According to the contract, PMCG will prepare budget management system explanatory documentations for the Ministry of Defense of Georgia.
Start Date: July 2008End Date: August 2008Country: GeorgiaClient: Ministry of Defense of GeorgiaFunder: UGT
Description of the Project:
UGT is implementing a significant project to modernize ICT infrastructure for the whole system of the Ministry of Defence and they have contracted PMCG to prepare a budget management system explanatory documentation for the Ministry of Defense of Georgia. This covers the following activities:
Defining existing budgetary procedures and setting additional requirements for a desirable system in the Ministry of Defense of Georgia;
Rechecking the existing processes and desirable future processes relevant to the legislation and, if needed, to offer the recommendatory amendments to the Ministry of Defense of Georgia;
Presenting information obtained in the form of documentations which will have the following subtitles:
The goal of the document;
Description of the working activities to create documentations;
General description of budget management system;
Organizational structure of the Ministry of Defense of Georgia involved in the budgeting system;
Existing business processes (presented in graphical and textual forms, describing for each unit of the Ministry of Defense of Georgia);
The desirable future business processes for the Ministry of Defense of Georgia (presented in graphical and textual forms).
Policy and Management Consulting Group joins ICC-Georgia
On June 4 the PMCG, represented by Mr. Aleksi Aleksishvili, became the latest business group to join the International Chamber of Commerce-Georgia.
Mr. Aleksishvili, who has held several government positions in addition to the post of Finance Minister, will chair ICC-Georgia's Commission on Customs and Trade Regulations.
This commission is one of more than a dozen expert commissions chaired by leading members of Georgia's business community.
The input of Mr. Aleksishvili and other respected figures is a key part of what makes ICC-Georgia the country's most dynamic and representative business chamber.
"I am proud to welcome Policy and Management Consulting Group to our business organization, and very pleased that Mr. Aleksishvili will helm one of our expert committees," said ICC-Georgia Board Chairman Fady Asly.
"Mr. Aleksishvili's formidable experience in business and government will be invaluable in promoting our members' interests in customs and trade regulation."
ICC-Georgia is the Georgian national committee of the International Chamber of Commerce, a global business organization which unites hundreds of thousands of member companies from over 130 countries into a representative body which speaks with authority on behalf of businesses worldwide.
The PMCG is undertaking business analysis for the TAM AIR airlines
A group of consultants from PMCG is undertaking business analysis for TAM AIR airlines in order to prepare the company’s business development strategy.
The project was recently approved by the EBRD’s BAS program and awarded a grant in the amount of EUR 9000. PMCG and TAM AIR airlines intend to apply for the EBRD’s TAM (TurnAround Management) program as the next step for the company’s management to acquire new business skills and receive hands on assistance from the industry specific management experts. It is expected that an advisor will be appointed in October 2008 to work with management of TAM AIR airlines for 18 months on a peripatetic base.
The BAS Program, administered by the TurnAround Management and Business Advisory Services Program Team at the European Bank for Reconstruction and Development, has been established in order to assist the development of small and medium-sized enterprises. The BAS Program has gained considerable experience in providing practical business advice in many countries, and BAS Programs have had a broad impact on developing the critical SME sector supporting over 3,000 advisory projects with enterprise clients so far.
PMCG and ERP (Lithuania) are jointly applying for the WB funded project in public finance “Updating integrated budgetary/financial reporting system for the Ministry of Finance of Georgia”.
Start Date: January 2009End Date: July 2010Country: GeorgiaClient: Municipal Development Fund of GeorgiaFunder: The World Bank
Description of the Project:
PMCG and ERP consortium had expressed their interest in the above mentioned project.ERP is a management consulting company, established in Lithuania in 2002, serving clients in both public and private sectors. It provides business and technology strategy, education, systems design, architecture, technology innovation, applications implementation, systems integration and management services. ERP has expanded its operations to cover all Baltic States, Finland, Ukraine, Belarus, the Russian Federation, Kazakhstan and Georgia.
The Government of Georgia has applied for financing from the IDA toward the cost of the Regional and Municipal Infrastructure Development Project (RMIDP), and intends to assign part of the proceeds to a consultant services contract to update the integrated budgetary/financial reporting system for the Ministry of Finance of Georgia. The overall objective of the proposed services is to improve the budget-financial base of the territorial entities (in respect of expenditures) and administration of municipal budgets through the updated program - based on the new classification (Government Finance Statistics Manual - GFSM 2001).
Applying to the above mentioned project, the consortium plans to coordinate PMCG’s knowledge of Georgian public sector and ERP’s experience in ICT. PMCG and ERP consortium’s combined key professional staff required for this assignment are experienced in the elaboration of budget programs, legal framework, and collaboration with the local institutions.
PMCG established consortium with WYG International (UK)
In June 2008, The consortium of PMCG and WYG International are jointly participating in the WB funded project “Preparation of the functional and technical design of the Public Financial Management System (PFMS) for the structural units of the Ministry of Finance of Georgia”.
Start Date: September 2008End Date: February 2009Country: GeorgiaClient: Ministry of Finance of GeorgiaFunder: The World Bank
Description of the Project:
The project will be conducted by PMCG and WYG International consortium. The latter is an international multi-disciplinary consultant with over 3000 staff located in more than 30 offices providing a comprehensive and co-ordinated range of high quality socio economic, planning, environmental, engineering, surveying and management services to a diverse range of clients in the public and private sectors.
The project first arose in 2006 when the Ministry of Finance of Georgia endorsed the Strategic Vision for Public Financial Management Reform. This document presents a diagnosis of the challenges faced by the Georgian Government in public financial management and provides directions for implementation of this vital reform. Strengthening budgeting, accounting and reporting mechanisms and practice is one of the key elements of this Strategic Vision.
In order to realize this Vision, that intends to develop, procure and implement an integrated Public Financial Management System (PFMS). To assist in the PFMS functional and technical design and preparation of technical requirements PMCG and WYG International consortium will provide advisory services covering all important aspects of the PFM cycle (i.e. budget preparation and execution, cash and debt management, loan management and restructuring, revenue planning model, treasury operations, public accounting, financial reporting, procurement, human resources management, payroll calculations, financial control and auditing) and related Information and Communication Technology (ICT) solutions.
PMCG founder mr. Aleksi Aleksishvili announces customs training program for businesses
Mr. Aleksi Aleksishvili presented a new program to train businesses to navigate Georgia's customs regulations at a roundtable meeting for the International Chamber of Commerce-Georgia (ICC-Georgia) on June 19 at the Tbilisi Marriott.
Former finance minister Aleksi Aleksishvili said the program and accompanying training center will facilitate international trade and business activities. The program will give instructions on Georgian financial legislation and procedures, including customs and tax rules. It will also study problems frequently encountered by Georgian businesses. Fady Asly, chairman of ICC-Georgia and an investor in this newspaper, said the program will help businessmen to remedy the headache of unnecessary papers by sharing the easiest ways to navigate tax and customs operations. Aleksishvili said the center’s instructors would be chosen for their rich practical and theoretical experience. The focus will be on an international software format which allows businesses to fulfill customs responsibilities from offices, he said, avoiding extra time and expenses on mediators.
Aleksishvili said the course will be very flexible in timing and price; the project has USD 80 000 in funding for its first year, according to the ex-finance minister, with several other sources of funding interested in sponsoring the center. Aleksishvili of PMCG, one of the most recent business groups to join ICC-Georgia said that he did not want to enter ICC with nothing to propose, and made the training center his first project as an ICC-Georgia member. ICC-Georgia is the national committee of the International Chamber of Commerce, a worldwide business organization with its headquarters in Paris.
PMC- Group and BCNG implemented the Georgia's confectionery market research
Upon reaching a private agreement PMCG and partner consulting company “BCNG” undertook research into Georgia’s chocolate market.
Start Date: May 2008End Date: June 2008Country: GeorgiaClient: Foreign Private Company Funder: Foreign Company
PMCG used official data as well as data obtained from the market survey whilelocal production foreign indexes have been studied and analyzed. The survey covered the period 2005-2007. For each year we described the market in details, based on production, variety,, and by foreseeing importer and exporter countries.
At the request of Eurotechnics Ltd, PMC- Group implemented the market research of electronics in
PMCG implemented market research into electronics in Georgia.
Start Date: June 2008End Date: June 2008Country: GeorgiaClient: “Eurotechnics” Ltd
PMCG implemented the market research of electronics in Georgia based on foreign trade data studied and analyzed from 2006 to 2008 first quarter period. Monthly information was produced by the following breakdown: geographically, in types of electronics, in value and quantity. Common tendencies and future perspectives have been analyzed and submitted to the client.
At the request of TBC Bank, PMCGroup implemented research of commercial banks non interest expenditure
At the request of “TBC Bank”, PMCG implemented efficiency research of commercial banks’ non interest expenditure.
Start Date: April 2008End Date: April 2008Country: GeorgiaClient: TBC BankFunder: TBC Bank
At the request of “TBC Bank”, PMCG implemented efficiency research of commercial banks’ non interest expenditure. The research was based on Georgia’s and Eastern European countries’ commercial banks’ 2005-2007 main financial parameters. In the research PMCG analyzed each commercial bank’s non-interest expenses, personnel and marketing expenses efficiency index. The efficiency of data about wages, staff size and branches has been examined while the acknowledged data was compared, and reflected in dynamics and analysis.
The PMC Research Center team recently co-authored the Organisation for Economic Co-operation and Development’s (OECD) paper entitled Policy Responses to COVID-19 and the Green Transition: Emerging Good Practices in Eurasia.
We recently started working on a new project in Ukraine, conducting a summative evaluation of the Expert Deployment for Governance and Economic Growth (EDGE) project, as a contractor of the Canadian Embassy in Ukraine.
We recently started working on a new project aiming to promote high-quality international education and to provide secondary-level education to students from the six Eastern Partnership countries, funded by the European Union (EU) and implemented by the United Nations Office for Project Services (UNOPS).
On December 16, PMC Research conducted a presentation and public discussion on the findings of its research entitled “Electricity Market Prices and Georgia’s Energy Security,” which was aimed at drawing attention to the issue of electricity prices, their importance in energy security, and electricity supply security.
The number of international travelers increased by 249.2% in December 2021, compared to the same period of 2020, and declined by 73.3% compared to the same period in 2019. Meanwhile, the number of international visitors increased by 226.4% (2021/2020) and declined by 69.9% (2021/2019), and the number of international tourists increased by 239.1% (2021/2020) and declined by 53.7% (2021/2019).
At the beginning of 2021, the Hotel Price Index (HPI) was negative compared to both 2020 and 2019, however the monthly prices showed a significant YoY increase from June 2021 onwards and recovered considerably compared to 2019 levels.
In 2021, the average monthly prices of hotels exceeded both the pre-pandemic level (by 23.7%) and the 2020 level (by 39.1%). Looking at specific categories, the price increase has been most significant for 5-star hotels (by 12.1% compared to 2019 and by 51.4% compared to 2020), while for 3-star hotels the price increase has been least significant (by 4.8% compared to 2019 and by 20.1% compared to 2020).
In Georgia, the average cost of a room in a 3-star hotel was 135 GEL per night in December 2021, while the average cost of a room in a 4-star hotel in Georgia was 246 GEL per night and the average cost of a room in a guesthouse was 106 GEL per night.
The average cost of a room in a 5-star hotel in Georgia in December 2021 was 423 GEL per night. In Kakheti, the average price was 548 GEL, followed by Tbilisi - 524 GEL, Guria – 398 GEL and Adjara - 391 GEL.
Nearly two years since the outbreak of COVID-19, the spread of the virus itself, vaccination rates, and new variants, continue to shape the speed and strength of economic recovery. In the case of Ukraine, geopolitical and domestic political tensions are also important variables to have been hindering economic growth. In this issue, we provide an overview of the ongoing economic recovery in Ukraine and try to supply an economic forecast for the country for 2022, looking at the performance of each economic sector in the process.
This policy research paper aims to draw the attention of stakeholders in Georgia’s energy sector to the issue of prices, their importance in energy security, and electricity supply security. The paper firstly reviews the existing academic and policy literature and afterwards analyses the current structure of the wholesale electricity market in Georgia to identify different prices and payment schemes. This analysis of the Georgian regulatory framework, along with current data and tendencies, allows us to identify some fundamental issues that are inherent in the structure of the ongoing wholesale electricity market in Georgia. As a result, this policy research paper highlights some challenges that need resolving in order to strengthen the security of supply in the electricity market.
International rankings and indicators help us to understand and assess how countries are performing in different areas. In this bulletin, Ukraine’s positions in international rankings and the dynamics therein are reviewed based on recent data. Its positions will also be compared with other Eastern Partnership (EaP) countries (Armenia, Azerbaijan, Belarus, Georgia, and Moldova).
The number of international travelers increased by 288.8% in November 2021, compared to the same period of 2020, and declined by 73.0% compared to the same period in 2019. Meanwhile, the number of international visitors increased by 267.2% (2021/2020) and declined by 69.3% (2021/2019), and the number of international tourists increased by 283.2% (2021/2020) and declined by 55.3% (2021/2019).
Observing the total number of outbound tourism trips taken by Georgians in 2019 and the pandemic-dominated years since shows that from the beginning of 2021, the demand for international travel among Georgians has demonstrated significant recovery trends, the total number of outbound visits reaching 22.6% of pre-pandemic value in Q3 of 2021, due to vaccination rollout and the easing of entry restrictions in many countries.
An evaluation of the common characteristics of Georgian outbound visits shows that the outbound tourism industry is fairly concentrated in terms of the purpose of visit (top 3 purposes amounting 82.4% of total outbound visits) and visited countries (top 4 destinations accounting for 82.9% of total visits), meaning that the alleviation of entry restrictions to such countries positively affects the number of Georgians taking trips abroad.
In Georgia, the average cost of a room in a 3-star hotel was 135 GEL per night in November 2021, while the average cost of a room in a 4-star hotel in Georgia was 226 GEL per night and the average cost of a room in a guesthouse was 101 GEL per night.
The average cost of a room in a 5-star hotel in Georgia in November 2021 was 395 GEL per night. In Kakheti, the average price was 555 GEL, followed by Tbilisi - 544 GEL, Guria – 397 GEL and Adjara - 354 GEL.
This paper explores the alternative financial instruments that are or could become available to Georgian SMEs. Through the examination of various secondary sources and several interviews with relevant stakeholders, the paper identifies obstacles and opportunities in the path toward development of two asset-based instruments (leasing and factoring) and two equity-based instruments (crowdfunding and venture capital) that currently have limited availability and/or are being discussed by the regulatory authority of the country.
The paper also looks into several innovative practices that are increasingly being implemented around the world to support the creation of alternative sources of finance, namely open banking, regulatory sandboxes, digital banks, and central bank digital currency (CBDC).Based on secondary sources, the paper also includes three case studies on Lithuania, Poland, and Israel. Meanwhile, the paper ultimately provides several recommendations to foster the development of the alternative instruments reviewed in the paper in Georgia.
This quarterly report provides an analysis of economic trends, as well as denoting the challenges and opportunities (in local, regional, and global contexts) across selected value chains within six sectors to improve evidence-based decision-making through the provision of quality information and analytics. The specific sectors are tourism, creative industries, light manufacturing, shared intellectual services, waste management and recycling, along with cross-cutting sectors. The analysis tracks trends from the second quarter of 2021.
Please find the full publication in English and the executive summary of the report in Georgian.
According to a survey of Georgian economists, the economic climate in the country in the fourth quarter of 2021 has improved compared to the third quarter of the same year, as well as compared to the fourth quarter of 2020. Meanwhile, with respect to the current situation, the Georgian economists’ appraisal was again positive and has improved compared to both: the previous quarter this year and the corresponding quarter of the last year. The economists’ predictions for Georgia’s economic situation for the next six months were also positive. Indeed, their expectations for this period were much higher compared to their predictions in the third quarter of 2021 and the forecasts they made in the fourth quarter of 2020.