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First Enterprise under “Produce in Georgia” Program to Open in November

Some details of two of the three projects approved under the state program “Produce in Georgia became known.

In particular, one enterprise  will be built in Tbilisi and will produce paper packaging and single use products made from paper  – plates, glasses, etc. According to one of the initiators of the project Paata Abramia, he has a long experience in producing such products and got a loan of  GEL 1 million under the program.

“The company will start its work in November 2014. Our goal is import substitution in this fast-growing segment, as well as exclusion of environmentally harmful plastic bags from the market. Paper bags replaced polyethylene long ago in the West and Georgia should go this route. We also plan to start paper production, although at the first stage we will have to work with imported raw materials,”- said the businessman.

Details  of the second project also became known –  “Geopak” company is going to start production of plastic products in Georgia – in particular, bottle caps, which are currently imported. The company has already received a land area of ​​15 000 square meters and abandoned buildings located on it. According to the terms of privatization, “Geopak” must invest more than GEL 2.5 million in the project. Currently “Geopak” produces plastic bottles. In total 53 projects have been submitted and are currently under consideration.

“Banks also show a great interest in the program and will give preferential loans. According to their information, 30 projects have been selected, which are now under  consideration,”- Tsikolia notes. State program “Produce in Georgia” was launched on  June 1. The budget reaches  46 million GEL, of which 30 million will be spent on agricultural projects, and 16 million – on  industrial projects.

Entrepreneurs wishing to start new businesses will be able to receive preferential loans worth 2 million GEL, in addition, the government would help them in dealing with various issues. “Those who want to build new enterprises or to restore the abandoned factories both in the agricultural and any other sector of the economy will be able to receive financial and advisory assistance from the state. Our goal is to encourage businesses to invest and produce products, “- said the Minister of Economy of Georgia Giorgi Kvirikashvili. In his words, the interest rate on loans will be 1 – 3%.

“The state will cover at least 10% of the loan taken by businessman. That is, if the interest rate is 13%,  the businessman will have to cover not more than 3%. With regard to loan collateral, it is natural that each bank requires collateral, on this basis, the state takes over 30% of the loan guarantee,”- the Minister notes.