Parliament passed with its third and final reading on October 26 a draft law imposing partial tax exempts for investing in construction of hotels on 11.4 hectare plot of land on Black Sea coast in Adjara Autonomous Republic.

According to the proposal an investor, who will pour at least GEL 1 million (about USD 562,000) in construction of a hotel in Kobuleti, will enjoy with profit and property tax exempts for next 15 years. An initial proposal, as it was announced in September by President Saakashvili, envisaged that the construction should have been completed by August 1, 2011.

The proposal, however, was modified and it was decided that the deadlines will be set to each individual case by a special state commission.

Investors, ready to invest at least GEL 1 million, will be able to obtain plot of land in the area, known as “Kobuleti free tourism zone”, for “a symbolic GEL 1”, according to the adopted law.

The government takes commitment to build all the necessary infrastructure in the area, including gas, water, electricity and road infrastructure.