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Logistics and Sales

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Overview

IAZ will exclusively service up to 93 different Greenhouse operators, several service providers, including agricultural equipment providers, banks, retailers, and utility providers. The capacities will be developed over time. As part of the one-window service offering, the opportunity exists for a logistics and sales company to collect the product, provide quality assurance, consolidate and package the product. Also, offer temporary cold storage, handle sales of the product for the benefit of the tenants, and prepare the product for shipping.​

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Proposed Commercial Structure​

The logistics and sales providers operating within the IAZ are expected to be a separate, autonomous commercial entities. A dedicated space is assigned close to the central access to the IAZ and other service facilities. The operator may purchase or lease the dedicated plot from IAZ. In the case of the logistical center, IAZ expects to receive concrete proposals through the announced EoI to define the legal structuring of the logistics and sales company. Whether it should be structured as 100% IAZ-owned, PPP Project, or 100% private cooperative, LLC, or JSC structures, being part of the fully funded financial proposal expected in Phase 2 (RFP Process).​

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Commercial considerations and Principles​

IAZ is implementing the Greenhouse Cluster Development to strengthen the economic and social growth of the Imereti region. Therefore, the Logistics and Sales Company will be expected to make binding commitments to support the farming and greenhouse businesses within the IAZ. Please refer to the stipulations for Farmers and Greenhouse investors for an overview of expected obligations. ​

The commercial principles to be adopted for the Project will be consistent with Georgia's applicable laws and policies, including Georgia's PPP Policy and Guidelines. ​

Tenure Arrangements​

 

The Project will be delivered under appropriate tenure and access arrangements applicable to both the development and operating phases. In addition, a dedicated plot has been earmarked for the operations of the Logistical and Sales services. Please refer to IAZ GHCD production sites information for further details, providing complete details of the plots offered for occupation.

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Handover requirements

IAZ will complete the external infrastructure and prepare the plots offered under this EoI on an ongoing basis, plot-by-plot as assigned in 2 phases in the preliminary business plan, starting from Spring 2022 to 2024. ​

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The Logistics and Sales company being contracted as a successful respondent following the conclusion of the RFP stage will be expected to complete the provision of the logistics and sales services in parallel with the plot development as phased by the IAZ.​

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Commercial Development Opportunity​

Beyond the privileged access to 93 farming and greenhouse businesses operating at the fully developed stage within the IAZ, the logistics operator has the opportunity to extend the provision of its services to neighboring small farmers and cooperatives, with already existing production of vegetables, herbs, and berries located at, e.g., Kopitnari IDP settlement and Partskhanakanevi, Maghlaki, Geguti, ​

Tkachiri villages. ​

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In the scope of the joint initiative, "EU Innovative Action for Private Sector Competitiveness in Georgia," of the European Union and four UN Agencies – United Nation Development Programme (UNDP), the Food and Agriculture Organization (FAO), United Nations Industrial Development Organization (UNIDO) and the International Organization for Migration (IOM), IAZ is invited to consider the possibility of developing the Packaging House concept at the IAZ Greenhouse Cluster Development Production Site in direct cooperation with the Packaging Manufacturers Association of Georgia (PMAG) that is actively supported by the UNDP program on Clusters 4 Development - Better Business Sophistication in Georgia (https://eu4business.eu/projects/page-2/)