2016-12-29
It is our last Government meeting this year, and I would like to offer you a brief summary of 2016, including the most important events, achievements, and challenges. Firstly, 2016 was a year of free, democratic elections won by Georgian Dream. It involved a significant change in the way elections are held, in the culture of holding elections. We welcome the fact that the elections have been commended throughout the world as transparent, democratic, and competitive. This achievement is very important to us. It is only natural that we introduced a new competitive platform to our citizens, with Freedom, Rapid Development and Prosperity as our slogan, which perfectly demonstrates the main direction taken by us. We have reclaimed what matters most, our freedom in the broadest sense of this word, that is, human rights. Our progress in this direction has been recognized by more than one international institution. Accordingly, our efforts, since assuming power, have been focused on saving human beings. Since 2012, we have had concrete challenges, and because the country's development had yet to be on the right track, we started by taking good care of our people. Today, in 2016, we inaugurate a new stage by introducing a concrete plan for rapid development designed to lead the country, our citizens and their families, to ultimate prosperity. This process started in 2016, but the main portion of our platform will be launched in 2017. It is an immense responsibility to choose a difficult yet the only right path to ensure rapid development. We have presented concrete vision for every direction under our four-point agenda.
The implementation of our education reform will put an end to the "production" of unemployed citizens in the country, ushering in instead work-based learning, which involves overhauling the system of vocational education through public-private partnership. This means that schools and employers will jointly carry out educational programs in order to prepare qualified human resources.
As for higher education, this system will focus on the needs and requirements of economy to minimize the numbers of unemployed university graduates. Of course, special attention will be paid to fundamental disciplines and natural science and the development of sciences in these fields.
In 2016, the revolutionary construction project of the Kutaisi Campus was launched, which will enable us to turn Georgia into a regional hub of modern technological education.
2016 marks the starting point of technological development in general. Besides Kutaisi, the construction of a technological center in Tbilisi was launched, technological parks were established in Tbilisi and Zugdidi, as well as fab labs, and innovative and hi tech startups were financed, and these projects will surely continue. In addition, we launched a universal internet supply project to enable our citizens throughout the country to enjoy hi-speed access to the internet.
The Joint Operations Command Center was established at the Ministry of Interior to enable us to use modern technology and ensure high standards of public safety in the country.
We have spared no effort to develop a precise vision and concept of the country's spatial planning, the most far-reaching component of the four-point agenda. Practically, it equals drawing anew our country's geographic, geopolitical, and geostrategic planning, which offers brand new possibilities for its positioning both abroad, in the region and the world, and at home, for our citizens. Yes, once again, this planning focuses on contemporary requirements and the country's rapid development. Every key service must be available in every corner of the country. Hi-speed internet connection will help deliver modern educational technology anywhere in the country, including schools in our mountainous areas. It is a project of vital importance that will mark the beginning of a new stage in the country's development.
Under our spatial reform, plans for regulating urban and rural development have been prepared to ensure against spontaneous development. Thanks to spatial planning, Georgia will become a year-round tourist destination.
The construction of new airports is in full swing. In a matter of few days, we will open the Ambrolauri Aerodrome which we started to build in September 2016. We give new meaning to the traditional resorts of Bakuriani and Gudauri, installing new ski lifts, ski runs, water supply systems, and attractions, which create many new workplaces in these destinations and offering employment to people from miles around. This means new incomes in the country and its promotion, which is important in itself not only in terms of attracting visitors but also for landing Georgian products in international markets.
We are also developing new resorts, such as the important Tetnuldi, Goderdzi, and other destinations. We are implementing these projects jointly with private sector actors, and we believe it to be very important for forging Georgia's new tourist image.
In 2017, the Agara-Zemo Osiauri, Zestaponi-Kutaisi, and Kobuleti Bypass Roads will be completed.
In 2017, work will start on the main road sections of Zemo Osiauri-Chumateleti, Samtredia-Grigoleti, Batumi Bypass, Khulo-Zarzma, Baghdati-Abastumani, Upper Imereti-Racha, Tusheti and Khevsureti Roads, and the Devdoraki Tunnel.
As for economic reform, which focuses on maximally encouraging and empowering the private sector, important tax incentives have been introduced, such as tax exemption for reinvested profits. This will allow the business sector to keep almost 600,000 GEL and use this money for expansion and creation of new jobs. We have already made relevant amendments to the tax code. The tax environment will become even more business-friendly maximally to encourage investments.
We will continue and expand the programs that support entrepreneurs, startups, and innovative business projects through the Produce in Georgia program, agricultural loans, agricultural assistance programs, startup financing, and others.
We already have concrete results. The state issued 5,289,000 GEL to subsidize 10 companies under the Produce in Georgia program, who were selected using a statistical probability selection method. As a result of two years of their work, they have paid 5,090,000 GEL in taxes, and 313 new jobs were created, which means that after the subsidy is terminated, these taxes will be paid fully toward the country's budget, and those employed will keep their jobs. This is a very positive impact effected by this program.
In all, 235 projects have been implemented under the Produce in Georgia program, bringing in 522,000,000 GEL in investments and creating 11,000 new workplaces under this program alone.
In 2016, we also launched the Startup Georgia project that has already financed over 60 startup businesses. Yesterday, we awarded an aggregate of 900,000 GEL to nine such enterprises. This is a subsector of our economy with the greatest potential for growth, and efforts in this direction continue. It is about transformation, but the greatest impact of these programs is that they inspire young people to consider becoming employers.
154 new agricultural enterprises were established and 700 expanded, of which 21 new enterprises opened in 2016.
All these state projects are designed to encourage entrepreneurial spirit in our citizens. It is important in terms of worldview transformation in younger generations for them to become entrepreneurs and create new jobs in the country.
2016 has proved a success in terms of implementing projects in the energy sector as well. The Light in Every Village project has been completed, providing electric light for 30 villages previously without power supply. The first wind farm in Georgia was also built, and four new hydropower plants were launched.
Under Vintage 2016, over 115 tons of grapes were harvested, which is especially commendable since our citizens received over 100,000,000 GEL in revenues in the Regions of Kakheti and Racha-Lechkhumi alone. Equally noteworthy is the growing wine export to EU member states, the US, and other traditional markets. According to statistics for the past eleven months, almost 46 bottles of wine have been exported from Georgia to 53 countries, which marks a 40% increase year-over-year. In monetary terms, it equals about 105,000,000 USD, or 17% more than in the same period last year. The difference in percentage growth is due to the dropping prices in the export market. Naturally, as soon as the export markets are rehabilitated, the relevant data for growth will align with percentage.
We have developed governance reform, and the unified Business House project has been developed with the participation of international experts. Construction work will start in 2017, and this facility will provide public services for businesses under one roof. In addition, online services will be improved and upgraded, with the addition of new long-distance services and optimized public service fees.
This reform, along with similar platforms, will encourage the public's engagement in governance and decision-making. Therefore, our citizens will have enhanced opportunity to control authorities and decisions made in the process of governance.
As for international relations, yesterday Foreign Minister Mikheil Janelidze discussed in detail our foreign policy priorities and our important steps and achievements toward the implementation of this policy.
I will briefly touch on some important aspects:
We can state assuredly that we fully share the responsibility of addressing the challenges facing the civilized world today, and we are making a tremendous contribution to military operations seeking to ensure global security and stability.
In 2016, the EU Association Agreement came into full force. We have carried out important work toward visa liberalization. As you know, all three decision-making EU institutions support visa liberalization for Georgia, and we are anticipating the completion of all necessary procedures, so that Georgian citizens may enjoy visa-free travel in the EU. Only technical procedures are left, while the essential decisions has already been made. For the first time in its history, Georgia was included in an EU policy document, according to which our country's success in the context of building a peaceful and stable democracy motivates transformation processes throughout the Eastern neighborhood. In 2016, the NATO-Georgia Substantial Package was strengthened and new initiatives were adopted.
Notably, in 2016 Georgia was invited to join strategic dialogue on Black Sea security.
We are actively cooperating and strengthening ties with our allies, including our main strategic partner, the United States of America. I would like to inform you that the first contact has already been established with the new US Administration. In the future, we expect our cooperation to expand further in line with our Strategic Partnership Charter. Importantly, in 2016 the Memorandum on Defense and Security Cooperation with the United States of America was signed in 2016. Of course, we will double our efforts to implement this memorandum.
Concerning refuges, it is very important that, as of today, we have provided almost 13,700 refugee families and over 300 economic migrants with residential spaces and houses to own. This process will continue in 2017, and almost 1,700 refugee families, as well as economic migrants, will receive residential spaces to own.
2016 has been equally successful for Georgian sports. In different international tournaments, our athletes have won 844 medals, including seven Olympic medals. In addition, we launched important sports infrastructural projects, and in 2017 Tbilisi and the regions will have 20 sports arenas, ten rugby and ten football fields. Multifunctional sports arenas will open in Telavi, Gori, and Batumi. Next year, our country will host several world-level sports events, including the World Rugby U20 and the UEFA U19 Championships in the summer of 2017, as well as the 2017 Chess World Cup.
2016 was a historic year in that UNESCO recognized Georgia's cultural heritage and vowed to protect it. In July, Mtskheta's historic sites were removed by the UNESCO World Heritage Committee from the list of monuments in danger and returned it to its main list. On November 30, UNESCO recognized the Georgian alphabet as a monument of the world's intangible cultural heritage. In December 2016, in line with the Hague Convention, UNESCO granted Mtskheta's historic monuments enhanced protection. In 2016, Check in Georgia, a far-reaching cultural project, was implemented, mapping Georgia as an important venue for international cultural events.
I absolutely must mention a field we prioritized since coming into power, which involves cherishing and protecting our citizens' lives and health. In 2016 alone, over 1,200,000 people benefited from the universal healthcare state program. This year, over 13,000 completed treatment under the hepatitis C elimination program, and their recovery rate is 90%.
Of course, we will continue these programs in 2017. Importantly, however, healthcare will become more needs-oriented, also focusing on quality. This is why a new set of reforms has been developed, which, based on studying the current situation in our healthcare facilities, will ensure enhanced quality and accessible healthcare for our citizens. Equally important is that primary healthcare reform will start in 2017, seeking to empower the institution of family doctors and to promote early detection and prevention, and an e-prescription system will be launched as well.
Of course, when listing these achievements, we should also point out that our country still faces significant challenges, and we are on the right track to tackle them. Today life is not easy for our citizens, and we identify with them, but we also embrace necessary reforms that must be implemented. This is the right way, which fills us with optimism, and I repeatedly express this optimism. This optimism is very real, tangible, and it translates into the energy that every Georgian citizen needs today. I reiterate that 2017 will be a great year, and together we will make it great!
Prime Minister's Press Office