Economy Annex slide image

Economy Annex

Regional Hub Baku Tbilisi Ceyhan (BTC) oil export pipeline - operated by BP from Caspian Sea to Europe via the Turkish coast. 1.0 million bbl/day or circa 1.2% of the current World oil consumption (9% of the consumption by EU, 80% of aggregate consumption by Turkey, Romania, Bulgaria and Poland) is transported through BTC or railway; c. $4bln invested by BP Consortium; Shah-Deniz (BTE) gas pipeline (South Caucasus pipeline) - 6.6 bcm/year operated by BP to transport gas from Caspian Sea to Turkey; Iran-Azerbaijan-Georgia (IAG) gas pipeline - 3.5 bcm/year Western Route Pipeline (Baku Supsa) oil export pipeline 5.75 mt/year operated by BP from Caspian Sea to European Markets through the Black Sea; Russia-Georgia-Armenia gas pipeline - 5.8 bcm/year - Free industrial zones created around Tbilisi, Poti (port), Kutaisi (second largest city). Tax rates in FIZ are largely 0% Two sea ports. Poti Sea Port privatized in December 2008 by Rakeen Group (UAE) to build infrastructure for operating Free Industrial Zone Transportation Communication and Trade cumulative CAGR 2004-2009 of 9.4% Upcoming Projects NABUCCO Project is to finish by 2015, and White Stream project is flagged as "Priority Project" by EC Baku-Akhalkalaki-Kars railway line - sanctioned in 2007 building railway to link Asia and Europe LNG - Azerbaijan-Georgia-Romania-Hungary Black Sea liquefied natural gas export route will supply c.6- to 8-billion cubic meters of liquefied Azerbaijani natural gas per year to Europe via Black Sea tankers White Stream (proposed Nabucco gas pipeline to Central Europe (planned) Russia Georgia Supsa Baku-Supsa oil pipeline Caspian Sea Armenia Baku-Tbilisi-Ceyhan oil pipeline Erzurum Baku-Tbilisi-Erzurum gas pipeline Turkey Cehyan Iraq Syria GDP Breakdown Health, social and community work, 10.1% Education, 3.9% Public administration, 13.3% Real estate, renting and business activities, 6.9% Hotels and restaurants, 1.8% Financial intermediation, 2.6% Kazakhstan Trans-Casplan gas pipeline (proposed) Azerbaijan Sangachal Türkmenbasy Terminal Iran Agriculture, hunting and forestry; fishing, 7.5% Construction, 5.6% Turkmenistan Trade (Retail & Wholesale), 11.7% Transport & Communication, 10.8% Mining and quarrying, Manufacturing, 7.79,8% Utilities & household processing, 4.6% Lobko BANK OF GEORGIA www.bog.ge/ir 22.5% October 2010 Page 9
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