Part I

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Draft Black Sea Regional Transmission Project ESIA Table 4.2-4. Georgia economic and employment contributions by sector Sector Percent of GDP Percent of total employment Agriculture 12.8 53.4 Industry 28.4 10.5 Services 58.8 36.1 Sources: Ministry of Economic Development of Georgia, 2009 and U.S. Central Intelligence Agency, 2009 The discrepancy of the agricultural sector accounting for 53.4 percent of the employment, but contributing only 12.8 percent of the GDP reflects the prevalence of subsistence farming. This probably contributes to what was reported in the UN Human Development Reports, which is that 54.5 percent of the population was living below the poverty line in Georgia between 1990-2004. (UNDP 2009) The national employment rate is 86.7 percent of which 31.8 percent are hired workers and 54.9 percent are self-employed. The rates of unemployment in the rural areas are much higher. The national unemployment rate is 13.3 percent, whereas in the areas impacted by the transmission line, the unemployment rates range from 30 percent to 39 percent, as shown in Table 4.2-5. (Ministry of Economic Development , 2009) Table 4.2-5. Unemployment rates by administrative region/district near transmission line District Unemployment rate Georgia 13.3% Kvemo Kartli Marneuli 36% Tetritskaro 35% Tsalka 34% Samtskhe-Javakheti Borjomi 39% Akhaltsikhe 30% Imereti Region Zestaphoni N/A BTC Co. 2002 and Ministry of Economic Development of Georgia, 2009. Communities along the transmission line route where scoping interviews were held were dependent almost wholly on agricultural activities and on income sent from family members working in cities or abroad. Agricultural activities included farming short crops such as vegetables and melons, livestock breeding and herding, cereals production, vineyards, and fruit orchards. Livestock included cattle, sheep and goats. Horses and donkeys are used as beasts of burden, and bred as well. The lands directly under the planned route of the completed transmission line were often cultivated near communities, and nearly all land near communities were heavily grazed. A significant portion of the farming appeared to be subsistence level, with some crops grown for sale in the neighboring towns and cities. 98
Draft Black Sea Regional Transmission Project ESIA Ilmazlo Table 4.2-6. Principal income sources in selected communities near transmission line Community Algetis Meurneoba Kosalari Jandari area Tetritskaro Azavreti Aspindza (Damala) Pirveli Sviri Kvaliti Moliti Tabatskuri Persa Klde Tskruti Benara Agara Source: scoping interviews Main economic activities Field crops livestock livestock farming and livestock Farming; livestock livestock livestock maise wheat and soy Vineyards and wheat livestock livestock cultivation cultivation cultivation farming; cultivation Vineyards and wheat/ livestock The cultivation of arable lands near and beneath the proposed line is illustrated in Figures 4.2-3 and 4.2-4. Figure 4.2-4 shows how some towers have been scavenged. The southeastern portion of the proposed route runs through the Kvemo Kartli region. The towns of Gardabani, Marneuli, and Bolnisi are all within a few kilometers of but not directly on the proposed transmission line corridor. Between 2005 and 2007, there was a marked increase in the economic productivity of Kvemo Kartli, as measured in output by region, including subsidies. Industrial employment has remained constant, but overall employment levels dropped by 16 percent between 2005 and mid-2008 (Ministry of Economic Development of Georgia, 2009). The southeastern portion of the proposed route runs through the Kvemo Kartli region. The towns of Gardabani, Marneuli, and Bolnisi are all within a few kilometers of but not directly on the proposed transmission line corridor. Between 2005 and 2007, there was a marked increase in the economic productivity of Kvemo Kartli, as measured in output by region, including subsidies. Industrial employment has remained constant, but overall employment levels dropped by 16 percent between 2005 and mid-2008 (Ministry of Economic Development of Georgia, 2009). The northwest portion of the route is in the Imereti Region, with Zestaphoni being the main town. Between 2005 and 2007, there was a slight decrease in the economic productivity of this region. Industrial employment dropped slightly, and overall employment dropped by 11 percent between 2005 and mid-2008.(Ministry of Economic Development of Georgia, 2009). The southwestern portion of the route is in the Samtskhe-Javakheti region. It includes the towns of Borjomi, Alkhalkalaki, and the province capital of Akhaltsikhe. The poverty rate is estimated to be 60 percent. Between 2005 and 2007, there was a marked decrease in the economic productivity of Samtskhe-Javakheti, and industrial employment declined by almost 99
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