According to a statement of the Prime Minister of Georgia, Irakli Gharibashvili: "Sixty-four entrepreneurs have already benefitted from the Product of Georgia programme with the total expected amount of investment at USD 112 million. The enterprises will employ approximately 4,500 persons by the end of this year."

FactCheck

took interest in the Prime Minister’s statement and verified its accuracy.

FactCheck has already written

about the Product of Georgia programme. The programme is being carried out jointly by the Ministry of Economy and Sustainable Development of Georgia and the Ministry of Agriculture of Georgia. It aims at supporting industries working in production. Agriculture is also one of its priorities. The Product of Georgia programme budget is GEL 46 million. Of this amount, GEL 30 million will be spent on the production and processing of agricultural goods whilst GEL 16 million will be spent on the production of industrial goods. The programme includes three components:

• Access to funds;
• Access to infrastructure (real estate);
• Consultation service.

The access to funds component comprises loan co-financing (in the amount of 10% for the first two years). If a borrower takes a loan for work in industry, he pays 1%-3% per annum whilst 10% is covered by the state. If a borrower takes a loan for work in agriculture, he pays 1%-2% per annum with 10% also covered by the state. The programme’s access to infrastructure component provides access to real estate with eligible entrepreneurs given state-owned property for the symbolic price of GEL 1.

According to the Product of Georgia programme’s latest data, 65

beneficiaries are already using the access to funds and access to infrastructure components with their respective projects being carried out. The total expected amount of investment in these projects is USD 116.5 million. The access to funds component is being used by 28 beneficiaries with their combined loans amounting to USD 34,213,554. Additionally, 34 beneficiaries are using the access to infrastructure component whilst nine beneficiaries are using the assistance for agriculture with their combined loans totalling USD 14.67 million. Six beneficiaries are using both the access to funds and access to infrastructure components.

FactCheck sent an official letter to request the contact information for the Product of Georgia programme’s beneficiaries. Unfortunately, we were only given the addresses of the enterprises. This notwithstanding, FactCheck

did manage to contact several beneficiaries and interviewed them about their projects.

Denola LTD received a loan in the amount of GEL 2 million from the Bank of Georgia. As the company’s Director, Kakha Mosidze, told us, Denola LTD plans to produce foam rubber (sponges to be used to make mattresses, household cleaning items, etc.). The company started to build the enterprise on land under its ownership and purchased the necessary tools and equipment it required. The construction of the enterprise will be completed in July 2015 and will employ as many as 50 individuals.

Made in Georgia #1 LTD received a loan in the amount of USD 1.1 million from Cartu Bank. It produces packaging materials and labels for wine bottles. According to the enterprise’s Director, Nikoloz Deisadze, Made in Georgia #1 LTD has already been open for three months and has 30 individuals working there.

Polymer Plast LTD received a loan in the amount of USD 520,000 from Basis Bank. The company plans to produce plastic pipes. According to the company’s owner, Zurab Lagvilava, 15-20 individuals will be employed there.

Sezan LTD received a loan in the amount of USD 1.3 million from TBC Bank. It plans to use the loan to produce packaging materials. The necessary construction work has already been started and the enterprise will be opened by June 2015. It will create 15 jobs.

Georgian Laurel LTD used the access to infrastructure component in the framework of the Product of Georgia programme and received a land plot of 12.352 square kilometres in the village of Bzvani in the district of Vani for the symbolic price of GEL 1. According to the company’s representative, Mamuka Altaidze, plans are to build a laurel processing enterprise. At the present moment, preparatory work has already started and the enterprise will be constructed by the end of the year. It will create 30 jobs.

Iceberg 2 LTD received an agriculture loan both in the framework of the Preferential Agrocredit project (USD 600,000) and the Product of Georgia programme (USD 1.5 million) from TBC Bank. According to the company’s Manager, Irakli Vekua, a fish processing factory (European anchovy) has been built and the required machinery has been purchased. The factory produces fish meal and fish oil (fish meal is used as animal feed and fish oil is used for pharmaceutical purposes). Overall, 30 workers are employed at the factory but this number increases seasonally.

Conclusion There are 65 beneficiaries already involved in the Product of Georgia programme. Of these, 28 beneficiaries are using the access to funds component and 34 beneficiaries are using the access to infrastructure component. Among the beneficiaries, nine agriculture projects have been funded with six beneficiaries using both the access to funds and access to infrastructure components of the programme. According to the information obtained from the Entrepreneurship Development Agency, the total expected amount of investment in these projects equals USD 116.5 million and approximately 4,325 individuals will be employed in the enterprises. FactCheck

interviewed several of the Product of Georgia programme beneficiaries. According to the information we obtained, a portion of the enterprises are already functional and others will be opened shortly.

FactCheck concludes that Irakli Gharibashvili’s statement is TRUE.