georgia

ADVERTISEMENTGeorgia / P6ADVERTISEMENTSustainable forest management law planned,protected areas soon to expandGeorgia’s agricultural ecosystems and naturalgrasslands comprise “43 percent of the country’sterritory and are an integral part of the country’sbiodiversity” says Elguja Khokrishvili, Minister ofEnvironment and Natural Resources Protection, so ithas been Georgia’s priority to improve environmentalconservation through governmental process andlegislation. After the country’s independence in 1991,Georgia created the Ministry of Environment andNatural Resources Protection (MOENRP), mandatedwith the responsibility of restoring balance to theenvironment so devastated by Soviet policies that hadindustrialized agriculture, which, in turn, negativelyimpacted the nation’s agricultural ecosystems andnatural resources.Luckily, since the 2000s, Mr. Khokrishvili says,“some important initiatives have been implementedaiming to improve the conservation status of theagricultural biodiversity of Georgia.” The long list ofinitiatives includes the establishment of new agencies,advancing research projects and rehabilitating degradedagricultural lands. The Georgian governmentis clearly committed to investing in its environmentalfuture – in May 2014, it endorsed the MOENRP’s initiationof the process to revise the National BiodiversityStrategy and Action Plan 2014-2020, a comprehensivedocument that addresses broad environmental topicssuch as species/habitat conservation, agriculturalbiodiversity, public awareness and protected areas.Protected areas, including nature reserves, nationalparks, natural monuments, protected landscapes,world heritage and wetland sites, have become a majortenet of Georgia’s environmental policy. The Agency ofProtected Areas acts as the main authority responsiblefor the development and management of these areas.The “development of these protected areas [has beenone of] the priority directions of our Ministry for manyyears,” says Mr. Khokrishvili.“Today we have over 600,000 hectares (1.48 millionacres) of protected areas,” or 8.6 percent of the entirecountry, he adds, with the majority being nationalparks, including Borjomi-Kharagauli National Park,one of the largest of its kind in Europe. The number ofprotected areas, the minister says, is set to increase byover 300,000 hectares, which will raise the percentageof protected areas to 13.05 percent of total territory.“Now we are workingon a Sustainable ForestManagement Lawwhich will regulate ourforest management in asustainable way”Elguja Khokrishvili,Minister of the Environment andNatural Resources ProtectionENVIRONMENT Georgia’s Ministry of the Environment and Natural Resources Protectionis working toward restoring balance to Georgia’s natureCurrently, 8.6% of the entire country is protected, a figure which will soon rise to 13%On a higher level, as a result of the 2014 signingof the Association Agreement, the MOENRPis facing new challenges, one of the biggest beingharmonizing with and conforming to EU standardsand regulations. Developing, adapting and integratinglegislation along European lines (as well as achievingtheir implementation among the private sector) isimportant as the nation hopes for full E.U. membershipin the near future.Another complexity, the minister adds, is the necessityto take into account the impact of new environmentallaws, so they are adapting accordingly, “stepby step, because every new environmental standard orlaw not only creates additional cost, but also createsopportunities for business and for the private sector.”Another ongoing challenge is sustainable development,trying to find balance between economic growthand environmental protection, Mr. Khokrishvili says.Some 40 percent of the country is covered in forest,and the rural population’s reliance on forests as asource for heat production is unsustainable. Parliamentis considering a sustainable forest developmentstrategy – the National Forest Strategy – and “now weare working on a Sustainable Forest ManagementLaw, which will regulate our forest management in asustainable way,” Mr. Khokrishvili says.Despite the numerous challenges, the MOENRPhas promising projects in the pipeline and is makingoutstanding strides. For example, genetically modifiedorganisms were banned this year, and, currently,there are two pilot projects underway which focus onthe use of biomass as an alternative fuel source – anothermethod to reduce dependence on forests. Andyet another sign of encouragement, environmentaltourism is on the rise. There has been a nearly 25percent increase in visitors since 2013, largely due toGeorgia’s natural beauty and protected lands.Protected areas have “big potential,” Mr. Khokrishvilibelieves, and that potential is reflected in the attitudeof the nation’s citizens: when citizens see thatthey are part of nature, and that tourists are interestedin the country’s biodiversity, “there is a change in thementality,” the minister has explained. They becomemore willing to take on responsibility for caring fortheir environment. “We can see these changes andthat’s interesting.”Georgian Railway makes tracksfor the new Silk RoadAs the shortest link between Europe and Asia, Georgia iscentral to the revival of the historic trade route“The railway has a longhistory in Georgia,” says theC.E.O. of Georgian Railway(GR), Mamuka Bakhtadze – ahistory filled with generationsof families involved with therailway since its founding in1865, a tradition that remainsvery strong. With its place in itsnation’s annals assured, GR isnow looking to make a lastingimprint on its future.Mr. Bakhtadze currentlyoversees the operations ofan organization that employsapproximately 13,000 people anda fully electrified railway lineserving Central Asia that spansover 900 miles. Although thecompany is state-owned, in 2012it became a joint-stock companymanaged on a growth and profitmakingbasis, with Mr. Bakhtadzesteering GR toward what he sayswill be a record-breaking year,with revenues of over GEL500m($274 million). GR’s internationalstatus is such that it has beenable to successfully issue bondson the London Stock Exchange,the latest being $500 millionEurobonds in 2012.The Georgian Railway’s mainrailway line is extensive, shippingcargo between the border ofAzerbaijan and the Black Sea;but, the C.E.O. notes, cargo canbe received from as far as China.Currently, revenue isgenerated by an equal splitof dry and liquid cargo, suchas oil, though dry cargo is onthe increase. “For the last 10years on average, our portshave increased their containershipments by around 20 percenton an annual basis,” says Mr.Bakhtadze. This year it is againanticipated to be around 20percent. This kind of consistentgrowth leads the C.E.O. tobelieve that there is a “brightfuture” for container shipmentsthrough the corridor, and in thenext 10 years, “this will be themain business” of GR.Georgia is the shortest linkbetween Europe and Asia, Mr.Bakhtadze emphasizes, andit’s a Silk Road route that GRwants to optimize. Historicallyspeaking, the Silk Road impliesa route that facilitates tradebetween Europe and Asia.Georgia, a country locatedbetween the Black and Caspianseas – the “shortest link” – nowplays a very important role in“If only theGeorgian Railwaydevelops itsinfrastructure, itwill not be enoughto make Georgia aregional hub. Weare coordinatingour projects withour partnersin the corridor,with countrieslike Azerbaijan,Kazakhstan andTurkmenistan”“The goal to getcontainers fromthe Black Sea tothe Caspian Sea inabout 60 hours isdoable and we aregoing to do it.It’s just the rightplace and the righttime to invest”Mamuka Bakhtadze,C.E.O. of GeorgianRailwaythe new Silk Road. And GeorgianRailways, as a transportationservice located between thetwo continents, has becomean integral part of Georgia’snational and economic growth.The development of thiscorridor into a strategic hubfor the region, Mr. Bakhtadzesays, depends on multiregion,multi-industry and governmentalcollaboration. “If only the GRdevelops its infrastructure, it willnot be enough to make Georgiaa regional hub,” he says. “Weare coordinating our projectswith our partners in the corridor,with countries like Azerbaijan,Kazakhstan and Turkmenistan.”He highlights Kazakhstan’sconstruction of a 1,000 kilometer(620 mile) rail line to PortAktau as one example. These“synchronized efforts” willultimately result in Georgiadeveloping into a dependableand necessary transportationhub in the region.The company has acomprehensive, multi-prongedstrategy to keep growing inlight of the demands of the newSilk Road. For one, it is buildinga new Baku-Tbilisi-Kars line, aroute that will ship to the borderof Turkey, slated for completion in2015, according to Mr. Bakhtadze.The goal is to get containers fromthe Black Sea to the Caspian Seain about 60 hours. “It’s doable andwe are going to do it,” he sayswith confidence.There is also the improvementof the existing line’s infrastructure,part of what the C.E.O. calls theModernization Project, whichincludes the construction of twonew tunnels between the eastand west of Georgia to increasecapacity and speed.The mountainous geographyof the country being a limitingfactor, the plan aims to tripleexisting capacity throughinfrastructural upgrades. Thisgoes hand in hand with currentcapacity building projectsfocused on acquiring the mostadvanced technology, such asnew engines to increase trainspeed, new wagons for improvingperformance and an upgradedsignalization system.Although GR is a regionalleader in investing in rollingstock, another aspect of itsstrategy is to expand the numberof container terminals in thecountry. In addition, with a 12percent increase in turnover,passenger/tourism businessis also a top priority (GR isnumber one in this categoryin all post-Soviet countries)and the company is workingwith various ministries toimprove coordination to makeservice more convenient andcomfortable for customers.“It’s just the right place andthe right time to invest,” Mr.Bakhtadze stresses. “Althoughwe are not a big country, witha big railway, we are actuallyserving a rather large populationand geography.”