Logistics and Sales
IAZ will exclusively service up to 93 different Greenhouse operators, several service providers including agricultural equipment providers, banks, retailers and utilities providers. The capacities will be developed over time. As part of the one window service offering of the IAZ, the opportunity exists for a logistics and sales company to collect the produce, provide quality assurance, consolidate and package the produce, provide temporary cold store hold, handle sales of the produce for the benefit of the tenants, and prepare the produce for shipping.
Proposed Commercial Structure
The logistics and sales providers operating within the IAZ is expected to be a separate, self-sustaining commercial entity. A dedicated space has been earmarked in close proximity to the central access to the IAZ, and other service facilities. The operator may purchase or lease the dedicated plot from IAZ. In 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).
Commercial considerations and Principles
IAZ is implementing the Greenhouse Cluster Development to strengthen the economic and social growth of the Imereti region. 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 commitments.
The commercial principles to be adopted for the Project will be consistent with the applicable laws and policies of Georgia, including Georgia’s PPP Policy and Guidelines.
The Project will be delivered under appropriate tenure and access arrangements applicable to both the Development Phase and the Operating Phase. A dedicated plot has been earmarked for the operations of the Logistical and Sales services. For further details, please refer to production site information, providing full details of the plots offered for occupation.
IAZ will complete the external infrastructure and preparation of the plots offered under this EOI on ongoing basis, plot-by-plot as assigned in 2 phases in the preliminary business plan, starting from the Spring 2022, to 2024.
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.
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 its services provision 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,
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/)
Please click the picture to the right to access the public EoI documentation.