Tbilisi, Georgia, July 11, 2008—IFC,
a member of the World Bank Group, has helped Georgia’s Ministries of Economic
Development and Environment and Natural Resources amend a regulation on
issuing a license for the extraction of useful subsoil. The new law was
adopted in June 2008.
“The government of Georgia has a good
record of cooperation with IFC experts, whose participation in amending
the regulation brought new, client-oriented elements to the table,” said
Zviad Cheishvili, former Deputy Minister of Economic Development of Georgia,
who was in charge of this reform.
This new regulation reduces the time
it takes to obtain a license, the number of applicant visits to the issuing
agency, and the number of documents for applicants to collect and submit
to the agency. Prior to the amendment, a license seeker was obliged to
visit the agency five times and submit five sets of documents, a process
that took several days, and often weeks to complete. The amendment also
specifies that only winning bidders are required to pay a fee for preparing
auction documents. This move encourages interested parties to participate
in the process at no cost, even if they are not shortlisted.
“With this new regulation in place,
license seekers like me have additional incentives to participate in tenders
on equal terms with others and the opportunity to explore the natural resources
that Georgia is so blessed with,” said Zurab Tevzadze, Head of Geological
Department of Burji, Ltd.
The new regulation serves as an important
step toward implementing a one-stop-shop principle and simplifying the
regulatory framework that will allow new companies to enter the market.
IFC, a member of the World Bank Group,
fosters sustainable economic growth in developing countries by financing
private sector investment, mobilizing private capital in local and international
financial markets, and providing advisory and risk mitigation services
to businesses and governments. IFC's vision is that people should have
the opportunity to escape poverty and improve their lives. In FY07, IFC
committed $8.2 billion and mobilized an additional $3.9 billion through
syndications and structured finance for 299 investments in 69 developing
countries. IFC also provided advisory services in 97 countries. For more
information, visit www.ifc.org.
Georgia became a shareholder and a member
of IFC in 1995. As of April 30, 2008, IFC has committed nearly $220 million
in 25 projects in the country's financial, power, oil and gas, and manufacturing
sectors. IFC also conducts advisory programs in Georgia to promote corporate
governance and improve the business enabling environment, with the support
of BP and its oil and gas partners and the Canadian government. The corporate
governance project helps companies and banks improve their governance practices,
which has helped bring millions in outside investment to Georgia. IFC's
business enabling environment project helps government agencies streamline
the regulatory framework for businesses. It also conducts a regular survey
of local entrepreneurs. This survey and the IFC and World Bank Doing
Business report help the government pinpoint priority areas for reform.
For more information about IFC’s partners,
The Canadian International Development