2022-12-27
Dear Colleagues and Friends,
Distinguished Guests,
Representatives of the Patriarchy,
Dear Ambassadors,
Representatives of Embassies,
Let me greet you all! First of all, I wish to thank you all for being here today. I wanted to report back to our society and you. Once again, it is a great honor to be here. We have all been through a very challenging time and the Government, along with Parliament and society at large were engaged in the management of this process. Ultimately, our country has exited victoriously at this point in time.
Initially, I wish to start with an overview of the region. Unprecedented challenge and crisis is faced on the continent of Europe. War in Ukraine is, of course, a huge challenge to us all. It has made a voluminous impact on the continent of Europe itself and our region and our country - everyone and global politics.
It may be said that the entire world is experiencing a huge challenge, which has not been witnessed since WWII. We understand it well and it is a tremendous challenge. Therefore, it requires very prudent management. We pursue our policies accordingly. From day one, we are following the right policy and have been implementing it since then. I have said it many times and it is a shared approach of our team that we should be predominantly guided by the best interests of our country. We have been acting with this key motivation and idea, by pursuing the policy needed for our people in the first place and our national interests.
Once again, I wish to state that we are very concerned with this war. I wish to once again demonstrate my support to the Ukrainian people, wishing them peace and quick ending of this war. We reiterate our support for the sovereignty and independence of Ukraine. I once again wish to note that this war needs to end as soon as possible.
Meanwhile, I wish to once again remind our public that during the pandemic, as well as in the post-pandemic phase, our country combatted a number of challenges. You may well remember that our country was not yet out of the pandemic, when the devastating war started, which gave rise to major problems of course. Nevertheless, with our joint efforts, we - together with our team, Parliament and authorities at large - managed to achieve a 10% economic growth for the second year in a row. This achievement and abundance is, of course, translated into the benefit of our people and reflected on our country, people and society.
I wish to touch upon the main development of the year, which is a decision made by the EU on granting the European Perspective to Georgia, which was hard to imagine before. This war has accelerated the process. We understand it well. I wish to note that we were expecting the candidacy status, but we understand that it was only a political decision, rather than being a merit-based one. Georgia thus did not receive the candidacy status, though we believe that it will be granted to our country very soon. Reasons for thinking this way are the developments and successful reforms that we have all implemented, along with 12 recommendations defined for our country, implemented with high precision with engagement of us all - government, parliament, all of us. We are now expecting a decision to be made by our European colleagues. I wish to remind our society hereby that every achievement, every progress made in the past 10 years on the path of European integration is great merits to our team only - be that the EU-Georgia Association Agreement, DCFTA, Visa-Free Travel Arrangement and now an official application for EU membership with European Perspective granted to our country - all of these are great merits to the Georgian Dream!
Now as for the economy, I wish to report on several specific results. First of all, let me repeat again that we are thrilled that economic growth will be 10% this year again. Last year it was 10.5%. Gross Domestic Product (GDP) Per Capita in 2020 - for comparison - was around 4200 USD. It grew in 2021 and this year is expected to be about 6700 USD. Our forecast for 2023 will reach 8000 USD.
Economy of our country in 2020 was around 50 BLN GEL, while it will be 80 BLN GEL in 2023, i.e. we have achieved a growth of 30 billion in 3 years. You may agree that it is quite significant progress. However, we understand that this pace should not stop and more needs to be done with greater responsibility, higher speed. We should continue with our progress and reforms.
External Debt - for your information - was increased to 60% of GDP in 2020, while we succeeded in reducing it to 39% in 2022 and it will further decline next year and reach 38%. External Debt volume has been reduced by over 22% within 2 years. During the pandemic - you may recall - the budget deficit was very high at 9.3%. When I was appointed as the Prime Minister of Georgia last year, it was reduced to 6.1% and later - this year - to under 3%. Next year it will be 2.8%, which is also a considerable progress. I wish to thank everyone [engaged in this process].
Now, as for the export indicators: you may be aware that in the past 2 years we substantially increased exports from the country. Jan-Nov (11 months of 2022) data evidence that it has been increased by 32%, amounting to over 5 BLN USD. Domestic exports increased by 21%, amounting to 3.4 BLN USD. Trade volumes in Jan-Nov (11 months of 2022) reached 17 BLN USD, which - compared to the previous year - evidenced a 32% increase. I wish to hereby note that trade volume in the first 10 months of the year exceeds the annual indicator of the previous one.
Tourism has recovered at a high speed. It could be said that it recovered completely. We have more room to increase it further next year. Proceeds from tourism amount to 3.2 BLN USD.
I wish to note herewith that transportation of cargo by road, rail and other means is record-high amounting 25 billion tons, which is almost 20% higher than the respective indicator of the previous year.
Dear Friends, it was a positive year for the foreign direct investments (FDI) as well. Indicator for 2022 increased by 100%, amounting to about 1.7 BLN USD during the first 10 months of the year. If we compare this indicator with that of 2021, the increase will be 100%, as I told you already, and 72% in contrast with 2019. I wish to note that the share of the EU in the FDI is 47%.
Poverty and unemployment, naturally, is our main challenge for our government in the country. Our declared policy is to overcome poverty and reduction of unemployment in the most efficient manner. Q3 of the year stood out in this context as well. Unemployment level dropped to the historic minimum and amounted 15.6%. I also wish to tell you that 229 000 new jobs were created within 2 years - from Q2 of 2021 through Q3 of 2022. Thus, 229 000 people got employed within almost 2 years, out of which 209 000 jobs were created in the private sector and you may be aware that several months ago we launched a program of public works, which envisaged the employment of socially vulnerable, but otherwise capable individuals. Over 30 000 socially vulnerable people got employed in the past 6-7 months. Resources are wide-ranging as you may well be aware that 200 000 individuals in the country are regarded as socially vulnerable, but otherwise capable individuals. Our aim is to get them all employed both in the public and private sectors.
Very briefly, I also wish to say that - as I told you - we expect a 10% economic growth this year and according to the medium-term forecast Georgia will have one of the highest economic growth indicators in the region and throughout Europe. These are projections of our partners - IMF and World Bank.
Now, as for the energy sector: it is one of the key sectors, which should be developed further and with greater effort. We need to attract more investments. Past 5 years were almost idle in terms of investments to the sector. Under my instructions, active work was pursued with the IMF and we agreed to introduce a new scheme. It has already been approved at the Executive Government Meeting. Tenders will be announced for 1500 megawatts in total. Apart from this, there are the 800 megawatts already committed under the PPA (Power Purchase Agreement). That will be commissioned as well. So, overall, we are referring to at least 2300 megawatts of energy capacity a year that will be generated at hydro power plants (HPP). It translates into an investment of almost 3 BLN USD. It includes hydro, wind and solar energy, which is so important for our energy security and energy independence.
I wish to clarify for our society once again that development of energy generation has a tremendous importance for the energy security and energy independence of Georgia, especially against the background of what is happening now in Europe - energy crisis, price increase, when an average price per kilowatt of power energy is 20 cents in European countries. It even went up to 80 cents in Germany in summer. Other countries had 50 and 60, but the average price is 20 cents. Price on energy is very cheap in Georgia. That is why I highlight that more efforts need to be taken towards this end. For that very purpose, we approved a new scheme, as I told you. Besides, we made a successful step forward within this domain. You may well be aware that I was visiting Bucharest a few weeks ago and we launched a historic project. It is an entirely Georgian initiative. We brought it to the EU, to our partners, to our friendly Azerbaijan and Romania. We started to implement it together with Romania, which was joined by Azerbaijan, Hungary and acquired full support of the EU. You have seen that Mrs. Von der Leyen was with us in Bucharest and we celebrated the launch of the project. Feasibility Study will be completed and made readily available in a few months. We will then move to active work towards this end. What will it bring to the country? One may ask. It may be said that it is similar by scale and magnitude to Baku-Tbilisi-Ceyhan (BTC). It is a means of guaranteed sales of power directly linking our grid to the EU grid and market. It is a project of truly historic significance! It will cost about 2-3 BLN USD and we will implement it together with all those countries who signed the Memorandum. That is why, I once again wish to note that it is essential for Georgia to have the relevant energy generation capacity and that is why we need the power energy generation facilities to be built in terms of wind, solar and hydro, as well as thermal power plants to make sure that we sell our share of power energy to the EU, which will generate hundreds of millions in revenues for our country and be ultimately reflected on our people as an overwhelming benefit. I wish to note herewith that when economic growth is ahead of energy generation, it is essential to change the proportion and correlation. Energy generation should be ahead of economic growth in the country. It is believed to be the right sequence.
Very briefly, I also wish to say that we had a discussion on this topic. You may recall that several weeks ago I announced that Anaklia Port will be built by our - Government - decision. State should be the owner of this strategic asset. State will thus own 51% of Anaklia Port. Poti Port is privatized. Batumi Port is privatized as well. We have no leverage to regulate the tariffs or other aspects of their operation. Especially when Central Asian countries agree that diversification and identification of new routes is essential, our corridor acquires a special importance. Particular focus is made on our corridor and that is why ports, infrastructure and railway need to operate smoothly. That is why we pay special attention and will make efforts and investments. On the remaining 49% we wish to announce an international tender. Many companies are expressing their interest and in the coming months we will have the result known.
As for the railway, we have record-high revenues and the volume of transported cargo is skyrocketing as well. We need to complete the modernization of the railway in the most efficient manner and to reach the adequate throughput to service the volumes targeted towards our corridor. The Baku-Tbilisi-Kars (BTK) project will be completed in 2024. We already reached an agreement with our friendly Azerbaijan and 100 MLN USD has been allocated to complete this project. Works are progressing in an active manner. 86% has already been done and this project will be officially inaugurated in 2024.
Let me also say very briefly that one of the main avenues of our interest is to gradually transform our country not only into an Energy Hub and Transport Hub, but tremendous potential exists for the development of a Digital Corridor connecting Asia with Europe, thus transforming Georgia into a Digital Hub as well. We are actively working towards this end. Georgia has a potential to turn into a Digital Corridor and Hub linking Asia with Europe.
Also, let me say that this year a Strategy has been completed by our advisers - The Rothschilds - which is aimed at turning Georgia into a Regional Financial Hub. We will be starting the implementation of this strategy - plan - from next year and results will be reported later.
We have an idea related to the Parliament building in Kutaisi, so that it does not stay idle. We are working on the idea and a concept to develop an IT segment there by creating a so-called IT Hub within this building that would attract the youth, talented generation that will get employed and fully realize their potential.
We also plan to offer large development projects to potential investors. With this purpose, I was visiting the United Arab Emirates (UAE), Qatar and Saudi Arabia. Georgia has a unique location with unique opportunities and potential to attract very interesting investments.
As for business enabling, you may well be aware that our Government has a most pro-business signature and we do our best for developing entrepreneurship. In the past two years, 125 000 companies were incorporated in the country. 125 000 companies! It evidences that private sector and businesses are most active. It is not a coincidence that 229 000 new jobs that I mentioned are great merits to business with our significant contribution.
Let me say a few words about the tailor-made programs that are successfully carried out. I am referring to Enterprise Georgia with an improved co-financing initiative covering over 300 economic disciplines. Additional 60 economic disciplines have been selected with high export potential. This year 330 companies within this scope either started to operate or extended their operation. Since the launch of this program in 2014, over 1500 projects have been funded and 2.5 BLN GEL has been invested. 35 000 new jobs were created through this funding. As for the program of Micro Grants, over 1400 applicants benefited and over 8200 projects have been financed in total. Thus, 21 000 new jobs were created.
I wish to say a few words about a program subsidizing the mortgage loans. I wish to once again remind everyone that this program was launched last year with an intention of helping the newly created families, as well as those who have an addition. We have managed to support over 4000 families this year and in total over 11 000 households purchased apartments in the total value of over 1 BLN GEL. It is a very substantial support and I wish to again urge everyone to apply and benefit from this program.
As for the tourism and development of spa resorts at large, it will be one of our key directions. Tourism has recovered quickly. Georgian airports serviced 4 million passengers this year. It is about 81% increase compared to the previous year, while being an 83% recovery from the level witnessed in 2019. We have an 80% recovery towards this end. At the aviation market of the country we used to have 37 air carriers this year, which is by 9 companies higher compared to 2019.
We will be starting the rehabilitation of 10 new spa cities and hamlets in 2023. It will be a complete renovation, which we believe to be interesting for our tourists and citizens of the country. We selected the most popular resort locations. That is why 10 new spa cities have been shortlisted and presentation of our plans will follow in a few weeks. We will be elaborating our concept in fine detail. Also, we studied over 100 climate and balneology spa resorts, their locations and development potential. We wish to offer them to local businesses and investors. Studies of almost 300 spa resorts will be completed in 2023. Interesting and attractive investment projects will be soon presented to businesses on the referred spas and resorts.
Also, we are developing yet another unique project and concept paper, envisaging the development of pilgrimage tracks branded as On the Footsteps of St. Nino, which entails 540 kilometers through Foka-Bodbe route. Similar pilgrimages in the Christian faith are very popular and in high demand throughout the world. We wish this project to be considered. Also, we are developing several specific locations for their development. You may well be aware that our country is rich with lakes and water reservoirs; we selected specific locations e.g. Triala Lakes, Nadarbazevi Lake, Mysterious Lake, Lakbe Water Reservoir, Paravani Lake and we will be making interesting offers to businesses towards this end.
In several months Georgia will decently present itself at a Tourism Fair in Berlin. I am referring to ITB Berlin, which is a significant opportunity for our country to once again showcase our potential in tourism. Target audience is tremendous and wide-ranging with 200 000 people in attendance, including 100 000 business visitors at the event and multi-million TV viewers getting exposure to our country and its potential.
I wish to also tell you that we are actively working on spatial planning. It is an essential task. We started work towards this end this year. The Ministry of Economy is working on the task and we wish to complete the work on the Strategy of Spatial Planning branded as Georgia 2030. It is important to make sure that no chaotic constructions are further made in any municipality and resort, so that we once and for all have a complete spatial planning concept and vision on what should be developed where and how.
As for the infrastructure, you may well be aware that we are investing colossal amounts of money towards this end. Investments are voluminous in billions. For instance, this year over 5500 projects were implemented in total and we employed 25 000 people. These projects engaged almost 1200 companies.
For your information, let me say that over half of the international highway - the East-West Highway - is already built. Work was progressing at 118 kilometers in 2022, out of which surface will be laid on 40 kilometers, including Rikoti and 15 kilometers are already commissioned.
We may label this historic project as centenary. We will be completing and commissioning it in 2024. The entire highway will be completely built and in a mere 3.5-4 hours one may get from Tbilisi to Batumi.
Also, let me tell you that construction of Kakheti Highway is progressing in an active manner as well. You may well be aware that we started the implementation of this project this year and it is scheduled to finish in 2024, making Kakheti Highway available for commuters.
Dear Friends and Distinguished Audience, in total almost 2000 kilometer-long roads were rehabilitated this year and over 13 500 kilometer-long roads have been built, repaired or rehabilitated since 2012. Also, 234 kilometer-long highways have been built in total in the country, out of which 116 kilometer-long highways have been built since 2012.
As for the water supply, let me tell you that we promised to supply tap water to every city round the clock (24/7) by the end of 2025. Projects in the value of 3 BLN GEL are being implemented now for regular water supply. Over 200 locations have been covered. For instance, this year we completed the projects at 38 locations and over 140 000 households have an improved water supply. Let me repeat that we will complete the water supply projects in every city in 2025 and tap water will be made available on a regular basis (24/7) to our population.
As for the State Budget allocations, a record-high amount was earmarked for the Ministry [MRDI] and infrastructure sector at large. Over 3 BLN GEL was allocated. I remember, when I was appointed as the Prime Minister of Georgia last year, we had a discussion within the team about the prospects of the budget towards shrinking, rather than augmentation. We even expected halving, but still managed to increase it to over 3 BLN GEL and it will be 3.3 BLN GEL next year.
As for the regions, I want to say briefly that our declared policy is to equally distribute the benefits among the regions, so that prosperity reaches every corner of the country.
We launched a Regional Renovation Program in every municipality towards this end. It turned out to be quite successful. We managed to renovate every municipal center and upgraded 564 buildings, utility networks; 92 parks and squares were built. Program is progressing. At this point in time, over 400 MLN GEL is invested within the scope of the program.
Also, we studied the physical condition of kindergartens nation-wide. It is one of the major challenges in the country, as our children are raised in rather shabby conditions to say it straight. That is why it was essential to launch the program. We will be starting the rehabilitation of 885 kindergartens from next year and this initiative will be phased into several stages.
This project is in total worth of 300 MLN GEL and every kindergarten will be built, repaired and refurbished according to the European standard. I also wish to say that the same applies to our school buildings. Let me remind you that we will be starting the rehabilitation and refurbishment of about 800 of them. We will be launching these projects at 400 schools in 2023, out of which 80 will be built, while others will be entirely refurbished and equipped to European standards. It is also in the value of about 1 BLN GEL.
Dear Friends, I wish to tell you about agriculture as well. It is a significant sector of our economy. You may well be aware that millions are invested towards this end since our party came to power for the development of agriculture. I will also tell you that programs launched in 2012 onwards turned out to be very effective and led to tangible results. I wish to share some data on them.
First, let me start with the grape harvest collection. It was our promise to make winegrowing and winemaking into one of our strategic directions and as we are a homeland of wine, this sector required special attention and care.
For comparison, let me note that the previous government allocated no support to winegrowers, our farmers and peasants whatsoever. On the contrary! They were driven to cut the vine and we saw it happening with our own eyes. If vineyards were destroyed under their rule, we enabled the expansion by 16 000 ha in the past 10 years, increasing the total size of vineyards to 41 000 ha. It is a specific result that was witnessed under the program and policy pursued by us. Almost 380 MLN GEL has been allocated as subsidies to winegrowers and winemakers and over 2 BLN GEL has been generated as sales revenues by local farmers in Kakheti during the past 10 years - from 2012 through 2022. It is a specific result as well.
Also, I wish to tell you that we have record-high data from the sale of wine. Production, export and sales reached 91 million liters. State has in total allocated over 600 MLN GEL on the development of viticulture in the country. Also, we are actively supporting the cultivation of perennial crops. Over 20 000 ha of orchards were built in the past 10 years. Also, we started to support apple growing. Farmers have this specific support from our Government, similar to hazelnut growers. Country has a tremendous potential of growing and exporting hazelnut. Several weeks ago, we announced that we will be offering a tailor-made program to hazelnut growers in Georgia and this process has commenced. We will be supporting the Samegrelo and Guria population in a particular manner.
In total, I wish to tell you that 4.9 BLN GEL has been allocated since 2013 and over 72 600 concessional agri loans. Co-financing from the State has amounted to 665 MLN GEL. Over 41 000 beneficiaries enjoyed this support and these programs.
I also wish to tell you that when we talk about the development of agriculture, we of course intend to upgrade the irrigation infrastructure. We implemented 407 rehabilitation projects during these 10 years. This initiative has covered 2 045 kilometer-long irrigation and 1 295 kilometer-long drainage canals; 53 treatment facilities and 47 pump stations have been repaired, which is a significant support to our farmers.
As for environmental protection, you may well be aware that protection of the environment in Georgia is one of the key priorities of our Government and a lot has been done towards this end. We have concrete plans on what to do in future as well. Recovery of eco-tourism is progressing at high speed in protected areas. According to the date of the first 11 months of the year, the number of visitors has exceeded 880 000. Thus, more investments need to be made in eco-tourism and for the development of applicable infrastructure.
I wish to remind another significant project to our society, which turned into a successful project implemented this year. Namely, I am referring to the land parcel granted to us in Jordan. Georgia has thus acquired 4000 square meters in Holy Land. Blueprints are currently being designed in an active manner and we will soon start building the site as soon as we get the construction permit for the Culture and Spirituality Centre of Georgia. We will thus return to the Holy Land. It is a very significant project and we will be implementing it very soon.
As for defense and security, you may well be aware that provision of care to our servicemen is among the priorities of our Government. We have carried out a number of projects towards this end. Every base station has been refurbished and projects are in full swing to this day. We launched the construction of a new base station in Mukhrovani at the value of 70 MLN GEL. Hundreds of millions have been channeled towards this end in the past 3 years. Every base station has been upgraded to international standards. Our servicemen now dwell in decent conditions when defending our homeland. In a few months we will be launching a Reform of Mandatory Conscription. It was one of our main promises. You may well be aware that a notorious scheme developed by Girchi Party was a challenge we faced, as hundreds of young men were given a possibility to stay away from conscription. It was a problem left without being addressed. Girchi Party found a gap in the legislation and abused it. Thus over 10 000 individuals avoided military service, which is, of course, a major problem. Therefore, we found a solution. New Code will be enforced upon its adoption and it will solve the referred problem. We also developed an effective system. Military service will be of 6, 8 or 11 months-long depending on the chosen career. It will, of course, be an intensive boot camp training in the theory and practice of military defense.
We will continue empowering our army. Procurement of modern hardware systems has been pursued actively for the past several years. We are procuring and upgrading our anti-tank and air defense equipment. We will be commissioning and allocating apartments in residential blocks to over one thousand servicemen. I am referring to the Army City project we succeeded to implement in a mere 2 years.
Also, let me tell you that active work is pursued for upgrading the military aviation system by rehabilitating and modernizing the planes and helicopters, along with the air defense systems. We are working with a famous Israeli company Rafael to upgrade and modernize the advanced systems, as well as to procure new ones. We also started to manufacture M4 firearms and they are now being checked for quality assurance. We are also starting to produce drones with a Polish company. In several months we will be operating this manufacturing in full swing with an output of several thousand drones.
I wish to say a few words about the police. I wish to express my gratitude to our army and police, hereby declaring full support to our ministers and their institutions. We launched very important programs for the police by upgrading their infrastructure, equipment and pool of vehicles. Hundreds of cars have been purchased for our policemen and their vehicle pool will be upgraded in full. Also, we have significant plans towards arming them and work is in progress towards this end. We will also start the construction of a Police City in a few weeks. It will be residential blocks with over 1100 units for the policemen.
I wish to thank the police for yet another reason: clearance rate is unprecedentedly high according to data for the first 11 months of 2022. It has reached 60% and my gratitude once again goes to our police. Also, you may well be aware that we have now completed the procurement of 3 new helicopters and fire fighting vehicles of French manufacturing. In total 816 surveillance video cameras have been installed this year and 6 230 ones are operating nation-wide. You may well be aware that salaries and wages for the army and police will be increased by 20%. All other civil servants got a pay rise of 10% last year. In 2023 it will be increased further by another 10% and this process will continue during the coming 4-5 years.
As for the system of justice, we can say a lot here as well. Let me say briefly that we all remember the conditions witnessed at penitentiary institutions in the past with all the inhuman, sadistic measures enforced towards inmates. Torture, slaughter, suffering of our citizens used to be practiced at prisons. Of course, it was a systemic crime and Georgian people put an end to that through elections. Since then - 2012, we have made a radical change in the penitentiary system under different ministers. Now, Rati [Bregadze] has very interesting initiatives. Further improvement is witnessed in the dwelling conditions of inmates, along with the formal or informal education courses that are offered with various sports activities and maximum care for prisoners in our country. It is a signature of our humane policy.
You may recall that the European Court of Human Rights used to consider thousands of appeals against Georgia during the previous rule. Number of applications ranged between 3000-4000, while Strasbourg Court is ruling on 138 appeals against Georgia as of July 1, 2022. It is a radical change, which was made by our governance in a mere 10 years. Thus, torture and suffering will never return to our country.
Also, you may well be aware that active work of our Government has led to the winning of every case related to the War in 2008 in Strasbourg and The Hague. Of course, it is great merits to our Government and our civil servants that Court Rulings have been issued in our favor. I once again express my gratitude to them for this.
Mortality rate at prisons used to be around 146 on average in 2011-2012. Now this indicator has gone down to under 20. It is a huge difference,
I once again wish to note that a lot is being done and will be done further in future. New final draft Code has been submitted to the Parliament and we will start working on the adoption of the new Code. Also, I wish to say that serious adjustments are being made at the Probation Bureau. Innovative technologies and equipment were presented several months ago. The so-called Probation Box is equipped with fingerprint and face detection technologies.
Innovative project of House of Justice on Wheels will also ease the accessibility of public services to our population. Almost 470 services are thus offered nation-wide to our citizens. Of course, construction of Houses of Justice is progressing and 117 ones have been built already. We will also complete a systemic land registration in 3 years and it is a very important aim. Work is progressing on schedule in 59 municipalities and this project will be completed in 3 years.
As for the policy pursued by the Government towards reconciliation and equality, our main priority is, of course, the continuation of our peace policy towards occupied regions with an effective implementation of our reconciliation and engagement policy. Our aim is to improve the socio-economic condition of the war-affected population by supporting the cooperation and recovery of trust based on common interests and reconciliation of artificially divided societies.
You are well aware that the Office of Tea Akhvlediani [State Minister for Reconciliation and Civic Equality] is doing a lot together with the Parliament of Georgia and we are greatly helping our Abkhaz and Ossetian compatriots, our brothers and sisters. We are not publicly speaking about it and it is our conscious and conceptualized policy. That is why, we do not wish to give it a high profile, though I wish to tell you that a lot of people are benefiting from our service offerings. For instance, 230 students got admitted last year and over 1300 people received our healthcare services. Of course, it will be pursued in future as well.
In general, I wish to say that our shared goal should be the unification of our country. It is the prime aim and idea, around which our nation and country should all get united. Unfortunately, sadly, our opponents talk about everything, except the most vital and important topics for our country and people.
You may well be aware that the so-called state budget of the occupied Abkhazia consists of several hundred - if I am not mistaken, 200 MLN USD. Thus, they are fully subsidized and I wish to say the following: It is a missed opportunity for our Abkhazian and Ossetian brothers and sisters. In the case of unification, we could invest about 10 BLN USD in the first three years in Abkhazia and Samachablo. It could very easily be organized and we have conceptualized this topic. We had a discussion around this matter at the Economic Council Meeting. Abkhazia could turn into another Monaco. It is not an exaggerated assessment. Abkhazia has a huge potential for turning into another Monaco and Sokhumi - into Monte Carlo. It may well be said so. That is why, of course, our policy is peaceful and we wish to heal the wounds of so many wars. Once again, I wish to say that our policy will not be revisited. Our sole intention is to resolve the conflict only with peace to end this horrible tragedy and reconcile to make sure that we all live together in a strong Georgia - European Georgia.
As for our healthcare policies, let me remind you very briefly that we have had a rather successful year. I would single out the medication reform. We had a very considerable discussion on the medication pricing and managed to drop them significantly upon opening the Turkish supply market. Prices dropped by 60 or even 80%. Now, we - our Healthcare Minister - have submitted a new initiative to the Parliament of Georgia and I thank MPs for supporting it. Reference prices will be set on medication and it will further reduce prices on medication by 40%. Of course, it will ultimately be reflected on the welfare of our population. Only through the exposure to the Turkish supply market, prices dropped by 60-80% and our citizens will in total save over 200 MLN GEL in terms of out-of-pocket payments. Of course, it is a very tangible result.
Also, second tier pharmaceuticals are currently only prescribed electronically with a permitted indication of generic name only. You may well be aware that over 1100 items of chronic and cancer treatment will have reference prices set from the coming year and later all other prescription medication will be covered by the said reform.
Also, it is vital for us to have permanent quality control over medication. Transition to the Good Manufacturing Practice (GMP) and Good Distribution Practice (GDP) will be completed by the end of 2022. Also, the country will have a national drug quality lab of sound, advanced standards. Our main goal should be the delivery of high quality healthcare and medication. That is why we are actively working further. Next year, we intend to rehabilitate and construct 150 out-patient clinics. We are also planning significant reforms towards primary healthcare. The Minister [of Health] has presented a specific vision on this to the general public.
As for labor, employment and social security, you may well be aware that we started to tighten the online gambling business regulations and banned the engagement of youth aged 25 and younger, as well as of individuals suffering from addiction. Banned list also includes socially vulnerable people and civil servants. They are prevented from online gambling. Almost 1.5 million people are captured in the banned list.
Equally important is to fully ban the advertising of gambling, which we managed to achieve this year with support of the Parliament of Georgia.
As for employment and our steps made towards this end, let me tell you that we succeeded in launching a public employment program and we will be further expanding it. We should get 200 000 socially vulnerable, but otherwise capable individuals employed in the coming 2-3 years, both in the public and private sectors.
As for the indexation of pensions, we started to regulate the system at the legislative level last year. It led to the annual and guaranteed increase of monthly pensions. By taking into consideration the double-digit economic growth and applicable legislative provisions, pensions will be increased significantly next year and become 365 GEL, while about 440 GEL will be paid in high terrain regions. Also, we increased the monthly allowances to socially vulnerable children to the extent possible. For comparison, it was zero in 2012 and no financial aid was provided to socially vulnerable children. We started to care by first paying 50 GEL some years ago - if I am not mistaken, two years ago - and then increased it to 100 GEL last year and later to 150 GEL. Monthly child allowance will become 200 GEL next year. Each child will receive 200 GEL and this project will cost 465 MLN GEL from the State Budget. In total 232 000 children will receive this monthly allowance worth 200 GEL and this program is budgeted at almost half a billion.
Also, I wish to say that in general, demographic matters are problematic and require a more comprehensive approach. We plan to provide a one-off support to every third and following newborn from 2023 in the amount of 1000 GEL. Also, we have witnessed an interesting trend and had a discussion on this topic. Most large families with multiple children tend to be socially vulnerable. Every third, fourth and following children are born in socially vulnerable households. That is why, it is our duty to provide greater care towards this end.
Also, we made a decision several weeks ago to increase the maternity leave allowance from 1000 GEL to 2000 GEL. I have spoken about it in public and it is essential to have a greater engagement towards this end. It is important and a matter of national importance. That is why demographic topics require a comprehensive approach and unification of the public.
As for the general issues related to internally displaced persons (IDP), you are aware of our policies and we are now launching a wide-scale project. We will be constructing residential blocks for 13 000 families. It is a project in the value of 900 MLN GEL to be completed in the coming 2-3 years. As a result, 13 000 households will receive apartments in the said residential blocks. Since we came to power, over 29 000 IDP households received places of residence.
In terms of education and science, I already told you that we are launching a wide-scale reform in terms of rehabilitating school buildings. It is a project in the value of 1 BLN GEL, implying the construction and rehabilitation of 800 schools. Tenders are currently announced for the construction of 80 new schools and rehabilitation of 320 existing ones. In total, as I told you, 800 schools will be fully rehabilitated according to the European standards.
As for vocational training, this direction is among our key priorities as well, of course. The Minister of Education is working hard towards this end. Our aim should be to deliver high-quality vocational training to the youth, as well as higher education. Minister has specific plans and aims set towards the reform.
Our goal is to deliver high-quality pre-school, general schooling and higher education to our future generations. Overall, allocations from the Stata Budget towards this end have increased by 340 MLN GEL and will exceed 2 BLN GEL. It will be around 2.345 BLN and let me also tell you that a significant reform has been launched with an initiative of the Minister. It intends to equip 400 schools with computers and IT Labs. Every school should have such computer labs.
Herewith, it may be a detail, but a significant one and I still wish to say that our attitude is shown in this as well. You may well recall that History of Georgia was no longer taught at schools for quite some time prior to 2012. Unfortunately, the history of our country was almost wiped off and our future generation was not taught this subject. That is why, with an initiative of Mr. Chkhenkeli, it got back to the curriculum and History of Georgia is now taught again at schools.
As for culture, sports and youth, let me say briefly that we have a plan to rehabilitate and construct Kutaisi Opera and Ballet Professional State Theatre, Poti and Dmanisi Drama Theatres, as well as Akhaltsikhe Theatre. Also, rehabilitation works are progressing at Shalva Amiranashvili State Art Museum. In terms of sports, we have substantial plans to rehabilitate every stadium. They will be repaired and upgraded. Also, we plan to host the UEFA European Under-21 Football Championship together with Romania, which will, of course, be a very delightful event for our population, for our people. We have allocated almost 100 MLN GEL towards this end. Stadiums and sports fields are under a complete rehabilitation and reconstruction at present. After the European Championship all the stadiums upgraded to the UEFA standards will remain in large cities of Georgia - Tbilisi, Kutaisi, Batumi and regions as well.
Lastly, let me highlight several important milestones evidencing the progress of our state. According to the Open Budget Index, Georgia was categorized as a country of limited transparency 10 years ago, progressing to the category of substantially transparent countries, while being ranked fully transparent since 2017. We are now ranked first globally in terms of budget transparency and it is, of course, a huge achievement of our government, once again evidencing the open and transparent performance of our Government.
These are the key priorities that I wanted to report on.
Once again, I wish to thank the members of our government, our parliament, our team, our ruling party, our society and our church.
I wish to once again note that in these turbulent times we are governing the country with sufficient prudence and meticulousness. I believe that with our common engagement and public support we will go through this period with peace. Our main goal is to maintain peace and stability, which is the core foundation of the welfare and development that I now elaborated.
I want to wish peace to our people and once again express my gratitude to you all. Happy New Year and Merry Christmas!
God be our protector!
Thank you!