Power
Sector
Overvi
e
w
Georgia
December 2016
Power Sector Overview
Executive summary
The purpose of this research is to give the reader a general
understanding of the current market structure in the power sector of
Georgia, become more aware of the regulatory environment, get
introduced to the key players in generation, transmission and
distribution, understand the potential of the future development of the
Georgian power sector and introduce KPMG’s experience and
capabilities in the field
For over the past decade, the Government of Georgia has been actively
promoting the development of the power sector, with various incentives
and favorable terms offered to investors. As the power sector has been
one of the key strategic development areas for Georgia, the Ministry of
Energy, in cooperation with the Georgian National Energy and Water
Regulatory Commission (GNERC) has developed Georgia’s Energy
Strategy for 2016-2025, oriented mainly at liberalization of the market,
switching to EU standards and modernization and development of the
transmission and distribution infrastructure
International investors’ interest towards Georgia has been increasing
over the past decade resulting in the energy sector being the second
largest sector according to the flows of FDI. Starting from 2011 till Q3,
2016 the power sector has attracted more than 1 billion US Dollars of
foreign direct investments, representing 17% of total FDI, surpassed
only by transportation and communication sector
A liberalised and deregulated market allows renewable energy generators to
operate freely on the Build-Own-Operate (BOO) principle, with investors
being free to choose the market they wish to operate in
Local energy demand is forecast to grow steadily in line with the GDP of the
country, with further opportunities to export to neighbouring countries
suffering from structural power deficits or expensive power generation. Over
the past nine years electricity generation in Georgia has increased by more
than 30%, while demand increased by 33% during the same period
As of today, most of Georgia’s hydro power potential is yet untapped (around
75%) with more than 60 potential hydro power projects being at the prefeasibility study level. Currently, there are more than 70 power stations with
total installed capacity of 3,724 MW, out of which 75% comes from hydro
power plants
Important notice:
In preparing our research, we relied on the information available on public
sources, as well as on public information obtained via interviews.
This Report was prepared solely for provision of information regarding the
power sector of Georgia and should not be considered as an investment
recommendation.
© 2016 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative
(“KPMG International”), a Swiss entity. All rights reserved. Printed in Georgia.
1
Contents
page
Market overview:
Electricity generation in Georgia
4
Transmission and Distribution
5
Tariffs and regulation
7
Development potential
9
KPMG capabilities
12
© 2016 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative
(“KPMG International”), a Swiss entity. All rights reserved. Printed in Georgia.
2
Market overview
Market overview
Electricity generation in Georgia
Electricity generation in Georgia
There are five types of electricity generating companies
operating in Georgia:
— Regulated stations – those operating under regulated tariffs
and licenses
Power Generating companies
Enterprise
1 "Engurhesi" Ltd
— Deregulated stations – operating under free tariffs and
licenses issued by a regulatory body
— Guaranteed reserve sources (thermal stations) – operating
under two tariffs and licenses issued by a regulatory body
According to The Ministry of Energy of Georgia and the
Electricity System Commercial Operator (ESCO), there are more
than 40 power generating companies in the country, of which 14
companies are generation licensees (according to the local
regulation the companies with installed capacity below 13MW do
not require licensing). While most of the companies are privately
owned, state companies generate 57% from the total generated
volumes
Most of the companies operate hydro power plants (HPPs) with
only four thermal power stations (TPPs) with total installed
capacity of around 852MW. TPPs are used as a Guaranteed
Capacity (GC) providers and ESCO has the exclusive right to
conduct the trading with the GC providers
Owner
Type
capacity
(MW)
Engurhesi
State
HPP
1,300
2 JSC "Energo-pro Georgia"
— Semi-deregulated seasonal stations - operating under
ceiling tariffs and licenses set by the regulatory body
(Georgian National Energy and Water Regulatory
Commission)
— Small stations – operating without licenses and regulated
tariffs
Power Plant
Private
590
Shaori-Dzevula cascade
HPP
119
Lajanurhesi
HPP
114
Airturbina ("Gpower" Ltd)
TPP
110
Gumati cascade
HPP
70
Rionhesi
HPP
50
Mtkvari cascade
HPP
39
Zahesi (JSC "Zahesi")
HPP
37
Iori Cascade
HPP
27
Atshesi
HPP
18
Chkhori (JSC "Zahesi")
HPP
6
Kinskisha (JSC "Zahesi")
HPP
1
3 "Mtkvari Energy" Ltd
Gardabani Energy Block #9
Private
TPP
300
4 "International Energy Corporation of
Georgia" Ltd
Tbilsresi; others
Private
TPP,
HPPs
308
5 "Gardabani Thermal Power Plant " Ltd
Gardabani Thermal Power Plant State
TPP
231
6 "Vardnili Hydroplant Cascade" Ltd
Vardnilhesi
State
HPP
220
7 "Vartsikhe 2005" Ltd
Vartsikhehesi
Private
HPP
184
8 "Georgian Water and Power" Ltd
Zhinvalhesi; others
Private
HPP
146
9 JSC "Khramhes-1"
Khrami-1
Private
HPP
113
10 JSC "Khramhes-2"
Khrami-2
Private
HPP
110
11 "Georgia-Urban Enerji" Ltd
Paravanihesi
Private
HPP
87
12 "Eastern Energy Corporation" Ltd
Khadorhesi
Private
HPP
24
13 "Energy" Ltd
Larsihesi; Shidahesi
Private
HPP
24
14 "Saknakhshiri (GIG Group) " Ltd
Tkibuli Thermal Power Plant
Private
TPP
13
Other (with installed capacity below 13
MW)
Total
91
3,740
Source: Ministry of Energy of Georgia, ESCO, Energo-Pro Georgia
© 2016 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative
(“KPMG International”), a Swiss entity. All rights reserved. Printed in Georgia.
4
Market overview
Transmission and Distribution (1/2)
JSC "Energo-Pro Georgia"
Market share
JSC "Energo-Pro Georgia" is one of the largest electricity transmission
companies in the Georgian energy market, owning high (110kv) voltage,
medium (35-110kv) voltage and the low (6-0.4kv) voltage networks in
most of Georgia, except Tbilisi and Kakheti regions
Kakheti Energy Distribution
5%
Telasi
33%
The main features of the company’s activities include distribution of
electric energy, production of electric energy, electric energy transit and
technical service of its subscribers
Energo-Pro
Georgia
62%
Energo-Pro Georgia distributes generated energy power to 850,000
subscribers (40% of electric energy use in Georgia)
Source: GNERC
JSC "Telasi"
JSC "Telasi“, second largest electricity transmission company in
Georgia, owning high, medium, and low voltage networks in and around
the capital city
The main features of company activities include distribution and transit
of electric energy, technical service to the consumers and billing and
payment service of other service organizations
JSC Telasi distributes to 416,500 subscribers in a year
JSC "Kakheti Energy Distribution"
JSC "Kakheti Energy Distribution" is the only distribution company in the
Kakheti region owning also high, medium and low voltage networks
Transmission
Two power transmission licensees are operating within the Georgian
territory "Georgian State Electro System” JSC and “Sakrusenergo” JSC
GSE assets include the major part of transmission facilities. By virtue of
the license issued and the tariff established by the Georgian National
Energy Regulatory Commission, electricity transmission licensees are
allowed to deliver the locally produced or imported electric energy to the
distribution energy companies, direct consumers or the neighbor
country`s energy systems without the right to sell and purchase
electricity
The company distributes generates electricity to 117,058 customers
© 2016 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative
(“KPMG International”), a Swiss entity. All rights reserved. Printed in Georgia.
5
Market overview
Transmission and Distribution (2/2)
Georgian State Electrosystem
Dispatching
JSC Georgian State Electrosystem (GSE) is a 100% state-owned
company providing transmission and exclusive dispatch services to
about 50 eligible companies in Georgia
The National Control (Dispatch) Centre, or NCC, of Georgia is located
at GSE headquarters, in the center of Tbilisi. The NCC provides control
over the operations of Georgian power system and ensures overall
system reliability and proper operation of 500/330/220/110/35 kv
transmission facilities under the normal operational mode, as well as in
emergencies. The NCC is equipped with state-of-art technologies and
enables Dispatch to get the system information online, ensure remote
control and efficient restoration after incidents. The dispatch is able to
get accurate information from substations and, as a result of upgraded
data base, operatively reacts to any system faults or emergencies
GSE carries out technical control over the entire power system to
ensure the availability of the system for an uninterrupted and reliable
power supply. Georgia’s transmission network operates at
500/400/330/220/110/35/10/6 kv voltages.
Georgian grid is connected to power systems of neighboring countries
through 500/400/330/220/110kV transmission network.
Georgian State Electrosystem and its subsidiary company Energotrans
owns in total 141 lines of 500/220/110/35 kv with the total length of
3,350 km.
Customers distribution
GSE has three types of customers: distribution companies (83% share
from the total generated volumes), direct consumers (11% share from
the total generated volumes) and export markets (6% share from the
total generated volumes)
© 2016 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative
(“KPMG International”), a Swiss entity. All rights reserved. Printed in Georgia.
6
Market overview
Tariffs and regulation (1/2)
Regulations
As of today, Georgian electricity market has one regulatory body,
namely, Georgian National Energy and Water Supply Regulatory
Commission (GNERC), which regulates the electricity, natural gas and
water supply sectors. Regulatory Commission issues the generation,
transmission, dispatching and distribution licenses. It is worth
mentioning, that hydro power plants with capacity up to 13 MW do not
require license to operate
Electricity Trading Balances by countries:
Million kwh
Tr. balance with Turkey
Tr. balance with Azerbaijan
Tr. balance with Armenia
Tr. Balance with Russia
Total trading balance:
2010 2011
2012
2013
2014
2015
Jan-Jul
2016
303 219
4 (17)
89 117
905 141
1,301 460
79
(86)
68
(148)
(87)
0
(17)
73
(90)
(34)
236
(176)
138
(447)
(249)
419
(102)
(16)
(341)
(40)
167
(23)
89
(207)
(26)
Starting from 2008 Georgia has liberalized and deregulated energy
market. Renewable projects are based on Build-Own-Operate (BOO)
principle
Source:
ESCO
Trading
Trading (continued)
Starting from 2006, Electricity System Commerical Operator plays
crucial role in successful operation and development of Georgian
electricity market. Balancing electricity, which is traded via ESCO,
accounted for only 10% of total electricity trading. the remaining 90% of
the electricity trading was based on direct contracts. In direct contract
trading, electricity producers sign bilateral contracts with large electricity
consumers or distribution companies
— Inspection of meters used in wholesale trade
Main functions of ESCO:
— Facilitation of construction of new electric power plants
— Purchase and sale of balance Electric Power (capacity) (including
by means of conclusion of middle-and long-time import/export
agreements)
— Carrying out other procedures determined by the law
— Setting up of a unified data-base on wholesale purchase and sale,
including creation and management of a unified registry of reporting
— Establishment of actual volumes of electric power from sellers, and
buyers on the basis of electric power sold and/or bought or received
(consumed), and submission of information on the final settlement
— Trade with Guaranteed Stand-by Capacity as per the Law of
Georgia on Power Industry and Natural Gas and Electric Power
(Capacity) Market Rules
© 2016 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative
(“KPMG International”), a Swiss entity. All rights reserved. Printed in Georgia.
7
Market overview
Tariffs and regulation (2/2)
Tariffs
Market overview
Regulations apply only to social customers, while direct customers are
deregulated
Average tariffs of Balancing electricity sold by ESCO
14.0
12.3
11.1
12.0
Tetri/KwH
Georgia currently has no special legislative acts to regulate the use of
renewable energy sources. There are no tariffs set for newly built HPPs,
and investor is free to choose market and negotiate price. No fee is
required for the connection to transmission grid. No license is required
for export with new HPPs having priority access to the capacity on the
new interconnection to Turkey. Generation and export activities are
exempted from VAT tax.
10.0
8.0
9.0
7.8
7.8
2012
2013
6.6
6.0
Small HPP operators with capacity up to 10 MW, have the opportunity
to sell electricity directly to consumers at tariffs negotiated bilaterally or
even to export without the need for an export license
4.0
2.0
Investors can benefit from the incentives provided by the state such as,
new Hydro Power Plants up to 100 MW are offered a guaranteed
purchasing agreement with ESCO for the first 10 years of operation in
which the tariff can be negotiated between the company and the
Georgian National Energy and Water Supply Regulatory Commission
(GNERC)
Production regulation
All new HPPs are also fully deregulated, meaning that the company can
choose the market to operate in and negotiate the price without any
intervention from the regulatory body
Electricity producers are free to carry out economic activities
independently signing short-term (one year) or long term (5 years) direct
contracts on sale and purchase.
0.0
2011
Source:
2014
2015
2016
ESCO
However electricity producers are obliged to have reserve power
amounted to 10% of its capacity (minimum 5% of this amount should
be supplied by local sources) for ensuring energy security of the
country, the 10% required reserve quota will be raised to 15% during
2016-2019
© 2016 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative
(“KPMG International”), a Swiss entity. All rights reserved. Printed in Georgia.
8
Market overview
Development potential (1/3)
Hydro power
Hydro resources take the first place among the natural riches of
Georgia. There are 26,000 rivers on the territory of the country. Their
total length is approximately 60,000 km. The entire fresh water supply of
Georgia, which is made up of ice, lakes and water reservoirs, is 96.5
km3. Around 300 rivers are significant in terms of energy production;
their total annual potential capacity is equivalent to 15,000 MW
Georgia is one of the top countries in terms of water resources per
capita and it is logical that today 80% of total electricity is generated
from Hydro Power Plants (8.3 TWh), being the main energy resource.
Despite this, there still is vast untapped potential, as only 25% of
economically feasible Hydro potential is exploited today
Georgia could produce an additional 24 TWh annually with hydro
resources alone
Considering the peculiarities of Georgian rivers, which are characterized
by distinct seasonality, these resources can be distributed only by
building hydro power stations with regulating water reservoirs in the
short and long term perspectives. However, from the ecological point of
view, such kind of construction is problematic. This is one reason why
hydro power stations with small reservoirs are more common. The
Government of Georgia has approved the State Program – “Renewable
Energy 2008” which includes the list of potential greenfield projects and
rules for construction of new renewable energy sources
Some of the projects which are being built under the aforementioned
program are:
— Cascade of Namakhvani HPPs - with the installed capacity of 450
MW and generation of 1,670 million KWh
— Faravani HPP - with the installed capacity of 78 MW and generation
of 425 million KWh
— Cascade of HPPs on the rivers: Chorokhistkali, Lukhuni, Tekhura,
Gubazeuli, Mtkvari, Bakhvistskali and etc. totally 21 HPPs (total
installed capacity of 1,583 MW and generation of 5.5 billion KWh)
are under construction agreements
— Nenska HPP - expected to go online in 2019, have a 280 MW
capacity and will have the potential to produce an annual 1.2 billion
kWh output
— Shuakhevi HPP (AGL) – with installed capacity of 187 MW
— Oni Cascade – with installed capacity of 172 MW
Solar Power
Taking into consideration geographical location the effective radiation of
the sun is rather high in Georgia. In fact, according to the research done
by local consulting firm PMCG, Georgia has one of the highest sunshine
levels of all European countries. In most regions of the country annual
duration of solar shining ranges from 250 up to 280 days amounting to
approximately 1900-2200 hours. The total solar energy potential is
evaluated at 108 MW
— Khudoni HPP – with the installed capacity of 700 MW and annual
generation of 1.5 billion KWh
© 2016 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative
(“KPMG International”), a Swiss entity. All rights reserved. Printed in Georgia.
9
Market overview
Development potential (2/3)
Wind power
Thermal power
Georgia has significant wind potential through which average annual
electricity generation is evaluated at 4 billion KWh and installed capacity
of 1,500 MW. According to the wind energy potential the territory of
Georgia is divided into high, mean and low speed zones where the wind
speed fluctuates from 2.5 m/s up to 9.0 m/s. The work lifetime amounts
to 4,000-5,000 hours annually. The most favorable places for wind
farms are identified including the whole territory of Georgia
Thermal Power Plants (TPP) are the source of guaranteed electricity
supply in Georgia. Usually, TPPs are in standby mode, ready to supply
the system when needed, typically in winter period. In 2015 TPPs
accounted for 21.9% of total generation, meaning they are vital to
Georgia’s electrical stability. Because of this, even when in standby
mode TPPs receive payment to cover maintenance and fixed costs
The works are being carried out for the preparation of feasibility study
for prospective wind farms which can be placed in:
— Laghluja mountain range (45 MW, 110 million. KWh)
— Mta-Sabueti – (100MW, 370 million KWh)
— Samgori upland (45 MW,130 million KWh)
— Gori –Skra section (90 MW, 250 million KWh)
— The nearby territory of Kutaisi (90 MW, 225 million KWh)
— The gorges of the rivers Faravani and Chorokhi with 120 and 30
MW installed capacity and 336 and 90 million KWh electricity
generation.
As of today, there are four companies operating thermal power plants
and working as Guaranteed Capacity Suppliers:
1. Mtkvari Energy LLC – with installed capacity of 300 MW (Block #9)
2. Georgian International Energy Corporation LLC – with installed
capacity 270 MW
3. G-Power LLC – Airturbine thermal power plant with installed
capacity of 110 MW
4. Gardabani TPP LLC – installed capacity of 231 MW combined cycle
thermal power plant financed by Partnership Fund and Georgian Oil
and Gas Corporation. Currently, Georgian Energy Development
Fund is working on another 250 MW combined cycle thermal power
plant project to be commissioned in 2019
© 2016 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative
(“KPMG International”), a Swiss entity. All rights reserved. Printed in Georgia.
10
Market overview
Development potential (3/3)
© 2016 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative
(“KPMG International”), a Swiss entity. All rights reserved. Printed in Georgia.
11
Our capabilities
Our P&U capabilities
Global capabilities of KPMG in the P&U sector
KPMG makes a substantial contribution to the development of the power and utilities industry globally by facilitating and promoting
knowledge sharing, supporting industry regulating authorities and above all by providing outstanding quality of services to our clients
across the world
Global Power & Utilities Conference
Global industry energy centers
The conference is KPMG’s leading event for CEOs, divisional heads
and financial executives in the power & utilities sector and will bring
together over 250 executives from across a broad spectrum of the
industry, including power producers, developers, investors, regulators
and other key industry stakeholders.
KPMG established global industry energy centers, which carry out an intensive exchange of knowledge and
experts in the implementation of energy projects around the world, thereby helping KPMG clients in finding
solutions to the complex problems of any degree of complexity.
The conference brings together 250 executives of power producers,
developers, investors, regulators and other industry stakeholders
(NGOs, Research Institutions etc.) from over 40 countries around the
world in a series of interactive discussions.
The conference focuses on strategic, financial, environmental and
risk related issues that are top of mind for power and utilities
executives. The intensive day-and-a-half program consists of keynote
presentations by distinguished leaders, issue-focused plenary
roundtable discussions and parallel interactive sessions.
The goal of the conference is to provide participants with new
insights, tools, and strategies to help them manage industry-related
issues and challenges. Attendees also have the opportunity to join
their peers from leading power and utilities companies to share
effective practices and participate in networking activities.
:
Calgary
(Canada)
Dallas
(USA)
London
(United Kingdom)
Paris
(France)
Moscow
(Russia)
Tokyo
(Japan)
Budapest
(Hungary)
Hong Kong (China)
KPMG Industry energy
centers
KPMG industry energy
center in Moscow, Russia
Sao Paolo (Brazil)
Johannesburg
(South Africa)
Melbourne
(Australia)
Thought leadership
KPMG member firms currently provide services to the world’s
leading Power & Utilities companies. Being the leader also means
investing in developing thought leadership, spearheading industry
debates to help keep our firms’ clients at the forefront of progressive
thinking, and giving our people the skills and knowledge to provide
the quality and customized services our clients require.
You can find the most recent publications at
http://www.kpmg.com/energy
Floating LNG:
Revolution and
evolution for the
global industry?
Taxes and
incentives for
Renewable
Energy
© 2016 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative
(“KPMG International”), a Swiss entity. All rights reserved. Printed in Georgia.
Nuclear Power:
its role in shaping
energy policies in
Asia Pacific
13
Our P&U capabilities
P&U practice of KPMG in Georgia, Russia and CIS
We have extensive coverage of P&U industry in Russia and CIS…
…and work with the largest P&U companies in the region
Key clients of P&U group
Dariali HPP
St. Peterburg
Moscow
Kiev
Nizhny Novgorod
Kazan
Rostov-on-Don
Perm
Ekaterinburg
Novosibirsk
Tbilisi
Yerevan
Astana
Krasnoyarsk
Baku
InterRAO (RU)
Khudoni HPP
Russian Grids (RU)
Gardabani CCTPP
Fortum (RU)
Mtkvari Energy
Razdan TPP (AR)
Nenskra HPP
Electricity networks of Armenia
(AR)
Tata Power
Federal Grid Company (RU)
Georgian State Electrosystems
T Plus group (RU)
Adjaristskali Georgia
Gazprom group (RU)
Almaty
ESCO
Samruk Energo (KZ)
Energotrans
System Operator (RUS)
Sakrusenergo
KEGOC (KZ)
Gazprom Energoholding (RU)
Ekibastuz GRES-1 (KZ)
Driving industry changes
Advising state authorities on reforms, regulation, privatization
MOEK (RU)
Azerenerji (AZ)
EuroSibEnergo (RU)
Azerishiq (AZ)
Unrivalled access to industry decision makers
Direct dialog with authorities and business leaders
Siberian Generating Company (RU)
Kievenergo (UA)
RusHydro (RU)
NAK Energoatom (UA)
Rosatom group (RU)
DTEK (UA)
Bishkek
We share our knowledge for the benefit of the industry
Facilitating knowledge sharing and progressive thinking
Regular business breakfasts, topic-driven events
© 2016 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative
(“KPMG International”), a Swiss entity. All rights reserved. Printed in Georgia.
14
Our M&A capabilities
KPMG is the Leading M&A Advisor to the Mid Market
Leading M&A Advisor globally
Rating
Advisor
No. of deals closed,
6М 2016
1
KPMG
149
2
PwC
143
3
Deloitte
132
4
Goldman Sachs
123
5
Rothschild
122
6
Morgan Stanley
121
7
JPMorgan
102
8
Lazard
102
9
Credit Suisse
89
10
EY
84
Leading M&A Advisor in Europe
Rating
1
Advisor
No. of deals closed,
6М 2016
KPMG
122
106
2
Rothschild
3
PwC
97
4
Deloitte
84
5
Lazard
68
6
EY
61
7
Goldman Sachs
51
8
BNP Paribas
47
9
Morgan Stanley
42
10
Credit Suisse
40
Source:
Note:
KPMG Corporate Finance is the European leader
in advising on middle market merger and
acquisition transactions
Deep sector knowledge via delivery of services
through dedicated industry groups that work together
across the globe
>2 000
professionals in 62 countries – significant
dimensions of the international network of
KPMG
Since we are not related to any financial institution we
can offer impartial advice
Our purpose and aspiration is to turn knowledge into
value for the benefit of our clients, our people, and
the world’s capital markets.
Mergermarket
Deals valued over less than USD 1 bn
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(“KPMG International”), a Swiss entity. All rights reserved. Printed in Russia.
15
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The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity.
Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is
received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a
thorough examination of the particular situation.
© 2016 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of independent member
firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Georgia. The KPMG
name and logo are registered trademarks or trademarks of KPMG International.
Document Classification: KPMG Confidential