3
GOVERNING FOR GROWTH (G4G) IN GEORGIA QUARTERLY REPORT APRIL 01, 2015 – JUNE 30, 2015
15 July 2015 This report was produced by Deloitte Consulting LLP for review by the United States Agency for International Development. Its contents are the sole responsibility of Deloitte Consulting LLP and do not necessarily reflect the views of USAID or the United States Government.
GOVERNING FOR GROWTH (G4G) IN GEORGIA QUARTERLY REPORT APRIL 01, 2015 – JUNE 30, 2015
USAID GOVERNING FOR GROWTH IN GEORGIA CONTRACT NUMBER: AID-114-C-14-00004 DELOITTE CONSULTING LLP USAID | CAUCASUS
15 JULY 2015
DISCLAIMER: This report is made possible by the support of the American People through the United States Agency for International Development (USAID). The contents of this report are the sole responsibility of Deloitte Consulting LLP and do not necessarily reflect the views of USAID or the United States Government.
ACRONYMS
Acronym Definition/Description AA Association Agreement ADB Asian Development Bank ADR Alternative Dispute Resolution ACCESS Advancing CSO Capacities and Engaging Society for Sustainability AmCham American Chamber of Commerce AEO Authorized Economic Operator BAG Business Association of Georgia CENN Caucasus Environmental NGO Network CIPE Center for International Private Enterprise CSO Civil Society Organization CCC Culture of Collaborative Consultations CzDA Czech Development Agency CPWG Capital Markets Working Group DAP Day Ahead Planning DEA Data Exchange Agency DCFTA Deep and Comprehensive Free Trade Area DSO Distribution System Operator EBRD European Bank for Reconstruction and Development EDA Enterprise Development Agency EC European Commission EC-LEDS Enhancing Capacity for Low Emission Development Strategies ENVSEC Environment and Security Initiative EPAC Economic Policy Advocacy Coalition EPRC Economic Policy Research Center EPI Economic Prosperity Initiative ETM Electricity Trading Mechanism EU European Union GA Georgian Amelioration GEA Georgian Employers Association GEMM Georgian Electricity Market Model Geostat National Statistics Office of Georgia GFA Georgian Farmers Associations GIA Georgian Insurance Association GIG Energy Georgian Investment Group GIZ German Society for International Cooperation GSMEA Georgian Small and Medium Entrepreneurship Association GSE Georgian State Electrosystem GSE Georgian Stock Exchange GCCI Georgian Chamber of Commerce and Industry GITA Georgian Innovation and Technology Agency GoG Government of Georgia JILEP Judicial Independence and Legal Empowerment Project HEPA Hazelnut Exporters and Producers Association HIPP Hydropower Investment Promotion Project HPEP Hydro Power and Energy Planning Project HPP Hydro Power Plant ICC International Chamber of Commerce ICT Information and Communications Technology
USAID | Governing for Growth (G4G) in Georgia Quarterly Report i April 01 – June 30, 2015
Acronym Definition/Description IDFI Institute for Development of Freedom of Information INRMW Integrated Natural Resources Management in Watersheds ISET International School of Economics at Tbilisi State University IWRM Integrated Water Resources Management OSCE Organization for Security and Cooperation in Europe MARKAL Numerical model for country-wide economic analysis of energy-related systems MENRP Ministry of Environmental and Natural Resources Protection MoA Ministry of Agriculture MoESD Ministry of Economy and Sustainable Development MoF Ministry of Finance MoJ Ministry of Justice M-TAG Media for Transparent and Accountable Governance NAPR National Agency for Public Registry NARUC National Association of Regulatory Utility Commissioners NGO Non-governmental Organization PM Prime Minister PMCG Policy and Management Consulting Group PMP Performance Monitoring Plan PPD Public-Private Dialogue PR Public Relations PSDA Public Service Development Agency REC Regional Environmental Center for Caucasus RFA Request for Applications RS Revenue Service RPTS Reform Progress Tracking System RIA Regulatory Impact Assessment SME Small and Medium Enterprise SoW Scope of Work TFS Trade Facilitation System ToR Terms of Reference TYNDP Ten Year Network Development Plan UNDP United Nations Development Program USDA United States Department of Agriculture USAID United States Agency for International Development USG United States Government VAT Value Added Tax VOLL Value of Loss Load WB World Bank WG Working Group WP Work Plan
USAID | Governing for Growth (G4G) in Georgia Quarterly Report ii April 01 – June 30, 2015
CONTENTS
1.0 INTRODUCTION ...... 6
2.0 SUMMARY ...... 6
3.0 PROJECT HIGHLIGHTS DURING THE REPORTING QUARTER ...... 8
4.0 MANAGEMENT & OPERATIONS ...... 12 4.1 Work Planning ...... 12 4.2 Knowledge Management And Communication ...... 12 4.3 Procurement & Grants ...... 12 4.4 G4G Performance Monitoring plan ...... 12 4.5 Gender Equality ...... 13 4.6 Youth Skill Development And Civil Participation ...... 13 4.7 Environmental Evaluation ...... 13
5.0 PROGRESS OF ACTIVITIES BY REFORM ...... 13 5.1 INSTITUTIONALIZED FRAMEWORK FOR PUBLIC CONSULTATION ...... 13 5.1.1 Progress Against The Work Plan ...... 13 5.1.2 PPD Successes And Lessons Learned ...... 17 5.1.3 Challenges To Achieving Reform Results ...... 17 5.2 ENERGY STRATEGY REFORM ...... 18 5.2.1 Progress Against The Work Plan ...... 18 5.2.2 PPD Successes And Lessons Learned ...... 18 5.2.3 Challenges To Achieving Reform Results ...... 18 5.3 ELECTRICITY TRADING MECHANISM REFORM ...... 18 5.3.1 Progress Against The Work Plan ...... 18 5.3.2 Promotion of Energy Sector Associations ...... 20 5.3.3 PPD Successes And Lessons Learned ...... 20 5.3.4 Challenges To Achieving Reform Results ...... 20 5.4 WATER RESOURCE MANAGEMENT REFORM ...... 21 5.4.1 Progress Against The Work Plan ...... 21 5.4.2 PPD Successes And Lessons Learned ...... 23 5.4.3 Challenges To Achieving Reform Results ...... 24 5.5 TAX ENFORCEMENT AND ADMINISTRATION REFORM ...... 24 5.5.1 Progress Against The Work Plan ...... 24 5.5.2 PPD Successes And Lessons Learned ...... 26 5.5.3 Challenges To Achieving Reform Results ...... 26 5.6 CUSTOMS ADMINISTRATION AND ENFORCEMENT REFORM ...... 26 5.6.1 Progress Against The Work Plan ...... 26 5.6.2 PPD Successes And Lessons Learned ...... 27
USAID | Governing for Growth (G4G) in Georgia Quarterly Report iii April 01 – June 30, 2015
5.6.3 Challenges To Achieving Reform Results ...... 27 5.7 TRADE FACILITATION/TRANSPORT AND LOGISTICS REFORM ...... 27 5.7.1 Progress Against The Work Plan ...... 27 5.7.2 PPD Successes And Lessons Learned ...... 28 5.7.3 Challenges To Achieving Reform Results ...... 28 5.8 BANKRUPTCY AND LIQUIDATION REFORM ...... 29 5.8.1 Progress Against The Work Plan ...... 29 5.8.2 PPD Successes And Lessons Learned ...... 29 5.8.3 Challenges To Achieving Reform Results ...... 29 5.9 LAND OWNERSHIP REGISTRATION REFORM ...... 30 5.9.1 pProgress Against The Work Plan ...... 30 5.9.2 PPD Successes And Lessons Learned ...... 30 5.9.3 Challenges To Achieving Reform Results ...... 30 5.10 PENSION REFORM ...... 31 5.10.1 Progress Against The Work Plan ...... 31 5.10.2 PPD Successes And Lessons Learned ...... 31 5.10.3 Challenges To Achieving Reform Results ...... 31 5.11 CAPITAL MARKET REFORM ...... 31 5.11.1 Progress Against The Work Plan ...... 31 5.11.2 PPD Successes And Lessons Learned ...... 32 5.11.3 Challenges To Achieving Reform Results ...... 32 5.12 CROP INSURANCE REFORM ...... 32 5.12.1 Progress Against The Work Plan ...... 32 5.12.2 PPD Successes And Lessons Learned ...... 32 5.12.3 Challenges To Achieving Reform Results ...... 32 5.13 INNOVATION AND TECHNOLOGY POLICY ...... 32 5.13.1 Progress Against The Work Plan ...... 32 5.13.2 PPD Successes And Lessons Learned ...... 33 5.13.3 Challenges To Achieving Reform Results ...... 33
6.0 WORK PLAN OUTPUT TABLE ...... 34
ANNEX 1: PMP INDICATORS QUARTERLY RESULTS ...... 50
ANNEX 2: DONOR COORDINATION MATRIX ...... 63
ANNEX 3: UTILIZATION OF USG PERSONNEL AND COLLABORATION WITH OTHER DONOR-FUNDED PROJECTS ...... 67 Collaboration with Other USG Personnel ...... 67 G4G and USAID facilitated a meeting for the deputy minister of MoESD Mikheil Janelidze with ITACs (a US Department of Treasury Special Trade Advisory Council) to discuss a permanent platform for public-private dialogue on trade issues...... 67 Collaboration with Other USAID Projects ...... 67
USAID | Governing for Growth (G4G) in Georgia Quarterly Report iv April 01 – June 30, 2015
Collaboration with Other Donor-Funded Projects ...... 67
ANNEX 4: UTILIZATION OF INTERNS ...... 69
ANNEX 5: G4G ADVISORS UTILIZED IN GOG INSTITUTIONS ...... 69
ANNEX 6: UTILIZATION OF PRIVATE SECTOR AND CIVIL SOCIETY ORGANIZATIONS ...... 70
ANNEX 7: SUMMARY OF GRANT ACTIVITIES ...... 73
ANNEX 8: GANTT CHARTS ...... 74
ANNEX 9: G4G ORGANIZATIONAL CHART ...... 89
USAID | Governing for Growth (G4G) in Georgia Quarterly Report v April 01 – June 30, 2015
1.0 INTRODUCTION Governing for Growth (G4G) in Georgia is USAID’s five-year $19.3 million US dollar project designed to support the Government of Georgia (GoG) to create an improved enabling environment in which legal and regulatory reforms are fairly and transparently conceived, implemented and enforced through consultative dialogue. G4G aims to enhance governance in select business enabling areas: Tax and customs administration; Electricity trading policy, including cross-border trading; Water resource management; Trade facilitation; Land registration; Other reform areas as identified during implementation of the Project. The G4G approach is through the promotion of constructive Public-Private Dialogue (PPD), to support the effective formulation of the government policies necessary to drive economic development. This requires strengthening of the governmental institutional capacity to develop, implement, and enforce reforms, and strengthening the capacity of private sector and civil society actors to effectively engage the government on the development, implementation, and enforcement of reforms. G4G is implemented through five main components: 1. Support inclusive public-private dialogue; 2. Strengthen GoG capacity to develop, implement and enforce reforms; 3. Improve water resource management across multiple competing interests; 4. Improve governance of energy trading policy, including cross-border electricity trading; 5. Strengthen the capacity of private sector and civil society actors to advocate for reforms. Reflective of G4G’s approach and the cross-cutting nature of Components 1, 2, and 5, this Quarterly Report is organized according to the format of the work plan which is presented by specific substantive area of reform. Within each reform, activities are organized by component. This structure permits a view of activities focused on a given reform area, seen in the context of a project-wide effort. 2.0 SUMMARY During the reporting period a number of milestones were reached, including the government setting a firm Trade Facilitation System (TFS) launch date, the establishment of five potentially permanent PPD platforms, and the Parliament approving a new Energy Policy. G4G issued three technical deliverables during this quarter: Recommendations of Value Added Tax (VAT) Directives Approximation to EU Directives; Georgian Capital Markets Study and Recommendations; Assessment of the Insolvency System in Georgia.
After USAID’s approval, the above reports were presented to Georgian stakeholders and, through Google Sites, G4G Public Files was created and made available to ten major universities of Georgia for their students’ and faculty’s use (https://sites.google.com/a/g4g.ge/g4gpublicfiles/). The files are available to any individual and are publicly searchable. At the close of the 3rd quarter G4G has: Leveraged approximately $12,000 in cost-share; Hosted 18 PPD events with over 600 attendees; Conducted 11 trainings with over 500 participants; Issued 19 event releases; Outreach covered over 40 other donor-funded projects; Issued six grants in the amount of $155,112.50 with a cost share of $22,152.50, with five more grants in the selection process at this time.
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 6 April 01 – June 30, 2015
The Energy and Water Team leadership transitioned with Jake Delphia moving to part-time status and Giorgi Chikovani taking lead of the team. G4G hired two new grant management professionals, Nato Ardishvili as Grants Manager and Giorgi Jobava as Grants Regional Coordinator. Michael Martley was hired as the Communications Team Lead. Due to the flood disaster in Tbilisi on June 13, 2015, some of the planned PPD events were postponed. Some of our G4G staff members participated in disaster assistance. G4G started consultations with its counterparts for next year’s activities. The following section shows our highlighted results in more detail.
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 7 April 01 – June 30, 2015
3.0 PROJECT HIGHLIGHTS DURING THE REPORTING QUARTER Five Permanent PPD Platforms. G4G broke ground for five potentially permanent PPD platforms including:
Business Alliance Coalition - G4G facilitated the formation of the Economic Policy Advocacy Coalition (EPAC), formed by more than twenty leading Georgian business associations at a three- day workshop on advocacy effectiveness in May 2015.
Permanent Platform on Trade Issues - G4G provides technical assistance for the establishment of a permanent platform for PPD on trade issues in coordination with the Ministry of Economy and Sustainable Development (MoESD).
Investors Council - G4G will provide technical support to the planned European Bank for Reconstruction and Development (EBRD)-led Investors Council which is expected to be a permanent platform for high-level government dialogue with the business community.
Business and Economic Centre (BEC) - G4G plans to partner with BEC to enhance their engagement with parliamentarians on key reform issues, including: land registration, energy policy and strategy, water resource management, and capital markets development.
Journalists Dialogue - G4G conducts dialog sessions on key reform issues with leading journalists to enhance the quality of reporting on economic reform issues, bringing industry experts and key officials in an informal setting to facilitate open discussion.
Energy Policy Approved. The G4G energy team continued to reap significant results from multiple efforts commenced by USAID Hydro Power and Energy Planning (HPEP) and recently G4G. On 24 June, 2015, the Parliament of Georgia approved a new energy policy. It states: “Competitive market activities represent the most effective instrument for optimization of supply and demand for natural gas and electricity, which can be achieved through competitive market conditions.” This indicates strong commitment to establishment of the ETM, which is at the core of G4G Energy work. VAT approximation Action Plan Set. G4G completed efforts on the approximation of Georgian VAT rules with EU VAT Regulation. The final report was presented at a working group meeting at the Ministry of Finance (MoF). The working group consisted of middle-level tax policy experts from the MoF, Revenue Service (RS) as well as the EU Twinning Project “Strengthening Administrative Capacity of the Georgian Revenue Service in Taxation” and G4G. According to the Association Agreement (AA), the GoG has 5 years for the approximation of VAT legislation. The report provided by G4G will help the MoF to plan the VAT drafting process, which is an important legislative step in Georgia’s EU accession process. Associations form Economy Policy Advocacy Coalition (EPAC). On May 21, G4G conducted a three-day workshop for Georgian business associations to enhance advocacy effectiveness through coalition building. The workshop was intensive in dialogue, opening avenues for opportunity, and resulted in the establishment of a new advocacy coalition. The workshop covered the challenges faced in cooperation with the government and identified areas of common interests among the associations through discussion. Areas agreed upon for work included tax audits, access to finance, land registration and alternative dispute resolution. Carmen Stanila and Maya Eristavi of G4G at the Coalition Building Workshop
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 8 April 01 – June 30, 2015
TFS Launch Date Set by Minister. The Minister of Justice and Stakeholders committed to a September 2015 launch of the Trade Facilitation System. G4G facilitated the fifth TFS Steering Committee Meeting which set the timeline for implementing the TFS. The meeting was led by the Minister of Justice, Tea Tsulikiani. USAID Mission Director, Stephen Haykin, highlighted the importance of the TFS implementation and sensitivity of the tariff policy's potential impact on the competitiveness of Georgia as a transit corridor. Stephen Haykin and Milo Stevanovich with Minister of Justice Tea Tsulkiani Insolvency system scrutinized. On May 8, G4G and the Ministry of Justice held a public-private dialogue session to discuss the findings of an analysis of the Georgian insolvency system. G4G Senior Insolvency Advisor, Robert Gourley, and G4G Chief of Party, Milo Stevanovich, conducted an evaluation of the Georgian insolvency system, covering both its legal framework and current practice. Deputy Minister of Justice, Mikheil Sarjveladze, discussed the policy with representatives of the National Bureau of Enforcement (NBE), a key implementing body. He stated plans to establish a working group and expects amendments to be submitted to parliament within the current year. G4G produced the report Assessment of the Insolvency System in Georgia which Deputy Minister of Justice, Mikheil Sarjveladze discusses was approved by USAID July 6, 2015. moving forward Government discussed water management. Two town hall meetings, sponsored by G4G, were held in June in Dusheti and Mtskheta, both beneficiaries of the Aragvi River Basin. Due to its proximity to Tbilisi and competing interests, the basin was selected for developing a pilot water allocation plan framework. Over seventy members from the public and private sector took part in the discussions. G4G presented the findings of its Initial Water Assessment Report, discussed EU Association Agreement requirements regarding water resources, the new draft water law, and Above: Paata Dvaladze, MENRP representative and G4G Experts: Marika Bakhtadze, Elene Ghubianuri, encouraged the meeting attendees to cooperate on the development Jake Delphia at Mtskheta town-hall meeting of a viable action plan for water resource management. Private entrepreneurs were very active and concerned by mismanagement of water resources and lack of disaster mitigation measures.
Georgian Innovation and Technology Agency (GITA) discussed development and policy. On April 7, G4G and GITA held a coordination meeting to discuss Innovation and Technology Development Policy in Georgia. Public sector representatives, CSO’s, and universities met at the National Parliamentary Library of Georgia and discussed innovation policy issues and potential areas of coordination, expressing readiness to cooperate with GITA on development of Innovation and Technology Policy and Infrastructure. Attendees of the GITA meeting
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 9 April 01 – June 30, 2015
Three media capacity building activities were conducted during the quarter:
Coffee and Conversation Session 1. April 4-5, PMCG Director Aleksi Aleksishvili spoke with journalists about the perspectives of Economic Journalism. G4G experts presented and discussed with media the project’s reform areas such as, Land Registration Pilot Project, Crop Insurance, and the Electricity Trading Mechanism. The meeting was followed by producing articles and TV reports based on the session’s presentations and interviews with G4G staff members (Milo Stevanovich, Giorgi Chikovani, Ilia Gogichaishvili). Georgian media representatives, Nana Khidashel, IPN and Giorgi Kaladadze, Palitra TV Coffee and Conversation Session 2. May 2, G4G conducted an information session for 10 media professionals from economic media outlets. G4G invited Irakli Gvenetadze, the Head of Data Exchange Agency (DEA), who presented TFS and its current status. Journalists raised questions about benefits and annual estimated savings related to TFS streamlined procedures. Aleksi Aleksishvili of PMCG, and former Minister of Finance, also spoke of the positive and negative effects of the GEL devaluation. Hydropower Site Visit. May 30-31, G4G and the MoE travelled to Kazbegi with twenty journalists from leading Georgian media companies providing a first-hand look at the development of hydropower energy. The journalists observed the development of the Dariali hydropower plant 500m deep inside a mountain, saw round the water intake structure which diverts the water flow into the powerhouse of the plant where turbines generate electricity. At the de-brief session, Deputy Minister of Energy, Ilia Eloshvili, discussed the energy investment climate in Georgia. He highlighted the importance of communicating the realities of energy sector development to the public. Journalists posed questions to Mr. Eloshvili for an extended dialogue. The informal format created a unique “open Deputy Minister of Energy atmosphere” for the exchange of opinions on issues of public support for energy llia Eloshvili sector reforms. G4G conducted five events to inspire and develop youth: International Black Sea University (IBSU) Presentation. April 23, G4G in partnership with the International Black Sea University, organized a meeting for students to introduce the G4G Internship Program. 50 students from a variety of faculties participated in the event. G4G Deputy Chief of Party, Natalia Beruashili presented the G4G project and discussed internship opportunities. G4G is planning to conduct further meetings with other universities for the project’s duration. Georgian Technical University (GTU) Energy Conference. April 29, G4G together with GTU, held the “Youth Integration in Electricity Trading Mechanism Development” conference at the University Conference Hall. Vice-Prime Minister and Minister of Energy of Georgia, Kakha Kaladze, gave a welcoming speech stimulating students to consider careers in the energy sector as youth talent and enthusiasm are vital for its development. He emphasized USAID assistance to Georgia particularly towards ensuring energy security and developing an electricity trading mechanism to enable Georgia in trading its clean energy across the borders Minister of Energy Kakha Kaladze Setting the Path for Success for Young Women. May 7, G4G in collaboration with the Academy of the Ministry of Finance conducted a seminar, “Setting the Path for Success.” The seminar was held to provide perspective and role models for young women for their future. Successful women from various professional backgrounds shared their knowledge and experience. Speakers included: Tamar Japaridze, Director of the Academy of the Ministry of Finance, Nato Beruashvili, Deputy Chief of Party at G4G, Ana Mikadze – Chikvaidze, Chairwoman of Georgian Cheese Producers Union, Manana Manjgaladze, Georgian Industrial Group, Head of the Public Relations Department, and Marina Kurtanidze, “Mandili” wine company founder.
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 10 April 01 – June 30, 2015
Youth Entrepreneurship. May 29, G4G and the Academy of the Ministry of Finance conducted a seminar for students to learn the key aspects of starting up and managing a business. Students from a variety of universities attended to hear from three professionals in the areas of starting business, maintaining business, and insolvency. Misha Chkuaseli, founder and owner of Gurieli Company, described the challenges he experienced in starting up and maintaining his company. Business Consultant, George Eminashvili, presented 10 keys to success for running a business. Milo Stevanovich described international insolvency practices, business rescue options, and advice on how to manage the process. Career Skills Workshop. 19 June, G4G and the youth organization AIESEC held a joint seminar on personal and professional skills for career development for students in Adjara. Sessions were conducted by AIESEC leadership, General Manager of the Hilton Hotel, Batumi Stuart Nelson who discussed the challenges of management and personal outlook, techniques for management he has utilized for success. Michael Martley, G4G Communications Lead, provided an overview on resume writing, motivation letters, interview skills, and career planning.
Forty-one students from Batumi Shota Rustaveli State University and AIESEC attended the event; many of them requested follow up information for reference. Stuart Nelson, GM of Hilton Batumi
American Chamber of Commerce (AMCHAM) in Georgia welcomes G4G. On June 10, G4G was given the opportunity to present a project overview to members of the private sector and diplomatic corps of Georgia. The audience members posed many detailed questions including funding, outlook, and goals and exact results. G4G is currently exploring increased cooperation opportunities with AmCham. Nicholas Berliner, US Embassy, Sarah Williamson, President of AmCham and Milo Stevanovich, G4G Chief of Party
G4G Staff supports disaster relief. During the flood in June, Georgian citizens rose to the occasion of helping each other in a time of need. G4G staff members, on their own initiative, also contributed to the cause within their capacity. We greatly appreciate our staff’s contributions.
Zaza Chelidze Eka Hippopotamus escaped from Image of damage Chitchinadze Tbilisi Zoo
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 11 April 01 – June 30, 2015
4.0 MANAGEMENT & OPERATIONS 4.1 WORK PLANNING G4G uses the quarterly report to add or revise upcoming activities during Year 1. These adjustments will be made in consultation with USAID during scheduled meetings, and new (or cancelled) activities will be added to the work plan in each G4G Quarterly Report. 4.2 KNOWLEDGE MANAGEMENT AND COMMUNICATION Over the past quarter, G4G continued to implement activities outlined in its Knowledge Management (KM) Plan, including regular weekly reports to USAID, press releases to engage the media in G4G’s activities; the project continues developing success stories, and issued the second quarterly newsletter that reached all project constituents (180 contact persons). G4G continues to regularly update the project's Facebook page, primarily focused on outreach, and engagement with project constituents, journalists and youth. Table 1: Year 4 Outputs, Communication
OUTPUTS STATUS Weekly, quarterly and annual reporting In progress Quarterly newsletters issued In progress Press releases developed and issued In progress Case studies and success stories In progress Event briefing reports (Event memos) In progress USAID DEC report submission of approved deliverables on In progress weekly basis Use of social media tool (Facebook) In progress Google web site: G4G Public Files was created and Project reports and studies were shared with ten major universities to In progress make available for their students and scholars. New reports continue to be added for public viewing. 4.3 PROCUREMENT & GRANTS After approving the G4G Grants Manual in February 2015, G4G started to develop SoWs and RFAs for upcoming grants projects to implement in Year 1. In this reporting period G4G managed to announce RFAs, evaluate, identify organizations and start implementation of 7 grant projects; additionally G4G Technical Evaluation Committee members are in the process of selecting applicants for 4 grant projects planned to start by mid-July. Four additional RFAs are announced and G4G is expecting applications by mid-July. The summary of grant activities is provided in this quarterly report (see Annex 7). G4G has allocated additional relevant resources to manage grant procedures in compliance with USAID rules and regulations and administer them in a fair and transparent manner, including two new hires. As part of its procurements, Deloitte secures financial and programmatic buy-in from stakeholders and counterparts to leverage its funds and ensure beneficiaries have a stake in achieving results. To date, $5,037 USD of Project procurement have been allocated toward events and other activities, and generated an additional $12,530 USD in contributions by Project stakeholders and beneficiaries. 4.4 G4G PERFORMANCE MONITORING PLAN G4G is submitting required GIS compatible information about the project activities to USAID along with the quarterly reports. The project will fill out the “Project General and Activity Data Template” and submit to the USAID/Caucasus Program Office in the next reporting period.
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 12 April 01 – June 30, 2015
Table 2: Year 1 Outputs, Performance Monitoring Plan
OUTPUTS STATUS
Semi-annual GIS Reporting In progress
Semi-annual PMP Reporting In progress
4.5 GENDER EQUALITY G4G issued the women’s empowerment grant which will build capacity of women leaders to effectively participate in economic governance and national PPD. In addition, G4G in cooperation with the Academy of the Ministry of Finance, conducted a session “Setting a Path for Success” for female students from Tbilisi State University and Caucasus University (See section 5.1.1). 4.6 YOUTH SKILL DEVELOPMENT AND CIVIL PARTICIPATION G4G mobilized its internal internship program for university students to build their professional skills and capacity to participate in G4G supported reform processes, including policy reform formulation, advocacy and public-private dialogue. During the reporting period, G4G issued a RFA for a youth governance program to build students’ capacity to effectively advocate for future reforms. In addition, G4G conducted several open lectures in Tbilisi and Batumi for the young community (see section 5.1.1). 4.7 ENVIRONMENTAL EVALUATION The environmental threshold finding for the G4G program (the Initial Environmental Examination [IEE]1, DCN: 2013-GEO-053) evaluates current and future activities under the G4G program and states that the proposed interventions of the G4G program will not have significant adverse environmental and social impacts. Hence, the G4G program received Categorical Exclusion Determination according to approved IEE. No activities with significant negative environmental and social impact were implemented during this rating period. In order to identify potential adverse environmental effects associated with planned activity(s) and processes, G4G developed the Threshold Environmental Checklist and Review (TECR) template and agreed on it with USAID. The TECR was developed for all activities being implemented by G4G and attached to the final deliverables.
5.0 PROGRESS OF ACTIVITIES BY REFORM
5.1 INSTITUTIONALIZED FRAMEWORK FOR PUBLIC CONSULTATION
Sustainable institutionalized dialogue platform to improve the quality of all legislations; REFORM OBJECTIVE emergence of a Culture of Collaborative Consultation (CCC).
5.1.1 PROGRESS AGAINST THE WORK PLAN
SUPPORT PUBLIC PRIVATE DIALOGUE Support National PPD platform. MoESD approached G4G for assistance and support to design an advisory committee to serve as a permanent platform for public-private dialogue on trade issues. In response to this request, G4G hired a short-term consultant, Kevin Latner, to develop and design a
1 The Initial Environmental Examination (IEE) is the document prepared by USAID and represents the initial screening of G4G program activities. IEEs establish mandatory environmental “conditions” [mitigation actions] that must be fulfilled during project or activity implementation to protect the environment and human health and welfare. The Initial Environmental Examination (IEE) for the G4G program was drafted and approved by the Europe and Eurasia Bureau Environmental Officer (BEO) on July 9, 2013 (DCN: 2013-GEO-053).
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 13 April 01 – June 30, 2015
governance model for the Trade Advisory Committee. The proposed PPD body model should be consistent with recognized best practices in consultative trade platforms in the US or internationally. To analyze the current processes of trade policy formulation and the level of involvement of different stakeholders in the policy making process in Georgia, G4G consultants worked closely with the MoESD and designed an approach to receive private sector input to develop recommendations for the governing structure of the Trade Advisory Committee. Mr. Latner conducted interviews with different stakeholders including the Ministry of Agriculture (MOA), Business Association of Georgia (BAG), Georgian Small and Medium Entrepreneurship Association (GSMEA), Georgian Employers Association (GEA), Hazelnut Exporters and Producers Association (HEPA), Georgian Farmers Associations, American Chamber of Commerce in Georgia (AmCham), Georgian Trade Unions Confederation, Eastern Partnership Platform (GFSIS), and EU Georgian Business Council (EUGBC). Based on the information collected, Mr. Latner started to design recommendations on the mechanism and governing structure of the Trade Advisory Committee, with the intent of maximizing the value and performance of the PPD platform. During his first trip, Mr. Latner presented initial recommendations on the structure of the committee to the MoESD. The second visit will take place by the end of August, when the final recommendations on the governance structure, membership nomination and selection criteria will be developed. During the previous quarter, G4G issued a grant to analyze the existing governance practices in G4G targeted sectors to better understand the structures and processes of decision-making in the country. During the reporting period, the grantee conducted interviews to assess collaborative governance capacity and analyses of collaborative governance gaps. In the upcoming quarter, the grantee will design an action plan to support establishment and operation of the working groups for permanent PPD platforms, and develop benchmark analysis against international best practices. G4G organized a number of PPD events: March 26 - PPD on Upcoming Customs Legislation. April 7 - PPD on innovation and technology development policy. May 8 - PPD on Insolvency Analysis Findings. June 9 - PPD on water resource management issues at Dusheti Municipality. June 24 - PPD on water resources management Aragvi River basin. June 30, July 7, July 14 - PPD on the development of Capital Markets in Georgia. Develop Reform Progress Tracking System (RPTS). During the reporting period G4G has prepared the grant RFP package and tendered the Georgian Reform Tracking grant to select the contractor (grantee) to develop, implement and operate the reform tracking mechanism during the next 3 years.
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 14 April 01 – June 30, 2015
In addition, G4G has developed and tendered the 3 year grant for PPD Quality Tracking. The objective of this grant is to develop and implement a “PPD Quality Tracking Mechanism” for which each major law or regulation proposed by selected key ministries will be evaluated upon the extent and quality of inclusive consultation and assigned a rating in terms of four PPD quality parameters: A. Policy Design and Development B. Legislation/Policy Drafting C. Regulatory Impact Assessment (RIA) D. Circulation and public comment
The evaluation and awarding of the grant is expected to take place early next quarter.
GOG CAPACITY STRENGTHENING Support National RIA Framework. During the reporting period G4G continued the consultations with GoG and other donor projects on potential support to institutionalization of the RIA process in Georgia. In the beginning of May EU funded project “Legislative Impact Assessment, Drafting and Representation Location” was launched, with a separate component on RIA. On May 15, 2015, G4G met the EU funded project and agreed to coordinate RIA related activities on regular basis in order to avoid any overlaps. On 19 May, 2015, G4G held a meeting with Ana Gvenetadze, Head of the Policy Planning Unit at the State Chancellery, Shalva Tadumadze, the Government’s Parliamentary Secretary, and USAID Good Governance Initiative (GGI). The meeting covered G4G, GGI and EU project involvement and potential role in the implementation of RIA. It was agreed that Prime Minister’s (PM) office will come up with final plan and specific areas of support by all three projects. According to the PM’s Office request in the end of June, 2015, G4G will help the government designing the overall framework of RIA across the GoG. The advisory support will include: the description of the RIA process; definitions of stakeholder roles and responsibilities; criteria to identify regulations subject to RIA; and RIA methodologies. G4G was requested to provide international expertise and advisory support in designing the concept. G4G started the selection process of RIA international expert. The assignment will be implemented in September-October, 2015. PRIVATE SECTOR & CIVIL SOCIETY ORGANIZATIONS STRENGTHENING During this quarter G4G continued meetings with business associations and think-tanks to ensure their significant engagement in G4G activities. In addition, several workshops were conducted to increase their capacity. G4G also conducted open sessions with youth in Tbilisi and Batumi in cooperation with the Academy of the Ministry of Finance and the international youth organization AIESEC. Engage Media in National PPD. From the beginning of its operation G4G designed a program to educate media professionals on economic reforms and economic policy issues through informational seminars, training programs, as well as practical field study tours, to provide them with appropriate knowledge on G4G target reforms and facilitate their involvement in public-private dialogues. During the reporting period, G4G has convened the working group of influential economic reporters from the following media outlets Georgian National Broadcaster, Rustavi 2, Imedi, Maestro, Tabula, Liberali, IPN, BPN, GHN, Messenger, Georgia Today, Financial, and organized several study tours for journalists: April 4-5 – Offsite workshop to present G4G and its initiatives May 2 – Coffee and Conversation on TFS May 30-31 – Offsite study tour on hydropower and ETM G4G issued a grant for conducting a study on constraints of economic journalism in Georgia. The assessment will help G4G to design a comprehensive program in order to improve the economic reporting on G4G target areas, break the barriers between journalism and technical fields, and improve access to institutional information for media professionals.
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 15 April 01 – June 30, 2015
Engage Women in National PPD. During the quarter G4G conducted a number of gender related activities. The project issued the RFA for a women’s leadership program with the objective of strengthening women’s capacity in leadership that includes business planning, effective management, communication, etc. The proposals have been reviewed and the successful bidder has been identified. The program commenced on 29 June, 2015. In addition, on 7 May 2015, G4G in cooperation with the Academy of the Ministry of Finance conducted a session “Setting a Path for Success” for female students from Tbilisi State University and Caucasus University. The objective of the session was to inspire students for successful futures. The event was opened by the Director of the Academy, Tamar Japaridze, and G4G Deputy Chief of Party, Natalia Beruashvili. Ms. Japaridze and Ms. Beruashvili shared their personal success stories with the attendees. This was followed by a lecture that focused on steps that can lead to success. G4G invited Manana Manjgaladze, Head of PR of the Georgian Industrial Group, Ana Mikadze-Chikvaidze, the Chairwoman of Georgian Cheese Producers Union, and Marina Kurtanidze, founder of the wine company “Mandili.” The guests shared their experiences, as well as obstacles and challenges they overcame on their path to success. The session inspired students and demonstrated that success can be reached through hard work, knowledge, and determination. Engage Youth in National PPD. Similar to the women’s leadership program, G4G issued a RFA for a youth governance program aimed at building the students’ capacity to effectively advocate for reforms. The proposals have been received and are currently under review. The program will commence in July. On April 30, 2015, insolvency experts delivered a seminar “Insolvency: Overview of Emerging Standards and Practices,” for Georgian students at International Black Sea University (IBSU). The session was designed to inform the attendees on the basics of insolvency and discuss general principles of the framework used in the international community. On April 29, 2015, Governing for Growth (G4G) together with Georgian Technical University at the University Conference Hall organized the conference “Youth Integration in Electricity Trading Mechanism Development.” The conference was designed to develop future leadership in the energy sector, stimulate an open discussion and exchange of information, and foster stakeholder coordination on recent developments in hydropower investment issues. In addition on May 29, 2015, G4G in cooperation with the Academy of the Ministry of Finance conducted a session “10 Rules – How to start your own Business” for students from Tbilisi State University. The objective of the session was to inspire students for a successful future and provide them with useful tips for starting their own businesses. The event was opened by a lecture that focused on issues that must be taken into consideration when starting a business. The lecturer, Mr. George Eminashvili, discussed products and services, start-ups, competition, investments and consumers. He also provided students with professional advice and helped them put their business ideas on paper. The students made short presentations of their business ideas while Mr. Eminashvili challenged them. The students were also given an opportunity to meet Mr. Mikheil Chkuaseli, the owner of the tea company “Gurieli,” and learn how one of the most successful companies in Georgia was established, what challenges he faced, and how he overcame obstacles. The event was closed by Milo Stevanovich, G4G Chief of Party, who made a presentation on insolvency. All sessions were very interactive and produced great interest among the students. G4G will continue cooperation with the Academy of the Ministry of Finance on a permanent basis. Another seminar, “Path to Success” was held in Batumi on June 19. The purpose of the seminar was to enlighten students on trends and methods for increased employability, as well as learning from experienced professionals on effective management skills. The sessions focused on personal branding, management, and employability skills. Specifically, the opening session was delivered by the student organization AIESEC leadership, Paulina Rogala and Eze Ikechukwu, who gave the students relevant perspective on how to interact in today’s society, emphasizing the careful use of social media. Mr. Ikechukwu further discussed the image one portrays in personal life and its importance in relation to professional life. The second session was held by Mr. Stuart Nelson, General Manager of the Hilton Hotel, Batumi. Mr. Nelson discussed the challenges of management and techniques he has utilized for success.
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 16 April 01 – June 30, 2015
The seminar was closed by a session delivered by G4G Communications Lead Mr. Michael Martley who provided an overview on resume writing, motivation letters, interview skills, and career planning. In addition, an overview of internship opportunities at G4G was discussed. Association Management Workshop for Georgian Business Associations. On April 22-24, 2015, G4G consultant Ms. Camelia Bulat, held an Association Capacity Building Workshop for Georgian Business Associations. The workshop was attended by representatives of 11 associations. The workshop focused on the following three topics: advocacy, membership, programs and services. Ms. Bulat discussed these topics using real world scenarios from associations represented at the workshop and challenged them with opposing opinions. She also introduced to the participants what is advocacy, its difference from lobbying, and how associations should advocate for the benefit of their members. This newly gained knowledge will help the associations to engage in meaningful advocacy campaigns in the future and represent their members’ interests in PPDs. The sessions were very interactive and gave the participants the opportunity to ask Ms. Bulat numerous questions related to their activities. In addition, it helped the association representatives to generate new ideas for membership attraction, new services and programs, as well as strengthen their network. Coalition Building Workshop. On May 19-21, G4G consultant Ms. Carmen Stanila conducted a Coalition Building Workshop for Georgian business associations. The objective of the workshop was to introduce the benefits of working together as business associations and emphasize the importance of approaching the Government with one unified voice. The workshop presented how coalitions work in other countries and why it is important to advocate for policy reforms in a unified manner. In addition, the G4G GoG Component Lead, Nino Chokheli talked about the challenges and ways of cooperation with the government, while G4G Deputy Chief of Party, Natalia Beruashvili introduced to the participants the concept of the G4G reform progress tracking system. The theoretical piece was followed by discussion that was facilitated by Ms. Stanila and G4G Chief of Party, Milo Stevanovich. The discussion led to the identification of issues for further cooperation. Specifically, the participants expressed their interest to join the Economic Policy Advocacy Coalition (EPAC) and acknowledged the value and benefits of approaching the GoG with one unified voice. The participants agreed on a common mission of a new coalition, and identified four reform priorities: tax audit implementation, access to finance for SMEs, land registration, and introduction of alternative dispute resolution for commercial cases. Currently, G4G provides support in the working group’s development of a Memorandum of Cooperation to be signed in July. 5.1.2 PPD SUCCESSES AND LESSONS LEARNED One of the observations that G4G made is the lack of coordination among government bodies, civil society institutions, and businesses, which is often cited due to their inability to effectively interact with each other. Businesses (particularly SMEs) typically lack the capacity to provide relevant feedback to the GoG due to insufficient knowledge of certain issues. In addition, GoG capacity to bring the level of interest and engagement of the private sector in the policy making process is quite low. There has been an increasing interest in leveraging private sector experience to address challenges faced by the GoG and some civil society organizations have become important actors in development assistance. All PPD events organized by G4G provide important assistance to the GoG to build working relationships with the stakeholders. 5.1.3 CHALLENGES TO ACHIEVING REFORM RESULTS High level of engagement of the private sector in the policy formulation process takes time and requires a medium to long-term strategy composed of capacity building, measurable goals, and commitment.
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 17 April 01 – June 30, 2015
5.2 ENERGY STRATEGY REFORM
Coherent Strategy that leads to the effective, economically justifiable and sustainable REFORM OBJECTIVE energy production, delivery and consumption consistent with environmental requirements.
5.2.1 PROGRESS AGAINST THE WORK PLAN
SUPPORT PUBLIC PRIVATE DIALOGUE G4G has conducted initial discussions with the Ministry of Energy (MoE) to initiate Public Private Dialogue on the country’s energy strategy. It will bring together energy officials, civil society organizations, private companies, and other public or private stakeholders to act together in developing a draft energy strategy paper.
GOG CAPACITY STRENGTHENING New Energy Policy was adopted on June 24, 2015, by the Parliament of Georgia and the MOE will actively work for finalizing the strategy paper. The MoE has requested G4G to provide technical support on strategy development process. A tender on energy and water consumption end-use survey in commercial and industrial sectors has been announced. The RFP is published on www.jobs.ge. Closing date for proposals was July 15. The survey is planned to be conducted from July 31, 2015 to December 30, 2015. The survey will support various ministries, agencies, and private sector companies to perform planning, allocation and development of resources through obtaining complete end-use consumption data that is crucial for long term policy and strategy development both for the energy and water sectors. At the first stage, the results will be used by the MoE in the MARKAL Georgia model. G4G, together with the MoESD, continued working on electricity demand forecast and on relationship between electricity consumption and GDP growth. Another round of meetings with Irma Kavtaradze, Deputy Minister of MoESD, and her working group was held during the reporting period. G4G presented a draft excel model on electricity-GDP analysis. It was agreed that MoESD will provide input and G4G will develop a short report on the status of the work in order to be presented to the GoG.
PRIVATE SECTOR & CIVIL SOCIETY ORGANIZATIONS STRENGTHENING None at present. 5.2.2 PPD SUCCESSES AND LESSONS LEARNED None at present. Planned activities are in progress. 5.2.3 CHALLENGES TO ACHIEVING REFORM RESULTS G4G progress on Energy Strategy reform greatly depends on the MoE’s schedule of completing the draft Energy Strategy paper. Process was pending due to adoption of Energy Policy by Parliament, as it is the legal basis for a future energy strategy. 5.3 ELECTRICITY TRADING MECHANISM REFORM
Effective ETM to enable Foreign Direct Investment (FDI) necessary for development of REFORM OBJECTIVE hydropower plants which are vital for clean and low cost energy for Georgia.
5.3.1 PROGRESS AGAINST THE WORK PLAN
SUPPORT PUBLIC PRIVATE DIALOGUE On April 2, 2015, G4G organized a PPD session between Energy Market Players (MPs) and GoG representatives (State Security and Crisis Management Council of Georgia, Georgian State Electrosystem and Electricity System Commercial Operator). Main topics of discussion included recent developments in the energy market and planned activities related to cross-border electricity trading, congestion
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 18 April 01 – June 30, 2015
management, and capacity auctioning procedures. Representatives of the Georgian State Electrosystem explained the benefits of ETM and presented a new web-based software program to the MPs. The event had active discussions on various topics and GoG representatives were challenged by the MPs. At the conclusion of the session, participants agreed to select the following topics for the next event: Introduction of concept of Distribution System Operator (DSO) and establishment of Ancillary Services Market in Georgia. ENERGY (ELECTRICITY) TRADING POLICY GOVERNANCE ETM Capacity Building. During the reporting period G4G continued supporting the MoE, ESCO, GSE and the Georgian National Energy and Water Supply Regulatory Commission (GNERC) in assessment of the future market model and detailed steps towards ETM implementation. Together with energy sector main stakeholders, G4G has started to draft a Road Map – “Steps towards Daily and Hourly Electricity Trade in Georgia.” The Road Map will consist of two parts: Local ETM and Cross-Border ETM development. The objective of the paper is to build consensus between stakeholders on initiating competitive electricity trading within Georgia, establish responsibilities and deadlines, and monitor progress against implementation milestones. The concept paper includes the introduction of hourly trading and settlement, balancing market, day-ahead market, regional ancillary services market, clearing mechanism and virtual cross-border node on the Turkish Day Ahead Market. Ministry of Energy (MoE). During the reporting period G4G held numerous working meetings with Deputy Ministers Ilia Eloshvili and Irakli Khmaladze on the software development process, updates on current activities and future steps. At the end of 2014, MoE created an electricity sector working group to resolve differing opinions between stakeholders on the future electricity market design. Strong differing opinions still remain within the working group raising concerns that movement toward implementing the ETM will result in increased retail electricity tariffs and significant negative impact on some of the market players. The MoE requested G4G’s support in analyzing impacts on retail tariffs and revenue levels to individual MPs for a transition to a competitive electricity market in Georgia. The first request by the working group is to develop market simulation software for completing the analysis. During the reporting period, subcontractor of G4G – “Georgian Resource Development Services“ has completed two out of four tasks of the simulation software: methodology report and docking software. The docking software test version is already installed and is under examination in GSE. G4G will support the MoE and GSE in simulating different market scenarios in the working group after the third task (Simulation) will be completed. Third task is expected to be finalized by the end of July, 2015. On the way of accomplishing GEMM 2015 milestones USAID HPEP and G4G assisted the Ministry of Energy (MoE) to prepare the Energy Policy White Paper for Georgia setting out a strategic policy framework that addresses the priorities and challenges in the energy sector of Georgia. Based on this White Paper MoE developed the Energy Policy for Georgia which was adopted by the Parliament on June 24. This Energy Policy is meant to be an overarching long-term vision that will ensure energy security and energy sector development of the country. Among other core directions national energy policy includes approximation of Georgia’s legislative and regulatory framework with the EU’s Energy acquis and establishment of competitive energy market and electricity trading mechanism, actively pursued by G4G. Georgian State Electrosystem (GSE). Docking software - G4G held several meetings with GSE to discuss electricity market simulation software development process, particularly the database structure of the software, implementation phases and next steps. Development work for electricity market simulation software is expected to be finalized by the end of August, 2015. It was agreed to form a simulation group with GSE and G4G representatives. The group will report to the MoE on simulation results and will develop specific recommendation on future electricity market model of Georgia. G4G continued close cooperation with World Bank on electricity trading software and hardware procurement. G4G shared its current activities related to ETM implementation on regular bases and expressed readiness to support Word Bank in establishing a trading platform in Georgia. In 2014 World Bank allocated $6 million USD for GSE for electricity trading software and hardware. World Bank plans to develop Terms of Reference for the procurement of the trading platform by September, 2015.
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 19 April 01 – June 30, 2015
Georgian National Energy and Water Supply Regulatory Commission (GNERC). During the reporting period, G4G held a number of meetings with GNERC to discuss recent developments in the ETM implementation. GNERC is currently developing the pricing methodology for new connections to the electricity transmission and distribution networks and rules for monitoring of cross-border capacity auctioning and trading. G4G was asked to support GNERC and conduct workshops on the best international practices of the connection process, tariffs and associated monitoring. In April, G4G conducted a series of workshops, where the best international electricity network connection standards, pricing methodology and procedures were discussed. Establishment of a Distribution System Operator (DSO) and adoption of a Distribution Grid Code were also addressed at the event. The Transmission Grid Code’s full version was approved by GNERC on April 22, 2015. The Grid Code was developed by USAID’s support in 2012-2013. On 13 May 2015, G4G together with GNERC, participated on “Commersant’s” radio station talk show. Topics of discussion included foreign investments in hydropower, recent developments in the electricity sector and implementation of the ETM. Increasing public and stakeholder awareness on key issues in the energy sector will support moving toward a more competitive energy market. GNERC agreed to hold regular media events to inform the public on the key activities in the energy sector. G4G met with Irina Milorava, Chairman of GNERC, to discuss comments and recommendations from G4G on the annual report of GNERC. Since the current report is already finalized and ready to be presented to the Parliament of Georgia, recommendations of G4G will be considered in the next annual report. Electricity System Commercial Operator (ESCO). During the reporting period G4G held several meetings with Vakhtang Ambokadze, General Director of ESCO, to discuss the next steps in ETM implementation, transformation of ESCO to Electricity Market Operator (MO) and the roles and responsibilities of MO in the competitive electricity market. It was agreed that ESCO will provide its input to the proposed market structure. G4G will continue meeting with ESCO and other electricity market stakeholders to reach consensus on ETM implementation road map.
PRIVATE SECTOR & CIVIL SOCIETY ORGANIZATIONS STRENGTHENING 5.3.2 PROMOTION OF ENERGY SECTOR ASSOCIATIONS On April 2, 2015, based on preliminary discussions with electricity private sector stakeholders, G4G conducted the third workshop for electricity MPs. At this workshop, participants discussed prioritized electricity market issues of common concern and planned next steps. MPs agreed to hold the fourth workshop to develop recommendations on possible solutions to the issues identified for PPD discussion with the MoE. The possible creation of a professional association of MPs was discussed during the workshop to achieve better coordination between different MPs. The next workshop is planned to take place at GSE. 5.3.3 PPD SUCCESSES AND LESSONS LEARNED G4G has conducted two PPD events between the GoG and private stakeholders on major electricity trading issues and planned government initiatives. After observing the PPD process, it became obvious that MPs need capacity building on market development issues, international best practices on current market operations, competitive electricity trading, risk mitigation tools and effective management. Support in developing advocacy and consensus building skills are also essential for a successful PPD process. The biggest challenge between MPs is to agree on priorities and speak with one voice with the GoG. 5.3.4 CHALLENGES TO ACHIEVING REFORM RESULTS There are different approaches proposed by ESCO and GSE concerning ETM implementation, the ETM’s impact on electricity retail tariffs and their respective roles in providing electricity market services. G4G is engaging with both entities and targeted capacity development is focused on their respective missions. Should the two organizations be unable to clearly define and undertake their roles, it will present challenges to the successful implementation of this reform. The MoE holds the key role in resolving this issue.
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 20 April 01 – June 30, 2015
5.4 WATER RESOURCE MANAGEMENT REFORM
Equitable transparent sustainable allocation of fresh water resources across multiple REFORM OBJECTIVE competing interests is necessary to prevent grave failure to serve legitimate needs.
5.4.1 PROGRESS AGAINST THE WORK PLAN
SUPPORT PUBLIC PRIVATE DIALOGUE G4G, in close cooperation with its subcontractor GAMMA (environmental consulting company) commenced study on pilot river basin selection methodology. The study was developed using the web- based decision-making instrument (HIPRE program) elaborated by the Helsinki University of Technology. The final findings of the study were presented to the water service of the Ministry of Environment and Natural Resources protection (MENRP). The river basin selection report discusses selection criteria being used to identify a river basin for development of water balance. Based upon the report, the Aragvi river basin was selected as a pilot for conducting further studies (Aragvi river basin covers Dusheti and Mtskheta municipalities). G4G continues work on developing recommendations at Aragvi river basin level on developing water balance and river basin management plan. During the reporting period, G4G conducted two PPD events in Dusheti (held on June 9, 2015) and Mtskheta (held on June 15, 2015) Municipalities. The PPD events, the first of their kind in Georgia, focused on initiating dialogue between GoG and private sector regarding water resources management. Challenges and opportunities for sustainable use of Aragvi river basin water resources were discussed during the meetings. More than 100 participants attended both events. Participants were actively involved throughout the meeting. The entrepreneurs asked questions on issues of interest and were given thorough information on the future plans of local government and G4G planned activities regarding water management. It was agreed that G4G will continue meetings in Mtskheta and Dusheti Municipalities and will serve as a link between the local government, private companies and non- governmental organizations to ensure better planning and management of water resources at Aragvi river basin level.
GOG CAPACITY STRENGTHENING During the reporting period, G4G conducted a number of fact-finding meetings to assess the status quo on the design of the Inter-Ministerial Water Resource Working Group meeting. On April 21, G4G held a meeting with Vakhtang Khavtasi, Economic Council representative, to discuss water resource management coordination issues. G4G was requested to provide advisory support in designing the concept of the meeting. With this purpose, G4G developed and submitted the meeting agenda, draft presentation and ‘one-pager’ on water management to the Economic Council for review. It was agreed that once GoG finalizes discussions with local self-government on regional development issues G4G will follow up with advisory support on organizing the inter-ministerial working group meeting. On June 15, G4G international water resources management expert, Girija Bharat, commenced her assignment of assessing current water resources management practices and developing curriculum for a training program for the GoG and CSO’s. It is envisaged that this curriculum will build on existing strengths within specific disciplines in Georgia (e.g. hydrometeorology, chemistry etc.) and expand to include key elements of River Basin Management (RBM) approach (such as ecology, policy planning). Training will be developed based on modules to address the specific capacity needs for practitioners who are active in water management over the coming months. The training modules will be developed to address these capacity needs and to place them within the RBM context. G4G international water resources management expert, Luca Palazzoto, provided the first draft report on a water management roadmap for Georgia. On June 29, 2015, G4G organized a webinar with the technical staff of the Ministry of Environment and Natural Resources Protection (MENRP). The webinar participants reviewed and validated findings and recommendations suggested by G4G consultancy. The MENRP suggested preparing a detail concept note for implementation of water management roadmap in Georgia, which would include information such as definitions of the stakeholder roles and responsibilities, outputs and an implementation timeframe.
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 21 April 01 – June 30, 2015
On 14 May 2015, G4G and USAID met with Teimuraz Murgulia, First Deputy Minister of MENRP, at MENRP. The Cost-Benefit Analyses Model of Watershed Based Hydropower Development in the Enguri Watershed Area study prepared by HPEP project was discussed. This study was commissioned by USAID/HPEP to attempt to quantify in monetary terms the cost of environmental impact to economic feasibility using valuation techniques based on modern principles of environmental economics. MENRP is considering using the above as a case study and further expanding this cost-benefit model for use in the planned 210 MW Nenskra Hydropower Project.
PRIVATE SECTOR & CIVIL SOCIETY ORGANIZATIONS STRENGTHENING G4G awarded a competitive grant to NGO “Regional Environmental Center for Caucasus (REC Caucasus),” implement a green paper on ‘Water Allocation Plan Framework – Challenges for Implementation.’ REC Caucasus submitted an action plan for the implementation of the grant project “Green Paper on Water Allocation Plan Framework: Challenges for Implementation.” G4G and the grantee discussed and agreed on an activity implementation plan. In upcoming months, the Grantee will organize field visits in the selected watershed area and familiarize representatives of local municipalities and the public and private sector with EU best practices on the concept of Water Resources Allocation Plans (WRAP) and develop recommendations for the implementation of the WRAP concept. It is also expected that this Green Paper could be used by the GoG as a tool for identification of water stakeholders’ (e.g. water users) needs and expectations as well as for reaching a consensus between stakeholders before drafting the water policy document. During the reporting period, G4G has finalized a draft Scope of Work (SoW) on Water Resources Guidance Document Applicable for Georgia. The SoW was developed through intensive discussions with the key stakeholders and water sector experts. Development of the document should be completed by October, 2015. G4G worked on the development of a grant SoW on Fresh Water Resources Management Training program. G4G conducted consultations with MENRP, REC Caucasus, GAMMA and other water resources management experts (Kakha Bakhtadze and Irakli Kobulia) to identify and discuss possible topics for the training program. In addition, G4G organized a brainstorming session on the ‘Water Evaluation Planning System (WEAP)’ software model. The above model provides a comprehensive, flexible and user-friendly framework for planning and policy analysis. A growing number of water professionals are finding WEAP to be a useful addition to their toolbox of models, databases, spreadsheets and other software. As a result of the brainstorming exercise, G4G developed the SOW on ‘Freshwater Resources Management Training: Computer Models for Water Resources Planning and Management’ grant project. By this particular assignment, G4G intends to help water agencies and CSOs in Georgia to locate the optimal computer programs in fresh water resources planning and management focused on water allocation for their particular needs. G4G also aims to train water agencies and CSOs in use of the selected software package and demonstrate how it can be applied in decision-making processes. Moreover, on April 3, G4G participated in the seminar on Ecosystem Economic Evaluation. The seminar was conducted by Ilia State University professor, Irakli Macharashvili (who also represents the Georgian NGO “Green Alternative”). The concept of economic evaluation of ecosystems was presented at this session. The evaluation was based on a Cost-Benefit Analysis model developed by the USAID HPEP project. Through combining various methodologies and sources for the monetary valuation of benefits and costs, the HPEP project attempted to link functioning of ecosystems with hydropower development.
WATER RESOURCE MANAGEMENT During the reporting period: (1) a SoW and a grant award with G4G grantee, REC Caucasus, was finalized and approved; work on green paper was commenced; (2) the following RFA’s was announced in the following reporting period; (a) Freshwater Resources Management Training: Computer Models for Water Resources Planning and Management; (b) on Water Resources Guidance Document Applicable for Georgia. Moreover, G4G conducted several meetings and interviews with the GoG, CSO’s and private sector in order to identify the challenges pertaining to the water sector and key thematic areas for future work. On April 29, G4G held a meeting with the Social Protection Department of the Ministry of Labor, Health and Social Affairs (Natia Gvaramadze, Head of Department). The objective of the meeting was to discuss
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 22 April 01 – June 30, 2015
the existing methodology for determining the vulnerability of Georgia’s population. Tbilisi City Council has started to link subsidies to the revenues of what are considered to be the vulnerable population. The size of utility bills (water, electricity, gas, and waste removal) has now been added to the evaluation. Citizens paying high utility bills are not considered vulnerable. In addition, during the report period, G4G participated in the panel discussion on the Road Map on Climate Change organized by USAID funded Institutionalization of Climate Change Adaptation and Mitigation in Georgian Regions (ICCAMGR) program. The objective of this Panel was to discuss the challenges related to the development of Georgian national policy framework regarding climate change as well as its implementation at the local level. G4G water sector environmentalist, Mariam Bakhtadze, made a presentation on G4G planned activities in water resource management. The discussion covered issues related to the institutionalizing climate change adaptation as well as integration of the water resource management issues into the agenda of local authorities in Georgia. The panel was represented by the Minister for Environment and Resource Protection, USAID representatives, USAID ICCAMGR, USAID G4G and other USAID funded projects.
PRIVATE SECTOR & CIVIL SOCIETY ORGANIZATIONS STRENGTHENING In Quarter 4, G4G plans to issue a grant to CSOs for (1) Freshwater Resources Management Training: Computer Models for Water Resources Planning and Management; and (2) Water Resources Guidance Document Applicable for Georgia.
CAPACITY BUILDING TO UNITED AMELIORATION SYSTEMS COMPANY OF GEORGIA From September 2014, new management at the Ltd Georgian Amelioration (GA) commences a series of reforms to improve performance of the company. The reforms are targeted to deliver better services to customers and to ensure financial stability of the company. To help GA, the State Audit Office audited the company, identified the gaps and developed recommendations. The audit report identified a list of urgent measures to be implemented which include development of an irrigation strategy and introduction of flexible tariffs for irrigation. At the same time, GoG, in its Strategy for Agriculture Development in Georgia 2015-2020, recognizes the need to make GA as a profit-making organization. The core for the commercialization of GA, is introduction of new tariff methodologies. GA applied to USAID to get support in development of tariffs. In response to the request, G4G and GA initiated a joint project to introduce new system of tariffs for irrigation. G4G held series of workshops on tariff methodologies. During the workshops G4G reviewed international best practices for tariff methodologies. Case-studies from different countries were discussed in detail with the counterpart. Selected case-studies will be used for development of the tariff methodology concept applicable for local needs. GA and G4G agreed that there is a need to develop pricing schemes for different type of services including water transit, trade on water resources, drainage, tree plantation, reclamation, water supply to HPP, municipal and industrial water supply, etc. To make G4G and GA collaboration more effective, a working group on irrigation and drainage tariff methodology framework was established. The group includes members from GA and G4G: Davit Mujirishvili, Elene Ghubianuri and Neli Danelia from G4G, Nikoloz Abuashvili, Eduard Oganesyan and Davit Chitanava from GA. The first meeting of the working group was held on 13 May 2015. G4G and GA representatives discussed and agreed upon the main components of irrigation infrastructure for which tariff methodology should be applied. The working group sessions are held continuously to discuss various aspects of the tariff methodology. The discussion topics covered the best international experience for irrigation pricing schemes, cost allocation approaches, relevance of the pricing schemes with the key concepts from the irrigation strategy, and World Bank draft water allocation rules. 5.4.2 PPD SUCCESSES AND LESSONS LEARNED On June 9, 2015, G4G arranged a meeting in Dusheti Municipality (Dusheti city) with participation from the Deputy Governor of the Region, MENRP, Environmental Consulting Company GAMMA, representatives of regional municipalities’ administrations and private sector representatives. 40 people attended the event in total. On June 15, 2015, G4G arranged a Meeting in Mtskheta Municipality (Mtskheta) with the participation of Deputy Governor of the Region, (Mr. Koba Arabuli), Head of Mtskheta Sakrebulo (Guram Ansiani),
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 23 April 01 – June 30, 2015
MENRP, Environmental Consulting Company GAMMA, representatives of regional municipalities’ and private companies. In total, 35 persons attended the event. Event participants requested G4G assistance in organizing additional discussions and awareness raising workshops on water management issues. It was agreed, that the G4G program will continue meetings in Mtskheta and Dusheti Municipalities on water management issues, which would ensure successful advocacy for solutions to problems that exist in the sphere. Moreover, G4G will analyze and reflect the feedback received from this public consultation in Aragvi River Basin management studies. 5.4.3 CHALLENGES TO ACHIEVING REFORM RESULTS In April, G4G held a meeting with Economic Council representative to discuss the Inter-Ministerial Water Resource Management Working Group meeting. The working group meeting was scheduled for May-June 2015 and aimed to discuss water resource management coordination issues. The coordination meeting was postponed due to several reasons: 1. Ministry of Environment was in process of obtaining feedback on new draft water law. Ministry of Environment suggested organizing an inter-ministerial working group meeting once the new draft law is informally agreed among different ministries. 2. Emergency situation in Tbilisi related to flooding event on June 13. Prior to the inter-ministerial water resource management working group meeting, G4G proposed to meet with the newly appointed Minister of Environment and Natural Resources Protection to get support from MENRP. At the same time, G4G will work very actively with the Economic Council to organize the event. The event will be held in late July, 2015. 5.5 TAX ENFORCEMENT AND ADMINISTRATION REFORM
REFORM OBJECTIVE Direct and immediate positive effect on tax compliance for all businesses.
5.5.1 PROGRESS AGAINST THE WORK PLAN SUPPORT PUBLIC PRIVATE DIALOGUE Tax Payment Simplification Reform. Due to the decision of the GoG to shift the launch of a new tax payment system from July 1 to December 1, 2015, PPD events related to the reform were rescheduled respectively for October-November, 2015. G4G will implement the targeted outreach (banks, taxpayers and general public) through a series of PPD events and production of a promotional video. Tax Code Review. G4G continued discussions on approximation of Georgian VAT rules with EU VAT Regulation within the working group established back in January, 2015. The working group consists of middle-level tax policy experts from the MoF, RS as well as the EU Twinning Project “Strengthening Administrative Capacity of the Georgian RS in Taxation” and G4G. The final working group meeting was conducted in April, 2015. GOG CAPACITY STRENGTHENING Tax Payment Simplification Reform. In Quarter 3, G4G implemented Phase II of assistance to the Tax Payment Simplification reform focused at improving technical capacity of RS staff. In May–June, G4G Tax Consultant, Irakli Siradze, conducted a series of on-the-job training sessions for the staff of the RS Service Department. An 8-day training session was delivered to 22 employees of the RS on practical application of the new tax payment system. As part of RS staff capacity building, G4G developed the Methodological Instructions on Operation of the Taxpayer Card. The document describes in details the procedures of opening of taxpayer card, entering the data to the card, incurring the tax liability accrual, writing-off the debt, etc. To support the public awareness on the single treasury code system and to educate taxpayers on how to make payments through the new system, G4G drafted a plain language guide. The guide will be finalized in the beginning of July 2015, and be distributed through PPD events and other channels. On May 1, the Parliament of Georgia approved amendments to the Tax Code related to the tax payment simplification reform. The changes to enable the launch of the new tax payment system are effective from
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 24 April 01 – June 30, 2015
December 1, 2015. The initial deadline of July 1 was moved due to the modification of the internal system of MoF Treasury Service. However, the Tax Code changes related to the payment in case of VAT reverse charge, temporary admission of goods and recognized tax liability are effective from July 1, 2015. Tax Code Review. In April, 2015, G4G completed the technical assistance to the MoF in analyzing the EU VAT Directive2 and developing recommendations on approximation of the Tax Code of Georgia with the Directive. Legal approximation in the area of tax legislation and, in particular, VAT-related rules is defined as one of the priority areas under the EU-Georgia Association Agreement (AA). During the reporting period, G4G through its subcontractor PMCG, conducted a detailed research and analysis of discrepancies between the Georgian Tax Code and EU VAT Directive and prioritized the issues against the criteria of feasibility and impact on the private sector. The work was conducted in close collaboration with MoF’s working group established for that purpose. The VAT Approximation Action Plan was presented at the final working group meeting in April, 2015. The document classifies all required legislation changes by priorities in three groups: (1) regulations which are the most urgent, needs quick solutions and require immediate changes; (2) regulations which will have a large impact and need to be discussed with the private sector; (3) technical changes which will be easier to implement. The document also defines the timetable for implementation. During the reporting period, G4G delivered technical assistance to the MoF on Tax Public Rulings. The Tax Code entitles the Minister of Finance (MoF) to issue public rulings to provide interpretation of complex tax issues based on the analysis of the current practice of taxation. Since the MoF had no previous experience in issuing public rulings, it requested G4G assistance in drafting the procedural rules of issuing public rulings as well as in drafting the first public ruling document. Taxation of agricultural activities was selected as a subject for the first tax public ruling. By the end of June, 2015, G4G in close coordination with MoF’s Tax Policy department finalized the documents: (1) draft Decree of the Minister of Finance on Issuing the Public Ruling; and (2) draft Public Ruling on Exemption of Revenues from Agricultural Activities from Profit Tax. According to the G4G recommendations, each public ruling will cover one specific issue (e.g. should the packaging of agricultural products be considered as agricultural activity or not) rather than the whole subject (e.g. agriculture taxation). All public rulings under the same subject will be endorsed by a single order of the Minister of Finance to simplify finding the relevant document. Further, all public rulings will have the standard layout of (a) issue, (b) interpretation, (c) justification, and (d) examples. As to the draft Public Ruling on Exemption of Revenues from Agricultural Activities from Profit Tax, it provides interpretation of taxation related to the reinvested portion of profit gained from agricultural activity. During the reporting period, the MoF approached G4G with a request to provide assistance in better understanding the Estonian Corporate Income Tax (CIT) model and analyzing the consequences of its potential implementation in Georgia. G4G decided to support the MoF by hiring two Estonian tax consultants (legal and analytical) to educate the MoF on Estonian CIT related legislation and administrative practices and conduct a cost-benefit analysis to estimate the possible impact of its adaption to Georgia. G4G developed the SoWs and started the consultants’ selection process. G4G plans to issue a grant to local organization to conduct RIA on Estonian CIT model implementation in Georgia. The activity will be implemented in Quarter 4. PRIVATE SECTOR & CIVIL SOCIETY ORGANIZATIONS STRENGTHENING Tax Code Review. G4G conducted several meetings with CSO representatives and business associations in order to collect information about the specific needs of small business associations on tax code advocacy. In June, 2015, based on the information collected from different stakeholders, G4G awarded a grant to the non-governmental organization Knowledge and Experience Transfer to implement the Capacity Building Training on the Tax Policy Issues Program. The objective of the grant is to build small business associations’ capacity through targeted trainings in Tax Code advocacy. This activity will be implemented during the period of July-September, 2015. During the reporting period, G4G issued a grant to CRRC-Georgia to implement the Tax Perception Survey. The objective of grant is to conduct a survey of the current perceptions of private companies in
2 Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax.
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 25 April 01 – June 30, 2015
order to identify the attitudes of the business community toward tax policy, tax authorities and administration. It will help the RS and G4G to accurately assess the current tax policy issues and reveal the areas where the project’s interventions will be most valuable. In June, 2015, G4G in cooperation with the RS, designed the list questions of the survey and delivered it to the grantee for designing the survey questionnaire. The survey will be conducted in the period of July-September, 2015. During the reporting period, G4G also conducted the preparatory work and announced the grant competition for conducting RIA on the implementation of the Estonian CIT model in Georgia. The grantee shall closely collaborate with G4G’s short-term Estonian consultants whose tasks are defined under a separate work order. The Estonian Tax Consultants will provide the grantee with all necessary information on the Estonian CIT Model, Estonian lessons learned from CIT reform, the risks, etc. 5.5.2 PPD SUCCESSES AND LESSONS LEARNED Tax Payment Simplification Reform. None at present. Working Group Meetings. The working group format proved to be successful in terms of internal coordination between the MoF and RS as well as for donors in order to learn what could be the next steps of the reform. Working group meetings enabled comprehensive analysis and consultations among experts and identified existing gaps in the particular field of tax policy. 5.5.3 CHALLENGES TO ACHIEVING REFORM RESULTS Tax payment simplification reform is an innovative project, replacing the 164 separate treasury codes with a single treasury code, allowing the RS to more accurately collect and allocate taxpayers’ payments according to their tax declarations. However, it is also a complex reform implying significant modifications to existing business processes; therefore, the smooth implementation of the new system requires sound change management and strong coordination between the RS and Treasury Service of MoF. It is important that the MoF continues the close monitoring and coordination of all pre-launch activities after G4G’s closing of support for this effort in July 2015. Some of the reforms on MoF’s agenda have a long-term timetable. Approximation of Georgian Tax Code to the EU VAT Directive under EU-Georgia AA is one such reform with a 5-year timeframe. Given G4G’s limited duration, it may happen that reform will not bring desired results in the lifetime of the project. However, this should not diminish the importance of such initiatives and prevent the project from being engaged. 5.6 CUSTOMS ADMINISTRATION AND ENFORCEMENT REFORM
Elimination of barriers and inefficiencies that has an immediate impact on cross-border REFORM OBJECTIVE trade.
5.6.1 PROGRESS AGAINST THE WORK PLAN
SUPPORT PUBLIC PRIVATE DIALOGUE Customs Code. On May 13, 2015, G4G organized a PPD between the RS, freight-forwarders, and transport/logistics companies on customs policy. Prior to the meeting, G4G, through individual consultations, identified several issues of private sector concern. The discussion included: customs valuation rules (method one); customs status of goods for VAT taxation of international transportation services; waste and losses of goods under customs control; etc. The participants negotiated and agreed on solutions which will be further reflected in customs legislation. The next PPD is planned in Quarter 4 on the EU Authorized Economic Operator concept which will be gradually introduced in Georgian legislation.
GOG CAPACITY STRENGTHENING Authorized Economic Operators (AEO) Concept. During the reporting period, G4G customs and trade team (G4G Customs Advisor, Bondo Bolkvadze and short-term consultant, David Lelashvili) completed a comparative analysis of the European Authorized Economic Operator's (AEO) and Georgian Gold List programs. The analysis drew parallels between provisions regulating EU AEO and Gold List programs and identified key discrepancies. The work has been conducted in close cooperation with RS’ AEO
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 26 April 01 – June 30, 2015
working group consisting of representatives of the RS legal, administration, post-clearance audit, customs clearance departments and G4G. During the reporting period, AEO working group met several times to discuss several key aspects of AEO implementation: potential benefits; participants; and parallels between EU AEO and Georgian gold list programs. The discussions revealed not only conceptual gaps between the Gold List and AEO but also institutional and capacity gaps of the RS to implement the AEO program. From May 19-22, 2015, working group members attended the AEO workshop organized by the RS and World Customs Organization (WCO) and had an opportunity to learn the practical details about the AEO concept implementation stages. The discussion included: legal framework of AEO, application and authorization process, eligibility criteria, benefits, monitoring of authorized operators, etc. The information received from French and German specialists helped the working group in drafting AEO implementation recommendations and an action plan. During the reporting period, G4G conducted preparatory work for the AEO study visit. G4G and the RS selected the Lithuanian Customs Department for the study visit. Lithuania is considered a good example among post-soviet countries that successfully implemented AEO reform during the EU approximation process before joining the EU in May, 2004. The visit was scheduled for July 13-17, 2015, and the detailed 3-day agenda was agreed with Lithuanian Customs Department. By the end of Year 1 G4G in coordination with the RS will develop the AEO implementation recommendations and action plan. Customs post-clearance control. The RS and G4G received confirmation from the Federal Customs Service of Germany regarding the technical assistance to the RS to develop post-clearance customs audit (PCA) procedures. Two officers from German Customs, Mr. Karl Sporny and Mr. Rainer Neppl, will visit Georgia during July 5-11, 2015, to conduct a needs assessment and develop recommendations for PCA function development. They will also conduct a workshop to share experience with customs PCA officers. G4G will co-sponsor the mission through financing logistics for the experts. G4G will plan more extensive assistance according to the needs revealed by the assessment.
PRIVATE SECTOR & CIVIL SOCIETY ORGANIZATIONS STRENGTHENING No specific activities were implemented within the reporting period.
5.6.2 PPD SUCCESSES AND LESSONS LEARNED None at present.
5.6.3 CHALLENGES TO ACHIEVING REFORM RESULTS None at present.
5.7 TRADE FACILITATION/TRANSPORT AND LOGISTICS REFORM
Elimination of barriers and inefficiencies that has an immediate impact on cross-border REFORM OBJECTIVE trade and facilitate greater integration with EU countries.
5.7.1 PROGRESS AGAINST THE WORK PLAN
SUPPORT PUBLIC PRIVATE DIALOGUE DCFTA. During the reporting period G4G, in cooperation with the MoESD, translated and printed 150 copies of the DCFTA awareness brochures in English. The brochure provides a brief overview of all 15 chapters of the agreement. The brochures will be distributed to businesses, media, NGOs, and local municipalities as a part of the DCFTA public awareness campaign. In addition, G4G provided assistance to the MoESD in developing a brief report on measures implemented by the GoG towards EU approximation and DCFTA implementation. The report was also translated into English. In Quarter 4, 500 copies of Georgian versions and 150 English versions will be printed and distributed among different public and private stakeholders.
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 27 April 01 – June 30, 2015
During the reporting period, G4G subcontracted Production 42 to develop a DCFTA promotional video. In June, a draft version of the video was shared with the MoESD to receive their feedback and make corrections accordingly. The video production will be completed by the end of July 2015. Trade Facilitation System (TFS). On April 8, the Fifth TFS Steering Committee Meeting took place to discuss a system launch timeline and implementation issues. The meeting was led by the Minister of Justice, Tea Tsulikiani, and attended by representatives of the Data Exchange Agency (DEA), RS, Economic Council, USAID and G4G; the private sector was represented by sea ports (Batumi and Poti), shipping lines (Maersk, MSC, Evergreen, EISA, Catoni and Co, ZIM, China Shipping Company) and Freight Forwarders Association. USAID Mission Director, Stephen Haykin, and G4G CoP, Milo Stevanovich, highlighted the importance of the TFS implementation and sensitivity of tariff policy's potential impact on the competitiveness of Georgia as a transit corridor. In conclusion, the Committee members agreed on the renewed TFS implementation action plan: (1) Pilot launch: June 2015; (2) Full launch: September 2015; (3) 6-month grace period on user fees; (4) Establishment of a fee based on a study; and (5) Periodic meetings to discuss and resolve any issues occurring in the implementation process. Following the Steering Committee meeting, on April 27-30, G4G together with DEA, visited TFS stakeholders in Poti and Batumi. The purpose of the visit was to check the status of ongoing TFS-related work, as well as learn and describe the business processes related to container cargo export. Interviews were conducted with Batumi and Poti sea ports, Logitex and Barwil container terminals, MSC and EISA shipping lines, and Poti and Batumi customs representatives. Based on the collected information, DEA started developing the modules for export-related data exchange. It is planned to include the export operations in a pilot launch of TFS.
GOG CAPACITY STRENGTHENING During the reporting period, G4G has been facilitating the coordination between the DEA, RS and private sector stakeholders to resolve outstanding technical and legal issues related to the system launch. The information transmitted through TFS might include taxpayer’s confidential information. DEA and RS are discussing several options how to safeguard the protection of such information, including the amendments to the Tax Code authorizing DEA to receive and transmit confidential information. It was also decided that G4G will conduct the study on a TFS fee: a sensitivity analysis to measure the potential impact of a range of different fees on transport and logistics sector of Georgia and its competitiveness. In June 2015, G4G announced the competitive selection process of the consultant and shortlisted several candidates. The study will be conducted in Quarter 4.
PRIVATE SECTOR & CIVIL SOCIETY ORGANIZATIONS STRENGTHENING DCFTA. In June 2015, G4G decided to re-announce the competitive procurement on development of DCFTA rules of origin and customs tariffs and quotas guide. The results of the grant competition conducted in May, 2015, were annulled due to the winner’s withdrawal from the competition for conflict of interest purposes.
5.7.2 PPD SUCCESSES AND LESSONS LEARNED The Fifth TFS Steering Committee meeting and bilateral consultations between DEA and private sector revealed that the issue of participants’ fees and overall financial model of TFS remains a significant concern of the private sector, and, if not conducted properly, may undermine the success of the system. To mitigate this risk, G4G will commission a study to help the government to understand the potential effects of the TFS fee on the stakeholders and on the transport and logistics sector in general and come up with a reasonable fee structure.
5.7.3 CHALLENGES TO ACHIEVING REFORM RESULTS The success of the TFS depends on close coordination and effective dialogue between the GoG and private sector stakeholders, which has not always been the case. This was again demonstrated by legal issues that suddenly appeared on the agenda, potentially compromising the launch of the system in September, 2015. G4G is actively facilitating communication between stakeholders, however, the DEA needs to raise the level of commitment and take additional steps to ensure effective leadership of the process.
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 28 April 01 – June 30, 2015
5.8 BANKRUPTCY AND LIQUIDATION REFORM
Reformed bankruptcy regime to remove barriers to entrepreneurship, efficiently recycle REFORM OBJECTIVE assets back to productive use and restore viable businesses to financial health through business rescue.
5.8.1 PROGRESS AGAINST THE WORK PLAN SUPPORT PUBLIC PRIVATE DIALOGUE Insolvency Assessment. On May 8, 2015, G4G in collaboration with the MoJ, organized a working conference with its contributors in the form of a PPD to discuss in general terms the tentative results of the Diagnostic Assessment of Insolvency System of Georgia, to ensure that G4G had identified all major areas of concern and, importantly, that with limited understanding of the overall functioning of the Georgian legal system and broader economy, G4G had not misunderstood some critical issues. The event was attended by 27 representatives from government, (MoJ, National Bureau of Enforcement (NBE), RS) and the private sector (law firms and banks). Highlights of the discussion included the conceptual issues such as purpose of the Law on Insolvency, bottlenecks in the Law, such as inadequate description of the duties and powers of insolvency office holders, inconsistent treatment of security interests, NBE roles, trustees, etc. GOG CAPACITY STRENGTHENING Insolvency Assessment. During the reporting period, members of G4G consisting of G4G Chief of Party, Milo Stevanovich, G4G Regulatory Advisor, Tamar Buadze, and international bankruptcy expert, Robert Gourley, conducted a Diagnostic Assessment of Insolvency System of Georgia. Between April 15 and May 8, 2015, the team conducted a series of interviews with a number of people deeply familiar with the functioning of the Law in practice, such as the Deputy Minister of Justice, Head of Legal Drafting Department of MoJ, representatives of NBE and RS, Tbilisi City Court insolvency judges, representatives of banks, law firms, audit companies and insolvency experts. As part of a case study, G4G also interviewed the acting lawyer and rehabilitation manager of supermarket chain “Goodwill,” which is in rehabilitation proceedings. G4G team also studied reports and analyses recently performed by international organizations to determine whether deficiencies identified therein remain. The study was completed in June, 2015. It identified the basic areas in the Law and system which are not operating effectively or are not consistent with international best practices for insolvency systems and suggested recommendations for the reform of the system consistent with current and emerging international best practice and the needs of the current Georgian economy. As a part of the assessment, G4G also revised and provided comments on the proposed amendments being prepared by the working group within the MoJ, provided to the G4G team on May 22, 2015, after the conclusion of the field work. As a result, the assessment includes references to the proposed amendments as they relate to the issues raised. As a next step, G4G will present the findings and recommendations of the assessment to public and private sector representatives. PRIVATE SECTOR & CIVIL SOCIETY ORGANIZATIONS STRENGTHENING No specific activities are planned in this area. 5.8.2 PPD SUCCESSES AND LESSONS LEARNED The PPD event held on May 8, 2015, clearly demonstrated that there is a clear consensus among all parties about a need for insolvency system reform. The Deputy Minister of Justice, Mikheil Sarjveladze, confirmed MoJ’s readiness to move forward and closely collaborate with the private sector throughout the reform process. A second PPD event will be held to present and discuss the key findings of the Insolvency Assessment Report. 5.8.3 CHALLENGES TO ACHIEVING REFORM RESULTS Bankruptcy reform is a complex technical area that inherently affects more than one ministry (i.e. MoJ, MoESD, MoF). Failure to effectively engage these ministries and gain full and complete buy-in can delay or altogether thwart the effectiveness of the reform. The Re-Assignment of Deputy Minister Mikheil Sarjveladze may impact the momentum of reform.
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 29 April 01 – June 30, 2015
5.9 LAND OWNERSHIP REGISTRATION REFORM
Certainty, clarity and predictability in land rights that is crucial for effective economic REFORM OBJECTIVE development of land.
5.9.1 PPROGRESS AGAINST THE WORK PLAN SUPPORT PUBLIC PRIVATE DIALOGUE Legal Strategy PPD. Even though G4G planned to conduct several PPD events and round tables with public and private sectors’ and civil society stakeholders to discuss Pilot Land Registration Legal Strategy and the draft law, the key GoG counterpart, National Agency of Public Registry (NAPR) decided to postpone consultations due to lack of commitment on the GoG’s side regarding the starting date of the pilot project. GOG CAPACITY STRENGTHENING Preparation for Pilot. After several site visits to the pilot project municipalities and interviews with representatives of local government and farmers in the Governor’s Office, in the beginning of April, 2015, G4G completed the development of a Communication Strategy and Action Plan for the Land Registration Pilot Project. On April 22, 2015, G4G conducted the presentation on Land Registration Communication Strategy to the leadership of NAPR. G4G Communications Consultant, Konstantine Magradze, and Head of NAPR’s Public Relations Department, explained to the Chairmen of NAPR the approaches and strategies of communication campaign and related action plan and secure his consent on suggested solutions. The Communication Strategy and Action Plan for the Land Registration Pilot Project pursues a targeted approach and sets multiple goals for the land registration communication campaign that are specifically tailored to the needs of different groups of society. The strategy includes a message dissemination plan and defines the communication channels, including electronic, print and other media. The consultant also developed the design samples of brochures, pamphlets, banners, and billboards for the communication campaign. During the reporting period the draft Law on Pilot Registration of Land Titles and Improvement of Cadastral Data, prepared by G4G, was finalized by the Legal Drafting Department of the Ministry of Justice and submitted to Aleksandre Baramidze, the First Deputy Minister of Justice, who approved the draft and submitted it to the Minister of Justice for final approval. After final approval by the Minister, the draft will be submitted to the Government. All further activities in this area are contingent upon Parliamentary adoption of the draft law. PRIVATE SECTOR & CIVIL SOCIETY ORGANIZATIONS STRENGTHENING All activities in this area are contingent upon Parliamentary adoption of the Law on Pilot Registration of Land Titles and Improvement of Cadastral Data. 5.9.2 PPD SUCCESSES AND LESSONS LEARNED G4G was able to facilitate a consensus between civil society in the face of Transparency International and government on wide range of contentious technical issues surrounding the land registration. This resulted in a draft Law on Registration of Land Titles and Improvement of Cadastral Data to be soon submitted for Parliament’s approval. 5.9.3 CHALLENGES TO ACHIEVING REFORM RESULTS GoG did not submit the draft Law to the 2015 Spring Session of the Parliament as was originally planned, which will inevitably delay the start of the pilot project. As Parliamentary elections are coming closer, the GoG may lose interest towards the reform due to its high sensitivity.
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 30 April 01 – June 30, 2015
5.10 PENSION REFORM
Effective public dialogue on anticipated pension reform which is crucial to its acceptance REFORM OBJECTIVE by the public.
5.10.1 PROGRESS AGAINST THE WORK PLAN SUPPORT PUBLIC PRIVATE DIALOGUE No specific activities are planned in this area. GOG CAPACITY STRENGTHENING Public Outreach and Legal Drafting. G4G sponsored the MoF official member of the pension reform working group to attend the World Bank Pension Core Course, a two-week course held from April 27 through May 8, 2015. The course provided an in-depth understanding of the conceptual and practical issues involved in the design and implementation of pension and social security programs and linkages to social protection systems. PRIVATE SECTOR & CIVIL SOCIETY ORGANIZATIONS STRENGTHENING No specific activities are planned in this area. 5.10.2 PPD SUCCESSES AND LESSONS LEARNED None at present. 5.10.3 CHALLENGES TO ACHIEVING REFORM RESULTS Due to the sensitivity and complexity of the reform, GoG postponed pension reform implementation to 2017. G4G has to postpone its planned interventions accordingly. 5.11 CAPITAL MARKET REFORM
Effective public dialogue on anticipated capital market reform to stimulate participation by REFORM OBJECTIVE business community.
5.11.1 PROGRESS AGAINST THE WORK PLAN SUPPORT PUBLIC PRIVATE DIALOGUE Capital Market PPD. Following the release of the Capital Markets Diagnostic Study and Recommendations, G4G organized the first session of the PPD, which was welcomed by Vice Prime Minister, George Kvirikashvili and was attended by major policy-makers from MoF, MoESD, National Bank of Georgia, Parliament of Georgia as well as the donor community and private sector. G4G will organize three more PPD events on capital markets to facilitate the decision making process on the recommendations raised in the study. The results of the PPD will be reflected in the Capital Market Reform Master Plan. GOG CAPACITY STRENGTHENING Diagnostic Assessment. During the reporting period, intergovernmental Capital Markets Working Group has released the Capital Markets Diagnostic Study, which was prepared by Asian Development Bank (ADB) with support of G4G. The G4G capital markets team has contributed to the study by analyzing 21 commercial banks operating in the Georgian market to identify in what capacity banks can participate in the country’s capital market development and researched the linkages of Georgian commercial banks to the international clearance and settlement system. The team provided expertise on legislation on taxation of dividends and bond interest payments and taxation of investment funds, consolidated 2006-2014 trading data provided by Georgian Stock Exchange, and conducted market share calculations for on- exchange, off-exchange and share registry trades, as well as analysis of trading for the given period. In June, 2015, the English and Georgian versions of the study were posted on MoESD’s website for public review.
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 31 April 01 – June 30, 2015
PRIVATE SECTOR AND CIVIL SOCIETY ORGANIZATION STRENGTHENING No specific activities are planned in this area. 5.11.2 PPD SUCCESSES AND LESSONS LEARNED G4G received positive feedback from different ministries and state bodies involved in the capital markets reform as well as from the private sector on the results of the first PPD session. The meeting also confirmed high interest and engagement by all stakeholders towards reforming capital markets area.
5.11.3 CHALLENGES TO ACHIEVING REFORM RESULTS The major challenge is the conflicting interests that exist among different stakeholders involved in the Georgian capital market activities. G4G will engage all stakeholders in the dialogue to come to a consensus on key issues.
5.12 CROP INSURANCE REFORM
REFORM OBJECTIVE Immediate increase in access to finance for rural businesses.
5.12.1 PROGRESS AGAINST THE WORK PLAN SUPPORT PUBLIC-PRIVATE DIALOGUE No specific activities were implemented in this area. GOG CAPACITY STRENGTHENING Regulatory Impact Assessment. During the reporting period, G4G held several meetings with the leadership of Agricultural Projects Management Agency, as well as with First Deputy Minister of Agriculture. The representatives of the government highlighted the importance of RIA to be conducted on crop insurance model being developed with the support of KfW Development Bank. Following the request of the MoA and APMA, G4G announced a grant to conduct Crop Insurance RIA and awarded a competitive grant to ISET Policy Institute to implement for RIA implementation. The study will be conducted in Quarter 4. PRIVATE SECTOR AND CIVIL SOCIETY ORGANIZATION STRENGTHENING Crop Insurance Product Development. G4G will design the grant program based on the recommendations of KFW feasibility study “Agro Insurance in Georgia and Armenia,” to be released in late July, 2015. 5.12.2 PPD SUCCESSES AND LESSONS LEARNED None at present. 5.12.3 CHALLENGES TO ACHIEVING REFORM RESULTS The lack of consensus among key GoG and private sector stakeholders on “pool” mechanism may impede the law drafting and adoption process. The implementation of RIA will contribute to the building of this consensus and advocate for the particular model. 5.13 INNOVATION AND TECHNOLOGY POLICY
Immediate improvement on Innovation and Technology regime vital for Small and Medium REFORM OBJECTIVE Enterprise (SME) development and access to finance for innovation.
5.13.1 PROGRESS AGAINST THE WORK PLAN SUPPORT PUBLIC-PRIVATE DIALOGUE Innovation PPD and Innovation legislation review. On April 7, 2015, G4G and GITA held its coordination meeting on Innovations and Technology Policy in Georgia. Up to 40 participants of the PPD event from public sector, as well as CSOs and universities, discussed innovation policy issues and
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 32 April 01 – June 30, 2015
potential areas of coordination, expressing a readiness to cooperate with GITA on development of Innovation and Technology policy and Infrastructure. GITA leadership presented plans, strategy, and agency activities, including legislative and policy initiatives. G4G Advisor, Malkhaz Nikolashvili, delivered a presentation on international best practice for innovative entrepreneurship and policy development. In the upcoming quarter, G4G will continue consultations with GITA, the private sector, media and CSOs around the draft law and draft Innovation Strategy. G4G will also conduct the review of effects of the GoG incentives package designed to stimulate innovation and recommendations. In May, G4G representative Malkhaz Nikolashvili, participated in the Parliament’s Budget and Sectoral Economy Committee meeting, where GITA management successfully presented the plans of the agency to develop the Innovations and Technology reforms and infrastructure. In June, G4G and GITA conducted preparatory work for a joint PPD media event and site tour on Innovation and Technology, where journalists will have an opportunity to visit the innovation and fabrication laboratories and centers recently opened by GITA. Journalists will also become familiar with the country’s innovation and technology related reform. This event is planned to be held by the end of July.
GOG CAPACITY STRENGTHENING G4G has been actively cooperating with and helping GITA in development of innovation and technology policy. G4G representatives have been involved in all four working groups organized by GITA to facilitate: (1) Legislative Reforms; (2) Innovative Infrastructure; (3) Education and Science; and (4) PR and Publicity. In the end of June, 2015, GITA organized the first meeting of a Legislative Reforms Working Group where agency officially released the draft Law on Innovation Activities. The working group members were asked to submit the recommendations and comments. G4G will provide its feedback on draft Law on Innovations Activities in early July.
PRIVATE SECTOR AND CIVIL SOCIETY ORGANIZATION STRENGTHENING No specific activities were implemented within the reporting period.
5.13.2 PPD SUCCESSES AND LESSONS LEARNED None at present. Planned activities are in progress.
5.13.3 CHALLENGES TO ACHIEVING REFORM RESULTS Innovation is a relatively new policy area for Georgia, and it is not necessarily well or widely understood. G4G plans to facilitate the dialogue between state agencies and ministries inside government in order to accelerate the drafting and agreement process. As G4G engages on the topic, it will be important to continually define goals and parameters of the potential policy reform, in part to ensure that diverse stakeholders are evaluating options using similar assumptions and information.
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 33 April 01 – June 30, 2015
6.0 WORK PLAN OUTPUT TABLE
Component Activities Outputs Timing Comment Added Description Status by
1. Overall Institutionalized Framework for Public Consultation
1.1. Support Public 1.1.1. Support National PPD platform. (1) Conduct assessments to (1) Assessment In progress WP Feb-15 Grant issued to Private Dialogue identify the collaborative governance gaps and existing and Sep-15 EPRC on emerging national platforms (i.e. EBRD); (2) Develop an action assessment to plan to support development of a permanent public- identify the private dialogue platform. Such platform will be designed to collaborative include key affected subgroups. governance gaps (2) Action Plan In progress WP Feb-15 Action Plan will be Sep-15 issued under the grant mentioned above by end of September 1.1.2. Engage Media in the National PPD. (1) Identify constraints (1) Assessment In progress WP Feb-15 Grant issued to that economic journalists face in covering reforms; (2) Mobilize Sep-15 Innova Consulting and consult media professionals from different media sources to (GMCG LLC) on cover and report the reform in a more effective manner and to assessment of better monitor the government's performance in the reform constraints that implementation process; (3) Develop marketing activities such as economic journalists trainings and site visits (on specific reforms covered by face in covering Component 5). reforms (2) Convene working Completed WP Feb-15 Working group group of influential Sep-15 convened from 16 - economic journalists 20 journalists from (5-10 journalists) influential media outlets (3) Trainings and site In progress WP Feb-15 Two offsite trainings visits Sep-15 conducted 1.1.3. Engage Youth in the National PPD. (1) Identify youth (1) Map local youth Completed WP Jan-15 organizations to engage them in the policy-making processes; (2) organizations Sep-15 Build capacities of youth organizations' members to effectively communicate and advocate for reforms. (2) 2 to 4 round- In progress WP Jan-15 6 capacity building table/capacity building Sep-15 workshops conducted workshops
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 34 April 01 – June 30, 2015
Component Activities Outputs Timing Comment Added Description Status by
1.1.4. Engage Women in the National PPD. (1) Identify and (1) Map local gender Completed WP Feb-15 engage with local women associations/gender based organizations Sep-15 organizations (i.e. Institute of Policy Studies, Women's Union of Georgia, Women's Young Union and Democracy, etc.) To bring (2) 2-3 capacity In progress WP Feb-15 2 capacity building them into a coalition PPD platform. (2) Provide support to building workshops Sep-15 workshops conducted strengthen the engagement of women organizations in advocating followed with survey and playing leadership roles in the implementation of business on perceived self- enabling reforms. efficacy 1.1.5. Develop Reform Progress Tracking System. Assess options Assessment – System In progress WP Feb-15 Assessment will be for the online reform progress tracking system. Development and Sep-18 finalized in the next Implementation quarter 1.1.6. NEW: PPD Tracking System PPD tracking system In progress Q3 Jul-15 RFA issued, development and Sep-18 applications received, implementation grant implementation will start next quarter 1.2. GOG Capacity 1.2.1. Support National PPD platform. (1) Advocate and educate (1) 1-3 Workshops Postponed WP Apr-15 Initial roadmap on the Strengthening GoG officials to support development of a national PPD platform to Year 2 Sep-15 PPD platform on that includes subject matter subgroups. (Including expert trade issues was consultations with GoG officials); (2) Benchmark and analyze other developed. The countries' practices with study tour, if deemed appropriate. capacity building workshops and study tour will take place in Year 2 (2) Benchmarking (2) In WP Apr-15 Benchmarking study study; (3) Study tour progress Sep-15 in progress under the (3) Study grant on collaborative Tour governance gaps postponed to Year 2 NEW. Roadmap on In progress Q3 Jul-15 Initial roadmap on PPD platform on trade Sep-15 PPD platform on issues trade issues developed 1.2.2. Support National RIA Framework. (1) Build awareness of 2-3 Trainings In progress WP Aug-15 G4G has been RIA as an input to policy development and PPD; (2) Train GoG Oct-15 coordinating with officials to be better "consumers" of RIA and other policy analysis. other donors and PM office to avoid
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 35 April 01 – June 30, 2015
Component Activities Outputs Timing Comment Added Description Status by overlapping, consultant selections process underway
Draft RIA Planned WP Aug-15 G4G has been Methodology Oct-15 coordinating with other donors and PM office to avoid overlapping, consultant selections process underway 1.3. Private Sector 1.3.1. Develop Reform Progress Tracking System. Engage CSO in Design of reform In progress WP Jun-15 RFA issued, & Civil Society the development of an online reform progress tracking system and progress tracking Sep-15 applications received, Organizations public information channel to enable the public to monitor the system grant implementation Strengthening progress of reforms. will start next quarter 1.3.2. Engage Media in the National PPD. (1) Design and conduct (1) 1-3 trainings In progress WP Mar-15 One Training on G4G training aimed at improving the economic knowledge of journalists Sep-15 supported reforms and increasing the frequency of economic reporting related to business enabling environment, water resource management and (2) Coffee & In progress WP Mar-15 One “Coffee & electricity trading policy; (2) Conduct informal round tables Conversation Sep-15 Conversation" ("Coffee & Conversation" sessions) on general PPD issues. sessions session on TFS 1.3.3. NEW: Engage women in PPD. Strengthen women’s Conference Completed Q2 March-15 Conference leadership in the policy making process on economic growth. “Women’s Role in Economic Growth and Policy Development” took place on March 31, 2015 1.3.4. NEW: Engage business associations in PPD. Capacity 1-2 workshops Completed Q2 Mar-15 Two capacity building building workshops for Georgian business associations. Sept-15 workshops conducted
2. Energy Strategy Reform
2.1. Support Public 2.1.1. PPD on Energy Strategy Reform. Inform private sector Consultations Completed WP Mar-15 G4G held Private Dialogue representatives on Energy Strategy Reform (including responding Jun-15 consultations with to ad hoc inquiries). MoE on PPD strategy 2.1.2. PPD on Energy Strategy Reform. Support Ministry in 1-2 PPD events Planned WP Mar-15 conducting a roundtable with several private sector Sep-15 representatives and participate in the event. USAID | Governing for Growth (G4G) in Georgia Quarterly Report 36 April 01 – June 30, 2015
Component Activities Outputs Timing Comment Added Description Status by
2.2. GOG Capacity 2.2.1. MoE capacity building on Energy Strategy. Support (1) Draft BAU Completed WP Jan-15 - Strengthening Analytical Department of MoE in development of assumptions for Mar-15 Business-As-Usual and building scenarios for MARKAL Georgia (standard energy sector analysis software). (2) Assumptions Completed WP Jan-15 Report Mar-15 2.2.2. MoE capacity building on Energy Strategy. Support Energy (1) Consultations Completed WP Oct-14 First round of Strategy development process (attending working group meetings, Mar-15 consultations was providing immediate commentary and technical advice). completed. Second round of consultations will be conducted once first draft of Energy Strategy is developed (2) Meetings Completed WP Oct-14 Reports were Summary Report Mar-15 completed for the first round of consultations 2.2.3. MoE capacity building on Energy Strategy. Conduct national Survey report and In progress WP Mar-15 Grant RFA issued to survey on use of primary energy sources (including commercial data set Sep-15 conduct national and industrial consumers). survey on use of primary energy sources 2.3. Private Sector 2.3.1. CSOs capacity building on Energy Strategy. Conduct one or 1-3 workshops with Postponed WP Apr-15 Workshops will take & Civil Society more meetings of interested CSOs to review the draft strategy and CSOs to Year 2 Dec-15 place once first draft Organizations help bring comments to consensus. of Energy Strategy is Strengthening developed 3. Electricity Trading Mechanism (ETM)
3.1. Support Public 3.1.1. ETM PPD. Provide Technical assistance and advocacy (1) 1-2 PPD events Completed WP Jan-15 2 PPD events Private Dialogue support to MoE to conduct PPD to discuss opportunities to Sep-15 conducted and 3 address market development issues. PPD advocacy events conducted for the market players (2) Stakeholder Completed WP Jan-15 Consultations with consultations Sep-15 donors/implementers, private sector, GoG and banks conducted
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 37 April 01 – June 30, 2015
Component Activities Outputs Timing Comment Added Description Status by
3.2. GOG Capacity 3.2.1. No activities planned. Strengthening 3.3. Energy 3.3.1. ETM capacity building. Training and capacity building of 4-5 Training Sessions In progress WP Mar -15 2 Trainings held for (Electricity) Trading GSE, ESCO, GNERC and MoE on international best practices on Sep-15 GNERC Policy Governance competitive electricity markets. 3.3.2. Technical assistance to MoE. (1) Provide comments on MoE (1) Comments In progress WP Dec-14 First Version of ETM developed ETM Road Map and Annual Work Plan; (2) Arrange Sep-15 Road Map developed regular steering committee meetings; (3) Comment on MoE- developed ETM-related primary and secondary legislation. (2) Steering In progress WP Dec-14 ETM Simulation Committee meetings Sep-15 Working group summary meetings will commence by the end of July 3.3.3. Technical assistance to ESCO. (1) Provide comments on (1) Comments In progress WP Jan-15 Comments on Daily proposed MO (ESCO) developed Market Rules; (2) Suggest Sep-15 Trading proposal was revisions to implementation of Daily Trading; (3) Monitor progress submitted to ESCO of trading software development in collaboration with WB. (2) Recommendations In progress WP Jan-15 Sep-15 3.3.4. Technical assistance to TSO (GSE). (1) Suggest revisions (1) Comments Completed WP Dec-14 Report on TYNDP on Day Ahead Planning development (rules, procedures); (2) Sep-15 completed Monitor progress of trading software development; (3) Comment on TSO’s TYNDP. (2) Recommendations Completed WP Dec-14 Report on Capacity Sep-15 Allocation and Congestion Management and draft next steps for Day Ahead Planning development completed 3.3.5. Technical assistance to GNERC. (1) Comment on Market (1) Comments In progress WP Dec-14 Monitoring Plan and draft procedures developed by GNERC; (2) Sep-15 Monitor harmonization with Turkey and SEE Countries. (2) Recommendations Completed WP Dec-14 Recommendations Sep-15 on transmission reliability, connection and monitoring provided
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 38 April 01 – June 30, 2015
Component Activities Outputs Timing Comment Added Description Status by
NEW: 2 Capacity Completed Q2 Mar-15 2 Capacity Building Building Workshops Sep-15 Workshops conducted 3.3.6. Private sector market players support: Provide Trainings on 1-5 Trainings Completed WP Jan-15 5 technical trainings ETM development to the private sector players. Sep-15 were provided during PPD advocacy events (WP #.3.1.1.) 3.4. Private Sector 3.4.1. Women integration in energy sector. Engage NGO to (1) Survey In progress WP Feb-15 Grant re-announced & Civil Society conduct gender survey in the energy sector and hold a workshop July-15 due to the poor Organizations on Role of Women in the Energy Sector. participation in the Strengthening competition, adjusted RFA pending USAID approval, grant will be issued next quarter (2) Workshop followed Postponed WP Feb-15 See section above with survey on to Year 2 Jun-15 perceived self-efficacy 3.4.2. Promotion of Energy Sector Associations. Conduct Energy informal group Completed WP Feb-15 individual and joint meetings with private sector market players to established Sep-15 discuss opportunities to address market development issues through the development of sector organizations (associations, unions, coalitions etc.). 3.4.3. Youth integration in ETM policy development. Hold Conference Completed WP Apr-15 The conference will conference of young energy sector specialists on energy trading. May-15 took place on April 29, 2015
4. Water Resource Management Reform
4.1. Support Public 4.1.1. Water Resource Management Green Paper PPD. Hold 2-4 PPD events In progress WP May-15 Grant on Green Private Dialogue consultations on Green Paper (water sector gap analysis) with Sept-15 Paper development GoG stakeholders, CSOs, local governments. issued to REC, PPD events will be conducted next quarter
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 39 April 01 – June 30, 2015
Component Activities Outputs Timing Comment Added Description Status by
4.2. GOG Capacity 4.2.1. Water Resource Management PPD capacity building. 2-3 Workshops Completed WP Jun-15 2 capacity building Strengthening Conduct workshop to the Ministry of Environment and Natural Sep-15 workshops conducted Resource Protection on international best practices for involving CSOs in development of green papers, white papers and draft legislation. 4.2.2. Water Resource Management capacity building. (1) Provide 2-3 Workshops Completed WP Jun-15 1 workshop for training to NALAG (National Association of Local Authorities of (2) Comments Sep-15 NALAG and 1 Georgia), NEA (National Environmental Agency) and EIEC workshop for NEA (Environmental Information Education Center) on how to prepare conducted and deliver position papers on water resource planning and management; (2) Provide comments on position papers developed by NALAG or other CSOs.
4.2.3. NEW: Capacity building to United Amelioration Systems NEW: Report on key In progress Q2 May -15 First draft of irrigation Company of Georgia by developing the key concepts to be used in concepts to be Dec-15 tariff best the tariff methodology relying on international best practices for included in tariff international practice setting tariffs for irrigation and drainage. methodology overview prepared
4.3. Water 4.3.1. Water Sector Assessment. Conduct assessment of water Assessment Completed WP Dec-14 Resource sector, mapping stakeholders, discussion initiation with Jan-15 Management stakeholders, and identification of main directions. 4.3.2. Water Sector Data Assessment. (1) Conduct assessment of Report on water In progress WP Feb-15 First report on Pilot sources of data, existing database structure, data inflow and resources database Sep-15 Watershed Selection consistency, finalize the database structure; (2) Identify type of structure Criteria and Selection data to be consistent to requirements set by working group or Process Developed group of key stakeholders. Report on Existing Water Quantitative and Qualitative Data for Aragvi River Basin Developed 4.3.3. Fresh water resource management training. Develop (1) Curriculum In progress WP Mar-15 curriculum and conduct training on fresh water resource Sep-15 management to representatives of municipalities and Central Government (such as NALAG, Environmental Information and (2) 5 Training In progress WP Mar-15 2 trainings on fresh Education Center (EIEC) under the MENRP. sessions Sep-15 water resource management conducted, 3 planned for next quarter
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 40 April 01 – June 30, 2015
Component Activities Outputs Timing Comment Added Description Status by
4.4. Private Sector 4.4.1. Water Resource Management Green Paper. Develop Green Paper In progress WP Apr-15 Grant on Green & Civil Society Green Paper - Sectorial Gap Analysis. Sep-15 Paper development Organizations issued to REC, Strengthening Green Paper will be developed next quarter 4.4.2. Fresh water resource management training. Conduct 5 Training sessions In progress WP Mar-15 RFA issued, two trainings to CSOs on fresh water resource management planning Sep-15 training sessions will and implementation and examples of best international practices; take place next provide international examples of green papers and work on quarter developing a green paper on fresh water resource management.
5. Tax Enforcement and Administration
5.1. Support Public 5.1.1. Tax Payment Simplification. Conduct public outreach to (1) 2 to 3 PPD events In progress WP May-15 One PPD conducted; Private Dialogue taxpayers on tax payment simplification reform and preparation of Nov-15 end date was brief instructions and guidelines for taxpayers. amended from June, 2015 to November, 2015 due to GoG’s decision to launch the system in Dec. 2015 (2) Taxpayer In progress WP May-15 End date was Guidelines Jul-15 amended from June 2015 to July 2015 due to RS’ delay in reviewing the document 5.1.2. Tax Payment Simplification. Produce video tutorial for Video tutorial Cancelled Q1 May-15 Based on MoF taxpayers on new payment system. Jun-15 request video tutorial will be converted into promotional video Promotional Video Planned Q2 Sep-15 Range of dates was Nov-15 amended from May- Sep, 2015 to Sep- Nov, 2015 due to GoG’s decision to launch the system in Dec, 2015
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 41 April 01 – June 30, 2015
Component Activities Outputs Timing Comment Added Description Status by
5.1.3. Tax Code Review. Conduct PPD events on Tax Policy (Tax 2 PPD events In progress WP Jan-15 First PPD event Code) Reform with the involvement of business associations Sep-15 planned for June 17, (AmCham, BAG, ICC, and GSMEA). 2015 was postponed to July 9, 2015 due to Tbilisi flood; second PPD on public ruling will be conducted on July 21 5.1.4. Tax Code Review. Support Tax Code Review working At least 3 working Completed WP Mar-15 group meetings to discuss legal framework improvement package. group meetings Sep-15 5.2. GOG Capacity 5.2.1. Tax Payment Simplification. (1) Facilitate a review of the Legislative package Completed WP Oct-14 Building existing high-level framework of the reform and its key Dec-14 components, assisting the MoF and RS officials to shape the final design of the reform. (2) Update the draft package of legislative amendments, including proposed changes and amendments to the Tax Code and Budgetary Code of Georgia. 5.2.2. Tax Payment Simplification. Provide support to business Report Completed WP Nov-14 process reengineering. Dec-14 5.2.3. Tax Payment Simplification. Conduct targeted trainings of (1) 4-5 training Completed WP Jan-15 frontline RS staff and preparation of methodological instructions. sessions Jun-15 (2) Methodological In progress WP Jan-15 End date was instructions Jul-15 amended from June 2015, to July 2015, due to RS’ delay in reviewing the document 5.2.4. Tax Code Review. Provide support to RS and MoF in Recommendations on Completed Q1 Jan-15 developing the action plan for the approximation of Tax Code with VAT Approximation Apr-15 EU VAT Directive. Action Plan 5.2.5. Tax Code Review. Provide support in updating amendments Tax code Completed WP May-15 Tax Code package to the Tax Code based on EU and other best practices amendments package Sep-15 amendments on and facilitate their adoption. for submission to Reverse Charge VAT Parliament and Temporary Admission adopted on May 1, 2015
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 42 April 01 – June 30, 2015
Component Activities Outputs Timing Comment Added Description Status by
5.2.6. Tax Code Review. Provide support in drafting of public Draft public rulings Completed WP Mar-15 rulings on problematic issues of tax legislation. Sep-15 5.2.7. NEW: Tax Code Review. Provide advisory support on Comparative legal Planned Q3 Aug-15 Estonian Corporate Income Tax (CIT) model. analysis and Oct-15 recommendations on legislative changes Workshop Planned Q3 Aug-15 Oct-15 5.3. Private Sector 5.3.1. Tax Code Review. Build capacity and train small business 2-5 small (sector) In progress WP Apr-15 End date was & Civil Society association on advocacy on tax issues in coordination with CSOs business associations Nov-15 amended from Organizations (AmCham, ICC, and BAG). trained September, 2015 to Strengthening November, 2015 due to delayed start of the grant project (no responses were received to RFA and G4G re-announced the grant) 5.3.2. Tax Code Review. Conduct of RIA on selected tax code RIA report In progress WP July-15 End date was changes. Engage think tanks to conduct RIA. Oct-15 amended from September, 2015 to October, 2015 delayed decision on RIA subject; RIA will be conducted on Estonian CIT model 5.3.3. Tax Code Review. Conduct business perception survey Business perception In progress WP May-15 End date was (baseline and follow up) in coordination with CSOs (AmCham, survey Nov-15 amended from ICC, BAG). September, 2015 to November, 2015 due to late start of the grant project
1. Customs Administration and Enforcement
6.1. Support Public 6.1.1. Customs Code. Organize PPD events on draft Customs 3-4 PPD events In progress WP Mar-15 2 PPDs conducted, Private Dialogue Code to be released for public comments in December 2014. Sep-15 one more planned in September
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 43 April 01 – June 30, 2015
Component Activities Outputs Timing Comment Added Description Status by
6.2. GoG Capacity 6.2.1. Authorized Economic Operators (AEO) Concept. Conduct (1) Analysis Completed WP Feb-15 Organizations analysis of EU best practice and study visit to selected EU Sep-15 Strengthening locations. (2) Study tour In progress WP Jun-15 AEO Study Tour to Aug-15 Lithuania scheduled on July 13-17 6.2.2. Authorized Economic Operators (AEO) Concept. Develop Recommendations Completed WP Jun-15 recommendations based on EU guidelines. Sep-15 6.2.3. Customs Post-Clearance Control. Conduct trainings and 10 officers trained In progress WP Mar-15 Customs Post- simulated field audit for RS audit staff. Sep-15 Clearance Control training planned for July 6-10 6.2.4. Customs Post-Clearance Control. Conduct diagnostic Recommendations In progress Q2 May-15 Customs Post- assessment and develop recommendations on implementation of Sep-15 Clearance Control EU standards on customs post-clearance control by international diagnostic consultant. assessment planned for July 6-10 6.2.5. Customs Post-Clearance Control. Support offsite training of RS Audit staff trained Completed WP Apr-15 In February WCO Georgian customs auditors on EU best practice customs Sep-15 conducted one-week administration. training session on Post-Clearance Customs Control for 14 RS customs officers. Any future possible capacity building activities by G4G in this area will follow the diagnostic assessment 6.3. Private Sector 6.3.1. Customs Code. Develop Customs Code commentaries and Customs Code Postponed WP Oct-15 Contingent upon & Civil Society conduct outreach activities to increase private sector awareness commentary to Year 2 Sep-16 adoption of Customs Organizations on new customs legislation. Engage business association (e.g. Code Strengthening Freight-Forwarders Association) to develop Customs Code commentaries (Guidebook).
2. Trade Facilitation/Transport and Logistics
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 44 April 01 – June 30, 2015
Component Activities Outputs Timing Comment Added Description Status by
7.1. Support Public 7.1.1. DCFTA. Facilitate GoG's thematic DCFTA awareness 3-5 public awareness Completed WP Nov-14 3 PPDs held Private Dialogue raising meetings in coordination with MoESD and business events Apr-15 associations in G4G supported policy areas.
7.1.2. DCFTA. Develop and print leaflets for DCFTA public 2,000 leaflets printed In progress WP Jan-15 650 leaflets were awareness. Sep-15 printed 7.1.3. DCFTA. Develop DCFTA public awareness video. Video In progress Q1 May-15 The first draft of the Jul-15 video developed 7.1.4. Trade Facilitation System (TFS). Conduct PPD on TFS 1-2 PPD Events Completed WP Jan-15 TFS Steering development and implementation issues. Feb-15 Committee meeting conducted on April 8, 2015
7.1.5. NEW: TFS Tariff Structure and Economic Impact Study and Planned Q3 Aug -15 Assessment recommendations Oct -15 7.2. GOG Capacity 7.2.1. No specific activities are planned. Strengthening 7.3. Private Sector 7.3.1. DCFTA. Support production of plain language guide (online DCFTA Guide In progress WP Mar-15 End date was & Civil Society version and 300 printed copies) for private sector on rules of origin Nov-15 amended from Organizations and customs tariffs and quotas for Georgian produced goods September, 2015 to Strengthening under DCFTA assuming no guide exists. November, 2015 due to re-announcement of the tender 7.3.2. NEW: DCFTA. Facilitate analysis-based discussion on 3 Policy Papers on In progress Q3 Apr-15 DCFTA issues. Selected DCFTA Sep-15 topics
3. Bankruptcy and Liquidation
3.1. 8.1. Support Public 8.1.1. Insolvency Assessment. Conduct PPD on the need for 1-3 PPD events Completed WP Mar-15 One PPD conducted; Private Dialogue insolvency reform as a necessary tool for entrepreneurship. Jul-15 another one planned 8.2. GOG Capacity 8.2.1. Insolvency Assessment. Analyze legislation and existing (1) Assessment Completed WP Apr-15 Strengthening practice on insolvency rules and procedures, identify problematic Jun-15 issues and develop recommendations. (2) Recommendations Completed WP Apr-15 Jun-15
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 45 April 01 – June 30, 2015
Component Activities Outputs Timing Comment Added Description Status by
8.3. Private Sector 8.3.1. No specific activities are planned. & Civil Society Organizations Strengthening
4. Land Ownership, Registration and Titling
9.1. Support Public 9.1.1. Legal Strategy PPD. (1) Facilitate workshops for civil sector 2-3 workshops In progress WP Jan-15 One PPD event Private Dialogue representatives in the process of developing the Legal Strategy Sep-15 conducted. Other and draft law; (2) Engage TI to lead the process. PPD events will follow once GoG makes political decision to move forward with the reform 9.2. GOG Capacity 9.2.1. Land Registration Strategy. (1) Provide comments on Land (1) Comments Completed WP Nov-14 Strengthening Registration Pilot Project Strategy and Action Plan via WB peer Nov-14 review; (2) Develop detailed draft implementation task list for the pilot project. (2) Implementation Completed WP Nov-14 task list Nov-14 9.2.2. Preparation for Pilot. (1) Support expanding legal strategy Draft Legal strategy Completed WP Nov-14 and draft law beyond agricultural land; (2) Propose customized and draft law Jan-15 dispute mitigation and resolution mechanisms for pilot land registration. 9.2.3. Preparation for Pilot. Support in development of Draft Communication Completed WP Jan-15 Communication Strategy and Action Plan for the pilot project. Strategy and Action Mar-15 Plan 9.3. Private Sector 9.3.1. Preparation for Pilot. Deliver trainings for mediators involved 2 Mediators trained Planned WP Jun-15 This activity is & Civil Society in pilot project implementation through engaging Tbilisi State Nov-15 contingent upon Organizations University (TSU) Mediation Center. starting of pilot Strengthening project by NAPR
9.3.2. Preparation for Pilot. Conduct trainings to community Community leaders Planned WP Mar-15 This activity is leaders on effective public outreach during the implementation of trained Sep-15 contingent upon the pilot project. starting of pilot project by NAPR
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 46 April 01 – June 30, 2015
Component Activities Outputs Timing Comment Added Description Status by
Pilot Implementation. Monitor land pilot project implementation and Monitoring report and Planned WP Mar-15 This activity is collection of lessons learned through engagement of NGO. lessons learned Sep-15 contingent upon starting of pilot project by NAPR
5. Pension Reform
10.1. Support 10.1.1. PPD on Pension. Facilitate PPD event on pension reform 3-5 PPD meetings Postponed WP May-15 Due to the GoG’s Public Private through the involvement of business associations. to Y2 Sep-15 decision to postpone Dialogue the implementation of the new pension 10.2. GOG 10.2.1. Public Outreach. Provide advisory support in designing the Recommendations to Postponed WP Feb-15 system to 2017, G4G Capacity public outreach campaign for the reform. GoG on public to Y2 Mar-15 plans to move this Strengthening outreach campaign activity to Year 2 of 10.2.2. Regulatory Impact Assessment. Conduct RIA on Pension RIA Report Postponed WP Apr-15 the project Reform jointly implemented by think-tank and MoESD. to Y2 Jul-15 10.2.3. Legal drafting. Provide assistance in drafting the Comments to the draft Postponed WP Jul-15 legislation on pension scheme. to Y2 Oct-15 10.2.4. Capacity building of GoG officials on designing pension 1 MoF staff trained Completed Q2 April-15 reforms. Sending GoG staff involved in the reform process to WB’s May-15 two-week Pension Core Course. 10.3. Private Sector 10.3.1. Regulatory Impact Assessment. Conduct RIA on Pension RIA Report Postponed WP Apr-15 Due to the GoG’s & Civil Society Reform jointly implemented by think-tank and MoESD. to Y2 Jul-15 decision to postpone Organizations the implementation of Strengthening the new pension system to 2017, G4G plans to move this activity to Year 2 of the project
6. Capital Market Reform
11.1. Support 11.1.1. Capital Market PPD. Conduct PPD event to identify policy PPD event Completed WP Jan-15 One PPD event Public Private issues related to capital market. Jun-15 conducted. Three Dialogue PPD events will be in July, 2015
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 47 April 01 – June 30, 2015
Component Activities Outputs Timing Comment Added Description Status by
11.2. GOG 11.2.1. Diagnostic Assessment. Provide input to Diagnostic Input to Diagnostic Completed WP Jan-15 Capacity Assessment led by ADB to identify the constraints preventing Assessment Jul-15 Strengthening companies from listing on GSE and utilizing capital market opportunities through providing legal and analytical human resources. 11.3. Private Sector 11.3.1. No specific activities are planned. & Civil Society Organizations Strengthening
7. Crop Insurance
12.1. Support 12.1.1. Crop Insurance PPD. Conduct public-private round tables 2-5 PPD events Completed WP Dec-14 2 PPD events Public Private on draft crop insurance law. Sep-15 conducted Dialogue 12.2. GOG 12.2.1. Regulatory Impact Assessment. Conduct RIA on crop RIA Report In progress WP Apr-15 G4G selected ISET Capacity insurance reform jointly implemented by a think-tank and MoA. Sep-15 policy institute to Strengthening conduct RIA 12.3. Private Sector 12.3.1. Crop Insurance Product Development. Provide support to (1) Consultations Postponed WP Jan-15 Grant program will be & Civil Society crop insurance product development through grant to provide TA to Y2 Sep-15 design according to Organizations and trainings to farmer organizations to develop crop insurance KFW Feasibility Strengthening products. (2) Training Postponed WP Jan-15 Study and Crop to Y2 Sep-15 Insurance model selected by GoG 12.3.2. Regulatory Impact Assessment. Conduct RIA on Crop RIA Report In progress WP Apr-15 G4G selected ISET Insurance Reform jointly implemented by think-tank and MoA. Sep-15 policy institute to conduct RIA
8. Innovation and Technology/SME Policy
13.1. Support 13.1.1. Innovation PPD. Conduct PPD event on Innovation Law 2 PPD Events In progress WP Dec-14 PPD event Public Private and SME policy and/or dialogue. Jul-15 conducted, the Dialogue second to be conducted by the end of July 13.1.2. Innovation legislation review. Conduct review the effect of Review report In progress WP Dec-14 GoG incentives package designed to stimulate innovation and Sep-15 recommendations.
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 48 April 01 – June 30, 2015
Component Activities Outputs Timing Comment Added Description Status by
13.2. GOG 13.2.1. No specific activities are planned. Capacity Strengthening 13.3. Private Sector 13.3.1. No specific activities are planned. & Civil Society Organizations Strengthening
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 49 April 01 – June 30, 2015
ANNEX 1: PMP INDICATORS QUARTERLY RESULTS
Cumulative Indicator Q3 Cumulative Results3 2015 Target Target
1.1 Number of public institutions or CSOs with an established public engagement DCFTA PPD Mechanism at the MoESD; 1 3 mechanism through G4G support. Journalists Working Group. Short clarification: The indicator will count only public or CSOs institutions that have an Q3, 2 mechanisms established. institutionalized platform for permanent PPDs, including institutions related to the 3rd and 4th components. 1.2 Progress toward identification, drafting, approval and implementation of reforms Q3, 45 completed steps. 10 40 through a consultative process as a result of USAID assistance. (USAID Indicator) Short clarification: The indicator will count completed steps of policy process related to the targeted reforms, including reforms related to the 3rd and 4th components. Analysis Land Registration reform; Tax Payment N/A N/A Reform; Insolvency System Reform; Capital Market System Reform (Law on Accounting and Auditing; Law on Entrepreneurs); Concept on Authorized Economic Operators; VAT EU Approximation Action- Plan; Tax Public Ruling; Law on Innovation Activates; Georgian Energy Policy; 10 Years Network Development Plan; Georgian Turkey Intergovernmental Agreement (IGA); GRID Code; Amendments to Energy Market Rules; Water Resource Management Law. Q3, 15 completed steps.
33 Q3 cumulative data includes cumulative results for the Q1, Q2 and Q3 periods.
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 50 April 01 – June 30, 2015
Cumulative Indicator Q3 Cumulative Results3 2015 Target Target
Stakeholder consultation/public debate Law on Electricity and Natural Gas; Land N/A N/A Registration Reform; Tax Payment Reform; Tax Public Ruling; Georgian Energy Policy; Law on Innovation Activates; 10 Years Network Development Plan; Georgian Turkey Intergovernmental Agreement (IGA); GRID Code; Amendments to Energy Market Rules; Water Quality and Resource Management Guidelines. Q3, 12 completed steps. Drafting or revision Law on Electricity and Natural Gas; Land N /A N/A Registration reform; Tax Payment Reform; Tax Public Ruling; Georgian Energy Policy; Law on Innovation Activates; 10 Years Network Development Plan; Georgian Turkey Intergovernmental Agreement (IGA); GRID Code; Amendments to Energy Market Rules; Water Quality and Resource Management Guidelines. Q3, 12 completed steps. Approval (legislative or regulatory) Tax Payment Reform; Law on Electricity and N/A NONE Natural Gas; Georgian Energy Policy; Georgian Turkey Intergovernmental Agreement (IGA); GRID Code; Amendments to Energy Market Rules. Q3, 6 completed step. Full and effective implementation Q3, no completed steps. N/A N/A 1.3 Number of agricultural and nutritional enabling environment policies completing the Q3, 3 completed steps. 3 10 following processes/steps of development as a result of G4G assistance in each case (Stage 1/2/3/4/5). (USAID FTF Indicator) Short clarification: The indicator will count completed steps of policy process related to the targeted agricultural and nutritional enabling environment policies. Analysis Land Registration reform. 1 3 Q3, 1 completed step. Stakeholder consultation/public debate Land Registration reform. 1 2 Q3, 1 completed step.
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 51 April 01 – June 30, 2015
Cumulative Indicator Q3 Cumulative Results3 2015 Target Target
Drafting or revision Land Registration reform. 1 2 Q3, 1 completed step. Approval (legislative or regulatory) Q3, no completed steps. 2 Full and effective implementation Q3, no completed steps. 1 1.4 Number of policy areas on which PPD events were initiated through G4G support or Tax Payment Reform; Food Safety Reform 4 21 through G4G supported platforms. under DCFTA; Foreign Land Ownership; Short clarification: The indicator will count the number of policy areas on which PPDs were Crop Insurance Development; initiated through G4G support or through using G4G supported platforms, including reforms Establishment of Consolidator for Small related to the 3rd and 4th components. Under PPDs we assume thematic meetings with Hydropower Plant; DCFTA Policy Areas; the participation of all major stakeholders, such as GoG, CSOs and private sector Customs Legislation; Trade Facilitation representatives. System (TFS); Insolvency System; Water Resource Management; Competitive Energy Markets; Innovation Policy; Capital Market Reform. Q3, 13 policy areas.
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 52 April 01 – June 30, 2015
Cumulative Indicator Q3 Cumulative Results3 2015 Target Target
1.5 Number of the PPD events conducted through G4G support. PPD on Tax Payment Reform, November 11 71 Short clarification: The indicator will count PPD events conducted through G4G support, 19, 2014; including PPDs related to the 3rd and 4th components. Under PPDs we assume thematic PPD on Food Safety Reform under DCFTA, meetings with the participation of major stakeholders, such as GoG, CSOs and private 26 December, 2014; sector representatives. The indicator will disaggregate the PPDs according to the regions PPD on Foreign Land Ownership, February where the PPDs took place. 13, 2015; PPD on Crop Insurance Development, Current Challenges and Perspectives, February 10, 2015; PPD on Establishment of Consolidator for Small Hydropower Plant, March 11, 2015; PPD on DCFTA Awareness Raising Event, March 23, 2015. (In Ozurgeti); PPD on DCFTA Awareness Raising Event, March 24, 2015. (In Poti); PPD on Customs Legislation, March 26, 2015; PPD on Women's Role in Economic Growth and Policy Development, March 31, 2015; PPD on Developing Competitive Energy Market, April 2, 2015; PPD on Trade Facilitation System, Fifth Steering Committee Meeting, April 8, 2015; PPD on Innovations and Technology Development, Coordination Meeting, April 7, 2015;
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 53 April 01 – June 30, 2015
Cumulative Indicator Q3 Cumulative Results3 2015 Target Target
PPD on Georgian insolvency System, May 8, 2015; PPD on Customs Issues, April 13, 2015; PPD on TFS with freight-forwarders, April 20, 2015; PPD on Water Resource Management, June 9, 2015. (In Dusheti); PPD on Water Resource Management, June 24, 2015. (In Mtskheta); PPD on Capital Market Reform, June 31, 2015. Q3, 18 PPDs among them 4 PPDs were implemented in the Regions. Q2, 9 PPDs (among them 2 outside of Tbilisi). 1.6 Percentage of business operators perceiving economic governance as fair and TBD TBD transparent. Short clarification: This perception indicator measures a business owner and /or business operator’s opinion on economic governance fairness and transparency. Business owner- operator is a person that owns and runs day-to-day operations. Owner operators are found in industries like commercial agriculture, tourism, logistics, maintenance, repair etc. Economic governance is related to property rights, regulatory functions, corruption, fiscal management, tax administration, or overall macroeconomic policy.
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 54 April 01 – June 30, 2015
Cumulative Indicator Q3 Cumulative Results3 2015 Target Target
2.1 Number of Governmental institutions (including Legal Entities of Public Law, State RS (4 times through following activities: Tax 10 46 Owned Enterprises) receiving capacity building assistance through G4G support to Payment Simplification; VAT Approximation develop, implement, and enforce the targeted reforms. Action plan; Public Ruling; Concept on Short clarification: The indicator will count each governmental institution that received Authorized Economic Operators); capacity building assistance through G4G support to develop, implement, and enforce the MoF (1 time through following activity: TFS targeted reforms. If the institution received different types of assistance, each will be implementation); counted separately. The indicator also will capture governmental institutions classified NAPR (1 time through following activity: under 3rd and 4th components. Land Registration Reform); GITA (1 time through following activity: Law on Innovations Drafting); DEA (1 time through following activity: TFS implementation); NAPR (2 times through training activities); GTA (1 time through training activity); MoE (2 times through training activities); GNERC (2 times through training activities); ESCO (2 times through training activities); GSE (2 times through training activities); MENPR (1 time through training activities); Georgian Amelioration (2 times through training activities). Q3, 22 Institutions. 2.2 Number of the legal acts, policy documents, policy related documents, measures or Land Registration reform; Tax Payment 5 33 programs provided or substantially contributed by the targeted GoG institutions through Reform; Insolvency System Reform; Capital G4G assistance. Market System Reform (Law on Accounting Short clarification: The indicator will count every legal act, policy documents, policy related and Auditing; Law on Entrepreneurs); documents, measures or programs provided or substantially contributed to a GoG Concept on Authorized Economic institution through G4G assistance. The indicator also will include the legal acts, policy Operators; VAT EU Approximation Action- documents, policy related documents, measures or programs related to the 3rd and 4th Plan; Tax Public Ruling; Law on Innovation components. Activates; Georgian Energy Policy; 10 Years Network Development Plan; Georgian Turkey Intergovernmental Agreement (IGA); GRID Code; Amendments to Energy Market Rules; Water Resource Management Law. Q3, 15 policy documents.
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 55 April 01 – June 30, 2015
Cumulative Indicator Q3 Cumulative Results3 2015 Target Target
2.3 Number of participants in G4G supported trade and investment capacity building Workshop for electricity market players (12 80 460 trainings. (USAID Indicator) persons: 11 males and 1 female), December 40 M, 40 F 230 M,230 F Short clarification: The indicator will count every person from GoG, CSOs or private sector 17, 2014; receiving G4G supported trainings on trade and investment capacity building. If one person Workshop on Electricity Trading Mechanism receives several trainings on different issues, each instance will be counted separately. Implementation (5 persons: 4 males and 1 The indicator also will include corresponding trainings relevant to the 3rd and 4th female) December 26, 2014; components. The indicator data will be disaggregated based on Gender. Workshop on ETM Development (25 persons: 15 males and 10 female) March 11, 2015; Workshop for electricity market players, 2nd workshop (20 persons: 16 males and 4 females), January 29, 2015; Workshop for electricity market players, 3rd workshop (7 persons: 5 males and 2 females), February 25, 2015; Connection Workshop for GNERC (15 persons: 10 males and 5 females), 11 March, 2015; On-job Training to MENRP on Improvement of Fresh Water Resource Management by GAMMA (9 persons: 4 males and 5 females), 12 February, 2015; Association Management Workshop (11 persons: 2 males and 9 females), 22-24 April, 2015; Coalition Building Workshop for associations (21 persons: 5 males and 16 females) 19- 21 April, 2015; Workshop on Amelioration on Irrigation and Drainage Tariff Methodology (8 persons: 6 males and 2 females), 8 April, 2015; Workshop on Amelioration on Irrigation and Drainage Tariff Methodology (6 persons: 4 males and 2 females), 13 April, 2015. Q3, 139 participants (72 males and 57 females).
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 56 April 01 – June 30, 2015
Cumulative Indicator Q3 Cumulative Results3 2015 Target Target
2.4 Number of GoG staff receiving training through G4G support to develop, implement, Workshop on Electricity Trading Mechanism 30 210 and enforce targeted reforms. Implementation (5 persons: 4 males and 1 15 M, 15 F 105 M, 105 F Short clarification: The indicator will count every person from the public sector receiving female), December 26, 2014; G4G supported trainings to develop, implement, and enforce targeted reforms. If one Workshop on Land Registration (11 person receives several trainings on different issues, each instance will be counted persons: 6 males and 5 females), January separately. The indicator also will include corresponding trainings relevant to the 3rd and 15-16, 2015; 4th components. The indicator data will be disaggregated based on Gender. On-job Training to MENRP on Improvement of Fresh Water Resource Management by GAMMA (5 persons: 2 males and 3 females), February 12, 2015; Workshop on ETM Development (9 persons: 4 males and 5 females), March 11, 2015; The 1st Connection Workshop for GNERC (8 persons: 6 males and 2 females), February 25, 2015; The 2nd Connection Workshop for GNERC (10 persons: 7 males and 3 females), March 24, 2015; On-job Training to MENRP on Improvement of Fresh Water Resource Management by GAMMA (5 persons: 2 males and 3 females), 12 February, 2015; Workshop on Amelioration on Irrigation and Drainage Tariff Methodology (3 persons: 3 males), 8 April, 2015; Workshop on Amelioration on Irrigation and Drainage Tariff Methodology (3 persons: 3 males), 13 April, 2015. Q3, 59 persons from the government (37 males and 22 females). 3.1 Number of policy related documents or legal acts agreed with or initiated for adoption Water Quality and Resource Management 1 5 by GoG stakeholders on water resource management through G4G support. Guidelines, initiated in January, 2015; Short clarification: The indicator will count each policy related documents or legal acts Water Resource Management Law, initiated agreed with or initiated for adoption by GoG stakeholders on water resource management in May, 2015. through G4G support. Q3, 2 policy documents.
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 57 April 01 – June 30, 2015
Cumulative Indicator Q3 Cumulative Results3 2015 Target Target
3.2 Number of PPDs events conducted to advance water sector policies through G4G PPD on Water Resource Management, June 2 12 support. 9, 2015. (In Dusheti); Short clarification: The indicator will count each PPD event conducted to advance water PPD on Water Resource Management, June sector policies through G4G support. Under PPDs we assume thematic meetings with the 24, 2015. (In Mtskheta). participation of major stakeholders, such as GoG, CSOs and private sector Q3, 2 PPD events. representatives. 3.3 Number of people receiving G4G supported training on natural resources management On-job Training to MENRP on Improvement 20 120 and/or biodiversity conservation. (USAID Indicator) of Fresh Water Resource Management by 10 M, 10 F 60 M, 60 F Short clarification: The indicator will count each person from GoG, CSOs or private sector GAMMA (9 persons: 4 males and 5 receiving USG supported trainings on natural resources management and/or biodiversity females), 12 February, 2015; conservation issues. If one person receives several trainings on different issues, each Workshop on Amelioration on Irrigation and instance will be counted separately. The indicator data will be disaggregated based on Drainage Tariff Methodology (8 persons: 6 Gender. males and 2 females), 8 April, 2015; Workshop on Amelioration on Irrigation and Drainage Tariff Methodology (3 persons: 3 males), 13 April, 2015. Q3, 20 participants (13 males and 7 females). 4.1 Number of legal acts agreed with or initiated for adoption by GoG stakeholders, Law on Electricity and Natural Gas was 3 15 according to GEMM 2015 legal/regulatory framework through G4G support. adopted in December, 2014; 10 Years Short clarification: The indicator will count each legal act agreed with or initiated for Network Development Plan was initiated in adoption by GoG stakeholders, according to GEMM 2015 legal/regulatory framework January, 2015; Georgian Turkey through G4G support. Intergovernmental Agreement (IGA) was signed in April, 2015; GRID Code was adopted in May, 2015; Amendments to Energy Market Rules were adopted in May, 2015; Law on Georgian Energy Policy was adopted in June, 2015. Q3, 6 legal acts. 4.2 Number of PPDs conducted through G4G support to advance energy sector policies. PPD on Establishment of Consolidator for 3 23 Short clarification: The indicator will count each PPD event conducted through G4G Small Hydropower Plant, March 11, 2015; support to advance energy sector policies. Under PPDs we assume thematic meetings PPD on Developing Competitive Energy with the participation of major stakeholders, such as GoG, CSOs and private sector Market, April 2, 2015. representatives. Q3, 2 PPD events.
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 58 April 01 – June 30, 2015
Cumulative Indicator Q3 Cumulative Results3 2015 Target Target
4.3 Number of people receiving G4G supported trainings in energy related business Workshop for electricity market players, 1st 20 180 management system. (USAID Indicator) workshop (12 persons: 11 males and 1 10 M, 10 F 90 M, 90 F Short clarification: The indicator will count each person from GoG, CSOs or private sector female), December 17, 2014; receiving G4G supported training in energy related business management system issues. Workshop on ETM Development (25 If one person receives several trainings on different issues, each instance will be counted persons: 15 males, 10 females), March 11, separately. The indicator data will be disaggregated based on Gender. 2015; Workshop for electricity market players, 2nd workshop (20 persons: 16 males and 4 females), January 29, 2015; Workshop for electricity market players, 3rd workshop (7 persons: 5 males and 2 females), February 25, 2015. Q3, 64 participants, 47 males and 17 females. 4.4 Number of people receiving G4G supported training in energy related policy and Workshop on Electricity Trading Mechanism 25 110 regulatory practices. (USAID Indicator) Implementation (5 persons: 4 males and 1 13 M, 12 F 55 M, 55 F Short clarification: The indicator will count each person from GoG, CSOs or the private female), December 26, 2014; sector receiving G4G supported trainings in energy related policy and regulatory practice Connection Workshop for GNERC (15 issues. If one person receives several trainings on different issues, each instance will be persons: 10 males, 5 females), 11 March, counted separately. The indicator data will be disaggregated based on Gender. 2015. Q3, 20 participants, 14 males and 6 females. 4.5 Energy amount of cross-border electricity traded that is attributable to G4G assistance. Q3, 450 GWh. 300 GWh 2230 GWh (USAID Indicator) Short clarification: This indicator will measure the amount of cross border energy traded between Georgia and Turkey. The included target data is for the fiscal year (i.e., October 1 – September 30). The data source for measuring actual performance will come directly from the website of the Electricity System Commercial Operator (ESCO).
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 59 April 01 – June 30, 2015
Cumulative Indicator Q3 Cumulative Results3 2015 Target Target
5.1 Number of private and civil society organizations received capacity building assistance 1st Electricity Market Players Workshop, 10 65 through G4G on development, implementation, and enforcement of targeted reforms. December 17, 2014. (12 businesses); Short clarification: The indicator will count each private and civil society organization that 2nd Electricity Market Players Workshop, received capacity building assistance through G4G support to develop, implement, and January 29, 2015. (13 businesses); enforce the targeted reforms. If the organization receives different types of assistance, 3rd Electricity Market Players Workshop, each will be counted separately. The indicator also will capture organizations classified February 25, 2015. (4 businesses); under 3rd and 4th components. Workshop on ETM Development, March 11, 2015. (7 businesses); On-job Training to MENRP on Improvement of Fresh Water Resource Management by GAMMA, February 11, 2015. (1 business); Workshop on Land Registration, January 15-16, 2015. (2 CSOs); Media Offsite Workshop, April 5, 2015 (2 CSOs and 1 business); Coffee and Conversation on TFS, April 2, 2015. (2 SCOs and 11 businesses); Association Management Workshop 22-24 April, 2015 (11 SCOs); Coalition Building Workshop for Associations 19-21 April, 2015 (15 SCOs); Media Study Tour for Journalists on Hydropower and ETM, 30-31 May, 2015 (22 businesses). Q3, 71 businesses and 32 SCOs. 5.2 Number of quality services/products provided by professional business associations & Advocacy service; 2 9 think tanks to their clients as a result of USG assistance. (USAID Indicator) Networking service; Short clarification: This indicator measures the number of quality of services such as Policy advisory service. research, policy advice in areas affecting industry, publication of polling data, policy Q3, 3 services provided. papers, policy seminars, membership meetings, and advocacy activities that are available and used by private enterprises and individual, others. The indicator also will capture services/products provided relevant to the 3rd and 4th components.
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 60 April 01 – June 30, 2015
Cumulative Indicator Q3 Cumulative Results3 2015 Target Target
5.3 Number of journalists trained through G4G support to provide credible and reliable Media Offsite Workshop, April 5, 2015 (25 8 48 reporting on issues affecting Georgia’s business enabling environment. persons: 9 males and 16 females); 4 M, 4 F 24 M, 24 F Short clarification: The indicator will count each journalist receiving G4G supported training Coffee and Conversation on TFS, April 2, on relevant subjects. If one person receives several trainings on different issues, each 2015. (15 persons: 5 males and 10 instance will be counted separately. The indicator data will be disaggregated based on females); Gender. Media Study Tour for Journalists on Hydropower and ETM, 30-31 May, 2015 (27 persons: 20 males and 7 females). Q3, 67 journalists, 34 males and 33 females. 5.4 Number of persons from private and civil society organizations receiving training Workshop for electricity market players (12 50 295 through G4G support on the development, implementation, and enforcement of the persons: 11 males and 1 female), December 25 M, 25 F 148 M, 147 F targeted reforms. 17, 2014; Short clarification: The indicator will count each person from private and civil society 2nd Electricity Market Players Workshop (21 organizations receiving G4G supported trainings to develop, implement, and enforce the persons: 17 males and 4 females), January targeted reforms. If one person receives several trainings on different issues, each 29, 2015; instance will be counted separately. The indicator also will include corresponding trainings 3rd Electricity Market Players Workshop (22 relevant to the 3rd and 4th components. The indicator data will be disaggregated based on persons: 18 males and 4 females), February Gender. 25, 2015; Workshop on ETM Development (9 persons: 7 males and 2 females), March 11, 2015; Workshop on Land Registration (2 persons: 1 male and 1 female), January 15-16, 2015; Media Offsite Workshop (25 persons: 9 males and 16 females), April 5, 2015; Coffee and Conversation on TFS (15 persons: 5 males and 10 females), April 2, 2015; Association Management Workshop (11 persons: 2 males and 9 females), 22-24 April, 2015; Coalition Building Workshop for associations (21 persons: 5 males and 16 females), 19- 21 April, 2015;
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 61 April 01 – June 30, 2015
Cumulative Indicator Q3 Cumulative Results3 2015 Target Target
Media Study Tour for Journalists on Hydropower and ETM (27 persons: 20 males and 7 females), 30-31 May, 2015. Q3, 165 persons: 95 males and 70 females. 6.1 Proportion of females who report increased self-efficacy at the conclusion of G4G Q3, 100% of female participants who 70% 70% supported trainings/programming. (USAID Indicator) completed the forms reported on the Short clarification: The data on the indicator will be collected at the end of each training increased self-efficacy. event based on the women participants’ survey. The proportion will be measured based on the 5 scale survey questionnaire.
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 62 April 01 – June 30, 2015
ANNEX 2: DONOR COORDINATION MATRIX
Time Donor Donor Donor Project Title Contact Person/Role Contact Information G4G Supported Reform Frame Funding Georgia: Strengthening Domestic 2014 Kathie Julian Resident [email protected] Capital Market and Pension ADB USD 0,5 M Resource Mobilization 2016 Representative Tel.: +(995) 322 250 619 Reform 2011 Giorgi Kiziria, Deputy ADB Road Corridor Investment Project [email protected] USD 140 M TBI 2015 Team Leader Urban Services Improvement 2013 Irakli Chkhonia, Senior
ADB [email protected] USD 0,1 M TBI Investment Project 2018 Project Officer Zurab Jincharadze, Development of Water Environmental Protection of 2012 zurab.jincharadze@blacksea- EU River Basin EUR 7,5 M Resource Management International River Basin Project 2016 riverbasins.net Management Expert plans Twinning Project - Strengthening Tax Reform (Tax payment 2014 Irakli Khmaladze, EU Administrative Capacity of the [email protected] EUR 1,3 M simplification, Tax Code 2015 Project Manager Georgia RS in Taxation Review) TA for Enguri / Vardnili HPP 2010 Muriel Lumbert, Project Muriel.Lambert-de- EU EUR 1,04 M ETM Development Rehabilitation 2015 Manager [email protected]
2012 Nikos Tsakalidis, EU INOGATE (Regional Project) [email protected] EUR 16,6 M ETM Development 2015 Deputy Team Leader EIB-03 Technical Assistance for the [email protected] Development of Water 2010 Alvaro Ortega Aparicio, EU Water Infrastructure Modernization [email protected] EUR 0,42 M Resource Management 2016 Programe Manager and Development Project Tel.: (+995 32) 2943763 plans Legislative Impact Assessment, 2015 Katerina Velichkova, EU Drafting and Representation [email protected] EUR 1.5 M RIA National Framework 2017 RIA Expert Location Georgia - Jvari - Khorga 2013 Nino Shanidze, Senior EBRD, KfW [email protected] EUR 60 M ETM Development Interconnection 2016 Project Coordinator Development of Water Rehabilitation of drinking, waste and 2010 Nino Shanidze, Senior EUR 101,8 KfW [email protected] Resource Management rainwater systems in Batumi 2015 Project Coordinator M plans Tax Reform; Customs Private Sector Development Project 2013 GIZ Marieta Riedel, Expert [email protected] TBI Administration and in the South Caucasus 2016 Enforcement Legal Approximation towards Dr. Jens Deppe GIZ European Standards in the South [email protected] TBI Insolvency Reform Team Leader Caucasus Norwegian Energy Strategy Ministry of Sustainable Hydropower 2012 Endre Ottosen, [email protected] TBI Development; Water Foreign Development 2015 Project Coordinator Resource Management Affairs
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 63 April 01 – June 30, 2015
Time Donor Donor Donor Project Title Contact Person/Role Contact Information G4G Supported Reform Frame Funding Norwegian Promoting Sustainable Dam Maka Bitsadze, Energy Strategy Ministry of 2013 Development at River-Basin-Scale in Project Regional [email protected] TBI Development; Water Foreign 2014 the Southern Caucasus Coordinator Resource Management Affairs Institutional Cooperation Between Norwegian Norwegian Water Resources and Kjell Repp, Ministry of 2013 Water Resource Energy Directorate and Ministry of Head of International [email protected] NOK 13,68 Foreign 2016 Management Energy and Natural Resources of Section Affairs Georgia Norwegian Society for SPARE- International School Project 2012 Madona Pirvelashvili, [email protected] Energy Strategy the for Application of Resources and TBI 2015 Project Coordinator [email protected] Development Conservation Energy of Nature Tax Reform; Customs 2013 Eka Avaliani, [email protected] Administration and IFC Georgia Investment Climate Project USD 1,8 M 2016 Operations Officer Cell: +(995) 599 560 229 Enforcement, Tax Perception Survey IFC Infra 2012 Bjorn Brandizarg, Clean Energy Invest [email protected] USD 700 M ETM Development Ventures 2015 Consultant Overall Institutionalized Swiss Lasha Labadze, Deputy 2013 Framework for Public Cooperation Inclusive Growth Dialogues Director ISET Policy [email protected] GEL 0,14 M 2014 Consultation and support on Office Institute G4G targeted reform areas Pilot Project for Introduction of an Czech George Gaprindashvili, Information System for Data Development of Water Development 2013 Leading Specialist [email protected] CZK 12,63 Transferring and Groundwater Resource Management Agency 2015 Head of Projects and Cell: +(995) 591 404 043 M Monitoring Network in Kvareli and plans (CzDA) Analytical Department Lagodekhi Municipalities Paata Iakobashivli European Development of Water 2013 (from MDF) Head of [email protected] Investment Water Infrastructure Modernization II EUR 40 M Resource Management 2018 Projects and Analytical [email protected] Bank plans Department Overall Institutionalized Bruno Balvanera, 2015 Framework for Public EBRD Support Public Private Dialogue Director (Caucasus, [email protected] TBD 2018 Consultation and support on Moldova and Belarus) G4G targeted reform areas Alternative dispute resolution Judicial Independence and Legal 2010 George Chkheidze, [email protected] USAID USD 19 M mechanism for pilot land Empowerment Project (JILEP) 2014 DCOP Cell: +(995) 599 515 662 registration
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 64 April 01 – June 30, 2015
Time Donor Donor Donor Project Title Contact Person/Role Contact Information G4G Supported Reform Frame Funding Enhancing Capacity for Low [email protected] 2013 Danna Kenney, COP Energy Strategy USAID Emission Development Strategies [email protected] USD 6 M 2018 Inga Pkhaladze DCOP Development (EC LEDS) +(995) 32 2 50 63 43 Integrated Natural Resources Development of Water 2012 Marika Shotadze, USAID Management in Watersheds of [email protected] USD 5 M Resource Management 2014 Program Director Georgia plans Overall Institutionalized Advancing CSO Capacities and 2014 Tamar Karosanidze, [email protected] Framework for Public USAID Engaging Society for USD 5,5 M 2019 COP Cell: +(995) 599 902 298 Consultation and support on Sustainability (ACCESS) G4G targeted reform areas Overall Institutionalized Media for Transparent and 2014 Lika Chakhunashvili, [email protected] Framework for Public USAID Accountable Governance (M-TAG) USD 5,1 M 2019 COP Cell: +(995) 599 902 298 Consultation and support on Program G4G targeted reform areas USAID/Strengthening Extension and 2013 USAID Advisory Services in Georgia Roland Smith, Expert [email protected] USD 0,88 M TBI 2015 (SEAS) Georgian Human and Institutional GoG and CSOs capacity 2011 Roman Tsutskiridze, USAID Capacity Development (HICD) Plus [email protected] USD 5,7 M building in G4G targeted 2015 COP Project reform areas Restoring Efficiency to Agricultural 2013 Luisa Namicheishvili, [email protected] USAID USD 19,5 M Crop Insurance Production (REAP) 2018 DCOP Cell: +(995) 595 030 353
NARUC- Black Sea Regulatory 2006 Jargalan Jambaldorj, USAID [email protected] USD 0,2 M ETM Development Initiative 2020 Senior Program Officer
AGT/Black Sea Transmission 2011 Will Polen, Senior
USAID [email protected] USD 0,08 M ETM Development Project 2017 Director Overall Institutionalized New Economic Opportunities 2014 [email protected] Framework for Public USAID Kirk Ramer, COP TBD Initiative (NEO) 2015 Tel.: +(995) 32 225 05 61 Consultation and support on G4G targeted reform areas Overall Institutionalized Supporting Local Self-Governance 2014 [email protected] Framework for Public USAID Nino Lomjaria, COP TBD Reforms in Georgia 2015 Cell: +(995) 555 02 02 00 Consultation and support on G4G targeted reform areas Good Governance Initiative in 2015 [email protected] Assistance on strengthening USAID David Smith, COP USD 11 M Georgia (GGI) 2020 Cell: +(995) 598 24 77 47 key governance reforms [email protected] Momavlis Taoba (Future 2014 Marina Ushveridze, USAID Tel.: +(995) 322 990049 TBD Youth involvement Generation) Project 2017 COP Tel.: +(995) 322 233338
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 65 April 01 – June 30, 2015
Time Donor Donor Donor Project Title Contact Person/Role Contact Information G4G Supported Reform Frame Funding U.S. Treasury Tax Reform; Customs 2012 Davit Koguashvili, [email protected] Office of Revenue Advisor Program USD 1.M Administration and 2017 Consultant Cell: +(995) 599 121 120 Technical Enforcement Assistance Joseph Melitauri, Transmission Grid Strengthening 2014 USD 61,88 WB Senior Operations [email protected] ETM Development Project 2019 M Officer South Caucasus Financial Sector Angela Prigozina, Advisory Project, Capital Markets 2014 [email protected] WB Country Sector TBI Pension Reform and Pension Reform Technical 2017 Tel.: +(995) 322 296 228 Coordinator Assistance Development Policy Operation 2012 John Gabriel Goddard, WB [email protected] TBI Capital Market Reform (DPO) Series 2015 Senior Economist Kathrine M. Kelm, Irrigation and Land Market 2014 Senior Land Land registration pilot project WB [email protected] USD 50 M Development Project 2019 Administration implementation Specialist Michelle P. Rebosio Youth Inclusion and Social 2014 [email protected] WB Calderon, Social USD 0,50 M TBI Accountability Project 2016 Tel.: +(995) 322 907 484 Development Specialist Nino Antadze, Energy Development of Water 2009 [email protected] UNDP UNDP/GEF Kura Ara(k)s project and Environment Team USD 2,9 M Resource Management 2014 Cell.: (+995) 599 562 200 Leader plans Development of Water Climate Resilient Flood and Flash 2012 Ivane Tsiklauri, Project UNDP [email protected] USD 5,06 M Resource Management Flood Management 2016 Manager plans
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 66 April 01 – June 30, 2015
ANNEX 3: UTILIZATION OF USG PERSONNEL AND COLLABORATION WITH OTHER DONOR-FUNDED PROJECTS COLLABORATION WITH OTHER USG PERSONNEL G4G and USAID facilitated a meeting for the deputy minister of MoESD Mikheil Janelidze with ITACs (a US Department of Treasury Special Trade Advisory Council) to discuss a permanent platform for public- private dialogue on trade issues. COLLABORATION WITH OTHER USAID PROJECTS G4G with other USAID projects took part in America Days, organized by the US Embassy. The goal was to showcase US-supported assistance programs in Georgia. The event encompassed informational and trade fairs for visitors to learn about the diverse work of USAID, and other development projects in Georgia. As part of the G4G’s display, entitled “Women’s Role in Economic Growth and Policy Development,” six women entrepreneurs were showcased, including producers of Georgian cheese, wine, traditional clothes, decorative clay flower-pots, enamel jewelry, and other handcrafts. Guests listened to live music and watched street dancing performed by Georgian and American artists. Georgia Waste Management Technologies in Regions: G4G collaborated with Caucasus Environmental NGO Network's (CENN) project Waste Management Technologies in Regions funded by USAID to conduct "Coffee & Conversation" for the media professionals on waste management issues. The session that will be conducted in September at CENN training center in Bulachauri, will cover following topics: a) country obligations within the EU-Georgia Association Agreement related to waste management; b) issues related to the development of the business/recycling sector and importance of this sector in terms of waste management improvements in the country. INRMW: G4G works with USAID-funded Integrated Natural Resources Management in Watersheds (INRMW) project. G4G will build on its water-related activities on the work that has been implemented under the INRMW. EC-LEDS Clean Energy Program: G4G is collaborating with USAID EC-LEDS Clean Energy program implemented by Winrock International to develop Business As Usual scenario for MARKAL Georgia Model for strategic planning. G4G will use data sets developed by Analytical Department of MoE supported by EC-LEDS project and will run different scenarios in MARKAL Georgia. The outputs of the MARKAL Georgia will be used by MoE for Energy Strategy development. COLLABORATION WITH OTHER DONOR-FUNDED PROJECTS EU: G4G works closely with EU Delegation to Georgia. G4G will complement work done by the EU related to water resource management in Georgia. EU “Legislative Impact Assessment, Drafting and Representation Location” Project: Project has a separate RIA component. G4G held several meetings with project experts to coordinate the activities related to institutionalizing RIA mechanism in GoG. EU Twinning Project: G4G closely collaborates with EU Twinning Project “Strengthening Administrative Capacity of the Georgian RS in Taxation” within the MoF’s working group to develop the Action Plan on Approximation of Tax Code with EU VAT Directive. EU Twinning consultant brings European expertize on VAT while G4G consultant’s added value is the deep knowledge of Georgian tax system and thorough understanding of local context. EBRD: G4G agreed with EBRD to collaborate on delivering a high level of consulting service and added value to the overall working of the PPD platform. As agreed, G4G will work closely with the PPD platform by providing analysis expertise on G4G specific areas. WB: G4G collaborates with WB on Land Registration Reform. WB, under a USD $40 million irrigation infrastructure loan arrangement, allocated over USD $2.4 million to implement a pilot land registration project. The WB pilot would be used to test and learn from the new legal and regulatory framework, communication strategies, and intensive civil society engagement efforts supported by G4G. The lessons learned from the pilot project will be used to complete to properly register agricultural and non-agricultural land throughout Georgia.
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 67 April 01 – June 30, 2015
G4G will support WB in developing electricity trading software; specifically, G4G will review and provide inputs to WB’s Assessment Needs Report and Terms of Reference for procurement and installation of electricity trading software/hardware in Georgia. G4G will be supporting WB’s consultants by guiding and providing information on Electricity Trading Mechanism and GEMM 2015. G4G and WB cost shared the participation of GoG officials (GoG pension reform working group members) for training in WB’s Pension Core Course, a two-week course held from April 27 through May 8, 2015. ADB: G4G works with the ADB project “Georgia: Strengthening Domestic Resource Mobilization” on pension and capital market reforms. G4G Access to Finance Policy Advisor, Financial Analyst and short- term legal consultants closely collaborate with ADB international advisors in conducting the capital market diagnostic assessment and organizing joint PPD events. KfW “Feasibility Study on Agro Insurance in Georgia and Armenia” Project: G4G held several meetings and consultations with KfW experts on state crop insurance model development. The close cooperation will continue throughout the implementation of Crop Insurance RIA. NARUC: G4G will support National Association of Regulatory Utility Commissioners’ (NARUC) Black Sea Regulators Initiative, which aims to harmonize regulations for cross border energy trading in the region. World Customs Organization (WCO): G4G continues cooperation with WCO to build RS capacity for implementation of Authorized Economic Operator (AEO) concept. GIZ “Legal Approximation towards European Standards in the South Caucasus” Project: G4G actively cooperated with GIZ experts during the assessing of insolvency system of Georgia. GIZ experts participated in G4G insolvency PPD, served as interviews during the assessment and provided G4G the related materials developed by GIZ.
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 68 April 01 – June 30, 2015
ANNEX 4: UTILIZATION OF INTERNS
N Name Internship Period G4G Supervisor & Component
1 Nodar Kukava 4/6/2015-6/5/2015 Bondo Bolkvadze, GOG Capacity Strengthening Component
2 Ana Meskhishvili 4/15/2015-6/18/2015 Irina Iremashvili, Crosscutting Component
3 Teona Mgeladze 4/15/2015-6/12/2015 Tamar Buadze, GOG Capacity Strengthening Component
4 Nana Khetsuriani 4/16/2015-6/16/2015 Ilia Gogichaishvili, GOG Capacity Strengthening Component Aleksandre 5 4/27/2015-6/27/2015 Tamar Buadze, GOG Capacity Strengthening Component Megrelishvili Ketevan 6 5/11/2015-7/10/2015 Michael Martley, Cross Cutting Component Kobakhidze
ANNEX 5: G4G ADVISORS UTILIZED IN GOG INSTITUTIONS
N Name Area(s) of Focus GoG Institution
1 Irakli Siradze Tax Payment Simplification MoF, RS
2 Vazha Petriashvili EU VAT Approximation Action Plan MoF, RS
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 69 April 01 – June 30, 2015
ANNEX 6: UTILIZATION OF PRIVATE SECTOR AND CIVIL SOCIETY ORGANIZATIONS
N Name of Organization Area(s) of Focus Utilization
1 AYEG Youth engagement in PPD Consultations Women engagement in PPD, Civil Society 2 Georgian Women Business Association Collaboration Capacity Building Georgian Association “Women in Women engagement in PPD, Civil Society 3 Consultations Business” Capacity Building 4 Caucasus University Youth engagement in PPD Outreach 5 Georgian Technical University Youth engagement in PPD Collaboration 6 GAU Youth engagement in PPD Outreach 7 ISET Policy Institute Youth engagement in PPD Collaboration 8 Energy Academy of Georgia Energy, Youth engagement in PPD Outreach 9 JS Telasi Energy Collaboration 10 JS EnergoPro Energy Collaboration 11 Clean Energy Energy Collaboration 12 Hydrolea LTD Energy Collaboration 13 Georgia Urban Enerji Energy Collaboration 14 GOGC Energy Collaboration 15 GEDF Energy Collaboration 16 Schulze Global Investments LTD Energy Collaboration 17 Georgia Hydro Energy Collaboration 18 GIG Energy Energy Collaboration 19 Energy Solutions Energy Collaboration 20 Georgian Hydro Power Energy Collaboration 21 Energo Aragvi Energy Collaboration 22 Eastern Power Corporation Energy Collaboration 23 KG Energy Energy Collaboration Georgian International Energy Collaboration 24 Energy Corporation 25 GITA Innovation and Technology Collaboration 26 Partnership Fund Energy Consultations 27 Co-Investment Fund Energy Consultations 28 New Economic School Economy Consultations
Freight Forwarders Association of Collaboration 29 Trade Facilitation and Customs Georgia
30 Poti APM Terminals Trade Facilitation Collaboration 31 ICT Business Council Innovation and Technology Consultations 32 GIRCA Customs Consultations 33 AmCham Tax Enforcement and Administration Consultations
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 70 April 01 – June 30, 2015
34 BAG Tax Enforcement and Administration Consultations 35 GIA Crop Insurance Collaboration 36 GSMEA Tax Enforcement and Administration Consultations 37 ICC Georgia Tax Enforcement and Administration Consultations 38 GCCI Tax Enforcement and Administration Consultations 39 PMCG Tax Enforcement and Administration Consultations 40 EPRC Civil Society Capacity Building Outreach 41 ATA partners Tax Enforcement and Administration Outreach 42 TI Land Registration Reform Collaboration Caucasus Environmental NGO Network 43 Water Resource Management Outreach (CENN) 44 NALAG Water Resource Management Outreach 45 REC Caucasus Water Resource Management Outreach 46 Georgian Farmers Association Water Resource Management Outreach 47 GAMMA Water Resource Management Collaboration 48 YEA Youth Engagement in PPD Consultations 49 Radio “Tavisupleba” Media engagement in PPD Collaboration 50 Radio “Commersanti” Media engagement in PPD Collaboration Media Holding “Palitra” (Palitra TV, IPN, Collaboration 51 Media engagement in PPD BPN) 52 National Broadcaster Media engagement in PPD Collaboration 53 TV Channel “Maestro” Media engagement in PPD Collaboration 54 TV channel “Tabula” Media engagement in PPD Collaboration Collaboration 55 TV Channel “Rustavi2” Media engagement in PPD
56 TV Channel “Imedi” Media engagement in PPD Collaboration 57 Newspaper “Georgia Today” Media engagement in PPD Collaboration 58 Newspaper “Messenger” Media engagement in PPD Collaboration 59 Online and printed journal “Liberali” Media engagement in PPD Collaboration 60 News agency “Agenda.ge” Media engagement in PPD Collaboration 61 Newspaper “Rezonansi” Media engagement in PPD Collaboration BICT - Batumi International Container Trade Facilitation and Customs Collaboration 62 Terminal
63 Georgian Logistics Association Trade Facilitation and Customs Consultations Association of Business Consulting Civil Society Capacity Building Collaboration 64 Organizations of Georgia 65 Georgian Wine Association Civil Society Capacity Building Collaboration 66 Business and Economic Centre Civil Society Capacity Building Collaboration 67 Association of Banks Civil Society Capacity Building Collaboration 68 Association of Law Firms of Georgia Civil Society Capacity Building Collaboration 69 GYLA Civil Society Capacity Building Collaboration
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 71 April 01 – June 30, 2015
70 Georgian Microfinance Association Civil Society Capacity Building Collaboration Chamber de Commerce France Civil Society Capacity Building Collaboration 71 Georgia Georgian Law and Policy Research Civil Society Capacity Building Collaboration 72 Centre Institutional and Capacity Development Civil Society Capacity Building Collaboration 73 Center Business Association “Women for Civil Society Capacity Building Collaboration 74 Tomorrow 75 Georgian Tourism Association Civil Society Capacity Building Collaboration 76 Georgian-Ukrainian Business Club Civil Society Capacity Building Collaboration
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 72 April 01 – June 30, 2015
ANNEX 7: SUMMARY OF GRANT ACTIVITIES
Number of Number of Region of Reform Project Title Applications Grants Type of Beneficiaries Project Status Implementation Reviewed Awarded Tbilisi, Regions: East Central Government and Grant Award Assessment on Collaborative Governance Gaps 2 1 and West Georgia Private Sector signed - Ongoing Assessment on Constraints Journalists Face in Covering Tbilisi, Regions: Media, Public and Private Selection 1 Reforms Kakheti, Adjara Sector Process Central Government, Public Selection Georgian Reform Progress Tracking System (GRPTS) 3 Tbilisi and Private Sector process Institutionalized Selection Framework for Public PPD Quality Tracking Mechanism 3 Tbilisi Central Government Consultation Reform process Tbilisi, Regions: Kakheti, Mtskheta- Women organizations, Grant Award Empowering Women in Business 8 1 Mtianeti and Shida women entrepreneurs signed - Ongoing Kartli Selection Youth Governance Program 10 Tbilisi, Regions: TBD Youth process Energy Strategy Energy and Water Consumption End-Use Survey In Tbilisi, Regions: TBD Central Government RFA Issued Reform Commercial and Industrial Sectors Energy Trading Women Integration in Energy Sector Tbilisi Private Sector RFA Issued Mechanism Reform Local and Central Develop Water Resource Management Guidance Region: Georgia Government, Public and RFA Issued Documents Applicable for Georgia Private Sector Water Resource Local and Central Green Paper on “Water Allocation Plan Framework – Region: Mtskheta- Grant Award Management Reform 1 1 Government, Public and Challenges for Implementation” Mtianeti Region signed - Ongoing Private Sector Computer Models for Water Resource Management Region: Georgia Private Sector, CSOs RFA Issued Planning Capacity Building Training for Small Business Grant Award 2 1 Tbilisi Private Sector Associations and SME’s on Tax Code Advocacy signed - Ongoing Tax Enforcement and RIA on the Estonian Corporate Income Tax (CIT) Model Selection 2 Tbilisi Central Government Administration Reform Implementation in Georgia process Grant Award Tax Perception Survey 3 1 Tbilisi, Regions: TBD Public and Private Sector signed - Ongoing Crop Insurance Central Government, Public Grant Award RIA on Crop Insurance Reform 3 1 Tbilisi Reform and Private Sector signed - Ongoing
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 73 April 01 – June 30, 2015
ANNEX 8: GANTT CHARTS
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 74 April 01 – June 30, 2015
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 75 April 01 – June 30, 2015
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 76 April 01 – June 30, 2015
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 77 April 01 – June 30, 2015
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 78 April 01 – June 30, 2015
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 79 April 01 – June 30, 2015
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 80 April 01 – June 30, 2015
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 81 April 01 – June 30, 2015
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 82 April 01 – June 30, 2015
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 83 April 01 – June 30, 2015
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 84 April 01 – June 30, 2015
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 85 April 01 – June 30, 2015
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 86 April 01 – June 30, 2015
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 87 April 01 – June 30, 2015
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 88 April 01 – June 30, 2015
ANNEX 9: G4G ORGANIZATIONAL CHART
USAID | Governing for Growth (G4G) in Georgia Quarterly Report 89 April 01 – June 30, 2015
USAID Governing for Growth (G4G) in Georgia Deloitte Consulting Overseas Projects LLP Address: 85 Z. Paliashvili Street, Tbilisi Phone: +995 322 240115 / 16 E-mail: [email protected]