BUILDING POTENTIAL

By. Keti Mikeladze

At first sight, there is a construction boom in Georgia, especially, in Tbilisi. The city is gradually changing. The article does not concern the reason and aim of building something, but the building materials.

According to the representatives of former building trusts, there was a real construction boom in 60-80 years with new microrayons and 60-65 building objects. People who went through the ten year period of destruction are encouraged by the sight of beautiful houses being built here and there. Nowadays, everybody speaks of construction facing materials that offer perspectives for either unemployed qualified engineers or workers. Restaurants are supposed to come out of fashion and construction of workshops for producing construction bricks and blocks is thought to become popular soon. We will try to find out what the extent of this consideration and unreliability of this branch is. Five skeletons of miners from the remote past Many people do not even know that Georgia holds the first place in the quantity of rich minerals in 1 square meter. We will not enumerate all the minerals used in construction (some of them are given in a table). Generally speaking, only a narrow circle of miners and geologists is familiar with mining and its history. Geological age of Georgia is approximately 10 million years. Production of bronze dates back to approximately 5 thousand years.
Nodar Kajaia, head of chair of geology and mining operations in Technical University speaks to us:
“An exhibition was opened in Germany in 2001 under the leadership of Irine Gambashidze. It was devoted to the history of Georgian mining and metallurgy that has functioned up to the present”. Germans took a great interest in it. They even made an atlas in honour of this exhibition. There are many traces of metallurgical workshops. During the excavations in Racha traces of rock processing mines dating back to the Bronze century were discovered. Five skeletons of miners and their tools were found: spade made of ox- scapula and ox-ribs were used instead of mattock. They used fire and water for crushing rock”. Millions of rubbles were assigned for geological works in the Soviet empire. Given the fact that the Soviet Union was a rich country, estimation of mineral deposits was performed on a gigantic scale. It was not profitable for the Centre to develop and invest money in small deposits (f.e. in copper-bed, complex ore in Merisi; barite field in David Gareji; gold field). Pure barite field was discovered in Oni and Tskhaltubo. In 1993, one ton of barite cost 260 million US dollars! Russia has not been studying deposits of silver ore in Svaneti and Abkhazia for a long time already. This position has its own advantageous – many deposits in Georgia were left untouched. In general, Georgia is very rich in inert materials (sand, detritus), cement-bound granular materials (gypsum, plasterboard). It is noteworthy that 10 parts of the total value of minerals extracted in the whole world fall at the share of non-metal ore whereas one part falls at the share of metal ore. Under the decree of 10 January 2000 passed by Janelidze, geology department chairman, any information on mineral deposits became paid. Its price ranges from 5 to 150 US dollars. There is no doubt that Georgian geologists have spent much energy on the study of minerals in all corners of the world, but we must take into consideration the fact that in reality no journalist can afford paying the tariff. The minimal amount of the tariff equals nearly half of the average statistical honorarium. Thus, this information will be available only to a narrow circle of people who are going to obtain a license of mining operation and research.
Somehow or other, some producers of construction facing materials turned out to be more eloquent: vast masses received their own impressions of the branch, first of all, from the viewpoint of employment problem that is so actual to them. “Bread” of construction: cement
Cement went down to history later. It is difficult to say what people used instead of cement in other countries. As far as we know lime that was made from burnt chips of limestone was used in Georgia then. It was made in limekiln. We cannot exactly say who really invented modern cement. Tamaz Gabadadze, chief of chair of silicate technologies speaks to us:
“Egor Chelidze described construction of Moscow that was ruined after battle with Napoleon. In 1815-1825, he invented technology of making cement. He intended to use this cement for building Moscow. At about the same time in 1824 a certain Englishman Aspdin has also obtained a license for Portland cement. (“Portland” is an island not far from England. The cement resembled its groundcolour and was called after its name). Yet, no one argues who invented cement first. The main thing is that many countries started to produce it. Deposits of raw materials for its production in Georgia are so great that will last for a long time. In 1997, we approached the Ministry of industry with the request to build a cement-making factory by using a new, dry method in Terjola (Adjameti). A year later the President supported this idea by his decree. Yet, in reality nothing has been done. It is a unique region with raw materials and fuels (Tkibuli coal). Besides, our specialist worked on the production of new types of cement. They are the following: waterproof, ultraspeed, expandable and other cements. “Speccement” ltd was put into operation. It produces this cement though population does not know much about this sort. Those who know this cement buy it.
It would be interesting to hear the comments of JSC “Rustavcement” on a number of issues that are of interest to us, f.e., : what is the main problem of the factory; what volume of cement can get into market; what they think about cement mills that provoke a competition (mills work on clinker that is a semi-manufactured product made from limestone processing). However, chairman of board of directors David Salkaia refused to answer these questions.
Rustavi cement factory was put into operation in 1956. At first 308 thousand tons of clinker were crunched in it. It produced 616 tons of cement. In 1964 third technological line was launched and two ovens were reconstructed in 1970. Last reorganization was performed in 1986. In short, it produces more cement now than before. The number of factory workers exceeds 580 people. According to the data of minerals protection department, there are 4-5 factories in the republic. Many cement-making workshops have lately been put into operation. They do not have a main technological line of big factories – crunching of limestone on clinker – so they have to buy clinker from bigger factories. Many people would probably agree to the assertion that some mills are not of good quality and therefore, harm the reputation of big factories. However, this does not concern all small enterprises. Quantity is not proportionate to quality. Two main producers – Rustavi and Caspi own two main technologies: production of limestone (raw materials for cement that is extracted in 2-3 deposits) and clinker (semi-manufactured product made from limestone). The two factories have functioned since 40-th and managed to maintain monopoly due to technical equipment and production volume. It is impossible to clear out their legality ( or semi-legality) (the author of the article did not have this purpose).
Bichiko Barbakadze, specialist of “Azimut” ltd construction materials laboratory speaks to us.
“I would not call the present-day construction a boom. Beautiful and attractive houses are built in four years’ time. Construction is in operation, but still there is no guarantee of a necessary amount of workplaces. Similar to objects for producing other construction materials, cement-making workshops will not be able to provide employment for more workers than necessary. They need approximately one or two dozens of men. Besides, raw materials are very expensive. We are now planning to import clinker from Armenia… Why from Armenia? We buy 35 GEL per ton here, but we have to pay 40 GEL per ton for importing it from Armenia. The thing is that big factories are often reluctant to sell us clinker… They are not concerned with the question of having many workshops for processing clinker into cement. We should note that demand for cement is gradually increasing”.
Naturally enough, crunching of clinker and sale of cement contradicts the interests of big factories. There has lately been an increase in the demand for cement, but the fact is that offer of cement exceeds its demand.
Michael Datikashvili, founder of cement-making workshop in Kavtiskhevi (not far from limestone deposits) speaks to us.
“Growth of building volume is observed, but competition gets tough, too… Generally speaking, competition has always existed and it will always exist in other branches. Our factory started functioning due to local investments. Though, compared with the Rustavi gigantic factory, ours is a very small one. We produce and sell clinker, but we do not yet produce cement. Nowadays, there are many cement- making workshops. Some of them process good clinker, others process bad one. In some cases, small shops harm the reputation of large ones by using their logo. A consumer cannot understand whether he buys a 400 vintage cement or not. After importing clinker from Armenia, prices of cement will jump. Theoretically, there are enough raw materials for cement in Georgia, but consumers cannot always afford it. It is a power-consuming industry. 60% of cost price falls at the share of the production. New tariff had a negative effect on the production, too. If it were lower, construction materials would be cheaper and would have real demand. It would be a real boom then… We paid taxes (about 2000) and found out that there was in reality no net profit”.
Our interests are not, probably, confined to this only. In 1998, chief of the chair of construction materials in Technical University Anzor Nadiradze obtained a license for the production of new brand cement. A crowd of students at the former State polytechnic institute gives the society an impression of idlers, but there are educated and gifted students among them, too. They defended 8 dissertations on construction under the leadership of Nadiradze. We should mention the dissertation of Nana Razmadze “Production of plasticized ingredients and their use in the production of ferroconcrete” that concerned this very cement. A superplasticizer (invented in Japan) was used in all kinds of cements. It has lately been produced in Russia, Byelorussia, Azerbaijan, Europe, etc. The small quantity of this matter is added to the cement, which saves cement and energy resources for its production and improves exploitation qualities. In short, on Nadiradze’s initiative it was decided (before the disorders in the country) to produce this superplasticizer in “Azote” from the refuse of coal tar. Its production would be much cheaper and there would be no need to purchase foreign “super” for Georgian construction. This plan was not implemented. Today, Nadiradze (as well as the above-mentioned Gabadadze) try to make private persons and offices interested in his invention via Internet.
Some say that there is there exists the probability of smuggling cement from Ukraine and Russia. The press-centre of special legion says that it has heard nothing of this smuggling. Perhaps, there is no smuggling at all. What should the price of imported cement be for it to stand the competition of local production.
As for the data of statistic department, they give grounds for optimism. Since 1994 the quantity of exported cement grows. For example, 491 tons were exported in 1995, 569 tons in 1996, 3440 tons in 1997 -and more than 22 100 tons in 2001. The quantity of imported cement decreases. The great import in 1997 has decreased in the subsequent years: in 2000, 23 533 8 were imported, up from 85 354 tons in 1998 and 46 475 tons in 1990.
By 2000, the volume of export and import of cement equaled. Import is forecast to decrease in the subsequent years. As for the total production of cement in the republic, least of all it was produced in 1995 – 59 000 tons. There were not many cement mills at that time. In subsequent years the production volume has intensely been growing and made up 335,2 thousand tons by 2001. In other words, the volume of export was 130 times lower in 1995-1996 than cement produced in the republic, whereas in 2001 it was only 15 times lower! We cannot but greet such growth of export that will increase the number of workplaces in the republic as well as budget revenues. “Brick, water, cement!” Some say old brick (we mean flat) was the best one. Yet, this is not the topic of dispute. There are more than 50 deposits of red clay in Georgia. Those who could afford it started to build brickyards. We will see whether it was successful or problematic.
Before revolution hand-made hearth (device buried in earth and designed for burning bricks) was built in Georgian villages. This habit was preserved till 70 years. Many people built their houses of bricks that were burned in their own hearth.
Later on, silicate (white) and apyrous brick was produced along with the red one. We speak to Dato Paichadze: “In 1998 Zestaphoni factory producing apyrous brick was put up for an auction. He purchased premises with morally outdated equipment and made plans about production of bricks): ” Apyrous bricks are used in metallurgy. When we took this factory, we started to repair equipment. When everything was prepared, we found apyrous clay in Zestaphoni. We made research and found out that it met all requirements necessary for raw materials ( it can be used as raw materials for A class brick). We imported technics and opened pits. Before extracting several tons of clay, we started practical processing and spent a great amount of money (planned and unplanned). In some places we had to dig as deep as 25-30 meters. Meanwhile the customers: Metallurgic factory, Kutaisi engineering factory, Caspian cement-making workshop stopped their work. In short, demand for our brick has decreased. The main problem we had to face was tax system and market or to be more exact – non-protection. Prices on our production increased much because of high taxes (we mean also energy resources: electricity and gas) so that no one could afford to buy it. .. Today, we try to make someone interested and negotiate with foreign firms -mediators about connecting us with customers. Brick production will not come out of dead end until tax burden becomes easier and energy tariff decreases (optimal price is 8 tetris for 1 kilowatt).
In the beginning of the 19th century a certain Schulz arrived in Zestaphoni from Germany. He employed workers and they dug clay nearly with hands. They carted the clay to Dziruli and then sent it to Germany. The Georgians do not like the idea of selling raw materials now. It is more profitable for them now to trade in ready-made production, but it became difficult for us to produce it. So, we are looking for new ways”.
Producers of apyrous brick have more problems than producers of simple brick. They do not need foreign mediators. They, mainly, use red brick for building dwelling houses and hotels. Nowadays, there are several dozens of brickyards.
It goes without saying that such mobile workshops provide many people with employment. Many families can earn their living there. Illegality also implies illegal (or half legal) energy consumption. We can not blame “AES TELAS” only. The company complains that it does not receive money for consumed energy from defaulters. Yet, workshops need more electric power than population. (The latest tariff increase must have resulted from the attempt of “AES TELAS” to make restitutions).
According to Paichadze, factories have lately required apyrous brick. They take them from tumbledown walls, crunch them and make “new” bricks that, certainly, can not even be compared with apyrous bricks. Yet, no one pays any attention to it. All this happens because of difficult social situation.
Tumbledown walls were not left unreclaimed. They are pulled down. Blocks are built from the debris of old bricks and from purnice.
Population pulled down these buildings and surrendered them. The bricks were crunched and new bricks were produced.
In Samtredia two brick and block making factories functioned. They produced 700 thousand bricks per year and gave employment to 50 people. These factories received orders from Sukhumi, Gagra, Tskhakaia, Racha and other regions… In years of devastation the first thing to be robbed were engines. Afterwards other equipment was stolen. Russia and other countries that do not have great deposits of clay started to produce silicate brick. It is also produced in Tbilisi (in Avchala). It is made of limestone and sand under the great pressure of water-steam. It is, mainly, used for the construction of production objects. As these objects do not function here, no one takes orientationon the production of silicate bricks. I met a lot people when I collected materials for the article. Theorists and practitioners said one and the same: Georgia is rich in great water and power potential; it has great and small hydroelectric power stations. Owners of small and large water power plants get bankrupt and cannot give employment to population. What is the reason? The reason is that for many years water power plants were left neglected: conversion to the Russian gas and energy power (and the rise in prices resulting from it) has caused a chain reaction. Prices on manufacturing cycle and on consumer expenses increased. The market is not enough even for local building production not to mention imported one. It is supposed that there was an economic crisis during the “perestroika” period in developed industrial countries. The level of living standard of population in America, Europe did not deteriorate, we do not face a demographic problem…Mechanic control over natality in China i.e. prohibition of second child birth (the law does not concern girls) is viewed as violation of human rights in western countries. Does this mean that other people’s rights must be violated or limited (?). There are no other models in nature. The following will happen: in the country with rich hydropower resources price for 1 kWh reached the world level (in America price per 1 kWh is 12 Tetris, in China the price is 16, etc). If our hydroelectric power stations were in full operation, price for 1 kWh would equal 3-4 Tetris. This is the very “probability” that many energy sector employees agree to.