Georgia Capital PLC (the Group or Georgia Capital), announces that the Group’s property and casualtyinsurance portfolio company, Aldagi (the “Company”), has won the state tender, through its wholly-owned subsidiary, to launch and operate 51 periodic technical inspection lines across Georgia. As part of the Georgia-EU Association Agreement, Georgia will implement a mandatory vehicle inspection program in several phases starting from January 2018. An initial inspection of all vehicles is expected to take approximately two years through the end of 2019 and pricing for each inspection check is set at GEL 100 for heavy vehicles and at GEL 60 for light vehicles. Aldagi estimates that investment of approximately GEL 35-40 million will be required to build the inspection lines, which will be fully funded by borrowings.
Aldagi has partnered with Applus+, a Spain headquartered worldwide leader in testing, inspection and certification with a market presence in more than 70 countries, to provide the vehicle inspection services. Subject to the successful completion of an accreditation process, Aldagi is expected to start operations by the end of 2018.
Irakli Gilauri, Georgia Capital Chairman and CEO commented: “We find service industries very attractive in Georgia and I am delighted to see Aldagi expanding into mandatory vehicle inspection services business. Due to the new regulations, this industry is expected to become an approximately GEL 55-65 million annual market, with the Company achieving approximately 36% market share. This expansion will also allow Aldagi, the largest motor insurance provider in Georgia, to develop a unique platform with significant synergy potential across its businesses.”
