RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/GEO/20
5 March 1999
(99-0862)
Working Party on the Accession of Georgia Original:  English
ACCESSION OF GEORGIA
Information on Privatisation in Georgia
The Permanent Mission of Georgia has submitted the following information concerning
privatisation in Georgia, with the request that it be circulated to members of the Working Party.
_______________
1. The free transfer of enterprises to private persons or legal entities did not take place in
Georgia.  Although, the shares of each enterprise were given free to the employees, but in total no
more than 3 per cent of the issued share capital.  At the same time, part of the State property to beprivatised was distributed to the population of Georgia by means of 4,264,541 privatisation cards
(vouchers) having the nominal value of US Dollars 30.
2. Direct selling was carried out only on the basis of Presidential Decrees.3. The liquidation of State property was carried out in that case, when the enterprise was not
privatised in spite of the respective announcements.  The organisational-legal form of the enterprisewas abolished and only the premises and fixed assets (not the enterprise itself) were put for selling.
The GDP in market prices was Georgian Lari 6.8 billion in Georgia in 1998.  According to
the State Department of Statistics analysis called "Social-Economic Situation in Georgia in 1998", and
the data of the Georgian Investment Centre, up to  50 per cent of GDP was produced by the private
sector.  In the first half of 1998 the sectoral distribution of GDP was the following:
Industry – 11 per cent;  agriculture – 25 per cent;  trade – 23 per cent;  transport – 8 per cent;
construction – 4 per cent;  telecommunications – 1 per cent;  other branches of material production –
 1 per cent;  service – 18 per cent and other branches – 9 per cent.
(At the present stage, the revision of the main aggregates of the national accounts system is
proceeding in the State Department of the Statistics together with local specialists and experts of the
international organisations.  This is being implemented on the basis of the data base, received recently
from the new sources of respective information.  The first, mainly corrected evaluations of therevision, amongst them volume of the GDP in 1998, would be precised a bit later.WT/ACC/GEO/20
Page 2
Table 1(a):  Information about the process of privatisation of "small" enterprises in Georgia
Names of branches Number of
enterprises
approved for
privatisation since
1993Number of privatised
enterprises, as of
31 December 1998%
Totally in Georgia : 12,088 12,860 106.39
  Amongst them:
1 Industry 345 254 73.62
2 Energy 33 33 100.00
3 Bread products 140 99 70.71
4 Agriculture and food 584 478 81.85
5 Construction 224 281 125.45
6 Trade 4,532 4,725 104.26
7 Public service 4,970 5,594 112.56
8 Oil products 166 166 100.00
9 Health care 747 552 73.90
10 Social sphere 246 560 227.64
11 Transport 101 118 116.83
Note:  The number of privatised enterprises exceeds the number of enterprises approved for
privatisation in items 2, 5, 6, 7, 10 and 11 (and respectively, in the total data).  That was caused by the
reorganisation of certain enterprises approved for privatisation, as a result of which those enterprises
were sold as several separate entities.
Table 1(b):  Information about the process of privatisation
of "large" and "medium" enterprises in Georgia
Names of branches Number of
enterprises approved
in the list of
enterprises to be
commercialised
(established as JSCs)
since 1993Number of
commercialised
(established as JSCs)
enterprises, as of
31 December 1998%
Totally in Georgia : 1,300 1,144 88.00
  Amongst them :
1 Industry 280 243 86.79
2 Bread products 61 24 39.34
3 Agriculture and food 383 326 85.12
4 Architecture and construction 219 212 96.80
5 Trade and material resources 81 70 86.42
6 Oil products 49 26 53.06WT/ACC/GEO/20
Page 3
Names of branches Number of
enterprises approved
in the list of
enterprises to be
commercialised
(established as JSCs)
since 1993Number of
commercialised
(established as JSCs)
enterprises, as of
31 December 1998%
7 Transport 118 110 93.22
8 Social sphere 49 42 85.71
9 Energy 60 91 151.67
Note:  The number of privatised enterprises exceeds the number of enterprises approved for
privatisation in item 9.  That was caused by the reorganisation of certain enterprises approved forprivatisation, as a result of which those enterprises were established as separate joint-stock companies
(JSCs).
Table 1:  Information about the process of State property privatisation in Georgia
Names of branches Number of
enterprises approved
for privatisation since
1993Number of privatised
enterprises, as of
31 December 1998%
Totally in Georgia : 13,388 14,004 104.60
  Amongst them :
1 Industry 625 497 79.52
2 Energy 93 124 133.33
3 Bread products 201 123 61.19
4 Agriculture and food 967 804 83.14
5 Construction 443 493 111.29
6 Trade 4,613 4,795 103.95
7 Public service 4,970 5,594 112.56
8 Oil products 215 192 89.30
9 Health care 747 552 73.90
10 Social sphere 295 602 204.07
11 Transport 219 228 104.11
Note:  The number of privatised enterprises exceeds the number of enterprises approved for
privatisation in items 2, 5, 6, 7, 10 and 11 (and respectively, in the total data).  That was caused by the
reorganisation of certain enterprises approved for privatisation, as a result of which those enterprises
were sold as several separate entities.WT/ACC/GEO/20
Page 4
Table 2:  Information  about the privatisation process in Georgia during 1993-1998
(by branches and forms of privatisation)
(As of 31 December 1999)
Branches Forms of privatisation Number of
privatised objects
12 3 4
1 Industry Competition 29
Auction 51
Direct selling to the private persons or legalentities0
Direct selling to the employees 41
Lease back 42
Liquidation 91
Commercialisation (establishment of JSCs) 243
2 Energy Competition 11
Auction 4
Direct selling to the private persons or legal
entities0
Direct selling to the employees 12
Lease back 4
Liquidation 2
Commercialisation (establishment of JSCs) 91
3 Agriculture and food Competition 76
Auction 158
Direct selling to the private persons or legal
entities0
Direct selling to the employees 52
Lease back 103
Liquidation 89
Commercialisation (establishment of JSCs) 326
4 Construction Competition 127
Auction 88
Direct selling to the private persons or legal
entities0
Direct selling to the employees 19
Lease back 19
Liquidation 28
Commercialisation (establishment of JSCs) 212
5 Trade Competition 1,393
Auction 1,232
Direct selling to the private persons or legal
entities0
Direct selling to the employees 1,030
Lease back 697WT/ACC/GEO/20
Page 5
Branches Forms of privatisation Number of
privatised objects
12 3 4
Liquidation 373
Commercialisation (establishment of JSCs) 70
6 Consumer Service Competition 1,458
Auction 1,778
Direct selling to the private persons or legal
entities0
Direct selling to the employees 631
Lease back 742
Liquidation 985
Commercialisation (establishment of JSCs) 0
7 Oil products' delivering
and selling enterprisesCompetition 48
Auction 110
Direct selling to the private persons or legal
entities0
Direct selling to the employees 7
Lease back 1
Liquidation 0
Commercialisation (establishment of JSCs) 26
8 Health care Competition 53
Auction 50
Direct selling to the private persons or legal
entities0
Direct selling to the employees 415
Lease back 9
Liquidation 25
Commercialisation (establishment of JSCs) 0
9 Transport Competition 23
Auction 26
Direct selling to the private persons or legal
entities0
Direct selling to the employees 31
Lease back 26
Liquidation 12
Commercialisation (establishment of JSCs) 110
10 Social sphere Competition 144
Auction 165
Direct selling to the private persons or legal
entities7
Direct selling to the employees 168
Lease back 45WT/ACC/GEO/20
Page 6
Branches Forms of privatisation Number of
privatised objects
12 3 4
Liquidation 31
Commercialisation (establishment of JSCs) 42
11 Bread Industry Competition 0
Auction 5
Direct selling to the private persons or legal
entities2
Direct selling to the employees 52
Lease back 40
Liquidation 0
Commercialisation (establishment of JSCs) 24
TOTAL 14,004
__________