The Georgian Company Indico Builds Better Roads

The Georgian Company Indico Builds Better Roads

On June 20th 2018, the EU ambassador to Georgia visited the road construction company “Indico” funded under the EU4Business-EBRD Credit Line. LTD Indico was founded in 1996 in western Georgia, in the small city of Senaki, and is currently one of the 37,000 enterprises in Georgia that have benefited from the European Union’s EU4Business initiative. Just a little more than two years ago, LTD Indico took the loan under the EU4Business-EBRD Credit Line and purchased sand and gravel processing machines, two excavators, four trucks and a portable compressor. Through these investments, the company has been able to boost its productivity replacing old technology with environmentally friendly updates and enhancing quality, as well as improving standards of health and safety, in line with recommendations provided by the project consultants.  Today, LTD Indico is a leading road construction company in Georgia, fully compliant with the EU’s road construction directives. As a beneficiary of the EU4Business-EBRD Credit Line, Indico received free-of-charge technical assistance and, after successful verification of the project, received 15% of the loan amount as a grant cashback funded by the EU4Business initiative.

The EU4Business-EBRD Credit Line is part of the Deep and Comprehensive Free Trade Agreement, which was signed between Georgia and European Union in 2014. The agreement includes the establishment of a free trade area between Georgia and EU, the world’s largest trading block, offering Georgian firms stable and preferential access to a market of 500 million consumers. In this context, the EBRD and EU have joined forces to help small and medium-sized enterprises make the most of their European Union ambitions. The joined EU4Business-EBRD Credit Line is a best in class financial support programme designed especially for Georgian SMEs, offering grant support and free of charge technical support to its beneficiaries.

LTD Indico, as one of the beneficiaries of the EU4Business-EBRD Credit Line, is an excellent example how small and medium-sized enterprises in Georgia can operate in compliance with the EU standards, create jobs and improve the quality of the product and increase their income.

“With modern equipment and European standards implemented, we hope to be tasked with the construction of highways and roads for better connectivity, and to play our modest part in boosting trade and prosperity for the good of our country,” concludes Ioseb Gadelia, the founder of the road construction company Indico.  

Hotel Tbilisi

Hotel Tbilisi

IBIS Hotel Tbilisi is located in the very heart of Tbilisi and was stylishly designed and built to satisfy the standards of those who look for the best. The comprehensive project included construction works and the installation of building technologies that meet the EU standards for energy efficiency in buildings. In addition investments were made into hotel equipment for guest rooms and kitchens, aligning these important hospitality areas with EU standards for health and safety as well as food safety. The project as a whole surpasses the part of the investment financed through the EU4Business-EBRD Credit Line. The investments financed through other means include furniture and decorations, which position the IBIS hotel amongst the top destinations in Tbilisi.

In the specification of building measures and technical equipment installed, the hotel’s management received free-of-charge technical advice from the team of international experts, who support the implementation of the EU4Business-EBRD Credit Line.

After successfully completing the project verification process the company received 15% of the loan amount as a cash-back grant, which is funded under the EU4Business initiative of the European Union.

With the investment, the company now meets a wide variety of European standards, including:

    • Directive 2014/35/EU relating to electrical equipment designed for use within certain voltage limits
    • EEIG-EU standards for Hotels
    • BS 7176 and BS 7177 standards
    • Directive on 2012/27/EU of the European Parliament and of the council on energy efficiency, amending Directives 2005/125/EC and 2010/30/EU and repealing Directives 2008/8/EC and 2006/32/EC
    • 2010/31/EU on the energy performance of buildings
    • Directive 2006/12/EC on waste
    • Directive 91/689/EEC on hazardous waste
    • Regulation (EC) No 1005/2009 of the European Parliament and of the Council of 16 September 2009 on substances that deplete the ozone layer
    • REGULATION (EC) No 178/2002 on laying down the general principles and requirements of food law, establishing the European Food Safety Authority and laying down procedures in matters of food
    • Directive 2012/27/EU on energy efficiency, amending Directives 2005/125/EC and 2010/30/EU and repealing Directives 2008/8/EC and 2006/32/EC;

Loan Amount

€ 3 million

Grant amount

€ 450,000

EU Directives met

EU standards for hotels, energy efficiency directive, hazardous waste, electrical equipment, food, etc

Invested in

Hotel building and technical equipment

Frozen Pastry Production

Frozen Pastry Production

Food Alliance LLC produces frozen bakery products and is located in Natakhatari village, Georgia. Currently the company offers a wide variety frozen pastry goods, which are sold throughout Georgia.

Frozen pastry-bakery products have an enormous market potential as they solve several very important problems for HoReCa and supermarket chains. To offer freshly baked pastries, these retailers have to produce these bakery goods on site. While onsite production has several advantages, it is also very expensive if done from scratch. A Frozen product makes it possible to have a wide variety in the assortment with much longer shelf life.

Food Alliance LLC understood and responded to this demand with the main goal producing and providing high-quality frozen pastry-bakery products for customers, using modern CE certified equipment and technologies in the production processes.

The investment was financed with a EU4Business-EBRD Credit Line loan. In addition to he loan the company received free-of-charge technical advice on the optimization of the investment from the team of international experts.

After the successful project verification LLC Food Alliance received 15% of the loan amount as a grant cashback, funded under the EU4Business initiative of the European Union.

With the investment, the company now meets a wide variety of European standards, including:

    • Directive 2014/35/EU on the harmonisation of the laws of the Member States relating to the making available on the market of electrical equipment designed for use within certain voltage limits Text with EEA relevance
    • Directive 2006/42/EC on machinery, and amending Directive 95/16/EC (recast) (Text with EEA relevance)Directive 2006/12/EC on waste and directive 91/689/EEC on hazardous waste
    • Directive 2014/68/EU on the harmonisation of the laws of the Member States relating to the making available on the market of pressure equipment Text with EEA relevance
    • Regulation (EU) 2016/425 on personal protective equipment and repealing Council Directive 89/686/EEC (Text with EEA relevance)
    • Regulation (EC) No 178/2002 laying down the general principles and requirements of food law, establishing the European Food Safety Authority and laying down procedures in matters of food safety
    • ISO 22000:2005 certification

Loan Amount

€ 306,429

Grant amount

€ 45,964

EU Directives met

Regulations on food safety

Invested in

Production building and processing machinery

Energy Savings and GHG reduction

330.57 MWh/year

Kvareli Lake Resort

Kvareli Lake Resort

The LTD Kvareli Lake Resort (hotel and restaurant), which is owned by the m-Group, spreads over 300 hectares of beautiful natural landscape in the heart of Kakheti, one of the most beautiful regions of Georgia, East of the small city of Kvareli, beneath the southern slope of Great Caucasus mountains. The m-Group was established in 2005 and currently manages 6 hotel and restaurant objects in Tbilisi and Kvareli, each with a unique concept, targeting various price segments. The m-Group is the leading brand in Georgian HoReCa sector and was the first in former CIS countries to obtain ISO9001:2000 and HACCP certification, with the clear mission of introducing Western standards, ensuring purpose orientation, social responsibility and providing customers with innovations.

The investment project was designed to bring Kvareli Lake Resort into full compliance with Georgian regulation and with applicable EU Directives. The project includes the refurbishment of the buildings and interior to a high standard, whilst minimizing energy consumption, optimizing fire safety and health and safety.

After the successful project verification LTD Kvareli Lake Resort received 15% of the loan amount as a grant cashback, funded under the EU4Business initiative of the European Union.

With the investment, the company now meets a wide variety of European standards, including:

    • EU Directive 2010/31/EU on the energy performance of buildings;
    • EU Directive 2009/125/EC establishing framework for the setting of eco-design requirements for energy-related products;
    • Directive 2010/30/EU on the indication by labelling and standard product information of the consumption of energy and other resources by energy-related products;
    • Regulation (EC) No 1005/2009 on substances that deplete the ozone layer;
    • Directive 2006/12/EC on waste;
    • Directive 2000/60/EC establishing a framework for Community action in the field of water policy.

Loan Amount

€ 1,670,712 (85% of the total investement)

Grant amount

€ 250,607

EU Directives met

Regulations on Building Energy Performance, eco-design, energy consumption, waste and water policy

Invested in

Comprehensive buildingrefurbishment, including energetic, security and safety aspects as well as interior equipment

Increase in competitiveness

The EBRD and the EU help boost competitiveness of bay leaf producer in Georgia

Humble beginnings

It all started with a humble idea and a little experience as a supplier of raw materials to one of the fruit and herbs producers in the Guria-Adjara regions of Georgia. When Giorgi Melua registered as an individual entrepreneur back in 2017, he never imagined that his business would grow to the scale his current company “Black Sea Laurus” now has. “The region of Guria-Adjara where “Black Sea Laurus” is operating, is full of bay leaves. Local farmers are producing the bay leaves and selling the harvest to the big producers. So, the idea of trying this myself was born” says Giorgi Melua, the founder of Black Sea Laurus.

Typical for the majority of start up and SME companies, finding funds was the main obstacle to business expansion and development. Since the eligible bank loan and his own finances were not enough to finance the business idea, Giorgi Melua applied for the “Young Entrepreneurs” programme funded under APMA and won the competition. With the combined resources of the bank loan, his own finances and the support provided by APMA, Giorgi Melua was able to build a bay leaf production factory. In the first year the factory only produced 80MT of the leaves, but production almost tripled in the second year.

Bay leaves are rich sources of vitamin A, vitamin C, iron, potassium, calcium and magnesium. They also contain enzymes that help breakdown proteins, digest food faster and calm the indigestion – it is no wonder the demand for highest quality bay leaves produced in Georgia skyrocketed. In order to satisfy the increasing demand for the product and to meet the export requirements, Giorgi Melua was once again faced the need to expand the business and find the funds for this expansion. For the new expansion a new business idea created where production starts with growers who share the belief in sustainable agriculture and social responsibility. “Only by combining these two principles we would be able to obtain consistently high quality raw materials suitable for export and, at the same time, create safe and prosperous conditions for our community.” Says Giorgi Melua. This time the funds for the project were sourced through the EU4Business-EBRD Credit Line.

Discovering a window of opportunity

The EU4Business-EBRD Credit line the most advantageous SME financing programme available on the Georgian market. Eligible SMEs can apply for loan funding via partner banks. In addition to the loan, SMEs receive free-of-charge technical assistance as well as a EU-funded grant of up to 15% of the loan amount, which is paid after successfully completing the project verification process.

When looking for a loan to finances the business expansion, one of the partner banks offered Giorgi Melua the EU4Business-EBRD Credit Line. “The first year of operation showed us that production capacity could not satisfy the growing demand – we needed a larger production space and more modern production equipment. The EU4Business-EBRD Credit Line was just right for us. With the free-of-charge technical support we managed to get advice on the HACCP practises, compliance with EU practices and best-in-class equipment available for bay leaf production. The 15% cash-back grant gave us the opportunity to reinvest this sum into further expansion.” Says Giorgi Melua.

After the completion of the investment project, “Black Sea Laurus” has a world-class production space, employing 15 highly skilled permanent workers and 130 seasonal workers. The equipment upgrade, which has brought the production facility into full compliance with the relevant EU standards, increased the production capacity to at least 400MT superior quality dried leaves.

Currently, bay leaves produced by “Black Sea Laurus” are recognized in many countries for their consistent quality, remarkable flavour and intense aroma. Highly sought after as an essential ingredient in a wide variety of products, they perform equally well in processed foods, medical supplements, cosmetics and aromatherapy supplies. “Grown in plantations along the environmentally pristine Black Sea coast of western Georgia, our bay leaves are 100% natural and completely free of chemicals and additives. They are carefully collected, sorted, and packed by expertly trained teams of farmers, agricultural specialists and technicians.” says Giorgi Melua, proudly.