Government of Georgia – Government Meetings 2008 Year

The Meeting of the Government of 11 August 2008

At the beginning of the Meeting, Prime Minister of Georgia Vladimer Gurgenidze emphasized the support that international organizations, namely World Bank and European Bank for Reconstruction and Development expressed for Georgia that day. Vladimer Gurgenidze said: both of these organizations, which have been our largest donors and partners for many years, made their statements today. For example, World Bank's release says that World Bank wishes to express its belief in Georgia's strong economic fundamentals, that Georgia will remain committed to the prudent course of economic management, and that World Bank will continue its support the economic reform and development in the country. I'd like to remind that for over years World Bank's investments and allocations in Georgia have exceeded $1 billion. On conclusion, in their release they state that in recognition for the Georgian reforms, World Bank is considering new credit disbursements in the amount of $300-350 million to help the Government for the next 12 months to continue the reform course and rehabilitate the critical Georgian infrastructure, including roads, municipal works, etc. We talked much about the infrastructure issues before. Of course, there was much to do and now we may have to do even more but we will definitely do it. Georgia is acting and will continue to act as a regional transit country.

Then, the Prime Minister said: the statement of European Bank for Reconstruction and Development stresses that for the last few years the Georgian economy has seen considerable progress in terms of reforms. They mean the strength and dynamism of our banking sector. On conclusion, they underscore their role in financing the Georgian infrastructure projects. Many such projects were implemented in ports, airports, water utilities, energy and distribution sectors, railway, municipal transport and roads. Of course, we remain committed to working ever closer with this important organization. These are very important and timely statements and our appreciations go to them, but I'd like to add that Georgia has really deserved such support, considering the reforms that have been fleshed out in our economy for the last few years. Getting back to our transport logistical and transit functions, all works well. There were little interruptions but they were eliminated promptly and effectively. The Prime Minister expressed his satisfaction with the rapidness of response, saying: Poti Port has been operating in ordinary mode the whole day, a few ships have been discharged, and there are some other ships on roadstead waiting for their turn to come.

Proceeding from the comments that were made, Minister of Economic Development of Georgia Ekaterine Sharashidze said: Poti Port operations have been fully restored. 15 ships have entered the port, with 2 ships lying at each wharf. They were fully unloaded and loaded today. Batumi Port is also in operation, and Kulevi Port is waiting for one ship for loading. There are no problems with the railway. All the freight carried from the ports is moving in regular mode. Both passenger and freight trains are in operation. At this point, there are no interruptions on the railway. As for the airport, you know that the navigation radar near Tbilisi has been damaged this morning. We took measures to replace the radar. Besides, we put on two standby radars. So we are using them now and are secured that there will be no problems in civil flights.

Thereafter, the Prime Minister said: the customs authority is working; freight is going in both directions as well as in a regular mode to Armenia and Azerbaijan. The Prime Minister inquired about the Ministry of Finance, at which Minister of Finance NIka Gilauri said: all the structures of the Ministry, including the customs and tax authorities, are working without interruption. Cargo turnover is almost to the same level, dropping slightly, what with certain decreases in transit cargo turnover. Export and import cargoes are shipped without any problem to and from Turkey and Azerbaijan.

Afterwards, the Prime Minister of Georgia inquired about the situation in the system of the Ministry of Labour, Health and Social Affairs. Aleksandre Kvitashvili, the Minister of Labour, Health and Social Affairs of Georgia, informed the audience: there has been no serious change in our area. The number of the wounded has slightly increased compared to yesterday's figure. Hospitals are operating in full blast, very effectively, for which I'd like to express appreciations to the medical personnel. However, there is one problem. We can't enter the conflict zone to carry out the wounded through a corridor. Despite the attempts of a few international organizations, including the Red Cross, we failed to obtain Russia's consent to open a corridor either from the territory of Georgia or Vladikavkaz. Since 2 p.m. yesterday, our services have been mobilized along the border in Gori Region to enter the conflict zone. We've been waiting for their permission but in vain. Therefore, the figure that I named yesterday, namely 94 dead, still remains the same, as we have no other fresh figures.

Afterwards, the Prime Minister of Georgia asked Minister of Agriculture Bakur Kvezereli to provide information on food supply efforts.

Minister of Agriculture Bakur Kvezereli said: there are no interruptions in production, sale or distribution networks. Food supplies are regularly delivered to all retail accounts and sales take place regularly. We have no reason for panic, as all goes smoothly.

The Prime Minister of Georgia thanked the Government members for their information.