Azernews.Az

By Sabina Idayatova

Georgia is closely working with new potential investors in its energy sector, providing them with comprehensive information concerning new possible projects and trying to create the most competitive and fair business environment, according to Georgian Minister of Energy and Natural Resources Kakha Kaladze.

"We are waiting for new major investments and projects," Kaladze said in an interview with Azerbaijan's Trend news agency. "Active work with donor organizations is underway. New interesting projects in terms of infrastructure development are being planned."

Kaladze also noted the significance of legislative changes, saying that Georgia is working with its partners in this regard.

According to the minister, cooperation between Georgia and the EU on a free trade agreement whereby sectoral energy holds a significant position and plays a major role is in progress.

"Factors contributing to the development of the energy sector that may create an attractive investment climate are friendly business environment, a liberal taxation system, administration, a flexible labor code, a regulated energy sector, diversified and growing export markets, including the markets of the EU," Kaladze said.

Kaladze stated that the main goal is to have a developed and diversified energy sector, the growing export potential, more job opportunities and improved social conditions in the regions. "We intend to create a modern and reliable infrastructure with 100 percent energy independence," he said.

Touching on the country's electricity tariff policy, Kaladze said Georgia has introduced cuts in fees.

"We have achieved tariff reductions in a very short period of time - two months. The reduction in electricity fees was achieved in terms of distribution, that is, by reducing the profits of companies that are currently players in the Georgian energy market," Kaladze said. According to him, the tariff reduction has allowed to achieve considerable savings for the population.

Kaladze also said work is underway on gas prices, which will be completed in February.

Furthermore, Kaladze spoke about construction of hydro power plants, saying that as Georgia has no oil and gas supply, water resources are the only means that allows it to be energy-independent.

"We have already launched active work with existing and future investors in this field. We started the study of the government's existing memoranda and a number of problems accumulated over the past years," he said.

Kaladze said Georgia will not completely abandon the construction of large hydro power plants; the country has only three or four such projects.

"Our goal is to achieve maximum transparency. The investors will provide environmental and feasibility conclusions on each project, which will be discussed in the Ministry of Energy and the Ministry of Environmental Protection."

Touching upon Azerbaijani-Georgian relations, Kaladze said that working out and formalizing an agreement on bilateral electricity transit plays an important role in the relations between the two countries. He added, however, that at this point, "basic issues of the commercial importance of the project have not been agreed upon yet".

Kaladze noted that these relations create opportunities for Georgia to hold a leading position on the regional scale and play a significant role in energy development of the region.

Speaking about the reorganization of the ministry after his appointment to the post, Kaladze said that at the first stage, it was important to get acquainted with the structure of the ministry, staff the governing team and effectively manage the current processes.

"As a minister, people's professionalism and commitment to their work is important for me, rather than their political credo," he added.