The two Presidents "expressed satisfaction over successful development of bilateral relations" and noted importance of further deepening ties, the Azerbaijani president's office said in a press release.

"One of the main reasons why I am always glad to meet our brother Ilham is that issues are being solved promptly and efficiently," President Saakashvili said after the meeting, adding that relationship between Georgia and Azerbaijan was an example other countries should follow.

He said that an agreement had been reached to construct in Georgia a large factory for urea production, which is mainly used in agriculture sector as fertilizer and an animal feed additive. Saakashvili said that the factory would be built between Black Sea port of Poti and Kulevi.

Saakashvili also said that the two countries also agreed to set up "a joint electricity company, which will jointly produce electricity and export it to third countries, which means investment of Azerbaijani money in construction of hydro power plants in Georgia."

Aliyev hosted Saakashvili at Heidar Alieyev's Museum. Georgia's President is scheduled to deliver a speech in the parliament of Azerbaijan later this afternoon.

In Azerbaijan Georgian President is accompanied by ministers of energy, infrastructure development, economy, culture, as well as minister of sport.