Akhalkalaki reconstruction-rehabilitation section – useful length 153 km and Akhalkalaki-Kartsakhi (Turkish border) new construction section – length 27 km.

Rehabilitation, reconstruction and construction process is executed within the framework of the project envisaged for 5-15 mln tons cargo flow per year. Main part of construction works are already completed on the territory of Georgia.

 

SEAPORTS

There are 2 existing ports in Georgia, and 2 oil terminals.

Batumi seaport has 11 berths, with 9-12 m draft. In 2015 handled cargo in Batumi seaport was 5.7 mln tons. Participation in the oil transportation turned Batumi Sea Port in the important center of Eurasian transportation corridor and major transportation object of international importance.

Poti seaport has 15 berths, with 8-11 m draft. In 2015 handled cargo in Poti seaport was 6.8mln tons. The Poti seaport is a cross point of the Trans-Caucasian Corridor/TRACECA, a multinational project which connects the Romanian port of Constanta and Bulgarian port Varna with the landlocked countries of the Caspian region and Central Asia.

Kulevi Oil Terminal incorporates three piers, a canal for tankers, and a mobile service fleet of 9 vessels. The terminal has a tank park with overall storage capacity of 320,000 m3. For loading operations there are two berths for receiving tankers with tonnage up to 100,000 tons. Loading performance is from 1,000 to 8,000 m3/h. The terminal has its own railway station.

The Baku–Supsa pipeline has six pumping stations and two pressure reduction stations in western Georgia. The four storage tanks at the Supsa terminal have a total capacity of 160,000 m3. The capacity of the pipeline is 145,000 barrels per day (23,100 m3/d) with proposed upgrades to between 300,000 to 600,000 barrels

AIRPORTS

There are three international and several national airports in Georgia.

Tbilisi international airport is the main airport of the country. It has a 25,000 square meter total usable area. There is scope for future expansions without interrupting terminal operations. In 2015 Tbilisi international airport hosted 1,847,111 passengers.

Batumi is one of three international airports in operation in Georgia. The new Batumi airport terminal has been in operation since 26 May 2007. With a total area of 4,256 m2, it is capable of handling 600,000 passengers a year. In 2015 the airport was used by 226,476 passengers.

Kutaisi international airport reached the peak of its initial development in 2013 covering 10% of carried passengers on the market. The airport is operated by United Airports of Georgia, a state-owned company. In 2015 the David the Builder Kutaisi International Airport was used by the 182.954 passengers.

PIPELINES

Oil

Two pipelines pass through the territory of Georgia. The Baku-Tbilisi-Ceyhan (BTC) and the Western Route Export Pipeline (WREP).

BTC pipeline exports oil from the Azeri-Chirag-Gunshli field to the Ceyhan port in Turkey. The BTC is the second longest pipeline in the world. The total length of the pipeline is 1,768 km with 249 km on territory of Georgia. From eight pumping stations two are located in Georgia. BTC pipeline was commissioned in 2005.

WREP also known as the Baku-Supsa, was commissioned in 1999 and was it the first investment of international oil consortium in Georgia.

The length of the WREP is 833 km. Its diameter is 530 mm. The pipeline transports crude oil from the offshore Azeri-Chiragi-Guneshli oil field in the Caspian Sea through Sangachal to the Supsa terminal in West Georgia. The Supsa terminal with the capacity of 120,000 tons was constructed as part of the (WREP) pipeline construction project.

Gas

In the same corridor as BTC passes also gas pipeline The South Caucasus Pipeline (SCP).  The length of the SCP is 691 with 249 km in Georgia

Pipeline was commissioned in 2006 and was connected to Georgian gas distribution system near Gardabani. In January 2007 first commercial gas was delivered to Georgian market through SCP

At full capacity, the pipeline can transport up to 20 mln scm's (standard cubic meters) a year.

BP has started expansion of the SCP bringing additional gas supply opportunity and USD 2bn investment to the country. This expansion involves the laying of new pipeline across Azerbaijan and the construction of two new compressor stations in Georgia. This will triple the gas volumes exported through the pipeline.

The North South Main Gas Pipeline (NSMGP) was built in the 1970s. The pipeline stretches from Russian to Armenian border (221 km) supplying Georgian and Armenian market with natural gas.

Within the framework of the Millennium Challenge Georgia Fund, the pipeline was rehabilitated between years 2006-2009. At full capacity, the NSMP can transport 12 bln cm of natural gas

At the border between Georgia and Turkey, the pipeline will link into other new pipelines to provide gas into Turkey and the European Union

TRANSMISSION LINES

Georgia’s transmission network operates at 500kV, 330kV, 220kV, 110kV and 35kV voltages. A backbone 500kV transmission line (“Kavkasioni” – “Imereti”- “Kartli-2”- “Kartli-1”) connects Russia and the large generators (notably Enguri HPP) in the north-west to Tbilisi with a further 330kV inter-connection to Azerbaijan. There is a reasonably extensive 220kV grid connecting other demand centers and generators. The Georgian grid is inter-connected with Russia at 500kV and 220kV, with Azerbaijan at 330kV, with Armenia 220kV and with Turkey at 220kV and 400kV. There are also isolated 110kV connections with Armenia and Russia.

The total length of Georgian power system transmission lines equals to 11,297km. GSE’s transmission assets include 220/110/35kV overhead lines with the total length of 2,938km and 89 substations with the total installed capacity of 8,400MW, including three (3) strategically important 500kV substations and seventeen (17) 220kV substations throughout the territory of Georgia.

There are plans to expand current transmission lines by year 2022, about 1,700 Km of new lines and 5,000 MW substation will be added to grid. Georgia will also upgrade cross border transmission capacity, reaching 5,000 MW by 2022.  

Utility Costs

Category GEL kwh including VAT (18%) USD kwh including VAT (18%)
Tbilisi
220/380 volt (avg.) 0.198 0.087
6–10 kv 0.153 0.067
35 – 110 kv 0.140 0.062
Kakheti Region
220/380 volt (avg.) 0.175 0.077
6–10 kv 0.165 0.073
35 – 110 kv 0.130 0.057
All Other Regions
220/380 volt (avg.) 0.199 0.088
6–10 kv 0.142 0.063
35 – 110 kv 0.136 0.060
USD prices are calculated based on average official GEL exchange rate in 2015 - 1 USD - 2.27 GEL
  GEL/m3 including VAT (18%) USD/m3 including VAT (18%)
TBILISI: 4.400 1.938
Drinkable water 3.555 1.566
Sewerage system water 0.845 0.372
OTHER REGIONS:
(*there are few exemptions)
4.307 1.897
Drinkable water 3.375 1.487
Sewerage system water 0.932 0.411
USD prices are calculated based on average official GEL exchange rate in 2015 - 1 USD - 2.27 GEL
  GEL/M3 (Including VAT 18%) USD/M3 (Including VAT 18%)
Supplied Gas Prices
Minimum 0.641 0.282
Median 0.805 0.355
Maximum 1.064 0.469
Distribution Tariffs(avg.)
High Pressure 0.018 0.008
Medium Pressure 0.062 0.027
Low Pressure 0.141 0.062

Electricity costs (non-residential)

Government of Georgia has determined (Decree #33 on Electricity Rates) maximum rates of electricity in Georgian Lari (GEL). The rates are different according to regions of Georgia and voltages.

Upper marginal rates of power (including 18% VAT):

 

 
 

However consumers using more than 1 million kwh electricity per year can be registered as are direct consumers and they can purchase electricity directly from the system’s commercial operator (ESCO) and/or from producers (power plants) through the direct agreement and they can negotiate on any price.

 

Rates for drinkable water and sewerage system water (non-residential)

Maximum rates of drinkable water and water for sewerage system are determined by Government (Decree #33 on Water Tariffs/Rates).

 


Gas Fee (for industrial use)

Total gas expense is sum of supplied gas price and distribution tariff. Gas rates (for industrial use) are partially deregulated by Government, which means private company can choose the supplier of gas (currently there are 37 gas supplier companies) and negotiate tariffs with them; however the company can’t choose a gas distributor. 

gas table
 

USD prices are calculated based on average official GEL exchange rate in 2015 - 1 USD - 2.27 GEL

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