Infrastructure

Home page

Infrastructure

Nikoloz Qoqitidze: â€œPoti FIZ is suitable for capitalistsâ€ - INTERVIEW

Nikoloz Qoqitidze: â€œPoti FIZ is suitable for capitalistsâ€ - <font color=red>INTERVIEW</font>

17 March 2010 15:17 (UTC +04:00)

Please, inform about the creation of Free Industrial Zone in Poti â€¦

- The first Free Industrial Zone (FIZ) has been established in the Caucasus region in the city of Poti, Georgia (RAKIA GEORGIA FIZ LLC) by the United Arab Emirates RAK Investment Authority (RAKIA).
The Poti FIZ with the investment of more than 200 million USD (including the investments in the Poti Sea Port) covers territory of 300 hectares and is situated on historic Silk Road between East & West. The Poti FIZ will offer to the investors world class infrastructure, modern warehousing complexes, container storage areas, Business Centers and other facilities for doing successful business.

What spheres do operate in Poti FIZ?

- Manufacturers, trade companies, services&consulting groups, logistics companies in mainly all business sectors, High Tech Industry, Agri Business companies and other Enterprises are invited to start-up their activities in Poti FIZ. Having the role of the logistical and manufacturing hub, Poti FIZ is very cost effective option for the companies who want to expand business, open perspective markets of the Caucasus and Central Asia and have easy access to the EU countries. Poti FIZ would like to attract the companies that are interested not only in doing business in Georgia, but conduct international trade and manufacturing, concentrate on exports. This fact is especially getting very topical during the current financial crisis, when the companies are seeking for diversification of their selling markets, on the one hand, and seek the ways to the cost effective supply chain restructuring, on the other.

RAKIA GEORGIA FIZ LLC also expects enterprises from the FMCG (Fast Moving Consumer Goods) & FMCD (Fast Moving Consumer Durables) industries, IT (Information Technology), BPO (Business Process Outsourcing) Services to be represented at the Free Zone. Due to low cost of energy power intensive industries like steel manufacturers have also shown keen interest to be in this Free-zone.

What concessions does FIZ offer to companies?

- We offer all the benefits available in other free zones of the region and some of the additional benefits specific to Poti Free Zone:
- Low Cost of leased land, 100% foreign ownership in free zone, 100% capital and profit repatriation, Zero tax on profits in the Free-zone for foreign companies, 100% duty free Import and export of raw materials and finished goods, Right to source raw material from anywhere in the world, Availability of power and water with one stop window for all your requirements, Power supply at competitive rates (due to hydro-electric power generation), European quality lifestyle with beaches, mountains, resorts, shopping malls, multiplexes, golf courses, international schools, colleges (incl. medical and engineering) and hospitals, Strategic location right on the middle of ancient Silk Road, Being adjacent to the largest port of the Black Sea â€“ Poti Sea Port.

When will the first phase of FIZ finish?

- The design criteria for each segment of development of infrastructure will be as per the international specifications to ensure that the FIZ facilities are comparable to the best in the world. The first steps of development, such as soil-testing, topology, site cleaning, fencing (approximately 11 KL in length) has already finished. Road construction, main gate and customs building, main road, electricity and gas are under construction and will be finished by April â€“ May. The first phase of the Free Zone is expected to be completed by the end of 2010, though the marketing of the facilities has already started. The second phase of the project will include development of warehousing complex, container storage areas, Distri - Park, Offshore Financial Facilities, Business Centers, etc.

The project has full and complete support of the Government of Georgia and therefore a very investor friendly Free-zone regulation is in place. The government is open to suggestions from the investors to amend the laws for the benefit of all stakeholders.

How do evaluate leasing rates in the Poti FIZ?

- For the initial stage leasing rates in the Poti F.I.Z are very competitive and attractive being one of the lowest in the Black Sea region. Lease cost for 1sq.m starts from USD 6 per year for manufacturing companies. Hence the early investors stand to gain a lot on long term basis. The rental is fixed for first ten years. The price for different type of licenses (manufacturing, trade, commercial, logistics and service/consulting) starts from only USD 2500 per year â€“ the lowest in the EU.

What is Poti Free Industrial Zone (FIZ) attractive with?

- Strategic Location, first Free Industrial Zone in the Caucasus Region, located on the gateway of ancient Silk Road connecting west and east and vice versa, wide access to the EU&CIS with over 1 billion population market, strategic oil and gas corridor.