IN GEORGIA Annual Performance Report No

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GOOD GOVERNANCE INITIATIVE (GGI) IN GEORGIA Annual Performance Report No. 6 October 01, 2019 - September 30, 2020

PHOTO CREDIT TETRA TECH

October 2020 This publication was produced for review by the United States Agency for International Development. It was prepared by Tetra Tech.

Prepared for the United States Agency for International Development, USAID Contract Number AID-114-C-15-00001, Good Governance Initiative (GGI) in Georgia. This report was prepared by: Tetra Tech ARD 159 Bank Street, Suite 300 Burlington, Vermont 05401 USA Telephone: (802) 495-0282 Fax: (802) 658-4247 E-Mail: [email protected]

Principal Contacts: Levan Samadashvili, Chief of Party ([email protected]) Kelly Kimball, Project Manager ([email protected])

GOOD GOVERNANCE INITIATIVE (GGI) IN GEORGIA

Annual Performance Report (APR) No. 6

October 01, 2019-September 30, 2020

October 2020

DISCLAIMER The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government.

TABLE OF CONTENTS

TABLE OF CONTENTS ...... I ACRONYMS AND ABBREVIATIONS ...... II 1.0 PROJECT SCOPE AND PURPOSE ...... I 2.0 DETAILED DESCRIPTION OF ACTIVITIES CONDUCTED DURING THE REPORTING YEAR ...... 1 2.1 RESULT 1 – IMPROVED ADMINISTRATIVE AND FINANCIAL MANAGEMENT OF PUBLIC INSTITUTIONS AT ALL LEVELS ...... 1 RESULT 1 ACTIVITIES...... 1 2.1.1 Activity 1.1.1: Support GoG to Improve Policy Planning and Implementation Practices at the Central Government Level ...... 1 2.1.2 Activity 1.1.2: Support MRDI and Partner Municipalities to Contribute to the Efforts of Local Development and Decentralization ...... 8 2.1.3 Activity 1.1.3: Improve Service Delivery at the Central and Local Levels ...... 15 2.1.4 Activity 1.1.4: Strengthen Local and National-Level Public Financial Management Systems, including Program Budgeting ...... 17 2.1.5 Activity 1.1.5: Support Civil Service Bureau (CSB), other Government Agencies, and Local Governments to Implement Civil Service Reform ...... 24 2.2 RESULT 2: INCREASED CIVIC ENGAGEMENT AND IMPROVED ACCESS TO INDEPENDENTS, RELIABLE AND BALANCED INFORMATION RELEVANT TO GEORGIA’S GOOD GOVERNANCE ...... 29 RESULT 2 ACTIVITIES...... 30 2.2.1 Activity 2.1.1: Support Anti-Corruption Council (ACC) and GGI’s Partner Agencies and Local Municipalities to Institutionalize Anti-Corruption Practices to Ensure Better Accountability Both at National and Local Levels ...... 30 2.2.2 Activity 2.1.2: Provide Support to the GoG at Central and Local Levels to Successfully Participate in the Open Government Partnership (OGP) Process ...... 34 2.2.3 Activity 2.1.3: Support GoG to Enhance Transparency through Effective Practicing of Freedom of Information Act (FOIA) Procedures ...... 37 2.2.4 Activity 2.1.4: Support GGI’s Partner Agencies to Effectively Fight Anti-Western Propaganda and Disinformation ...... 39 2.3 RESULT 3 – STRENGTHENED POLICY DEVELOPMENT AND LAWMAKING PROCESSES ...... 40 RESULT 3 ACTIVITIES...... 40 2.3.1 Activity 3.1: Support Institutional Strengthening of Parliamentary Committees, Departments, and Parliamentary Research Center ...... 40 2.3.2 Activity 3.2: Continue Support to the Open Parliament Partnership (OPP) ...... 44 2.3.3 Activity 3.3: Support Parliament in Raising Awareness on Countering Malign Kremlin Influence (CMKI) ...... 45 2.3.4 Activity 3.4: Support Evidence-Based Law-Making Process ...... 46 2.4 RESULT 4 – STRENGTHENED INSTITUTIONAL OVERSIGHT OF GOVERNMENT ...... 47 RESULT 4 ACTIVITIES...... 48 2.4.1 Activity 4.1: Continue Supporting Parliament in Creating and Institutionalizing Effective Oversight Systems ...... 48 2.4.2 Activity 4.2: Continue Supporting the Institutional Development of Parliamentary Budget Office (PBO) ...... 55 2.4.3 Activity 4.3: Continue Supporting the Institutional Development of the State Audit Office (SAO) ...... 56 2.4.4 Activity 4.4: Continue Supporting Counterpart PICD and Municipalities in Building Internal Auditing Capacity ...... 60 3.0 ACTUAL ACHIEVEMENTS VS PLANNED ACTIVITIES ...... 61 4.0 SIGNIFICANT RESULTS ACHIEVED DURING THE REPORTING YEAR ...... 66

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 i RESULT 3: STRENGTHENED POLICY DEVELOPMENT AND LAW-MAKING PROCESSES...... 69 RESULT 4: STRENGTHENED INSTITUTIONAL OVERSIGHT OF THE GOVERNMENT...... 69 5.0 OBSTACLES, CONSTRAINTS, AND OPPORTUNITIES ALONG WITH LESSONS LEARNED DURING YEAR 5 ...... 72 6.0 ANNUAL PROGRESS OF PERFORMANCE INDICATORS INCLUDED IN THE PMP ...... 76 APPENDIX A: SIGNIFICANT EVENTS UNDERTAKEN DURING THE CURRENT YEAR ...... 101 APPENDIX B: ACCRUALS AND EXPENDITURE REPORT ...... 171

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 ii ACRONYMS AND ABBREVIATIONS

AoG Administration of the Government of Georgia CCE Center for Civic Engagement CHU Central Harmonization Unit CiDA Civic Development Agency CSB Civil Service Bureau CSL Law on Civil Service CSO Civil Society Organization DEA Data Exchange Agency EPRC Economic Policy Research Center EU European Union FOIA Freedom of Information Act FMC Fiscal Management Controls GoG Government of Georgia GGI Good Governance Initiative in Georgia GYLA Georgian Young Lawyers Association HR Human Resource IA Institutional Analysis IDFI Institute for Development of Freedom of Information INTOSAI International Organization of Supreme Audit Institutions IQC Indefinite Quantity Contract ISET International School of Economics IT Information Technology LDG Local Democratic Governance LEPL Legal Entity of Public Law LSG Local Self Government M&E Monitoring and Evaluation MoF Ministry of Finance MoJ Ministry of Justice MoIDPLHSA Ministry of Internally Displaced Persons from the occupied Territories, Labor, Health, and Social Affairs

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 ii MP Member of Parliament MRDI Ministry of Regional Development and Infrastructure NALA National Association of Local Authorities of Georgia NAP National Action Plan NDG National Democratic Governance NGO Nongovernmental Organization NCLE Non-Commercial Legal Entity OGP Open Government Partnership OPP Open Parliament Partnership PAI Public Audit Institute PBO Parliamentary Budget Office PES Performance Evaluation System PIFC Public Internal Financial Controls PIM Public Investment Management PMP Performance Monitoring Plan PR Public Relations PSDA Public Service Development Agency RIA Regulatory Impact Assessment RoP Rules of Procedure SAI PMF Self-Assessing Independence Performance Measurement Framework SAO State Audit Office SARAS Service for Accounting, Reporting and Auditing Supervision SIGMA Support for Improvement in Governance and Management SoW Scope of Work STTA Short Term Technical Assistance SUDP Spatial Urban Development Plan SWOT Strength, Weaknesses, Opportunities, and Threats TAG More Transparent and Accountable Governance Project TI Transparency International ToR Terms of Reference TOT Training of Trainers

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 iii UNDP United Nations Development Program USAID United States Agency for International Development UWSC United Georgia Water Supply Company

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 iv 1.0 PROJECT SCOPE AND PURPOSE

The Good Governance Initiative (GGI) is a five-year project, with an extension phase of one and a half years aimed at providing support to the Government of Georgia (GoG) in strengthening overall transparency, accountability, and effectiveness of selected governance and service delivery systems. GGI’s work targets the legislative and executive branches at both the central and local government levels, and seeks to strengthen linkages between different branches and levels of government in key governance systems and processes. To ensure greater government accountability, GGI works with government and civil society representatives to enhance public participation, and disseminate public information about key reforms. GGI is introducing and strengthening systems for strategic planning and performance management, performance-based budgeting, participatory policy and legislative development, governmental oversight systems, and intra-governmental and public communications and coordination. GGI assistance supports Georgia’s participation in ongoing governance-related reform initiatives and international commitments. GGI is implemented for USAID/Georgia by Tetra Tech ARD.

2.0 DETAILED DESCRIPTION OF ACTIVITIES CONDUCTED DURING THE REPORTING YEAR

2.1 RESULT 1 – IMPROVED ADMINISTRATIVE AND FINANCIAL MANAGEMENT OF PUBLIC INSTITUTIONS AT ALL LEVELS Result 1 activities are led by GGI Deputy Chief of Party (DCoP) Mariam Gorgadze, GGI Governance Program Manager Mikheil Darchiashvili, Public Administration Reform Expert Mariam Davitashvili, and GGI partner Policy and Management Consulting Group (PMCG). Where appropriate, other GGI staff and partners are involved in providing support to Result 1 outcomes.

RESULT 1 ACTIVITIES

2.1.1 ACTIVITY 1.1.1: SUPPORT GOG TO IMPROVE POLICY PLANNING AND IMPLEMENTATION PRACTICES AT THE CENTRAL GOVERNMENT LEVEL Support GoG in institutionalizing policy planning, including policy impact analysis, coordination, and monitoring On December 20, 2019, the Government of Georgia adopted Decree #629 on the “Rules of Procedure for Development, Monitoring and Evaluation of Policy Documents” (RoP). The GoG Decree incorporates the Policy Planning and Monitoring Handbook and Manuals (annexes). Handbook sets standards for policy planning, monitoring and evaluation, while Manuals provide supplementary detailed instructions and relevant templates for all stages of the policy cycle. Accordingly, all policy documents developed at the central level of governance are required to meet the minimal standards of Rules of Procedure (RoP). GGI DCoP participated in a panel discussion on how development partners can support the implementation of Policy Planning and Monitoring Handbook and Manuals. GGI shared its experience and

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 i expressed interest in further support for GoG agencies to institutionalize policy planning, coordination, and monitoring systems. Housing strategy In 2018, the Ministry of Internally Displaced Persons from the Occupied Territories, Labor, Health and Social Affairs of Georgia (MoIDPLHSA) decided to create a medium-term strategy on housing. To substantiate its decision, the GoG has continued to support this commitment in the 2018-2019 Open Government Partnership Action Plan (commitment N14) by establishing an interagency commission whose goal is to analyze the current status and challenges and develop a housing policy document and action plan. The Commission consists of representatives of line ministries, as well as AoG, Parliament, Public Defender (Ombudsman) office, Tbilisi City Hall and others. The Commission is chaired by the Deputy Minister (DM) of the MoIDPLHSA. The same ministry is in charge of providing technical support. The Deputy Chair of the commission is the Deputy Minister of the Ministry of Regional Development and Infrastructure. All stakeholders, such as CSOs (including OSGF, Urban Reactor and EMC), municipalities, public institutions, experts etc. are engaged in policy development process. In 2019 GGI supported AoG and MoIDPLHSA by contracting a team of field experts, Ioseb Salukvadze and Vladimer Vardosanidze. GGI has also engaged the Policy Institute of International School of Economics (ISET) in the process with the goal to hold a policy impact assessment (PIA) and support the government in evidence-based policy making. During 2019, ISET held a number of meetings with stakeholders and developed a problem definition paper with analysis of the sector, major problems, market trends, baseline information and key findings. After incorporating feedback from GGI experts, the document was shared with working group for review and development of policy alternatives. GGI Policy Planning Specialist Nina Sarishvili provided the task force with concrete recommendations on how to transform the problem definition analysis into the draft strategy as requested by the rules and regulations. According to MoIDPLHSA, it intended to finalize the strategy development process at the end of 2019. However, the reorganization at the MoIDPLHSA adversely impacted the process of the housing strategy development and delayed the process. The work on Housing strategy recommenced in January 2020. GGI updated SOWs for three local STTAs and extended the contract with ISET. Newly appointed Head of Department for Social Protection, Giorgi Chavchavadze, was updated on the strategy development process and key deliverables developed by GGIs team of experts. The MoIDPLHSA, drafted the introduction of the policy paper which also included; situational analysis, goals, and tasks in compliance with the recently adopted RoP. COVID-19 and caused changes of the priorities within the ministry further delayed the Housing Strategy development process. However, the following series of consultations and document exchange between Nina Sarishvili, GGI and the Ministry still happened, as a result, the MoIDPLHSA submitted a revised problem definition, situational analysis with concrete problems and tasks addressing them. Considering Nina’s feedback, MoIDPLHSA shared a problem tree within the WG. Several comments arrived to the MoIDPLHSA, including from USAID GGI experts. MoIDPLHSA incorporated most of the comments in the document. During the final quarter of the reporting year, per the minister’s initiative, a meeting between USAID, GGI and ministry took place. During the meeting topics covered included the status of the housing policy document as well as issues that are hindering progress. Before finalizing the situational analysis with a concrete problem statement, the ministry requested GGI’s assistance to develop a policy brief that will define following issues: • Specify categories of the homeless population (considering Georgian reality) allocable under European Typology on Homelessness and Housing Exclusion (ETHOS)

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 2 • Advise on allocation of IDPs and eco-migrants to categories provided by the typology of homelessness (ETHOS), as needed; advise on integration of existing policy documents for IDPs and eco-migrants into a housing policy document • Provide a review and analysis of housing policy in European countries comparable to Georgia in size, population, and wealth, in order to identify what type of policy/strategy documents they produce in the field of housing • Prepare mapping of housing-related programs implemented on the municipal level, including those that address the needs of eco-migrants and IDPs. According to this request, Loseb Salukvadze prepared a brief analysis of 28 European countries in terms of housing policy and disseminated the documents among group members. Out of these countries North Macedonia, Slovakia and the Czech Republic were selected as countries that could be studied more in depth. In order to meet the ministry expectations, GGI’s STTA acquired a housing policy document of North Macedonia, translated it into Georgian and provided comments and analysis. Likewise, details on the housing sector in Slovakia were prepared. Both documents were shared with WG members for feedback, along with brief analysis of 28 European countries and a policy brief on unstable housing in Georgia, prepared by the ISET. Following WG comments, Loseb Salukvadze extended a chart on international experience with additional information on state agencies authorized to deal with housing issues, while ISET specified more details regarding groups of homeless people and added information on IDPs and eco migrants. To support experts in enquiring more information on housing policy in Czech Republic, ministry contacted embassy. To further the Housing Strategy development process, team of GGI experts will present all above- mentioned documents to DM of MoIDPLHSA to agree on future steps in the process. EPRC and Stanford University (CDDRL) LAD Workshop During this reporting period GGI continued to build on its earlier efforts providing support to the Economic Policy Research Center (EPRC) and Stanford University’s Center on Democracy, Development and the Rule of Law (CDDRL) to organize Leadership Academy for Development (LAD) in partnership with Free University of Tbilisi, between November 4-8, 2019. The LAD program in Georgia was led by Stanford University Professor Francis Fukuyama. The LAD program featured lectures from; Mary E. Hilderbrand, Associate Professor at the Bush School of Government and Public Service of Texas A&M University, and Kent Weaver, Professor, McCourt School of Public Policy at Georgetown University and David J. Kramer, McCain Institute for International Leadership. The LAD 2019 in Georgia trained 30 local and international government officials, CSO and private sector leaders to be effective reform leaders and promote sound public policies in complex and contentious settings. The LAD course was successfully conducted and received very positive feedback from all stakeholders. Assist GoG to develop regulatory framework governing citizen engagement, including public consultations and ensuring integration of public consultation into regular policy and law- making cycles at the central level Following recommendations from the 2018 Support for Improvement in Governance and Management Baseline Measurement Report, GGI has been supporting the Administration of the Government of Georgia (AoG) to amend the regulatory framework in order to establish mandatory requirements for public consultations on all relevant policy documents prior to submission to the government for adoption. GGI has been providing technical assistance, complemented with tailored trainings and other capacity- building interventions, to ensure the integration of public consultation into regular policy and law-making cycles. More specifically, GGI supports the Policy Planning and Coordination Department (PPCD) at the AoG to develop guidelines on Public Consultations as an annex to the new Policy Planning and Monitoring

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 3 Handbook adopted by the GoG Decree #629 on “Rules of Procedure for Development, Monitoring and Evaluation of Policy Documents” (RoP). According to RoP, open consultations are defined as a mandatory component of policy development processes at each stage of the policy cycle, including situational analysis, development, monitoring and evaluation of policy documents. During the reporting year, GGI contracted Irine Urushadze as an STTA. She was tasked with analyzing the international experience and develop guidelines for public consultations. The STTA was advised to consider the research on public consultations that had been prepared by the Thematic Group of Parliament. In February, the GGI STTA submitted an inception report and a proposed structure of the guidelines for public consultations. The AoG requested that guidelines be equipped with quality oversight instruments, required by OECD recommendations. Considering the AoG requirements, the STTA prepared draft guidelines, incorporating the following topics; public consultations as a component of policy planning systems, planning of public consultations, overview of consultation mechanisms (including different forms and methods of consultations, along with detailed instructions on how to organize them etc.), feedback via social media, preparation of a summary report on public consultations, and evaluation of the entire process. The draft guidelines were shared with the AoG for feedback. The plan was to discuss the document with stakeholders at the workshop, by the end of March however, COVID-19 delayed the process. AoG fine-tuned the draft guidelines in order to streamline them with the other components of the policy planning manual. Irine Urushadze confirmed the relevance of AoG proposed interventions and continued working on training materials and checklists. The final version of the document was agreed on and shared with government agencies for their feedback. Again, as a result of COVID 19, further delays led to the AoG not being able to provide timely feedback. The STTA was able to translate the guidelines into English. According to AoG, a public event to discuss the draft guideline will be organized after the October elections. Once approved, the document will become annex 11 of the Rules of Procedure for Development, Monitoring and Evaluation of Policy Documents. Support GoG at all levels in evidence-based decision-making and policy formation and develop capacity of GGI partner agencies in policy planning coordination and monitoring, including Regulatory Impact Assessments (RIAs) GGI continues to provide support to the institutionalization of Regulatory Impact Assessments (RIAs) as an integral part of policy and lawmaking, in both the executive and legislative branches of the government. In the extension period, GGI will develop an RIA manual, providing concrete examples and operational tools for RIA practitioners, and will conduct a series of training for Parliament and GoG staff. Georgia has taken steps towards institutionalizing the Regulatory Impact Assessment (RIA) and making it an integral part of policy-making decisions, both in the executive and legislative branches of government. RIA is a proven and effective policy-making tool and has been integrated into policy and legislative processes in many countries. Also, it is of note that institutionalizing the RIA is one of the commitments under the Association Agreement between Georgia and the EU. GGI works with the Parliament and the administration of the Government to support a dialogue between the executive and the legislature on institutionalizing RIA, and to build partner agencies’ capacity in applying RIA methodology in practical policy development work. With GGI support, the Parliament of Georgia piloted RIAs on specific policy initiatives. During year 4 of the program, the Parliament adopted amendments to the Organic Law “On Normative Acts”, making the RIA mandatory from 2020 for initiation of the amendments by the Government to the legislative acts included in the list, adopted and periodically revised by the GoG. GGI was also closely engaged in all consultations with Ministry of Justice (MoJ) and AoG, responsible entities in the GoG on RIA introduction, together with all development partners supporting reform (German Agency for International Cooperation (GIZ), World Bank (WB), European Union (EU) and USAID (G4G)). Following

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 4 the decision made jointly with MoJ leadership and donors, ISET worked closely with GIZ and EU experts and came up with the final draft of the methodology, which serves as an attachment to the normative act combining RIA methodological part and institutional arrangement of RIA process. Normative act was adopted by GoG on the 17th of January 2020. On the 23rd of January the MoJ hosted coordination meeting with development partners, aimed at reaching an agreement on public awareness campaign efforts along with capacity building activities and supporting public agencies in RIA institutionalization. As agreed with the MoJ and development partners, a public awareness campaign was supposed to start with meetings that engaged representatives of public agencies and CSOs. Tailored trainings were planned to address the needs of up to 60 public servants, representing different public agencies (such as ministries, along with selected Legal Entities of Public Law (LEPLs) authorized to develop draft laws fell under mandatory RIA). With ISET involvement, GGI planned to be a key provider of the trainings and awareness meetings. Consequently, ISET drafted agendas and prepared budget for meetings and training activities along with the timeline of and questionnaire used for selection of the participants. However, Due to situation with global pandemic of COVID 19, all training activities planned for late March were postponed. Later during the year, per GGI request, ISET tailored a training agenda and budget to the specifications of on-line activities. The MoJ supported the concept of an online training. Moreover, the MoJ identified two topics the trainings should cover from the list of amendments planned by the MoJ in 2020 and formed two groups for the training, with 6 participants in each group. Participants were comprised from different government agencies, who were selected by their agencies to implement RIA within their agencies. Trainings started on May 4th and lasted till June 19th . Participants were actively involved in the process of working on two simple RIA reports. Training for next group of civil servants is planned to be provided with support of USAID Economic Governance Program. It was intended to build on GGI’s experience in provision of on-line RIA training, including using RIA training materials prepared with GGI request, Thus, ISET was again engaged in the process as a training provider. During the next PY USAID GGI’s contractor - ISET will work on development of RIA manual. The need for such manual has been reaffirmed after the official institutionalization of RIA and the delivery of the first pilot training. Support GoG to analyse implications of COVID 19, identify lessons learned and corrective measures in terms of health, economic governance, social, education, as well as legal gaps Governance Case Study – Operation of the Government of Georgia Under the Emergency Rule COVID-19 led to Georgia declaring a State of Emergency leading to an unprecedented reality for Georgian citizens and the countries governance structures as a whole. The discussion about an acceptable balance between citizens’ rights and health and safety of the population is ongoing worldwide, and a number of countries have faced challenges when applying restrictions and limitations on citizen freedoms. In order to critically analyze how the Government of Georgia has handled the crisis in the legal and procedural realm, GGI solicited and received a formal proposal from the Georgian Young Lawyers Association (GYLA). GGI awarded a grant to GYLA during quarter 4 of the reporting year. GYLA has started to systemically analyze the government’s crisis management system in response to the COVID-19 pandemic. The grant will lead to the provision of recommendations based on direct meetings and comparative analysis conducted as part of the study. GYLA will also advocate for its evidence-based recommendations with the Government of Georgia, as well as the wider public through media outreach. Another goal of the project is to promote good governance principles and transparency in the work of

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 5 the executive branch during the state of emergency which includes pandemics or any other crisis management situation. This analysis will be a forward-looking tool that will assist the Georgian authorities in better-handling a possible second-wave of the pandemic and should be able to act as a guiding document in future emergency situations that may require limiting the rights and freedoms of Georgian citizens. The grant activity is scheduled to conclude in November 2020. During this reporting period GYLA submitted the grant timeline and drafted the methodology chapter of the study. GYLA also actively engaged in desk research and elaborated the structure of the interviews. The organization identified those who would be interviewed and drew up an initial draft of three chapters based on the conducted desk research. The chapters include the status, powers and composition of the Georgian government and a review of the acts regulating the state of emergency in Georgia. In the upcoming reporting period GYLA plans to continue with the research period, conduct interviews with representatives from the Government Administration and finalize the first draft. The draft will be presented to GGI and sent to relevant stakeholders for feedback. Supporting the Government of Georgia (GoG) in Mitigating the Impact of the COVID-19 Pandemic by Promoting Inclusive and Evidence-based Governance in Key Policy Areas The COVID-19 pandemic has created a set of unique challenges in Georgia. The health crisis has triggered an economic and social crisis that affects individuals, families and communities significantly. The impact is strongly felt due to the measures that have been put in place to combat the pandemic. These measures, while necessary, exacerbates underlying issues like multidimensional inequalities and weak social protection systems. These challenges require policy redesigns aimed at improving governance systems in order to achieve improved outcomes. USAID GGI awarded a grant to the Economic Policy Research Center (EPRC) to meet the need for policy- level analysis and bridge the gap between research and action. The grant awarded to EPRC will pursue two inter-related goals. As a short-term goal, the actions under the framework of this project will optimize COVID-19 response and recovery strategies in an accountable, comprehensive and integral manner, by providing evidence-based, coherent and goal-oriented solutions in critical policy areas. This short-term goal is linked to a set of urgent objectives and deliverables which respond to the ongoing pandemic and the immediate challenges in terms of public health and socio-economic trade-offs. At the same time, the project will pursue a long-term goal of promoting inclusive and innovative public governance in critical areas including; healthcare, social protection, education, and economic development. Effective governance in these areas is contingent upon multi-stakeholder and pluralist consultations that lead to a formulation of a coherent vision of effective public policies and the roadmap for their achievement. Additionally, the grant will pursue a structured Multi-Stakeholder Engagement Processes to ensure participation of a diverse group of stakeholders in developing a common vision on governance in four overarching policy areas – (1) Health System, (2) Social Protection, (3) Education, and (4) Sustainable Economic Development. In order to meet this demand, EPRC has established four multidisciplinary and independent Thematic Task Forces in the above-mentioned areas. During the current reporting quarter, EPRC established and staffed the four Task Forces with relevant experts and engaged in organizing and conducting bi-weekly meetings. EPRC also liaised with the GoG representatives and held a meeting with the Minister of Healthcare, Ekaterine Tikaradze. Separate meetings and discussions were held with Education Ministry representatives to identify the scope of EPRC’s engagement that takes into account the policy analysis needs of the Ministry. EPRC is currently in the process of providing feedback to the government proposed COVID-19 response plan, which was submitted to EPRC for comments by the Deputy Minister of Healthcare, Tamar Gabunia, in September.

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 6 On September 18-20, EPRC also organized a two-day session for Social Issues Task Force, focusing on the main postulates in social policy (solidarity vs. individual responsibility; equality vs. equity; measuring social care efficiency), as well as social policy amid COVID-19 reflecting on government response, and risks and threats (lack of income, childcare, healthcare risks). The chair of the task force Akaki Zoidze presented a draft discussion paper on the social protection framework. The participants discussed key terminology and scope of social protection, approaches, and methodologies of different countries, the role of pension and social protection mechanisms, social programs, and respective services. The discussion, also, encompassed talks about central and local government competencies with regard to social protection and which functions can be better administered by central or municipal authorities. The role of social workers and related challenges was an important topic as well. A meeting with the Deputy Minister of Health and Social Affairs Tamar Barkalaia to discuss the social protection framework is being prepared. Lastly, EPRC produced four knowledge products. Two of the publications - Healthcare – a right or individual responsibility and Preventive Measures in Healthcare – focused on broader questions in healthcare field which set the stage for policy relevant Analysis. The remaining two publications - COVID-19 Post Crisis Plan and Strategic Vision for Healthcare Development – focused on providing early comments to government’s outline of a post crisis plan and identified possible strategic directions for healthcare development. In the month of October, EPRC plans to hold public discussions, both online and in the format of media talk shows and working meetings, to raise awareness about the main messages derived from the Healthcare Task Force analysis. GGI will continue to engage in the task force meetings and monitor the implementation process. Survey on Legal Regulations on Crisis Management In June 2020 the Government of Georgia published a government report “Measures Implemented by the Government of Georgia Against COVID-19”, describing all the measures and national response to the pandemic from the very beginning. The report provides descriptive information about the activities implemented by the government and their rationale. However, the report also recognizes the need of more thorough, independent, large-scale study to analyze the "Georgian way" of managing the pandemic- related crisis, identifying shortcomings, assessing the state institutions' actions during the crisis and enhancing their capacities for more effective management of the projected next waves of the pandemic, as well as other crisis. For that purpose, AoG has been tasked to organize and coordinate implementation of the study with support of development partners. The research will be organized around 3 key directions: legal system of crisis management, crisis management and governance and human rights and socio-economic protection. It is anticipated that this study will look at the measures in response to pandemic, assess their effectiveness, and recommend refinements where needed. At the same time, it will explore longer-term structural reforms that might be undertaken to build social resilience and benchmark Georgia’s performance against international practices. In agreement with the AoG, local STTA Shalva Khutsishvili is assigned to analyze the crisis management and governance part of the study. He will support the AoG by conducting desk research to analyze crisis management and governance practices of the Government of Georgia during the pandemic outbreak of 2020. Mr. Khutsishvili will then create a package of recommendations and supporting material for relevant agencies involved in the crisis management system will be developed. The Local STTA will be backed by an International STTA and support the latter with methodological interventions in select components of analysis. More specifically, the STTA will be assigned to analyze regulations/guidelines of crisis management and governance in foreign countries, addressing COVID-19 caused challenges and as a joint effort, provide input in development of criteria for assessment of select countries in the field. During the inception phase of his consultancy, Shalva Khutsishvili has submitted a research methodology and a questionnaire for

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 7 central and local government agencies requesting information on crisis management practices and legal regulations. AoG has been working to collect required information from government agencies to move forward with the study development process. Meanwhile, in close consultation with the home office, GGI suggested five international STTA candidates to the AoG . AoG shortlisted the two most relevant candidates and held interviews to get a better insight into the proposed candidates experience. At the end of the reporting year, AoG identified Dr. Roy J. McGroarty as the expert with the most direct experience and engagement in COVID-19 issues to serve as an international STTA in the study preparation. . The legal system for crisis management is envisaged as the 2nd component of the study. This intervention, will allow the AoG to analyze the preparedness of the legal system to deal with issues around the pandemic and based on the recommendation to improve readiness in the future in order to better address similar crises. The desk research of the Georgian legal framework will focus on analysis of pre-COVID and COVID related regulations and examine their flexibility for Public Health Crisis Management System (by assessing the state’s legal tools for effective and rapid management of the pandemic). To understand the foundations for declaring a state of emergency, the respective decree will be assessed as well. The analysis will also focus on the evaluation of the rationale for legal interventions imposed with government decrees within the state of emergency. Following the detailed analysis, it is also essential to assess the rationale of the post-emergency legal interventions, including legal amendments in the Law on Public Health. It is noteworthy, that the analysis of the legal system for crisis management will reflect findings of assessments developed by different stakeholders, including report of the Georgian Young Lawyers’ Association (GYLA), as applicable. Additionally, AoG takes a full responsibility to coordinate among different donors working on the government study.

USAID GGI local STTA Shalva Saghirashvili was contracted for this assignment. At the end of reporting year, he presented an inception report, outlining key findings of desk research of Georgian legal framework (crisis management regulations of pre-COVID-19 and COVID-19 period) and its flexibility for Public Health Crisis Management System.

2.1.2 ACTIVITY 1.1.2: SUPPORT MRDI AND PARTNER MUNICIPALITIES TO CONTRIBUTE TO THE EFFORTS OF LOCAL DEVELOPMENT AND DECENTRALIZATION Support Batumi and Kutaisi City Halls to effectively implement City Development Strategies During program year 5, GGI engaged PMCG to develop an investment catalogue for Batumi and Kutaisi municipalities. After rounds of consultations with different stakeholders, PMCG experts developed: (1) Comprehensive analytical reports on the investment potential of Batumi and Kutaisi municipalities and (2) List of potential investment opportunities of Kutaisi municipality based on priorities. During the opening quarter of the reporting year, the PMCG Team started working on an export catalogue. However, Kutaisi leadership requested they expand the scope of the task and instead of cover only Kutaisi and consider the Imereti Region under the export catalogue and to give an economic boost at the regional level, which would have more profound implications. PMCG expert team prepared a table of content for such a catalogue as well as on December 27 participated in the meeting specifically organized by the Imereti Governor with participation of all mayors of the municipalities under the region. At the meeting, municipal leadership was asked to provide detailed information relevant to the development of the Export Catalogue. The work on the Export Catalogue was successfully finalized and copies were printed and shared with Kutaisi municipality leadership support.

Finally, Batumi City Hall requested assistance to develop a Risk Management Methodology for its municipal programs in line with the methodological manual approved by the Minister of Finance with the Decree N644. GGI hired Giorgi Tsimintia for this assignment. Giorgi analyzed the legislation of Georgia in light of

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 8 regulating project risk management process in public institutions of Georgia, held meetings and interviewed all engaged parties as well as studied best international practices in close coordination with Batumi municipal staff and mid-level management, and also created a Risk Management Manual. To ensure the application of the manual in practice, the GGI expert delivered a three-day training for 30 Batumi Municipality staff. Batumi City Hall decided to begin the institutionalization of the manual by piloting the manual from 2020. According to the head of the Investment Policy and Grant Program Management Section under the Municipal Policy Department of the Batumi City Hall, the Batumi City Hall will formally adopt a manual as a compulsory guideline during the project management process. Per Batumi leadership request, GGI will continue its support in the risk management methodology institutionalizing process under the extension. Support MRDI to create guidelines on how to decentralize selected services Recommendations on transition of responsibilities for museums and theaters, primary healthcare, and social protection to municipalities

GGI supports the Ministry of Regional Development and Infrastructure (MRDI) to develop guidelines on how to decentralize selected services. At the end of 2019, GGI contracted local STTA, Elizabeth Sopromadze, to study the issue and develop recommendations on the transition of responsibilities for museums and theaters, primary healthcare, and social protection to municipalities. To address the task, GGI experts held a number of interviews with stakeholders (including high-level managers of respecting ministries and working-level staff, as well as field experts, theatre and museum directors, representatives of National Association of Local Authorities of Georgia (NALAG), local government employees etc.), studying thoroughly the regulatory and management aspects. According to key findings and recommendations, decentralization potential for all four services needs to be addressed individually. GGI expert recommended to develop an effective monitoring and evaluation mechanisms aimed at improvement of management of theatres and museums, elimination of legislative gaps and preparation of long-term state development policy of the field. According to the GGI expert, an immediate handing over these functions to municipalities would reveal management problems. MRDI intends to share the report with the working group on decentralization. Before that, per MRDI request Elizabeth Sopromadze has to make minor revisions to the report. Namely, it will be split into four individual reports per each service. During PY 5, MRDI discussed and shared with donors the draft Decentralization Strategy and AP for 2020- 2025, which was adopted by GoG on December 31, and asked for support in its implementation. According to MRDI it is intended to identify more areas and responsibilities to be transferred to the municipalities, based on the principle of subsidiarity. Guidelines on decentralization of services/competencies in the field of agriculture and environment During the reporting year, GGI contracted Mr. Nodar Kereselidze to analyze services/competencies of state agencies in the agricultural sector in respect of potential for decentralization. In parallel, Khatuna Gogaladze was assigned to analyze state competencies in the field of environment protection. To ensure correct interpretations of the key findings of the study and viability of the recommendations, both STTAs were supported by the expert on decentralization and local self-governance, Elizabeth Sopromadze. During the inception phase of their consultancies the GGI consultants in consultation with MRDI drafted a list of possible directions for analysis. Per request of MRDI Nodar Kereselidze held presentations and provided the ministry with key findings from the inception report, incorporating an analysis of Georgia’s relevant legislation and policy/strategic papers and reports. In addition, international practice has been analysed based on the examples of 7 EU member countries: Estonia, Latvia, Lithuania, Poland, Croatia, France, and Greece. The desk review revealed four major directions of agricultural functions and services that fall under the authorities of the central government, namely the Ministry of Environmental Protection and Agriculture (MEPA) and has potential to be transferred to the local authorities: support schemes to

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 9 farmers and agribusinesses; food safety, veterinary and plant protection measures; Infrastructural works (irrigation/drainage system rehabilitation/construction); land management. At the second stage of the consultancy, interviews were conducted with representatives of major stakeholders – relevant government entities, local authorities, experts, farmers etc. The respondents were identified, and interviews scheduled in close cooperation and with support of GGI decentralization expert. The interviews were held with representatives of selected municipalities, Famers’ Association, individual farmers, central state authorities and agencies and decentralization experts. In total, 16 interviews were conducted. As a result of the interviews, directions in the field of agriculture were adjusted and tailored to the needs of municipalities. During the identification of priority directions, specific criteria were applied including identifying the capacity and readiness of municipalities, ongoing/planned reforms, respective legislation, additional revenue generating potential for municipalities, effectiveness of measures if implemented locally, challenges of farmers, risks of corruption, etc. Through analysing information obtained during interviews and desk research, the following priority directions were identified in the context of decentralization: management of bio-safety points linked to animal droving routs; provision of services to farmers (Information and Consultancy Centres); and pasture management. All findings and recommendations were translated into the Guidelines on Decentralization of Services in the Field of Agriculture and presented to MRDI for review and feedback. MRDI comments were addressed respectively in the final version of the Guidelines. The same methodological approach was used during the preparation of guidelines on decentralization of services in the field of environment. GGI’s expert prepared an overview of legislation in relevant fields of governance, as well as key findings in select areas with the potential of transfer of functions to municipalities. Khatuna Gogaladze with support of GGI’s decentralization expert, conducted interviews with representatives of select municipalities, CSOs, state agencies and decentralization experts. As a result of interviews, select functions in the field of environment protection and natural resources were analysed with potential to decentralize at the local level. During the identification of priority directions, experts considered the same criteria applied in case of the identifying functions in the field of agriculture mentioned above. Additionally, the expert provided her insight regarding readiness of central government agencies to support process of decentralization, financial resources available for the implementation of delegated functions, and other related issues. Considering priorities identified by the field expert, Elizabeth Sopromadze prepared analysis of international experience. Midterm report and analysis of international experience were presented and discussed with MRDI on June 29. As a result of intense consultations with MRDI, following priority directions have been identified: forest management, protected areas, plantations on the municipality territory, extraction of wild animals from nature, extraction of inert materials, ambient air protection. Recommendations on decentralization on above-mentioned competencies were unified in the respective Guidelines. Support MRDI to study and identify statistical data that should be collected at the local level The recently adopted Decentralization Strategy prioritizes three strategic goals: (1) increasing the role of self-governing units in solving significant part of public affairs; (2) providing self-governing units with appropriate material and financial resources; and (3) establishment of reliable, accountable, transparent and result-oriented self-government. Following the goals of the Decentralization Strategy and action plan, MRDI intends to develop a mechanism for the collection of reliable statistical data by municipality for informed decision-making. To this end, MRDI aims to identify statistical data framework at the local level and develop respective process and methodology. Due to the complexity of the issue, the intervention requires close coordination and cooperation among public agencies, as well as coordination with different stakeholders and development partners. During the reporting year, GGI launched its support to the Ministry of Regional Development and Infrastructure (MRDI) in the statistical direction with the ultimate goal of enable the ministry to monitor

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 10 local government performance in service provision and possibility to aggregate all relevant data at the regional and country levels. To this end, USAID GGI contracted two international experts on decentralization and local statistics and one local expert on statistics. After a series of coordination meetings were conducted with the participation of Polish experts Tomasz Potkanski and Krzysztof Jaszczolt and local expert Zaza Chelidze, MRDI needs and clear assignments for GGI experts was established. The SoWs for international and local STTAs consultants includes desk research which was used to identify and analyze priorities/objectives and status of implementation of activities interrelated with development of local statistics. To this end, experts will review Decentralization Strategy 2020-2025 and Action Plan 2020-2021, relevant legislation/ guidelines/ surveys, and implementation reports. They will also study the best international practices and develop proposals relevant for a Georgian context. Inception activities will be followed by research on the current status of local statistics, incorporating the following components: (1) Mapping of the beneficiaries of the system of municipal statistics (GEOSTAT, municipalities, GoG ministries and agencies); (2) Review of relevant functional (business processes and institutional arrangement) and financial aspects illustrating current status of local statistics; (3) Recommendations on legislative provisions for establishment of reliable system of local statistics, including recommendations on financial and institutional arrangement of relevant stakeholder organizations / system beneficiaries. On the final stage of consultancy USAID GGI experts will develop draft Guidelines (process and methodology) for the collection of reliable statistical data by the municipality for informed decision- making. At the same time, experts will be assigned to liaise and coordinate with EU and other development partners on establishment of a set of final indicators for the municipal services and data collection methodology. During the reporting period, USAID GGI’s two international and one local expert commenced work with development of Inception Report, describing inter-related components of current system and different activities of Decentralization Strategy. MRDI was in charge to provide them with all contextual documents and reports. Per ministry and GGI request, PMCG shared reports and concepts related to Performance Monitoring and Evaluation System, including statistical aspects of key performance indicators developed under the project implemented by the PMCG jointly with other organizations, including the National Association of Local Authorities of Georgia (NALA). An inception report was submitted and presented to MRDI. For better coordination, it was agreed that MRDI will organize a meeting with GEOSTAT to discuss their priorities regarding data to be collected at municipal level (by municipalities). GGI’s local expert was supposed to conduct interviews with municipalities and ministries in early September as considered under his SoW. However, Zaza Chelidze refused to continue the contract, due to several reasons including complexity of the assignment requiring too much time and effort of the local expert contradicting with expert’s other commitments. Per PMCG suggestion, Zaza Chelidze was replaced by Tengiz Tsekvava. Owing to his prior managerial experience at the Department of Statistics and an advanced knowledge of the majority of institutions and existing reporting systems, local STTA led working dialogue with the current GEOSTAT management and field staff specialized in different thematic fields (sources of data), along with other government agencies. Due to complexity of the assignment, the Mid-term report will be submitted with two weeks delay, on October 5, 2020. Introduce new and improve existing citizen consultation mechanisms at the local level GGI continues to strengthen local citizen consultation mechanisms by supporting select municipalities to develop existing citizen engagement platforms and share experience through intermunicipal partnerships. GGI has been closely engaged in the communication/coordination with all stakeholders including MRDI, Digital Governance Agency (DGA, formerly DEA), MSDA on provision of citizen engagement instruments

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 11 to the municipalities as considered by the decentralization strategy and AP. During several phases of discussions and back and forth among stakeholders, it was decided that GGI will provide support to transfer VOLIS (Estonian e-participation platform for at local and central governments) with its full capacity to Georgia (for information: so far Kutaisi and Akhaltsikhe were using only participatory budget module while VOLIS has much higher capacity). At the end of the reporting year, GGI contracted two Estonian experts (Henri Pook and Aram Sahradyan) to help DGA and MRDI to fully and effectively institutionalize VOLIS - E-Participation Tools Platform for Municipalities and Central Government Entities. During the consultancy process the Estonian experts provided Georgian side with working images of the volis.ega.ee server and a refreshed manual for the download and starting of VOLIS image. Additionally, they provided a special web folder with VOLIS materials, including access to download the image, manual, and a presentation has been created. Further, the Estonian experts provided extensive trainings for the DGA administrators, helpdesk personnel and software developers. A full transfer of VOLIS to the Georgian side will be completed by the end of 2020. Once the transfer is complete, VOLIS will be amplified with selected modules requested by MRDI with GIZ support and under USAID GGI Estonian expert coordination. Support MRDI and MoF to promote consistent growth of self-governments’ own revenues According to the Decentralization Strategy and Action Plan, lack of financial resources causes incomplete implementation of authorities by the local governments (LGs). Correspondingly, the second goal of the strategy considers ensuring adequate material and financial resources for local self-governments. More specifically, objective 2.1 of the strategy provides support for LGs in consistent increase of local revenues. The objective is further clarified under 2.1.1. activity considering revision of the local fees and related indicator requiring studying of various practices pertaining to local fees and developing recommendations. To this end, per MRDI request, USAID GGI will engage local consultants to study Georgian legal framework and its implementation as well as the best practices around the European countries, comparable to Georgia in terms of size, population and level of economic development and develop realistic recommendations to address current challenges. At the end of reporting year GGI has developed relevant SoWs and aims to commence support activities from the next Project Year. Support intermunicipal cooperation initiatives based on the Intermunicipal Cooperation framework Ongoing decentralization reform considers MRDI support to Georgian municipalities in their intermunicipal cooperation initiatives. During PY 5, GGI local consultant, Kakha Gurgenidze supported MRDI to translate recommendations and guidelines provided by GGI’s international experts into concrete legislative initiatives and framework regulations. Kakha Gurgenidze has developed the sample acts and amendments to the current legislation. The key discrepancies intervening IMC initiatives were discussed with local self-government experts, representatives of MRDI and Kakheti and Shida Kartli regional administrations. During the opening quarter of the reporting year, GGI engaged local STTA, Giorgi Toklikishvili, to finalize draft regulations on Intermunicipal Coordination (IMC) and make them compliant with local legal requirements set for the municipalities as well as develop guidelines on establishment and management of stray animals’ shelters. IMC guidelines, together with sample regulatory acts and financial formula was shared with MRDI and on December 18 and further discussed at the meeting with representatives of Ministry of Regional Development and Infrastructure, Ministry of Finance, Kakheti and Shida Kartli municipalities, Finance Officers Association of Local Self-Governing Units, Municipal Development Fund.

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 12 USAID GGI expert introduced to the participants the legal and managerial principles of the intermunicipal cooperation decision-making process as well as presented budget and finance, property, supervision and accountability issues. The presentation was followed by an active discussion. MRDI has formally accepted the draft regulations on IMC and guidelines on establishment and management of stray animals’ shelters, which according to the ministry will be used as a sample in establishment of other intermunicipal cooperation. Increased funding and an extension of GGI’s period of performance will allow the expansion of activities at the municipal level, including sharing and replicating achievements made in partnership with the local governments of Akhaltsikhe, Batumi, and Kutaisi through peer-to-peer learning and intermunicipal cooperation. Enhance capacity of MRDI Throughout the extension period, GGI supplements local development and decentralization interventions with a range of capacity-building activities, including a continuation of the GGI fellowship program that places highly capable fellows in relevant MRDI structural units. GGI also continues to provide tailored trainings to MRDI, including training modules based on municipal needs that can be rolled out throughout Georgia. During reporting year, GGI continued fellowship program with MRDI. Two fellows, who were contracted at the end of previous FY continued supporting MRDI. Nino Kbiltsetskhlashvili continued supporting the Department of Infrastructural Policy while Irakli Takalandze, was assigned to Department for Regional and Mountainous Development. Nino Kbiltsetskhlashvili left the internship program as she started a new job. Two new fellows, Anano Ejibia and Tekle Ortoidze, were contracted to support Department for Local Self-Government and Policy and one fellow was hired for Department for Relations with Development partners. According to fellows, distant work imposed some limitations with internal communication. However, they were still actively engaged in on-going activities, including development of final manual on participatory budgeting for mayors, incorporating case study prepared by GGI fellows. GGI fellows were also engaged in evaluation of regional projects, developed by respective municipalities and revision of the citizen’s satisfaction survey, conducted by UNDP program. Final version of survey will address comments and remarks provided by GGI fellows. Per request of MRDI, contracts for two fellows supporting department on Local Development and Policy were extended. During PY5, GGI contractor Idea Design Group (IDG) developed a new MRDI website and Project Management Platform – a comprehensive website with publicly accessible information on infrastructural projects including up to date data on project implementation. In December, IDG and MRDI presented the new web page to key internal and external stakeholders. During consultations stakeholders expressed comments related to the platform. Additionally, the DMs expressed concern that certain elements that would make the PMP a more efficient management tool were missing, including its link to the Budget Department. Project Coordinator from the ministry, Anna Gvenetadze, collected all comments from the ministry, and requested GGI’s assistance to finalize the tool compliant to the MRDI requirements. In consultation with USAID, GGI extended a contract to IDG to consider all issues identified during the consultation process. During the reporting year, IDG has been actively working on development of additional features requested by the ministry. However, due to COVID-19, contact with relevant stakeholders for the PMP has been delayed, and it has taken longer for IDG to reach agreements over the the new modules. IDG finalized budget modules, including budget revisions, payments modules. Interface and resettlement issues were also addressed. Further, IDG developed and submitted updated manual of the PMP reflecting newly developed modules. IDG also held trainings for the main stakeholders, including water and waste management companies, as well as roads department and the ministry staff regarding the use and administration of the PMP.

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 13 Support MRDI and selected municipalities to create training modules and conduct trainings for municipal servants GGI will continue to provide tailored trainings to MRDI, including training modules based on municipal needs that can be rolled out throughout Georgia. Through this intervention, GGI targets to increase the capacity of municipal servants. Additionally, under the extension, GGI plans to collaborate with the Zurab Zhvania School of Public Administration and in close coordination with CSB and support the school to implement its mission and improve the professional development of ethnic minority civil servants. To this end, GGI plans to work with the municipalities populated with ethnic minorities to improve their knowledge of public administration reform priorities, including policy development, decentralization, civil service legislation, open government, anti-corruption issues in combination with Georgian language. In addition to the topics mentioned above, with GGI assistance, the school will increase capacity of local civil servants on countering malign kremlin influence. It should be noted that recently, the mandate of the Zurab Zhvania School of Public Administration has been expanded to include trainings for all local governments. Latest developments regarding cooperation with School of Public Administration are discussed in section 1.1.5. OGP Training Module Per MRDI request, GGI worked to raise awareness of the local government staff from selected municipalities on Open Government Partnership (OGP) platform and increase their capacity in Open Government in line with its core principles: Transparency, Accountability, Civic Engagement and access to new technologies. To this end, during the reporting year, GGI selected and contracted two local experts (Nino Tsukhishvili and Salome Sagaradze) to develop a training module and conduct trainings for local government employees from selected municipalities in Open Government with particular focus on the following topics: Open Government Partnership (OGP); Civic engagement forms and mechanisms; civic participation – voluntary employee; benefits of civic participation; possibility to share political responsibility; motivation and self-organized citizen engagement mechanisms; Instruments for transparency in LGs; forms and mechanisms for accountability; political importance of accountability; best international and domestic practices; benefits to the local population. At the initial stage, experts developed and submitted work plan of their consultancy as well as conducted thorough review of international experience and best practices in connection with Open Government training modules; developed inception report and presented key findings of the review. Later, Nino Tsukhishvili and Salome Sagaradze submitted a draft Training Module, curriculum and training material package for two full day training. After considering GGI comments, documents were discussed at the workshop with relevant stakeholders (GYLA, TIG, IDFI, CSI, OGP Secretariat, MRDI). Participants of the workshop gave very positive assessment to the OGP Training module at the same time voiced few recommendations to further improve the module, curriculum and materials. OGP Training module, curriculum and materials were finalized based on the workshop results. GGI’s experts will conduct two 2-day training sessions for 55 municipal staffers in total. Training sessions will be held as soon as pandemic situation permits to hold face to face trainings. Training Module in Management of Municipal Legal Entities During the reporting year, per request of MRDI, GGI supported MRDI and partner municipality of Batumi to enhance capacity of municipal servants in management of municipal property and municipal legal entities. It’s noteworthy that MRDI request was based on the comprehensive needs assessment results organized by the ministry across all municipalities. Within the support, GGI local STTA will elaborate a general course on management of municipal property and municipal legal entities, which after Batumi, can be further used by MRDI in support of capacity building needs of other municipalities.

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 14 Local expert Shota Murghulia was identified for the assignment. The expert is expected to develop training module, training program and all needed materials and provide training for 16 servants in Batumi. Due to contracting delays, an activity was postponed for the next PY.

2.1.3 ACTIVITY 1.1.3: IMPROVE SERVICE DELIVERY AT THE CENTRAL AND LOCAL LEVELS Guided by the service delivery pillar of the Public Administration Reform (PAR) Roadmap 2020, Georgia has made significant progress in the development of public services. The incorporation of e-governance tools and modern approaches has rapidly transformed public services in Georgia to be more transparent, accessible, and comfortable for citizens. Since inception, GGI has supported the GoG at the central and local levels to improve public service delivery, including supporting two legal entities of public law under the Ministry of Justice (the Public Service Delivery Agency [PSDA] and Data Exchange Agency) to promote e-solutions, such as e-signature and e-stamp, nationwide. GGI has also aided the development of a public service quality index, which will serve as a key assessment tool to measure the quality of public services in Georgia. Support PSDA to develop Service Delivery Index platform Starting in the first year of the program, GGI supported the Government of Georgia at the central and local levels in improving public service delivery. In order to further advance public service delivery, there was a need to develop an effective tracking and monitoring system of public service quality from organizations and customer perspectives. GoG has committed to develop a nationwide public service quality index, which should serve as a key assessment tool to measure the quality of public services in Georgia. The index is conceived to be based on service design, delivery and possibly pricing criteria, while bearing in mind the aspects of physical and electronic channels of public service delivery. To this end, in 2019, GGI provided support to Public Services Development Agency (PSDA) under the Ministry of Justice of Georgia to move forward with development of the public service delivery index. Most specifically, GGI contracted local STTA Irakli Gvenetadze as a lead expert and Danish expert Morten Nielsen. Morten Nielsen visited Georgia twice, each time he held many meetings with different stakeholders. As a result of the joint efforts, Irakli Gvenetadze developed a draft Service Delivery Index Concept and methodology taking into account best international practices and experience, which was presented to representatives of Government agencies, private sector and donor communities in December, 2019. GGI’s international STTA Morten Nielsen presented international experience and best practices related to the public service delivery index, while GGI’s local expert Irakli Gvenetadze walked participants through every aspect of the Public Service Delivery Index Concept. Final version of Public Service Delivery Index Concept and Methodology considering comments and suggestions from the audience have been developed and submitted to the PSDA on December 24, 2019. PSDA’s new chairman, Zura Sanikidze, considers approval of the concept and methodology a priority; however, due to the transition of the PSDA leadership, competing priorities as well as pandemic, delayed formal approval process. Once the concept and methodology are formally approved, GGI will provide support to PSDA in Service Delivery index platform development and operationalization. Support GoG to build resilient public service delivery system

As part of the Service Delivery pillar of the “Public Administration Reform (PAR) Roadmap 2020, Georgia has made significant progress in the development of public services. The rapid transformation by utilizing e-Governance tools and modern approaches has made public services in Georgia more transparent, accessible and comfortable for citizens. However, Georgia’s overall progress in advancing and improving public service delivery still faces the problem of lacking the common frameworks for ensuring high quality service delivery. Coronavirus pandemic revealed these challenges that have long been a concern of field experts in Georgia. Pandemic and accompanying measures, including restrictions have clearly demonstrated the need to build resilient public service delivery systems ready to adopt to challenging and

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 15 unforeseen circumstances in order to operate effectively and without interruption. GGI made a decision to provide support to the Government of Georgia to build resilient public service delivery system. To this end during the last quarter of the reporting year, GGI signed a sole-source grant agreement with local company IRC with particular goal to map government services, which had interruptions and other challenges due to the pandemic; then, jointly with AoG prioritize and study major public services in light of the degree of digitalization and develop specific recommendations to adjust these services to remote delivery where possible. The project implementation started at the end of reporting year with rounds of consultations among IRC, AoG, GGI and other relevant stakeholders. It was agreed that IRC will conduct comprehensive analysis of 20 public services provided by the Government. It is anticipated that the grant project will result in the following milestones:

− Criteria to identify priority areas/sectors and major public services. − Analytical paper mapping the public services provided by the Government of Georgia and the list of primary public services identified based on the predetermined criteria for further study, in light of their feasibility for remote delivery. − Criteria defining the extent of digitalization and subsequent Methodology guiding analysis of the degree of digitalization for the major public services during the pandemic. − Analytical report highlighting strength, weakness and challenges of delivery of the major public services during the pandemic based on earlier developed methodology and criteria. − Set of recommendations to improve delivery of the major public services in Georgia, which considers efficiency of the business process behind the service as well as specific steps required for digitalization of select public services to ensure remote delivery. Support LGs to improve their communications and outreach to persons with disabilities. Through the training of relevant employees, GGI improved the capacity of Batumi, Kutaisi, Ozurgeti and Zugdidi Municipal employees ability to communicate effectively with People with Disabilities (PWDs). During the program year, GGI contracted local STTA Maia Bagrationi to provide support to Batumi, Kutaisi, Ozurgeti and Zugdidi Municipalities to increase capacity of their respective staff for effective communication with PWDs. GGI’s expert traveled to Kutaisi and Batumi and conducted capacity needs assessment. Based on the findings, the expert developed a detailed inception report together with recommendations that were shared with both municipalities. Expert also developed a detailed manual for the municipal staff to effectively and adequately communicate with PWDs; prepared training agenda and materials as well as planned training sessions. Unfortunately, due to the coronavirus outbreak, the above- mentioned trainings were delayed. Training sessions were held during closing quarter of current reporting year in Batumi (July 21-23, 2020) and Kutaisi (July 28-30, 2020). In total, 109 representatives of target municipalities (Batumi, Kutaisi, Zugdidi, Ozurgeti) were trained for effective communication with persons with disabilities (40 staff members from Batumi municipality; 56 staff members from Kutaisi City Hall; 7 staff members from Ozurgeti municipality; 5 staff members from Zugdidi municipality). Based on the participants’ evaluation forms, the competence of participants has increased by around 3 points. Competence was scored on a 10 score scale. In Kutaisi, the initial average level of the participants’ competence was 5.6, and at the end of the training 8.6. The same indicators in Batumi were 6.3 and 8.8. Participants expressed high-level satisfaction with the conducted training. In Kutaisi, satisfaction with training was scored as 9.4 from 10 points and satisfaction with the trainer was scored by 9.6. The same indicators in Batumi were 9.5 and 9.8. The training was evaluated as a relevant initiative by the majority of participants; organizational aspects of the training and used methodology were also positively assessed. GGI also supports Batumi City Hall to improve its website and make it fully accessible to users with all abilities, including the Participatory Budgeting Module.

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 16 Support MRDI in improving water supply and wastewater services in Georgia In Year 1, GGI met a request of MRDI to support the water sector reform process by contracting an international water sector reform expert, Philip Giantris, to provide technical assistance to the ministry in its water policy and water enterprise restructuring efforts. Based on the situational analysis in Georgia and best international practices, the expert developed a set of recommendations for effective water sector reform and submitted them to MRDI for consideration. During Year 2 and 3, GGI maintained close cooperation with MRDI leadership on the water sector reform issues. At the beginning of FY2018, MRDI requested GGI’s support to identify, design and assess a model or models for improving water supply and wastewater services nationwide, thus making a significant step forward in meeting targets defined by the United Nations Sustainable Development Goal 6 - ensure availability and sustainable management of water and sanitation for all. GGI agreed to support MRDI to develop a new model that will serve as a framework and transitional solution for gradual achievement of full, effective, and efficient decentralization in the water services sector, consistent with legislation on the authority and responsibility of local governments and keeping with their developing technical capacity. To this end, GGI engaged international expert in water policy management Dr. Cale Case, who developed a preliminary draft concept document, which was shared with the MRDI. During PY5 through discussions with MRDI and utility companies working in pilot regions, the consultant developed a draft report that establishes the basic structural considerations necessary to move towards a decentralized water supply entity. Next, Cale developed alternative models of decentralized water supply utility for the review of the MRDI. GGI also contracted local STTA Zurab Jikia to focus on additional data collection and analysis. Experts jointly developed a comprehensive report on the Water pilot models, which was revised several times based on comments and additional input data from MRDI. It is also notable that per request of MRDI, on December 16, 2019, Cale Case submitted additional report with particular focus on improvement of water supply and wastewater management in the rural areas of Georgia. GGI experts continued addressing MRDI requests for improving report and providing clarifications. MRDI provided GGI’s local expert with updated data that was translated in English and submitted to Cale Case. The expert revised the report based on the updated data received from the municipal utility company Satisi and UWSC. Revised report was shared with MRDI. Further, in response to MRDI’s request Dr. Cale Case and Zura Jikia presented key findings/conclusions of updated report to the MRDI’s Deputy Minister Giorgobiani specifically covering: Information that was added to the report at the later stage; list of the villages that will not be part of the pilot and therefore need alternative solutions; list of the villages that should be added first to the network in case of enlargement; models/forms of the management – licensing, municipal; community based or/and individual. Deputy Minister Giorgobiani was pleased with the presentation. Nevertheless, she requested experts to come up with detailed recommendations about the management model of the water utility company in Guria region as well as management model for the individual solutions for the remote villages that will not be part of the network. Dr. Cale Case developed separate report depicting management models of water utility companies and submitted its final version on July 7, 2020. On July 31, 2020 MRDI confirmed acceptance of the reports and consultancy process was finalized. MRDI also stressed on the need to continue research of the technical solution of water supply in the villages.

2.1.4 ACTIVITY 1.1.4: STRENGTHEN LOCAL AND NATIONAL-LEVEL PUBLIC FINANCIAL MANAGEMENT SYSTEMS, INCLUDING PROGRAM BUDGETING Provide support to the MoF in introduction of Public Investment Management (PIM) system for the government agencies at the central and local levels following new methodology

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 17 The Government of Georgia has been implementing public finance management reform since 2007 and continues to deliver tangible results, such as progress in ensuring transparency of public finance in line with international standards, development of the fiscal discipline and fiscal rules, sound program based budgeting system for all levels of the Government, well-structured and fully integrated in-house developed electronic system (ePFMS) for Budgeting, Treasury and other related areas. Distinct steps were taken in 2016, when the government adopted a more systematic and rigorous approach to public investment management through Decree 191 “Investment Project Management Guidelines”, which further detailed PIM topics. These guidelines complement the budget code by providing underlying rules and procedures and by defining the roles and responsibilities of bodies involved in each stage of the PIM process prior to implementation of a capital investment project. The PIM Guidelines assist economic entities to evaluate capital investment proposals in a consistent and comprehensive manner, and enable them to prioritize competing projects, in the context of the national and sector strategic planning and budget preparation processes. In 2018 and 2019, GGI, in cooperation with the World Bank, has provided technical assistance to the MoF with the goal to improve and institutionalize public investment management methodology, including integration of public-private partnership opportunities and relevant 2018 IMF recommendations. Provided assistance included a number for trainings, review of exiting local legislation regulating PIM and PPP issues. During the first quarter of the reporting year, GGI supported the MoF team and worked with them and line ministries to analyze concept notes of 13 projects and provide feedback to the beneficiaries, who, in turn, had to complete the documents with required details. The next phase was meetings (group workshops) with beneficiaries which were held in 2 parts: One in Tbilisi (26-27 October 2019) – with the representatives of state government agencies and Tbilisi City Hall, and other in Batumi, with participation of Adjara, Batumi, Kutaisi and Poti municipalities to finalize projects. At the end of this stage, GGI expert supported the MoF to finalize all projects. Additionally, GGI expert supported the MoF to develop a format of submission of PIM projects to the Parliament jointly with the budget document .

GGI continues supporting the MoF to introduce Public Investment Management under the extension. While significant work has been carried out in previous program years, including through corporation with the World Bank, due to the complexity of this process, there is a need to conduct more intensive and comprehensive trainings to ensure institutionalization of public investment management methodology. During the reporting year, MoF Deputy Minister Kakauridze requested GGI’s assistance in introduction of PIM in practice. To this end, they approached GGI with request to provide expert supporting line ministries to develop PIM proposals. Batumi had a similar request, supporting the municipality to develop PIM project in line with the new methodology. GGI has developed the SoW. Nino Khatisashvili’s candidacy was agreed with MoF. MoF also considers Nino to support them to revise a methodology. Introductory meeting of PIM inter-agency Council took place on 25-26th of July in Batumi. The event was well represented. All members except one Deputy Minister of Finance were present. GGI expert Nino Khatisashvili made a presentation on best international practices on determination of the discount rate for public investment projects . At the meeting, Nino received specific tasks to identify best practices to define benefits in the area of sports and education. Support MoF to implement PPP methodology The Government of Georgia has an ambitious public investment agenda to be implemented both through traditional public investment and with the help of private investors in the form of PPPs and ensure sustainability of the process. During program year five, GGI held a number of coordination meetings and consultations with stakeholders involved in the PPP process including high level officials of MoF, MoESD, IMF, PP Agency and

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 18 ADB. After series of consultations, GGI expert completed drafting a Value for Money Assessment (VFM) methodology. During the reporting year, on December 23, there was a video conference organized to finalize all details among ADB, PPP Agency, MOF and GGI. ADB agreed to harmonize the PPP methodology with the VFM methodology “preapproved” by the MoF/IMF. On February 12-13, ADB visited Tbilisi and held intensive discussions with the MoF on PPP methodology with the goal to finalize all five phases in March as planned by the MoF. Later, ADB submitted to the MOF PPP guidelines, all five phases. GoG approved PPP methodology prepared with ADB and GGI assistance at the end of April, 2020. The methodology considers VfM assessment as suggested by GGI team. MoF adopted the methodology with individual legal act and plans to revise it within the next months to improve it as well as make it more comprehensive by expanding it to cover also IPSAS 32 standard. Per MoF request, GGI started organizing PPP training in coordination/cooperation with ADB. The trainings were launched on July 20 and were completed in mid-August by final test. The modus of this training was through a series of webinars for 3 weeks, scheduled every Monday, Wednesday and Friday between noon and 3 pm allowing participants to combine this training with their regular activities. The training was held in cooperation with ADB and their trainers. From GGI side Nino Khatisashvili was involved. Two-hour session on IPSAS was held by Tristan Jincharadze. The training was very interesting, and participants expressed their appreciation. Participants were also requested to submit their feedback on evaluation forms via google forms.

Support MoF to publicize Electronic Budget Transparency and Participation System (e- BTPS) One of the key areas of GGI’s support is to assist its partner agencies at the central and local levels to increase openness, transparency and accountability as well as ensure greater civic engagement in policy making process. Increasing transparency and accountability of the Public Finance Management has been one of the key priorities of Government of Georgia. As a result of progressive reforms led by the Ministry of Finance, Georgia with 83 point ranks 5th in the global Open Budget Index among 115 countries following New Zealand, South Africa, Sweden and Norway (https://www.internationalbudget.org/open-budget- survey/). It is notable that Georgia received high scores in two categories of the open budget index: Budget Transparency (82) and Budget Oversight (74). However, the third category of the index – Public participation (22) turned out to be the area where Georgia needs considerable improvements by providing enough opportunities for the public to engage in the budget process. To this end, along with other areas, USAID GGI provided support to the Ministry of Finance in elaboration of the concept for Open Budgeting Platform. Based on the above mentioned concept, the MoF in 2020 developed and launched an Electronic Budget Transparency and Participation System (e-BTPS - https://ebtps.mof.ge/) in order to improve public participation in the budget process. e-BTPS is an electronic platform allowing interested stakeholders to receive information about the state budget, its priorities and budget programs. Interested stakeholders are also able to plan budget by priorities or spending agencies.

During the reporting year, GGI got engaged in supporting the MOF in promotion of the Electronic Budget Transparency and Participation System (e-BTPS). To this end, GGI contracted local STTA Kakha Magradze to develop e-BTPS communication strategy and action plan. MoF GGI and Kakha Magradze through teleconference discussed the upcoming process and MoF expectations form the consultancy. It was decided that MoF will involve two pilot ministries - Ministry of Education (Education component only) and MRDI in promotion of eBTPS platform. GGI’s consultant submitted workplan which was agreed with the ministry and started consultancy process. At the initial stage expert conducted desk review including monthly media monitoring reports on MOF and budgeting issues and in-depth interviews using earlier developed questionnaire with about 12 representatives of different public institutions as well as GGI to assess e-BTPS current communication practice and for collecting specific recommendations and views on e-BTPS’s future Public Relations. As a result, the expert prepared a Needs Assessment Report of e-BTPS communication and shared with GGI and MoF for review. This was followed by the workshop with MoF

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 19 to discuss and agree on communication needs, communication vision and communication messages. As a result, the expert developed draft e-BTPS communication strategy (3 years) and Action Plan (1 year) and shared with the MoF. After rounds of consultation final versions of the e-BTPS communication strategy and Action Plan have been developed and shared with MoF on September 11, 2020. The final version of the action plan also includes activities for the two pilot ministries.

The consultancy process also includes trainings for the selected staff of the Ministry of Finance and 2 pilot Ministries to effectively use and e-BTPS.

Support MoF in development and application of tax expenditure analysis methodology According to the IMF fiscal transparency report, Georgia does not publish regular estimates of revenue loss from tax expenditures. Estimates of the individual tax expenditures may be released publicly at the time of presentation of the tax laws to the parliament, but there is no systematic reporting of the overall costs of existing and new tax expenditures in budget documents or fiscal reports. In 2019, through short-term engagement of local STTA, GGI supported MoF to develop a Tax Expenditure Methodology. Use of this methodology allows pretty good estimation of tax expenditures, however, it doesn’t provide enough details to analyze tax expenditures across sectors, goods and/or companies. Following the MoF request, under the extension, GGI further supports the MoF to update the Tax Expenditure Methodology in compliance with the international standards and best practices. During the reporting year, MoF had a number of discussions with GGI regarding the scope of the assignment and potential experts on nature of the assignment. Due to the complexity of the issue, per GGI recommendation, IMF was also consulted over the topic. After discussion, the MoF informed GGI that IMF offered assistance in the field. It was agreed that IMF expert will focus on tax expenditures of VAT, while GGI expert will do the tax expenditures of Income and Profit Taxes. Correspondingly, GGI updated SoW and identified Lasha Chochua as a leading expert., doing the benchmarking and analysis of the tax expenditure and Giorgi Maldzigashvili as a support expert , who will provide a lead expert with information on all privileged regimes for the Income and Profit Taxes. At the end of August, experts provided workplans for the assignment. On September 29, Tax policy development and administration specialist submitted an Inception Report highlighting key findings of the review of local context and international best practices and Tax Legislation specialist prepared an inception report analyzing individual taxes such as Income and Profit with a spreadsheet providing information on all privileges and various regimes considered through the Tax Code of Georgia referencing the sources enabling GGI lead expert to verify and further study information and related nuances. Support MoF to operationalize the IPSAS 31 standard The Economic Liberty Act adopted in 2011 has been recently amended according to which the value of the liabilities of PPPs defined by the PPP Law counts against the limit on state debt as 60% of GDP; additionally, the government shall disclose information to the parliament on compliance with the debt limit in the annual state budget documentation as well as the annual budget execution report. PPP liabilities should be recognized according to the relevant International Public Sector Accounting Standards (IPSASs), to the extent that they are incorporated in Georgia’s government accounting and reporting framework. The key standards for the recognition of PPP liabilities are SBAS 32 on concessions, IPSAS 19 on provisions, and IPSAS 13 on finance leases. The objective of IPSAS 32 is to prescribe the accounting treatment for intangible assets that are not dealt with specifically in any other IPSAS. It requires an entity to recognize an intangible asset if, and only if, specified criteria are met. Last fall, GGI expert Tristan Jincharadze, assessed all relevant liabilities (PPP liabilities) of preferential service projects within Georgia in the current public-private partnership.

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 20 Implemented activities were positively assessed by the experts of the IMF and the results of the project were reflected in the state budget. The goal of the assignment for this year was to analyze the accounting procedures for the different types of projects that fall within the scope of SBAS 32 regulation; to demonstrate which specific approaches should be used by both public and private partners to account relations, from launch all the way through the completion of the project, regulated under the specific type of contract. The objective was to provide in-depth analysis of the various international accounting standards associated with GCCA 32 and come up with specific accounting schemes for the parties of the contract based on real cases and practical examples. The project was carried out by collecting and analyzing theoretical and practical evidences, and consisted of three-stages: desk research, observing information about practical examples, as well as reflecting the collected data in the concrete instructions. GGI expert kept MoF engaged in the entire working process. During the reporting year, local STTA Tristan Jincharadze prepared an assessment report and recommendations on compliance with the requirements of GCCA 32 and shared the document with MoF. GGI received an appreciation letter from the MoF for the good work. Afterwards, GGI expert prepared and finalized guidelines analyzing the legal basis for accounting and the international standards which should be taken into account by the parties involved in public-private partnership agreements. The document was formally accepted by MoF. Later, on August 6, USAID GGI expert also held practical training on the manual per MoF request via Ms Teams, which was administered jointly with PPP training held in cooperation with ADB. Assist Akhaltsikhe, Kutaisi, Batumi, Dedoplistskaro and Dusheti municipalities to develop priority documents and program budgets for FY21 in compliance with the new program budget methodology According to the Budget Code of Georgia, the local governments has been developing budgets in a program format since 2013. GGI has been providing technical assistance to its three partner local governments (Akhaltsikhe, Batumi, and Kutaisi) to make local budgetary processes more transparent, participatory, evidence based, and in full compliance with the MoF requirements during fiscal years: 2016, 2017, 2018, and 2019. Within that period, the MoF introduced changes to the program budget development methodology several times. The latest revisions dated back to July 27, 2018, introduces new program budget development standards for the municipalities. Among other elements, updated Program Budget methodology provides new structure for the priorities document, some changes in forms and content programs. It is important that initial draft of priority document should include ceiling on appropriations for priorities, programs and subprograms. Additionally, methodology considers development of the medium term action plans.

During the reporting year, GGI issued RFP to identify an organization to provide support to City Halls of Akhaltsikhe, Batumi, Kutaisi, Dedoplistskaro and Dusheti municipalities to improve their public finance management capacities. Through competitive process GGI selected and contracted company CBI in consortium of the Finance Officers Association of Local Self-Governing Units of Georgia for the above- mentioned assignment. The contract implies provision of support to City Halls of Akhaltsikhe, Batumi, Kutaisi, Dedoplistskaro and Dusheti municipalities in development of FY2021-2024 Priority Documents, FY2021 program budgets in full conformity with revised and renewed program budget development methodology adopted by the Ministry of Finance of Georgia as well as Citizens’ guides and FY2020 budget implementation reports. Consultancy process started with kick-off meeting held at the Ministry of Finance of Georgia on March 6, 2020 with participation of MoF Deputy Minister, CBI and relevant representatives of City Halls of Akhaltsikhe, Batumi, Kutaisi, Dedoplistskaro and Dusheti municipalities. GGI contractor CBI also

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 21 conducted individual online trainings of Municipal staff of Akhaltsikhe, Batumi, Kutaisi, Dedoplistskaro and Dusheti on updated program budgeting methodology.

the initial stage, CBI developed and shared with Municipalities recommendations for further development of local budgeting process tailored to the individual needs of the municipalities. CBI also shared with GGI draft templates for the priorities, programs, subprograms and activities and provided practical examples. The templates are based on the methodology guidelines developed by the MoF. It must be noted, that Covid19 created significant hurdles to the budgetary process.

All 5 municipalities in close consultations with CBI developed initial versions of the priority documents for 2020-2023 while development of the medium-term Action-Plans for 20201-2024 in line with requirements of the new methodology turned to be a significant challenge for Akhaltsikhe, Kutaisi, Batumi, Deloplistskaro and Dusheti. Development of indicators for the sub-programs and activities is particularly a tall order for the LGs. At the same time municipalities have difficulties to define budget incomes for the next 4 years considering challenges caused by the covid. The abovementioned difficulties have been communicated with the Deputy Minister of Finance on September 1, 2020, who in turn acknowledged the problem and promised to work with municipalities to come up with the most effective and efficient solution NOn September 15, 2020 CBI shared draft medium-term action plan document prepared for Dedoplistskaro municipality to Batumi, Kutaisi, Akhaltsikhe and Dusheti municipalities as a sample and requested to develop their medium-term action plans using this sample. CBI continues to work closely with municipalities to further improve priority documents, medium-term action plans and program budgets for FY21 in compliance with the new program budget methodology.

Assist Akhaltsikhe, Ozurgeti, Zugdidi, Telavi and Gori municipalities to hold PFM assessment using Public Expenditure and Financial Accountability (PEFA) Standards

A strong PFM system is an essential element of the institutional framework for a well-functioning state. Effective PFM systems generate long lasting benefits, and significantly contribute to establishment of inclusive institutions, greater gender equality and balanced growth. Countries with strong, transparent and accountable PFM systems are better positioned to deliver services more fairly and effectively. The Government of Georgia has been implementing public finance management reform since 2007 and has delivered and continues to deliver tangible results, such as: progress in ensuring transparency of public finance in line with international standards; development of the fiscal discipline and fiscal rules; sound program based budgeting system for all levels of the Government; well-structured and fully integrated in- house developed electronic system (ePFMS) for Budgeting, Treasury and other related areas. According to 2018-2020 PFM reform strategy (PFMRS) main goal of the Government of Georgia is to ensure rational use of public finances. In order to achieve this goal, it is important to strengthen PFM systems that ensures fiscal discipline, efficiency and effective allocations of public resources in Georgia. As evident from many reviews and evaluations, including repeated PEFA reviews, public financial management systems in Georgia is strong and have been further improved as PFM Reform Action Plans have been implemented. Despite the above-mentioned progress effectiveness of public finance management systems at the local level still remains an acute challenge in Georgia.

GGI has been providing its support to municipalities of Georgia to effectively manage public funds from the launch of the project and implemented various activities in this direction. In the beginning of the reporting year (on December 24), at the event organized with GGI assistance, the MoF signed memoranda with selected 27 municipalities to provide grants addressing challenges identified through applying Public Expenditure and Financial Accountability (PEFA) assessment tool in 2017-2019. During the reporting year,

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 22 as a follow up and per MoF request, GGI decided to further expand its assistance on PFM related issues and assess and report strengths and weaknesses of public financial management system of the City Halls of Akhaltsikhe, Ozurgeti, Zugdidi, Telavi and Gori through the Public Expenditure and Financial Accountability (PEFA) framework as well as develop set of recommendations for improvement (For information: PEFA, as one of the strongest tools for assessment of the efficiency of public expenditure and finance accountability, objectively assesses public (Municipality) finance management quality. Using the quantitative indicators, Public Expenditure and Finance Accountability (PEFA) Efficiency Assessment Program creates basis to objectively measure strengths and weaknesses of public finance management (PFM). PEFA ensures PFM assessment in a specific period of time. PEFA assessment structure is a report that covers PFM system assessment on the basis of actual evidence.) Current PEFA assessment should cover expenditures by subnational governments for FY2017, FY2018 and FY2019. Following the competitive procedure Deloitte & Touche LLC was selected for assignment. Deloitte team conducted analysis of PFM processes in all 5 municipalities and submitted initial Draft Reports for each municipality that includes three main parts: 1. PEFA 2. Recommendations 3. Gender Responsive Public Finance Management (GRPFM). Further results of the PEFA assessment were presented to municipality leadership and MoF. Based on the feedback and further clarifications from the MoF and Municipalities, the Deloitte finalized and submitted reports of PFM assessment based on PEFA indicators and assessment of Gender Responsive PFM for each municipality together with specific recommendations and activities with the purpose to improve the gaps observed as a result of the assessment within the following 3 years.

Assist GGI’s partner and two additional municipalities to carry out participatory budgeting (PB) process for FY21 effectively GGI has been providing support to Akhaltsikhe, Batumi and Kutaisi City Halls to introduce Participatory Budgeting process since 2016. In close cooperation with Estonian e-Governance Academy and its local partner (IDFI), GGI helped Akhaltsikhe and Kutaisi City Halls to pilot VOLIS – an Estonian System for e- engagement of citizens in local activities and conduct participatory budgeting processes for FY2019 and FY2020. Batumi City Hall has pursued an alternative path to conduct the participatory budgeting process. With GGI’s support, Batumi City Hall developed and approved the Mayor’s decree on participatory budgeting with a detailed description of every step of the process. During PY5, Batumi City Hall developed and made publicly available a special website, https://idea.batumi.ge/, and launched the participatory budgeting process for FY19 and FY20. Batumi City Hall started participatory budgeting campaign for FY 2020 on October 10 2019. GGI contractor CSI assisted City Hall to organize public meetings, airing of promotional video clips with sign- language translation, production and distribution of printed promotional materials. As a result of the active promotional campaign, Batumi City Hall received 30 proposals for the local citizens during PB process for FY2020. An advisory Council shortlisted 6 of them. As a result of casted votes (2009), 2 winning projects were selected. Batumi Mayor made a decision to increase funding from GEL 120 000 to GEL 500 000 for FY 2020. FY2020 PB information campaign was finalized during the first quarter of reporting year in Kutaisi. GGI’s contractor company GEPRA was using video clips leaflets T-shirts with USAID and Kutaisi logos in this process. 90 project proposals were registered by the local residents of Kutaisi Municipality through VOLIS which is a tripled number in comparison with PB process for FY2019. As a result of casted votes (1430), 3 winning projects were selected. Kutaisi City Hall made a decision to appropriate 150 000 GEL to implement 3 winner projects during FY2020

As a result of the active PB campaign in Akhaltsikhe, by the end of PY5, 119 project proposals were registered through VOLIS, out of which 83 qualified for the voting stage. It is notable to mention that last year 77 proposals were registered, out of which 40 qualified for the voting stage. Voting to identify winner

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 23 projects for FY2020 ended on November 1. As a result of votes casted (2044) submissions, 5 winning projects were selected. Because the participatory budgeting process was perceived to be successful, the Mayor of Akhaltsikhe decided to increase funding from GEL 50 000 to GEL 250 000 for FY2020. Winning projects identified through voting processes in all 3 GGI’s partner municipalities were supposed to be funded by respective municipal budgets and implemented during FY2020. However, due to the crisis caused by pandemic, implementation of some winner projects are postponed to FY2021. GGI made decision to continue its support to partner Akhaltsikhe, Batumi, Kutaisi municipalities to further institutionalize and improve participatory budgeting process for FY21 as well as assist two additional municipalities - Lanchkhuti and Ambrolauri to introduce, institutionalize and conduct participatory budgeting processes for FY2021 as well as conduct robust public awareness and education campaign to promote benefits of participatory budgeting, provide detailed guidance and encourage local Citizens to participate in the Participatory Budget (PB) process for FY2021. To this end, during the reporting year, GGI developed and published relevant Requests for Proposals (RFPs). Following the competitive procedure, the winners were identified. For participatory budgeting project in Batumi was contracted CSI – Batumi based Non-commercial entity which has implemented the same project for the FY2019 and 2020. Kutaisi municipality is supported by GEPRA – company provided the same assistance to Kutaisi municipality year before. Contract for Lanchkhuti was awarded to non- commercial entity IRC, while contracts for Akhaltsikhe and Ambrolauri were awarded to CSED. With support of GGI’s subcontractors all 5 municipalities carried out robust public awareness campaign using all available communication tools and platforms. However pandemic and its consequences created considerable hurdles to the PB possess, especially in case of the Kutaisi (Municipality leadership was not certain about conducting participatory budgeting for FY21 at all due to crisis caused by pandemic). By the end of the reporting year, Batumi, Akhaltsikhe, Lanchkuti and Ambrolauri municipalities have successfully completed project proposal submission and shortlisting stage and moved to a public voting phase. As result of the robust communication campaign conducted with GGI’s support: • 47 project proposals were submitted in Lanchkhuti out of which 22 project ideas were selected for the voting phase. • In Akhaltsikhe, out of 98 received project proposals only 37 project proposals were qualified for the voting. • In Batumi total 53 project proposals were registered on idea.batumi.ge platform which will be analized and transferred to the coting phase. • 23 project proposals were registered in Ambrolauri out of which 18 qualified to the voting stage. • Project proposal submission phase is ongoing in Kutaisi, followed by shortlisting of project proposals and voting.

2.1.5 ACTIVITY 1.1.5: SUPPORT CIVIL SERVICE BUREAU (CSB), OTHER GOVERNMENT AGENCIES, AND LOCAL GOVERNMENTS TO IMPLEMENT CIVIL SERVICE REFORM Support the Civil Service Bureau (CSB) in conducting personal data audit in select areas including www.hr.gov.ge, mkhileba.gov.ge, and stajireba.gov.ge.

CSB is a central entity with multiple functions, including managing processes related to civil service reform, human resources, asset declaration of public officials, whistleblower mechanisms, and others. Therefore, CSB manages and processes a considerable amount of personal data in its daily activities. Per CSB’s initiative, the personal data inspector’s office conducted a general overview of CSB’s asset declaration function and provided recommendations on how to improve the overall management of

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 24 personal data. CSB management agreed to implement the recommendations related to asset declaration and expressed interest in a more comprehensive review of all key functions of CSB. The personal data audit in CSB started at the end of 2018. GGI supported the process by contracting Privacy Logic Group (PLG). The contractor finalized its report and submitted comprehensive recommendations. Recommendations revealed the need of further assistance to CSB in dealing with personal data including drafting of internal regulations and development of specific training module – a practical guideline for mid-level management (department heads). In a next phase of the project, PLG elaborated a list of main issues, which CSB needs to consider in the agreement with its data processors, mainly Financial Analytical Service. In addition, PLG has prepared a form describing roles and responsibilities of CSB in terms of data protection. Following the interviews with CSB staff, comprehensive guidelines on personal data protection as well as documents on two main data processing systems in CSB – EHRMS and hr.gov.ge were prepared. The documents address the following issues: purpose and legal grounds of processing as well as categories of data subjects and data categories, sources of gathering information and other actors – their roles in the system, access to the information, terms of processing and updates to the system. During the opening quarter of the current reporting year, PLG carried out trainings regarding PDP issues as recommended by newly created rules and procedures for relevant staff of CSB. Q&A document was prepared based on questions raised during the trainings. • Masterclass on Leadership. In response to the complex ongoing reforms in Georgia, which require good leadership and management of the process to achieve desirable outcome, the CSB requested support in organizing a masterclass on Leadership for senior officials and deputy ministers. Later, the target audience was expanded to mid-level management. GGI contacted international expert, Ms. Judy England Joseph, to conduct a masterclass in strategic leadership. She suggested a syllabus from the leadership course she provides at George Mason University MPA. The Masterclass was held on 11-13 of December with participation of 16 mid and high-level managers of the GoG agencies. As a result of the training, participants were introduced to the most relevant leadership approaches, concepts and practices, including the challenges that leaders face in the dynamic and complex work environments as well as characteristics and behaviors that set exemplary leaders apart from others. By exposing participants to the practical tools and techniques and specific ways of addressing management gaps through leading and innovating, the training contributed to enhancement of their leadership skills and abilities.

• ToT Adult learning methodology During introduction and implementation of the civil service reform, the Civil Service Bureau (CSB) has provided support to the government entities through trainings, coaching, public awareness meetings and other modalities. At the beginning of the reporting year, CSB requested GGI’s assistance in improving their capacity in adult learning methodology and skills. To this end, GGI contracted Otilia Pacurary to deliver a ToT on adult learning methodology. Training was delivered on November 28-29 and was attended by 15 participants. The training was highly interactive and considered a lot of group work. Training participants were familiarized with the andragogical approach to trainings (including adult learning principles, styles, how to organize participatory training courses, the training cycle management to facilitate learning), and thus, provided an excellent environment to learn the tools to better support public agencies and training providers. • Civil Service Reform Celebration 2019 was the 5th year anniversary for the adoption of the Civil Service Reform Concept – starting point for the comprehensive changes in the civil service and development of the new Civil Service Law. GGI supported CSB in organizing HR forum, which was planned in the format of public-private dialogue under the Civil Service Reform 5-year celebration event. HR Forum hosted up to 110 HRMs

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 25 representing ministries, LEPLs, municipalities and more than 30 HRM from private organizations. Welcome part was followed by panel discussions on performance evaluation and training needs analysis. In addition, on the 19th of November, GGI expert Dragos Dinu, participated in CSR celebration as one of the panelists. His participation was focused on discussion of the key successful measures and challenges in the civil service and PAR. • Support CSB to create appropriate monitoring procedures for CSL In parallel to the implementation of the activities targeting at advancement of the civil service reform, CSB needs to continuously to monitor and evaluate the reform implementation to make informed decisions on further steps. GGI decided to support CSB and enhance its staff monitoring capacity. During the reporting year, GGI contracted local STTA Giorgi Urchukhishvili to conduct training for designated CSB staff on research methods, as well as to furtherly support CSL monitoring process with on-job training/couching. CSB’s main goal is to learn how to do the research on their own. They expect GGI expert to facilitate the CSB Team to guide them in the research process and provide directions and feedback on the work implemented under the project. CSB shared with GGI local expert legislative acts on competitions and other topics related to career advancement and mobility and had discussion on expected support. Following the initial discussion with CSB on their expectations, goals of the monitoring, indicators and tentative timeline, the expert has submitted workplan for review. As agreed, at the beginning of assignment, Giorgi Urchukhishvili conducted on-line training, split into 5 half-day training sessions. Training was attended by 12 staff persons from CSB. At the end of the training sessions, participants, following trainer’s advice, decided to specify research topic and analyze CSL procedures in relation to women occupying managerial positions. Training was followed by intensive on-line consultations and couching. Research is expected to be finalized in November.

• Support CSB to study the status of the selected topics of the CSL and develop recommendations to make improvements

During the reporting year, GGI was requested to support CSB to analyze effectiveness of current methods preventing political influence in civil service organizations and develop relevant recommendations. This intervention is envisaged by PAR AP 2019-2020. GGI decided to hire an international STTA with knowledge of best EU practices and a local STTA who can provide the contextual information. Dragos Dinu was selected for the assignment to provide local STTA with methodological guidance on how to analyze legal provisions and practical instances preventing political influence on managerial positions of civil servants, conduct field study, as well as develop relevant guidelines and recommendations. Due to the complexity of the issue, it was hard to find a local expert with suitable education and experience. Finally, Nino Dolidze was selected as a local STTA. After receiving guidance from CSB on priorities of the research, Dragos Dinu prepared a work plan and shared with local STTA and CSB his insight towards methodological approach, while Local STTA has submitted an inception report reviewing legal framework regulating public service in Georgia. In response to CSB comments, the Inception Report was revised by adding additional information on research methodology and key findings. Later, in September, Dragos Dinu submitted mid-term report, outlining international experience on mechanisms preventing political influence in select EU countries. Considering findings of international experience, Nino Dolidze prepared the methodology for the qualitative research in select central government organizations/ministries. Methodology and research plan were presented to CSB for approval and support in organizing interviews and FGDs. It is anticipated to have final recommendations at the end of October 2020.

Another commitment of CSB under the 2019-2020 PAR AP was to assess the statutes of implementation of the bylaw of the Government of Georgia, the decree N242 on rules of determining professional development needs of civil servants, and professional development standards and existing practice of

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 26 elaboration and implementation of 2019-2020 professional development plans of all public agencies, compiled by CSB. USAID GGI is providing support to CSB in this activity by contracting local STTA assigned to identify: (1) training/capacity building methods/forms that are prioritized or less used by public agencies (e-course, training, seminar, workshop, masterclass, learning by doing and etc.); (2) impediments intervening implementation of professional development plans; (3) trends on lessons learned utilized during elaboration of next year plans. Expert will also study methods utilized by public agencies for professional development needs analysis using questionnaires/FGDs. Key findings will be reflected in the final report with relevant recommendations addressing challenges of elaboration and implementation of professional development plans in public organizations at all levels of governance. Natia Gotsadze was selected for implementation of the assignment. The expert has developed WP which was discussed with CSB at kick-off meeting. At the end of reporting year, STTA submitted an inception report, outlining overview of legislation and general findings regarding professional development system. Report was presented to CSB for their comments and further methodological guidance. CSB accepted the desk research and provided GGI STTA with requested documents, including professional development plans developed by public agencies. Assignment will be finalized in next reporting period.

• Support external monitoring of the Civil Service Reform Under the extension period, GGI will reinstate its grants under subcontract mechanism to fund highly qualified local CSOs to carry out selected initiatives in support of transparent and accountable governance, including monitoring and public awareness campaigns to support external monitoring of the CSL reform. The AoG announced April-May 2020 as a starting period for the elaboration of the next PAR Strategy 2021-2024. According to the AoG, the process will be extremely inclusive and engage development partners, CSOs and local government representatives. Consequently, at this stage, there is a growing interest to monitor practical application of the principles and novelties introduced by Public Administration Reform (PAR) Roadmap 2020, along with the level of institutionalization of individual PAR pillars. To this end, GGI has developed and announced the RFA on external monitoring on Public Administration Reform pillars, including Civil Service Reform. Through competitive procedure, IRC was selected as a winner. IRC proposal is fully addressing problem statement, with clear and comprehensive technical approach. Selected grantee will monitor and support the implementation of selected components of PAR, through regular monitoring and reporting on the implementation progress by identifying achievements and gaps in the process and proposing recommendations. IRC will produce Reports on implementation of selected components/regulations of PAR (at least 10 selected topics). Mandatory topics are: analysis of court practice on reinstatement of dismissed civil servants; analysis of court practice, legislative framework and regulatory gaps on asset declarations of civil service officials; analysis of the issues/factors preventing civil service from being free of political influence; performance evaluation and rewards practice in public organizations; CSL implementation and its impact on ethnic minorities at the central and local levels; analysis of one of the aspects relating to the progress implementation of the new Local Government Decentralization Strategy – fiscal decentralization. In addition, the grantee will analyze at least 3 selected legislative amendments relevant to PAR in Georgia, organize number of meetings and roundtable discussions to engage stakeholders and share findings of monitoring exercise, as well as provide AoG with practical recommendations on elaboration of the next PAR Strategy 2021-2024. Contract with IRC was signed inthe 4th quarter of the reporting year. The grantee started the inception phase of the project and submitted report outlining all planned as well as immediate activities. IRC started informing stakeholders about the launch of the project. Following consultations with GGI team and considering situation with pandemic, it was decided to conduct a multi-stakeholder conference and presentation of Inception Report before October 10.

• Develop capacity and relevant awareness of CSR in LGs with ethnic minorities

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 27 During the reporting year, GGI started to explore opportunities to provide support to the municipalities with high representation of ethnic minorities. To this end, GGI held preliminary consultations with Zurab Zhvania School of Public Administration, to explore their capacity and readiness in providing tailored trainings to target groups of up to 15 servants, representing relevant municipalities. Based on experience of Zurab Zhvania School of Public Administration, target group usually need to go through sectoral introductory Georgian language course and then be trained in specific modules. GGI held coordination meetings with Ketevan Natriashvili and Ketevan Jakely (LEPL - Zurab Zhvania School of Public Administration). GGI discussed technical details on planned training activities. It was agreed to train select civil servants, fluent enough to go through introductory part of the course and ability to continue with relevant modules on PAR/CSL, OGP, EU and NATO integration and disinformation focused on countering malign kremlin influence. Draft concept with deliverables and budget were provided by Ketevan Natriashvili. GGI suggested revision of the concept, timeline and budget considering that two modules (OGP and Disinformation prepared by GGI and Information Center on NATO and EU)) will need only adaption to the ethnic minority needs. In addition, it was decided to use on-line training format that was also respectively reflected in the project timeline and budget. At the end of reporting year, contract with ZSPA was finalized. Activities will be launched from the next PY and last till the end of February 2020.

• Support LGs to improve HR tools and practices GGI supports local governments to improve human resource tools and practices by developing an internal manual and instructions in the following areas, including staff integrity, open data, and personal data protection. During PY-5, CSB started a process of functional analysis of Governments of A.R. of Adjara and Abkhazia. To this end, CSB collected primary data through FA questionnaires. CSB made a decision to postpone the FA process in the Governments of Adjara and Abkhazia. The period in-between was used by CSB to analyze completed questionnaires. Later, per CSB’s request, GGI re-hired an international STTA, Dragos Dinu to guide Functional and Institutional Analysis (FIA) of autonomous republics. Mr. Dinu analyzed the data and provided recommendations on the technics of the planned review. According to his recommendations, CSB was advised to use some more flexibility in the FIA process of Adjara, which should be translated into application of general FIA principles and not the particularities of the institutional arrangement. During the reporting year, CSB held FDGs in Batumi for functional analysis of A.R. of Adjara. CSB was planning to hold FDGs for Government of Abkhazia during the current reporting year, however the process was delayed due to pandemic. Correspondingly, CSBs efforts were limited to analysis of only detailed questionnaires provided by the Government of Abkhazia. By the end of the reporting year, having incorporated results of desk research, CSB finalized FA report of AR Adjara. The FA report was shared with government agencies of AR of Adjara for their feedback. CSB plans to organize on-line meeting to introduce FA Report to Government of Adjara. As for FA of Abkhazia AR, CSB plans to conduct interviews next quarter (most probably it will be on-line meetings).

• Support CSB to finalize the e-course module on civil service legislation In 2019, GGI supported CSB to prepare a new website with improved functionality along with the e- course module that covered only general principles of the civil service law as a pilot. Due to the increased interest in online capacity development activities by CSB, further exacerbated by COVID-19 condition, GGI decided to further assist the Bureau to develop a comprehensive e-course module on civil service reform that will cover civil service legislation as well as the relevant by-laws and normative acts. E-course will be enriched with illustrative examples, case studies and specifically designed set of cases facilitating a

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 28 reader to correctly interpret different clauses of the legislation. The e-course will also be equipped with user-friendly functionality and e-learning tools. During the reporting year, GGI contracted local STTA Anna Pirtskhalashvili for an assignment. Anna Pirtskhalashvili submitted a WP and e-course structure, which were agreed with CSB. Later, the STTA submitted a full version the course, which was discussed on working meeting with CSB in Borjomi on July 24-26. As agreed with CSB, the proposed format contains dialogues and test questions. Following CSB comments, the e-course content was enriched with some additional cases. With this intervention, Anna Pirtskhalashvili finalized contract with GGI. At the end of reporting year, USAID GGI developed an RFP with the objective to develop e-course platform incorporating e-course module and designed in a form of animation with illustrative components (such as quiz, charts, graphic illustrations etc.). The assignment will be finalized in next reporting period.

• Support CSB to define its roles and responsibilities during emergencies such as the pandemic; identify gaps civil service challenges and provide relevant recommendations / guidelines in the context of COVID-19; improve crises management and preparedness of the civil service During the reporting year, in response to COVID-19 pandemic, GGI in support of CSB decided to analyze issues and challenges identified in public agencies during crisis (including violation of civil servant’s rights during crisis), study best international practices about the actions used in similar situations and create guidelines for the reference of civil servants during crisis. These guidelines are deemed to provide specific instructions to the civil servants on managerial positions on how to act in response to the needs of civil service during the crisis management in civil service organizations and ensure an uninterrupted functioning of civil service. The concept has been approved by the USAID Mission Director and DC. GGI made a decision to hire one international STTA and one local STTA for the assignment. The scope of works of the International STTA considers analyzing existing challenges and means of solutions as well as best practice in crisis management. Subsequently, guidelines for high and mid-level managers, will be developed. GGI prepared respective SoWs for international and local STTAs. Judy England-Joseph was selected as international STTA, while Shalva Khutsishvili will serve as local STTA and develop crisis management guidelines. After a kick-off meeting, Judy England-Joseph and Shalva Khutsishvili submitted a joint workplan and methodology, which was agreed with CSB. According to the methodology, the majority of data collection will be done by interviewing selected officials at the ministry, subordinate agency, and municipality level as well as cognizant CSB officials, obtaining relevant documents such as policies, procedures, and after-action or lessons learned memoranda or reports. Before that, CSB works on collection of needed information by sending relevant questionnaires to select agencies. Due to COVID-19 and several delays with the provision of required information by relevant agencies, the assignment will be finalized for the next reporting period.

2.2 RESULT 2: INCREASED CIVIC ENGAGEMENT AND IMPROVED ACCESS TO INDEPENDENT, RELIABLE AND BALANCED INFORMATION RELEVANT TO GEORGIA’S GOOD GOVERNANCE Result 2 activities are led by GGI DCOP Mariam Gorgadze, GGI Governance Program Manager Mikheil Darchiashvili, Public Administration Expert Mariam Davitashvili, and GGI partner PMCG. Where appropriate, other GGI staff and partners are involved in supporting the achievement of Result 2 Outcomes.

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 29 RESULT 2 ACTIVITIES

2.2.1 ACTIVITY 2.1.1: SUPPORT ANTI-CORRUPTION COUNCIL (ACC) AND GGI’S PARTNER AGENCIES AND LOCAL MUNICIPALITIES TO INSTITUTIONALIZE ANTI-CORRUPTION PRACTICES TO ENSURE BETTER ACCOUNTABILITY BOTH AT NATIONAL AND LOCAL LEVELS • Provide support to the ACC and its Secretariat in managing, coordinating, and monitoring anti-corruption reforms and policy documents Established in 2008, the Anti-Corruption Council (ACC) of Georgia coordinates anticorruption activities in the country, elaborates the anticorruption action plan and strategy, and supervises their implementation. This interagency council also monitors accountability towards international organizations, initiates relevant legislative activities and drafts recommendations. Starting from the PY1, GGI has been providing support to ACC and its secretariat (Analytical Department of the MoJ) to effectively manage coordinate, and monitor Anti-Corruption reforms in Georgia. On October 4, 2019 GoG approved National Anti-Corruption Strategy and Action Plan for 2019-2020 (https://matsne.gov.ge/document/view/4674422?publication=0). It is notable that GGI’s suggested commitments: Development of Anti-Corruption frameworks for 5 additional municipalities and improvement of Open Data management practices (collection, processing and release) in pilot municipalities were included in the new National Anti-Corruption Action Plan. In addition, new Anti- Corruption Strategy includes GGI suggested paragraph on i-change deficiencies and underlines need to find ways to improve functional effectiveness of the e-petition portal. GGI has been providing support to the municipalities to successfully implement the abovementioned commitments under the National Anti-Corruption Strategy and Action Plan for 2019-2020. GGI supported ACC secretariat, to organize awareness raising activities on Anti-Corruption Policy of Georgia for the LG representatives and students in Batumi dedicated to the international Anti-Corruption Day, December 9, 2019. Throughout the reporting year, ACC secretariat continued to exercise passive stance. Despite that, GGI kept close contacts with ACC secretariat including with its newly appointed head (Tamar Rostiashvili head of Analytical Department of the MoJ). Anti-Corruption communication strategy remains priority for the Secretariat. ACC Secretariat plans to internally discuss and finalize existing communication strategy developed earlier with GGI’s support. Afterwards, GGI will step in and assist ACC Secretariat to streamline the strategy and develop a viable communication action plan. During the reporting year, GGI ensured participation of ACC Secretariat in inaugural meetings (teleconferences) with City Halls of Senaki, Telavi and Lagodekhi to discuss Building Integrity and Transparency Strategy and AP development process. In addition, per request from the side of ACC secretariat, GGI provided progress updates on 2019-2020 National Anti-Corruption Action Plan implementation.

• Support Tbilisi City Hall to implement Building Integrity and Transparency Action Plan 2020–2022 During the PY5, GGI engaged Georgian Young Lawyers’ Association (GYLA) to support Tbilisi City Hall in developing Building Integrity and Transparency Strategy and Action Plan that is a commitment of Tbilisi City Hall under the OGP Action Plan as well as directly addresses one of the key recommendations of the OECD ACN and priorities of the 2020-2025 Decentralization Strategy of Georgia. Following fieldwork and data analysis, GYLA presented to City Hall situational analysis and research findings and

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 30 prepared first draft of the Building Integrity and Transparency Strategy. During the reporting year, GYLA finalized first draft of the strategy and shared with Tbilisi City Hall. According to the initial feedback from Tbilisi City Hall (mostly from rom the Legal Department and Audit Department), the strategy was perceived as very realistic highlighting all key shortcomings of the City Hall system. After receiving initial feedback from the City Hall departments, including: Legal, HR and procurement, GYLA submitted revised document to OGP working group. Third quarter of the reporting year was marked with change of the OGP lead person at Tbilisi City Hall. Newly appointed staffer, Irakli Chincharauli met with GGI and reiterated City Hall’s commitment to finalize and adopt Building Integrity and Transparency Strategy and Action Plan without delay and hurdles. Tbilisi City Hall, GYLA and GGI held rounds of public discussions of draft Building Integrity and Transparency Strategy of Tbilisi City Hall with participation of government agencies, CSO’s, as well as other interested stakeholders. Following discussions, GYLA updated strategy and action plan and shared with Tbilisi City Hall. After additional rounds of consultations between Tbilisi City Hall and GYLA, the final draft of the strategy and action plan together with monitoring framework have been developed and submitted to Tbilisi City Hall for approval. On July 22, Tbilisi City Hall approved Building Integrity and Transparency Strategy and Action Plan. During livestreamed remarks, Tbilisi Mayor Kakha Kaladze thanked GYLA, the United States Embassy and USAID for their support. Following the approval of the strategy and action plan, GGI together with IDFI met with Irakli Chincharauli OGP lead from Tbilisi City Hall to discuss next steps. Trainings of the Tbilisi City Hall staff was identified as most important area for future cooperation. First training session for the representatives of Tbilisi City Hall system was held on September 17, 2020. In Addition to GYLA, representatives of the AoG (Keti Tsanava, Giorgi Bobgiashvili) also briefed participants on OGP and policy planning issues. Second training session for the representatives of Tbilisi City Hall system was held on September 29, 2020. In PY6, GGI will provide support to Tbilisi City Hall to successfully implement some of the elements of the Building Integrity and Transparency Action Plan.

• Support 5 additional municipalities in strengthening institutional integrity and transparency in line with the Decentralization Strategy and Action Plan GGI in close cooperation with MRDI made a decision to provide support to City Halls of Gori, Lagodekhi, Senaki, Telavi and Zugdidi Municipalities in development of Building Integrity and Transparency Strategies and Action Plans. GGI’s intervention is in line with National Anti-Corruption Strategy and 2019-2020 Action Plan adopted by the Government of Georgia on October 4, 2019; 2020-2025 Decentralization Strategy of Georgia adopted on December 31, 2019 as well as with one of the recommendations of the OECD concerning development of Anti-Corruption action plans at the local self-government level. To this end, during the reporting year, GGI developed relevant Request for Proposals (RFPs), published and through competitive bidding process selected Institute for Development of Freedom of Information (IDFI) to help Lagodekhi, Senaki, Telavi and Zugdidi Municipalities in development of their Building Integrity and Transparency Strategies and Action Plans together with monitoring frameworks. GGI also contracted local STTAs Dea Tsartsidze and Tamar Gzirishvili to provide support to the City Hall of Gori Municipality in development of Building Integrity and Transparency Strategy and Action Plan together with monitoring framework. Process with all four assignments of IDFI started with individual inaugural meeting presenting methodology for development of the Strategy and Action Plan, Indicators and Monitoring Framework, as well as draft Order of the Mayor on the establishment of working group (Meeting with Zugdidi City Hall – March 19, 2020; meeting with Senaki City Hall - April 3, 2020; meeting with Telavi City Hall - May 7, 2020, meeting with Lagodekhi City Hall - May 8, 2020). Secretariat of the Anti-Corruption Council of Georgia also

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 31 attended the inaugural meetings with municipalities. IDFI has finalized building integrity and transparency related situational analysis in all 4 municipalities and in close coordination with GGI developed individual situational analysis reports together with strategic directions and recommendations. Individual situational analysis reports were discussed with municipalities in online meeting format (Zugdidi – 2 June, 2020; Lagodekhi -17 June, 2020; Telavi –16 June, 2020; Senaki – June 24, 2020). Situational analysis reports were revised and finalized based on the feedback from Municipalities. Further, IDFI developed draft Building Integrity and Transparency Strategies and Action Plans for all four municipalities. Documents were discussed initially with respective city halls of Zugdidi, Senaki, Telavi and Lagodekhi municipalities, and then at the public discussions in Zugdidi, Senaki, Telavi and Lagodekhi with participation of students, representatives of academia and CSOs. IDFI incorporated the feedback from the meetings and revised the documents. Final versions of the Building Integrity and Transparency Strategy/AP together with implementation monitoring methodology have been submitted to City Halls of Telavi, Lagodekhi, Senaki and Zugdidi. It is notable, that Telavi (on August 26, 2020) and Lagodekhi (on 31 August) approved the Building Integrity and Transparency Strategies, Action Plans and monitoring methodologies by the decrees of their respective Mayors. Senaki and Zugdidi City Halls are in a process of discussion of the final versions of the documents before approval. As a next step, IDFI will also organize rounds of capacity building activities for the employees of Telavi, Zugdidi, Senaki and Lagodekhi City Halls’ systems in order to effectively implement activities stipulated in the Building Integrity and Transparency action plans. Dates of the trainings will be identified in close consultations with LG taking into account COVID situation and October 2020 parliamentary elections in Georgia. In support of Gory City Hall, GGI’s local STTAs - Dea Tsartsidze and Tamar Gzirishvili prepared workplan and methodology. After meeting with the Mayor of Gori, the situational analysis process has started. On July 9, Gori City Hall formally established working group for Strategy and Action Plan development (we have received decree of the Mayor). GGI’s consultants – Tamar Gzirishvili and Dea Tsartsidze conducted a detailed desk search and continued with qualitative study involving focus group meetings and face to face interviews. GGI’s experts prepared situational analysis report, revised it based on GGI’s comments and shared with Gori City hall. Findings of the situational analyses were also presented the Gori City Hall with participation of Mayor Konstantine Tavzarashvili and heads of key services. City Hall representatives expressed their attitude towards some of the issues. GGI expert revised situational analysis report accordingly that was formally accepted by the City Hall. Based on the findings of the situation analysis, GGI’s experts, in close communication with GGI, developed draft Building Integrity and Transparency Strategy and Action plan and on September 25, 2020 shared with Gori City Hall for review and comments. First discussion of the documents with City Hall will be held on October 1, 2020. The next stages of the consultancy process are:

− Concurrence to the draft Building Integrity and Transparency Strategy and Action plan by Gori City Hall − Public discussions of Building Integrity and Transparency Strategy and Action plan; − Development of the final version of the Building Integrity and Transparency Strategy and Action plan together with monitoring framework. − Approval of Building Integrity and Transparency Strategy and Action plan together with monitoring framework by Gori City Hall. − Capacity building activities for the employees of Gori City Hall systems in order to effectively implement activities stipulated in the Building Integrity and Transparency action plan.

It is also notable, that On March 31, 2020 Ozurgeti Sakrebulo approved the Monitoring Framework of Building Integrity and transparency Action Plan prepared with GGI’s assistance.

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 32 • Development of Open Data Practices in the City Halls of Gori, Lagodekhi, Ozurgeti, Senaki, Telavi and Zugdidi Municipalities Since PY 1, GGI has been sparing no efforts to improve open data management practices in Georgia at the central and local levels. It is notable, that in 2015, as a result of the USAID GGI’s intervention number of datasets published on the open data portal www.data.gov.ge almost doubled. Nevertheless, collection, processing and publishing of open government data in relevant formats has been carried out with a very low frequency and intensity in Georgia, especially on the part of municipalities mostly due to the lack of knowledge and necessary capacities. During PY5, GGI with IDFI’s involvement assisted City Halls of Akhaltsikhe and Kutaisi in development of Open Data Strategies and Action Plans. Capacity building activities for both municipalities were finalized in opening quarter of current reporting year. National Anti- Corruption Strategy and 2019-2020 Action Plan adopted by the Government of Georgia on October 4, 2019 includes GGI initiated specific commitment to strengthen open data practice at the local level. At the same time, 2020-2025 Decentralization Strategy of Georgia makes particular emphasis on establishment of trusted, accountable, transparent and result oriented local self-governance. In line with the above-mentioned strategic frameworks, GGI made a decision to support City Halls of Gori, Lagodekhi, Ozurgeti, Senaki, Telavi and Zugdidi Municipalities to develop their Open Data management practices. To this end, GGI prepared and issued relevant Request for Proposal (RFP). GGI through open bidding process selected leading democracy and transparency watchdog – Institute for Development of Freedom of Information (IDFI) to support municipalities in the above-mentioned direction. Contractor was expected to conduct capacity needs assessment, develop/upgrade Open Data Manual and conduct capacity building activities for the relevant staff of the above-mentioned municipalities. To this end, IDFI submitted work plan and methodology for assignment, which was revised based on GGI comments. Following the joint inaugural meeting with all six municipalities, IDFI carried out situational analysis process, including through online focus group interviews and meetings with different local stakeholders (representatives of City Halls; local civil society organizations, media and activists) and FOI request. As a result, IDFI developed Open Data Situational Analysis reports for all six municipalities, findings of which were communicated to respective LGs in a presentation format. IDFI also developed an Open Data manual tailored to the needs of the Municipalities which was revised several times based on GGI comments before finalization. As a next step, IDFI will conduct individual training sessions for all six municipalities on Open Data issues. Dates of the trainings will be identified in close consultations with LG taking into account COVID situation and October 2020 parliamentary elections in Georgia.

• Batumi Open Data During PY 5, GGI engaged Innovation and Reform Center (IRC) to develop Batumi public service delivery strategy. Having completed working on the service delivery strategy, in the beginning of current reporting year, IRC was awarded the second contract to support the Batumi municipality to create and implement an open data concept that will ensure continuous provision of information in an open data format to the residents of Batumi municipality and all interested groups. Under the extension, GGI plans to transform the open data concept into Open Data Platform to make the system functional. To this end, GGI organized a joint meeting with IRC and MSDA to discuss planned replacement of MMS system with MSDA system and its implications for the open data platform. IRC submitted a draft Open Data Concept and ToR for Batumi municipality, which was formally accepted by Batumi City Hall. Considering the MSDA project timeline in relation to Batumi, which envisaged completion of the process by September 2020, GGI decided to delay the open data platform development process. Accordingly, during the last quarter of the reporting period, GGI requested a meeting with MRDI and MSDA participation to resume the open data platform development.

• Support Batumi City Hall to improve its website and make it fully accessible to disabled users, including the Participatory Budgeting Module

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 33 City Hall of Batumi municipality aims to ensure its accountability, openness, ease of access to and accuracy of the information, and to facilitate citizen engagement in decision making and policy formulation in line with the principles of the Open Government Partnership (OGP). To this end, in addition to ongoing efforts, City Hall of Batumi municipality is planning to undertake a fundamental revision and improvement of its existing website (https://batumi.ge/ge/) in order to make it informative; easily discoverable; supportive of the civic engagement; user friendly and easily assessable for all groups of the society, including individuals with disabilities. To this end, during the reporting year, Batumi City Hall requested GGI’s support and assistance to revise and improve its website. GGI made a decision to support Batumi City Hall in this direction, therefore prepared and published Request for Proposal (RFP) with July 20, 2020 deadline. DDB was identified as the winner and the contract was signed. In September 2020 the subcontractor carried out a comprehensive needs assessment of webpage. Based on the results of the needs assessment, the DDB will prepare web-page design concept and general requirements and develop a new web-page of Batumi City hall in close consultation with all key stakeholders, including Municipal Service Development Agency (MSDA), being in charge of introducing modern technologies throughout municipalities of Georgia. Relevant staff of Batumi City Hall will also undergo intensive trainings to effectively manage newly developed web page. Finalization of the development and launch of the new website of the Batumi City Hall is expected in December 2020.

2.2.2 ACTIVITY 2.1.2: PROVIDE SUPPORT TO THE GOG AT CENTRAL AND LOCAL LEVELS TO SUCCESSFULLY PARTICIPATE IN THE OPEN GOVERNMENT PARTNERSHIP (OGP) PROCESS • Support OGP leadership, including Council, Forum and OGP Secretariat of Georgia under the AoG Since the launch of the program, GGI has been supporting Georgia’s participation in the OGP initiative, including developing and implementing OGP National Action Plans. During program years 2, 3, 4 and 5, GGI supported the successful participation of its central and local levels partners in the OGP movement. With GGI’s advocacy efforts number of local governments participating in the OGP process has increased. In May 2016, Georgia was elected as a co-chair of the Open Government Partnership (OGP) steering committee in recognition of Georgia’s progress and commitment to the OGP system. Beginning from October 2017, Georgia served as a lead co-chair of the OGP for a one-year term, thus leading an international group of OGP participating countries, including subnational governments and hundreds of CSOs around the world. On July 17-19, 2018, Georgia hosted OGP Global summit. GGI contributed to the success of the above-mentioned function. During the PY5, following tensions between MoJ and leading Georgian CSOs participating in OGP forum, GoG relocated the OGP Secretariat from the Ministry of Justice to the Administration of Government of Georgia. CSO representatives welcomed the decision and expressed hope that the new management of the OGP will handle processes more effectively, constructively and in full compliance with co-creation principle. Opening Quarter of the reporting year was marked with intensive developments. On December 27, 2019, GGI assisted the Administration of the Government (AoG) to hold Open Government Georgia (OGP) Forum meeting in the Ceremonial Palace of Georgia. OGP Forum was co-chaired by Natia Mezvrishvili, Head of AoG Administration and Giorgi Oniani Deputy Executive Director of TIG. The Forum discussed the new vision of the OGP Secretariat of Georgia under AoG on improvement of OGP coordination at the national level. The participants also presented status reports of the present action plan. OGP Secretariat discussed the criteria of involvement of additional non-governmental organizations in the Forum. It is notable, that AoG made a decision to raise the level of the National OGP coordination body by creating OGP Council with participation of the Deputy Ministers. OGP Council has been formally established on

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 34 February 13, 2020 (statute of the Council includes most of the GGI’s suggestions). OGP Forum will remain under the council as a working level format. UNDP event involving local municipalities on OGP commitment implementation took place on Nov. 1, 2019. GGI ensured participation of Akhaltsikhe and Batumi municipalities. Head of Akhaltsikhe HR department spoke about Building Integrity and Transparency Strategy and Action Plan, while Batumi City Hall representative during his presentation made particular emphasis on the efforts to improve public engagement. Tbilisi City Hall staffer, Lado Khasia briefly informed participants about the pace of development of Building Integrity and Transparency Strategy and Action Plan of Tbilisi City Hall. All the above mentioned participants including deputy Mayor of Kutaisi thanked USAID GGI for support. GGI also supported IDFI to organize 2-day international conference - Good Governance Forum (GG Forum) on November 29-30, 2019, which aimed to explore innovative mechanisms and the most cost- effective approaches of combating corruption, especially high-level corruption. GGI moderated opening panel of the forum on “Anti-Corruption Institution and Mechanism for Fighting Corruption”. During Second quarter of the reporting year, OGP secretariat started collecting ideas for the new OGP NAP from GoG agencies, local governments and other OGP forum members. On February 10, 2020, GGI submitted its suggestions regarding the new OGP NAP to the Secretariat focusing on: 1) Open Data management; 2) the need to address concerns of GRECO and OECD ACN regarding complex and high level corruption; 3) Public Service Delivery Index Institutionalization and 4) Beneficial Ownership Transparency. GGI also discussed NAP with CSOs involved in the process. It turned out that CSOs are well prepared for the upcoming OGP NAP elaboration process and have developed list of ideas to be communicated to the AoG. Due to the circumstance created by covid19, OGP International Secretariat made a decision to change the deadline for new OGP NAP submissions. Accordingly, Georgia can submit new NAP no later than 31 December 2020 instead of summer 2020. On June 24, 2020 GGI participated in the international webinar “What is next for Open Government in the Eastern Partnership Countries about key OGP achievements in and based on recently published IRM reports, challenges and recommendations for moving forward”. GGI has been also supporting its partner Akhaltsikhe, Batumi and Kutaisi City Halls in formulation of their respective commitments for 2020-2021 OGP NAP.

− Batumi commitment: development of Building integrity and transparency strategy and action plan. − Kutaisi commitments :(1) Collection, development and release of the Open Datasets (2) Conduct PEFA with gender module and develop recommendations and clear measurable indicators. − Akhaltsikhe commitment: Collection, development and release of the Open datasets.

Along with OGP developments mentioned above, In May, 2020, OGP Support Unit launched a new call for expression of interest for the OGP Local cohort. GGI alerted its partner (Akhaltsikhe, Batumi, Kutaisi) municipalities as well as Ozurgeti and Rustavi municipalities to first attend information webinars on the OGP Local cohort program and based on the information received consider possibility of expressing interest for the program. OGP Secretariat Georgia held teleconference for OGP member local governments and explained all the details of application process for the OGP Local cohort. GGI attended the teleconference and expressed readiness to provide support to the OGP secretariat and municipalities in application process. USAID GGI’s role and support has been extensively highlighted by the OGP Secretariat as well as Akhaltsikhe, Batumi and Ozurgeti municipalities. At the end, Akhaltsikhe, Ozurgeti Batumi, Kutaisi, Rustavi and Khoni applied for the OGP Local program. GGI worked closely with OGP Secretariat in support to Akhaltsikhe, Batumi and Ozurgeti municipalities in preparation of their applications. On September 18, OGP Support Unit informed Akhaltsikhe and Ozurgeti Municipalities that they were selected to move forward to the Full Application phase for OGP Local for final review and evaluation. Both

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 35 municipalities developed and submitted their final applications in close coordination with OGP Secretariat Georgia and GGI. OGP Georgia Webpage GGI builds on its earlier support and provides support to the Administration of the Government of Georgia to better promote OGP and Georgia’s participation in this multilateral platform nationwide. To this end, during the reporting year, GGI through competitive procedure selected and contracted a company, DDB to support OGP Secretariat of Georgia in development of OGP Georgia Web Page. DDB developed sitemap, wireframe, mock-ups and complete design of the Georgia’s OGP webpage, which were revised in response to AoG comments. Initial version of the website was amended with inputs from GGI and AoG and was presented at workshop with interested stakeholders (mostly OGP Forum members – 22 participants in total) to receive comments and suggestions for its further improvement (Monday, May 25, 2020). Initial version of the web page has been further improved based on the results of the workshop and submitted to the AoG together with its test plan. In addition, per request from the OGP Secretariat, GGI translated web-page content (36-page doc) from Georgian into English and submitted to OGP secretariat. As a next step, DDB submitted final version of the website, user Manuals/Guides, including clear-cut and comprehensive instructions. AoG formally accepted the final version of the webpage. DDB also delivered two trainings to AoG staff on OGP webpage management. While webpage development was almost finalized, AoG came up with a new initiative. OGP secretariat plans to significantly improve Monitoring framework of the OGP NAP. OGP Secretariat asked for assistance to add updated monitoring framework module (online tracker) to the OGP Website allowing interested stakeholders to track implementation of the OGP NAP commitments online. OGP secretariat provided GGI with brief concept for OGP NAP progress tracker. GGI has shared the concept with DDB and after discussing the steps, timelines and the budget, amended the contract with DDB to add tasks aimed at development of the OGP NAP progress tracker. DDB and AoG started consultations on tracker related issues. The draft design of the tracker has been developed by the DDB and submitted to OGP Secretariat for review and comments. Online tracker is expected to be finalized and launched in October 2020. OGP Communication Strategy and Action Plan During the reporting year, GGI also started providing support to OGP Secretariat to streamline OGP Communication Strategy and to develop the subsequent Action Plan together with monitoring framework as well as improve OGP Georgia branding. To this end GGI selected and contracted local STTA (Kakha Magradze). It is notable, that during consultancy process, the expert also addressed OGP National Action Plan public consultation and i-Change promotion issues. After submitting workplan and questionnaires and conducting desk review, the expert proceeded with interviews with OGP stakeholders. Kakha Magradze held in-depth interviews with representatives of different public institutions and NGOs and development partners, including GGI, in order to assess OGP current communication practice and collect specific recommendations and views on OGP’s future Public Relations. As a result, expert developed needs assessment that serves as a basis for the communication strategy and action plan. STTA also held special strategic planning workshop with participation of OGP Secretariat and PR unit representatives under the Government Administration where vision and mission; strategic objectives and sub-objectives; targeting communication matrix for the OGP Communication strategy was identified and agreed. Based on results of the strategic planning workshop, the first draft OGP Communication Strategy and Action Plan were prepared and shared with GGI for comments and suggestions. After GGI’s review, the Communication Strategy and Action Plan were submitted to the OGP Secretariat for discussion and finalization. After several rounds of consultations between AoG, STTA and GGI, the final versions of the Communication Strategy and Action Plan were prepared, submitted and formally accepted by the AoG. In addition, GGI’s expert also provided support to the OGP secretariat in improving of OGP Georgia branding including, both visual and

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 36 communication branding. OGP Communication Strategy and Action Plan together with new OGP Georgia branding will be presented at the next the OGP Council/Forum meeting. Open Government Week During the reporting year, in frame of Open Government Week (May 3-10) that due to the COVID19 outbreak has been transformed into Open Response + Open Recovery Digital Forum, GGI organized three online discussions: 1. Online Discussion with Students in cooperation with GIPA: Open Governance in Georgia during the Pandemic took place on 6th of May with participation of Keti Tsanava - OGP Secretariat of Georgia; and Levan Samadashvili – Chief of Party; USAID GGI. Discussion was moderated by Misha Darchiashvili Governance Program Manager, USAID GGI. 2. Online Discussion: “Can OGP serve as a Platform for Improving Openness and Transparency during the Pandemic?” took place on 8th of May with participation of Keti Tsanava - OGP Secretariat Georgia; Nino Makhashvili - Parliament of Georgia; Shreya Basu – Deputy Director; Country Support; OGP Support Unit; Nino Tvaltvadze – Deputy Mayor of Kutaisi; and Giorgi Oniani – Deputy Executive Director; Transparency International Georgia. Discussion was moderated by Mariam Gorgadze DCoP, USAID GGI. 3. Third discussion, held on May 11, was dedicated to COVID 19 – Implications on Openness and Transparency. Natia Mezvrishvili - Head of Administration of the Government of Georgia; Peter Wiebler, USAID/Caucasus Mission Director; Giorgi Kldiashvili - Executive Director; Institute for Development of Freedom of Information; and Kristina Reinsalu - Programme Director of e- Democracy; E-Governance Academy of Estonia participated in a discussion, which was moderated by Levan Samadashvili CoP, USAID GGI.

2.2.3 ACTIVITY 2.1.3: SUPPORT GOG TO ENHANCE TRANSPARENCY THROUGH EFFECTIVE PRACTICING OF FREEDOM OF INFORMATION ACT (FOIA) PROCEDURES Provide support to Public Defender’s Office of Georgia in FOI issues During the reporting year, GGI prepared SoW for the local STTA to provide support to the Office of Public Defender of Georgia to streamline and improve internal business process to promptly and effectively analyze and respond to the appeals of citizens of Georgia on Freedom of Information (FOI) request violations by the public institutions. Local STTA Giorgi Gabrielashvili was contracted for assignment. After initial discussion and agreement on the details of assignment, the expert submitted work plan and methodology. Afterwards consultant started thoroughly reviewing and analyzing internal procedures/business processes of the Office of Public Defender of Georgia. The consultant identified and studied legal acts and procedural documents, which regulate review by the PDO of appeals concerning FoI request violations by the government agencies. Interviews were held with the representatives of the PDO, NGOs (GYLA/ IDFI/ IRC) and two journalists. Based on this, the business process description for the review of applications/appeals concerning FoI request violations was prepared and critically analyzed. Possible options of organizational business process optimization were identified and discussed with PDO. On June 17, STTA developed and submitted a draft situational analysis report together with recommendations, which were discussed with GGI and PDO. After finalization of the situational analysis and its recommendations, the expert developed a methodology aimed at improving FoI related business processes at the PDO’s office and, shared with PDO. PDO formally accepted the methodology aimed at improving FoI related business processes at the PDO’s office. As a result, the consultancy process has been successfully concluded.

During the reporting year GGI also provided support to the PDO to study existing practices and identity challenges related to the access to public information of public agencies as well as courts. This intervention aims at supporting Office of Public Defender of Georgia (PDO) to get more insight into the existing challenges related to the right to access public information and ensure proper protection of this right.

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 37

To this end, GGI prepared detailed SoW and contracted Local STTA Vako Natsvlishvili for assignment. After initial discussion and agreeing on details of assignment, the expert submitted work plan and methodology which were agreed with PDO. Further, Vako Natsvlishvili developed a questionnaire and conducted interviews with IDFI, Studio Monitor and the Georgian Charter of Journalistic Ethics. On the government side, interviews were held with representatives of the Ministry of Economy and Sustainable Development of Georgia; State Inspector’s service of Georgia; The Ministry of Internally Displaced Persons from the Occupied Territories, Labor, Health and Social Affairs of Georgia.

Based on the survey findings, the consultant developed a draft report that among other things includes statistical data and analysis of the survey findings – major gaps and challenges identified. After considering PDO comments, STTA submitted a final survey report highlighting challenges related to the access to public information in terms of existing practices of public agencies as well as courts. Tamar Gvaramadze Deputy Public Defender of Georgia confirmed that the survey report is acceptable and can be discussed with Government of Georgia to activate issues related to the FOI legislation. With that, the above mentioned consultancy process has been successfully concluded. During the next reporting year, USAID GGI in close cooperation with PDO plans to organize a meeting with participation of AoG, Parliament, CSOs and other relevant stakeholders to present a survey report developed by the GGI’s expert and put back FOI issue on the agenda of the GoG.

Support State Inspector’s Service of Georgia to enhance capacity in personal data protection (PDP) At the end of last year, USAID GGI was approached by the State Inspector Office for an assistance. After rounds of consultations, it was agreed that GGI’s efforts will focus on strengthening the capacity of the State Inspector’s Service (SIS) of Georgia in personal data protection, including raising public awareness of the personal data protection law, its key principles and practical implications. GGI supports the State Inspector’s Service to build the capacity of civil servants in in personal data management practices at GGI’s partner agencies at the central and local levels. GGI’s interventions were intended to include development of the thematic case study brochures and development of the monitoring tool to effectively track recommendations of the State Inspector’s office. During the reporting year, GGI contracted Tamar Kaldani to create case study illustrating practical examples of personal data protection/violation and suggest ways to prevent them in the future. Health and Juvenile were selected as case study spheres. On the inception phase the expert developed sample case-study and registry of categorised cases. She revised up to 97 cases, 48 from which were selected for case study. Later, the expert submitted analysis of 48 cases and finalized case study report. After considering comments from the side of SIS, Tamar Kaldani finalized the case study. 300 copies of the study report are being printed with GGI support. In addition, GGI was asked by SIS to create the same type of case study for law-enforcement agencies considering 30 decision cases. GGI has developed SOW and will progress with contracting of STTA during next reporting period. During the reporting year, GGI also got engaged in supporting State Inspector’s Service to develop performance evaluation system and jobs descriptions for around 10 key positions. To this end GGI contracted local STTA Ia Tsulaia for assignment. The expert submitted draft WP, which was discussed on the kick-off meeting with SIS. This was followed by submitting draft jobs descriptions, furtherly used as illustrative samples for development of tailored JDs in SIS. Consultant conducted coaching activities, such as face-to-face and on-line meetings with SIS managers and HRMs. In parallel, GGI expert supported SIS to advance PES. To this end, SIS provided expert with relevant materials and documentation. Performance evaluation system was discussed on the individual meetings with select SIS staff. Expert provided

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 38 methodological guidance, along with technical remarks, to ensure further advance in upgrading of PES. On the next stage, STTA plans to meet State Inspector and top managers and progress with final recommendations. Another area of GGI’s potential assistance is SIS new initiative to translate training course on health-related data protection into e-course module, the need arose and was further exacerbated due to the COVID-19 condition. Next year, GGI will prepare RFP to identify the winner.

2.2.4 ACTIVITY 2.1.4: SUPPORT GGI’S PARTNER AGENCIES TO EFFECTIVELY FIGHT ANTI- WESTERN PROPAGANDA AND DISINFORMATION Strengthen capacity of the Regional Representatives of the Information Center on NATO and EU under the MFA and enabling them to independently conduct high level trainings and capacity-building activities on the issues of combating Russia’s disinformation and propaganda in Georgia During the reporting year, GGI started cooperation with Information Center on NATO and EU, a legal entity of public law currently operating under the Ministry of Foreign Affairs of Georgia. Information Center on NATO and EU has been providing public with easily intelligible information on NATO and EU and Georgia’s European and Euro-Atlantic integration process and its benefits. Information Center on NATO and EU (with its central office in Tbilisi and 10 regional bureaus led by Regional Representatives) carries out its activities in accordance with the Constitution of Georgia, international treaties and agreements, Law of Georgia on Legal Entities under Public Law, the Statute of the respective Center and other legislative acts. In the context of anti-western propaganda, which is a major challenge for the entire democratic world, the Information Center on NATO and EU is also involved in the process of combating Russia’s disinformation and propaganda, which represents especially acute problem at the local level in Georgia. To this end, GGI made a decision to provide support to the Information Center on NATO and EU under the MFA Georgia to strengthen capacity of its 10 local bureaus to effectively combat Russia’s disinformation and propaganda. In this process, USAID GGI will partner with NATO Strategic Communication Center of Excellence (NATO StratCom COE). More precisely, this will be a project conducted under the auspices of the MOU between the NATO Strategic Communication Center of Excellence and the Government of Georgia, in partnership with the USAID GGI. The support envisages development of the ToT module with case studies on combating Russia’s disinformation and propaganda in Georgia, training material and 5 full day training for 10-15 representatives of Information Center on NATO and EU with the ultimate goal to enable them to independently conduct high level trainings and capacity-building activities for the local government representatives and other stakeholders in Georgia. On July 31, 2020: USAID GGI, NATO Stratcom CEO and Info Center on NATO and EU held joint teleconference and discussed steps forward in the process of cooperation to effectively combat Russia’s disinformation and propaganda in Georgia. It was reconfirmed that NATO Stratcom CEO will develop ToT and training material in full compliance with NATO ACT standards/guidelines and conduct trainings in December. It was agreed that training participants, in addition to the theoretical knowledge will be also trained in fact-checking. As agreed during the teleconference, NATO StratCom developed a special questionnaire in English and Georgian to assess the level of preparedness of ToT participants on the issues of combating Russia’s disinformation and propaganda. Questions were reviewed and approved by the Info. Center on NATO and EU. NATO Stratcom submitted questions in google forms. In mid-September, based on the results of the survey, NATO Stratcom CEO developed an initial design of the course and shared with GGI and Info. Center on NATO and EU. Initial design of the course is comprehensive, addressing all the necessary elements for effective fight against Russia’s disinformation and propaganda. As a next step, the Initial design of the concept will be expanded and finalized, including detailed curriculum of the ToT. USAID

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 39 GGI will contract one Georgian expert for 5 days to help NATO Statcom CEO Experts with specifically Georgia-focused lecture and materials and to ensure that NATO Statcom CEO Experts are spot-on with the current developments; cover travel costs, accommodation and per-diem for up to 4 persons from NATO Statcom CEO to conduct ToT in Georgia in December 2020; and l hire two international experts for 5 days each. GGI, NATO Stratcom CEO and Info Center on NATO and EU are in agreement to carry out ToT in Tbilisi in December, 2020, however trainings might be delayed or held online depending on the COVID- 19 related circumstances. GGI and Information Center on NATO and EU strongly believe that online trainings on such complex and important issues will significantly affect quality of the trainings and be less impactful. In addition, GGI announced two fellowships in support of Batumi and Kutaisi regional bureaus of Information Center on NATO and EU of MFA. Fellows have been selected through open competitive process. It is anticipated that both fellows will start fellowship respectively in Batumi and Kutaisi in October 2020. Nevertheless pandemic may affect the timeline of the fellowship.

2.3 RESULT 3 – STRENGTHENED POLICY DEVELOPMENT AND LAWMAKING PROCESSES Under Result 3, GGI works with the national parliament to improve policy and law-making systems and make the legislature more open and transparent to the public. GGI has helped bring greater rigor to these systems by encouraging greater reliance on objective evidence and in-depth analyses in policy and law- making, and by encouraging policymakers and legislators to regularize opportunities for civic engagement at various stages of policy development and law-making. GGI has also equipped its counterparts with skills and systems to proactively communicate about their legislative and oversight activities and plans. In these interventions, GGI has worked with the following partners in parliament:

• Healthcare and Social Issues Committee; • Budget and Finance Committee; • Sector Economy and Economic Policy Committee; • Environment and Natural Resources Committee; • Regional Policy and Self-Government Committee; • Sports and Youth Affairs Committee; • Rules and Procedures Committee; • Parliamentary Budget Office (PBO); • European Integration Committee; • Foreign Relations Committee; • Gender Equality Council (GEC) of Parliament; • Permanent Parliamentary Council on Open and Transparent Governance (OP Council). • Parliamentary Research Center; • Parliamentary Training Center; • Apparatus of the Secretary General.

RESULT 3 ACTIVITIES

2.3.1 ACTIVITY 3.1: SUPPORT INSTITUTIONAL STRENGTHENING OF PARLIAMENTARY COMMITTEES, DEPARTMENTS, AND PARLIAMENTARY RESEARCH CENTER Support institutional and capacity building of the Parliamentary Research Center (PRC)

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 40 The PRC seeks to become Parliament’s main research body to support evidence-based policy-making. Its recent upgrade in status to a Legal Entity of Public Law (LEPL) at the end of PY 5 creates an opportunity for the Center to establish a solid presence in Parliament by effectively marketing its products and services. GGI will support this overarching goal by assisting the PRC with staff capacity building, peer learning and communication activities. GGI will work to replicate its highly successful fellowship program to support committee work to spearhead a similar program for the PRC. GGI will also assist the center in facilitating partnerships with local and international peer institutions. During the first quarter of the reporting year, upon the request form the Research Center, GGI engaged international STTA Lars Olesen to develop a concept of an electronic library rooted in international best- practices. The assignment aimed at developing a concept of the E-library that would conceptualize the collection of local research that exists in Georgia and is scattered across academic research institutions, think tanks, CSOs and alike. It was important to create a concept for a central directory which promises to unite this research into a well-organized and accessible content including identification of information sources, library structure, content categories, etc. Following the preliminary discussion and several follow- up meetings, the international expert developed and shared the first and final draft of the E-Library concept report with the head of the Research Center. Based on the report prepared with the assistance of GGI The Research Center can now work on electronic library concept and take the process forward. As another area of assistance ,the Research Center was seeking an opportunity to organize a study tour to the United States to share the best practices in their filed. Based on multiple meetings with the PRC GGI tabled a study tour concept paper which was approved by the Research Center. However, due to the outbreak of the pandemic and resulting travel-restrictions the activity has now been cancelled. The Research Center has also requested assistance in staff capacity building. Two areas were identified where staff require immediate assistance in upgrading their skills. Both revolve around communicating information gathered as part of research and analysis. First, improving public presentation skills – presenting reports in a comprehensive, easily digestible and concise manger. And second, visualization – training in visualizing reports using infographics and other modern tools so that content is easily comprehensible. To this end, during the reporting year, GGI developed a Scope of Work for an expert in data management and visualization to help increase the capacity of the PRC staff in displaying and visualizing data analysis reports in MS Excel that helps better interpreting analytical results. Due to the new restrictions in connection with the coronavirus pandemic, GGI has halted training preparation process. However, GGI stands ready to re-engage with the PRC as the epidemic situation allows. Finally, during the last month of the reporting year, the Head of the PRC was nominated as an MP candidate for the ruling party in the upcoming Parliamentary elections set for October 2020. GGI will continue to engage with the PRC and identify further priorities as the new leadership identifies priorities. Support capacity building of Parliamentary IT Department Under Open Parliament commitments Georgian Parliament needs a robust IT support in establishing and maintaining all the electronic services and features that the legislative body intends to offer. In order to set the stage for reorganizing the work of the IT department to meet the increasing need for better management and implementation of Open Parliament commitments, GGI engaged in assisting the Parliamentary IT department to undergo management, process and project audit to identify shortcomings and chart the way forward. Accordingly, during the PY5, GGI launched the IT Audit project for Parliament’s IT department by engaging an external IT company – UGT. IT audit process, tasks and timeline were agreed with Parliament’s Secretary General Givi Mikanadze and Parliament IT department. Following the series of interviews with stakeholders, UGT has developed gap analysis, which was reviewed and approved by the Parliament. The gap analysis was followed by the recommendations which detail a roadmap towards improving management and processes. UGT helped the department develop a number of information security

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 41 policies, including incident management, quality control as well as elaboration of the Statue of Information Security Council and regulations of IT governing bodies. UGT also assisted parliament in developing methodologies for identifying information security risks, information technology projects as well as developing a service portfolio. As the COVID-19 pandemic outbreak started to affect Georgia, GGI reengaged with the IT department to support the management of the work process in Parliament. Considering the new arrangements in connection with the pandemic requirements for staff to conduct remote work, Parliament identified a need for Cisco Webex licenses and asked for GGI support. Since the legislative body moved to remote work there is much higher demand for video conferencing software, while Parliament’s capacity to incorporate the software costs in its budget remained limited. GGI partnered with UNDP and following a standard bidding procedure awarded contract to company Softline to provide Parliament with 25 Webex licenses. Precisely, out of 25 licenses requested, USAID GGI covered the cost of 12 licenses, while the UNDP project covered the remaining amount. USAID GGI’s support to purchase Cisco WebEx licenses for the Parliament of Georgia was an important contribution that helped the Parliament tailor its institutional culture and behavior to the demands created by this crisis and the necessity to conduct work remotely. Support Parliament’s Gender Equality Council and Parliamentary Committees by building in-house training capacity in GIA During the current reporting year, GGI team started organizing International Women’s Day. With the global celebration, USAID GGI planned to organize a public event and focus on achievements of women in civil service (bringing the women of USAID GGI partner organizations, including Parliament of Georgia to highlight their work as well as bring attention to the essential challenges affecting them). Also, to emphasize gender-related components of the activities completed in collaboration with partner organizations such as: gender impact analysis and gender budgeting. A presentation of the GIA reports developed with USAID GGI assistance was envisioned as part of the event, however due to pandemic restrictions, the event was canceled. During the reporting year, in collaboration with NDI, USAID GGI has been exploring the possibility of supporting a COVID-19 focused GIA study led by the GEC. The initiative was actively discussed among USAID GGI, GEC and NDI. The discussion was focused on the possible distribution of work among the donors and a potential timeline. However, the post of the GEC head remains vacant which hinders further activities in this direction at the moment. GGI together with partners will re-engage once the new leadership of the GEC assumes office following the October 2020 elections. Additionally, in the Spring of 2020, USAID GGI participated in several discussions spearheaded by MP Nino Tsilosani aimed at collecting recommendations that were later submitted to the Government of Georgia in order to assist in improving gender-sensitive handling of the unfolding pandemic. Support Parliamentary Training Centre in enhancing training capacity In order to support institutional strengthening of the select parliamentary bodies, USAID GGI embarked on supporting the Parliamentary Training Center (PTC) in developing its online E-learning platform which was launched during the current reporting year. Parliamentary Training Center was established in 1996 and has been significantly strengthened since then. The current functions include developing, organizing and coordinating study plans and targeted training programs for civil servants, MPs and other relevant parties, as well as organizing traineeship and internship programs. The Training Center now runs in-house trainers’ development program and has worked on developing training templates for training programs and syllabuses. However, the PTC is currently moving towards institutionalizing the blended method of learning (both in-person and online), but lacks sufficient knowledge and expertise in how to develop its online platform.

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 42 In order to meet this demand, Parliamentary Training Center has piloted an online training platform using open source e-learning and content management system software Chamilo. Since the E-learning is a new undertaking for the Center, it lacks expertise in setting up and running of such a platform. During the first quarter of the reporting year, the Center requested outside assistance to evaluate the existing platform and provide recommendations on its structure, content and management. GGI engaged international STTA Lars Olesen, to lead the process. The expert conducted on the ground work holding interviews and focus group discussions at the Training Center with in-house trainers and users, the head of the Training Center as well as the Secretary General of Parliament. GGI expert finalized the report with recommendations for the training center e-learning module and presented it to the Center’s management. The expert recommendations were well received. GGI also translated a shortened version of the report in Georgian and shared it with the Training Center and Secretary General. Later, PTC requested to assist with expert support on Distance Learning Course Design in line with recommendations produced by the GGI international expert. As a result, USAID GGI recruited local STTA Avtandil Janjgava as Distance Learning Course Designer and Technical Developer to help in this undertaking. The expert was assigned to oversee the methodological streamlining of the e-learning portal and create visual content using multimedia platforms available online. This process helps to meet the demand for creating well-targeted educational products inside the Parliament that meet the basic standard framework for online courses, are uniform and can be fully institutionalized over time. The work of the expert was delayed due to the pandemic restrictions. During the current reporting year, the expert finalized a methodological standard document, which includes course design and content standards and conducted online presentation to the Parliamentary Training Center. The presentation covered topics on sequence of information, enrichment with graphic materials and how information shall be shared and delivered in the most efficient way, strategies and multimedia tools for creating online courses and the best way to arrange it. The standard methodology document outlined minimum technical and design requirements for every online course produced by the PTC. Expert also developed video tutorials on how to create new courses in Chamilo portal and helped update the existing courses based on the developed standards and the new design. GGI expert also conducted training for the technical staff to familiarize them with the new standards. PTC highly appreciated this collaborative progress and the work of the expert. As the project was nearing its completion, PTC moved from Chamilo online portal to Moodle and is currently working on developing a mobile application that will allow accessing courses remotely. Once this process is complete, GGI will re-hire expert Avtandil Janjgava to assist the PTC in upgrading its technical skills to be able to create and edit visual material for the online portal. Continue the legislative fellowship program by recruiting and placing highly qualified recent graduates in Parliament to enhance policy research and analysis capabilities GGI supports committees and relevant departments to strengthen policy research and analysis capabilities by continuing the legislative fellowship program, which has proven to be a successful instrument in previous years. In response to the continuing demand for fellows from our parliamentary partners, GGI continued the legislative fellowship program, directly implemented and managed by GGI. Following the competitive selection, legislative fellows are recruited in the GGI partner parliamentary committees and the PBO. Examples of their daily activities include policy analysis and research, drafting of explanatory notes and committee reports, and developing policy briefs for the committee leadership. During the reporting year, Five GGI fellows were hired at the select parliamentary committees and bodies. Fellows were actively participating in the parliament work and had very positive feedback from their respective supervisors. Sopiko Kurtanidze was supporting Sectoral Economy Committee. Mariam Burdiladze (with the economic background) and Salome Okribelashvili (with the Legal background) at the Budget and Finance Committee. Their fellowship was extended for one additional term and was concluded

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 43 in the closing quarter. Imma Katamadze was supporting PBO. After conclusion of her fellowship, GGI recruited new fellow Otar Davitaia to assist PBO. At the end of the reporting year, PBO acting head approached GGI with a request to provide the office with another fellow who will be solely focused on policy analysis and writing assignments. Despite the pandemic, fellows adjusted to the remote work and carried out their duties successfully. GGI organizes periodic online meetings with fellows to discuss their progress and ongoing activities and fellows continue to provide monthly updates. In the subsequent reporting quarters GGI will focus on strengthening the capacity of parliament in COVID-19 relevant analysis and reporting and will gear the work of subsequent fellows in this direction.

2.3.2 ACTIVITY 3.2: CONTINUE SUPPORT TO THE OPEN PARLIAMENT PARTNERSHIP (OPP) Support further development and launch of Parliament’s new website As part of GGI’s assistance to the Open Parliament Initiative, the project has been supporting the Georgian Parliament in Development of a new website. During Year 4, GGI subcontracted a local digital communications agency Leavingstone to work with parliament to develop a concept, including a new structure and interface for the new website and to develop and set-up a new website platform itself. The newly developed website, which includes additional features such as electronic petitions and comments section on draft legislation, was further improved based on feedback from presentations with the key actors in parliament including committee members, secretary general, IT and PR departments, as well as the CSO representatives which are part of the Open Governance Permanent Parliamentary Council advisory group. Apart from developing the website, the contractor provided series of control panel trainings for the parliamentary staff and remained engaged during the data migration process. During the reporting year, Leavingstone was contracted twice to complete Parliament’s oversight page and finalize the outstanding technical issues in connection with the data migration process. Leavingstone developed parliamentary oversight page as a separate project due to novelties in parliament’s oversight functions to reflect all oversight-related content on the new website. Leavingstone also provided additional services to Parliament to assist in data migration process from the old site to the new one, which remains as one of the biggest obstacles, since it requires significant amount of time and human resources. During the reporting year, parliamentary staff working from home was actively engaged in the process of data migration. Since the working process revealed outstanding technical issues in the last phase leading up to the launch of the website, GGI organized two face to face meetings at the Parliament with all the parties engaged in the working process. As a result of the meetings, the parties drew up a full list of technical issues that required fixing before the page can be launched in a test mode. The list was agreed by both the company and Parliament after two rounds of negotiations and GGI subcontracted Leavingstone to finalize the development process. At the end of the reporting year, Leavingstone had almost exhausted outstanding technical issues agreed in the contract and completed the design process which involved providing sample design options to Parliament. The company also completed a full data migration of the content that will allow test launching the site in the next reporting quarter once Parliament has verified that migration has gone through successfully. Following the test launch, Leavingstone will provide the so-called “babysitting” services to Parliament fixing technical issues as they arise. Support development of OGP Action Plan 2020–2021 Since endorsing the Declaration on Parliamentary Openness in 2015, the Parliament of Georgia has worked to make the legislative body more transparent, open, and accountable. In support of this overarching goal, GGI engages the Georgian Parliament to implement the Open Parliament Georgia Action

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 44 Plan. In the reporting year period, GGI built on successful interventions to date, including continued support to the Open Parliamentary Council to develop a new action plan for 2020–2021. The new action plan will serve as the basis for continuing OGP work in Parliament and will transition to the new convocation to be elected in 2020. GGI plans to continue to support this process by engaging with the Open Parliamentary Council and facilitating wide participation of all relevant interlocutors and the public in the process. During the reporting year, GGI took the lead in organizing and sponsoring Open Parliament consultation group working meeting which was due to take place on 21-22 March. Due to the Coronavirus pandemic, OGP consultation group working meeting was cancelled. Given the circumstances caused by the novel Covid-19 and declared state of emergency, the Council collected action plan ideas remotely. GGI, on its part, submitted three proposals. GGI also participated in a permanent council meeting which took place online where OGP secretariat presented its 2020 interim report. Furthermore, as the pandemic restrictions eased, the Working Group held a two-day meeting in Summer of 2020 where GGI actively participated in the discussions and presented its action plan proposals. The Open Governance Permanent Parliamentary Council discussed over 20 initiatives submitted by civil society and international organizations. GGI initiatives included supporting the public engagement center, supporting information campaign of the new parliamentary website, as well as supporting transparency and accountability by publicizing reports from a novel instrument on healthcare spending created for the Healthcare Committee of the Georgian Parliament. A consolidated final draft will be circulated once all the proposals are reviewed by the Council Secretariat. The approved initiatives will make it to the draft OPP Action Plan 2021-2022 that will have to be approved by the new convocation of Parliament.

2.3.3 ACTIVITY 3.3: SUPPORT PARLIAMENT IN RAISING AWARENESS ON COUNTERING MALIGN KREMLIN INFLUENCE (CMKI) Raise awareness of CMKI and disinformation-related topics within Parliament and facilitate initiation of policies in this area GGI will assist in responding to the challenge of the Kremlin’s malign influence in Georgia by raising awareness of CMKI and disinformation-related topics within Parliament and facilitating initiation of policies in this area. The activity will build on previous GGI assistance to the Foreign Relations Committee to finalize a thematic inquiry on disinformation, which has completed. The recommendations tabled as part of the Foreign Affairs Committee Thematic Inquiry report will set the stage for further parliamentary work in this direction. GGI will support Parliament in implementing recommendations and engaging public participation through public meetings and campaigns, with a focus on youth and marginalized groups. During the reporting year, the Committee on Foreign Relations asked GGI to assist with a Thematic Inquiry report on disinformation. The Committee started the thematic inquiry process with Westminster Foundation for Democracy and asked for assistance in putting together a final report as the committee lacked the expertise to methodically combine and analyze the collected data. GGI engaged Local expert Zviad Adzinbaia and Vienna based international expert Jaba Devdariani. The local expert reviewed audio recordings of the testimonies and all the written evidence gathered that allowed him to draft the final report. After several rounds of revisions with the participation of GGI, the report was shared and discussed with the Committee working group members. The report was presented to the wider audience by Member of Parliament Nino Goguadze. The newly elected Deputy Speaker, the Head of the European Integration Committee, members from the ruling party, as well as independent MPs, invited experts, representatives of the CSOs, media outlets and Embassies were present. The presentation was followed by Q&A session. Participants were engaged in an extensive discussion with the presenter. The second

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 45 part of the presentation was dedicated to the measures to be implemented to protect 2020 Parliamentary Elections from disinformation and propaganda. The participants agreed that it is critically important to make social media more accountable and cooperate with these organizations to develop and implement efficient and effective policies against spread of disinformation and fake news. The committee formally adopted the recommendations and uploaded the report to the parliamentary website. The Foreign Relations Committee also sent the results of this inquiry to the administration of the government for further action in order to help implement the proposed recommendations. Later, European Integration Committee took over the monitoring of the execution of the recommendations outlined in the Foreign Relations Committee report on disinformation and propaganda. The Committee decided to hold hearings with relevant interlocutors on the topic of upcoming 2020 elections in the context of threats pertinent to disinformation and propaganda. This topic remains of high relevance and has been flagged as a security challenge for Georgia by number of governmental and non- governmental organizations. The committee deemed important to hold relevant hearings and communicate well-tailored messages to the wide audience in an effective manner. Therefore, the Committee requested assistance to provide a subject-matter expert on the topic of disinformation. Also, the committee asked for assistance in the design and implementation of a communication campaign tied to the Committee work in this direction. Consequently, USAID GGI drafted SoW for two experts. Kakha Maghradze who was slated to work with committee on communication strategy, while Zviad Adzinbaia was being considered as a subject-matter expert to help organize the hearings due to his past extensive experience in this area. GGI expert Zviad Adzinbaia submitted a draft concept document covering the aims, expected outcomes and the roles of the main actors and stakeholders which was shared with the committee. However, the planning process slowed down as the Committee informed GGI that they planned to postpone the hearings until September 2020 instead of summer months. The Committee feared that month of July left insufficient time for preparation and conduct of the hearings. Due to the restrictions in connection with the pandemic, as well as the pre-election period in the country the hearings are currently on hold. GGI stays engaged and will resume work in this direction at the earliest possibility.

2.3.4 ACTIVITY 3.4: SUPPORT EVIDENCE-BASED LAW-MAKING PROCESS Provide committees with expert support for specific legislation prioritized by parliamentary committees GGI works with partner committees to identify specific pieces of legislation requiring expertise that cannot be provided by committee staff or through stakeholder consultations and identifies and provides such expertise through short-term experts. GGI also facilitates meetings of working groups and advisory councils established within the committee, working on specific legislative initiative and/or salient topics. During the Year 5, the Healthcare and Social Issues Committee requested GGI to provide expert support to assist in reviewing the Law on Medicine and Pharmaceutical Activities with the aim of proposing relevant legislative improvements. The committee required expert assistance in reviewing the draft, tabling recommendations and input for the law-making process. GGI engaged local expert Kakha Skhvitaridze to support the committee. After agreeing with the head of the committee on a detailed action plan, which included elaboration of best practices and recommendations on the amendments to the law, the consultant submitted a document on the international best practices to the Committee. During the first quarter of the reporting year, local expert Kakha Skhvitaridze continued assisting the committee by drawing up recommendations pertinent to the revision of the law on pharmaceutical activities. The expert prepared recommendations and submitted the document to the Committee. The expert also attended and participated in two hearings on the topic as part of the Committee led Post

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 46 Legislative Scrutiny process, also supported by GGI. After a sudden resignation of the committee chair, the process of further development and updating of the law was postponed. During the Year 5, the Environment and Natural Resources Committee came forward with an initiative to draft a new law titled “Green Lines” which is aimed at creating a legal framework for protecting green spaces in self-governing cities of Georgia. GGI supports committee capacity building to establish a well streamlined legislative drafting practice with relevant research, analysis and recommendations tabled as part of the process. The regulation of the protection of green spaces in urban areas is actively featured in public discourse in Georgia, but, thus far, the discussion has not been followed by a legislative effort that would respond to the existing needs. Moreover, Parliament’s limited legislative drafting expertise impedes both adoption and implementation of policy. Parliament lacks a well-established standardized process for conducting legislative drafting. Often, wide-ranging stakeholder involvement and public discussion, as well as in-depth expert-level analysis is absent at different stages of the drafting process. In order to meet the demand for capacity building in parliament aimed at streamlining the legislative drafting process, GGI supported the Environment and Natural Resources Committee in establishing a model practice in this area. The process aimed to serve as an example for future such initiatives both within the Environment Committee and in parliament as a whole. During PY5, GGI engaged local expert, Lika Chachukashvili to support the committee in drafting legislation on protection of green spaces in self-governing cities of Georgia. GGI also offered the committee assistance in identifying international best practices on the topic through GGI international consultant David Smith, who provided a report that was modified in accordance with the Georgian context. The committee identified working group members comprised of MPs, representative from the mayor’s office, from the agency of protected areas as well as USAID GGI consultant David Smith. Lika Chachukashvili produced an initial draft of the proposed legislation in coordination with the committee. GGI also facilitated discussion of proposed measures with representatives of local governments as the draft law will affect all self-governing cities in the country and the legal drafting process necessitates the input at the local level. During the first quarter of the reporting year, the working group meeting took place at the Parliament. Representatives from Tbilisi city hall, private sector and committee staffers also attended the meeting. Parties expressed their opinions regarding the document and their recommendations. GGI expert updated draft document in accordance with the received feedback. The next steps in the process are initiating the draft law in Parliament and holding an extended meeting to present the draft law to the wider public. The process was hindered after the change in the leadership of the committee. The Chair was promoted to the Vice Speaker’s position. GGI held discussions with the new Chair who expressed readiness to continue working on the draft law. However, the ensuing pandemic halted the process as the parliamentary work was significantly hindered during the Spring 2020 session. GGI engaged with the Committee and communicated continued support to finalize the process.

2.4 RESULT 4 – STRENGTHENED INSTITUTIONAL OVERSIGHT OF GOVERNMENT Under Result 4, GGI works with key GoG institutions to strengthen their ability to fulfil their constitutional oversight roles, while supporting improved coordination and cooperation among government bodies. GGI continued to focus assistance on supporting parliamentary Committees and the budget office with oversight responsibility over the national and sector budgets, supporting the SAO with oversight and audit responsibilities for public funds spending, and working with partner ministries and local municipalities to strengthen internal control systems and internal audits.

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 47 RESULT 4 ACTIVITIES

2.4.1 ACTIVITY 4.1: CONTINUE SUPPORTING PARLIAMENT IN CREATING AND INSTITUTIONALIZING EFFECTIVE OVERSIGHT SYSTEMS Support the parliamentary committees in assessing governmental programs and spending Program Evaluation GGI supports Parliamentary Committees in conducting oversight of government programs and spending. GGI is assisting the Healthcare and Social Issues Committee to conduct oversight focusing on the Universal Healthcare Program and The State Program for Provision of Medicine for treatment of Chronic Diseases. GGI support focuses on capacity building effort in the Committee with the aim to help establish a standardized evaluation matrix for these State Programs. The intervention meets the demand for establishing a model practice in government program assessment and serves as an example for future initiatives both within the Healthcare and Social Issues Committee and other Parliamentary Committees. During the year 5, GGI cooperated with the Healthcare Committee which requested assistance in analyzing the healthcare programs to exercise the Committee oversight functions. Following discussions with the Committee Chair, it was agreed to focus on the universal healthcare program and State Program for Provision of Medicine for treatment of Chronic Diseases. USAID GGI supported the capacity building effort in the committee with the aim to help establish a standardized evaluation matrix for the state programs. GGI hired a local expert Mikheil Kukava, who demonstrates in-depth knowledge of program budgeting, monitoring and evaluation system in the given field, to analyze the two programs. After a series of interviews with all relevant interlocutors, expert collected input and developed draft evaluation matrixes. The final presentation with the participation of the new Committee Chair, Committee MPs and representatives of the Ministry as well as medical experts was held during the first quarter of the reporting year. In the process of implementation, the previous committee chair resigned from the post while the new chair was familiarized with the project at the final presentation and expressed his support towards further honing the product. The content and the use of the matrix garnered big interest. During the reporting year, GGI expert continued to work with the Committee to help use the created matrixes to analytically interpret and visualize the results, and help create a user-friendly interface for the matrixes in order to reach relevant audiences in a most effective manner. The work continued during the COVID-19 pandemic, as expert Mikheil Kukava conducted several presentations to the Committee staff, USAID GGI and the Social Service Bureau representatives. As a final benchmark of the project, GGI published an RFP and selected the company UGT to develop software aimed at creating a program which transforms existing matrixes into a software platform. The current matrixes require distilled and simplified interface to support the evaluation process of the two programs. The new software will be used to reach relevant audiences in a most effective manner and will allow future routine updating of the data. GGI organized a kick-off meeting with the software Company UGT and Mikheil Kukava who are working together during the software development process. UGT has held a presentation of mockups and structure of the software, received feedback and is completing the active phase of developments. A number of discussions were held between UGT and GGI experts to agree on the modalities of the new dashboard. It is expected that UGT will finalize the work on the Universal Healthcare Program Monitoring Portal in cooperation with GGI experts and the Social Service Bureau in the next reporting quarter. GGI communicated with the Healthcare Committee and agreed that the portal will be formally presented in the Committee. Following the presentation, the Committee staff will be actively trained to be able to

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 48 operate the dashboard independently. Depending on the pandemic situation, the presentation and trainings will be held either remotely or in person. Enhance parliamentary capacity in utilizing parliamentary oversight tools Parliamentary oversight will remain a key focus area for GGI. In 2018 Parliament adopted new Rules of Procedure (RoPs) that introduced more robust oversight mechanisms. GGI has been working with Parliament to pilot these new instruments and will work to further assist in this direction. The activity will invest in necessary methodological support and guidance, as well as capacity building, to help Parliament become self-reliant when utilizing the new oversight toolkit. GGI’s assistance to the committees in the implementation of parliamentary oversight covers conducting PLS and thematic inquiry and drafting thematic reports. GGI will also link support provided to the Parliamentary Training Center and Research Center to deliver tailored trainings in these areas as needed. During the first quarter of the reporting year, GGI finalized development of an updated version of a user- friendly handbook on budgetary process and oversight which was originally created in 2017. Due to the changes in the Rules of Procedure in 2018 the brochure became outdated and required a necessary update. Following and extensive process of editing which was led by GGI consultant in cooperation with the Committee, GGI tabled a final draft, designed and printed the guidebook. PLS Certified Training Course During PY5, USAID GGI took up a new initiative in the direction of strengthening of the oversight capacity of the Georgian parliament by helping institutionalize post legislative scrutiny (PLS). GGI sent three partner committee staff from Healthcare, Environment and Rules and Procedures Committees on a certified training course in the United Kingdom during July 1-5, 2019. The course was implemented by the Institute of Advanced Legal Studies of the University of London (IALS) and the Westminster Foundation for Democracy (WFD). As commitment envisaged, after return, participants started working on developing a training module for the parliamentary staff in cooperation with the training center. During the first quarter or the reporting year, the training plan was drafted and agreed with training center. The training session was held on 6th of November at a venue outside of Parliament. A half-day training for 15 staffers was organized, each staffer from each committee. The training was focused on a general overview of different stages of the PLS conduct, experience sharing from the healthcare and environment committee staff on their practical work on PLS in the committee, as well as additional sources and practical exercises. Thematic report During the PY5, Sectoral Economy and Economic Policy Committee requested assistance in drawing up a thematic report on the law of Georgia on Public Private Partnerships. To this end, GGI engaged local STTA Giorgi Papava as subject expert and local STTA Kakha Uriadmkopeli as oversight process expert to create a framework for thematic reporter’s scope of work. MP Nino Tsilosani from the Committee took the lead on the initiative and presented the final findings of the Thematic Report. During the first quarter of the reporting year, MP Tsilosani and GGI experts developed the report framework, held structured interviews with relevant parties and produced a draft which was revised and completed. The process was hindered as MP Tsilosani was transferred as a new head of the Environment Committee, but Tsilosani remained engaged with the project. On the 3rd of February 2020, MP Nino Tsilosani presented the final report at the Committee hearing of the Sectoral Economy and Economic Policy Committee. The presentation was followed by a Q&A session. The Committee Members engaged in an active discussion asking questions and sharing their views on the report. The Thematic Report was among the first developed and presented by an MP based on the new requirements outlined in the Rules of Procedure, which requires the Committees to assign thematic reporters to specific areas in the Committees focus.

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 49 Thematic inquiry Disinformation: In order to improve Georgian Parliament’s oversight functions the new Rules of Procedure (RoP) mandates the committees to conduct thematic inquiries on diverse issues of public relevance. The practice of conducting thematic inquires has been introduced only recently and there is considerable lack of experience in managing the public inquiry process. This includes drafting of Terms of Reference, analyzing submitted evidence, holding public hearings and preparing the final report. It is critically important to establish a well-functioning thematic inquiry process which responds to international standards and ensures public engagement as well as subsequent rigorous analysis of the findings. Since thematic inquiry mechanism is only now taking root in the Georgian parliament, the Committees lack the community of knowledge and expertise in this direction. Consequently, USAID GGI accepted the request from the Committee on European Integration to guide their thematic inquiry process and assist in establishing a process based on best international practice. At the beginning of the reporting year, committee on Foreign Relations asked GGI to assist with Thematic Inquiry report on disinformation. The committee started thematic inquiry process with Westminster Foundation for Democracy and asked for assistance in putting together final report on thematic inquiry as the committee lacked the expertise to methodically combine and analyze the collected data. GGI engaged Local expert Zviad Adzimbaia and Vienna based international expert is Jaba Devdariani. Local expert reviewed audio recordings of the testimonies and all the written evidence gathered that allowed him to draft the final report. After several rounds of revisions with the participation of GGI, local expert Zviad Adzimbaia and international expert Jaba Devdariani the report was shared with the Committee working group members. On February 3, 2020, the report was presented to the wider audience by member of Parliament Nino Goguadze. The newly elected Deputy Speaker, the Head of the European Integration Committee, members from the ruling party, as well as independent MPs, invited experts, representatives of the CSOs, media outlets and Embassies were present. The presentation was followed by Q&A session. Participants were engaged in an extensive discussion with the presenter. The second part of the presentation was dedicated to the measures to be implemented to protect 2020 Parliamentary Elections from disinformation and propaganda. The participants agreed that it is critically important to make social media more accountable and cooperate with these organizations to develop and implement efficient and effective policies against spread of disinformation and fake news. In order to formally adopt the report, another hearing of the report was held at the Foreign Relations Committee in March. GGI attended the hearing. During the hearing, the Committee decided that the European Integration Committee will take the lead on the report, but the Foreign Relations Committee will keep the document in its action plan as well. MP Nino Goguadze presented the findings of the report and the respective recommendations. The committee formally adopted the recommendations. Technical Vehicle Inspection During the first quarter of the reporting year, the Committee on European Integration requested to provide support on thematic inquiry on the Intermittent Vehicle Technical Inspection. GGI engaged local STTA Ekaterine Laliashvili as a subject matter expert to lead the process. GGI also involved oversight process expert Kakha Uriadmkopeli to streamline the process with the RoP requirements. Ekaterine Laliashvili helped develop the terms of reference which was placed on Parliament website. Four submissions were received by the deadline which were analyzed by the expert and the committee. The committee held first public hearing in October with the participation of the committee chair, GGI expert and representatives from the private sector and NGOs. Following the hearing, GGI expert assisted in drafting a final report on thematic inquiry considering submissions and feedback from committee hearings.

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 50 The process in the parliament was delayed due to change of the committee chair. Second and final hearing was held on December 23. Further, GGI expert assisted in drafting a final report which incorporated all content collected as part of the process. Finalization of the report and presentation was delayed due to COVID-19 pandemic. GGI discussed the issue with European Integration Committee. The Committee is expecting comments from the Ministry of Internal Affairs, which is one of the lead Ministries managing the pandemic. Thus, the Committee is on stand-by and will revert back to them once the situation stabilizes. Arts and Pre-school Education During the reporting year, another request for assistance with a thematic inquiry was received from the Committee on Education, Science and Culture. The Committee initiated a thematic inquiry process on the “Arts Education Practices in General Education Institutions” and requested GGI’s involvement in guiding them through the process as it is the Committee’s first such initiative. To this end, GGI engaged local STTA, a subject-matter expert Rusudan Tevzadze to work with the committee and assist in establishing a process based on best international practice. With the assistance of the expert, the Committee published a ToR and received 25 responses from interested parties. Expert Rusudan Tevzadze worked with the Committee to analyse the received responses and draw up a list of questions for public hearings. The first public hearing was scheduled to take place in March, but was postponed due to the coronavirus outbreak. It was only possible to schedule the first public hearing in mid-June as Covid restrictions were lifted. Two hearings took on June 16 and June 17. Relevant interlocutors from Arts Schools and other institutions of the kind attending the hearing presented their points of view. The hearings were chaired by the Committee with active assistance from USAID GGI expert. The Committee held its third meeting with the executive branch representatives on June 29, 2020. The Ministry of Culture and the Ministry of Education, as well as the Tbilisi City Hall representatives, attended the meeting. The Committee Chair provided a brief overview of the thematic inquiry process and the USAID GGI technical expert familiarized the group with the draft recommendations drawn up as a result of the desk research and public hearings. The participants engaged in a fruitful exchange of views. Further, executive branch representatives provided additional comments to the draft report which were considered while finalizing the report. The Thematic inquiry process has now been finalized. The Committee published the final report on the parliamentary website. In August, the Committee requested to edit, design and print Thematic Inquiry Final Report (100 copies). The final design was agreed and 100 copies of the report were printed in September. The Education Committee requested GGI assistance in the process of conducting a second thematic inquiry process on the topic of access to pre-school education in Georgia. The Committee required subject-matter expert on the topic who could analyze the effects of the new law which introduced unified pre-school institution standards. The Committee formally registered the inquiry with the Parliamentary bureau and started the process during the Summer 2020. The inquiry will conclude during the Fall Parliamentary session (ahead of the elections). Nino Pruidze, an expert who has a strong background in the respective field was selected to lead the process. Pruidze held several discussions with the committee and provided her input on questions of the ToR, which was approved\ and published in early August. The interested parties have submitted written evidence to the Committee last week and GGI expert reviewed and submitted a consolidated analysis. Due to worsening of the pandemic situation in the country the hearings with relevant parties which were due to take place in parliament were postponed. However, the Committee took the lead in organizing the hearings online instead. A hearing with those organizations that have submitted written evidence was held on September 22, remotely. Once the hearings are complete a final consolidated report will be draw up, finalized and shared with the public.

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 51 On September 30, the Education, Science and Culture Committee Chair organized an online discussion with the Ministry of Education, the Ministry of Health and other government representatives to discuss the findings of the thematic inquiry on pre-school education and seek their input in the process. The meeting was originally scheduled to take place in Parliament, but was moved online due to worsening pandemic situation. USAID GGI expert Nino Pruidze held a presentation summarizing the findings of the inquiry thus far. The participants asked questions and provided their input. Deputy Minister of Education Ekaterine Dgebuadze who attended the call, thanked the Committee for its thorough work and expressed readiness to stay engaged in the process. Once the draft thematic inquiry report is finalized, it will be shared with all participants for their comments and feedback.

Post Legislative Scrutiny (PLS) Post-legislative scrutiny – an essential part of parliamentary oversight, is a new area for the Parliament of Georgia. Current Rules of Procedure of Parliament acknowledges the fact that parliament can, as part of its oversight efforts, engage in post-legislative scrutiny. However, it falls short of detailed information or practical guidance on conducting it. Since the adoption of the new constitution in 2017 and parliament’s declared intention to significantly strengthen its oversight mandate, parliament initiated a fundamental reform of the RoP. The new RoP contains significantly more robust parliamentary oversight section, including clearer mechanisms for post-legislative scrutiny that will lie with parliamentary committees. During the first quarter of the reporting year, Healthcare committee chair requested to design and translate from Georgian into English Post Legislative Scrutiny (PLS) Final Report produced by the Committee with the assistance of USAID GGI on the Smoking Ban Law. GGI engaged a translator and designer to complete the task. The translated document was reviewed by GGI and the Committee and the final design was agreed. GGI transferred a final designed file to the Committee for printing and distribution among different interlocutors. The Parliament’s printing house which has been put in place recently will be utilized for printing services. During the current reporting year, The Environment and Natural Resources Committee held two hearings which was part of the Post Legislative Scrutiny (PLS) piloted with the assistance of USAID GGI. GGI started piloting the practice of PLS with the Environment Committee last year, which assesses the implementation of eased taxation regime on the import of the electric engine vehicles in Georgia. In 2016- 2018, changes were made in the Tax Code of Georgia regarding electric vehicles. The amendments aimed at increasing demand on vehicles oriented on high technologies and that helps lower air pollution. The PLS assessed the implementation of these changes. The Environment Protection and Natural Resources Committee held two hearings, one with the participation of associations and private companies which import electric engine vehicles to Georgia and other with government representatives that are in charge of implementing the new tax regulation. The Committee collected valuable input from all sides during the hearings and used the collected evidence to finalize the PLS report. Further, the Committee requested to edit, design and print Post Legislative Scrutiny (PLS) Final Report. With GGI assistance PLS report was designed and printed. The Committee also requested to assist them in organizing a presentation of the Committee Spring Session Report and Post Legislative Scrutiny (PLS) final report which was conducted in the parliament of Georgia on August 3rd, 2020. The presentation covered activities which had been carried out during the spring session by the Committee, along with the presentation of the PLS Report. The event was held as scheduled and was conducted successfully. The Committee Chair alongside USAID representative spoke at the event. The Chair thanked GGI for its contribution to the work of the Committee and presented a short video clip on the work conducted under the PLS framework. The printed report was also distributed. Assist Parliament in conducting an induction training for newly elected MPs

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 52 It is essential that the oversight practices that have been established in Parliament with GGI assistance are further institutionalized and transferred to the new Parliament in 2020. Replicating and building on its successful training for newly elected Members of Parliament (MPs) in 2016, GGI will be engaged in organizing induction training for the newly elected MPs. During the reporting year, GGI partnered with UNDP and NDI to support the Parliament in preparation for induction training for newly elected MPs. MP induction training draft program was sent to the Parliament Training Center for their comments and feedback. PTC proposed to arrange a discussion on the program and the action plan of the project. On September 3, GGI attended a meeting in the Parliamentary Training Center aimed at planning and preparing new MP induction trainings following the October 2020 elections. The lead trainers have been selected from the Parliamentary staff. The session on Parliamentary oversight will be led by the Rules and Procedure Committee’s Maka Tsulaia, while PBO’s Shorena Kakhidze will take up the budgetary process session. Together with UNDP, NDI, and the trainers GGI discussed a draft agenda and provided comments and feedback. The Training Center consolidated a final draft version and shared it with the participants. GGI plans to update (as needed) and print its handbooks on Oversight, PLS and Budgetary Process to be able to distribute the material to the new MPs during the induction trainings Separate trainings for the newly elected MPs will be delivered by Transparency International Georgia, the recipient of GGI grant on external assessment of parliaments oversight function discussed below in this section. Build Budget and Finance Committee capacity in conducting oversight In recent years, number of steps have been taken in the direction of improving the budget oversight by the Parliament. In 2016, GGI developed Budgetary Process and Oversight Handbook, which introduced and explained important steps of budgetary process and oversight mechanisms. During PY5, GGI hired and engaged a consultant to update the Budgetary Process and Oversight Handbook to reflect changes in the parliament’s new rules and procedures and latest state budget figures. During the first quarter of the reporting year, in close collaboration with the Budget and Finance Committee, the content and design or the handbook was finalized. During the reporting year, 300 copies of the Budget oversight handbook were printed. To further enhance committee’s oversight capacity, GGI engaged in supporting the committee to develop the financial oversight handbook. To this end, GGI identified Mikheil Skhiareli for the assignment. SoW was agreed with the expert. However due to the Covid 19 pandemic, the initiative was suspended. The work on the handbook development will start form the next FY. PMCG will hire a consultant, Mikleil Skhiereli. After the development and introduction of the handbook to the committee staff, the Committee financial & budget oversight workshop will be conducted for the newly elected MPs. As pandemic restrictions were eased in June, the committee resumed working process and held hearings of budget execution report for 2019. Auditor General presented opinion on budget execution to the committee in accordance with budget codex, budget calendar and rules and regulations of the Parliament. The committee also worked on the amendments to the state budget for 2020 necessitated by Covid 19 response and economic recession. GGI further intended to conduct public meetings in two regions and in Tbilisi to discuss 2019 state budget execution report drafted by GoG, but due to the pandemic outbreak the initiative was suspended. GGI re-engaged with the committee on the issue of holding online public discussion on the same topic. GGI started the pre-planning activities, however the Committee fell short of engaging in the undertaking. The committee also requested assistance in conducting the analyses of the Committees financial oversight function for NBG, Insurance Agency, MoF, etc; exploring international best practices and organizing Committee financial oversight workshop where the existing and international practices would be

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 53 presented. Due to the pandemic outbreak the work on the initiative is currently on hold. As soon as GGI expert Mikheil Skhiereli starts working on the committee’s financial oversight handbook development, the above-mentioned financial oversight functions will be analyzed together with international best practices. Finally, the committee financial oversight workshop will be conducted, where the financial oversight handbook, oversight functions of the committee and the international best practices will be discussed. Lastly, GGI intended to build capacity of the SAO working group with the Budget and Finance Committee which includes raising awareness on the SAO ARIS platform and selected SAO audit report hearings. During the reporting year, SAO sent a list of particularly important audit reports to the Working Group, based on which the WG meeting agendas would be drawn up, however the activity was suspended due to the pandemic. Therefore GGI and SAO plans to work with the finance and budget committee SAO working group from the next reporting year, after the new MPs will be elected in the parliament and in the committee. Assist Rules and Procedures Committee in revising and implementing Rules of Procedure (RoPs) During the reporting year, GGI engaged in supporting the Rules and Procedures Committee to revise the RoP document and assist the committees in implementing the new changes. GGI considered the oversight practices piloted in Parliament and recommended adjustments based on identified gaps. During the current reporting year, GGI actively engaged in the process of discussing the new RoP changes which took place during the Spring 2020 Session. GGI prepared and submitted its views on the advisable changes to the technical procedures in the current RoP including lengthening the timeframe for Thematic Inquires. The recommendation which was voiced at the first committee hearing by the former Vice Speaker of Parliament Tamar Chugoshvili was taken into consideration. GGI also reviewed the new draft RoP and actively followed the hearing on the draft at a committee and later at a plenary session. GGI also participated in a call with a former Vice Speaker Tamar Chugoshvili and heard her views on the document. The Parliament adopted amendments to the RoP by 89 votes on the third hearing during the Spring 2020 Parliamentary session. The initiators of the draft law took into account the majority of the recommendations from NGOs and opposition/independent MPs. GGI welcomed lengthening of the time-period limits for thematic inquiries which have provide insufficient in practice. According to the new RoP, the term of the thematic inquiry can be prolonged for additional one month. The total number of possible extensions is not more than 3 times for a single thematic inquiry, providing 6 months in total instead of previous limit of 3 months. Support external monitoring of parliamentary reforms and engagement mechanisms While supporting Parliament to establish viable oversight practices and processes, GGI will continue to assess parliamentary reforms and engagement mechanisms by supporting credible external CSO monitoring, as a tool to identify gaps, plan respective improvements, and define best outreach strategies. During the reporting year, GGI developed and published RFP in order to assess the implementation of the Parliamentary oversight functions as mandated by the revised Rules of Procedure of the Georgian Parliament adopted at the end of 2018. The grantee is expected to conduct a study assessing the implementation of the Parliamentary oversight functions as mandated by the Rules of Procedure of the Georgian Parliament adopted at the end of 2018. The study will encompass 4 Parliamentary sessions - the Spring and Fall sessions of 2019 and 2020 respectively. The study will include quantitative and qualitative assessment of the Georgian Parliament’s use of its oversight powers and tools as mandated by the new RoP and the effectiveness of the parliament’s oversight role to date. This includes collecting all relevant statistical data for the selected timeframe, as well as providing qualitative analysis of the process and outcomes, which includes procedures, as well as evaluation of the produced products and impact of the work overall.

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 54 In line with this, the study will evaluate Parliament’s strengths and weakness in implementation of its oversight functions, identify limitations and areas for improvement, and provide recommendations. As part of this assessment, the study should focus on the use of the new oversight tools in the Parliamentary Committees, such as Post Legislative Scrutiny and Thematic Inquiry, evaluating and contrasting the practices across the Committees, identifying merits and drawbacks in the process and providing recommendations rooted in the international best practices. Further, the grantee will develop and conduct training on Parliamentary oversight mechanisms delivered to the new convocation of the Georgian Parliament using the insights and recommendations identified as part of the study. Through competitive procedure, TI Georgia was awarded the grant. The grant has been launched and TI is actively engaged in the working process. The organization submitted its first deliverable - the workplan - which was approved by GGI. During the current reporting year, TI was engaged in desk research and collecting of statistical data pertinent to oversight from the Parliament. While the Fall 2020 session is still ongoing the data for the mentioned period will be requested at the end of September.

2.4.2 ACTIVITY 4.2: CONTINUE SUPPORTING THE INSTITUTIONAL DEVELOPMENT OF PARLIAMENTARY BUDGET OFFICE (PBO) Support PBO in building skills and capacity in fiscal/macro policy analysis Considering the role of the Parliamentary Budget Office (PBO) in the legislative process and fiscal/macro policy analysis, the use of computable models facilitates better analysis of the impact of specific policy measures, thus supporting improved decision making by the legislature. During PY5, GGI supported PBO in preparation of the background inputs for the development of Computable General Equilibrium (CGE) models for Georgian economic policy areas. Together with its macro-fiscal forecasting function as an Independent Fiscal Institution, Parliamentary Budget Office examines the cost estimates of the legislative initiatives and is involved in number of regulatory impact assessments for specific policy changes. Furthermore, PBO produces separate research publications on the impact of separate material reforms on the economy and policy papers on certain aspects of the PFM system. Results of CGE models are interpreted as showing the reaction of the economy in some future period to one or a few external shocks or policy changes, providing an opportunity to better assess the possible impact of specific policy measures on the economy. Thus, by building the CGE modelling capacity, PBO will be able to play a more important role in supporting the Parliament and relevant committees to engage in a more evidence-based decision- making and policy-formation processes. During the opening quarter of the current reporting year, GGI engaged international expert to review the necessary data/parameters and prepare national Input-Output (IO) Tables for Georgia that presents the inter-industrial flows of goods and services within the economy; Review and prepare training materials to conduct training on CGE modelling; Conduct the training for the PBO team on basics of CGE modelling and review and prepare necessary parameters/data and work with the PBO team to prepare a Social Accounting Matrix (SAM) for Georgia (a major input for CGE modelling), based on IO tables and household surveys. The expert also delivered workshop/training for PBO staff on CGE modelling, and the steps to be taken in developing CGE models creating in-house capacity for developing CGE models. Further, GGI had a discussion with PBO and the F&B committee, to review the next phase of expanding analytical capacity of PBO to support evidence-based policy formulation by conducting sound applied economic analyses for the committee by means of practical use of the CGE modeling. As a result of these discussions, PBO came up with several ideas on utilization of CGE modeling. It either can be tax increases or public expenditures increases or any other direction. Later, due to Covid 19 PBO made a decision to postpone the activity. GGI will re –engage in supporting the PBO in increasing fiscal/macro analysis capacity with a particular focus on COVID 19 impact

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 55 2.4.3 ACTIVITY 4.3: CONTINUE SUPPORTING THE INSTITUTIONAL DEVELOPMENT OF THE STATE AUDIT OFFICE (SAO) Supporting the SAO by providing the project management coaching within particular audit teams. During the PY5, GGI got engaged in supporting SAO PA department to conduct SME (Small and Medium Enterprises) state support program performance audit. To this end, GGI engaged local expert David Dasrvelidze for assignment. The objective of this assignment was to support the SAO performance auditors to carry out the impact assessment of the government activities directed to support SMEs in Georgia. In particular, the GGI expert in cooperation with auditors looked at the results of government interventions and measured to what extent have they brought sustainable benefits to SMEs and whether the assistance improved their competitiveness. Also, the audit aimed to examine value for money of those activities with possible directions to assess the dynamics of the SME growth, exports, etc. During the first quarter of the reporting year, GGI expert continued supporting the audit team. The expert elaborated appropriate research design and worked on development of the survey form, finalized the analysis of database and drafted key findings for the report. In addition, the expert provided training to PA team in qualitative and quantitative research methods. Continue supporting the SAO in further improving the Budget Monitor platform The SAO’s multiple award-winning, innovative platform Budget Monitor, developed with extensive GGI support, is a significant achievement with even greater potential for impact. During the reporting year, GIZ has been working on updating the platform. GGI intended to provide support to SAO in conducting awareness raising campaign on budget monitor platform after completion of platform update by GIZ. By the end of the reporting year, GIZ part was not finalized, hence, GGI assistance was postponed to the next reporting period. Support SAO in building the capacity of the staff during/after introduction and development of the impact assessment system of audit recommendations During PY5, GGI engaged Idea Design Group (IDG) to support SAO in development audit recommendation implementation system (ARIS) web platform. The task was finalized during the current reporting year. Further, SAO IT team was working on integration of ARIS within the Audit Management Software. The integration process proceeded with delays due to the Covid-19 pandemic but was finalized by the end of the reporting year. IT auditors are fine tuning the platform. During the upcoming reporting period, SAO plans to introduce the platform first to the MoJ and after to other GoG agencies. Continue supporting SAO staff participation in internationally recognized certificate courses and in the GAO’s International Audit Fellowship Program Based on the successful track record of last year’s SAO fellow, GGI plan considered to sponsor SAO auditor to participate in the Washington-based 2020 GAO fellowship program. During the reporting year, SAO nominated Nazi Chaganava on the 2020 IAFP program. GGI liaised with the home office and arranged all the necessary formalities for her participation in GAO fellowship. GGI signed fellowship participation agreement; the lease agreement was signed and security deposit was paid by the home office and Nazi Chaganava was supposed to depart to the US in March. However, GAO decided to cancel the 2020 International Auditor Fellowship Program due to the health risks associated with COVID-19 outbreak. During the reporting year, the SAO also provided a list of the certified training courses and asked GGI support for auditors’ participation. The list consist of 14 different courses: (Project Management Professional (PMP); Certified Associate in Project Management (CAPM); Microsoft Certified Professional; Intermediate Data Science: Python; ACCA Certification; certified Public Accountant (CPA); Certified

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 56 Fraud Examiner (CFE); Certified Government Auditing Professional (CGAP); Certified Information Security Manager (CISM); Certified Information Systems Auditor (CISA); Certified Internal Auditor (CIA); Certified Government Auditing Professional (CGAP); Certification in Risk Management Assurance (CRMA); Chartered Financial Analyst (CFA)). SAO also provided a list of the fifteen auditors expected to be registered on the certified courses and projected budget of USD 6250. Due to the Covid-19 pandemic, SAO decided to focus on the ACCA courses, because the exams take place locally as opposed to other courses. During the reporting year, – SAA Auditor Ekaterine Jalaghania successfully competed of Association of Chartered Certificate Accountants (ACCA) exams: Book F4 – Georgian Business Law; Book F5 - Managing the results of activities; Book F6 – Taxation; Book F7 – Financial Reporting; Book F8 - Audit and assurance services. SAO/PAI fellowship At the beginning of the reporting year, fellowship term was prolonged for one fellow who was hired during PY5. Per SAO request, GGI hired four fellows for a six-month period at SAO strategic & budget analyses and IT audit units. During the reporting year, GGI posted public announcements and conducted test exams and interviews with potential candidates. As a result, SAO hired Tsotne Gamsakhurdashvili at the IT audit unit. However, due to the COVID-19 outbreak the SAO has shifted to remote work and delayed the start date for the fellow. The fellow was hired after restrictions were lifted.. Further, GGI hired Mariam Benidze to support the same IT audit department. Salome Malidze and Paata Nozadze were hired to support strategic & budget analyses department. Due to a shortage of auditors, the SAO planned to provide fellows with an audit certification training course with an intention to hire successful candidates after the fellowship period expires, however due to pandemic restriction this was not possible. Two fellows were hired for PAI. Girogi Mgeladze and Sopio Narimanidze perfomed duties of administrative assistant and social media specialist. Continue supporting SAO in providing the IPSAS trainings During PY5, GGI engaged the local IPSAS trainer to train select financial auditors in SAO Tbilisi and Kutaisi offices. Due to the auditors’ workload in the summer period and summer vacations, SAO decided to start the IPSAS trainings from Oct-2019. During the first quarter of the reporting year, IPSAS trainer Liana Nadibaidze delivered the training for SAO auditors in Tbilisi at SAO premises from October 21 to November 18. Trainings for Kutaisi auditors were held from November 18 to 25. In total 37 auditors were trained. In line with the MoF State Treasury’s goal to achieve full compliance with IPSAS by 2020, GGI continued facilitating IPSAS training for SAO financial auditors. During the reporting year, GGI supported SAO to organize IPSAS workshop for SAO auditors. Workshop was conducted at the Lopota Lake Resort on March 7 and 8, 2020. The objective of the workshop was to discuss the new Accounting Plan (approved this year) of the budget organizations along with the instructions being currently developed. Due to the pandemic, the second phase training of the SAO auditors started online at the end of March using online platform “Zoom”. The training period lasted from March 26 to April 10, 2020, and the exam took place on April 14. Twenty SAO auditors were engaged in the training. Continue supporting PAI in enhancing the recently developed website GGI will continue to support PAI in adding increased functionality to its website, which was developed with GGI assistance. During the reporting year, PAI tested the recently developed website. GGI discussed with PAI technical and timing details of GGI support. It was agreed that PAI will develop a detailed scope which will be used by GGI to develop RFP to employ IT service to add functionality to the PAI website during the next reporting period. Support the PAI in developing the e-learning platform

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 57 PAI requested GGI to support in development of the e-learning platform to increase the coverage and outreach to the regions. The need for e-learning platform development became more evident and urgent in light of the COVID-19 outbreak. GGI intended to engage short-term technical expertise to develop an e-learning platform for PAI, however as SAO and PAI staff were not present at office due pandemic, the activity was postponed to the next reporting period. Continue supporting PAI in implementing communication strategy and action plan During PY5, GGI received request from SAO to translate the best practice performance audit articles from the international supreme audit institutions and publish on the State Audit Office (SAO) Performance Audit Blog to increase awareness and importance of the Performance Audit among Georgian society. The objective of this task is sharing international experience in terms of communicating performance audits with the public and raising general awareness and knowledge on audit institutions. Accessibility of the materials posted on the blogs of international supreme audit institutes to Georgian society is supposed to improve the understanding of the importance of Performance Audits. In this respect, SAO has particularly been examining best practices of the U.S. Government Accountability Office (GAO) and the National Audit Office of the United Kingdom (NAO). The respective audit services of these countries run blogs that contain analysis on the Performance Audits conducted by them in fields of education, healthcare, security, food safety, etc. GGI hired a local consultant to translate the appropriate articles related to performance audit to be published on the State Audit Office (SAO) Performance Audit Blog. During the first quarter of the reporting year, the consultant translated and edited 14 articles suggested by SAO. The articles were uploaded to performance audit blog. During PY5, per request from the side of PAI leadership, GGI engaged local company PMO to support SAO in developing a communication strategy. PMO submitted a detailed methodology for developing the communication strategy and actions plan and needs assessment report. PMO also conducted the workshop with PAI and SAO management and developed a draft communication strategy and action plan. At the beginning of the current reporting year, following a series of consultations with PAI and SAO leadership, PMO finalized the communication strategy and action plan covering communication goals, objectives and respective approaches as well as target audience features and communication channels. The document also contains analysis of PAI macro environment, its competitive advantages and provides recommendation for re-branding PAI as well as respective communication budget estimates. Communication strategy is accompanied by Action Plan and Monitoring and Evaluation Plan. The strategy and action plan were presented to AG and SAO management. At SAO request, GGI expanded its contract with PMO to include re-branding of PAI in accordance with recommendations. Under modified contract, PMO worked on developing a new logo for the institute and PAI brand book. PMO presented several versions of the logo and designs which were discussed within PAI and with SAO management. SAO postponed the brand book development and selected a logo developed by another company. GGI intended to support PAI in printing branding materials and in outreach campaign to increase awareness of the institute and its services among public sector as well as private sector stakeholders. However, due to COVID outbreak, the activity was suspended. During the reporting year, GGI agreed with PAI on three directions of the staff capacity building. These are: training in proposal writing, ToT, and coaching of the new PAI trainers in test development. GGI prepared SoWs for all three assignments in close collaboration with PAI. PAI communicated to GGI that their immediate urgent need in training is to improve skills for academic writing for SAO auditors. PAI also suggested a candidate they deem qualified for the assignment. However, due to pandemic emergency, these activities were suspended. Support PAI in developing the audit certification training course manual, compliance with ISO 9001:2015 standards – quality assurance, and developing monitoring and evaluation (M&E) guidelines for the certified auditors’ performance

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 58 During the reporting year, GGI got involved in supporting PAI in developing audit certification course manual. This is one of the main and exclusive training courses for SAO, which includes financial, compliance and performance audits. Current practice is that trainers are using their own handouts and there is no standardized approach to delivering knowledge and assessment of performance. GGI drafted SoW for developing the audit certification course manual. Local STTA Giorgi Alasania drafted a situational analysis of the Auditors Certification Course curriculum which was discussed with PAI. Situational analysis suggested that certification course manuals for FA CA and PA can be based on existing SAO audit methodologies. However, they need to be adapted to textbook format to make them more reader- friendly. As for certification course manuals for Budgetary Laws and IPSAS, they should be developed as no body texts are used in current practice. Further the consultant developed the draft outline for the course manuals considering ACCA and CFA textbooks as a model. After reaching agreement on the draft outline, the work on the course manuals commenced. To support the development of the manuals, the PAI provided the consultant with the support of task forces for each of the modules. Four different task forces extensively worked to adapt the SAO manuals to course objectives and develop manuals. The consultant has developed and considering comments from PAI finalized course manuals for Financial Audit, Compliance Audit, Performance Audit and Budgetary Law. Final products were presented to PAI management. In consultation with PAI, decision was made to hire another consultant specialized for developing manual for IPSAS. GGI drafted SoW and contracted local STTA Liana Nadibaidze for the assignment. In close collaboration with trainers and specialists from the State Audit Office and the PAI, the consultant developed a syllabus and manual for the IPSAS Standards Study Program. The consultant also presented the main requirements of each IPSAS standard and exceptions offered by the instruction of the Ministry of Finance in relation to introduction of IPSAS. The requirements of each standard were summarized so that the certificate applicant can easily understand what the requirements of the standard are, and will facilitate overcoming the complex professional language of the standard. The text also includes examples to help the student better understand the requirements of the standard and multiple-choice questions for self-examination. Since the introduction of the PAI’s certification mandate the PAI has never had a mandate to monitor the audit quality of those certified. There is no follow-up mechanism over the compliance of the performed audit procedures with the auditing standards. Neither quantitative nor qualitative data is available with respect to audit services rendered by certified independent auditors to public entities. More generally, effectiveness of the certification system and the impact of regulation over the quality of audit services in public sector is unknown. To address this gap and enable the PAI fully perform its regulatory role, GGI supported PAI to introduce the mandate to monitor the quality of the audit services performed by the certified professionals. Local STTA Giorgi Alasania was selected for assignment. PAI supported this candidate as they consider the candidate to have excellent knowledge of PAI and SAO practices which is crucial for this assignment. After document review and legal analysis of the existing regulatory framework, including international good practices such as International Organization of Supreme Audit Institutions (INTOSAI) Self-Assessing Independence Performance Measurement Framework (SAI PMF), as well as series of interviews including with PAI staff and a representative of the Service for Accounting, Reporting and Auditing Supervision (SARAS) which is the regulatory public agency to oversee the audit quality in private sector, the consultant prepared draft situational analysis outlining the need to strengthen legal mandate of PAI and to develop monitoring rules and methodology. To entitle with PAI the necessary powers, the mandate to monitor certified independent auditors should be reflected in the Organic Law on the State Audit Office of Georgia. While the early draft existed before, the consultant added a few legal provisions and elaborated the mandatory explanatory note for the draft legal amendments which includes the legal right of the PAI to sanction those noncompliant with the

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 59 auditing standards. The sanctions include the issuance of warnings and the right of PAI to annul the certificate. The consultant developed the monitoring methodology, which will guide the PAI staff to assess the quality of audit services. The methodology covers three types of audits (Financial Audit (FA), Compliance Audit (CA)?, Performance Audit (PA)) and is based on SAI PMF methodology. Indicators for each type of audit is grouped around the stages of audit such as audit planning, gathering audit evidence, and reporting. For each type of audit indicators contain up to 30 assessment criteria scattered across these stages. The criteria are based on International Standards of Supreme Audit Institutions (ISSAIs) and assess the professional judgements applied by the auditors in auditing including the application of materiality, risk assessment, ethical considerations etc. The Monitoring Methodology also contains annexes in MS excel format to support the application of criteria in compliance assessment and subsequent scoring. The consultant held a two-day session to present and discuss the project deliverables to the PAI management. During the session the contractor explained the logic and content of the monitoring system and the evaluation methodology. Based on feedback from PAI management as well as from involved SAO staff, the consultant finalized the documents. GGI also intended to support PAI to improve compliance with ISO 9001:2015 standards quality assurance. During the reporting year, GGI discussed the issue with PAI. However, the activity was postponed to the next reporting period.

2.4.4 ACTIVITY 4.4: CONTINUE SUPPORTING COUNTERPART PICD AND MUNICIPALITIES IN BUILDING INTERNAL AUDITING CAPACITY • Support Public Internal Control Department (PICD) GGI has contributed significantly to Public Internal Control Department (PICD) coordination and methodological support for internal audits at central and local levels. During the reporting year, upon request from PICD, GGI supported PICD in developing a mid-term strategy (2020-2023), action plan for 2020-2021, and monitoring and evaluation (M&E) plan. GGI STTA Giorgi Tsimitia coached the PICD team in developing the strategic documents. The PICD team drafted the strategic and action plans, as well as monitoring & evaluation plan. As soon as the strategy and action plan are approved by GoG the presentation will be delivered to stakeholders. During the reporting year, GGI also supported PICD to develop PICD Internal Audit Quality assurance instructions for public auditors. GGI STTA Grigor Basheleishvili held a number of online meetings PICD and developed Internal Audit Quality assurance instructions for public auditors, which was accepted by PICD leadership. GGI and PICD also agreed to engage in translation, printing and adaptation of International Professional Practices Framework (IPPF) implementation guidelines to Georgian legislation. These guidelines need to be translated and reviewed in order to comply with the Georgian law on PIFC and Internal Audit standards. It was agreed to combine tasks in one SoW: the translation, editing/proofreading of the text and adaptation of the translated version to the Georgian law on PIFC and Internal Audit standards. The project was postponed to the next reporting period. During the current reporting year, GGI also agreed with PICD to extend fellowship term for Ketevan Kardava till the end of July. She was supposed to be offered permanent job at PICD, however due to the pandemic and later due to the changes in the ministry plans, the expectation was not realized. Taking into account that her skills and contribution is highly valued and her continued engagement are important for the overall work of PICD, GGI accepted the request. Support Batumi in Building Internal Auditing Capacity

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 60 During PY5, following the request from partner agencies, GGI engaged local expert to support partner agencies’ IA units, to address several important challenges. During the first quarter of the reporting year, the expert met with Batumi and SSA internal auditors, presented the working plan and collected information. The expert also had discussion with Batumi IA head together with GGI team. In October, the expert worked on an assessment of the internal audit functions in Batumi IA unit and evaluation of the completed internal audit assignments using internal audit object and appropriate questionnaires and drafted the assessment report. In addition, GGI expert delivered one day capacity building training to Batumi internal auditors focusing on internal audit quality assurance requirements according to local and international internal audit standards, on how to conduct internal assessment of quality, preparing appropriate quality control template for conducting efficient quality assessment internally and elaborating internal audit key performance indicators. Further the expert elaborated internal audit quality assurance instruction and submitted to Batumi Municipality for their review. At the same time the expert developed internal audit quality assurance instruction for SSA internal audit team. Feedback on instructions was received from both partner agencies. The expert has finalized instructions based on received feedback During PY5, GGI together with Batumi municipality audit team, started the fifth performance audit performed by Batumi PA team with GGI mentoring. Municipal healthcare programs performance audit, was finalized during current reporting year. After developing risks and control matrix for each subprogram of the healthcare program, IA team started implementation of the audit and continued with drafting findings. The team received feedback from GGI and finalized the PA report. During the audit process Batumi internal auditors acquired valuable experience and skills from this performance audit. During the current reporting year, Batumi Internal Audit team, with GGI supervision started Performance Audit of the municipal property management unit. It was agreed to limit the scope to audit of property management strategy and execution. The work started with the planning phase. The team developed draft audit design matrix and shared with GGI for review. Due to health risks associated with the pandemic, the work was done remotely and collection of information went rather slowly. By the mid-June, the design matrix was finalized. At the same time, PICD eased the pandemic restrictions, resumed normal mode of operation and the audit team performed actual audit procedures. Further, the audit team developed a final audit report which was approved in September. GGI staff was actively involved in the Audit process by coaching the Batumi internal auditors. In addition, GGI intended to support Batumi Internal Audit Unit in developing of Internal Audit Risk Management Instructions. GGI developed SoW to hire a local STTA for assignment. However, the project was postponed to the next reporting period.

3.0 ACTUAL ACHIEVEMENTS VS PLANNED ACTIVITIES

The government delayed further application of CSL on LEPLs by postponing adoption of the new regulation for LEPLs, which requires a political decision. CSB needs to extend transitional period for LEPLs, as without their categorization, it is not realistic to decide which LEPLs should fall under the Civil Service Law. In December, IDG and MRDI presented the new web page to key internal and external stakeholders. During consultations, stakeholders expressed comments related to the platform. Additionally, the deputy minster suggested to add certain elements that would make the PMP a more efficient management tool, including its links to the State Treasury. MRDI requested GGI’s assistance to finalize the tool compliant to its requirements. In consultation with USAID, GGI extended a contract to IDG to consider all issues

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 61 identified during the consultation process. Activity was finalized during the last quarter of the reporting year. GGI planned to start providing support to ACC Secretariat to effectively promote Anti-Corruption policies nationwide early during the year. Due to the change of the leadership and in general, relatively passive approach of the ACC secretariat the process has been delayed. The situation with COVID 19 caused changes of the priorities within the MoIDPLHSA and further delayed the Housing Strategy development process. During reporting year, GGI STTA has developed draft guidelines on public consultations. Considering comments and remarks of AoG, guideline was enriched with matchings with relevant components of policy making cycle, checklists, training materials and etc. Due to outbreak of COVID 19 and situation on the ground, discussions with stakeholders and finalization of the document was delayed until after elections. GGI planned to provide MoF with recommendations to improve the revenue sharing formula once the MoF express readiness for launching the process. However, at this point, the MoF works on the assessment of the VAT sharing mechanism that was recently introduced in Georgia and that will guide to identification of further revenue sharing need among central and local governments. GGI planned to support the MoF and MRDI to conduct feasibility studies on PPP potential in select municipalities with the goal to generalize findings on the willingness, capacity and readiness at the local level to implement PPP projects. The activity is considered under the decentralization strategy action plan. Per request of MRDI, GGI had to delay the launch of the project due to some confusions in the existing PPP legislation subject to improvement. During the reporting year, per request from MRDI, GGI made decision to support MRDI and partner municipality of Batumi to enhance capacity of municipal servants in management of municipal property and legal entities. Due to situation with COVID-19 and contracting delays, an activity was postponed for the next PY. Development of final report on functional analysis of A.R.s of Abkhazia was delayed due to COVID outbreak, as CSB was not able to conduct interviews and FGDs with representatives of government and ministries of respective Autonomous Republic. As for the report on FA of A.R. of Adjara, it was finalized and sent to government agencies for their feedback. GGI planned to support the MoF and MRDI to conduct feasibility studies on PPP potential in select municipalities with the goal to generalize findings on the willingness, capacity and readiness at the local level to implement PPP projects. The activity is considered under the decentralization strategy action plan. Per request of MRDI, GGI had to delay the launch of the project due to some confusions in the existing PPP legislation subject to improvement. GGI planned to finalize Building Integrity and Transparency Strategy and Action Plan of Gori City Hall in PY5, nevertheless passive stance of the Gori City Hall at the inception phase delayed the process. Strategy and Action Plan development process has been accelerated after a personal involvement of the Mayor. The Building Integrity and Transparency strategy and Action Plan of Gori City Hall will be finalized and approved in the first quarter of PY6. Building Integrity and Transparency trainings for Lagodekhi, Telavi, Senaki and Zugdidi municipal staff were delayed due to aggravated COVID situation. GGI developed the OGP training module together. GGI also planned to conduct OGP trainings for the municipal staff, however due the complications created by the pandemic, trainings have been postponed to a later stage.

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 62 GGI through involvement of its local STTA developed a training module together with training agenda, material and manual to effectively and adequately communicate with PWDs. GGI planned to conduct trainings for the staff of Kutaisi and Batumi city halls earlier during the year. Unfortunately, due to the coronavirus outbreak, the above-mentioned trainings were postponed. Activity was finalized during the closing quarter of the reporting year. GGI planned to get actively involved in OGP Council/Forum activities and provide support to OGP Secretariat of Georgia in this direction. However due to pandemic OGP Council/Forum activities have been postponed. GGI planned to finalize full transfer of the VOLIS from Estonian side to the Georgian side. Nevertheless the process has been protracted. Georgian side was granted an access to all VOLIS related data; all details of VOLIS transfer have been agreed between DGA and Estonian exerts and contracting process of Estonian exerts has been started. GGI planned to start development of the Service Delivery Index portal however the process was delayed since the approval of Public Service Delivery Index Concept and Methodology has been postponed due to the transition of the new leadership and competing priorities. GGI planned to support Akhaltsikhe City Hall to implement Building Integrity and Transparency Action Plan. However due to the pandemic, priorities of the Akhaltsikhe City Hall has been changed that affected implementation pace of the BI and Transparency Action Plan. GGI planned to support Kutaisi and Akhaltsikhe City Halls to implement their respective Open Data Action Plan. However due to the pandemic, priorities of the City Halls have been changed that affected implementation pace of the Open Data Action Plans. GGI planned to support AoG to improve effectiveness and usage of the government electronic portal ichange.gov.ge. However the decision to decrease required signatures from 10,000 to 5,000 has not been taken formally by the government of Georgia yet. Similar to previous years, GGI planned to support earlier MoJ, currently AoG to increase public understanding of the freedom of information. However, legislative package on FOI remains within the government and has not been submitted to the Parliament. The publication of a Thematic Inquiry on Intermittent Vehicle Inspection supported by GGI in the European Integration Committee was delayed due to COVID-19 pandemic. The Committee is expecting comments from the Ministry of Internal Affairs, which is one of the lead Ministries managing the pandemic. The final presentation of the Health Program oversight matrixes which was developed with GGI support was held later than planned due to the resignation of the Healthcare Committee Chair, who was directly engaged in the process. GGI experienced further delays due to pandemic. The initiation of a draft law based on the recommendations developed with GGI’s assistance on the law on medicine and pharmaceutical activities was postponed due to the resignation of the Healthcare Committee Chair. Presentations of final GIA reports at the International Women’s day were postponed due to the outbreak of the pandemic. The initiation of a draft law on green lines was postponed due to the departure of the Environment Committee Chair who was moved to the Vice Speaker’s position. Strategic retreat for the Parliamentary committee chairs was postponed, due to Coronavirus restrictions.

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 63 Due to coronavirus pandemic GGI experience initial slowdown in the data migration process necessary for the launch of the new website. Due to coronavirus pandemic, Open Parliament consultation group working meeting was held with a significant delay. Coronavirus restrictions have significantly affected the planning process of the Parliamentary Research Centre activities. This is particularly pertinent to the study tour which has been postponed indefinitely. Development of PAI brand book and printing branding materials was postponed to the next reporting period. Only one auditor from the list of 15 auditors registered for international certification courses provided by SAO passed the exams during the reporting year. Public meetings in two regions and in Tbilisi to discuss 2019 state budget execution report drafted by GoG was cancelled due to pandemic restrictions. SAO audit report hearings within SAO working group of the Budget and Finance Committee were suspended due to pandemic restrictions. GGI planned to support expanding of analytical capacity of PBO to support evidence-based policy formulation by conducting sound applied economic analyses by means of practical use of the CGE modeling. Due to pandemic restrictions, PBO postponed practical use of the CGE modeling. GGI intended to provide support to SAO in conducting awareness raising campaign on budget monitor platform after completion of platform update by GIZ. By the end of the reporting year, GIZ part was not finalized, hence, GGI assistance was postponed to the next reporting period. GGI intended to support PAI to add functionality to PAI website, however activity was postponed to the next reporting period.

GGI planned to support capacity building of PAI staff through professional education programs, training of trainers, tests, development trainings, grant proposal writing, etc. The activity was postponed to the next reporting period. GGI intended to support PAI in developing of PAI e-learning platform. The activity was postponed to the next reporting period. GGI also intended to support PAI to improve compliance with ISO 9001:2015 standards quality assurance. During the reporting year, GGI discussed the issue with PAI. However, the activity was postponed to the next reporting period. During the reporting year, GGI and PICD agreed to engage in translation, printing and adaptation of International Professional Practices Framework (IPPF) implementation guidelines to Georgian legislation. However, the activity was postponed to the next reporting period. GGI intended to support Batumi Internal Audit Unit in developing of Internal Audit Risk Management Instructions. GGI developed SoW to hire a local STTA for assignment. However, the project was postponed to the next reporting period. Due to the COVID-19 pandemic, GGI refocused its attention to immediate response and issued two grants and contracted two local and two international STTAs in this direction. These activities were not considered under GGI’s initial work plan.

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 64 - GGI awarded GYLA with a grant to produce a governance case study on the operation of the Government of Georgia (GoG) under the emergency rule aimed at assessing the government's response and providing recommendations for improvement. - GGI also awarded EPRC with a grant to support the GoG in mitigating the impact of the COVID- 19 pandemic by promoting inclusive and evidence-based governance in key policy areas. - GGI got engaged in supporting CSB to analyse issues and challenges identified in public agencies during crisis (including violation of civil servant’s rights during crisis), and create guidelines for the reference of civil servants during crisis. These guidelines are deemed to provide specific instructions to the civil servants on managerial positions on how to act in response to the needs of civil service during the crisis management in civil service organizations and ensure an uninterrupted functioning of civil service. - GGI supports AoG to organize research around following two directions: legal system of crisis management and crisis management and governance. Reports and recommendations developed by GGI consultants will be unified into comprehensive survey. - GGI responded to a request from the Parliament of Georgia and purchased 12 Webex licenses for Parliament as immediate assistance provided following the COVID-19 pandemic, which heightened the need for secure and reliable remote communication tools.

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 65 4.0 SIGNIFICANT RESULTS ACHIEVED DURING THE REPORTING YEAR

Result 1: Improved Administrative and Financial Management of Public Institutions at All Levels

• ISET developed policy alternatives for Housing Policy Document; Local STTA Ioseb Salukvadze prepared brief analysis of 28 European countries and detailed analysis of housing policy in Slovakia and North Macedonia

• GGI supported Leadership Academy for Development (LAD) workshop in Georgia in public policy development for the mid-career government officials, CSO’s and business leaders organized by Center for Democracy, Development and the Rule of Law (CDDRL) of Stanford University and EPRC. Workshop was held on November 4-8, 2019

• On the 17th of January 2020 GoG has approved Decree on RIA Methodology. Normative part of the Decree developed by EU legal expert was based on RIA Methodology elaborated by USAID GGI’s contractor ISET.

• On-line RIA training was delivered to 12 representatives of select central government agencies. • 150 copies of report on external aid to Georgia were printed • Study on delegating specific functions such as museums and theatres, primary healthcare social protection to the local governments was conducted.

• IMC guideline, together with sample regulatory acts and financing formula was developed. • Risk Management Methodology for Batumi municipal programs was developed in line with the methodological manual approved by the Minister of Finance with the Decree N644

• GGI’s local STTA Irakli Gvenetadze with support from GGI’s international STTA expert Morten Nielsen developed draft Service Delivery Index Concept and methodology taking into account best international practices and experience.

• Open data concept that will ensure continuous provision of information in an open data format to the residents of Batumi municipality and all interested groups was developed.

• Daft project on adapting administrative building of Akhaltsikhe City Hall to the needs of people with all abilities was developed including tendering documents and price calculations.

• 11 public investment projects were analysed, improved submitted with draft Budget law. • Fiscal Risk Assessment report was developed covering financial turnover of the 80% of the state enterprise out of which 40% (6 major SEs) has also undergone sensitivity analysis following IMF methodology.

• Internal regulations of CSB regarding personal data protection were elaborated. • GGI supported CSB in organizing HR forum which was planned in the format of public-private dialogue, HR Forum hosted up to 110 HRMs representing ministries, LEPLs, municipalities and more than 30 HRM from private organizations.

• Map of the Government of Georgia was developed for CSB needs.

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 66 • Ms. Judy England Joseph conducted Masterclass in strategic leadership for high and mid-level officials. • ToT on Adults Learning Methodology was conducted for 14 trainers. • Draft Guideline for public consultations equipped with quality oversight instruments, required by OECD recommendations has been developed with GGI support and translated into English.

• CSB new website adjusted to the needs of people with disabilities is up and running • CSB finalized report on Functional and Institutional Analysis (FIA) of autonomous republic of Adjara. • MRDI web platform and PMP phase I was finalized • VOLIS transferring process to the Georgian side has been launched. • 500 copies of export catalogue of Imereti region were printed • OGP training module, curriculum and training material package for two full day training for the local government staff from selected municipalities have been developed.

• Report on water policy models has been finalized, submitted and accepted by the MRDI. • GoG approved PPP methodology prepared with GGI assistance and PPP training was delivered to MoF staff

• Series of on-line trainings on PPP Methodology was delivered to the staff of different ministries in cooperation with ADB

• Guideline for GCCA 32 for Government entities developed and accepted by the MoF. • Public consultation guidelines were developed • Guidelines on decentralization of services/competences in the field of agriculture were developed • Guidelines on decentralization of services in the field of environment protection were developed • MRDI PMP platform and corresponding manual were finalized • 110 representatives of target municipalities were trained for effective communication with persons with disabilities (PwDs).

• e-BTPS communication strategy and action plan has been developed and accepted by the MoF. • Initial daft priority documents were developed by municipalities of Akhaltsikhe, Kutaisi, Batumi, Dedoplistskaro and Dusheti in compliance with new program budget methodology.

• Reports of PFM assessment based on PEFA indicators and assessment of Gender Responsive PFM were developed for municipalities of Akhaltsikhe, Ozurgeti, Zugdidi, Telavi and Gori.

• Participatory budgeting process for FY 2020 was finalized in Akhaltsikhe and 5 winning projects were selected.

• Participatory budgeting process for FY 2020 was finalized in Kutaisi and 3 winning projects were selected.

• Participatory budgeting process for FY 2020 was finalized in Batumi and 2 winning projects were selected.

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 67 • Robust public communication campaigns have been carried out in Akhaltsike, Batumi, Kutaisi, Lanckhuti and Ambrolauri in support of the FY2021 Participatory Budgeting. Result 2: Increased civic engagement and improved access to independent reliable and balanced information relevant to Georgia’s good governance.

• GoG has approved National Anti-Corruption Strategy and Action Plan for 2019-2020, which was developed and approved by ACC with GGI support. National Anti-Corruption Action Plan for 2019- 2020 incudes commitments initiated by the GGI.

• GGI supported OGP secretariat to organize awareness raising activities on Anti-Corruption Policy of Georgia for the LG representatives and students in Batumi.

• Tbilisi City Hall approved Building Integrity and Transparency Strategy and Action Plan developed with GGI’s support through its subcontractor GYLA. Followed by capacity building activities for the employees of Tbilisi City Hall System.

• Situational Analysis on Building Integrity and Transparency in Gori, Lagodekhi, Ozurgeti, Senaki, Telavi and Zugdidi Municipalities were carried out and individual situational analysis reports have been prepared together with set of recommendations.

• Building Integrity and Transparency Strategy/AP together with implementation monitoring methodology has been approved by the decree of the Mayor of Telavi.

• Building Integrity and Transparency Strategy/AP together with implementation monitoring methodology has been approved by the decree of the Mayor of Lagodekhi.

• Building Integrity and Transparency Strategy/AP together with implementation monitoring methodology has been developed for municipality of Senaki.

• Building Integrity and Transparency Strategy/AP together with implementation monitoring methodology has been developed for municipality of Zugdidi.

• Ozurgeti Sakrebulo approved Monitoring Framework of Building Integrity and transparency Strategy and Action Plan prepared with GGI assistance.

• IDFI developed training module/materials on Open Data management and organized capacity building activities for the employees of Akhaltsikhe and Kutaisi municipalities.

• Open Data Manual tailored to the needs of municipalities (Gori, Lagodekhi, Ozurgeti, Senaki, Telavi Zugdidi) was prepared.

• GGI supported IDFI to organize 2-day international conference - Good Governance Forum (GG Forum) on November 29-30, 2019. GGI moderated opening panel of the forum on “Anti-Corruption Institution and Mechanism for Fighting Corruption”.

• GGI supported OGP secretariat of Georgia to organize OGP Forum meeting in December 2019. • OGP Council with participation of deputy ministers has been formally established on February 13, 2020. Statute of the Council includes most of the GGI’s suggestions.

• In frame of Open Gov. Week / Open Response + Open Recovery Digital Forum, GGI hosted three online discussions.

• 2020-2021 OGP NAP commitment ideas for Akhaltsikhe, Kutaisi and Batumi municipalities were developed and shared with the above mentioned municipalities.

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 68 • Akhaltsikhe, Ozurgeti, Batumi, municipalities submitted their applications to OGP Local Cohort program with support of OGP Secretariat Georgia and GGI. Akhaltsikhe and Ozurgeti have been selected for the final stage. GGI together with OGP Secretariat Georgia provided support the Akhaltsikhe and Ozugeti to prepare and submit their final applications.

• OGP Communication Strategy and Action Plan were developed with GGI assistance and accepted by AoG.

• OGP web-page has been developed with GGI’s support. • Workshop for the State Inspector’s Office staff (around 30) with the goal to strengthen capacity and internal coordination with particular focus on personal data protection was held on December 8-9, 2019.

• Methodology aimed at improving FoI related business processes at the PDO’s office was developed with GGI support and accepted by the PDO.

• Report on survey to identify challenges related to the access to public information in terms of existing practices of public agencies as well as courts was developed with GGI assistance and accepted by PDO.

• Case study illustrating practical examples of personal data protection/violation in health and juvenile issues was developed with GGI assistance

Result 3: Strengthened policy development and law-making processes.

• E-learning portal course methodology document was adopted by the Parliamentary training center, which details recommended structure, content and management of the online modules

• Five GIA report drafts were finalized with GGI support. • An e-library concept paper was developed for Parliamentary Research Center • A thematic inquiry process on “Arts education Practices” was successfully completed despite significant delays encountered due to the Coronavirus restrictions

• Parliamentary oversight page was developed and integrated into Parliament’s new website • IT audit of the Parliament’s IT department was conducted • Recommendations on updating the law on pharmaceutical activities were prepared • Thematic Inquiry report on disinformation was presented to a wide audience • Despite the pandemic, GGI managed to maintain the legislative fellowship program by moving the fellows to remote work and monitoring their work progress and achievements;

• GGI participated in developing ideas for 2020-2021 OGP action plan; • GGI in collaboration with UNDP equipped parliament with 25 Webex licenses which was crucially needed for remote communication.

Result 4: Strengthened institutional oversight of the government.

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 69 • Budgetary Process and Oversight Handbook was updated reflecting requirements of the parliament’s new rules and procedures and latest state budget figures.

• State program on Universal Healthcare and the State Program for Provision of Medicine for Treatment of Chronic Diseases were evaluated by means a unique evaluation matrix developed with GGI’s assistance

• The European Integration Committee held thematic Inquiry hearings and developed a report on Intermittent Vehicle Technical Inspection which was supported by GGI • A Thematic Inquiry report on disinformation was drafted and presented at a Foreign Relations Committee hearing by MP Nino Goguadze

• Sectoral Economy and Economic Policy Committee was supported to develop a thematic report on the law of Georgia on Public Private Partnerships Thematic Report was finalized and presented by MP Nino Tsilosani

• 300 copies of the Budget oversight handbook were printed; • Healthcare Committee Program Evaluation Matrix final presentation was conducted and a software company was recruited to create an electronic dashboard;

• A GGI proposal on the necessary changes to the duration of Thematic Inquires, envisioned in the RoP was considered and adopted;

• Parliamentary Oversight Grant was awarded; • Education Committee Thematic Inquiry on pre-school education was launched; • Environmental committee formally approved PLS report on taxation of electric vehicles and formally presented the final document. 100 copies of the report were printed by GGI.

• 100 copies of a thematic inquiry process on the “Arts Education Practices in General Education Institutions” were printed with GGI support.

• Budgetary Process and Oversight Handbook was updated reflecting requirements of the parliament’s new rules and procedures and latest state budget figures.

• IO tables as well as social accounting matrix was elaborated for PBO needs and PBO staff was trained in CGE modelling. • audit recommendation implementation system (ARIS) web platform was developed and finalized, • SAO website was developed • PAI website was developed • 37 SAO auditors enhanced capacity to use International Public Sector Accounting Standards. • SME support program performance audit was finalized by SAO PA department. • With GGI support, 14 articles were published on SAO performance audit blog to increase awareness and importance of the Performance Audit among Georgian society.

• PAI communication strategy and action plan were finalized covering communication goals, objectives and respective approaches as well as target audience features and communication channels. The

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 70 document also contains analysis of PAI macro environment, its competitive advantages and provides recommendation for re-branding PAI as well as respective communication budget estimates.

• Public Audit Institute was supported in re-branding including development of new logo. • Batumi PA team with GGI mentoring, finalized municipal healthcare programs performance audit, after developing risks and control matrix for each subprogram of the healthcare program,

• Internal audit quality assurance instruction was developed for Batumi Municipality and SSA. Batumi municipality IA unit also was provided with respective training.

• With GGI support, SAO organized IPSAS workshop for auditors. Workshop was conducted at the Lopota Lake Resort on March 7-8th. The objective of the workshop was to discuss the new Accounting Plan (approved this year) of the budget organizations along with the instructions being currently developed.

• 300 copies of the Budget oversight handbook were printed; • With GGI support, the second phase of training of the SAO auditors in International Public Sector Accounting Standards (IPSAS) was conducted and a final exam was organized using online platform “Zoom”.

• With GGI support, PICD developed mid-term strategy document (2020-2023) and action plan (2020- 2021).

• SAA Auditor Ekaterine Jalaghania successfully competed of Association of Chartered Certificate Accountants (ACCA) exams

• With GGI support, audit certification course manual was developed for FA, CA, PA, Budgetary law and IPSAS

• GGI supported PAI to introduce mandate to monitor certified independent auditors. Monitoring and evaluation (M&E) guidelines for the certified auditors’ performance were developed

• GGI supported PICD to develop Internal Audit Quality assurance instructions for public auditors • With GGI support Batumi IA team finalized PA of municipal property management unit.

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 71 5.0 OBSTACLES, CONSTRAINTS, AND OPPORTUNITIES ALONG WITH LESSONS LEARNED DURING YEAR 5

GGI identified several constraints and lessons learned during the current reporting year. Below are obstacles that influenced and/or delayed implementation of project activities during the reporting period:

• Coronavirus Pandemic has significantly influenced the implementations of the project activities in the 3rd and 4th quarters of reporting year. Some activities have been cancelled and some are postponed for indefinite period of time. This particularly affects events and activities which require direct engagement of interlocutors and staff and cannot be completed remotely.

• It was planned to finalize Housing Strategy development by the end of 2019. Due to reorganization and staff reshuffling in the leading agency MoIDPLHSA, the strategy development process was delayed. The MoIDPLHSA will lead the process with new task force dedicated to strategy development. Gained experience could be used by the Ministry in new policy development initiatives, as well as in the work on RIA reports, which are compulsory from 2020.

• Having delayed the functional assessment process in the government of the A.R. of Adjara and Abkhazia, CSB had another opportunity to better test the requirements of the FA methodology as an effective instrument for institutional development.

• Having delaying application of CSL on LEPLs, the Government of Georgia has implicitly postponed a need to adopt the new regulation for LEPLs. CSB needs to extend further transitional period for LEPLs, as without their categorization, it is not realistic to decide which LEPLs should fall under the Civil Service Law. It should be noted that categorization of LEPLs was developed with GGI support and it will serve as a background for the revised legislation on LEPLs.

• Timeline of the updated program budget development methodology adopted by the Ministry of Finance of Georgia created considerable hurdles to GGI’s partner municipalities to timely develop priority documents and medium-term action plans.

• The departure of a key staff member in charge of the OGP and chair of the OGP Tbilisi WG has complicated internal coordination process and negatively affected pace of development and finalization of Building Integrity and Transparency Strategy and Action Plan of Tbilisi City Hall. However, the appointment of a new staff member, Irakli Chincharauli significantly accelerated the process and resulted in finalization and approval of the Building Integrity and Transparency Strategy and Action Plan of Tbilisi City Hall.

• The departure of a key staff member in charge of architectural issues for Akhaltsikhe City Hall has significantly complicated finalization of the tendering proposal for adapting Akhaltsikhe Municipal building to the needs of persons with disabilities.

• Demonstrated motivation of the new leadership of AoG towards OGP represents an opportunity to progress further on OGP related matters once the pandemic declines.

• MRDI PMP web platform development took longer than expected due to addressing additional requirements under extended contract with IDG.

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 72 • Change of the leadership as well as COVID-19 outbreak impacted the pace of cooperation with ACC Secretariat.

• Feasibility studies on PPP potential in select municipalities will be launched if/when confusion in the existing PPP legislation will be addressed.

• Due to the change in priorities, all activities planned with PSDA have been cancelled.

• At the beginning of the reporting year, the programmatic work was particularly hindered by renewed demonstrations and subsequent resignations in Parliament. A fully proportional system promised by the authorities in June as a compromise after a violent dispersal of the rally in the capital Tbilisi failed to garner enough votes in parliament to pass. This resulted in the second wave of protests outside of Parliament which included picketing of the Parliamentary building, which made access impossible due to strengthened security measures. In line with these developments, number of GGI partner Committee Chairs resigned their posts including the Chair of the Healthcare Committee, the Vice Speaker who also served as the Chair of the Gender Equality Council, The Chair of the Open Parliamentary Council, the Chair of the European Integration Committee, The Chair of the Foreign Relations Committee, as well as the Chair of the Environment Committee who was promoted to the Vice Speaker’s position. This considerably slowed the programmatic work, since the lead interlocutors disengaged from the process.

• Due to the COVID-19 outbreak the implementation/finalization of the following activities were delayed:

− Housing Strategy development process. GGI extended contracts for the team of Housing experts, to ensure more intense support to task force of the MoIDPLHSA − Workshop to discuss draft guidelines on public consultations − RIA trainings and public awareness meeting. GGI will coordinated with MoJ and development partners to find solutions and delivered RIA trainings online − PIM assistance has been delayed due to COVID-19 and its negative financial implications − Building Integrity and Transparency trainings for the employees of Lagodekhi, Telavi, Senaki and Zugdidi municipalities − Open Data management trainings for the employees of Lagodekhi, Telavi, Senaki, Zugdidi, Gori and Ozurgeti municipalities − OGP Council meeting − OGP NAP Timetable − Presentation of Gender Impact Assessments developed by the Committees; − Education Committee thematic inquiry public hearings − Strategic Retreat of Committee Chairs − Open Parliament Council consultation group working meeting − Parliamentary Research Center Study Tour, Staff Trainings and development of Electronic Library − Publication of the European Integration Committee Thematic Inquiry report on Intermittent Vehicle Inspection − Open Parliament Council 2020-2021 Action Plan elaboration − Development of the Finance & Budget committee financial oversight handbook − Public Meetings on Budget execution reports with the Budget and Finance Committee − Participating in GAO International Auditor Fellowship Program 2020 − Fellow recruitment and placement at SAO/PAI

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 73 − Development of the Finance & Budget committee financial oversight handbook; − Oversight training for Budget and Finance Committee Staff − Conducting different capacity building trainings for PAI staff and trainers − Supporting the Kutaisi and Zugdidi municipalities’ Internal Audit units in capacity building

The pandemic and imposed restrictions on meetings and gatherings has significantly affected GGI counterparts working practices including cooperation with GGI. Social distancing requirements stressed the importance of electronic services and, in general, technologies making possible remote work. In response to crisis, GGI and its sub-contractors made first steps to employ such technologies where in normal circumstances, they would be avoided. GGI started using teleconferencing in daily internal and external communications. GGI partners delivered planned trainings remotely using teleconferencing software. Despite the COVID-19 Pandemic GGI utilized opportunities in delivering the services remotely.

Lessons learned – Parliamentary Oversight At the end of 2018, Parliament adopted a new Rules of Procedure, which, among other important novelties, introduced significant changes to the legislative and oversight mechanisms. GGI engaged in supporting the members and staff of parliament in making the best use of the new parliamentary oversight tools and procedures. GGI support included piloting Post Legislative Scrutiny (PLS) in two committees, supporting thematic inquiries, assisting in developing thematic reports. GGI was also active in developing practical and user-friendly handbooks on new oversight mechanisms and on Post Legislative Scrutiny. In the process of capacity building it proved particularly useful to engage with the committees early, with first activities planned right after the adoption of the new RoP. This helped jump start the process of institutionalization of the new oversight mechanisms. At the start, the committees lacked knowledge and experience in utilizing these instruments and GGI engagement helped fill this vacuum. Active engagement of the Committee Chairs and early capacity building of the staff helped diffuse the newly accumulated experience inside parliament. GGI piloted Post Legislative Scrutiny in the Environment and Healthcare Committees allowing the two Committees to become frontrunners in the process. Active participation of the Committee Chairs in the process and their willingness to communicate Committee activities inside the Parliament set an example for other Committees to follow suit in initiating the use of new oversight mechanisms. In order to further aid this process, GGI supported the staff of the committees by providing them with an opportunity to attend a certified PLS course in the United Kingdom. Upon return, the staffers put together a training curriculum and delivered a well-tailored seminar to other committee staff sharing their theoretic and practical experience, which was highly appreciated. GGI also distributed oversight and PLS guides to the MPs and staff tailored to the Georgian context, which is still actively used. The multiplier effect of the pilot project was exemplified by Environment Committee chair being invited to Indonesia to a PLS conference to present a paper on the experience of the Committee in conducting oversight. Additionally, active participation of the Healthcare Committee Chief of Staff resulted in her being nominated as one of the speakers at the 2020 induction training for the newly elected MPs, where among other issues she will present the committee oversight work to the new MPs.

As the use of oversight mechanisms picked up speed in the Georgian Parliament, GGI positioned itself as a reliable partner to provide well-tailored support in this area. Another important lesson identified by GGI in the process of strengthening Parliament’s capacity to scrutinize government was negative consequences of tight time-limitations for the conduct of thematic inquiries. This hindered finalization of the report-writing process, where Committees either unable to meet the deadlines or finalized the process in a haphazard manner. GGI proactively communicated its views to the Parliament during the process of revision of the RoP in Spring of 2020 and welcomed the new changes which now give additional time to the Committees to conduct thematic inquiries.

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 74 The process also showed that utilization of oversight mechanisms provided an important opportunity to female Members of Parliament in leadership positions to advance their work and directly engage with the public in addressing some of the most acute policy issues. GGI actively supported three female MPs in conducting thematic inquires and drawing up a first thematic report as a Committee rapporteur. New oversight mechanisms were particularly actively used by women leaders in Parliament showcasing their leadership across the committees.

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 75 6.0 ANNUAL PROGRESS OF PERFORMANCE INDICATORS INCLUDED IN THE PMP

Table 1 below summarizes progress achieved by GGI during the reporting year against the set PMP output, outcome and impact level performance indicators. The following narrative provides a description for the GGI performance indicators and disaggregates data for each of them. ANNUAL PROGRESS ON PROGRAM IMPACT INDICATORS Indicator 1. Percentage of citizens who perceive government as open and transparent (Impact/Context). The indicator is derived from regular IRI survey. Data related to Government structures under GGI focus are derived from survey and used for calculating indicator result. More specifically, the survey examines attitudes towards openness of Ministry of Justice, Local authorities, Prime Minister's office, Government of Georgia. The indicator percentage is calculated as a mean value for these institutions. Based on IRI survey conducted in August 2020, result for an indicator is 53.8 percent, which is a notable improvement over the previous result of 36.5 percent derived from survey of November 2019. The result for past three years was below 40. Such a notable improvement of attitudes can be explained by the well-known phenomena that when people are exposed to extraordinary threat such as pandemic, their usual ways of cognitive evaluations change and become emotionally driven. Existing institutions are perceived as only salvation and attitudes towards these institutions tend to be better than in ordinary conditions. Indicator 2. Percentage of citizens who assess performance of target institutions positively (Impact/Context). The indicator is derived from regular IRI survey. Data related to Government structures under GGI focus are derived from survey and used for calculating indicator result. More specifically, the survey examines attitudes towards performance of Local authorities, Government (Cabinet of Ministers), Parliament, Prime Minister's office and State audit office. The indicator percentage is calculated as a mean value for these institutions. Based on IRI survey conducted in August 2020, result for an indicator is 48.2 percent, which is a notable improvement over the previous result of 38.5 percent derived from survey of November 2019. The result for past three years was below 40. As noted above such a notable improvement of attitudes can be explained by the well-known phenomena that when people are exposed to extraordinary threat such as pandemic, their usual ways of cognitive evaluations change and become emotionally driven. Indicator 3. Freedom House’s Nations in Transit Local and National Democratic Governance Ratings (Impact/Context). The indicator is based on a secondary data from the Freedom House Global Survey (https://freedomhouse.org/report/nations-transit ). The actual progress for Georgia in 2020 was for National Democratic Governance (NDG): 5.50; Local Democratic Governance (LDG): 5.25. No change is observed from data released earlier. Indicator 4. The Open Budget Index (Impact/Context). The indicator is based on a secondary data from the worldwide Open Budget Survey (http://www.internationalbudget.org/wp-content/uploads/ OBS2015-OBI-Rankings-English.pdf), which was implemented in 2019 by the International Budget Partnership. The global organization collaborates with civil society around the world to use budget analysis and advocacy as a tool to improve effective governance and reduce poverty. Georgia was scored 81 in the Open Budget Index based on most recent survey conducted in 2019, what is a marginal decline from the previous index of 82 from 2017. Indicator 5. The Open Government Index (Impact/Context). The indicator is based on a secondary data from the worldwide annual survey of the World Justice Project

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 76 (https://worldjusticeproject.org/rule-of-law-index/country/2020/Georgia/Open%20Government/). Georgia’s score from the recent survey implemented in 2020 is 0.57 which is marginal decline from the score for 2019 of 0.59. Cross-cutting indicators: Indicator C.C.1. Number of individuals who participate in capacity building events to strengthen national and local government (Output/Custom). This indicator tracks recipients of GGI-funded capacity building assistance, such as trainings, coaching, and workshops. The number of individuals participating in various GGI capacity development events reached 566 during the reporting year. • 11 auditors of Batumi Municipality participated in Internal Audit Quality Assurance Program. • 16 representatives of Parliament Committees attended training on selected PSL aspects prepared and delivered by participants of overseas PLS certified training course in cooperation with Parliament training center.

• 18 representatives of MoF and local governments participated in training dedicated to Public Investment Management.

• 47 SAO auditors participated in IPSAS training held is SAO offices in Tbilisi and Kutaisi • 6 SAO auditors from SME support program performance audit team, participated in training on qualitative and quantitative research methods • 17 representatives of Ministry of Education, Science, Culture and Sports, Ministry of Finance, Ministry of Economy and Sustainable Development and Tbilisi City Hall participated in training on Investment project management.

• 23 representatives of Batumi City hall and its subordinate agencies participated in training on Risk Management.

• 28 representatives of State Inspectors Office participated in capacity building workshop. • 19 participants attended training on Strategic Leadership organized by CSB • 15 people participated in training on Adult Learning Methodology organized by CSB. • 34 participants attended Leadership Academy for Development workshop organized by EPRC with GGI support.

• GGI supported SAO to organize IPSAS workshop for auditors. Workshop was conducted at the Lopota Lake Resort on March 7-8th. The objective of the workshop was to discuss the new Accounting Plan (approved this year) of the budget organizations along with the instructions being currently developed. 19 participants attended the workshop.

• On March 27th GGI contractor CBI conducted training of Municipal staff of Akhaltsikhe, Batumi, Kutaisi, Dedoplistrkaro and Dusheti on updated program budgeting methodology. Due to COVID outbreak, the training was conducted online. Trainers presented to participants key changes and new topics introduced by July 27, 2018 #283 Decree of the Minister of Finance reg update of program budgeting methodology. Trainers have made a presentation highlighting key changes. In total 15 participants attended the training.

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 77 • With GGI support, ISET conducted training in Regulatory Impact Assessment for 16 representatives of government agencies, who have been selected by their agencies leadership to implement RIA within their agencies.

• GGI supported IPSAS training for 15 SAO auditors. The training period lasted from March 26th till April 10th, and the exam took place on April 14th.

• GGI consultants Nino Tsukhishvili and Salome Sagaradze on June 12, 2020 conducted a workshop with relevant stakeholders dedicated to OGP training module for public servants. 9 representatives of GYLA, TIG, IDFI, CSI, OGP Secretariat, MRDI participated in workshop.

• GGI's Contractor IDFI conducted four workshops with representatives of Senaki City Hall, Lagodekhi City Hall, Telavi City Hall and Zugdidi City Hall dedicated to discussion of findings of Integrity and Transparency situational analysis of respective municipalities. In total 41 participants attended the workshops.

• 53 representatives of Batumi City Hall, Ozurgeti and Zugdidi municipalities participated in training for effective communication with persons having disabilities (PWDs).

• 56 representatives of Kutaisi City Hall participated in training for effective communication with persons having disabilities (PWDs).

• 17 MRDI staff participated in training regarding the use and administration of newly developed PMP web platform.

• 25 representatives of government agencies (MoF, MoE, MRDI, PPP agency, GEDF, Achara, Batumi) PPP training organize by GGI in coordination/cooperation with ADB. The trainings were launched on July 20 and were completed in mid-August by final test.

• 15 CSB representatives were trained in research methods. • 20 representatives of Tbilisi City Hall were provided with training on newly developed Building Integrity and Transparency Strategy with GGI assistance.

• 4 AoG staff members were trained in administration of newly developed OGP web page. • 6 staff members of Parliamentary Training Center were trained in online course standards. • 11 participants attended the workshop on developing of electronic modules and platforms on Civil Service Law and Ethics.

• 10 representatives of MoF MRDI and Ministry of Education were trained in e-BTPS communication strategy. Indicator C.C.2. Number of participants for GGI-organized events (Output/Custom). In addition to the capacity development interventions during the reporting year, under GGI assistance were organized other events, such as: public meetings and presentations. The actual progress for the above indicator achieved is 1761. The indicator combines: • 144 citizens attended informative meetings to introduce the concept and process of Participatory Budgeting in Batumi Municipality. Presenters from Civil Society Institute (CSI) ad City Hall discussed Participatory Budgeting in detail, answering questions and providing a coherent and actionable overview of the process.

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 78 • 46 citizens participated in focus group discussions in Batumi Municipality to discuss in detail the process of creating and submitting projects for participatory budgeting. Participants were offered help and advice in creating and refining their ideas and proposals.

• 66 participants attended the f meeting of Anti-Corruption Working Group. • 148 public and private HR professionals participated in HR forum organized by CSB. • 35 representatives of municipalities of Achara, Samegrelo Zemo-Svaneti and Guria participated in public lecture dedicated to anticorruption day.

• 40 students of Batumi participated in public lecture dedicated to anticorruption day. • 21 working group members participated in meeting of working group of intergovernmental commission on housing.

• 38 participants attended presentation of the concept of Public Service Delivery Index. • 117 participants attended 5 years of Civil Service Reform event to critically evaluate reform, estimate its progress and identify challenges. USAID GGI international expert Dragos Dinu participated in the panel discussion on main successful measures and challenges in civil service reform and PAR.

• 87 participants attended GGI supported Night Owl Session US Foreign Policy - What it means to the world organized by EPRC

• 51 participants attended OGP forum organized at the Ceremonial Palace of Georgia by OGP Secretariat to discuss the new vision of the OGP Secretariat of Georgia under AoG on improvement of OGP coordination at the national level. The participants also presented reports with regard to fulfilment of the present action plan. • 13 participated attended the meeting specifically organized by the Imereti Governor with participation of all mayors of the municipalities.

• 106 participants attended community forum “Your Idea Batumi” on participatory budgeting to discuss the impact of the projects that have been selected and to follow up on their progress.

• 70 representatives of Central and Local Governments participated in a working session organized by MoF to present the open budget portal, Citizens guide on the state budget of Georgia 2020, as well as to sign memoranda with selected 27 municipalities (to provide grants addressing challenges identified through PEFA.

• 22 representatives of Ministry of Regional Development and Infrastructure, Ministry of Finance, Kakheti and Shida Kartli municipalities, Finance Officers Association of Local Self-Governing Units, Municipal Development Fund discussed procedures for establishment and management of IMC on stray animals.

• On January 27, at Saburtalo district administration, Tbilisi City Hall and GYLA held public discussion on draft Building Integrity and Transparency Strategy of Tbilisi City Hall. 17 citizens participated in event.

• On January 28, at Gldani district administration, Tbilisi City Hall and GYLA held public discussion on draft Building Integrity and Transparency Strategy of Tbilisi City Hall. 25 citizens participated in event.

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 79 • On January 29, at Didube district administration, Tbilisi City Hall and GYLA held public discussion on draft Building Integrity and Transparency Strategy of Tbilisi City Hall. 15 citizens participated in event. • On January 30, at Sheraton Metekhi Palace, Tbilisi City Hall and GYLA held concluding public discussion on draft Building Integrity and Transparency Strategy of Tbilisi City Hall. 24 representatives of participation of government agencies, CSO’s, as well as other interested stakeholders participated in event.

• On February 3rd, MP Nino Tsilosani presented a Thematic Report on Public Private Partnership developed with the assistance of USAID GGI. The position of Thematic Reporter was introduced in Parliamentary Committees following the adoption of the new Rules of Procedure in the Georgian Parliament in 2018. MP Tsilosani is the first thematic reporter to compelte and present the report in this capacity. 31 participants attended the hearings.

• Thematic Inquiry report on disinformation was presented to the wider audience by member of the Parliament Nino Goguadze on February 3, 2020. Newly elected Deputy Speaker, head of the European Integration Committee, members from the ruling party as well as independent MPs, invited experts, representatives from CSOs, media outlets and Embassies were present. 46 participants attended the event.

• On March 12, Hearing on Disinformation Report Developed as a Result of Thematic Inquiry was organized and Parliaments foreign relations committee. The report was developed with GGI support. 8 participants attended the event.

• On January 16 and 27 The Environment and Natural Resources Committee held two hearings which is part of the Post Legislative Scrutiny (PLS) piloted with the assistance of USAID GGI. GGI piloted the practice of PLS with Environment and Healthcare Committees last year. The Environment Committee is currently working on finalizing the assessment report which studies implementation of eased taxation regime on the import of the electric cars in Georgia. The first hearing on January 16 involved private companies and associations. The second hearing on January 28 involved government representatives which are in charge of implementing the new tax regulation. The committee collected valuable input from all the sides during the hearing and is currently working on finalizing the PLS report. 9 participants attended the first hearing and 15 the second one.

• GGI contractor DDB presented pre-final version of OGP webpage to stakeholders mostly representatives of OGP forum. 22 participants attended the meeting.

• 20 representatives of educational institutions attended first public hearing organized by committee on education on thematic inquiry on the “Arts Education Practices in General Education Institutions”. Thematic inquiry process was supported by GGI trough hiring subject-matter expert.

• 15 representatives of educational institutions attended second public hearing organized by committee on education on thematic inquiry on the “Arts Education Practices in General Education Institutions”. Thematic inquiry process was supported by GGI trough hiring subject-matter expert.

• 11 representatives of government agencies attended third hearing organized by committee on education on thematic inquiry on the “Arts Education Practices in General Education Institutions”. Thematic inquiry process was supported by GGI trough hiring subject-matter expert.

• 114 participants attended online discussion with students: Open Governance in Georgia during the Pandemic. Event was organized by GGI in cooperation with GIPA with participation of Keti Tsanava - OGP Secretariat of Georgia; and Levan Samadashvili – Chief of Party; USAID GGI. Discussion was moderated by Misha Darchiashvili Governance Program Manager, USAID GGI.

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 80 • 35 particiants attended online discussion: Can OGP serve as a Platform for Improving Openness and Transparency during the Pandemic? Event was organized by GGI with participation of Keti Tsanava - OGP Secretariat Georgia; Nino Makhashvili - Parliament of Georgia; Shreya Basy – Deputy Director; Country Support; OGP Support Unit; Nino Tvaltvadze – Deputy Mayor of Kutaisi; and Giorgi Oniani – Deputy Executive Director; Transparency International Georgia. Discussion was moderated by Mariam Gorgadze DCoP, USAID GGI.

• 73 participants attended online discussion: COVID 19 – Implications on Openness and Transparency. Event was organized by GGI with participation of Natia Mezvrishvili - Head of Administration of the Government of Georgia; Peter Wiebler, USAID/Caucasus Mission Director; Giorgi Kldiashvili - Executive Director; Institute for Development of Freedom of Information; and Kristina Reinsalu - Programme Director of e-Democracy; E-Governance Academy of Estonia Discussion was moderated by Levan Samadashvili CoP, USAID GGI.

• GGI grantee, EPRC organized and facilitated four plenary sessions of the Health System Task Force. Task Forces brought together prominent national experts in the relevant fields, civil society representatives, politicians and high-level policymakers including members of Parliament from across the political and ideological divides. In total 50 people participated in four meetings.

• 15 participants attended public discussion of Building Integrity and Transparency Strategy and Action Plan of Telavi Municipality organized with GGI assistance by IDFI.

• 8 participants attended public discussion of Building Integrity and Transparency Strategy and Action Plan of Lagodekhi Municipality organized with GGI assistance by IDFI.

• 14 participants attended public discussion of Building Integrity and Transparency Strategy and Action Plan of Zugdidi Municipality organized with GGI assistance by IDFI.

• 8 participants attended public discussion of Building Integrity and Transparency Strategy and Action Plan of Senaki Municipality organized with GGI assistance by IDFI.

• 27 participants attended public hearing on Thematic Inquiry on the availability of pre-school education supported by GGI. Public hearing with interested Parties who submitted written evidence to the Committee was held online due to the Pandemic restrictions.

• 14 Participants attended Health Care task force plenary session organized by GGI grantee EPRC on July 2.

• 9 Participants attended Social Issues task force plenary session organized by GGI grantee EPRC on July 29.

• 6 Participants attended Social Issues task force plenary session organized by GGI grantee EPRC on August 19.

• 13 Participants attended Social Issues task force plenary session organized by GGI grantee EPRC on July 15.

• 14 Participants attended Social Issues task force plenary session organized by GGI grantee EPRC on September 19.

• 14 Participants attended Social Issues task force plenary session organized by GGI grantee EPRC on September 20.

• 11 Participants attended Social Issues task force plenary session organized by GGI grantee EPRC on August 13.

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 81 • 9 Participants attended Social Issues task force plenary session organized by GGI grantee EPRC on August 5.

• 6 Participants attended Social Issues task force plenary session organized by GGI grantee EPRC on August 26.

• On August 3, 2020, the Environment Protection and Natural Resources Committee, with GGI assistance organized a Spring Session Report presentation at the Parliament of Georgia. Presentation was opened by the chairwoman of the committee Nino Tsilosani, who briefed the participants about committee activities which had been carried out during the spring session by the committee, along with the presentation of the PLS report on implementation of legislative changes related to electric motor vehicles which was conducted with GGI assistance. 52 participants attended the presentation.

• On September 30, the Education, Science and Culture Committee Chair organized an online discussion with the Ministry of Education, the Ministry of Health and other government representatives to discuss the findings of the thematic inquiry on pre-school education. 7 participants contributed to discussion. 1.1a} Number of GoG agencies that demonstrate improved organizational and human capacity level (Outcome/Custom) The actual progress for the above indicator during the reporting year reached 17. During regarding reporting year, following institutions were supported with efficiency enhancing initiatives:

• Government

o RIA methodology was developed. o Draft Guideline for public consultations equipped with quality oversight instruments, required by OECD recommendations has been developed with GGI support.

• MRDI

o Study on delegating specific functions such as museums and theatres, primary healthcare social protection to the local governments was conducted.

o Guidelines on decentralization of services/competences in the field of agriculture were developed.

o Guidelines on decentralization of services in the field of environment protection were developed.

• PSDA

o GGI’s local STTA Irakli Gvenetadze with support from GGI’s international STTA expert Morten Nielsen developed draft Service Delivery Index Concept and methodology taking into account best international practices and experience.

• Batumi municipality

o Open data concept that will ensure continuous provision of information in an open data format to the residents of Batumi municipality and all interested groups was developed.

o Internal audit quality assurance instruction was developed for Batumi Municipality. Batumi municipality IA unit also was provided with respective training.

• CSB

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 82 o Internal regulations of CSB regarding personal data protection were elaborated. o ToT on Adults Learning Methodology was conducted for 14 trainers. o CSB finalized report on Functional and Institutional Analysis (FIA) of autonomous republic of Achara.

• Akhaltsikhe Municipality

o IDFI developed training module/materials on Open Data management and organized capacity building activities for the employees of Akhaltsikhe municipality.

• Kutaisi Municipality

o IDFI developed training module/materials on Open Data management and organized capacity building activities for the employees Kutaisi municipality.

• State Inspectors Office

o Workshop for the State Inspector’s Office staff (around 30) with the goal to strengthen capacity and internal coordination with particular focus on personal data protection was held on December 8-9, 2019.

o Case studies on personal data protection in the fields of health and juveniles. • Tbilisi City Hall

o GYLA developed building Integrity and Transparency Strategy and Action Plan for Tbilisi City which were approved by decree of Mayor.

• Telavi City Hall

o Building Integrity and Transparency Strategy/AP together with implementation monitoring methodology has been submitted to City hall of Telavi which was approved by decree of Mayor.

• Lagodekhi City Hall

o Building Integrity and Transparency Strategy/AP together with implementation monitoring methodology has been submitted to City hall of Lagodekhi which was approved by decree of Mayor.

• AoG

o OGP Communication Strategy and Action Plan were developed with GGI assistance and accepted by AoG.

• Public Defenders Office

o Methodology aimed at improving FoI related business processes at the PDO’s office was developed with GGI support.

• Parliament

o Budgetary Process and Oversight Handbook was updated reflecting requirements of the parliament’s new rules and procedures and latest state budget figures.

• State Audit Office

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 83 o audit recommendation implementation system (ARIS) web platform was developed and finalized,

• Public Audit Institute

o PAI communication strategy and action plan were finalized covering communication goals, objectives and respective approaches as well as target audience features and communication channels. The document also contains analysis of PAI macro environment, its competitive advantages and provides recommendation for re-branding PAI as well as respective communication budget estimates.

o With GGI support, audit certification course manual was developed for FA, CA, PA, Budgetary law and IPSAS.

o GGI supported PAI to introduce mandate to monitor certified independent auditors. Monitoring and evaluation (M&E) guidelines for the certified auditors’ performance were developed.

• PICD

o With GGI support, PICD developed mid-term strategy document (2020-2023) and action plan (2020-2021).

o GGI supported PICD to develop Internal Audit Quality assurance instructions for public auditors. 1.2} Number of assisted GOG agencies and local governments with budgetary processes which are participatory, evidence-based and transparent (see PIRS for index description) (Outcome/Custom) The actual progress for the above indicator during the reporting year reached 7. GGI supported partner municipalities to introduce participatory and evidence based approaches to public budgeting.

• Akhaltsikhe municipality continues participatory budgeting and develops priority documents and program budgets in compliance with the program budget methodology with GGI assistance.

• Kutaisi municipality continues participatory budgeting and develops priority documents and program budgets in compliance with the program budget methodology with GGI assistance.

• Batumi municipality continues participatory budgeting and develops priority documents and program budgets in compliance with the program budget methodology with GGI assistance.

• Lanchkhuti municipality introduced participatory budgeting for FY 2021 with GGI assistance. • Ambrolauri municipality introduced participatory budgeting for FY 2021 with GGI assistance. • Dedoplistskaro Municipality developed priority documents and program budgets for FY2021 in compliance with the program budget methodology.

• Dusheti Municipality developed priority documents and program budgets for FY2021 in compliance with the program budget methodology.

Indicator 1.3. Number of improved HR management tools developed through GGI assistance that are utilized by GOG Agencies (Output/Custom). The actual progress for the above indicator during the reporting year reached 9. During the reporting period were developed following HR tools:

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 84 • PLG prepared comprehensive guidelines on personal data protection as well as documents on two main data processing systems in CSB – EHRMS and hr.gov.ge.

• CSB staff was delivered ToT on adult learning methodology focusing on andragogical approach to trainings including adult learning principles, styles, how to organize participatory training courses, the training cycle management to facilitate learning.

• With GGI support, Georgian Young Lawyers Association finalized Building Integrity and Transparency Strategy for Tbilisi City Hall which was approved by decree of Mayor.

• OGP training module, curriculum and training material package for two full day training for the local government staff from selected municipalities have been developed.

• CSB finalized report on Functional and Institutional Analysis (FIA) of autonomous republic of Achara. • Case study on of personal data protection/violation covering 48 health and juvenile cases was conducted and submitted to State Inspectors Office.

• Methodology aimed at improving FoI related business processes at the PDO’s office was developed with GGI support.

• Building Integrity and Transparency Strategy/AP together with implementation monitoring methodology has been submitted to City hall of Telavi and Lagodekhi which were approved by decree of Mayor. (2) Indicator 1.4. Number of adopted mechanisms that strengthen inter-governmental reporting and coordination (Outcome/Custom). The actual progress for the above indicator is 16 for the reporting year:

• GGI supported CSB in organizing HR forum, which was planned in the format of public-private dialogue under the Civil Service Reform 5-year celebration event. HR Forum hosted up to 110 HRMs representing ministries, LEPLs, municipalities and more than 30 HRM from private organizations. • GGI supported meeting of working group of intergovernmental commission on housing to discuss the problem definition and the policy alternatives prepared by ISET.

• GGI expert developed a Public Service Delivery Index Concept and methodology taking into account best international practices and experience.

• With GGI support, anti-corruption working group meeting was held with participation of Government agencies, regulatory bodies, local municipalities and CSOs.

• With GGI support, Budgetary Process and Oversight Handbook was developed. • With GGI support, two evaluation matrixes were developed on Universal Healthcare and the State Program for Provision of Medicine for Treatment of Chronic Diseases (2).

• GGI supported MoF to organize working session with participation of 70 representatives of Central and Local Governments to present the open budget portal, Citizens guide on the state budget of Georgia 2020, as well as to sign memoranda with selected 27 municipalities (to provide grants addressing challenges identified through PEFA).

• GGI assisted the Administration of the Government (AoG) to hold Open Government Georgia (OGP) Forum meeting in the Ceremonial Palace of Georgia. The Forum discussed the new vision of the OGP

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 85 Secretariat of Georgia under AoG on improvement of OGP coordination at the national level. The participants also presented reports with regard to fulfilment of the present action plan. • New CSB website became functional. The website which was developed with GGI support, fully meets CSB expectations on functionality of the web page, and will be used for communication with HRs of GoG agencies.

• MRDI project monitoring platform was developed which is a comprehensive website providing information on infrastructural projects including up to date data on project implementation.

• SAOs Audit Recommendations Implementation System (ARIS) became functional. The system allows public entities to monitor their own progress (or lack thereof) in implementation of audit recommendations and will contribute to higher compliance rates.

• IMC guideline, together with sample regulatory acts and financing formula was developed. • Guideline for IPSAS 32 for Government entities developed and accepted by the MoF. • Guidelines on decentralization of services/competences in the field of agriculture were developed. • Guidelines on decentralization of services in the field of environment protection were developed. Indicator 2.1. Number of people participating in new or improved mechanisms for citizen participation (Output/Custom).

The aggregated progress for all four quarters of the reporting year for this performance indicator reached 167,313 people. The above figure combined the quarterly unique users of GGI assisted citizen consultation web portals, as well as participants for the organized events related to the improved government mechanisms for citizen consultation. Number of unique online users for the GGI supported citizen engagement web platforms: OGP online tracker (401), SAO Budget Monitor Platform (6,971) and for the innovative i-change web portal (110,220) reached overall – 117,592 unique users. In addition, Kutaisi and Akhaltsikhe municipalities reported figures for GGI assisted web-pages totaling 41,465 users. Specifically, Kutaisi web page users 31,522, Akhaltsikhe web page users – 9,943. Overall figure also includes number of citizens involved in participatory budgeting for FY 2020 in Akhaltsikhe (2044), Kutaisi (1430) and number of users for participatory budgeting webpage for FY 2021 in Batumi (4405). Number of citizens involved in GGI supported PB for FY2021 in Kutaisi, Akhaltsikhe, Ambrolauri and Lanchkhuti will be reported upon completion of voting stage in next reporting period. During the reporting year, under GGI assistance were organized a number of public meetings discussions and hearings related to the improved government mechanisms for citizen consultation. The number of participants attending those public events reached (377). Those are: • 144 Citizens from various target groups participated in public discussions in frame of information campaign for participatory budgeting in Batumi municipality

• 46 Citizens participated in focus group discussions dedicated to participatory budgeting in Batumi municipality

• 106 participants attended community forum “Your Idea Batumi” on participatory budgeting to discuss the impact of the projects that have been selected and to follow up on their progress

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 86 • On January 28, at Gldani district administration, Tbilisi City Hall and GYLA held public discussion on draft Building Integrity and Transparency Strategy of Tbilisi City Hall. 25 citizens participated in event. • On January 29, at Didube district administration, Tbilisi City Hall and GYLA held public discussion on draft Building Integrity and Transparency Strategy of Tbilisi City Hall. 15 citizens participated in event. • On January 30, at Sheraton Metekhi Palace, Tbilisi City Hall and GYLA held concluding public discussion on draft Building Integrity and Transparency Strategy of Tbilisi City Hall. 24 representatives of participation of government agencies, CSO’s, as well as other interested stakeholders participated in event. 2.2. Number of new laws, policies, or government actions resulting from an e-petition that obtained 5,000 or more signatures (Outcome/Custom) The actual progress for the above indicator during the reporting period reached 1. Initiative for stricter regulation of gambling was supported by broad public campaign and resulted in a petition which was signed by over 10,000 citizens. Indicator 2.3. Number of communication pieces of GGI-supported initiatives and activities disseminated to the public via public media (Output/Custom). The actual progress for the above indicator during the reporting year reached 48 communications pieces/media stories, including: • GGI mentioned on Parliament.ge website in connection with thematic inquiry on intermittent technical inspection of vehicles.

• GGI mentioned in press release by the Institute for Development of Freedom of Information (IDFI) held the 2-day international conference -Good Governance Forum (GG Forum), which aimed to explore innovative mechanisms and the most cost-effective approaches of combating corruption, especially high-level corruption.

• GGIs support in organization of OGP forum was mentioned on Georgian Public Broadcasters website.

• GGI mentioned on IDFI website in information about Good Governance Forum • GGIs support in organizing WG meeting on IMC is mentioned on MRDI website • GGIs support in organizing Public Private HR Forum is mentioned on CSB website • GGI is mentioned on the website of Network of centers for Civic Engagement in connection with lecture dedicated to international anti-corruption day.

• Media story about the winners of Your Idea Batumi was published on netgazeti.ge website on December 25, highlighting GGI support.

• Media story about the winners of Your Idea Batumi was published on ajaratv.ge website on December 25, highlighting GGI support.

• GGIs support to PB is highlighted on Batumi City Hall web info about winning the contest for Best Practice Program by Your Idea Batumi project.

• GGIs support to PB is highlighted on Batumi City Hall Facebook page post about winning the contest for Best Practice Program by Your Idea Batumi project.

• GGI is mentioned in media story on droa.ge website in connection with WG meeting on IMC for stray animals.

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 87 • Media story on OGP forum published on comersant.ge websites, highlights GGIs support to the forum.

• GGIs support highlighted in a story on SCB Facebook page about conference for fifth anniversary of Civil Service Reform.

• Information about developments on Your Idea Batumi project published on ajaratv.ge website on November 22 highlighting GGIs support.

• GGI is mentioned in Batumi City Hall website announcement on Participatory Budgeting Forum • GGI support mentioned in Facebook posts of Idea Batumi page. • GGI mentioned on twitter page of GIFT - Global Initiative for Fiscal Transparency in connection with presentation of budget transparency & participation portal.

• GGI support mention in MOJ web info about public lecture dedicated to international anticorruption day.

• GGI mentioned in media story about increased financing of Idea Batumi project on ajaratv.ge website on October 17.

• Media story published on netgazeti.ge website on December 31, highlights GGIs support. • GGIs support mentioned in sda.gov.ge web info about presentation of Service Delivery Index concept.

• GGI mentioned on agora.ge news portal in relation to PLS on normative acts regulating electric vehicles.

• GGI mentioned on agora.ge web portal in relation to GGI support to budget and finance committee of the Parliament in exercising their law-making and oversight functions.

• GGI mentioned on US embassy website in relation to GGI support to thematic inquiry working group on disinformation.

• GGI mentioned on Ilia State University website in relation to GGI legislative fellowship program. • GGI support to Ozurgeti Municipality for elaboration of Integrity and Transparency strategy was mentioned on Ozurgeti Municipality Facebook page.

• GGI mentioned on Your Idea Batumi Facebook page in connection with participatory budgeting for FY 2021.

• GGI mentioned on PMCG website in connection with project supporting City Hall of Gori Municipality in development of building integrity and transparency strategy and action plan.

• GGI support in conducting PLS on taxation of electric vehicles is mentioned on Imedi news web portal.

• GGI support in developing building integrity and transparency strategy for Senaki municipality is mentioned on i-press web portal.

• GGI support in developing budget guide for members of the parliament is mentioned on PMCG website

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 88 • GGI is mentioned I TI Georgia annual report in connection with GGI internship program. • GGI mentioned in article on mkhare.ge web portal in connection with supporting online discussions dedicated to open government week.

• GGI support in conducting PLS on taxation of electric vehicles is mentioned on Guardian.ge web portal.

• GGI support to participatory budgeting in Batumi mentioned in media story on kvera.ge web portal. • GGI support to participatory budgeting in Batumi mentioned in media story on ghn.ge web portal. • GGI support to participatory budgeting in Kutaisi mentioned in media story on radiodk.ge web portal.

• GGI support to participatory budgeting in Ambrolauri mentioned in media story on ambrolauriskhma.ge web portal.

• GGI support to participatory budgeting in Ambrolauri mentioned on Ambrolauri municipality website.

• GGI support to participatory budgeting in Batumi mentioned on Batumi City Hall website • GGI support to participatory budgeting in Batumi mentioned in media story on iregions.ge web portal.

• GGI assistance in organizing PPP trainings is mentioned on PPP agency website. • GGI support to participatory budgeting in Batumi mentioned in media story on droa.ge web portal. • GGI support to Kutaisi participatory budgeting mentioned on www.interpressnews.ge media portal in media story dedicated to US ambassadors working visit to Imereti region.

• GGI support to participatory budgeting in Batumi mentioned in media story on netgazeti.ge media portal.

• GGI mentioned on IDFI website in connection with working session of Parliament OGP council. • GGI support in developing Building Integrity and Transparency Strategy, GGI mentioned on Tbilisi City Hall website. 2.4. Percent of completed responses to FOIA requests by GOG Partner Institutions (Outcome/Context) Based on the findings from the most recent FOI survey, completed by IDFI in a fall of 2019, the average percentage based on response rates of 12 GGI partner institutions was 75% representing marginal decrease compared to 76% year before. The list of partners participating in FOI survey and ranking included: MRDI, MoIDPLHSA, MoF, AoG, MoJ, CSB, SAO, National Parliament, local governments (Akhaltsikhe, Batumi, Kutaisi and Tbilisi, Dedoplistskaro, Dusheti). 2.5. Degree to which government implements the OGP action plan (Outcome/Context) The indicator is calculated based on a secondary data sources. More specifically based on an Independent Review Mechanism (IRM report) or GoG self assessment report, and represents the GoG progress in implementing the OGP action plan and included commitments. As of the end of program year 6, the IRM report and GoG self-assessment reports were not released OGP NAP 2018-2019 assessment process. Therefore no new data is available for reporting progress on this indicator.

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 89 3.1. Number of draft laws accompanied by evidence-based technical analyses developed as a result of improved policymaking (Outcome/Custom) The progress for the above indicator during the Year 6 reached 3. During the reporting period GGI supported work on an evidence based technical analyses, in particular: • Parliament adopted revisions to the RoP based on recommendations solicited from different stakeholders including GGI, TI, GYLA.

• GGI provided RIA training to MoJ at which two RIAs were exercised: RIA on draft law “On Amendments to the Law of Georgia “On the Procedures for Registering Citizens of Georgia and Aliens Residing in Georgia (Residence) Cards and Passports of a Citizen of Georgia); and RIA on draft law “On Amendments to the Law of Georgia “On Civil Status Acts” (2) Indicator 3.2. Number of government policies considered in accordance with new and upgraded systems and processes for improved policymaking (Outcome/Custom). The progress for the above indicator during the reporting year is 13. The breakdown of the figure is below: • GGI supported healthcare committee to develop Evaluation Matrix designed for routine evaluation of Universal Healthcare Program,

• GGI supported healthcare committee to develop Evaluation Matrix designed for routine evaluation of Program on Medicine for Chronic Diseases

• Draft Guideline for public consultations equipped with quality oversight instruments, required by OECD recommendations has been developed with GGI support.

• Normative act on RIA was adopted by GoG on the 17th of January 2020. • The Thematic Report on the topic of the Law of Georgia on Public and Private Partnership was finalized. On the 3rd of February 2020, MP Nino Tsilosani presented the final report to her colleagues at the Sectoral Economy and Economic Policy Committee sitting.

• Thematic Inquiry report on disinformation was finalized and presented to the wider audience by member of the Parliament Nino Goguadze on February 3, 2020. Newly elected Deputy Speaker, head of the European Integration Committee, members from the ruling party as well as independent MPs, invited experts, representatives from CSOs, media outlets and Embassies were present.

• GoG approved PPP methodology prepared with GGI assistance. • Guidelines on decentralization of services/competences in the field of agriculture were developed. • Guidelines on decentralization of services in the field of environment protection were developed. • Tbilisi City Hall approved Building Integrity and Transparency Strategy and Action Plan developed with GGI assistance.

• GGI supported PAI to introduce mandate to monitor certified independent auditors. Monitoring and evaluation (M&E) guidelines for the certified auditors’ performance were developed

3.3. Number of laws, policies, or procedures drafted, proposed or adopted to promote gender equality at the regional, national or local level (Outcome/F Indicator)

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 90

The actual progress for this indicator during year 6 of the project reached 6. • Following GGI supported training on research methods, SCB launched a research dedicated to analysis of CSL procedures in relation to women occupying managerial positions. Research will provide valuable contribution to CSB future planning to promote gender equality.

• With GGI support municipalities of Akhaltsikhe, Ozurgeti, Zugdidi, Telavi and Gori were assessed using Public Expenditure and Financial Accountability (PEFA) framework including Gender Responsive Public Finance Management (GRPFM) (5)

Indicator 3.4. Number of public forums resulting from USG assistance in which national legislators and the public interact (Output/F-Indicator). The actual progress for the above indicator during the reporting year is 17. The breakdown of the reported number is below:

• With GGI support CSI organized Community forum (PB forum) in Batumi to discuss the impact of the projects that have been selected and to follow-up on their progress. Representatives of Sakrebulos and public participated.

• GGI supported Anti-corruption working group meeting. Representatives of CSOs and Sakrebulos were among WG members.

• On January 16, The Environment and Natural Resources Committee held hearings which is part of the Post Legislative Scrutiny (PLS) piloted with the assistance of USAID GGI. GGI piloted the practice of PLS with Environment and Healthcare Committees last year. The hearing involved private companies and associations. The committee collected valuable input from all the sides during the hearing and is currently working on finalizing the PLS report.

• Committee on education organized two hearings in frame of thematic inquiry on “Arts Education Practices in General Education Institutions” with participation of representatives of formal and informal arts education institutions from Tbilisi and regions of Georgia. (2)

• GGI grantee, EPRC organized and facilitated 11 plenary sessions of the Health System Task Force. Task Forces brought together prominent national experts in the relevant fields, civil society representatives, politicians and high-level policymakers including members of Parliament from across the political and ideological divides. (11) Indicator 4.1. Number of more effective/improved oversight tools and mechanisms utilized by Parliament (Outcome/Custom). The actual progress for the above indicator during the reporting year reached 10.

• IO tables as well as social accounting matrix was elaborated for PBO needs and PBO staff was trained in CGE modelling.

• GGI supported healthcare committee to develop Evaluation Matrix designed for routine evaluation of Universal Healthcare Program.

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 91 • GGI supported healthcare committee to develop Evaluation Matrix designed for routine evaluation of Program on Medicine for Chronic Diseases.

• GGI supported with European Integration committee to conduct Thematic Inquiry on Intermittent Vehicle Technical Inspection. • GGI assisted Committee on Foreign Relations to produce Thematic Inquiry report on Disinformation.

• GGI supported Sectoral Economy and Economic Policy Committee to produce thematic Report on the law of Georgia on Public Private Partnerships.

• With GGI support Oversight page is added to new parliamentary website. • GGI activities in support of institutionalization of PLS by Georgian Parliament resulted in development of training module on PLS and thematic inquiry.

• Budgetary Process and Oversight Handbook was updated reflecting requirements of the parliament’s new rules and procedures and latest state budget figures.

• With GGI support, committee for education science and culture has initiated thematic inquiry process on “Arts education Practices in General Education institutions and Off School”. Evidence received in response to ToR placed on Parliament website was analysed by GGI expert. Report was finalized and printed.

4.2. Number of targeted public agencies utilizing more effective/improved internal control tools and/or mechanisms as a result of USG assistance (Outcome/Custom). The actual progress for the above indicator during the reporting year reached 7. • Internal audit quality assurance instruction was developed for Batumi Municipality. Batumi municipality IA unit also was provided with respective training.

• GGI supported PICD to develop Internal Audit Quality assurance instructions for public auditors. With GGI support, PICD also developed strategy and action plan.

• Akhaltsikhe municipality was assessed using Public Expenditure and Financial Accountability (PEFA) framework including Gender Responsive Public Finance Management (GRPFM) with GGI assistance by Deloitte team.

• Ozurgeti municipality was assessed using Public Expenditure and Financial Accountability (PEFA) framework including Gender Responsive Public Finance Management (GRPFM) with GGI assistance by Deloitte team.

• Zugdidi municipality was assessed using Public Expenditure and Financial Accountability (PEFA) framework including Gender Responsive Public Finance Management (GRPFM) with GGI assistance by Deloitte team.

• Telavi municipality was assessed using Public Expenditure and Financial Accountability (PEFA) framework including Gender Responsive Public Finance Management (GRPFM) with GGI assistance by Deloitte team.

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 92 • Gori municipality was assessed using Public Expenditure and Financial Accountability (PEFA) framework including Gender Responsive Public Finance Management (GRPFM) with GGI assistance by Deloitte team.

4.3. Number of national executive oversight actions taken by the legislatures receiving USG assistance (Outcome/F Indicator) The actual progress for the above indicator during the reporting year reached 58.

• Partner committee and Parliament hearings with GoG counterparts/accountable agencies (14). • Partner committee hearings on state budget execution (9). • Interpolation (2). • Ministers hour (8). • Hearing of Government member (2). • Partner committee hearings on SAO reports/audit actions (11). • Post Legislative Scrutiny (2). • Thematic inquiries (10). 4.4. Number of internal control actions taken by GOG Executive and Self-Government Bodies receiving USG assistance (Outcome/Custom). The actual progress for the above indicator during the reporting year reached 7. • Batumi PA team with GGI mentoring, finalized municipal healthcare programs performance audit, after developing risks and control matrix for each subprogram of the healthcare program.

• With GGI support Batumi IA team finalized PA of municipal property management unit. • Akhaltsikhe municipality was assessed using Public Expenditure and Financial Accountability (PEFA) framework including Gender Responsive Public Finance Management (GRPFM) with GGI assistance by Deloitte team.

• Gori municipality was assessed using Public Expenditure and Financial Accountability (PEFA) framework including Gender Responsive Public Finance Management (GRPFM) with GGI assistance by Deloitte team.

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 93 Indicator 4.5. Number of more effective/improved oversight tools and mechanisms utilized by the SAO (Outcome/Custom). During the reporting year progress on this indicator reached 5: • Audit recommendation implementation system (ARIS) web platform was developed and finalized. • SAO auditors enhanced capacity to use International Public Sector Accounting Standards. • GGI supported SAO in performance audit of SME support program. • GGI supported SAO to introduce the mandate to monitor the quality of the audit services performed by the certified professionals by developing detailed Monitoring guidelines. • GGI provided support to PAI in developing the audit certification course manual.

GOOD GOVERNANCE INITIATIVE (GGI): APR#6. October 2019 – September 2020 94

TABLE 1: GGI PERFORMANCE MONITORING TABLE WITH ANNUAL PROGRESS RESULTS

Targ et for Data Bas Target Base Exte Collectio Result Resul Result Result Result Targ Result Performance Indicator Unit e- Base Period nsio n Y1 tY2 Y3 Y4 Y5 et Y6 Y6 line Period Result n Frequen Perio cy d

1} Percentage of citizens who perceive 20% Percentage, 36.5 Annually government as open People n/a 48.8 37.8 37.5 33.3 36.5 above 37% 53.8 and transparent baseline 37% (Impact/Context) 2} Percentage of citizens who assess performance of target 20% Percentag institutions (both n/a 43.5% 35% 39.8% 36.3% 38.5% above 38.5% 39% 48.2 Annually e, People 39% national and local) baseline positively (Impact/Context) 3} Freedom House’s 3a) Score, Nations in Transit Local Composite 5.50 5.25 5.25 5.25 5.25 5.25 4.75 5.25 5.25 5.25 5.25 and National Local Annually Democratic Governance 3b) Score, Ratings Composite 5.50 5.5 5.5 5.5 5.5 5.5 4.75 5.5 5.25 5.5 5.5 (Impact/Context) National Years of 4} The Open Budget Score, planned Country 55 n/a 66 n/a 82 n/a 70 82 82 81 82 surveys Index (Impact/Context) Level 2015-16, 2017-18; 5} The Open Score, Government Index Country 0.48 0.61 0.63 0.57 0.57 0.59 0.71 0.59 0.62 0.57 0.58 Annually (Impact/Context) Level

CC1} Number of Rolling individuals who as participate in capacity Number, 566 events 0 68 606 529 1,572 737 650 3,512 400 1000 building events to Individual occur; strengthen national and reported local government quarterly

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 95 Targ et for Data Bas Target Base Exte Collectio Result Resul Result Result Result Targ Result Performance Indicator Unit e- Base Period nsio n Y1 tY2 Y3 Y4 Y5 et Y6 Y6 line Period Result n Frequen Perio cy d (Output/Custom)1 Rolling CC2} Number of as participants for GGI Number, 2,50 1,50 2,35 events 0 687 1,080 3,770 3,073 4,500 11,113 1761 organized events Participant 3 0 0 occur; (Output/Custom) reported quarterly

1.1} Percent of GOG agencies that Percent/ demonstrate improved GoG efficiency at the Agency 0 0 25.9 % 70% 82.8% 86.4% 100% 86.4% n/a n/a n/a Annual organizational and (cumulati human capacity level ve) (Outcome/Custom) 1.1a} Number of GoG agencies that Number, demonstrate improved GOG 0 0 n/a n/a n/a n/a n/a 15 8 17 32 Annual organizational and agencies human capacity level (Outcome/Custom) 1.2} Number of assisted GOG agencies and local governments with Number, budgetary processes GOG which are participatory, agencies 0 0 3 3 3 3 5 3 3 7 15 Annually evidence-based and (cumulati transparent (see PIRS ve) for index description) (Outcome/Custom)2

1 This indicator contributes to the following F Indicators- (GGI will provide data on these specific output F indicators as disaggregated) – “Number of training days provided to executive branch personnel with USG assistance” and “Number of national legislators and national legislative staff attending USG sponsored training or educational events (previous F Indicator)”

2 These indicators contribute to F and CDCS indicator “Number of sub-national entities receiving USG assistance that improve their performance”

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 96 Targ et for Data Bas Target Base Exte Collectio Result Resul Result Result Result Targ Result Performance Indicator Unit e- Base Period nsio n Y1 tY2 Y3 Y4 Y5 et Y6 Y6 line Period Result n Frequen Perio cy d 1.3} Number of improved HR Number, management tools Tools developed through GGI (Manage- 0 0 26 12 8 3 47 49 5 9 19 Quarterly assistance that are ment utilized by GOG tools) Agencies (Output/Custom) 1.4} Number of adopted mechanisms that Number, strengthen inter- Mechan- 0 0 3 1 7 9 14 20 4 16 30 Quarterly governmental reporting ism and coordination (Outcome/Custom)

2.1} Number of people participating in new or Number, 5,10 237,0 improved mechanisms 0 322 6,035 47,427 54,524 55,000 113,405 25,000 167,313 Quarterly People 0 00 for citizen participation3 (Output/Custom) 2.2} Number of new laws, policies, or Number, government actions Policy, resulting from an e- Law or 0 0 0 0 0 0 10 0 2 1 2 Quarterly petition that obtained Govern- 5,000 or more ment signatures Action (Outcome/Custom) 2.3} Number of Number, Rolling; communication pieces Communic 0 30 48 90 reported ation 0 27 20 38 49 45 134 on GGI-supported quarterly initiatives and activities Pieces

3 Contributes to FACTS and CDCS indicators “Number of local mechanisms supported with USG assistance for citizens to engage their sub-national government.” ; Number of governmental and non-governmental mechanisms supported with USG assistance for oversight of the executive branch”; “Number of public engagement tools/mechanisms utilized by the targeted GoG Agency”

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 97 Targ et for Data Bas Target Base Exte Collectio Result Resul Result Result Result Targ Result Performance Indicator Unit e- Base Period nsio n Y1 tY2 Y3 Y4 Y5 et Y6 Y6 line Period Result n Frequen Perio cy d disseminated to the public via media (Output/Custom) 2.4} Percent of completed responses to Percent (%) based 70% 75% 75% 75% Annually FOIA requests by GOG on 79% 72% 72% 78% 76% 90% 76% Partner Institutions progress (Outcome/Context) 2.5} Degree to which Percent government implements (%) based 25% 30% 66% 30% 64% 48% 50% 48% 70% n/a 70% Annually the OGP action plan on (Outcome/Context) progress

3.1} Number of draft laws accompanied by evidence-based Rolling; Number, 0 2 3 5 reported technical analyses Draft Laws 0 2 2 13 9 34 23 developed as a result of quarterly improved policymaking (Outcome/Custom) 3.2} Number of government policies considered in Rolling; accordance with new Number, 0 5 13 23 reported Policies 0 2 8 2 14 15 16 and upgraded systems quarterly and processes for improved policymaking (Outcome/ Custom) 3.3} Number of laws, policies, or procedures drafted, proposed or Number, adopted to promote Laws, Rolling; Polices, or 0 0 1 0 0 7 9 8 1 6 8 reported gender equality at the Procedure annually regional, national or s local level (Outcome/F Indicator)

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 98 Targ et for Data Bas Target Base Exte Collectio Result Resul Result Result Result Targ Result Performance Indicator Unit e- Base Period nsio n Y1 tY2 Y3 Y4 Y5 et Y6 Y6 line Period Result n Frequen Perio cy d 3.4 } Number of public forums resulting from Rolling as USG assistance in Number, events which national Public 0 5 17 24 3 14 6 6 14 53 43 occur; Forums legislators and the reported public interact (Output/F quarterly Indicator)4

4.1} Number of more effective/improved Number, oversight tools and Tools/ Mechan- 0 1 6 11 11 13 36 42 7 10 17 Quarterly mechanisms utilized by isms, Parliament Processes (Outcome/Custom) 4.2} Number of targeted public agencies utilizing more effective/improved internal control tools Number, GoG 0 0 2 4 7 3 6 16 3 7 13 Annually and/or mechanisms as Agencies a result of USG assistance (Outcome/Custom) 4.3} Number of national executive oversight actions taken by the Number, Oversight 0 0 33 30 50 59 110 172 50 58 88 Annually legislatures receiving Actions USG assistance (Outcome/F Indicator) 4.4.} Number of internal Number, control actions taken by Internal 0 0 17 8 9 15 38 49 6 7 13 Quarterly GOG Executive and Control Self-Government Actions

4.5.} Number of more effective/improved tools and mechanisms utilized by the SAO (Outcome/Custom)

4 Contributes to TAG illustrative indicator “Number of public forums resulting from USG assistance in which MPs and members of the public interact.”

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 99 Targ et for Data Bas Target Base Exte Collectio Result Resul Result Result Result Targ Result Performance Indicator Unit e- Base Period nsio n Y1 tY2 Y3 Y4 Y5 et Y6 Y6 line Period Result n Frequen Perio cy d Bodies receiving USG assistance (Outcome/Custom) Number, Tools/ Quarterly Mechan- 0 0 10 11 3 3 15 27 5 5 7 isms

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 100 APPENDIX A: SIGNIFICANT EVENTS UNDERTAKEN DURING THE CURRENT YEAR

STRATEGY ON HOUSING POLICY

USAID Good Governance Initiative (GGI) is supporting the Ministry of Internally Displaced Persons from the Occupied Territories, Labor, Health and Social Affairs of Georgia to develop a strategy on housing, addressing homelessness and related issues. The strategy will be developed in close coordination with the Administration of the Government of Georgia (AOG) to ensure compliance with the policy planning manual.

USAID GGI hired a Policy Planning Specialist, who will work with key Housing Experts, ISET and the Working group created by the Ministry for this specific assignment to ensure adherence of the policy formulation process with the GoG policy planning standards and facilitate the drafting of the manual.

This intervention will improve overall policy making process in the Ministry, strengthen linkages between policy planning and budgeting and build stronger mechanisms for improved monitoring and evaluation. Also, through this initiative, USAID GGI supports the AoG to meet its commitments taken under the Public Administration Reform Roadmap 2020.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 101 THEMATIC INQUIRY PROCESS FOR EUROPEAN INTEGRATION COMMITTEE

USAID Good Governance Initiative (GGI) is supporting the Committee on European Integration by providing expert support while conducting a thematic inquiry. National consultant will be working with the committee at every stage of the inquiry guiding the process and helping develop a detailed action plan as well as coach the committee in elaborating the Terms of Reference (ToR) using internationally established format. The committee will also be able to select candidates for public hearings, analyze the collected information and produce evidence-based final report.

The work is part of USAID GGI’s effort to strengthen Georgian Parliament’s oversight functions in accordance with the new Rules of Procedure (RoP), which was adopted last year. The RoP has introduced number of new tools in the Georgian Parliament’s oversight toolkit and Thematic Inquiry is one such mechanism. Georgian Parliament only recently took steps to institutionalize the practice of Thematic Inquiry. The European Integration Committee is conducting such an inquiry for the first time.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 102 DECENTRALIZATION REFORM IN PROGRESS

USAID Good Governance Initiative (GGI) is supporting the Ministry of Regional Development and Infrastructure (MRDI) in planning and implementing the decentralization reform. With the assistance of USAID GGI international and local experts, Strategic Review of key public services in Georgia such as transport, education, water and sewage services, and waste management, was conducted and each service analyzed based on the predesigned methodology. This comprehensive analysis served as a basis for the Government of Georgia (GoG) and MRDI to develop a set of evidence-based decisions and vision regarding further decentralization of public services.

One of such services include delegation of school rehabilitation and maintenance to the local governments, along with the other potential services that are debated to be transferred: a) Welfare assistance; b) Theatres and museums with local importance and c) Health Care Provision (rural doctors and nurses; ambulance services).

Due to the extremely comprehensive nature of work that needs to be done, and the complexities involved, USAID GGI hired a local consultant to help the Ministry staff to develop a set of practical instructions on how to transfer functions to the municipalities, including forms of transferring, analysis of costs for transferred tasks and other key issues related to decentralization of services.

The GoG started to develop the National Decentralization long-term Strategy and action plan for good governance at the local level as part of the Public Administration Reform Roadmap 2020. Transferring of new functions and finances to local governments and improvement of local capabilities in service delivery were identified as core priorities.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 103 PLS HANDBOOK FOR MPS

USAID Good Governance Initiative (GGI) has been supporting the Parliament of Georgia in strengthening its oversight capacity in line with the new tools introduced by the Parliament following the revision of the Rules of Procedure (RoP) last year. In line with this work, USAID GGI piloted Post Legislative Scrutiny (PLS) in the Environment and Healthcare Committees. This process helped create a community of practice in the Georgian Parliament aimed at institutionalizing this new oversight mechanism.

As part of the capacity building process, USAID GGI helped develop a user-friendly PLS guide, which lays out full implementation cycle of PLS based on best international practices and Georgian legislative framework. the guide was distributed to all the MPs at a Fall Session, as more and more Committees are encouraged to practice this essential tool of parliamentary oversight. The guide promises to serve as a primary document on PLS conduct in the Georgian Parliament for both MPs and the staff engaged in the day-to-day Committee work.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 104 THEMATIC INQUIRY ON MANDATORY PERIODIC TECHNICAL VEHICLE INSPECTION

USAID Good Governance Initiative (GGI) is supporting the European Integration Committee in piloting the Committee’s first thematic inquiry on mandatory periodic technical vehicle inspection, which was put in place in the beginning of the current year. The new Rules of Procedure (RoP) mandates the Parliamentary Committees to conduct thematic inquiries on diverse issues of public relevance. The practice of utilizing this critically important oversight tool was introduced only recently in the Georgian Parliament and the Committees are currently learning how to manage the public inquiry process. USAID GGI will work with the Committee on European Integration throughout the Fall Session to help guide this work and assist in establishing a thematic inquiry process based on the best international practices.

The Committee Chair Tamar Khulordava announced the launch of the inquiry on October 18 at an information session held with the participation of civil society representatives and NGOs. The Chair highlighted high public interest towards the reform, which introduced the mandatory inspection and detailed the ways the public can get engaged in the Committee inquiry process. “Without your participation this process will not come to fruition, so I very much hope for efficient, active, and fruitful cooperation,” – Khulordava told the audience. The Chair also thanked USAID GGI for its continuous support in strengthening of Parliament’s oversight capacity.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 105 TAX EXPENDITURE ASSESSMENT METHODOLOGY

USAID Good Governance Initiative (GGI) is supporting the Ministry of Finance of Georgia (MoF) to make Georgia’s fiscal transparency practices more open, clear, comprehensive and in line with established policies.

The expert will study local context in relation to the size of the tax expenditures in Georgia and review international experience. Based on these efforts, in cooperation with the MoF staff, a comprehensive and user-friendly tax expenditure assessment methodology will be developed.

In 2017, per request of the MoF, IMF Fiscal Affairs Department conducted a fiscal transparency evaluation of the Georgian public finance system and issued a report. The fiscal transparency evaluation report provides detailed analysis of the fiscal transparency practices in Georgia based on IMF’s Fiscal Transparency Code. Tax expenditure is one of 11 recommendations that IMF has recommended to address under the areas where Georgia’s fiscal transparency practices could be further improved.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 106 COMMUNICATION STRATEGY FOR PAI

USAID Good Governance Initiative (GGI) assisted Public Audit Institute (PAI) to develop a solid communication strategy and action plan.

Among other activities, GGI also supported PAI to develop its medium-term strategic plan outlining the mission, vision and strategic/operational objectives.

Further support actions include rebranding of the PAI and implementation of the communication strategy.

GGI plans to provide major support to the Institute, which strives to become an effective and popular educational center providing innovative and practical public as well as private sector trainings in the area of finance management.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 107 COMMITTEE WORKSHOP ON PLS

USAID Good Governance Initiative (GGI) supported its partner Parliamentary Committee staff (Procedural, Environment and Healthcare) to organize a workshop on Post-Legislative Scrutiny (PLS). The workshop was conducted by three parliamentary staffers who attended a week-long certified PLS course in London supported by USAID GGI. After returning to Georgia, the staffers designed a training course for Committee staff, which aimed at sharing knowledge and experience acquired at the course and during practical work on PLS in their respective Committees. The workshop content was developed in cooperation with the Parliamentary Training Center and covered general overview of Parliamentary oversight in the Committees, implementation stages of PLS, as well as practical exercise where the participants tested the newly acquired knowledge.

USAID GGI has been supporting the Parliament of Georgia in institutionalizing new oversight tools introduced following the revision of the Rules of Procedure (RoP) last year. In line with this work, USAID GGI piloted Post Legislative Scrutiny (PLS) in the Environment and Healthcare Committees to create a community of practice aimed at strengthening the Parliament’s oversight functions.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 108 QUALITY IMPROVEMENT AND CONTROL OF INTERNAL AUDIT FUNCTIONS

USAID Good Governance Initiative (GGI) is supporting partner Internal Audit (IA) Unit at Batumi Municipality to address important challenges, including quality control in managing internal audit functions and the quality improvement in conducting audit at public organizations. USAID GGI’s consultant is working to familiarize relevant staff with the standards that need to be adhered, which are established within the internal audit International Professional Practices Framework (IPPF).

The agencies are learning how internal audit function can establish quality assurance and improvement practices as an ongoing monitoring effort, in compliance with Georgia`s public sector internal audit methodology (2016).

The consultant also plans to coach the internal audit teams in how to conduct internal assessment of quality and prepare appropriate quality control template for conducting efficient quality assessments in- house. He will also support Batumi IA unit to elaborate internal audit key performance indicators (KPI) and develop the internal audit quality assurance instruction.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 109 PUBLIC-PRIVATE HR FORUM

USAID Good Governance Initiative (GGI) supported Civil Service Bureau (CSB) in organizing a Public-Private HR Forum on November 18, 2019. The forum aimed at sharing practical experience between the private and public sectors. It was attended by 110 HRs representing public agencies including Ministries, LEPLs, Municipalities and more than 20 HRMs from the private sector.

Head of CSB Ms. Catherine Kardava and Governance Specialist from USAID Democracy and Governance Office Ms. Lina Panteleeva opened the Forum, which was followed by a moderated panel discussion led by Mary Gabashvili from CSB. Panelists from public sector included representatives from the Ministry of Defense, Khobi Municipality and HR managers from the State Audit Office, Adjara Group and Public Health Organization.

The forum was held within the frames of the high-level event dedicated to the 5-year anniversary of the Civil Service Reform. At the mentioned event, CSB also presented the demo version of its new website, created with the support of USAID GGI.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 110 STRATEGIC LEADERSHIP TRAINING FOR CIVIL SERVANTS

With support of USAID Good Governance Initiative (GGI) a three-day training was organized for various ministry representatives and the Civil Service Breau. The training aimed at enhancing organizational performance and employee engagement through becoming familiar with the key challenges and approaches of contemporary strategic leadership.

The participants were exposed to key leadership theories, concepts and practices.

The training participants were given various practical examples to relate to, as well as interesting exercises to assess their own leadership strengths and areas for improvement. They applied practical approaches, tools and techniques to develop and enhance their leadership skills and abilities.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 111 STATE INSPECTOR’S OFFICE DISCUSSED ITS 2020 PRIORITIES

On December 8-9, 2019, with support of USAID Good Governance Initiative (GGI) representatives of the State Inspector’s Office (SIO) gathered in Kakheti to hold a workshop discussing organizational and personal data protection priorities for 2019.

Against the background of the agency’s significant functional overhaul and structural enlargement in 2019, the office is in the process of defining its strategic priorities and action plan. During the workshop, SIO staff actively discussed existing challenges, the complexity of personal data protection and major interventions to address the most pressing priorities. Awareness-raising of the population as well as organizations on personal data protection remains to be high on the agenda. One of the new challenges that was recognized, related to tracking SIO recommendations and the status of their implementation.

During the workshop, key areas were also identified were USAID GGI is planning to support SIO.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 112 HOUSING POLICY WORKING GROUP MEETING

On December 13, 2019, with support of the USAID Good Governance Initiative (GGI), a working group meeting of the intergovernmental commission on Housing Policy was held.

The meeting was opened by Ms. Tea Gvaramadze, Head of the Pension and Social Service.

The meeting participants discussed the context and alternatives of the housing policy as well as agreed on the next steps.

Based on the State Strategy on Human Rights 2014-2020, the Government of Georgia acknowledged the housing rights of its citizens and expressed readiness to address this problem. Against this background, the Ministry of Internally Displaced Persons from the Occupied Territories, Labor, Health and Social Affairs of Georgia intends to create a long-term strategy on housing. USAID GGI supports the process by engaging local housing experts as well as providing the Ministry with the technical support and coaching on RIA.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 113 PARTICIPATORY BUDGETING FORUM IN BATUMI

On December 14, 2019, Modern Art Space in Batumi hosted the Participatory Budgeting (PB) Forum organized within the frames of the PB campaign “Your Idea to the City,” implemented by USAID Good Governance Initiative (GGI) contractor company Civil Society Institute.

The objective of the forum was to gather representatives of participatory budgeting campaign from all three USAID GGI partner municipalities as well as local government staff from Batumi, Kutaisi and Akhaltsikhe to put forward and share their experiences and knowledge gained during the campaign, what worked and what did not, whether the public awareness campaign on PB raised the level of citizen involvement to submit projects and proposals for inclusion in the 2019 and 2020 budgets of all three municipalities.

The speakers discussed major legal, financial and promotional challenges as well as much needed future interventions.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 114 ANTI-CORRUPTION DAY

Georgia has joined the celebration of the International Anti-Corruption Day on December 9th by series of events. Specifically, USAID Good Governance Initiative (GGI) supported Anti- corruption Council Secretariat to meet the representatives of local governments, as well as students at a different venue to discuss existing challenges and strides in fighting corruption.

USAID through its Good Governance Initiative is providing support to the Anti-corruption Council and its partner agencies within at both central and local levels to carry out measures to prevent and combat corruption more efficiently and effectively through developing and implementing Building Integrity and Transparency Strategies. Continuous implementation of anti-corruption reforms, including fight against complex and high-level corruption is an important challenge for many countries, and so it is for Georgia as well.

USAID will continue its support in 2020 with a special focus on Municipalities.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 115 PUBLIC SERVICE DELIVERY INDEX

On December 17, 2019, USAID Good Governance Initiative (GGI) provided support to Public Service Delivery Agency (PSDA) to organize a workshop and discuss draft concept and methodology of the Public Service Delivery Index.

The report was developed by USAID GGI international and local experts. The objective of the report is to develop a unified standard for public service design and delivery that will be universal across all public service provider agencies, including design, delivery, pricing and quality assurance of public services in Georgia.

Zura Sanikidze, Chairman of Public Service Delivery Agency and Levan Samadashvili, USAID GGI Chief of Party opened the meeting and stressed the importance of measuring service delivery components. Morten Nielsen from the United Nations University shared the international experience on Service Index, while Irakli Gvenetadze presented the Georgian Service Index Concept.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 116 INTER-MUNICIPAL COOPERATION WORKSHOP

On December 18, 2019, USAID Good Governance Initiative (GGI) helped Ministry of Regional Development and Infrastructure (MRDI) to organize a workshop on Inter-Municipal Cooperation (IMC). Specifically, the presentation focused on explaining the establishment and management procedures of a joint NNLE of Municipalities on the example of a “Shelter for Stray Animals”.

USAID GGI expert Giorgi Toklikishvili shared details such as the decision-making process, budget, finances, property, supervision and accountability with regard to establishing such, inter-municipal entities. The presentation was followed by an active discussion and summoned by identifying future steps and plans.

The workshop was attended by the representatives of the Ministry of Regional Development and Infrastructure, Ministry of Finance, Kakheti and Shida Kartli municipalities, Association of Finance Experts of Local Self-Governing Units, etc.

Overarching goal of this intervention is to support MRDI in creating favorable legal framework encouraging successful inter-municipal cooperation.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 117 HEALTHCARE COMMITTEE PRESENTATION

The Healthcare and Social Issues Committee requested USAID GGI to assist in analyzing two state programs: The State Program on the Provision of Medicine for Chronic Diseases and the Universal Healthcare Program. USAID GGI supported the initiative with the aim to help establish standardized evaluation matrices that will allow for better monitoring of the mentioned state programs with the focus on keeping a constant eye on government spending.

With the assistance of an external expert and active participation of the Committee staff, GGI helped develop these tools facilitating future routine evaluation of these programs by the Committee. In addition, these matrices serve an important goal of providing an example of systematically monitoring and overseeing government performance.

On Wednesday, December 18, a presentation of both matrices was held at the Healthcare and Social Issues Committee. The meeting was well attended. The newly elected Committee Chair, the Committee MPs, the Committee staff, invited experts and representatives from the Ministry of Healthcare, including the Deputy Minister were present. The participants engaged in an extensive discussion and actively scrutinized the new tool that will allow for better monitoring and oversight of the government programs. The Committee plans to further hone this instrument by adding new data as it becomes available in 2020.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 118 THEMATIC INQUIRY ON MANDATORY PERIODIC TECHNICAL VEHICLE INSPECTION

USAID Good Governance Initiative (GGI) is supporting the European Integration Committee in piloting the Committee’s first thematic inquiry on mandatory periodic technical vehicle inspection. The Inquiry is undertaken jointly with the Sectoral Economy and Economic Policy Committee to assess the reform a year after its inception. The practice of utilizing this critically important oversight tool was introduced only recently in the Georgian Parliament and the Committees are currently learning how to manage the public inquiry process. USAID GGI is working with the Committee to assist in establishing a thematic inquiry process based on the best international practices.

On November 12, former Committee Chair Tamar Khulordava led the first public hearing session on the topic. Based on the Terms of Reference (ToR) created as part of the inquiry process, all interested parties who submitted written evidence had a chance to present their testimonies to the Committee working group. In a question and answer session the Committee Chair clarified details and asked follow-up questions. “Our aim is to gather information from everyone, and we want the final thematic inquiry report to reflect the views provided by all the sides,” – Khulordava said.

As a next step, on December 23, 2019, the European Integration and Sectoral Economy and Economic Policy Committees held another public hearing with the participation of the State agencies to listen to the participants’ testimonies and ask specific questions. The representatives of the State agencies spoke about the measures that have already been taken in their respective areas and shared their views on how to overcome existing challenges and obstacles. It was noted that public awareness raising plays an important role in the process of introduction of modern standards of technical vehicle inspection, as well as fair/honest approach from citizens towards the inspection process itself.

According to the new Chairman of the European Integration Committee Davit Songulashvili, submitted information will be processed and will be reflected in the final Committee report.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 119 MINISTRY OF FINANCE’S PRESENTATION ON OPEN BUDGET

On December 24, 2019, USAID Good Governance Initiative (GGI) provided support to the Ministry of Finance of Georgia (MoF) to organize an event on Open Budget, Citizens’ Participation and Improved Financial Management in Municipalities. The meeting was well attended by representatives from different ministries, municipalities, donor community and civil society.

Deputy Minister of Finance Mr. Giorgi Kakauridze opened the meeting and overviewed budget transparency issues at central and local levels. Later the signing ceremony of the “Memorandum of Understanding with Municipalities” was held and key objectives, tasks and indicators for the 2020-2022 Memorandum were underscored.

MoF representatives also presented Citizen's Guide to the budget 2020, reviewed Citizen Engagement Mechanisms in Budget Planning (e-BTPS) and distributed brochures printed with support of USAID GGI.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 120 OGP FORUM MEETING

On December 27, 2019, USAID Good Governance Initiative (GGI) supported the Administration of the Government (AoG) to organize Open Government Partnership (OGP) Forum in the Ceremonial Palace of Georgia.

OGP Forum was co-chaired by Natia Mezvrishvili, Head of the AoG Administration and Giorgi Oniani, Deputy Executive Director of TIG.

The Forum discussed the new vision of AoG to improve OGP coordination at the national level. The participants also presented reports with regard to fulfilment of the current, ongoing action plan. The criteria for engaging additional non-governmental organizations in the Forum was also discussed.

In total, over 50 representatives attended the forum including municipalities, civil society, government agencies and donor community. The participants agreed on the steps forward including the process of developing the new OGP NAP. DEVELOPING OPEN DATA PRACTICES IN SELECTED MUNICIPALITIES

In line with 2020-2025 Decentralization Strategy of Georgia and national anticorruption framework, City Halls of Gori, Lagodekhi, Ozurgeti, Senaki, Telavi and Zugdidi Municipalities made a decision to develop their Open Data management practices. USAID Good Governance Initiative (GGI) will provide support to the mentioned City Halls by strengthening good governance and improving their understanding on the open data policy.

The selected company will conduct capacity needs assessment in the above-mentioned municipalities followed by robust capacity building activities for the municipal staff to successfully collect, process and publish open government data in practice.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 121 2020-2025 Decentralization Strategy of Georgia makes particular emphasis on establishment of trusted, accountable, transparent and result oriented local self-governance, while National Anti-Corruption Action Plan of Georgia for 2019-2020 envisages improvement of the practice of open data collection, processing and publishing at pilot municipalities.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 122 USAID GGI STRENGTHENS CAPACITY OF REGIONAL BUREAUS OF INFORMATION CENTER ON NATO AND EU

Russia’s disinformation and propaganda campaigns are significant concerns for Georgia and rest of the world. By spreading anti-Western lies and deception Kremlin aims at undermining democratic values, democratic consolidation process and institutions in Georgia, as well as Georgia’s foreign policy aspiration to join NATO and the EU. Information Center on NATO and EU under the MFA plays crucial role in the process of combating these threats as well as in boosting the public knowledge on NATO and EU as well as Georgia’s European and Euro-Atlantic integration process.

In order to maximize its efforts at the local level, USAID Good Governance Initiative (GGI) will be assisting the Regional Bureaus of the Centre by strengthening capacity of their Representatives. USAID GGI’s consultant, based on international experience and case studies will develop and conduct Training of Trainer (ToT) module on combating Russia’s propaganda and disinformation in Georgia for around 10-15 representatives of the Center. This will enable the regional representatives to independently conduct later high-level trainings and capacity-building activities for the public servants and various focus groups at the local level.

In addition to this, USAID GGI is currently recruiting two fellows to be placed with Regional Bureaus of the Information Center on NATO and EU in Batumi and Kutaisi. The selected fellows will assist the Bureau representatives in planning and implementing an intensive information and education campaign in the region, also cooperate with academia representatives, governmental and non-governmental organizations as well as regional media and support in implementation of ongoing projects.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 123 OPEN GOVERNMENT TRAINING

USAID Good Governance Initiative (GGI) hired two consultants to develop Open Government Training Module and Conduct Trainings for Municipal Staff.

USAID GGI facilitates inter-municipal cooperation on Open Government Partnership (OGP) to raise awareness on this initiative, inspire local leaders to join the OGP movement and ensure peer learning and experience sharing. It is notable that with GGI’s advocacy efforts, currently 11 municipalities of Georgia participate in the OGP and implement their commitments under National Action Plan.

The objective of this particular assignment is to deliver up-to-date information to local government staff from selected municipalities on Open Government Partnership (OGP) platform and increase their awareness of key principles of open government such as the transparency, accountability, civic engagement and access to new technologies.

USAID GGI’s consultants will develop training module and conduct trainings for around 55 local government employees from selected municipalities.

Through this intervention, GGI supports Government of Georgia’s efforts to improve good governance at all levels.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 124 MUNICIPALITIES GET HELP WITH BUILDING INTEGRITY AND TRANSPARENCY STRATEGY

With the assistance of USAID Good Governance Initiative (GGI), Zugdidi, Senaki, Telavi, Gori and Lagodekhi Municipalities will develop Building Integrity and Transparency Strategies and Action Plans, while Ozurgeti Municipality will elaborate monitoring framework for its anti-corruption strategy. It should be noted that among other important recommendations concerning the fight against corruption at the national level, the OECD lays emphasis on the local-self-governments and recommends Georgia to “Promote the development and implementation of an Anti-Corruption action plan for the local self-government level”.

The objective of this assignment is to establish an ambitious anticorruption framework and guide the City Hall’s to mitigate and manage the risks of corruption.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 125 IPSAS TRAINING FOR SAO AND PAI STAFF

With USAID Good Governance Initiative (GGI) support, State Audit Office and Public Audit Institute staff held a joint two-day workshop regarding the financial accounting- reporting methodology prepared on the basis of the IPSAS. The workshop took place on March 7-8, 2020 and was attended by 19 people in total. The workshop was led by Zurab Tolordava, Head of the State Treasury Reporting and Methodology Department of the Ministry of Finance of Georgia. The participants were introduced to the financial accounting-reporting regulatory normative acts as well as recommendations on the use of IPSAS. Structure of the accounting reports plan prepared on the basis of IPSAS was also reviewed at the workshop. Other major aspects discussed included requirements for developing accounting policy and exceptions permitted by the instruction in the process of conducting accounting in line with IPSAS.

The workshop was also useful in terms of preparing for the transitional action plan.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 126 PUBLIC CONSULTATIONS ON POLICY DOCUMENTS

Administration of the Government (AoG) approached USAID Good Governance Initiative (GGI) with a request to improve its policy planning and coordination practices by ensuring better citizen engagement and introducing more open and transparent policy planning processes. Respectively, USAID GGI’s consultant has already started to provide assistance to the AoG staff to develop the guidelines on Public Consultations as an annex to the new Policy Planning Handbook recently adopted by the GoG Resolution defining open consultations as a mandatory component of policy development process.

AoG has developed a set of regulatory and methodological documents, which establishes more coherent Policy Planning and Coordination system at the central government level. The system envisages mandatory requirements for public consultations for all relevant policy documents prior to their formal approval.

Through this intervention, GGI supports AoG to meet its commitments under Public Administration Reform Roadmap 2020 and Public Administration Reform (PAR) Action Plan (AP) 2019-2020.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 127 AOG PROMOTES OPEN GOVERNMENT PARTNERSHIP

USAID Good Governance Initiative (GGI) will be assisting Administration of the Government (AoG) to increase public awareness on Georgia’s participation in the Open Government Partnership (OGP) and ongoing open government reforms in the country through public information campaign. The work will be done by USAID GGI expert, who will provide AoG with the OGP communication strategy and the Action Plan (2020-2021) along with the monitoring framework as well as the brand book for OGP Georgia.

In close cooperation with the AoG PR staff, the consultant will develop set of recommendations for further improvement and streamlining of ichange.gov.ge petition portal.

Georgia has taken a leadership role in OGP by serving as the Co-Chair in 2016, hosting the 2018 OGP Global Summit, and being elected to the OGP Steering Committee in 2019. The OGP coordination function and respective secretariat was transferred from the Ministry of Justice to AoG in 2019, and the latter is looking forward to better promote OGP platform, Georgia’s participation in the OGP and open government reforms nationwide.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 128 COMMITTEE THEMATIC REPORTER PRESENTS REPORT ON PUBLIC PRIVATE PARTNERSHIP

In order to improve Parliament’s legislative and oversight functions and the quality of Committees analytical output, the new Rules of Procedure (RoP) of the Georgian Parliament has introduced a position of Committee Thematic Reporter. The Committees are now obliged to allocate thematic areas/directions to Committee MPs based on respective action plans. Thematic reporters are expected to analyze and prepare reports on issues in their focus, which are reviewed by the Committee. Since the adoption of the new RoP, the Parliament of Georgia has started to gradually utilize this important oversight tool.

MP Nino Tsilosani, member of the Sectoral Economy and Economic Policy Committee is one of the frontrunners to initiate the work on a thematic report. The main focus of the report was to study the law of Georgia on public-private partnership (PPP), the existing enforcement practice and to explore the challenges and ways of further development. USAID/GGI took the initiative to support the MP and its partner Sectoral Economy and Economic Policy Committee in order to help establish a clear scope of thematic reporter’s work and provide expert assistance in order to table a sound analytical report.

On the 3rd of February 2020, MP Nino Tsilosani presented the final report on the topic of the Law of Georgia on Public and Private Partnership to her colleagues at the Sectoral Economy and Economic Policy Committee sitting. In her presentation, MP Tsilosani laid out existing practice and challenges and familiarized the audience with the recommendations summarized in the report. The presentation was followed by a Q&A session. The Committee Members engaged in an active discussion asking questions and sharing their views on the report.5

5 http://www.parliament.ge/ge/saparlamento-saqmianoba/komitetebi/dargobrivi-ekonomikisa-da- ekonomikuri-politikis-komiteti/axali-ambebi-dargobrivi/dargobrivi-ekonomikisa-da-ekonomikuri- politikis-komitetis-sxdoma-03022020.page

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 129 USAID GGI PROVIDES HELP TO MUNICIPALITIES IN THE DEVELOPMENT OF PRIORITY DOCUMENTS, PROGRAM BUDGETS AND CITIZEN GUIDES

USAID Good Governance Initiative (GGI) will be supporting its partner (Kutaisi, Batumi, Akhaltsikhe) and non-partner (Dedoplistskharo, Kaspi) Municipalities in the development of FY2021-2024 Priority Documents, FY2021 Program Budgets and Citizen’s Guides. The objective of this assignment is to further strengthen public financial management capacity of the above municipalities.

USAID GGI contractor will initiate meetings and consultations to analyze FY2020 budget implementation, identify mid-term priorities/directions, program-related costs, etc. to develop Priority Document and program-based budget. Training/coaching will also be provided to the municipal staff to develop budget requests. The municipalities will get help with finalization of FY2021 programs, sub programs and performance indicators and with development of Citizens’ Guide for the local budget for FY2021.

According to the Budget Code of Georgia, the local governments have been developing budgets in a program format since 2013 and USAID GGI has been providing technical assistance to its partner local governments since 2016 to make local budgetary processes more transparent, participatory, evidence based, and in full compliance with the MoF requirements.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 130 THEMATIC INQUIRY WG PRESENTS REPORT ON ANTI-WESTERN DISINFORMATION AND PROPAGANDA

Georgian Parliament’s Foreign Relations Committee initiated a thematic inquiry on the topic of Disinformation and Propaganda, which was completed recently. Relevant Working Group (WG) researched and analyzed major challenges and problems existing in the country on the mentioned issues and provided recommendations to relevant agencies. The topic is of high public interest and has been flagged as a security challenge for Georgia by number of governmental and non-governmental organizations. The Westminster Foundation for Democracy (WFD) supported the Foreign Affairs Committee during the inquiry process, while USAID GGI provided support in drafting and completing the report by engaging independent experts.

As part of the thematic inquiry process, the Committee WG developed terms of reference, collected written evidence and held hearings with the state and non-governmental organizations. In total, 23 organizations were involved in the inquiry process.

On February 3, 2020, the report was presented to the wider audience by Member of Parliament Nino Goguadze, who is also the Chief Rapporteur of the WG on Disinformation and Propaganda. Deputy Speaker of the Parliament, the Head of the European Integration Committee, members from the ruling party, as well as independent MPs and WG members, invited experts, representatives from the CSOs, media and embassy representatives attended the event.

The presentation was followed by a Q&A session. The participants engaged in an active discussion asking questions and sharing their views on the document and the situation more broadly. The second part of the event was dedicated to the measures to be implemented for 2020 Parliamentary Elections in the disinformation and propaganda context. The participants highlighted the need to develop and implement efficient and effective policies against the spread of disinformation and fake news. High significance of multi- agency involvement in the process by active cooperation with the civil society was also mentioned.

USAID GGI’s support was instrumental not only in terms of advancing the topic of disinformation and propaganda and facilitating more evidence-based, consistent policy formation, but also institutionalization of thematic inquiry process as a relatively new instrument of parliamentary oversight.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 131 PUBLIC DISCUSSIONS ON TBILISI BUILDING INTEGRITY AND TRANSPARENCY STRATEGY

Starting from January 27, 2020, Tbilisi City Hall and Georgian Young Lawyers’ Association (GYLA) organized series of public discussions on draft Tbilisi City Hall Building Integrity and Transparency Strategy and Action Plan in Saburtalo, Didube and Gldani Gamgeobas. Members of condominiums attended the meetings and were actively involved in the discussions.

On January 30, 2020, Tbilisi City Hall together with GYLA invited GoG agencies, CSOs, working groups (WG) members, donor organizations, and other stakeholders to attend the enlarged format of the discussion. GYLA prepared one-pagers depicting key aspects of the Strategy and AP and delivered to the attendees.

Based on the public discussions, GYLA will develop final draft of the Strategy and Action Plan and hold a workshop with the City Hall leadership/OGP WG. The Strategy and Action Plan will be finalized based on the workshop results and submitted to the City Hall for approval.

First Deputy Mayor Khmaladze confirmed Tbilisi City Hall’s readiness to approve the strategy and action plan.

CIVIL SERVICE LEGISLATION MONITORING

Practical implementation of the new civil service legislation (CSL): what works and what does not in practice - this is what Civil Service Bureau (CSB) plans to research with support of USAID Good Governance Initiative.

Engaging the staff from Analytical, Administrative and HR Departments, CSB plans to analyze competitions in the civil service, including open, closed and simplified competitions and their

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 132 implementation stages as well as composition and operation of competition commissions. CSB will also study court decisions in relation to the recruitment and dismissal practices in the civil service.

USAID GGI consultant will help CSB staff through the whole process including providing training and coaching activities.

This activity will help CSB raise its research capacity and make sure that, in the future, the Bureau is able to independently carry out similar tasks.

In parallel to this activity, CSB also plans to analyze effectiveness of existing mechanisms preventing political influence in civil service with a particular focus on managerial positions in ministries. USAID GGI will hire an expert to support CSB and the working group created by the CSB to conduct respective research and develop recommendations.

By this intervention, CSB will meet its commitments under Public Administration Reform PAR AP 2019-2020.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 133 ASSESSMENT OF SELECT MUNICIPALITIES WITH PEFA INDICATORS

USAID Good Governance Initiative (GGI) started support to Akhaltsikhe, Zugdidi, Gori, Ozurgeti and Telavi municipalities to strengthen their public finance management credentials. This process will be facilitated by an expert, who will assess the public finance management system of these municipalities using Public Expenditure and Finance Accountability (PEFA) indicators. PEFA, as one of the strongest tools for assessment of the efficiency of public expenditure and finance accountability, objectively assesses public (Municipality) finance management quality. Using the quantitative indicators, it is designed to provide a snapshot of PFM performance at specific points in time using a methodology that can be replicated in successive assessments, giving a summary of changes over time.

Apart from PFM system assessment, specific recommendations and activities will be developed for the municipalities in order to improve the gaps observed as a result of the assessment. PFM system assessment will also be carried out through additional gender indicators to assess Gender Responsive Public Finance Management.

According to 2018-2020 PFM reform strategy (PFMRS), the main goal of the Government of Georgia is to ensure rational use of public finances. In order to achieve this goal, it is important to strengthen PFM systems that ensures fiscal discipline, efficiency and effective allocations of public resources in Georgia.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 134

DEVELOPING PICD STRATEGY AND ACTION PLAN

USAID Good Governance Initiative (GGI) consultant will support Public Internal Control Department (PICD) to develop strategic and action plan including monitoring and evaluation (M&E) plan of the strategy, risk control and mitigation matrix. This activity is based on the PICD and public internal financial control (PIFC) system gap analysis conducted by SIGMA (support for improvement for governance and management), European Union (EU) and Organization for Economic Co-operation and Development (OECD) joint initiative.

The PICD team with a consultant support will develop the PICD mid-term (2020-2023) strategic development plan as well as PICD action plan for 2020-2021 including detailed activities’ budget. Also, monitoring and evaluation (M&E) plan of the strategy along with risk control and mitigation matrix will also be elaborated. USAID GGI has long been working with the PICD and select municipalities’ internal audit units to build their general capacity with a particular focus on strengthening their oversight and auditing capabilities: fraud audit prevention, detection and report writing trainings for public internal auditors at central and local levels have been conducted, as well as gap analysis of Financial Managerial Controls (FMC) in eight municipalities with relevant recommendations have been developed for the authorities of PICD and respective municipalities. This time, USAID GGI will be helping PICD to develop a four-year strategy, which is crucial for PIFC system implementation in Georgia.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 135

PROMOTING E-BUDGET TRANSPARENCY AND PARTICIPATION SYSTEM

USAID Good Governance Initiative (GGI) will support the Ministry of Finance (MoF) to improve citizen engagement in the budget process by promoting the use of the Electronic Budget Transparency and Participation System (e-BTPS), which was created with USAID GGI support under the grant project entitled: “How Good Governance Works in Practice: New e- Governance Initiatives to Meet OGP Principles in Georgia” co-financed by the Estonian Ministry of Foreign Affairs.

USAID GGI recruited PR expert who will support the MoF to develop and implement a communication strategy and Action Plan for promoting the e-BTPS, including implementing awareness raising within the government agencies as well as general public. It was decided that two pilot ministries, identified by the Ministry of Finance, will start with the use of the e-BTPS as an instrument for engagement of regular citizens and interested groups to plan and prioritize the budget programs for 2021 budget. Additionally, the trainings will be conducted for the budget and PR staff of the MoF and selected pilot ministries to ensure the proper use of the e-BTP system.

With that intervention, USAID GGI will help the MoF to implement commitment under the 2019- 2020 PAR AP aiming at providing further transparency of the budget process and citizen participation in order to enhance accountability.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 136

FOI REQUEST VIOLATIONS AND HOW TO IMPROVE THE PROCESS

USAID Good Governance Initiative (GGI) will support the Office of Public Defender of Georgia to streamline and improve internal business processes to promptly and effectively analyze as well as respond to the appeals of citizens of Georgia on Freedom of Information (FoI) request violations by the public institutions.

USAID GGI has hired a consultant to work with the Office of Public Defender of Georgia. The consultant will conduct survey to identify challenges related to the access to public information in terms of existing practices of public agencies as well as courts. The findings will be converted into a comprehensive analytical report with recommendations considering best international practices and experiences. The final output developed by the consultant will be guidelines with a set of recommendations to improve business processes at the Public Defender’s Office to respond effectively to the appeals from the citizens on FOI request violations.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 137

PUBLIC INVESTMENT MANAGEMENT GUIDELINES

The Public Investment Management (PIM) Guidelines assist government entities to evaluate capital investment proposals in a consistent and comprehensive manner. These guidelines enable them to prioritize competing projects, in the context of the national and sector strategic planning and budget preparation processes. There is already a methodology and a technical manual developed for standardized and more effective management of the public investment projects. It ensures consistency and standardization in the project pre-selection, appraisal and selection/ budgeting process. With coordinated efforts of the World Bank and USAID Good Governance Initiative (GGI), an introductory training was also held to the staff of spending agencies to pilot PIM Guidelines and manual in practice, though there is still a need to embed PIM methodology in a practical work of the GoG agencies.

USAID Good Governance Initiative (GGI) has contracted an experienced consultant with practical knowledge on PIM methodology application, who will work with selected line ministries to coach them to develop the project concept papers and their budgets. The consultant will also support Ministry of Finance (MoF) to improve its capacity and coach relevant line ministries and municipalities in preparation of more comprehensive and credible project proposals, utilization of project preparation methodologies and techniques and conducting more thorough project appraisals.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 138

GUIDELINES ON IPSAS 32

USAID Good Governance Initiative (GGI) will be assisting Ministry of Finance to make Georgia’s fiscal risk assessment practices more open, clear, comprehensive and in line with established policies.

USAID GGI has already supported MoF to develop fiscal risk assessment report and include liabilities of Public Private Partnerships (PPP) calculated in accordance to International Public Sector Accounting Standards 32 (IPSAS). The later sets out the accounting requirements of the grantor in a service concession arrangement and is adapted from Interpretation 12 (IFRIC 12), Service Concession Arrangements, developed by the International Financial Reporting Interpretations Committee and published by the International Accounting Standards Board (IASB).

The consultant works closely with the MoF staff to develop the Guideline on IPSAS 32 with theoretical and practical examples relevant to Georgia.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 139

USAID GGI IS SET TO PROVIDE MAJOR ORGANIZATIONAL SUPPORT TO STATE INSPECTOR’S OFFICE

USAID Good Governance Initiative (GGI) will be supporting State Inspector’s Service of Georgia (SIS) in several directions. Firstly, it was agreed that several case studies will be developed illustrating practical examples of personal data protection/violation and suggest ways to prevent them in the future. This is an important awareness-raising initiative for legal entities as well as physical persons, to be more vigilant in terms of personal data protection. A local consultant will be hired for this purpose, to develop case studies in two areas of health and juvenile, at this stage. SIS will also be supported to introduce performance evaluation system tailored to SIS requirements/specifications and raise its capacity in developing job descriptions for around ten key positions in accordance with the civil service law and relevant bylaws. SIS will be provided with practical recommendations and detailed instructions for carrying out job analysis and introduction of performance evaluation system.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 140

GUIDELINES FOR CIVIL SERVANTS IN CRISIS

USAID Good Governance Initiative (GGI) will provide support to the Civil Service Bureau (CSB) of Georgia to analyze issues and challenges identified in public agencies during COVID19 and its impact on civil servants and related operations. Envisaged activities will include review of relevant normative framework, study of operational challenges faced by the civil service, study of best international practices about the actions applied in response to COVID19 or similar, development of guidelines for the reference of civil servants during crisis. These guidelines are deemed to provide specific instructions to the civil servants on managerial positions on how to act in response to the needs of civil service during a crisis. Thus, senior level civil servants with decision making mandate as well as mid-level managers will get comprehensive information on their roles and responsibilities as well as practical instructions on how to act during crisis to ensure uninterrupted operation various services.

The analysis will also focus on what role the CSB, as a key agency responsible for coordination and management of civil service, could potentially play during crises. Hence, respective guidelines will also be developed.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 141

OPEN BUDGET SURVEY

International Budget Partnership has published 2019 budget transparency survey results, according to which Georgia still keeps the 5th place among the world 117 states. The Open Budget Survey (OBS) is the world’s only independent, comparative and fact-based research instrument that uses internationally accepted criteria to assess public access to central government budget information; formal opportunities for the public to participate in the national budget process; and the role of budget oversight institutions such as the legislature and auditor in the budget process.

Yesterday, Deputy Minister of Finance of Georgia mentioned USAID support on TV, while talking about OB survey results. The support envisaged elaboration of the concept for Open Budgeting Platform by USAID Good Governance Initiative expert, based on which, the MoF developed and launched an Electronic Budget Transparency and Participation System (e-BTPS - https://ebtps.mof.ge/) in 2020 in order to improve public participation in the budget process. USAID GGI’s support also implies helping the MoF with promotion and implementation of the robust communication campaign of the e-BTPS platform, which is an electronic platform allowing interested stakeholders to receive information about the state budget, its priorities and budget programs. Interested stakeholders are also able to plan budget by priorities or spending agencies.

Since 2016, USAID GGI has assisted the MoF to prepare and publish the Citizen’s Guides to the State Budgets, also supported its partner municipalities (Akhaltsikhe, Batumi, and Kutaisi) to strengthen the program budgeting capacity of staff to formulate and implement a needs-oriented priority document and program budget, keeping with the MoF-approved budget preparation methodology.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 142

PARTICIPATORY BUDGETING PROCESS IN MUNICIPALITIES

USAID Good Governance Initiative (GGI) will be supporting Akhaltsikhe, Batumi, Kutaisi, Lanchkhuti and Ambrolauri Municipalities to effectively conduct Participatory Budgeting Process for the year 2021 as well as public awareness and education campaign to promote benefits of participatory budgeting. The Municipalities will get help to build public trust towards Participatory Budgeting process and highlight commitment of the local government to fund and implement winner project;

The winning projects identified through the voting process will be funded by the Municipal budgets and implemented during FY2021. Some of the Municipalities already have piloted VOLIS - an Estonian System for e-engagement of citizens in local activities, that will help them identify the winner project, while others will use locally developed special websites.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 143

AUDITORS CERTIFICATION TRAINING COURSE MANUAL

USAID Good Governance Initiative (GGI) will support Public Audit Institute (PAI) to develop the Auditors Certification Training Course Manual. The training manual will combine different curriculums of financial, compliance and performance audits; budget code; International Public Sector Accounting Standards (IPSAS).

USAID GGI consultant/trainer will conduct a desk review of the Auditors Certification Training Course curriculum and draft situational analyses with recommendations. Next step will include development of each training module of the certification course with theory and practical exercises. And the final stage envisages combining each training module and developing a unified Auditors Certification Training Course Manual.

PAI will also get help from USAID GGI to develop M&E guidelines for assessing the certified auditors’ performance and audit quality and train the PAI staff in effectively carrying out the M&E process. At present, PAI has no proper M&E mechanism to assess performance and audit quality of certified auditors during the certificate validity period. This creates a reputational risk for the institution as well as its certification system.

PAI is a legal entity of public law under State Audit Office that seeks to diversify its services and offer educational and capacity building programs to a wider range of customers.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 144

EXTERNAL MONITORING OF PAR IMLEMENTATION

USAID Good Governance Initiative (GGI) will be implementing a project on “External Monitoring of Public Administration Reform (PAR).

Presently, there is a growing interest to monitor practical application of the principles and novelties introduced by PAR Roadmap 2020, along with the level of institutionalization of individual PAR pillars: policy development and coordination, human resource management, accountability, service delivery, public finance and local self-government.

In 2018-2019, the status of certain innovations and principles of public services were analyzed by several CSOs. It is of great importance to further support the AoG by engaging more public institutions and CSOs to monitor different aspects of reform implementation.

USAID GGI awarded grant to support the GoG to: Critically evaluate reform, estimate its progress and identify challenges, through targeted analysis of selected pillars/components of PAR with the possibility to transform findings into commitments under the new PAR roadmap; Increase PAR monitoring capabilities of CSOs;

In 2015, the GoG adopted the “Public Administration Reform (PAR) Roadmap 2020”. The Roadmap serves as a comprehensive vision of the public administration reform and focuses on the challenges based on which respective objectives and activities have been defined, and is aimed at improvement of public administration in Georgia and its approximation to the European standards. The Government of Georgia is now in the process of the elaboration of PAR strategy 2021-2024, which is planned to be approved by November.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 145

REGULATORY IMPACT ASSESSMENT TRAININGS

With the support of the USAID Good Governance Initiative, Ministry of Justice (MoJ) is organizing series of intensive Regulatory Impact Assessment (RIA) trainings for civil servants of all the Ministries, the Parliament and the Administration of Government.

USAID GGI contractor - ISET team of experts has developed and agreed with MoJ the brand-new RIA training module to provide civil servants with the most practical as well as necessary theoretical knowledge required to apply the RIA methodology in routine policy development process.

Trainings are provided for the groups each consisting of 6 individuals. They develop a draft standard RIA over the course of this “hands-on” trainings.

The trainings kicked off online since May 4, 2020 and will last through June 19, 2020. Lessons learned will then be used to fine-tune the training concept and scale up the process countrywide.

ISET will later develop RIA handbook that will include practical cases observed during the trainings.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 146

INVESTMENT CATALOGUE FOR IMERETI REGION

Georgia has become an attractive location for doing business and investment, as recognized by relevant international rankings. The country’s geostrategic location provides investors with a favorable opportunity to access wider markets in the whole region.

While different parts of Georgia possess considerable potential to attract domestic as well as foreign investments, it is crucial to find proper niche and develop appropriate development strategies. To this end, USAID Good Governance Initiative (GGI) partner cities - Batumi and Kutaisi City Halls explored and identified investment potential of their respective municipalities and produced detailed Investment Opportunity Catalogues (IOC). Catalogues developed in a concise, visually appealing, and professional manner are used to generate interest from domestic and foreign investors and develop more tailored investment strategies. This was well received by the counterparts and the Kutaisi City Hall, additionally requested to increase the scope of exports catalogue and include entire Imereti Region.

Imereti Export Catalogue has also been prepared with support of USAID GGI and contains brief information (such as product information, contacts, etc.) about 54 big and small size, regional businesses.

USAID GGI will be supporting its local partners in this effort of developing most practical and professional IOCs, which can later be replicated by other municipalities and regions to the extent possible.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 147 USAID GGI SUPPORTS PARLIAMENT OF GEORGIA DURING COVID 19

As many Parliaments across the world, the Georgian legislative body has shifted to remote work during the COVID-19 pandemic. As a result, the need for a reliable video conferencing platform became acute and the institution reached out to the donor community with a request for assistance to meet this need.

Following-up on the request, USAID Good Governance Initiative (GGI) agreed to purchase Cisco WebEx licenses for the Parliament of Georgia. The platform has been designated as an official communication means for the legislative body. It is particularly important to have a functional platform running, since the Parliament is only partially returning to regular operations, and part of the staff will be expected to work from home for a longer period.

Considering the fact that the effects of the COVID-19 pandemic will be felt long after the immediate crisis is behind us, it is crucial to support the Parliament of Georgia in effectively managing its remote operations. This directly responds to GGI’s programmatic goal of strengthening policy development and lawmaking processes, as well as supporting the institutional oversight of government. The global crisis brought on by the coronavirus pandemic has accelerated the uptake of digital solutions, tools, and services to transform the ways national governments and parliaments operate. USAID GGI’s support to purchase Cisco WebEx licenses for the Parliament of Georgia is an important contribution that will help the Parliament tailor its institutional culture and behavior to the demands created by this crisis.

In order to provide prompt and cost-effective assistance, this initiative was implemented in collaboration with UNDP. Precisely, out of 25 licenses requested, USAID GGI covered the cost of 12 licenses, while the UNDP project covered the rest.

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MID-TERM STRATEGY FOR THE

Ministry of Internally Displaced Persons from the Occupied Territories, Labor, Health and Social Affairs of Georgia

This will help the Ministry to enhance its staff capacity in developing field specific strategies and action plans in line with the Government Policy Planning Manual standards, which will be an important step towards institutionalization of the uniform policy development process across the government. This intervention will also strengthen linkage between policy planning and budgeting and build stronger mechanisms for improved monitoring and evaluation.

According to 2018-2019 Open Government Partnership Action Plan (commitment №14), the Government established an interagency commission, which shall analyze current context and issues related to housing, key challenges and develop a housing policy document and action plan. The Commission consists of the representatives of line ministries, as well as AoG, Parliament, Public Defender’s (Ombudsman) office, Tbilisi City Hall and municipalities.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 149

SUPPORT MRDI TO DEVELOP SYSTEM OF MUNICIPAL STATISTICS

USAID Good Governance Initiative (GGI) is supporting the Ministry of Regional Development and Infrastructure (MRDI) to develop local statistics system with relevant legislative, institutional and financial foundations to enable informed decision-making in relevant areas. MRDI will develop a mechanism for the collection of reliable statistical data at the municipal level that will allow to monitor LG performance in providing services to the population with the possibility to aggregate all relevant data at the regional and country levels. USAID GGI’s two International Consultants on Municipal Statistics and local expert will conduct desk research on current status of municipal statistics and develop recommendations on financial and institutional arrangements of relevant stakeholder organizations / system beneficiaries. Additionally, guidelines (process and methodology) for the collection of reliable statistical data by the municipality for informed decision-making will also be put together. These guidelines will contain practical instructions for municipalities on data collection methodology and advise on development of general framework specifying types of data to be collected at the local level in different municipal service areas.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 150

FISCAL RISKS MONITORING AND REPORTING

USAID Good Governance Initiative (GGI) is providing technical assistance to the Ministry of Finance (MoF) to establish systemic processes and framework of fiscal risks monitoring and reporting.

USAID GGI expert has defined specific roles of all stakeholders in the fiscal risks monitoring process jointly with the MoF fiscal risks unit and developed procedural guidelines for every stage of fiscal risks monitoring. USAID GGI expert has already completed drafting value for money assessment methodology, which includes Public Private Partnerships (PPP) aspects as well. Per MoF decision, the methodology became part of the PPP manual prepared with the assistance of the Asian Development Bank. ADB and USAID GGI will combine their efforts and hold trainings for MoF and other relevant staff across GoG agencies to ensure introduction and establishment of the new PPP manual.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 151

ASSESSMENT OF PARLIAMENTARY OVERSIGHT IN GEORGIA

USAID Good Governance Initiative (GGI) has issued a grant to conduct a study to assess the implementation of the Parliamentary oversight functions as mandated by the Rules of Procedure of the Georgian Parliament adopted at the end of 2018. The study will encompass 4 Parliamentary sessions - the Spring and Fall sessions of 2019 and 2020 respectively.

The study will include quantitative and qualitative assessment of the Georgian Parliament’s use of its oversight powers and tools as mandated by the new RoP and the effectiveness of the parliament’s oversight role to date. This includes collecting all relevant statistical data for the selected timeframe, as well as providing qualitative analysis of the process and outcomes, which includes procedures, as well as evaluation of the produced products and impact of the work overall. In line with this, the study will evaluate Parliament’s strengths and weaknesses in the context of its oversight functions, identify limitations and areas for improvement, and provide recommendations. The study will also focus on the use of the new oversight tools in Parliamentary Committees, such as Post Legislative Scrutiny and Thematic Inquiry, evaluating and contrasting the practices across committees, identifying merits and drawbacks in the process and providing recommendations rooted in international best practices.

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MEETING OF THEMATIC INQUIRY GROUP

USAID Good Governance Initiative (GGI) is supporting the Education, Science and Culture Committee in conducting a thematic inquiry on Arts Education. Thematic inquiry mechanism is only now taking root in the Georgian parliament, which means that committees lack the community of knowledge and expertise in this direction. The Education, Science and Culture Committee is employing this oversight mechanism for the first time and following the partial easing of the pandemic-related restrictions is continuing the process. USAID GGI supported national consultant is working with the committee at every stage of the thematic inquiry process to guide the work in accordance with the established international best-practices. The Committee has already published the Terms of Reference, collected important written evidence from the interested parties, engaged in the internal and external communication process, and selected the candidates for public hearings. The Committee held its first thematic inquiry hearing on June 16 2020, in Parliament which focused on the Arts Education status. Representatives of different agencies highlighted problems and challenges that schools and universities face. According to the Chair of the Committee, it is extremely important to identify and promote talent found in young children. The thematic inquiry hearings will continue. The collected information will be analyzed and become part of the evidence-based final report.

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TRAINING FOR CSB STAFF IN RESEARCH METHODS

USAID Good Governance Initiative (GGI) consultant has elaborated a training module on Research Methods tailored to the needs of the Civil Service Bureau. CSB will be supported to raise its research capacity and independently research the topics of prime interest. To ensure practical application of the newly acquired skills into practice, CSB will analyze all stages of competitions (open, closed and simplified competitions) in public agencies, composition and operation of competition commission in light of its compliance with the approved rules and procedures.

USAID GGI expert has already developed the training course for the CSB staff and held the first two trainings on June 26 and July 2. The objective of the course is to support primary sociological information collection and development of specific skills required for scientific literacy. The Civil Service Bureau employees will also receive information/knowledge on research approaches, research plan, formulation of objectives and goals, different methods, etc.

During the trainings, the participants will hold discussions and engage in group exercises to analyse interesting cases. The assignment also entails coaching of the CSB staff.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 154 ENVIRONMENT COMMITTEE REPORT PRESENTATION

On June 30, 2020 at a Committee meeting, the Environment Protection and Natural Resources Committee formally approved a report on the implementation of the changes in the tax code, which provides eased regulations or electronic vehicles. The committee assessed whether the law was being implemented and whether it was achieving intended outcomes. The report was drawn up as part of the Post Legislative Security process supported by USAID Good Governance Initiative (GGI), which piloted this new oversight mechanism in the Committee over a year ago.

With the support from USAID GGI, the committee prepared report, which was presented by the Committee Chairman Nino Tsilosani. The document studied the implementation process, as well as international experience, and developed recommendations. According to Tsilosani, based on the implemented tax changes, there is a significant increase in the number of electric cars imported since 2017, but the process came to a halt in a later period. The working group conducted research to identify key factors playing a role in this process.

The report will soon be printed and available on the Parliamentary website.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 155 DEVELOPING EVALUATION MATRICES FOR THE STATE PROGRAMS

USAID Good Governance Initiative (GGI) is providing support to the Healthcare and Social Issues Committee by developing evaluation matrixes for the State Program on Universal Healthcare and the State Program for Provision of Medicine for Treatment of Chronic Diseases.

As monitoring and analyzing governmental programs is one of the most important cornerstones of Parliamentary committees’ oversight work, USAID GGI has embarked on assisting the Healthcare Committee in creating a dashboard/software which will allow for rigorous monitoring and evaluation of major trends and implications in a most effective manner. Specifically, The user-friendly software will create snapshot analysis charts of the main takeaways in the two programs. As a result, the Committee will have simplified evaluation matrices with relevant visuals that can be interpreted in an analytical manner. This will help the Committee, the staff and the Parliament as a whole to make day-to-day use of the data and the tool promises to evolve into a routine assessment mechanism in the years to come.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 156 POLITICAL INFLUENCE FREE CIVIL SERVICE

USAID GGI is providing support to the Civil Service Bureau (CSB) of Georgia and the Working Group (WG) created by the CSB to conduct research and analysis of existing mechanisms preventing political influence at the civil service with a particular focus on managerial positions in ministries.

The international and local experts will conduct field study and provide methodological guidance on how to analyse methods preventing political influence in central government agencies. Specific Draft Guidelines and Recommendations will also be developed for this purpose.

This intervention is envisaged by the Public Administration Reform Action Plan 2019-2020.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 157 OPEN DATA MANAGEMENT PRACTICE IN OZURGETI MUNICIPALITY

On July 15, 2020, a meeting was held with Ozurgeti Municipality City Hall representatives on Open Data Situational Analysis. Like other online meetings held with Zugdidi, Senaki and Lagodekhi Municipality City Halls, open data management was the main issue of discussion including existing challenges and identified needs. The conducted situational analysis outlined that Ozurgeti municipality also lacks open data management practice. USAID GGI contractor Institute for Development of Freedom of Information (IDFI) presented detailed recommendations to the participants on how to introduce open data management practice.

Next steps include development of individual needs-based open data management guidebooks for all the six municipalities (Gori, Lagodekhi, Ozurgeti, Senaki, Telavi and Zugdidi). Also individual trainings will be held, which are adjusted to the needs of the employees of all the six municipalities. During the trainings, each municipality will process at least 10 sets open data in relevant format.

USAID Good Governance Initiative (GGI) is providing support to the mentioned City Halls by strengthening good governance and improving their understanding on open data policy.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 158 KICK-OFF MEETING ON CRISIS MANAGEMENT

On July 20, 2020, Civil Service Bureau hosted the first crisis management related kick-off meeting. USAID Good Governance Initiative (GGI) is providing support to the Civil Service Bureau (CSB) of Georgia to analyze challenges identified in public agencies during crisis and its impact on civil servants and major operations. The expert has reviewed relevant normative framework and is now assessing operational challenges faced by the civil service, as well as the best international practices. At a later stage, guidelines will be developed providing specific instructions for civil servants on managerial positions on how to act in response to the needs of civil service during crisis.

The analysis will also focus on what role the CSB, as a key agency responsible for coordination and management of civil service should play during the crises. Consequently, respective guidelines will also be developed.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 159 LOCAL GOVERNMENTS TO IMPROVE COMMUNICATION WITH THE PEOPLE WITH DISABILITIES

Batumi City has hosted series of trainings in July supported by USAID GGI for the staff of Batumi and Kutaisi Municipality on effective communication with Persons with Disabilities (PWDs). Representatives from Ozurgeti and Zugdidi Municipality also attended the trainings.

USAID GGI expert is now working closely with Kutaisi and Batumi City Halls to conduct capacity building trainings for relevant employees with this purpose. In parallel to the series of trainings, relevant manual has also been developed. The manual is based on the results of the capacity needs assessment and considers both international and local best practices.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 160 PUBLIC INVESTMENT MANAGEMENT COMMISSION MEETING

On July 25- 26, 2020, the first meeting of the Public Investment Management (PIM) Commission was held in Batumi. The meeting was chaired by the Deputy Minister of Finance Giorgi Kakauridze. The Commission discussed number of aspects related to PIM reform, including: a) amendments of the draft PIM methodology, b) an overview of the basic principles determining the discount rate in line with PIM Methodology – the session, which was led by the USAID GGI expert, c) and an overview of the procedural rules of the Commission and criteria for the scoring system of the project evaluation.

In 2019, 14 investment projects were evaluated in line with the investment project management methodology and the evaluation was enclosed within the 2020 draft budget. In 2020, it is planned to conduct preliminary selection and assessment of at least 50% of the total cost of new investment/capital projects, which was the main reason why the Interagency Commission and the Working Group members assembled in Batumi. Key aspects contributing to the effective implementation of the PIM reform were also discussed.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 161 ENVIRONMENT COMMITTEE PRESENTS PLS REPORT

On August 3, 2020, the Environment Protection and Natural Resources Committee, with USAID GGI assistance organized a Spring Session Report presentation at the Parliament of Georgia. Presentation was opened by the Chairwoman of the Committee Nino Tsilosani, who briefed the participants about the committee activities which had been carried out during the spring session by the Committee, along with the presentation of the PLS Report on the implementation of legislative changes related to electric motor vehicles which was conducted with the USAID GGI assistance. This was the first pilot PLS study conducted in the Georgian parliament and it was successfully completed during the Spring 2020 session.

In her welcoming speech, USAID representative, Laura Berger (Deputy Director, USAID’s Democracy, Governance, and Social Development Office) also expressed readiness to support the parliament in effective exercise of its functions and said she looked forward to see informed decisions by the Parliament on the above mentioned topics and effective oversight over the executive.

Additionally, Chairwoman of the Committee highlighted USAID GGI longstanding assistance and support which has been especially vital in introducing and institutionalizing number of novel oversight tools, such as Regulatory Impact Assessment (RIA), thematic inquiries and post-legislative scrutiny (PLS) that aim at improving quality of parliaments performance.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 162 BATUMI CITY HALL WILL HAVE A NEW WEB-PAGE

USAID Good Governance Initiative (GGI) will be supporting Batumi City Hall to create new webpage, which will be more informative, easier to navigate, supportive of the civic engagement, user friendly and easily accessible for all groups of society including people with disabilities.

The contractor company will carry out comprehensive needs’ assessment through in- depth focus groups and interviews as well as the analysis of current webpage and related issues.

An inaugural meeting was already held with Batumi City Hall representatives to discuss procedural details.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 163 DELEGATION OF FUNCTIONS TO LOCAL SELF-GOVERNING BODIES IN THE FIELD OF ENVIRONMENT PROTECTION

USAID Good Governance Initiative (GGI) expert already finalized the guidelines on decentralization of services in the field of environment protection. Guidelines include analysis of the following priority directions: forest management, protected areas, plantations on municipal territories, extraction of wild animals from nature, extraction of inert materials, and ambient air protection. The expert has provided a report describing research approach and main results of the analysis. The analysis will serve as an important factor to support the country in planning and implementing decentralization reform led by the Ministry of Regional Development and Infrastructure of Georgia (MRDI).

The expert has reviewed and analyzed existing legal and policy documents as well as relevant reports prepared under other project initiatives. As part of the study, number of interviews were also organized and results analyzed. The whole process including consultations and discussions were conducted in an online format due to the COVID-19 pandemic. Lessons learnt and recommended next steps are included in the report.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 164 ANALYSIS OF PROFESSIONAL DEVELOPMENT SYSTEM

USAID Good Governance Initiative (GGI) is supporting Civil Service Bureau in examining the existing professional development planning/implementation process in central government agencies. The expert is assisting with the identification of challenges, research of best practices of other countries and development of recommendations to improve implementation of the decree in practice (“On Approval of the Rules for Analysis of Professional Development Needs, Defining Professional Development Standard and Procedures”).

On September 2, 2020, CSB had a kick-off meeting with the USAID GGI expert to discuss timelines, methodological approaches and insights of relevant CSB staff.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 165 TELAVI AND LAGODEKHI MUNICIPALITIES APPROVE INTEGRITY AND TRANSPARENCY STRATEGIES

On August 26 and 31, 2020 the local strategies and action plans of Integrity and Transparency were adopted, respectively, by the decrees of the mayors of Telavi and Lagodekhi municipalities.

The action plans of the City Halls are designed for 2021 - 2022 and envisage improvements in eight main directions: Transparency, Accountability, Human Resource Management, Ethics and Corrupt Risks, State Procurement, Permissions, Internal Financial Control, Legal Entities.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 166 ENVIRONMENT COMMITTEE THEMATIC INQUIRY

USAID Good Governance Initiative (GGI) is supporting the Education, Science and Culture Committee in conducting a thematic inquiry on access to pre-school education across the country in Georgia. Thematic inquiry mechanism is a novel instrument introduced after a thorough revision of the Rules of Procedure (RoP) in 2018. The Committees have gradually started to utilize this new tool, and USAID GGI is engaged in supporting the establishment of best practices in this direction. The Committee has already published the Terms of Reference, collected important written evidence from the interested parties, engaged in the internal and external communication process, and selected the candidates for public hearings. USAID GGI subject-matter national consultant is currently working with the Committee to analyze the submitted evidence and prepare public hearings to review and discuss the content.

The Education, Science and Culture Committee is employing this oversight mechanism for the second time and is actively working towards the completion of the process despite the pandemic-related limitations. There will be a discussion with the executive branch tomorrow on the issues raised at the public hearing and the final analysis and recommendations will become part of the evidence-based final report.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 167 MITIGATING IMPACT OF COVID-19 PANDEMIC

USAID Good Governance Initiative (GGI) has issued a grant to the Economic Policy and Research Centre (EPRC) that aims at implementing the project on “Supporting the Government of Georgia (GoG) in Mitigating the Impact of Covid-19 Pandemic by promoting Inclusive and Evidence-based Governance in Key Areas”. Knowingly, the new virus has created various problems throughout the world and Georgia is not an exception. The health emergency has triggered economic and social issues and influenced on Georgia’s ability to meet the needs and enhance prosperity of its citizens. The challenge is obvious - to combat multidimensional inequalities and weak social protection systems, but the objective can be to turn the challenges into opportunities by redesigning policies, improving governance systems and achieving drastically better outcomes.

This project pursues a Multi-Stakeholder Engagement Processes to ensure participation of a diverse group of stakeholders in developing a common vision on governance in four overarching policy areas: 1) Health System, 2) Social Protection, 3) Education and 4) Sustainable Economic Development.

The project goal is to promote inclusive and innovative governance in critical policy areas and help mitigate the Covid 19 socio-economic impact. So far, 8 Task Force meetings on social issues have been held with participation of different stakeholders working to develop a vision on social policy.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 168 POLITICAL INFLUENCE FREE CIVIL SERVICE

With the support of USAID Good Governance Initiative (GGI) and in close coordination with the Civil Service Bureau (CSB), international and local consultants developed a methodological framework and an action plan for conducting research in the field of civil service with a particular focus on political influence. The local consultant has already elaborated an Inception Report, focusing on thorough examination of the Georgian Law on Civil Service and other relevant legal documents preventing political influence in civil service.

Currently, international consultant is planning to present mid-term report incorporating key findings on international experience and mechanisms preventing political influence.

GOOD GOVERNANCE INITIATIVE (GGI): QPR#16. JANUARY-MARCH 2019 169 BUILDING RESILIENT PUBLIC SERVICE DELIVERY SYSTEMS

USAID Good Governance Initiative (GGI) has issued a grant to help Administration of the Government of Georgia (AoG) build resilient public service delivery systems in Georgia. Jointly with AoG, USAID grantee will map government services, which had interruptions or other challenges due to the pandemic, prioritize based on predefined criteria, study major public services in light of the degree of digitalization and develop specific recommendations to improve service performance.

Covid 19 pandemic has revealed lots of challenges, including restrictions that have clearly demonstrated the need to build resilient public service delivery systems that can operate effectively in an online, remote manner. Considering international best practices and experience, criteria will be developed to identify specific sectors and major public services provided by the Government of Georgia. Comprehensive analysis of delivery process of select public services will be conducted and analytical report developed describing weaknesses and challenges of delivery of select public services during the pandemic.

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U.S. Agency for International Development Good Governance Initiative (GGI) in Georgia 11, George Balanchine Street Tbilisi, 0131 Georgia Tel: 995-032-254-4000 www.usaid.gov/georgia

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