New Energy, one of the biggest construction companies in Georgia, is currently working on 19 projects.
The main fields of the company’s activity are water and sewage supply systems, road construction, gas pipelines, water treatment plants, etc.
“We have several directions of work and we are proud of that. We have this experience to conduct big complex projects in a very short amount of time, which distinguishes New Energy from other companies. There have been no unrealized projects for us – first we learn very quickly and then do it quickly as well,” said Georgy Vachnadze, General Director of New Energy.
According to Vachnadze, infrastructure is developing very fast in Georgia and the quality completely meets high standards. New Energy is implementing huge and innovative projects all around Georgia.
“We are a success in all directions. We have done water and sewage supply systems in Batumi and are now making them in Mestia and Kutaisi. We have recently finished road building in Ozurgeti and Gurjaani. The company built a 58 km highway sector near Igoeti. We are going to repair the highway in Gori as well. In cooperation with Georgian Oil and Gas Corporation we are completing a project of a 30 km pipeline in Saguramo. Recently we added a new direction to our portfolio. In a month we’ll start the building of high tension lines. Our entrance to the sector will be a 45 km high tension line” – said General Director of New Energy.
“One of our largest projects is water treatment plants,” Vachnadze claims. “It’s clear that we have great water, but still this water has to be treated. A water treatment plant in Bakuriani was one of the first projects of such a level. There were no water filter systems or treatment plants in Bakuriani or Borjomi. Since Bakuriani we have been building a treatment plant in Borjomi.”
New Energy finalized construction of the pumping station at village Tvaurebi. This is the project bearing special importance as a result of which the irrigation channel blocked by Russian occupants has been restored and consequently 2700 households of 10 villages of Tezi-Okami shall uninterruptedly utilize irrigation water.
The company tries to employ all local people. Currently they have more than 1,000 employees working on different projects. Sometimes their number reaches up to 3,000. Employing local people is essential for the company as they want to bring as much profit to the country as possible.
“We are doing a national job. We are maintaining the infrastructure in the country, which is essential for the further development of Georgia. We try to keep all profit within the country. By hiring Georgians the money stays in Georgia and the Georgian economy. We leave knowledge in the country as well. While working in the regions, 95 percent of our employees are local and the experience remains in the region. It gives them extra possibilities of employment.” Vachnadze told The FINANCIAL.
All members of the managing team of New Energy are Georgians as well. They are people who were working internationally and came back to work for their home country. By such an approach they are trying to do a national job as the company is oriented on the development of Georgia. Vachnadze himself was living in Europe for 16 years. He received his education in the UK and was working in the reconstruction business in Spain for 10 years. Last year he came back to do national business with other internationally educated and experienced Georgians.
“Our approach of having internationally experienced people in the team ensures European standards of work and vision of the company” Vachnadze said. “At the moment the country really lacks high level specialists. This is one of the main problems in the construction business. Georgia had great specialists, but the majority of them have left the country. Now I see the tendency they come back in Georgia, which makes me believe that, this problem will be resolved in a couple of years.”
Another main problem of the sector is having the necessary machinery. Companies need great capital investment to purchase a great deal of equipment as they are starting from zero. There is no preservation of machinery in the country and no companies to rent it from either. Vachnadze considers it one of the main complications of the sector. However New Energy has already bought lots of equipment for all the fields of their activities.
“I hope that both problems will be solved in the near future. In general Georgians are great in overcoming difficulties. They are a forward thinking people and have the ability to learn and retain important information. If the company has a good financial partner then the problems should be solved especially soon.”
New Energy has several local and international financial partners. Bank of Georgia is their main financial partner. These two companies have the same vision in doing national jobs and that’s why the Bank supports the construction business financially.
“Bank of Georgia understands the business. They know what the risks are and what the opportunities are. Their assistance is crucial for us. They don’t only assist us financially. They have been able to advise us on certain organizational issues. It is great. They somehow monitor our activity. It’s always good when you have a business partner interested in your success. They see the reality from the outside and prompt you about what to do. It’s the best unbiased advice,” Vachnadze stated.
Apart from Bank of Georgia New Energy also works with financial institutions like the European Bank of Reconstruction and Development, World Bank, KfW, ADB etc. They have partners from different areas including Israel and countries of the European Union. The company is looking for partners which have huge experience.
“Georgia needs partners. It is key as we are a small country,” he said. “But it doesn’t mean that we can’t be big in terms of business. We are searching for experienced partners as we learn from them. The experience remains in the country. It’s one of our main goals. When the day comes we will enter the international market. We are good in our country and we will become good internationally. It is our policy and our mission” – said Vachnadze
New Energy has been running construction business in the local market for seven years already and has achieved a great deal of success in this short amount of time. As they already have huge education and experience, they already have the possibility to enter the international market. But the top priority of the company is to maximally develop the infrastructure of Georgia and make significant contributions to biggest projects in Georgia.
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