LOCAL ECONOMIC DEVELOPMENT PLAN FOR TBILISI ... - LED

It is of key importance for the city development to attract capital in the
following areas. In order to improve the conditions of business activity and the
quality of life it is most important to invest in technical infrastructure:
• transport infrastructure,
• telecommunication infrastructure,
• utilities.
In order to improve competitiveness of the economy the following investments
in institutional infrastructure are necessary:
• institutions facilitating access to funding,
• institutions of labour market and workforce development,
• institutions giving SME access to technical assistance (TA),
• networking and marketing organisations,
• know- how and technology transfer institutions,
• space for work with service provided.
To set up new firms and attract investors business space is necessary:
• offices,
• shops,
• warehouses,
• industrial units,
• hotels and restaurants,
• plots of land with infrastructure,
• houses and apartments.
The city can stimulate investment in these three areas in many ways. Some of
these investments belong to the private sector, others will remain public
investments. Part of the investments will be done by national investors, while
another part of the capital will come from international markets.
For the last twenty years we have been observing changes happening in the
cities of Central and East Europe which have abandoned centrally planned
economy and are joining global cooperation and competition. In the recent
years in Georgia strategic investments in technical infrastructure have been
done with both public and private money. Many international donors have
started programmes building institutional infrastructure for the new economy.
We can observe a boom on Tbilisi real estate market where, apart from
housing estates, new office and shopping space has been built. New hotels,
restaurants as well as factories and warehouses are being constructed as
well. Some of the old industrial buildings in the inner city after renovation have
been converted into moderate class offices and shops.