The Meeting of the Government of Georgia was held on 3 November 2006. The Agenda consisted of 36 items.
At the commencement of the Meeting, Prime Minister of Georgia Zurab Noghaideli briefed the Government members on the results of the financial and economic performance of October. In particular, he said that despite the sanctions imposed by Russia on Georgia, the budget tax revenue target had been exceeded by 38,5 million Lari in October; other targets had also been exceeded, and above all, the economic growth pace that Georgia had had at the beginning of the year had been maintained. The wage fund in the private sector had increased by 37,2%, bearing witness to the continued trend of creation of new jobs in the country. The inflation rate for the past 10 months had accounted for 6,8%. Due to the Russian sanctions, there had been certain interruptions in supplying certain products, e.g. wheat but special measures had been taken to set up an alternative transport logistics.
The Prime Minister of Georgia stated that from the following year GazProm had set 230 US dollars, a different rate for our region, for each 1000 m3 gas supplied by Russia to Georgia. That, in fact, was a political price. The Government of Georgia was continuing the efforts it launched last year to find alternative gas supply sources, and that the Ministry of Energy and other competent authorities had been assigned to timely complete negotiations to that end with the relevant authorities of Azerbaijan, Turkey and Iran. The Government of Georgia would also assist Georgian companies in their negotiations with GazProm to make sure that the gas supplied from Russia was purchased at the regional price.
The Prime Minister of Georgia briefed those present that under the assignment of the President of Georgia for better utilization of Georgia's water resources and building new hydropower stations in the country, the meeting of the relevant commission of 2 November had made a decision to build 2 hydropower plants (with the total capacity of 87 megawatt) and 1 windpower plant in Georgia. The negotiations would be finished and the relevant contract would be signed in a few weeks.
Zurab Noghaideli asked Energy Minister Nika Gilauri to report about the preparations in the energy sector for the coming 2006-2007 autumn-winter season. Nika Gilauri discussed the situation in the energy sector, saying that as a result of the rehabilitation works conducted on the hydropower plants, Georgia would be able to generate additional electricity capacities in the winter period. Besides, negotiations were underway with the Republics of Azerbaijan, Turkey and Iran on seasonal exchange of electricity and supply of alternative gas. He also said that at the end of 2006 the Georgian gas system would receive gas from Shah-Denis Gas Field of Azerbaijan.
Press Center of the Chancellery of the Government of Georgia