MINISTRY OF ECONOMY
AND SUSTAINABLE DEVELOPMENT
OF GEORGIA

Minister of Economy and Sustainable Development Natia Turnava met with the newly elected members of the Supervisory Board of the JSC Georgian State Electrosystem. The new board of the state-owned enterprise was elected in the framework of a large-scale reform of the state-owned enterprises in Georgia. The Supervisory Board of the JSC Georgian State Electrosystem will be represented by Jorg Maties, Teona Makalatia, Ekaterine Shavgulidze, Zurab Bekaia and Leontina Galdava. The term of their service in the council was set at three years.

The Minister noted at the meeting that the Georgian State Electric System is the first strategic state enterprise to be subject to reform. The Minister highlighted that in order to bring the corporate governance system in line with the international standards, the company has started the process of corporatization. Among them, the Supervisory Board of the organization was transparently and impartially selected through an open competition and was composed entirely of non-executive members, which ensures a high degree of independence of the Board.

Natia Turnava congratulated the members of the Supervisory Board on their election to responsible positions and wished them success in the implementation of the next stages of the reform of the State Electrosystem. The Supervisory Board of the State Electrosystem was established according to the best international standards. High-ranking professionals were chosen to the position of the board members. “They will help the company and its management to establish the Georgian State Electrosystem according to the best corporate standards and to manage it more efficiently,” – Natia Turnava added.

According to Natia Turnava, the main task of the reform of state enterprises is to create a strong and independent management system. As the Minister noted, after the reform, the Georgian State Electrosystemw should be able to attract financial resources to both local and foreign financial markets without state assistance.

According to the Minister, in recent years, effective steps in the Georgian State Electrosystem management has been made and in particular, the company has fully repaid its financial obligations to creditors and completed the rehabilitation mode in 2021 instead of 2023.

The National Agency for State Property announced the selection of members of the Supervisory Board for the Georgian State Electrosystem in March 2, 2021 and 174 candidates applied. As a result, five members of the Supervisory Board were selected.

In the nearest future, the remuneration, audit, appointment, investment and risk committees will be established in accordance with the provisions approved by the Board. The Supervisory Board will also approve various policies and an updated code of ethics, which is a prerequisite for the further development of the company.

The competence of the members of the Supervisory Board covers the development of a corporate strategy and annual business plan, budget monitoring, selecting, appointing, dismissing and developing a salary policy for the positions of Chairman of the Supervisory Board and the CEO of the company.