RIA on Choosing New Power Projects for Energy Security or Interconnection
Origin of Funding: USAID
The main objective of this project is to boost Georgia’s energy security by enhancing its legal and regulatory framework. Accordingly, we will conduct a regulatory impact assessment (RIA) on the selection process for new power projects designed to gain increased energy security or for interconnection.
In the process, PMCG, as part of a consortium led by Deloitte, under the USAID Energy Security Program will carry out the following activities:
Review the relevant EU directives, proposed energy laws and appropriate existing secondary legislation in Georgia;
For international markets, conduct a review of similar power solicitations with respect to capacity, long-term contracts, and reliability of must-run contracts as well as any format providing guaranteed supply;
Conduct a legal review of the Georgian power market’s design, rules, distribution and supplier licenses with the purpose of determining obligations with regard to reliability and energy security;
Carry out legal and technical review of grid codes and any other interconnection procedures in order to determine access prioritization, sequences, financial penalties, congestion pricing or opportunities;
Meet with the Government of Georgia’s key stakeholders to assess the decision dynamics for various alternative resolutions; and
Develop all reasonable and creative approaches for economically competitive and technically controllable selection process, estimating the potential impacts from a qualitative and quantitative viewpoint, including risk analysis.
On July 1-3, a three-day workshop was conducted for the representatives of the Prosecutor's Office of Georgia, dedicated to Public Policy Analysis to Improve Strategic Documents - Policy Planning, Monitoring and Evaluation. The main goal of the activity was to develop a strategy document for the Prosecutor's Office of Georgia.
On June 25, Dr. Giorgi Khishtovani, Director at PMC Research, participated in the German EU Pre-Presidency Conference entitled “Shaping the Future of Europe,” which was dedicated to debating current EU issues, and was organized by the Trans European Policy Studies Association (TEPSA) and the Institute for European Politics (IEP).
Due to the COVID-19 pandemic, global FDI is expected to fall by 30-40% in 2020 (UNCTAD), while the decrease in Georgia is forecast at 19% (IMF);
Net FDI inflows have been decreasing in Georgia since 2017, based on both, yearly and Q1 data;
Net FDI inflows in Georgia experience volatility over time, due to large one-off investment projects;
Georgia has been leading among EaP countries in terms of the share of FDI in GDP in 2017 and 2018;
Net FDI inflows decreased by 41.7% in Q1 of 2020, compared to Q1 in 2019, mainly due to COVID-19 pandemic.
The Government of Georgia introduced various support measures in order to alleviate the burden of the COVID-19 crisis on tourism industry in the period between March and May of 2020.
The Government of Georgia, namely GNTA, operated 84 hotels during the lockdown, which served 19 002 Georgian citizens as a quarantine zone. The total cost of providing quarantine zones from the budget amounted 32.5 mln GEL.
The Government of Georgia, developed mandatory recommendations for prevention of the spread of COVID-19 on June 5th.
In May 2020, hotel prices do not provide an accurate guidance of the situation in accommodation market due to the fact that the market for accommodations is non-existent due to COVID-19 pandemic.
In Georgia, the average cost of a room in a 3-star hotel was 126 GEL per night in May 2020. While the average cost of a room in a 4-star hotel in Georgia was 214 GEL per night and the average cost of a room in a guesthouse was 71 GEL per night. The average cost of a room in a 5-star hotel in Georgia in May 2020 was 362 GEL per night. In Tbilisi, the average price was 534 GELfollowed by Kakheti - 325 GEL and Imereti – 95 GEL.
The year of 2019 proved to be a busy one, with opportunities grasped and challenges overcome. We implemented various interesting projects, each of which made a telling impact. Meanwhile, as existing partnerships were strengthened, we established exciting new ones as well. Specifically, we made notable strides forward in Ukraine where we increased our representation and intensified our work. Finally, and perhaps most importantly, our excellent team has been complemented by the addition of new people with diverse and invaluable expertise.
Number of international travelers decreased by 612 273 (-94.5%), compared to the same period previous year, while number of visitors decreased by 515 440 (-93.8%) and the number of tourists decreased by 321 643 (-92.3%);
Based on GNTA database, in an average registered accommodation facility in Georgia, there are 15 rooms and 37 beds. There are on average 23 rooms and 55 beds in Adjara (highest) and 6 rooms and 15 beds in Samegrelo-Zemo Svaneti (lowest). There are on average 2.4 beds per one room in Georgia. This ratio equals 2.24 in Tbilisi (lowest) and 2.91 in Racha (highest);
Hotel prices do not provide an accurate guide of situation in accommodation market due to the fact that the market for accommodations is almost non-existant due to the COVID-19 pandemic