The sitting of the Sector Economy and Economic Policy Committee

11 Feb 2019
The sitting of the Sector Economy and Economic Policy Committee

The Committee discussed the draft organic law on Accumulative Pension introduced by Beka Natsvlishvili as the legislative initiative of the Faction “Georgian Dream – Social-Democrats”.

The pension reform has been implemented but it requires certain changes for finalization: “The pension system shall be established where not everyone takes care of them but the generations take care of each other. It is necessary to establish the pension system based on the solidarity of the generations which along with the individual accumulative pension system will create the dignified and fair, sustainable pension system. Institutionalization of the generation solidarity principle imposes obligation to the new generation to take care of the preceding one, even better unifies the society and makes it solidary”, - he noted.

He spoke about the benefits of the offered model which holds not only economic dimension but it is the step made to public order. The Bill failed to be approved by the Committee.

The Deputy Finance Minister, Giorgi Kakauridze introduced the document for ratification on Exemption Agreement of the Financial Agreement (Georgian Agricultural Production/Recycling/Realization Chain) between Georgia and European Investment Bank.

The Document was signed on December 9, 2016 and envisaged financing of the cycle of manufacture of agricultural production by NPLE “Agricultural Project Management Agency”. However, agriculture is considered a risky sphere and the loan was burdened with high interests by the commercial banks.

Thus, the Finance Ministry considered it inexpedient to finance the interest rate in foreign currency. Hence, the new agreement has been concluded on annulment of the loan without interests and on discussion of the new loan “enabling allocation of 100 ml EURO in agriculture currently for rehabilitation of melioration systems and construction of reservoirs. Thus, the new agreement envisages annulment of the loan agreement”.

He also introduced the Change N2 to the Loan Agreement (Adjara Solid Waste Project) between Georgia and EBRD, aiming at allocation of 15 ml EURO for solid waste management in Tbilisi. The loan is allocated for 15 years, 3 of which are preferential. As to the second Agreement, it changes the term of the loan to December 31, 2022. The initially designated territory for the landfill – Chakvi was replaced with the new territory which belated commencement of works.

The reporter also introduced 3 documents for ratification: Loan Agreement (Tbilisi Solid Waste Project) between Georgia and EBRD; Letter-Agreement of the Change N1 to the Loan Agreement (Ordinary Transactions)(Sustainable Urban Transport Investment Program – Project 5) between Georgia and ADB; and Letter-Agreement of the Change N5 to the Loan Agreement (Special Transactions)(Sustainable Urban Transport Investment Program – Project 5) between Georgia and ADB of August 5, 2010.

The documents are signed within one frame agreement signed in 2010 envisaging the sustainable urban transport development program, financing Tbilisi Subway Station University, Mestia highway, Tbilisi-Rustavi highway etc. “The change envisages consumption of the residual amount of project 1 for rehabilitation of Tbilisi Subway system – replacement of ventilation”.

Two agreements suspend coastal protection works in Anaklia. The Committee approved the documents.

The Deputy Economic Minister, Nino Enukidze introduced the Bill on Air Code with the III reading. The Committee approved the Bill and considered with the I reading the Bill on License and Permissions aiming at annulment of the formal procedures and protection of high state and public interests.

According to the current law, Tbilisi Transport Company is liable for license on underground use. Tbilisi Metro is the only subject for underground transportation of passengers and there is no need for TTC to receive similar license. The Committee approved the Bill.

Gallery

  • The sitting of the Sector Economy and Economic Policy Committee, February 11, 2019
  • The sitting of the Sector Economy and Economic Policy Committee, February 11, 2019
  • The sitting of the Sector Economy and Economic Policy Committee, February 11, 2019
  • The sitting of the Sector Economy and Economic Policy Committee, February 11, 2019
  • The sitting of the Sector Economy and Economic Policy Committee, February 11, 2019