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GOVERNING FOR GROWTH (G4G) IN GEORGIA QUARTERLY REPORT (PUBLIC) APRIL 1, 2017 – JUNE 30, 2017
USAID GOVERNING FOR GROWTH (G4G) IN GEORGIA
14 July 2017 This publication was produced for review by the United States Agency for International Development. It was prepared by Deloitte Consulting LLP. 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.
GOVERNING FOR GROWTH (G4G) IN GEORGIA QUARTERLY REPORT (PUBLIC) APRIL 1, 2017 – JUNE 30, 2017
USAID GOVERNING FOR GROWTH (G4G) IN GEORGIA CONTRACT NUMBER: AID-114-C-14-00007 DELOITTE CONSULTING LLP USAID | GEORGIA USAID CONTRACTING OFFICER’S REPRESENTATIVE: REVAZ ORMOTSADZE AUTHOR(S): G4G STAFF CONTRACT REPORTING: 6000 14 JULY 2017
DISCLAIMER: This publication was produced for review by the United States Agency for International Development. It was prepared by Deloitte Consulting LLP. 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.
USAID | GOVERNING FOR GROWTH (G4G) IN GEORGIA QUARTERLY REPORT APRIL 01, 2017 – JUNE 30, 2017 2
ACRONYMS AA Association Agreement ABCO Association of Business Consulting Organizations of Georgia ACCESS Advancing CSO Capacities and Engaging Society for Sustainability ACT Analysis Consulting Team AD Analytical Department ADB Asian Development Bank ADR Alternative Dispute Resolution AEO Authorized Economic Operator AFG Association of Freight Forwarders of Georgia ALFG Association of Legal Firms of Georgia AmCham American Chamber of Commerce APMA Agricultural Project Management Agency ARI Angel Resource Institute AYEG Association of Young Economists of Georgia BA Business Association BAG Business Association of Georgia BAU Business as Usual BEC Business and Economic Centre BORSA Turkish Stock Exchange Istanbul CCAF Cambridge Center for Alternative Finance CCC Culture of Collaborative Consultations CENN Caucasus Environmental NGO Network CI Confidential Information CIPE Center for International Private Enterprise CIS Commonwealth of Independent States CIT Corporate Income Tax CLDP Commercial Law Development Program CMWG Capital Markets Working Group CoP Chief of Party COR Contracting Officer’s Representative CPSR Certified Procurement System Readiness CSO Civil Society Organization CTC Center for Training and Consulting CzDA Czech Development Agency DAM Day Ahead Market DANIDA Danish International Development Agency DAP Day Ahead Planning DC Defined Contribution DCFTA Deep and Comprehensive Free Trade Area DDL Development Data Library DEA Data Exchange Agency DEC Development Experience Clearinghouse DSO Distribution System Operator EaP Eastern Partnership
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EBRD European Bank for Reconstruction and Development EC European Commission ECA Eastern Europe and Central Asia EC-LEDS Enhancing Capacity for Low Emission Development Strategies ECS Energy Community Secretariat ED Environmental Development EDA Enterprise Development Agency EEC Energy Efficiency Center EF Environmental Flow EIA Environmental Impact Assessment EIEC Environmental Information and Education Center EMCAS Electricity Market Complex Adaptive System EMRA Turkish Energy Market Regulation Authority EnCT European Energy Community Treaty ENVSEC Environment and Security Initiative EPAC Economic Policy Advocacy Coalition EPI Economic Prosperity Initiative EPIAS Turkish Market Operator EPRC Economic Policy Research Center ESCO Electricity System Commercial Operator ETA Energy Traders Association ETD Association of Turkish Energy Traders ETM Electricity Trading Mechanism EU European Union FABLAB Fabrication Lab FABSHOP Fabrication Shop FCPA Foreign Corrupt Practices Act FDI Foreign Direct Investment FLN Field Leadership Network FSA Food Safety Agency G4G Governing for Growth in Georgia GA Georgian Amelioration GAMMA Georgian Environmental Consulting Company – LLC “GAMMA” GAU Georgian American University GBA Georgian Bar Association GCCI Georgian Chamber of Commerce and Industry GCF Georgian Co-Investment Fund GCI Global Competitiveness Index GDP Gross Domestic Product GEA Georgian Employers Association GEDF Georgian Energy Development Fund GEL Georgian Lari GEMM Georgian Electricity Market Model GEO Georgian Environmental Outlook Geostat National Statistics Office of Georgia GEW Global Entrepreneurship Week GFA Georgian Farmers Association GGF Good Governance Fund
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GGI Good Governance Initiative GHA Georgian Hydropower Association GIA Georgian Insurance Association GIB Georgian Institute of Building GIDG Georgian Industrial Development Group GIG Energy Georgian Investment Group Energy GII Global Innovation Index GILMD Georgia Irrigation and Land Market Development Project GIPA Georgian Institute of Public Administration GIRCA Georgian International Road Carriers Association GIS Geographic Information System GITA Georgian Innovation and Technology Agency GITR Global Information Technology Report GiZ German Society for International Cooperation GLIP Georgian Lawyers for Independent Profession GLNA Georgian Lawyer’s National Association GNERC Georgian Energy and Water Supply Regulatory Commission GoG Government of Georgia GoGC Georgian Oil and Gas Corporation GPA Government Procurement Agreement GRPTS Georgian Reforms Progress Tracking System GS Gauging Station GSE Georgian State Electrosystem GSMEA Georgian Small and Medium Enterprise Association GTU Georgian Technical University GWBA Georgian Women Business Association GWP Georgian Water and Power GYLA Georgian Young Lawyer’s Association HACCP Hazard Analysis and Critical Control Points HEPA Hazelnut Exporters and Producers Association HICD Human Institutional Capacity Development HIPP Hydropower Investment Promotion Project HPEP Hydro Power and Energy Planning Project HPP Hydro Power Plant I&D Irrigation and Drainage IBEDC International Business and Economic Development Center IBSU International Black Sea University IC Investors Council ICC International Chamber of Commerce ICCA Infrastructure Construction Companies Association ICT Information and Communications Technology IDFI Institute for Development of Freedom of Information IEE Initial Environmental Examination IFC International Finance Corporation IFI International Financial Institution IFRS International Financial Reporting Standards IHE Institute for Higher Education ILIAUNI Ilia State University
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ILMD Irrigation and Land Market Development IMF International Monetary Fund INRMW Integrated Natural Resources Management in Watersheds IOH Insolvency Office Holder IP Intellectual Property IRATF Insolvency Reform Advocacy Task Force ISET-PI International School of Economics at Tbilisi State University Policy Institute ISO International Organization for Standardization ISP Internet Service Provider IT Information Technology IWRM Integrated Water Resources Management JBS Judge Business School JILEP Judicial Independence and Legal Empowerment Project KfW Kreditnstalt fur Wiederaufbau KM Knowledge Management kv Kilo Volt LB Lower Bound LEAP Long Range Energy Alternatives Planning LGL Let Girls Learn LLC Limited Liability Company LWG Legislative Working Group MARKAL Numerical model for country-wide economic analysis of energy-related systems MBS Mortgage Backed Securities M-CEP Market-Centered Energy Planning MCH Market Clearing House MENRP Ministry of Environmental and Natural Resources Protection MIA Ministry of Internal Affairs MISO Midcontinent Independent System Operator MIT Massachusetts Institute of Technology MoA Ministry of Agriculture MoE Ministry of Energy MoES Ministry of Education and Science MoESD Ministry of Economy and Sustainable Development MoF Ministry of Finance MoFA Ministry of Foreign Affairs MoHLSA Ministry of Health, Labor and Social Affairs of Georgia MoJ Ministry of Justice MoU Memorandum of Understanding MP Market Player MRDI Ministry of Regional Development and Infrastructure of Georgia MSC Mediterranean Shipping Company M-TAG Media for Transparent and Accountable Governance MW Mega Watt NALAG National Association of Local Authorities of Georgia NAPR National Agency for Public Registry NARMA National Agricultural Risk Management Agency NARUC National Association of Regulatory Utility Commissioners NATO North Atlantic Treaty Organization
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NBE National Bureau of Enforcement NBG National Bank of Georgia NEA National Environmental Agency NEST National Employment Savings Trust NFA National Food Agency NGO Non-Governmental Organization NIH National Institute of Health Nord Pool Norwegian Market Operator NPLAW Nodia and Partners Law Firm NVE Norwegian Energy Regulator OECD Organization for Economic Cooperation and Development OGR Office of Global Research OSCE Organization for Security and Cooperation in Europe OTC Over the Counter PCA Post Clearance Audit PM Prime Minister PMCG Policy and Management Consulting Group PMP Performance Monitoring Plan PPA Power Purchase Agreement PPD Public-Private Dialogue PR Public Relations PSC Public Service Commission PSDA Public Service Development Agency PX Power Exchange Q&A Question and Answer REC Regional Environmental Center for Caucasus RFA Request for Applications RIA Regulatory Impact Assessment RRM Revenue Requirement Model RS Revenue Service SAIDI System On Average Interruption Duration Index SAIFI System Average Interruption Frequency Index SARAS Service for Accounting, Reporting and Auditing Supervision SES Senior Expert Service SHPP Small Hydropower Plant SIDA Swedish International Development Agency SME Small and Medium Enterprise SoW Scope of Work SP Service Provider SPA State Procurement Agency SPS Sanitary and Phytosanitary SPV Special Purpose Vehicle Statkraft Norwegian Generation Company StatNett Norwegian Transmission System Operator STEM Science, Technology, Engineering and Mathematics SWOT Strengths, Weaknesses, Opportunities, Threats TADAT Tax Administration Diagnostic Assessment Tool TAG Trade Advisory Group
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TAKAS Turkish Settlement and Clearing Bank TAXGIP Tax Administrators e-Xchange of Global Innovative Practices TECR Threshold Environmental Checklist Review TEIAS Turkish Transmission System Operator TEU Twenty Foot Container Equivalent Unit TFS Trade Facilitation System TI Transparency International ToR Terms of Reference ToT Training of Trainers TPU Tax Payer’s Union TRWG Tariff and Regulation Working Group TSO Transmission System Operator TSU Tbilisi State University TYNDP Ten Year Network Development Plan UB Upper Bound UK United Kingdom UNDP United Nations Development Program UNDP-GEF UNDP Global Environmental Finance UNECE United Nations Economic Commission for Europe UNESCO United Nations Educational, Scientific and Cultural Organization UNESCO-IHE UNESCO Institute for Higher Education USAID United States Agency for International Development USD US Dollar USDA United States Department of Agriculture USFS United States Forest Service USG United States Government USoA Uniform System of Accounts USPTO US Patent and Trademark Organization UST US Treasury USTA United States Trade Administration USTR United States Trade Representative VAT Value Added Tax VOLL Value of Loss Load WB World Bank WBC Women Business Council in Georgia WB-ILMD World Bank Irrigation and Land Market Development WCO World Customs Organization WEAP Water Evaluation and Planning WEG World Experience for Georgia WFD Water Framework Directive WG Working Group WMO World Meteorological Organization WP Work Plan WRM Water Resource Management WRML Water Resource Management Law WTO World Trade Organization
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CONTENTS
1. INTRODUCTION ...... 12
2. SUMMARY ...... 12
3. PROJECT HIGHLIGHTS DURING THE REPORTING PERIOD ...... 13
4. PROGRESS OF ACTIVITIES BY REFORM ...... 17 4.1 OVERALL INSTITUTIONALIZED FRAMEWORK FOR PUBLIC CONSULTATION ...... 17 4.1.1 PROGRESS AGAINST THE WORK PLAN ...... 17 4.1.2 PPD SUCCESSES AND LESSONS LEARNED ...... 21 4.1.3 CHALLENGES TO ACHIEVING REFORM RESULTS ...... 21 4.2 ENERGY STRATEGY REFORM ...... 21 4.2.1 PROGRESS AGAINST THE WORK PLAN ...... 21 4.2.2 PPD SUCCESSES AND LESSONS LEARNED ...... 22 4.2.3 CHALLENGES TO ACHIEVING REFORM RESULTS ...... 22 4.3 ELECTRICITY TRADING MECHANISM REFORM ...... 22 4.3.1 PROGRESS AGAINST THE WORK PLAN ...... 22 4.3.2 PPD SUCCESSES AND LESSONS LEARNED ...... 24 4.3.3 CHALLENGES TO ACHIEVING REFORM RESULTS ...... 24 4.4 WATER RESOURCE MANAGEMENT REFORM ...... 25 4.4.1 PROGRESS AGAINST THE WORK PLAN ...... 25 4.4.2 PPD SUCCESSES AND LESSONS LEARNED ...... 26 4.4.3 CHALLENGES TO ACHIEVING REFORM RESULTS ...... 27 4.5 TAX ENFORCEMENT AND ADMINISTRATION REFORM ...... 27 4.5.1 PROGRESS AGAINST THE WORK PLAN ...... 27 4.5.2 PPD SUCCESSES AND LESSONS LEARNED ...... 28 4.5.3 CHALLENGES TO ACHIEVING REFORM RESULTS ...... 28 4.6 CUSTOMS ADMINISTRATION AND ENFORCEMENT REFORM ...... 28 4.6.1 PROGRESS AGAINST THE WORK PLAN ...... 28 4.6.2 PPD SUCCESSES AND LESSONS LEARNED ...... 28 4.6.3 CHALLENGES TO ACHIEVING REFORM RESULTS ...... 29 4.7 TRADE FACILITATION/TRANSPORT AND LOGISTICS REFORM ...... 29 4.7.1 PROGRESS AGAINST THE WORK PLAN ...... 29 4.7.2 PPD SUCCESSES AND LESSONS LEARNED ...... 29 4.7.3 CHALLENGES TO ACHIEVING REFORM RESULTS ...... 29 4.8 BANKRUPTCY AND LIQUIDATION REFORM ...... 30 4.8.1 PROGRESS AGAINST THE WORK PLAN ...... 30 4.8.2 PPD SUCCESSES AND LESSONS LEARNED ...... 30 4.8.3 CHALLENGES TO ACHIEVING REFORM RESULTS ...... 30 4.9 LAND OWNERSHIP REGISTRATION REFORM ...... 30 4.9.1 PROGRESS AGAINST THE WORK PLAN ...... 30
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4.9.2 PPD SUCCESSES AND LESSONS LEARNED ...... 31 4.9.3 CHALLENGES TO ACHIEVING REFORM RESULTS ...... 31 4.10 STATE PROCUREMENT SYSTEM ...... 31 4.10.1 PROGRESS AGAINST THE WORK PLAN ...... 31 4.10.2 PPD SUCCESSES AND LESSONS LEARNED ...... 31 4.10.3 CHALLENGES TO ACHIEVING REFORM RESULTS ...... 31 4.11 PENSION REFORM ...... 31 4.11.1 PROGRESS AGAINST THE WORK PLAN ...... 31 4.11.2 PPD SUCCESSES AND LESSONS LEARNED ...... 32 4.11.3 CHALLENGES TO ACHIEVING REFORM RESULTS ...... 32 4.12 CAPITAL MARKETS REFORM ...... 32 4.12.1 PROGRESS AGAINST THE WORK PLAN ...... 32 4.12.2 PPD SUCCESSES AND LESSONS LEARNED ...... 33 4.12.3 CHALLENGES TO ACHIEVING REFORM RESULTS ...... 33 4.13 CROP INSURANCE REFORM ...... 33 4.13.1 PROGRESS AGAINST THE WORK PLAN ...... 33 4.13.2 PPD SUCCESSES AND LESSONS LEARNED ...... 33 4.13.3 CHALLENGES TO ACHIEVING REFORM RESULTS ...... 33 4.14 INNOVATION AND TECHNOLOGY POLICY ...... 34 4.14.1 PROGRESS AGAINST THE WORK PLAN ...... 34 4.14.2 PPD SUCCESSES AND LESSONS LEARNED ...... 34 4.14.3 CHALLENGES TO ACHIEVING REFORM RESULTS ...... 34 4.15 BUILDING CODE REFORM...... 35 4.15.1 PROGRESS AGAINST THE WORK PLAN ...... 35 4.15.2 PPD SUCCESSES AND LESSONS LEARNED ...... 35 4.15.3 CHALLENGES TO ACHIEVING REFORM RESULTS ...... 35
FOR CONTINUED SUCCESS IN THIS AREA, IT IS UP TO GIB TO MAINTAIN THE MOMENTUM BY RAISING AWARENESS AND BUILDING THE CAPACITY OF THE PRIVATE SECTOR...... 35
5. WORK PLAN OUTPUT TABLE ...... 36
APPENDIX A: ANNUAL PMP INDICATOR RESULTS ...... 57
APPENDIX B: DONOR COORDINATION MATRIX ...... 74
APPENDIX C: UTILIZATION OF USG PERSONNEL AND COLLABORATION WITH OTHER DONOR-FUNDED PROJECTS ...... 86
APPENDIX D: UTILIZATION OF INTERNS ...... 89
APPENDIX E: G4G ADVISORS UTILIZED IN GOG INSTITUTIONS ...... 90
APPENDIX F: UTILIZATION OF PRIVATE SECTOR AND CIVIL SOCIETY ORGANIZATIONS ...... 92
APPENDIX G: SUMMARY OF GRANT ACTIVITIES ...... 101
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APPENDIX H: UTILIZATION OF EXPERTS FOR COST SAVINGS ...... 108
APPENDIX I: G4G ORGANIZATIONAL CHART ...... 111
APPENDIX J: GANT CHART ...... 112
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1. INTRODUCTION Governing for Growth (G4G) in Georgia is a five-year, $19.3 million US dollar (USD) United States Agency for International Development (USAID) project that supports the Government of Georgia (GoG) as it creates an improved business enabling environment in which legal and regulatory reforms are fairly and transparently conceived, implemented and enforced through consultative dialogue. G4G aims to enhance governance in select business enabling areas, including: Tax and customs administration; Electricity trading policy, including cross-border trading; Water resources management; Trade facilitation; Other reform areas as identified during implementation of the project. The G4G approach supports the effective formulation of the government policies necessary to drive economic development through the promotion of constructive public-private dialogue (PPD). This requires strengthening of the government institutional capacity to develop, implement, and enforce reforms, and strengthening the capacity of private sector and civil society actors to effectively engage the government on the development, implementation, and enforcement of reforms. G4G is implemented through five main components: 1. Support inclusive PPD; 2. Strengthen GoG capacity to develop, implement and enforce reforms; 3. Improve water resource management across multiple competing interests; 4. Improve governance of energy trading policy, including cross-border electricity trading; 5. Strengthen the capacity of private sector and civil society actors to advocate for reforms. This report documents the results and progress made by G4G during project Year 3, Quarter 3 (from April 1, 2017, through June 30, 2017). Within each reform area, activities are organized by component. This structure permits a view of activities focused on a given reform area, seen in the context of a project- wide effort. 2. SUMMARY During Year 3, Quarter 3, G4G progressed through a list of milestones including launching of the Georgian Reforms Progress Tracking System (GRPTS) – “ReforMeter”; taking the first steps to create a governance model and action plan for Economic Policy Advocacy Coalition’s (EPAC) sustainment beyond G4G’s lifespan; initiation of regulatory impact assessments (RIAs) on Water Resources Management Law, Electricity Trading Mechanism (ETM), and Value Added Tax (VAT) Reform. The continuous efforts of G4G team on a number of legislative initiatives resulted in adoption of authorized economic operator (AEO) primary legislation; additionally, on April 24, the Parliament of Georgia ratified the Accession Agreement of Georgia to the Energy Community Treaty. Active support of G4G team enabled the GoG to finalize the draft Law on Pensions and the concept on the Investment Funds Law. G4G organized and held a “Regional Energy Summit” which brought together energy sector stakeholders from Georgia and bordering countries; the GoG made the decision to open the electricity market in May 2018, in which the 65 largest energy consumers and approximately 50 small generators will be able to trade electricity on a competitive basis; the Georgian Hydropower Association was officially established; and on-the-job training in construction permit issuing under the new Non-Structural Building Code, provided by Georgian Institute of Building (GIB) to Tbilisi Architecture staff (20 participants, 23 permit applications reviewed), under the Tbilisi Municipality, was completed. At the close of Quarter 3, G4G cumulatively (since project inception) has: Leveraged approximately $469,294 USD of cost-share;
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Completed 108 technical deliverables; Hosted 111 PPD events with over 4,709 attendees; Conducted 89 training programs with over 2,576 participants (1,394 females and 1,182 males); Issued 9 newsletters; Employed 61 Georgian youth interns; Conducted outreach to over 64 other donor-funded projects; Awarded 38 grants; The total amount of grant awards is $1,520,112 USD, with $226,830 USD in cost share leveraged. 3. PROJECT HIGHLIGHTS DURING THE REPORTING PERIOD G4G’s Year 3, Quarter 3 timeline covered the period from April 1, 2017, to June 30, 2017. Key events and milestones related to the project’s areas of work during the reporting period include:
ReforMeter is Live On May 23, as part of G4G’s grant program “Georgian Reform Progress Tracking System (ReforMeter),” ISET-PI in collaboration with G4G officially launched the Georgian Reform Progress Tracking System - “Reformeter.” ReforMeter is built to track how reforms progress and is designed to support policy making and PPD. This would promote informed debates about reform policy decisions, improve accountability, and help build trust between the GoG and general public. Shamenna K. Gall, USAID Economic Growth Office Acting Director, Eric Livny, ISET-PI President, and Bruno Balvanera, European Bank for Reconstruction and Development (EBRD) Director for Caucasus, Moldova and Belarus, opened the ceremony with Eric Livny, President of ISET-PI more than 100 representatives from media, civil society, public and private sectors, and youth. ISET-PI presented ReforMeter - a software application that tracks the progress of the reform implementation process in Georgia, and demonstrated how three reforms are being evaluated within the project (https://reformeter.iset-pi.ge).
Energy Community Treaty Ratified by Parliament On April 24, the Parliament of Georgia ratified the Accession Agreement of Georgia to the Energy Community Treaty. By this agreement, Georgia committed to approximate Georgia’s energy sector with the European Union (EU) energy market rules and regulations. G4G has been actively conducting capacity building activities for GoG stakeholders regarding the EU energy package requirements which are now obligatory under the Energy Community Treaty. G4G also supported Ministry of Energy (MoE) in preparation of the package for ratification. Currently, ETM is fully compliant with the energy package requirements.
Energy Trading Moves Closer G4G has been supporting introduction and implementation of the competitive electricity market. On June 30, Parliament, adopted the changes to the Georgia Law on Electricity and Natural Gas by the third hearing. One of the main changes considered under the amendments is to apply deregulation to all generation units below 40 megawatts (MW) (the previous limit was 13 MW) and oblige consumers connected to the 35 kilovolt (kV) grid or above to become direct consumers and participate in the wholesale market. Amendments also consider adoption of the Natural Gas Grid Code by Georgian
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National Energy and Water Supply Regulatory Commission (GNERC). During the next 10 years, the competitive electricity market is expected to generate approximately 1.2 billion USD in economic benefit for the private sector and consumers associated with the system.
Electricity Market Players’ Association Founded G4G has been working with market players (MPs) in the energy trading sector since project inception. An informal association of MPs has been actively supported by G4G, which coordinated interaction and engagement with the GoG. On June 30, the MPs officially founded the association. It will serve as an official platform for MPs to collectively address issues in the competitive electricity market with the GoG. This is also the first association officially formed with G4G’s support.
Levan Vepkhvadze, Head of the Executive Board Regional Energy Summit On May 25, G4G in cooperation with the MoE and EU4Energy Programme, led by the Energy Community Secretariat, held the Regional Energy Summit. Vice Prime Minister and Minister of Energy, Kakha Kaladze, and US Ambassador, Ian Kelly, participated as opening speakers. The Summit was attended by representatives of the Parliament of Georgia, MoE, Ministry of Energy and Natural Resources of Turkey, Ministry of Energy Infrastructure and Natural Resources of Armenia, international financial institutions (IFIs), energy sector stakeholders and academia. Private sector representatives had a chance to exchange views, ask questions and receive feedback from MoE and Kakha Kaladze, Minister of Energy GNERC regarding ongoing and planned reforms and their impact on private sector representatives.
Youth Energy Conference G4G in cooperation with the MoE and Georgian Technical University (GTU), organized the conference, “Young Leaders in Georgian Energy Sector.” The goal of the conference was to strengthen and promote young leaders’ role in the Georgian energy sector, stimulate open discussion and exchange information on recent developments in the energy sector. The conference was attended by more than 80 students from GTU and ISET as well as representatives of the MoE and GNERC. Presentations were made by GTU students from the energy and
telecommunication faculties and G4G staff.
Dato Dadiani, Georgian Technical University Student
Irrigation Strategy of Georgia 2017-2020 Approved On May 24, the Irrigation Strategy of Georgia 2017-2020 was approved by the Minister of Agriculture. The Strategy reflected concepts incorporated in G4G’s Irrigation Tariff Methodology and the
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Recommendations of RIA on Tariff Methodology. The Irrigation Strategy will support development of the agriculture sector and promote stable growth of high quality agricultural production.
Corporate Income Tax (CIT) Guide to Ease Implementation With G4G assistance, Georgia recently adopted the Estonian CIT model adapted to Georgian realities. G4G supported GoG in shaping the reform concept by conducting a RIA, facilitating dialogue between the GoG and private sector, and drafting the legislation. During Quarter 3, Georgian Small and Medium Enterprise Association (GSMEA) and G4G developed a Plain Language Guide for taxpayers. The purpose of the Guide is to help taxpayers understand the main differences between the old and new CIT model, and provide a definition of the tax base, explain relevance of financial accounting and timing of payments.
State Procurement Continues to Develop During the last five years, the number of suppliers registered in the State Procurement System increased by over 23,000. USAID G4G has been actively supporting the State Procurement Agency (SPA) in improving transparency and promoting business participation in state tenders. On May 31, 2017, G4G facilitated a PPD 35000 event for SPA with Georgian construction 30,704 30000 firms. “This meeting is another successful 25000 25,045 example proving that the government is discussing the issues, critical for 20000 19,911 15,625 businesses, with the private sector more 15000 10,874 and more frequently,” stated Anna 10000 7,365 Sabakhtarishvili, Executive Director of 5000 Infrastructure Construction Association at 0 the SPA’s meeting with the construction business representatives.
Number of Registered Suppliers
RIA National Framework to be Launched in 2018 On April 26, G4G grantee Business and Economic Centre (BEC) organized a PPD on RIA at the Parliament. The Chair of the EU Integration Committee of the Parliament of Georgia, Tamar Khulordava, and the Chair of the Sector Economy Committee, Roman Kakulia, opened the meeting with a statement that RIA will be a useful instrument for legislative activity. G4G’s RIA Expert, Roman Ladus, introduced the Recommendations on RIA National Framework. Representatives of the private sector, EU experts, Members of the Parliament and Government representatives expressed their opinions and talked about the practical issues of RIA Tamar Khulordava implementation in Georgia. All parties agreed on the importance of RIA and its timely introduction. Shalva Tadumadze, the Parliamentary Secretary of the GoG and the chair of the intergovernmental working group (WG) on RIA, stated that the first version of the draft amendments to the Law on Normative Acts introducing RIA in 2018 was being developed (to be submitted for approval in the autumn session).”It’s time to take viable steps towards the introduction of
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RIA. It supports to develop better regulations and ensures active involvement of civil society in the law- making process,” stated Tamar Khulordava.
Parliamentary PPD on Insolvency On April 28, a PPD event on insolvency issues was held with Members of Parliament. Private sector representatives highlighted the importance of the new Law on Insolvency to facilitate the restructuring process. The dialogue contributed to raising awareness of Members of Parliament and exchanging views on key frameworks for Insolvency Reform. “Exchanging opinions is critical for achieving reform results, which is why the Law on Insolvency should serve to satisfy the interests of all parties,” stated Mikheil Sarjveladze, Deputy Minister of Justice.
Competitiveness Analysis of the Caucasus Transit Corridor: A Milestone for Trade in the Caucasus On April 27, 2017, G4G organized a Caucasus Transit Corridor (CTC) workshop with participation of all stakeholders from the private and public sectors to discuss the preliminary results of the analysis prepared under the G4G grant activity about the opportunities and challenges related to CTC. “This meeting, as well as the USAID study, was very interesting for us as we closely observe the developments related to the South Caucasus Corridor. It was very important that we exchanged views with other players. As for the corridor, I think there are a lot of positive trends
Bondo Bolkvadze of G4G and Levan Akhvlediani of identified both, in railway and road transport directions - Anaklia Port modernization of the railway and opening of Anaklia port will gain a clear advantage over other corridors and increase transit cargoes and cargo turnover in general,” concluded Levan Akhvlediani, Director of Anaklia Port. The CTC Competitiveness Analysis is projected to be completed in mid-July. The report will reveal the pros and cons of the CTC as well as opportunities to improve its competitiveness.
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4. PROGRESS OF ACTIVITIES BY REFORM
4.1 OVERALL INSTITUTIONALIZED FRAMEWORK FOR PUBLIC CONSULTATION
Sustainable institutionalized dialogue platform to improve the quality of all legislations; REFORM OBJECTIVE emergence of a Culture of Collaborative Consultation (CCC).
4.1.1 PROGRESS AGAINST THE WORK PLAN
SUPPORT PUBLIC-PRIVATE DIALOGUE Support National PPD platform. G4G continues working with the Ministry of Economy and Sustainable Development (MoESD) to build the Trade Advisory Group (TAG) as an effective and inclusive PPD platform for trade issues. To support evidence based discussions, G4G announced a grant for development of four brief policy papers on selected topics to guide TAG and MoESD with expert opinions, recommendations, analytical research and stimulate discussions to support informed decisions. The grantee, TBSC Consulting, will begin working on the policy papers in Quarter 4. Meanwhile, G4G is working with the TAG Secretariat to prepare new elections for the TAG chair and deputy chair. As part of G4G’s grant activity to strengthen the PPD platform in the Parliament, on April 26, G4G Grantee BEC organized a PPD on RIA at the Parliament. The discussion was led by the Chair of the EU Integration Committee, Tamar Khulordava, and the Chair of the Sector Economy Committee, Roman Kakulia. G4G’s RIA Expert, Roman Ladus, introduced the Recommendations on RIA National Framework. Representatives of the private sector, EU experts, Members of the Parliament and Government representatives expressed their opinions and talked about the practical issues of RIA implementation in Georgia. All parties agreed on the importance of RIA and its timely introduction. Shalva Tadumadze, the Parliamentary Secretary of the GoG and the chair of the intergovernmental working group on RIA, stated that the first version of the draft amendments to the Law on Normative Acts introducing RIA was being developed (to be submitted for approval in the autumn session). On April 20, BEC organized a workshop on insolvency with experts and representatives of CSOs. The objective of the workshop was to share opinions, positions, and discuss problems of the insolvency system that were presented at the Parliamentary PPD platform on April 28. Members of Parliament, GoG and private sector representatives discussed challenges with the current insolvency system and the need for reform. Roman Kakulia, the Chair of the Sector Economy Committee, chaired the event. Private sector representatives highlighted the importance of the new law to facilitate the restructuring process. The dialogue contributed to raising awareness of MPs and exchange views on key aspects for Insolvency Reform. During Quarter 3, several PPD events were conducted within G4G’s scope of activities, additional information on PPD is covered in the reform related sections of this report. Engage Media in the National PPD. On May 20-21, G4G, in collaboration with the Ministry of Agriculture (MoA) and APMA, organized a media tour on crop insurance for 20 journalists specializing in business broadcast. The purpose of the tour was to provide the journalists with information on basic crop insurance concepts, practices, tools, and discuss the key achievements of Georgia's agricultural policy. The journalists raised their level of knowledge in crop insurance as a complex program that offers multiple risk-management opportunities for Georgian producers. APMA’s director, Mamuka Kvaratskhelia, discussed all implemented projects in the past four years and current projects underway. Levan Davitashvili, Minister of Agriculture, overviewed the key achievements of Georgia's agricultural policy and Georgia's foreign trade in agriculture. On June 3, G4G hosted a “Coffee & Conversation” on PPD tracking mechanisms for journalists with participation of ISET-PI and IDFI. Gigla Mikautadze of ISET-PI encouraged journalists to download the ReforMeter app and explained how it operates. Nino Merebashvili of IDFI presented the PPD Quality Tracking System and discussed the methodology for evaluations. G4G presented its activities that
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strengthen capacity of both the public and private sectors to effectively cooperate on reforms through an inclusive consultative process. On June 22, G4G in cooperation with Policy Management Consulting Group (PMCG) organized training for journalists on the Economic Liberty Act and recent changes in foreign land ownership. Lekso Aleksishvili discussed the possibility of removing Article 94, known as the “Economic Liberty Act,” from the new constitution, as part of the constitutional reform project, and explained the possible impact of removing this legislation on investors’ confidence and total investment. The group also discussed the restrictions on foreign land ownership and its possible implications on foreign investments in agriculture. On June 27, G4G in collaboration with the MoESD, organized a “Coffee & Conversation” on Pension Reform for journalists to raise their awareness on the concept, scheme, and main features of the proposed reform. Minister of MoESD, Giorgi Gakharia, talked about the importance of the Pension Reform to improve social conditions, ensure long term growth of the Lari, and lead to the development of other financial instruments. Gakharia also discussed the relationship between Pension Reform and capital market development. Nino Javakhadze, Deputy Minister of MoESD, and Nikoloz Gagua, Deputy Minister of Finance, discussed aspects of the reform concept. Gagua also mentioned that the pension system will be administrated by an independent agency regulated by the National Bank of Georgia (NBG). Engage Youth in the National PPD. During Quarter 3, within the scope of G4G’s youth activities, G4G participated in three events organized by partner universities to present career opportunities to students. During May, G4G participated in IBSU’s “Job Fair” and San Diego State University’s “Internship Fair,” and in June Ilia State University’s (ILIAUNI) “Student Fair.” During the events, G4G introduced its youth activities including the Internship Program, the EU-Georgia integration training course, “Question and Answer” sessions for young lawyers and the “Girl's Network Retreat” workshop. Fifty-three students were interviewed during the events. Five students from the science, technology, engineering and math (STEM) faculties at San Diego State University were shortlisted for G4G water and energy internships and three students from IBSU were shortlisted for internship interviews at G4G. During the Ilia State University “Student Fair,” over 70 companies participated to offer students internships or employment opportunities. In May, G4G consultant Camelia Bulat, delivered leadership training at GIPA and IBSU. Over 60 students attended the sessions that included the following topics: leadership; entrepreneurship; advocacy; verbal and written communications; a self-assessment exercise; and the art of presentation. In addition, rocket pitch – a method for describing a business idea in a clear and concise way, was applied by the students during the seminar. Bulat conducted the session in a very open and engaged manner, inviting students to participate in discussions, launching subjects for debates, conducting group work and having the students deliver presentations. On June 5, Youth Entrepreneurial Skills Program for Advancing Employability and Income Generation in Georgia (YES-Georgia), in partnership with USAID projects G4G and ZRDA, Crystal Fund and PH International, organized the “Youth Employment Forum 2017.” The Forum was opened by Brent Edelman, Senior Economic Growth Advisor at USAID, Mariam Jashi, Chair of the Education, Science and Culture Committee of the Parliament of Georgia, and Revaz Javelidze, Deputy Minister of Education and Science of Georgia. Education considerations, youth internship advantages, challenges and career development were discussed. G4G will work with partner organizations and prepare recommendations on internship promotion and youth employment. In June, G4G awarded certificates to 49 students for participating in its Internship Program and Question and Answer (Q&A) Sessions for Law Students. The award ceremony was held at G4G’s office on June 19. Executive Director of Georgian Lawyers for Independent Profession (GLIP) awarded the participants. After finishing the Q&A session, two students became employed according to their professions. G4G in cooperation with the MoE and GTU, organized the conference, “Young Leaders in Georgian Energy Sector.” The goal of the conference was to strengthen and promote young leaders’ role in the Georgian energy sector, stimulate open discussion and exchange information on recent developments in the energy sector. The conference was attended by more than 80 students from GTU and ISET and representatives of the MoE and GNERC. Presentations were made by GTU students from the energy and telecommunication faculties and G4G staff. Engage Women in the National PPD. G4G continues to engage women in business and advocacy skills capacity building. In Quarter 3, G4G awarded the non-governmental organization (NGO) Economic Games Club to conduct the “Women Capacity Building Activities in Shida Kartli Region” grant program, which will support engagement of thirty women from Shida Kartli in economic activities by increasing their
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business and advocacy skills. One-hundred and eighty-one applications to participate were submitted and 50 were shortlisted. The thirty participants will be selected in Quarter 4. As part of the Young Female Leaders training program, in April, G4G in collaboration with Peace Corps and Believe Foundation conducted a two-day workshop on leadership and advocacy that aimed to advance leadership skills, expertise in advocacy, marketing and organizational development among youth. Three international experts from the Peace Corps gave guidance to 21 female students on how to conduct advocacy campaigns, strengths, weaknesses, opportunities and threats (SWOT) analysis and use a blend of communication channels to reach the public. The students, divided into four groups, presented case studies on public policy formation and conducted role play on leadership scenarios. G4G worked closely with the Academy of the Ministry of Finance (MoF) and Women Business Council to provide four trainings in May for women entrepreneurs on audits, tax, customs and leadership. An expert from the RS Audit Department delivered a two-day training session designed for 15 women entrepreneurs and discussed audit of primary documents, accounting and booking, and tax offense classifications and enforcement. Head of the Customs Department at the MoF delivered training on customs procedures, including types of declarations, import and export procedures, electronic services and software modules that simplify procedures for taxpayers. Updates regarding legislative amendments were also introduced. A trainer from the Academy of the MoF also delivered training on leadership and management for high and mid-level managers, focusing on forms of leadership, strategic management, effective communications and team motivation. Reform Progress Tracking System (ReforMeter). On May 23, as part of G4G’s grant program “Georgian Reform Progress Tracking System,” ISET-PI in collaboration with G4G officially launched ReforMeter. Shamenna Gall, Deputy Director of the USAID Georgia Economic Growth Office, Eric Livny, ISET-PI President, and Bruno Balvanera, EBRD Director for Caucasus, Moldova and Belarus, opened the ceremony with more than 100 representatives from media, civil society, public and private sectors, and youth. ISET-PI presented ReforMeter – a system that tracks the progress of the reform implementation process in Georgia, and three reforms evaluated within the project (https://reformeter.iset-pi.ge). ReforMeter will generate analysis of reforms’ progress to support policy making and PPD, and thereby promote informed debates about reform policy decisions, improve accountability, and help build trust between the GoG and general public. Prior to the launch event, ISET-PI completed the evaluation of the second reform area on Agriculture Development under the EU-Georgia AA. A stakeholder meeting that finalized the evaluation was moderated by Lekso Aleksishvili of PMCG. Participants discussed the reform’s progress and the status of the sector’s development. At the end of the meeting, stakeholders evaluated the reform and submitted feedback to ISET-PI staff. During Quarter 3, ISET-PI also completed the evaluation on Capital Market Reform, the third reform area covered by the project. Bruno Balvanera from EBRD moderated the ReforMeter Steering Committee discussion where participants reviewed the reform’s progress and the status of the sector’s development. At the end of the meeting, stakeholders evaluated the reform and submitted feedback to ISET-PI staff. The first evaluation under ReforMeter was completed in Quarter 2 on SME/innovation policy. PPD Tracking System. On April 19-21, G4G and IDFI participated in a workshop and conference in Kiev, Ukraine, on PPD activities in six eastern partnership countries (Moldova, Ukraine, Belarus, Azerbaijan, Armenia and Georgia) organized by the EU project “East Invest 2.” During the conference, IDFI presented the PPD Tracking System. The PPD Tracking System gained the attention of participants, especially an EC representative who stated that not only was the system interesting, but it would be considered as a model for other countries within the eastern partnership. The EC representative confirmed that she will inquire more about the system during her next visit to Georgia. During Quarter 3, IDFI worked on the periodic evaluation of the laws submitted to the Parliament in the period of September 2016 – August 2017. In the middle of June, IDFI developed the second interim evaluation report and presented it to G4G. As a next step, in July, IDFI will organize training for civil servants and representatives of CSOs on the initial stages of policy formulation. The final annual evaluation will be prepared in September 2017.
GOG CAPACITY STRENGTHENING Support National PPD Platform. Refer to the section “SUPPORT PUBLIC PRIVATE DIALOGUE” 5.1.1 for further information.
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Support National RIA Framework. During Quarter 3, G4G worked closely with the Office of the Parliamentary Secretary under the Government’s Administration on RIA Institutionalization. The Ministry of Justice (MoJ) prepared the draft legal amendments to the Law on Normative Acts that envisions the institutionalization of RIA from September 2018. Based on the draft Law, RIA will be mandatory for every new draft law as well as for every amendment to key business related laws. The Office of the Parliamentary Secretary requested additional capacity building activities for the Ministries and Parliament staff on RIA implementation before RIA institutionalization will enter into force. On April 28-30, G4G in cooperation with the EU project “Legislative Impact Assessment, Legal Drafting and Representation,” conducted training for personnel of the Ministries, Government Administration and Parliament in RIA Methodology. During the next quarter, a G4G local advisor will coach the Ministry of Education and Science (MoES) staff throughout implementation of the pilot RIA on the draft Law on Vocational Education. On April 26, G4G and BEC, in close collaboration with the EU Integration Committee and Sector Economy and Economic Policy Committee of the Parliament of Georgia, organized a PPD on RIA Institutionalization in Georgia. Refer to the section “SUPPORT PUBLIC PRIVATE DIALOGUE” 5.1.1 for further information. In order to support GoG in evidence based decision making, G4G continued conducting RIAs to include RIA on Pension Reform, Water Resources Management Law, ETM, and VAT Reform during Quarter 3. Further information on each RIA can be found in each reform area of this report.
PRIVATE SECTOR & CSO STRENGTHENING In April, G4G, EU project “East Invest 2” and EPAC member Center for Competition organized a PPD on policy issues among the private sector, GoG and Parliament. The PPD covered challenges in PPD, the PPD platform in the Parliament, importance of RIA, tax liability liberalization, challenges in intellectual property (IP) protection as well as insolvency. Representatives from the GoG, private sector, civil society and the international community discussed challenges faced by the private sector and presented recommendations. The PPD was followed by a G4G and “East Invest 2” conducted a joint, four-day workshop on positioning in advocacy for business associations. Three international experts from the EU and Eastern Partnership (EaP) countries trained participants in writing position papers, drafting regulations and laws, presenting proposals and developing negotiation skills. The participants were able to apply advocacy skills in the course of several group work exercises. The final day of the workshop was dedicated and summarized to a round table event - "Position of Georgian Businesses to the Government and International Community." Business associations, facilitated by international and local experts, outlined an action plan for stakeholders in PPD for priority economic reform implementation in Georgia. Five working groups were established to prepare proposals for reforms and recommendations. The groups will work on: innovation, access to finance, taxes, the business environment and access to markets. In May, G4G and EPAC member Infrastructure Construction Companies Association (ICCA) conducted a PPD between the SPA and the construction sector. SPA representatives presented recently implemented reforms and updates on new services in Georgian state procurement. New challenges in the construction industry, setting primary prices during the tender procedures and new tools and opportunities in market research were also discussed. The possible public-private partnership between SPA and ICCA’s platform Construct.ge was also announced. In Quarter 3, G4G and EPAC began working on the Coalition’s long-term sustainability plan. In May, G4G, with consultant Camelia Bulat, organized a discussion to consider options for EPAC’s governing structure. Bulat shared her international experience on coalition building, delivered a SWOT analysis on EPAC, discussed structure, operations and membership considerations. During the discussion, EPAC members suggested options for the governing structure. It was agreed that discussions will continue on a regular basis and EPAC’s governing structure will be finalized by August. On April 19-21, G4G participated in a workshop and conference in Kiev, Ukraine, on PPD activities in six eastern partnership countries (Moldova, Ukraine, Belarus, Azerbaijan, Armenia and Georgia) organized by “East Invest 2.” During the conference, Maya Eristavi, G4G Advocacy and Capacity Building Component Lead, presented EPAC activities and coalition building best practices.
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4.1.2 PPD SUCCESSES AND LESSONS LEARNED As part of G4G’s grant activity PPD Quality Tracking System, IDFI organized events on the initial stages of policy formulation, before formal initiation in the Parliament. The events revealed that effective dialogue between the private and public sectors is still an issue in Georgia and engagement remains challenging on many levels. There is a need for best practice integration and experience sharing, as well as acknowledgement of the importance of PPD at the stage of policy development within the public and private sectors. G4G will continue organizing events dedicated to other stages of policy formulation in order to cover the entire cycle of the legislation development process. PPD on “RIA System Institutionalization in Georgia” showed that the main driver of the RIA Institutionalization Reform is the private sector, although the issue was eventually lifted higher in the reform agenda of the GoG and Parliament as a result of advocacy. 4.1.3 CHALLENGES TO ACHIEVING REFORM RESULTS According to G4G’s observations and MoESD feedback, there is a need for revising the management structure of TAG. Specifically, MoESD in consultation with G4G decided to have business associations as members as opposed to individual businesses. RIA institutionalization in Georgia is still a challenge. Many institutions still lack the capacity to conduct RIA. G4G and other donors (EU, German Society for International Cooperation (GiZ), United Nations Development Program (UNDP)) are ready to conduct capacity building for civil servants on RIA. G4G has been conducting training on the theoretical aspects of RIA, and will continue this in addition to practical application. EPAC lacks a formal governance structure, which is a key component to ensure its long-term sustainability. G4G is working with EPAC to build an effective structure and strategy and projects to have a plan in place in the upcoming two quarters. As revealed by the “Business Perception Survey,” many business associations lack the capacity to offer services to their members as their counterparts in EU and other developed countries. This is a critical shortfall, as many prospective members do not see value in joining such associations and as a result, the associations face difficulties in acquiring funding (most associations are membership-fee financed). By the close of Year 3, G4G plans to issue a grant to conduct a comprehensive capacity building project to improve associations’ services and human resources.
4.2 ENERGY STRATEGY REFORM
Coherent strategy that leads to the effective, economically justifiable and sustainable REFORM OBJECTIVE energy production, delivery and consumption consistent with environmental requirements.
4.2.1 PROGRESS AGAINST THE WORK PLAN SUPPORT PUBLIC-PRIVATE DIALOGUE During the Regional Energy Summit, on May 25, a segment consisting of PPD was dedicated to energy sector development and the GoG’s long-term energy strategy. Refer to the section “SUPPORT PUBLIC PRIVATE DIALOGUE” 5.3.1 for further information. GOG CAPACITY STRENGTHENING During Quarter 3, G4G awarded a grant to World Experience for Georgia (WEG) to evaluate international electricity production models, to consider Georgia’s structure and identify the most suitable model for adoption. The grantee will develop market centered energy planning (M-CEP) models, work closely with Energy Efficiency Center (EEC) on demand forecasting, and raise the GoG’s awareness on production modeling. During Quarter 3, G4G awarded a grant to EEC to evaluate alternative models for demand forecasting to assist energy stakeholders and CSOs in Georgia to select the optimal model for a long-term electricity demand forecasting solution. Forecasting is a necessary and important function in the energy sector, inaccurate load forecasts may result in financial burden or even failure of a system. A large number of energy demand forecasting methodologies and models are developed and applied worldwide by energy agencies, planners and relevant stakeholders. These models provide a broad range of analysis
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capabilities. However, due to the number and complexity, it is difficult to identify which model might be most useful for Georgia’s needs.
PRIVATE SECTOR & CSO STRENGTHENING G4G in cooperation with the MoE and GTU, organized the conference, “Young Leaders in Georgian Energy Sector.” The goal of the conference was to strengthen and promote young leaders’ role in the Georgian energy sector, stimulate open discussion and exchange information on recent developments in the energy sector. The conference was attended by more than 80 students from GTU and ISET and representatives of the MoE and GNERC. Presentations were made by GTU students from the energy and telecommunication faculties and G4G staff. During the GTU conference, G4G presented new trends and international best practices on energy planning and developing a sound energy strategy for CSOs and private sector representatives. In the process of undertaking the grants “Electricity Production Modeling” and “Electricity Demand Forecasting Model,” WEG and EEC have been developing their and other stakeholders’ capacity on using new forecasting and electricity generation models. Refer to “GoG Capacity Strengthening” under 5.2.1 for further information.
4.2.2 PPD SUCCESSES AND LESSONS LEARNED The close coordination between USAID, EU4Energy and WB created a unified message to GoG and increased awareness of the private sector on upcoming reforms and goals. It also gave an opportunity for stakeholders to participate in discussions in an informed manner.
4.2.3 CHALLENGES TO ACHIEVING REFORM RESULTS Georgia still lacks a comprehensive energy strategy document, which will set out the milestones and required resources for achieving the goals described in the Energy Policy. Lack of human and institutional capacity, available data and modern tools for energy planning are the main challenges in developing the energy strategy document. With USAID Hydropower Energy Planning Project (HPEP)/G4G assistance, MoE has developed the first draft of the Energy Strategy which needs further elaboration on future energy demand scenarios and an optimal production model for electricity generation.
4.3 ELECTRICITY TRADING MECHANISM REFORM
Effective ETM to enable Foreign Direct Investment (FDI) necessary for development of REFORM OBJECTIVE small and medium hydropower plants which are vital for clean and low cost energy for Georgia.
4.3.1 PROGRESS AGAINST THE WORK PLAN SUPPORT PUBLIC-PRIVATE DIALOGUE During Quarter 3, G4G along with several MPs, participated in a PPD event with Mariam Valishvili, Deputy Minister of Energy, and Vakhtang Ambokadze, General Director of Electricity System Commercial Operator (ESCO). The meeting was organized by the Business Association of Georgia (BAG) and the purpose of the meeting was to discuss the impact of recent changes in regulations on the private sector. MPs expressed their concerns and highlighted the importance of inclusion of private sector representatives in the decision making process. G4G is supporting MPs to consolidate their concerns, jointly discuss challenges and raise “one voice” to GoG. On May 25, G4G in cooperation with the MoE and EU4Energy Programme, led by the Energy Community Secretariat, held the “Regional Energy Summit.” Vice Prime Minister and Minister of Energy, Kakha Kaladze, and US Ambassador, Ian Kelly, participated as opening speakers. The Summit was attended by representatives of the Parliament of Georgia, MoE, Ministry of Energy and Natural Resources of Turkey, Ministry of Energy Infrastructure and Natural Resources of Armenia, IFIs, energy sector stakeholders and academia. The following areas were discussed during the Summit: Reforms expected from Georgia under the Energy Community Treaty and their benefits on cross-border energy cooperation; regional energy infrastructure needed to foster the trade and security of supply; electricity trading mechanism; cross-border trading opportunities; and development of a competitive electricity
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markets in the region. A PPD session was also held as one of the three panels of the summit. Private sector representatives had a chance to exchange views, question and receive feedback from MoE and GNERC regarding ongoing and planned reforms and their impact on the private sector. GOG CAPACITY STRENGTHENING During Quarter 3, G4G held several meetings with GNERC and Georgian State Electrosystem (GSE). As agreed, GNERC established an internal working group to simulate impacts of ETM implementation using electricity market simulation software developed by G4G. G4G held an initial training session in GNERC and introduced practical application of the simulation software. In Quarter 4, G4G will install the simulation software at GNERC and assist GNERC’s staff in conducting simulations. As per MoE’s request, G4G announced a grant to conduct a RIA on ETM. ILIAUNI was selected for the activity and the agreement was signed at the end of Quarter 3. The assessment will estimate ETM’s impact on moving from a monthly to hourly settlement system and impact of the competitive electricity market on businesses, consumers and the state budget. During Year 3 of the project, G4G has been actively supporting energy sector stakeholders to organize a study tour to the US or other selected country for capacity building on ETM for GoG stakeholders and private sector representatives. Due to a lack of consensus on a destination and schedule, and considering the recommendations of stakeholders, G4G decided to cancel the study tour. ENERGY (ELECTRICITY) TRADING POLICY GOVERNANCE On April 24, the Parliament of Georgia ratified the Accession Agreement of Georgia to the Energy Community Treaty. By this agreement, Georgia made a commitment for approximating Georgia’s energy sector with the EU energy market rules and regulations. G4G has been actively conducting capacity building activities of GoG stakeholders regarding the EU energy package requirements which are now obligatory under the Energy Community Treaty. G4G also supported MoE in preparation of the package for ratification. Currently, ETM is fully compliant with the energy package requirements. As G4G actively supports GoG in the process of implementing reforms in compliance with obligations undertaken by the EU-Georgia AA and the Energy Community Treaty, it also undertook the role of moderator and organizer of Steering Committee/joint working group meetings to discuss the new draft Energy Law (initial draft was proposed by Energy Community Secretariat). In the initial stage, G4G provided a Georgian translation to MoE, prepared a presentation on main concepts of the draft Law and facilitated discussion among energy sector stakeholders at the decision making level. The initial version of the draft Law covered electricity, gas and water supply sectors, but due to MoE’s request, G4G adjusted the draft Law to the electricity sector. Currently, MoE is internally reviewing the draft and once the review will be completed, MoE will present it to energy sector stakeholders for comments. MoE intends to initiate the new Electricity Law at the Parliament in the fall of 2017. According to the obligations taken by Georgia under the Energy Community Treaty, a new market model should be in place by January 2019. In order to prepare the market for transition, MoE initiated draft amendments to the existing Electricity and Gas Law with G4G support, which was adopted by Parliament on June 30. Amendments consider deregulation of HPPs below 40 MW and mandatory participation in the wholesale market (as direct costumers) by costumers that consume electricity for their own needs and are connected to the grid on 35 kv or higher. Currently, there are only two direct customers (except distribution companies) and this initiative will increase the number of direct customers to approximately 60. This is a major milestone towards establishment of the competitive electricity market and will strengthen competition, liquidity and transparency in the energy sector. Considering changes under structure of the market, G4G continued mapping clearing and settlement mechanisms. For this purpose, G4G conducted several consultations with potential clearing and settlement institutions including the National Bank of Georgia (NBG) Central Depository. PRIVATE SECTOR & CSO STRENGTHENING During Quarter 3, G4G organized several meetings/workshops with MPs to provide status updates on the ETM implementation process, discuss challenges in the energy sector and the creation of an MP association. MPs expressed their concern regarding changes made by the GoG to current legislative acts, namely to the market rules, without holding any consultations with the private sector. As mentioned by MPs, such changes have negative impacts on business activities of companies, especially small hydro-power plants (SHPPs) as well as on the ability to attract investors. MPs expressed a strong interest in establishing a market players association to advocate for their interests in a united voice. G4G
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facilitated the drafting of the association charter and other founding documents. On June 30, the founding meeting of the association was held and “Georgian Hydropower Association” (GHA) was established. The official registration of the association will be conducted in July 2017. GHA will serve as an official platform for MPs to collectively address issues in the competitive electricity market with the GoG. G4G in collaboration with European Federation of Energy Traders (EFET), Correggio Consulting and Georgian Water and Power (GWP), conducted a workshop – “EFET Master Trading Agreements and Contractual Standards for Energy Trading in the EU.” The workshop was designed as an intensive, across-the-board training seminar for delegates currently using, as well as delegates now desiring to become familiar with the EFET general agreements concerning the delivery and acceptance of electric power and natural gas. The workshop was specifically essential for energy trading lawyers, traders and front office personnel, contract negotiators, contracts administration managers, risk and credit managers and treasury personnel responsible for collateral administration who are active in the European energy markets. It also informed current and future energy traders on cross-border trading operations. This will also assist Georgian-Turkey cross-border trade through standardizing trading contracts and other aspects. The presentations were delivered by Dr. Jan Haizmann, EFET Board Member and Chair of the EFET Legal Committee, and Jerome Le Page, Manager for European Electricity Markets at EFET. The event was attended by 45 representatives of the MoE, ESCO, GNERC, GSE, USAID, EU4Energy and MPs. G4G provided consultations and support to Nicholas Steckler, Electricity Research Analyst at Bloomberg New Energy Finance, Energy Research Division of Bloomberg LP. The aim of Steckler’s visit in Tbilisi was to prepare the Climatescope project. Climatescope is a public report that aims to collect data on emerging economies of 56 counties to attract investment to each country’s clean energy sector and rank the countries based on their attractiveness for renewable energy investments. This year, Georgia will join the list of these countries. G4G provided data on implemented projects in the hydropower sector, the enabling environment in Georgian hydropower and detailed information on planned changes in the electricity market. The report is planned to be finalized in July 2017. 4.3.2 PPD SUCCESSES AND LESSONS LEARNED Establishment of the MPs association will create a PPD platform for evidence based discussions and overall more effective communication with the GoG. During private sector consultations with GoG institutions on the development of the competitive market, the main challenge that still remains is the lack of understanding and knowledge of the new market principles and concepts among private sector representatives. It became obvious that prior to PPD, capacity building activities must be carried out to have a mutual understanding among the MPs on planned reforms in the energy sector. It is also important that MoE improves its capacity to better communicate the content of the reforms, illustrate vision and provide a holistic view of the energy sector’s future. 4.3.3 CHALLENGES TO ACHIEVING REFORM RESULTS By initiating the previously mentioned amendments to the Electricity and Gas Laws, MoE made commitment to further open and liberalize the Georgian electricity market and strengthen competition in the energy sector. While the amendments are clearly positive developments toward implementation of ETM, the following challenges to achieve desired results remain: Lack of capacity in electricity trading among MPs; Limited time to implement the amendments to the Law; Absence of regular communication between MoE and MPs on the new reform.
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4.4 WATER RESOURCE MANAGEMENT REFORM
Equitable transparent sustainable allocation of fresh water resources across multiple REFORM OBJECTIVE competing interests is necessary to prevent grave failure to serve legitimate needs.
4.4.1 PROGRESS AGAINST THE WORK PLAN
SUPPORT PUBLIC-PRIVATE DIALOGUE Water Resource Management PPD. During Quarter 3, G4G organized a PPD workshop on the WEAP software model for the Aragvi River Basin. Refer to the section “GOG CAPACITY STRENGTHENING” 5.4.1 for further information. GOG CAPACITY STRENGTHENING Tariff Methodology for Irrigation and Drainage. Recently, the Irrigation Strategy of Georgia 2017-2020 was approved by the Minister of Agriculture. The concepts incorporated in G4G’s Irrigation Tariff Methodology and the Recommendations of RIA on Tariff Methodology were considered and reflected in the Strategy. More specifically, G4G recommended regulation of irrigation service providers by GNERC and irrigation service providers to operate under the lower bound (LB) pricing model until they remain state owned. In case of operations that yield profit, after the attraction of private funds, and with the approval of GNERC, the upper bound (UB) pricing model can be applied, which was also considered as an option under G4G’s Irrigation Tariff Methodology. The same recommendations are considered under the Irrigation Strategy. G4G has conducted several capacity building activities for GNERC and Georgian Amelioration (GA) regarding tariff methodology and discussed the costs and benefits of each option. G4G’s recommendation was to regulate irrigation service providers under the LB pricing model option as it minimizes the negative socio-economic consequences associated with the introduction of the new tariff setting system. Support Drafting of Hydro-Amelioration Law. During Quarter 3, drafting of the Hydro-Amelioration Law was pending as the efforts of MoA and GA were dedicated to finalize and approve the Irrigation Strategy of Georgia 2017-2020 as it would clarify the directions of sector development to serve as a basis for the new Law’s development. As G4G was informed by GA, a working group for the Law is planned to be reestablished under MoA and G4G is being considered as a participant. G4G has already developed a report with comments and recommendations on the initial draft Hydro-Amelioration Law. Develop Water Framework Directive (WFD) Implementation Guidance Documents for Georgia. G4G continues to support Ministry of Environment and Natural Resources Protection (MENRP) in improving policy and the regulatory environment in water resources management. The AA Roadmap recommends development of WFD guidance documents to support sound implementation of the WFD. Guidance documents are intended to provide an overall methodological approach, but they must be tailored to circumstances in Georgia. G4G held consultations with MENRP and its Water Division to select the relevant EU WFD Guidelines to be tailored to the needs of the country. As a result, the WFD Guideline #3 (Analysis of Pressures and Impacts) and WFD Guideline #13 (Overall Approach to the Classification of Ecological Status and Ecological Potential) were selected as the most appropriate for the time being for Georgia. Both Guidelines will reflect requirements of the EU WFD and other water pollution related directives and will guide experts to implementing the WFD and preparing River Basin Management plans. During Quarter 3, G4G grantee, Georgia’s Environmental Outlook (GEO), began the “Development of Water Framework Directive Implementation Guidance Documents for Georgia” project. The first draft of the guidance document on analysis of pressures and impacts for Georgia was prepared by international and Georgian experts. As a next step, GEO will organize a stakeholder meeting with support of MENRP, National Environmental Agency (NEA), G4G and other relevant agencies to discuss and finalize the draft guidance document. Development of the water resources management guidance documents will continue through August 2017. The documents are intended to assist stakeholders in implementation of the specific provisions of WFDs.
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WATER RESOURCE MANAGEMENT (WRM) Water Demand Forecast. G4G finalized the report Water Demand Forecast for the Aragvi River Basin in March, which was used in Water Allocation and Planning (WEAP) scenarios during Quarter 3. The report presents the estimates of future water demand for the selected pilot river basin during 2020-2050, while considering climate change implications. Water Allocation Scenarios. G4G, together with its grantee Environment and Development (ED), continued work to establish a WEAP model for Aragvi River Basin. ED developed a report on the WEAP model set-up for the Aragvi River Basin pilot. This report was developed based on stakeholder consultations and has been updated considering feedback and comments of international water experts. On May 5, ED organized a workshop to present the baseline model for Aragvi River Basin water-use patterns generated in the WEAP. Representatives from governmental agencies, local municipalities, the private sector and NGOs discussed the current status of the WEAP model and existing trends for future sector developments within the pilot basin. Feedback provided during the workshop will be reflected in ED’s follow-on activities aiming to set different WEAP scenarios of water use in the Aragvi River Basin, including scenarios such as hydropower development, irrigation expansion, industrial growth and tourism and recreation development. Environmental Flow (EF) Assessment. G4G finalized the Environmental Flow Methodology and submitted the report to USAID in May 2017. EF standards are among those aspects which are not adequately regulated in Georgia. This non-regulated approach may result in violation of water users’ rights as well as degradation of habitats. The proposed Methodology was discussed, negotiated and well accepted by MENRP and other stakeholders. MENRP agrees that the Methodology is aligned with WFD, the implementation of which is Georgia’s commitment under the EU-Georgia AA. On June 9, G4G met with United Nations Development Program Global Environment Finance (UNDP- GEF) Kura II project representatives to discuss potential collaboration to further push implementation of G4G’s Environmental Flow Methodology. UNDP intends to adopt the Methodology and elaborate on its implementation plan. UNDP and G4G agreed to organize a joint stakeholder workshop on implementation of EF methodology in the second week of July, which should be followed by implementation of the methodology at the river basin level. Gauging Stations (GS) at Aragvi River Basin. G4G continues work on the expansion of the gauging station network within the boundaries of the Aragvi River. The five sets of measuring, telemetry and energy supply equipment were delivered at the end of June and are in the process of installation, programming and configuration. Expansion of the gauging station network will provide a strong basis for surface water resource management (monitoring, modeling, assessment, permitting) in the boundaries of the Aragvi River Basin. The network will increase hydrological data availability and improve the quality and reliability of data for proper decision making and validating estimations/projections required for WEAP. Commissioning of the new gauging stations is projected for the end of July 2017. PRIVATE SECTOR & CSO STRENGTHENING RIA. G4G continues to provide capacity building and support to GoG through the RIA on Water Resources Management Law (WRML). ISET-PI has been selected for developing the RIA on WRML and it is expected that the outcome of the RIA will facilitate the Law’s approval process by Parliament. During Quarter 3, G4G and its grantee, ISET-PI, conducted various consultations with MENRP, Committee of Environmental Protection and Natural Resources at the Parliament of Georgia and other stakeholders. ISET-PI conducted a detailed review of the current and proposed regulatory frameworks of water resource management in Georgia and proposed comparisons between the two following policy options: (1) the do nothing option; and (2) full implementation of proposed regulations. A quantitative cost and benefit analysis will be developed and accompanied by a qualitative evaluation of the impacts for each scenario. As a next step, G4G plans to organize a water sector stakeholder workshop and discuss the draft RIA report findings with a broad audience. Stakeholder feedback will be reflected in the final document. 4.4.2 PPD SUCCESSES AND LESSONS LEARNED EF methodology development went through regular consultations and PPDs during the previous quarter. The process was iterative and transparent, attracting a wide range of actors. This led to recognizing the need of applying the methodology at the national level from GoG’s side and follow-up by a donor organization. In particular, the UNDP-GEF Kura II project plans to implement the EF methodology at the selected river basin.
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The PPD platform for modeling of water allocation scenarios showed positive results during Quarter 3. Involvement of various actors from the beginning created awareness and ownership among participants. All the feedback and recommendations are carefully considered during PPD workshops and reflected in development of the WEAP model for water allocation in the Aragvi River Basin. 4.4.3 CHALLENGES TO ACHIEVING REFORM RESULTS Lack of coordination among the GoG institutions and a lack of awareness of the river basin management concept are seen as a challenge for introduction of the new approach of WRM in practice. There is a strong need to build capacity of GoG sectoral ministries and the Parliament of Georgia. Specifically, the Parliamentary Commission on Environment and Natural Resources requested support in raising their capacity in WRM issues linked to EU WFD and in the lawmaking process. G4G will continue to support the GoG in capacity strengthening and raising awareness to foster successful implementation of AA requirements. Substantial approximation work must be conducted including secondary legislation under the EU WFD. Lack of awareness among CSOs and the private sector seems to be one of the challenges for successful implementation of the water sector’s reform. G4G held numerous bi-lateral meetings and workshops with different stakeholders, including the private sector, NGOs, academia and youth. Meetings clearly showed that CSOs, the private sector, academia and other stakeholders do not have a proper understanding of the upcoming reforms, and lack the proper perception of the upcoming changes and benefits linked to the reform. Stakeholders recognize that there is a need to raise their awareness on upcoming water sector reforms and to clarify concerns linked to the introduction of new regulations and approaches for WRM.
4.5 TAX ENFORCEMENT AND ADMINISTRATION REFORM
REFORM OBJECTIVE Direct and immediate positive effect on tax compliance for all businesses.
4.5.1 PROGRESS AGAINST THE WORK PLAN SUPPORT PUBLIC-PRIVATE DIALOGUE No specific activities were planned during the reporting period. GOG CAPACITY STRENGTHENING Tax Administration Improvement. International Financial Reporting Standards (IFRS) Trainings. Due to the increasing number of audits coupled with a high level of staff turnover, the RS is facing a constant need for new tax auditors with relevant knowledge and skills. To fill this gap, G4G continues supporting the RS through IFRS trainings for newly hired tax auditors. G4G has completed the training of trainers (ToT) training program and IFRS training for two groups of tax auditors. In Quarter 3, G4G consultant Naira Kharkheli, assisted by a beneficiary of the ToT sessions, began a training session for the third group of RS auditors including five customs officials, to be completed in Quarter 4. Tax Payment Simplification. G4G is evaluating the Tax Payment Simplification Reform’s impacts. Under the new system launched on January 1, 2016, taxpayers file taxes using a single treasury code as opposed to the former, more complicated system, where codes were often misused. G4G conducted a series of meetings with RS representatives to identify and discuss the benefits of the reform for the RS and taxpayers. The evaluation is planned to be completed by the end of August 2017. It is projected that 17 million USD in net economic benefit for businesses and the GoG over the next 10 years will be realized. Analysis of Tax Dispute Cases. G4G held a series of meetings with representatives of the RS on the recommendations developed as a result of the Analysis of Tax Dispute Cases. The aim of the meetings was to receive feedback from RS staff. Extremely acute discussions were held with representatives of the Tax Dispute Department on the use of discretionary powers and the obligation to substantiate relevant decisions. Meetings revealed some developments in this area. G4G is considering modifications to their recommendations to reflect those developments. Tax Code Review. Plain Language Guide. In collaboration with EPAC member GSMEA, G4G prepared the Plain Language Guide on the New CIT Model. G4G obtained comments from the RS which are reflected in the Guide. The purpose of the Guide is to help taxpayers understand the main differences
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between the old and new model of CIT, such as the definition of taxable base, relevance of financial accounting and timing of payments. The Guide will be published and disseminated at training sessions to be organized by GSMEA and G4G in regions and will be posted on the website. The new CIT model, developed with G4G support, entered into force on January 1, 2017. PRIVATE SECTOR & CSO STRENGTHENING In order to facilitate analysis-based and informed approximation of Georgian legislation with the EU- Georgia AA, G4G issued a grant to implement RIA on VAT reform, comprising of two components: (1) impact of the implementation of the selected provisions of the EU VAT Directive; and (2) impact of VAT exemption/relief on recycling companies and incentives for businesses to reduce their ecological footprint. The RIA is planned to be completed in December 2017. 4.5.2 PPD SUCCESSES AND LESSONS LEARNED The Plain Language Guide on the New CIT Model addresses the concerns voiced during PPDs prior to the new CIT’s enactment. 4.5.3 CHALLENGES TO ACHIEVING REFORM RESULTS The tax dispute systematization reform has been slow due to insufficient engagement of the RS in the process of reviewing and analyzing the tax dispute cases. G4G decided to take proactive steps and lead the revision with the relative departments of the RS. As a result, relevant changes were made to the systematization study.
4.6 CUSTOMS ADMINISTRATION AND ENFORCEMENT REFORM
Elimination of barriers and inefficiencies that has an immediate impact on cross-border REFORM OBJECTIVE trade.
4.6.1 PROGRESS AGAINST THE WORK PLAN SUPPORT PUBLIC-PRIVATE DIALOGUE On June 2, G4G organized a PPD on AEO to discuss financial solvency requirements of AEO program participants. Financial solvency is a new assessment area never monitored under the "Gold List" program. Therefore, the RS lacks the capacity to establish standards and evaluate applicants against financial solvency. Representatives from the financial audit sector advised to develop a set of standards and subsequent mechanisms for measurement. Another meeting will be held to discuss preliminary draft standards elaborated by the RS. GOG CAPACITY STRENGTHENING Authorized Economic Operator Program Implementation. In June 2017, the RS and G4G joint AEO working group finalized a draft procedural manual (self-assessment tool) for AEO status seekers. The self-assessment questionnaire is a common practice in European customs administrations, to help interested economic operators to assess their eligibility for the authorization criteria. The manual also includes practical guidance for customs auditors to look for specific elements of authorization criteria that applicants should adhere to. On June 20-24, the AEO working group organized a four-day off-site session in Batumi, sponsored by International Finance Corporation (IFC). Working group members finalized the manual to make it fully consistent with AEO legislation. Customs Post-Clearance Control. G4G organized training in book-keeping and accounting standards for the customs post-clearance audit (PCA) team. Five customs auditors were trained in IFRS standards. Deeper understanding of IFRS and overall book-keeping standards are important for effective post- clearance audit as well as assessment of companies’ financial solvency issues under AEO. PRIVATE SECTOR & CSO STRENGTHENING No specific activities were planned within the reporting period. 4.6.2 PPD SUCCESSES AND LESSONS LEARNED Nothing significant to report.
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4.6.3 CHALLENGES TO ACHIEVING REFORM RESULTS AEO requires new criteria for companies to be qualified to participate; this may prove to be a challenge for some companies. RS will need to work closely with the private sector to raise their awareness and build capacity to meet the new requirements. This should be considered in a timely fashion. 4.7 TRADE FACILITATION/TRANSPORT AND LOGISTICS REFORM
Elimination of barriers and inefficiencies that has an immediate impact on cross-border REFORM OBJECTIVE trade and facilitate greater integration with EU countries.
4.7.1 PROGRESS AGAINST THE WORK PLAN SUPPORT PUBLIC-PRIVATE DIALOGUE On April 26, G4G grantee, Association of Freight Forwarders of Georgia (AFG), organized a workshop to evaluate initial findings and discuss priorities within the Competitiveness Analysis of the Caucasus Transit Corridor. The analysis aims to analyze transport and logistics bottlenecks and opportunities for development/improvement of the Georgia-Azerbaijan transit corridor. The workshop tackled the reality that to be a competitive alternative to other routes linking Central Asia and China to western countries, the CTC must reduce costs, shorten transit time, and increase reliability. During the event, transportation industry leaders shared updates about pending improvements in Georgian and Azerbaijani transportation infrastructure, while identifying areas for further improvement. A detailed discussion was held about the need to eliminate particular bottlenecks and further facilitate trade. The parties also considered both the local and global contexts at the CTC workshop. GOG CAPACITY STRENGTHENING No specific activities were planned during the reporting period. PRIVATE SECTOR & CSO STRENGTHENING Competitiveness Analysis of the Caucasus Transit Corridor. In Quarter 3, G4G grantee, AFG, finalized the Competitiveness Analysis of the Caucasus Transit Corridor. The study identified infrastructure, policy, technology and capacity gaps in Georgia and Azerbaijan as transit corridor countries. Discussions with the Georgian ports, railway and shipping lines have identified challenges concerning infrastructure development such as existing infrastructure bottlenecks and the need to increase supply chain efficiency and shortfalls in regards to regulatory framework. G4G’s grant team explored the problems facing the CTC and identified current limitations of the existing road, rail, and water infrastructure. Shippers’ perspectives and the tradeoffs between time and cost that can drive decisions and generate value for the shipper were also considered. G4G has engaged Cold Brook Ventures, Limited Liability Company (LLC), a US-based small business, to support implementation of the Competitiveness Analysis of the CTC. 4.7.2 PPD SUCCESSES AND LESSONS LEARNED The workshop in support of the Competitiveness Analysis of the CTC proved to be a model PPD event due to evidence based discussions, i.e. preliminary findings of the Analysis and a wide range of stakeholders presented at the workshop, including freight-forwarders from Georgia and Azerbaijan, as well as government representatives. The discussions also produced constructive feedback that was incorporated into the final report Competitiveness Analysis of the CTC. 4.7.3 CHALLENGES TO ACHIEVING REFORM RESULTS CTC is at the cross-roads of reshaping international trade routes. China is seeking alternative routes to access EU and Central Asian markets which also creates opportunity. Georgia and Azerbaijan must act strategically to address major bottlenecks hampering the CTC’s competitiveness.
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4.8 BANKRUPTCY AND LIQUIDATION REFORM
Reformed bankruptcy regime to remove barriers to entrepreneurship, efficiently recycle REFORM OBJECTIVE assets back to productive use and restore viable businesses to financial health through business rescue.
4.8.1 PROGRESS AGAINST THE WORK PLAN SUPPORT PUBLIC-PRIVATE DIALOGUE No specific activities were planned during the reporting period. GOG CAPACITY STRENGTHENING The public-private legal drafting committee, established under MoJ, developed a draft Law on Insolvency. The work is facilitated by the EU project “Support to the Development of Private and Administrative Law Systems in Georgia” (implemented by GiZ). The first draft of the Law is expected to be developed by the end of July 2017. The MoESD requested G4G assistance in providing international expertise for the revision of the draft. G4G plans to involve an international insolvency expert during Quarter 4. PRIVATE SECTOR & CSO STRENGTHENING The Assessment of the Georgian Insolvency System, as well as the advocacy campaign, showcased that existing statutory framework is unable to provide qualified insolvency managers. Known as administrators, managers, liquidators or trustees, insolvency office holders (IOHs) are central figures in collective insolvency proceedings. Understanding the importance of IOHs, G4G issued a grant program that intends to support the reform carried out by MoJ and GiZ by developing curriculum and delivering trainings to produce a pool of qualified insolvency office holders. The grant will also produce a draft Code of Ethics for IOHs applying international best practices, a detailed concept for the IOH’s association and IOH qualification requirements. Additionally, a certification scheme will be recommended that encompasses the curriculum and training program to be developed. The grant program will be implemented from September 2017 to January 2018. 4.8.2 PPD SUCCESSES AND LESSONS LEARNED Nothing significant to report. 4.8.3 CHALLENGES TO ACHIEVING REFORM RESULTS The major constraint still remaining is the lack of consensus among stakeholders (MoESD, MoJ, MoF and private sector) over the National Bureau of Enforcement’s (NBE) role as a trustee in insolvency proceedings. 4.9 LAND OWNERSHIP REGISTRATION REFORM
Certainty, clarity and predictability in land rights that is crucial for effective economic REFORM OBJECTIVE development of land.
4.9.1 PROGRESS AGAINST THE WORK PLAN SUPPORT PUBLIC-PRIVATE DIALOGUE Due to significant delays in the Systemic Land Registration Pilot Project, no PPDs took place. GOG CAPACITY STRENGTHENING The implementation of the Systemic Land Registration Pilot Project faced consistent delay even though the funding ($2.4 million) was allocated by the WB in 2014. Since November 2016, the process was expedited under pressure of the EU Budget Support Program, which was tied to the pilot project’s implementation and will be effective by the end of 2017. National Agency of Public Registry (NAPR) conducted a tender on procurement for the surveying service. NAPR plans to complete the pilot project by the end of December 2017. PRIVATE SECTOR & CSO STRENGTHENING No specific activities were planned during the reporting period.
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4.9.2 PPD SUCCESSES AND LESSONS LEARNED Nothing significant to report. 4.9.3 CHALLENGES TO ACHIEVING REFORM RESULTS MoJ and NAPR display skepticism on systemic land registration and the sporadic approach is preferred over the systemic one. Therefore, there is a risk that Government will implement the pilot project in haste and without due regard to the ultimate objective – a nationwide and comprehensive systemic registration.
4.10 STATE PROCUREMENT SYSTEM
To improve transparency of the state procurement system and will increase private sector REFORM OBJECTIVE participation resulting in increased quality.
4.10.1 PROGRESS AGAINST THE WORK PLAN SUPPORT PUBLIC-PRIVATE DIALOGUE G4G and EPAC member ICCA conducted a PPD between the SPA and the construction sector. Refer to the section “PRIVATE SECTOR AND CSO STRENGTHENING” 5.1.1 for further information. GOG CAPACITY STRENGTHENING No specific activities were planned during the reporting period. PRIVATE SECTOR & CSO STRENGTHENING G4G continues supporting SPA in implementation of its Communication Strategy. To address the problem of low business participation, G4G issued a grant aiming to increase awareness and knowledge of the business sector in regions on state procurement opportunities. The grant activities will target SMEs in the regions through training and relevant PPDs, as well as strengthen the capacity of local associations to offer procurement training as a service to businesses in the regions. The grant program will be implemented from September 2017 to January 2018. 4.10.2 PPD SUCCESSES AND LESSONS LEARNED PPD served as a catalyst for strengthening cooperation between EPAC member ICCA and SPA, where parties agreed to use Construct.ge's platform that consists of a full database of construction materials’ pricing. There have been challenges in state procurement of construction services since material price estimations were unrealistic. The platform will be accessible for any interested procuring offices as well as the private sector and will be mutually beneficial. 4.10.3 CHALLENGES TO ACHIEVING REFORM RESULTS With low participation of state procurement suppliers, there is a need to raise awareness on benefits and the procurement process. 4.11 PENSION REFORM
Effective public dialogue on anticipated pension reform which is crucial to its acceptance REFORM OBJECTIVE by the public.
4.11.1 PROGRESS AGAINST THE WORK PLAN SUPPORT PUBLIC-PRIVATE DIALOGUE No specific activities were planned during the reporting period. GOG CAPACITY STRENGTHENING G4G finalized the Communication Strategy for the Pension Reform, which has been approved by MoESD. The strategy sets goals, identifies target groups, and designs key messages and communication tools during the campaign of four phases: pre-launch, launch, implementation and opt-out; the Strategy also sets timelines and introduces campaign management agenda.
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GoG has begun the implementation of the strategy and held several introductory meetings with opinion leaders and stakeholders at the Investors Council, BAG and American Chamber of Commerce in Georgia (AmCham). With G4G support, a “Coffee & Conversation” was held with journalists. G4G continues coordinating its efforts with the WB and Asian Development Bank (ADB). WB is willing to provide the Pension Agency with legal support to fill the void in legislation created due to the implementation of the Pension Reform, which requires immediate attention. The WB will also help the NBG with capacity building for the Pension Agency’s administration to improve regulation and supervision. G4G will consider assisting the GoG in organizing public outreach as well as possibly providing other technical assistance during the implementation phase. RIA. During Quarter 3, G4G grantee, ISET-PI, implementing the “RIA on Pension Reform,” completed work on the RIA report. The analysis showed that all groups of employees as well as the self-employed population (the tax paying portion) will benefit from the reform. Also, the gains are heterogeneous, particularly, larger gains will be experienced by groups with higher salaries as opposed to those with low salaries; much smaller gains were identified for self-employed persons as opposed to employees; for unemployed and self-employed in agriculture results will be neutral. The GoG and businesses will incur expenses, although the assessment shows that the GoG expenses will not increase drastically and will be sustainable in time. It is expected that the reform will have a positive effect on macroeconomic parameters such as on overall savings and GDP growth. PRIVATE SECTOR & CSO STRENGTHENING No specific activities were planned during the reporting period. 4.11.2 PPD SUCCESSES AND LESSONS LEARNED Nothing significant to report. 4.11.3 CHALLENGES TO ACHIEVING REFORM RESULTS The GoG will face two major challenges that need immediate consideration: idle funds - prudential regulations will require fund managers to avoid high concentration risk and there are a few reasonable investment assets (bank deposits and government bonds) in the poorly developed domestic capital market; sizeable capital outflow - will pose a downward pressure on the Lari exchange rate that can be a challenge for economic stability of the country. 4.12 CAPITAL MARKETS REFORM
Effective public dialogue on anticipated capital market reform to stimulate participation by REFORM OBJECTIVE business community.
4.12.1 PROGRESS AGAINST THE WORK PLAN SUPPORT PUBLIC-PRIVATE DIALOGUE No specific activities were planned during the reporting period. GOVERNMENT OF GEORGIA CAPACITY STRENGTHENING Investment Funds Law. The Investment Funds Law (IFL) drafting task force, comprised of representatives from NBG, MoESD, MoF and G4G, held a series of working meetings for molding the concept of the Law to a status that would match the EU approximation commitment as well as local realities and needs. During these meetings, the group shaped the proposed spectrum of legal and operating forms for investment funds, modified the definitions and terminology to harmonize the language of the document with relevant legal terminology for Georgian context, and discussed licensing and registration concepts. For the time being, the refined concept of IFL is being translated into a law by G4G experts, which is expected to be completed in the first half of August. Securities. G4G initiated consultations with capital market professionals as well as the NBG for designing processes to introduce mortgage securitization to the Georgian capital market. G4G findings revealed concerns over the current legislation as not quite suited to such transactions. Namely, the Law on Entrepreneurs and related statutes provide no administrative capacity for the implementation of mortgage backed security (MBS) mechanisms, such as the establishment of the special purpose vehicle (SPV) that would be completely bankruptcy averse, pooling and transfer of mortgage loans to the SPV and their
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removal from the originator’s balance sheet, and issuance of MBSs by the SPV. In addition, the Law requires creation of records in the public registry every time the collateral’s ownership changes, thus making secondary trading virtually impossible. G4G is considering the facilitation of a legal study and recommendations on the subject. PRIVATE SECTOR AND CSO STRENGTHENING No specific activities were planned during the reporting period. 4.12.2 PPD SUCCESSES AND LESSONS LEARNED Nothing significant to report. 4.12.3 CHALLENGES TO ACHIEVING REFORM RESULTS Poor coordination between stakeholders. The reform would have gained better momentum had it been under one administration. The legislation needs more in depth changes to accommodate generally accepted best practice capital market mechanisms. The securities market regulator’s capacity requires drastic improvement in a short period of time, to enable proper administration of the new regulation such as the Law of Georgia on Investment Funds. The taxation model for investment funds, as well as the Law on Entrepreneurs and related statutes should be aligned with the spirit of the reform, which is to make the Georgian capital market investor friendly. 4.13 CROP INSURANCE REFORM
REFORM OBJECTIVE Immediate increase in access to finance for rural businesses.
4.13.1 PROGRESS AGAINST THE WORK PLAN SUPPORT PUBLIC-PRIVATE DIALOGUE No specific activities were planned during the reporting period. GOVERNMENT OF GEORGIA CAPACITY STRENGTHENING No specific activities were planned during the reporting period. PRIVATE SECTOR AND CSO STRENGTHENING GoG is considering the creation of a quasi-state agency, modelled after Agroseguro, which will continue the state-sponsored crop insurance program on a permanent basis. APMA has no underwriting standards or specific premium algorithms and trusts the judgement of the member insurance companies in this regard. No accurate, long-term or historical climatic data is in existence, which makes it virtually impossible to develop risk-underwriting procedures and construct respective premium rates for each risk category. Local insurance companies experience a severe shortage in qualified risk analysts that would create a database and a multi-component risk management system. To address the issue, G4G is designing a grant program to facilitate the insurance industry in developing a strong foundation for educating local actuaries/risk analysts in international best practices. The project will enable the professional community to prepare aspiring actuaries for the internationally accredited Certified Actuarial Analyst course and certification exams. 4.13.2 PPD SUCCESSES AND LESSONS LEARNED Nothing significant to report. 4.13.3 CHALLENGES TO ACHIEVING REFORM RESULTS The actuarial profession is extremely complex and multifaceted. It takes several years to produce a qualified actuary. Every insurance company needs to develop its very own, specifically tailored underwriting standards and premium rate algorithm that would be aligned with its financial status and solvency, and represent the insurer’s competitive edge. This is solely an actuarial task. Until there are sufficient actuaries available in Georgia, the insurance premium will remain high, and in the case of crop insurance, state sponsorship will be required to make insurance policies affordable for the farmers.
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4.14 INNOVATION AND TECHNOLOGY POLICY
Immediate improvement on Innovation and Technology regime vital for Small and Medium REFORM OBJECTIVE Enterprise (SME) development and access to finance for innovation.
4.14.1 PROGRESS AGAINST THE WORK PLAN SUPPORT PUBLIC-PRIVATE DIALOGUE No specific activities were planned during the reporting period. GOG CAPACITY STRENGTHENING Innovation and Technology. G4G consultant, Michele Parnell, reviewed the draft Crowdfunding Law prepared by Georgia’s Innovation and Technology Agency (GITA) and presented her recommendations and comments. Most of her comments related to the adaptation of EU best practices and suggested to make the legislation as close to the EU regulation as possible. Parnell stressed the fact that the regulation in the crowdfunding-friendly legislations tend to be less strict, and suggested GITA to simplify the format for the prospectus, meanwhile, she proposed to set licensing and minimum authorized capital requirements for the platform instead of the mere registration of the latter. GITA accepted all suggestions and comments to the draft Crowdfunding Law proposed by G4G. Law on E-Commerce. MoESD, with G4G support, continues working on the development of the Law on E-Commerce. The adoption of the Law is the part of the GoG’s commitment under the EU-Georgia AA. The aim of the Law is to regulate the rights and obligations of intermediary service providers in the e- commerce process. In addition, the Law will protect consumers by making information about services more transparent and standardized. G4G experts participated in the drafting and revision of the legislative package based on the EU Directive as well as the laws of several EU member states. The first draft Law was discussed with stakeholders through several PPDs. The adoption of the Law is planned for the 2017 autumn session of Parliament. PRIVATE SECTOR AND CSO STRENGTHENING Sector Study. G4G grantee, PMO, under the “Innovation and Technology Sector Study” grant program, completed the Global Research milestone assessing the global rankings and standings of Georgia in innovation and technology. In the Global Innovation Index (GII) ranking, Georgia is positioned among the ten best ranked countries in the group of lower-middle-income economies together with countries such as Moldova, Ukraine and Armenia. Georgia improved its ranking by nine places from 2015 to 2016, currently holding 64th place out of 128 countries. In the Global Information Technology Report (GITR) of 2016, Georgia is positioned at 58th place among 139 countries, progressing from 65th in 2013. In Global Competitiveness Index (GCI) of 2016, Georgia is positioned at 59th place among 138 countries, progressing from 77th in 2012. PMO also completed development of the directory for innovative companies, which provides information on over 800 innovation related companies. The Sector Study is planned to be complete by the end of July 2017. Regional Development (Youth Innovation Events). G4G grantee Elva, under the grant program “Youth Innovation Events,” completed the series of 20 regional events by delivering the final “Innovation Days” event in April. In seven locations of Georgia, over 600 youth participated in training sessions, Make-a- thons and awareness raising “Innovation Days.” “Innovation Days” provided young students and entrepreneurs with the information about opportunities to build innovative businesses. GITA presented its activities to promote innovations and other GoG agencies presented their business support programs. Successful Georgian entrepreneurs shared their experience to inspire attendees and provide perspective on opportunities. The trainings, Make-a-thons and awareness raising events were conducted in Zugdidi, Telavi, Kharagauli, Gori, Tchoporti, Kutaisi and Marneuli. 4.14.2 PPD SUCCESSES AND LESSONS LEARNED G4G continues consultations and discussions with MoESD and GITA, the private sector, media and CSOs around the legislation and policy development on innovation. By actively engaging the private sector and interested CSOs, G4G will help to ensure that proposed incentives, policies and infrastructure are conducive to innovation development in Georgia. 4.14.3 CHALLENGES TO ACHIEVING REFORM RESULTS
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Innovation is a relatively new policy area for Georgia, with public awareness and understanding being limited at this time. With limited public knowledge of the programs and opportunities GITA has developed, innovative activity from the public is low, and public feedback on policy remains limited. 4.15 BUILDING CODE REFORM
Effective outreach will raise awareness and preparedness on new building regulations for REFORM OBJECTIVE sector stakeholders.
4.15.1 PROGRESS AGAINST THE WORK PLAN SUPPORT PUBLIC PRIVATE DIALOGUE No specific activities were planned during the reporting period. GOG CAPACITY STRENGTHENING GIB, G4G grantee for the “Support in Implementation of Non-Structural Building Code” grant program, completed guidance/on-the-job training for permitting units of Tbilisi Architecture in Quarter 3. Representatives of GIB reviewed more than 20 applications for building permits, together with agency employees responsible for plan-checks. So far, six applications were compliant with the new Non- Structural Building Code and construction permits were issued (two for residential houses, two for warehouses, one for an office building and one for a university building). Guidance/on-the-job training for permitting units was extremely important at this initial stage of implementation of the newly adopted Non- Structural Building Code. Starting from April 2017, the agency began receiving applications for construction permits under the new regulation. PRIVATE SECTOR & CSO STRENGTHENING Building Code Awareness Raising. Refer to the section “GOG CAPACITY STRENGTHENING” 5.15.1 for further information. 4.15.2 PPD SUCCESSES AND LESSONS LEARNED Nothing significant to report. 4.15.3 CHALLENGES TO ACHIEVING REFORM RESULTS
For continued success in this area, it is up to GIB to maintain the momentum by raising awareness and building the capacity of the private sector.
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5. WORK PLAN OUTPUT TABLE
Component Activities Outputs Timing Comments
Description Status Added By
1. Overall Institutionalized Framework for Public Consultation Maturity: Implementation Lead: Maya Eristavi/Tamar Kapianidze Priority: High Impact: Sustainable institutionalized Counterparts: MoESD, RS, MoA, MoE, MoJ, MoF, IDFI,TI, dialogue platform will improve the Youth Parliament of Georgia quality of all legislation. Creating the Donors: EBRD, GiZ, EU culture of collaborative consultation (CCC). 1.1. Support Public 1.1.1. Support National PPD Platform. (1) 2 TAG meetings In Progress WP3 Oct-16 Sep-17 TAG meeting to Private Dialogue Assist MoESD in ongoing management of Trade take place in Jul- Advisory Group (TAG). (a) Organize TAG 17. meetings.
(b) Work with TAG members and subcommittees 2 DCFTA subcommittee Cancelled WP3 Oct-16 Sep-17 to increase TAG capability and performance. meetings
2 policy papers on TAG In Progress WP3 Dec-16 Dec- Grant awarded. prioriity issues QTR1 17 End date extended from Sep-17 to Dec-17. (c) Organize study tour for TAG Chairman and 1 study tour Cancelled WP3 Mar-17 Sep-17 Cancelled due to Deputy Chairman. revision of TAG management structure.
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(d) Assist MoESD in DCFTA awareness raising 3-5 awareness raising Complete WP3 Oct-16 Sep- campaign. meetings 17
(e) Develop DCFTA policy papers and organize 3 policy papers and 3 In Progress WP3 Dec-16 Oct- Grant awarded and PPD discussions. PPD discussions 17 topics identified. End date extended from Sep-17 to Oct-17.
(2) Organize PPD events on contentious policy 5 PPD events Complete WP3 Oct-16 Sep-17 12 PPDs held. reform issues.
(3) Assist the Georgian Investment Council (IC) Economic policy In Progress WP3 Oct-16 Sep-17 Provided 1 platform. analysis/papers document on double taxation treaty modifications. Tax Audit Survey presented. Pension Reform presented to IC, RIA analysis used for shaping Pension Reform concept. IC Secretariat (leading Pension Reform) participating in RPTS as Steering Committee member. (4) Support Business-Parliament Platform: 3-5 sessions In Progress WP3 Oct-16 Dec-17 1 PPD event held Establish thematic PPD discussions in G4G on Insolvency reform areas. Reform. Period extended from Sep-17 to Dec-17.
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(5) Raise awareness on economic policy reforms. Promotional materials on Complete WP3 Oct-16 Sep-17 8 videos economic policy and developed for reforms (8-10 products) social media. 1 more video planned and DCFTA Annual Report 2016 was designed, developed, printed and distributed. 1.1.2. Engage Media in the National PPD. (1) 10 training sessions In Progress WP3 Nov-16 Dec- Grant awarded. Conduct DCFTA awareness raising trainings for 17 Period extended economic profile journalists. from Sep-17 to Dec-17.
(2) Conduct trainings on G4G reforms and site 2 trainings/2 local site Complete WP3 Oct-16 Sep-17 1 DCFTA media visits for WG member journalists. visits study tour. 2 site visits on procurement and crop insurance conducted.
(3) Conduct "Coffee & Conversation" sessions on 3 coffee & conversation Complete WP3 Oct-16 Sep-17 G4G reform areas. sessions (4) Based on the findings of assessment on 10 training sessions In Progress WP2 Nov-15 Sep- 9 training sessions constraints journalists face in covering reforms, 17 held. Final session conduct capacity building trainings for economic planned in Sep-17. profile journalists.
1.1.3. Engage Youth in the National PPD. (1) Youth debates on G4G In Progress WP2 Oct-15 Mar-18 RFA re- Support youth debate. reforms announced.
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(2) (a) Build capacity of youth to effectively 3-5 capacity building Complete WP3 Oct-16 Sep-17 2 additional communicate and advocate for reforms. workshops workshops conducted.
(b) Build capacity of youth in regions to Capacity building Complete WP3 Oct-16 Sep-17 5 workshops effectively communicate and advocate for workshops conducted in reforms. regions.
(3) Conduct question and answer sessions in 1 regional session (10- In Progress WP3 Oct-16 Sep-17 Tbilisi session G4G reform areas to raise youth awareness. 15 meetings) and 1 completed. Tbilisi session (10-15 Regional session meetings) planned. (4) Conduct Internship development among 1-3 internship events Complete WP3 Oct-16 Sep-17 1 internship partner organizations in order to increase youth's conference capacity as future leadership. conducted,1 employment forum conducted and 3 job fairs.
1.1.4. Engage Women in the National PPD. Annual Conference - Complete WP3 Feb-17 Apr-17 Completed 31 Mar- Strengthen women’s participation in policy Women’s Role in 17. making and economic reforms. Economic Growth and Policy Development
(2) (a) Raise capacity for women leaders in civil 3-5 capacity building Complete WP3 Oct-16 Sep-17 4 workshops society and the private sector. workshops in Tbilisi conducted.
(b) Raise capacity for regional women leaders in Capacity building In Progress WP3 Oct-16 Mar-18 Grantee selected. civil society and the private sector. workshops in regions End date extended to Mar-18 from Sep-17 due to grant negotiations.
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(3) Conduct consultation sessions for women 1-2 capacity building Complete WP3 Oct-16 Sep-17 2 workshops entrepreneurs to better advocate and involve in workshops conducted. policy making process. Additional planned.
(4) Build the capacity and increase leadership 2-3 workshops Complete WP2 Oct-16 Sep-17 2 workshops skills of female students. conducted in Apr- 17.
1.1.5. Develop and Implement Reform Reform Progress In Progress WP1 Feb-15 Sep-18 System launched. Progress Tracking System. Educate and train Tracking System design stakeholders, issue annual reform evaluation and implementation reports. 5 Workshops/Events Complete WP3 Oct-16 Sep-17 4 workshops held and 1 launch event.
Annual Report In Progress WP3 Oct-16 Sep-17 Grantee drafting at this time. 1.1.6. Develop and Implement PPD Tracking PPD Tracking System In Progress WP1 Jul-15 Sep-18 12 draft laws System. Educate and train stakeholders, issue development and selected for annual PPD evaluation reports. implementation evaluation, 7 have been evaluated. 2 capacity building Complete WP3 Oct-16 Sep-17 Sessions training sessions conducted Nov-16 and Mar-17. Additional planned July-17.
Annual Report In Progress WP3 Oct-16 Sep-17 Grantee drafting at this time. Interim report completed. 1.2. GoG Capacity 1.2.1. Support National RIA Framework. (1) Study tour Cancelled WP3 Oct-16 Sep-17 Cancelled due to Strengthening Conduct study tour for civil servants on RIA EU activity with National Framework practice in an EU member GoG - study tour to state. Czech Republic. (2) Conduct training on RIA implementation and Training Complete WP3 Oct-16 Sep-17 Completed in Apr- methodology for civil servants. 17.
(3) Conduct training on RIA implementation and Training Complete WP3 Jan-17 Mar-17 methodology for NGOs. QTR2
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(4) Conduct 1-2 information meetings on RIA 1-2 PPDs Complete WP3 Oct-16 Sep-17 1 PPD conducted National Framework issues. on consumer right's protection and 1 PPD on general framework of RIA.
1.2.2. Implement RIAs. Conduct RIAs for 3-4 RIAs on selected In Progress WP2 Jun-16 Sep-17 Consumer Right's selected priority policy reforms. reforms Protection Law complete, Pension Reform, ETM and Water Law RIAs in progress.
1.2.3. Support GoG capacity building for Business Perception Complete WP2 Oct-15 Dec-16 Completed Dec-16. evidence-based analysis. Survey on policy reforms Survey of State small Cancelled WP3 Jan-17 Sep-17 Cancelled due to and medium business QTR1 reorganization and development programs leadership change of Enterprise Georgia.
1.3. Private Sector & 1.3.1. Training for Association Management. 2 workshops In Progress WP3 Oct-16 Sep-18 3 workshops Civil Society Increase capacity and sustainability of EPAC completed with Organizations member organizations. additional planned. Strengthening Guidebook for business End date extended association from Sep-17 to management, strategy Sep-18. and services Member based association development strategies (5) 1.3.2. EPAC Coalition Strengthening. Develop EPAC Action Plan In Progress WP3 Oct-16 Dec-17 Consultant the capacity of targeted private sector and civil conducted 1 society actors to organize stakeholders and workshop with advocate for improvements to the country’s additional planned. economic competitiveness. End date moved from Sep-17 to Dec-17 due to consensus need from members.
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1.3.3. EPAC Members’ Capacity Building. 2 workshops Complete WP3 Oct-16 Sep-17 2 workshops Conduct workshops on public policy advocacy, conducted in April. leadership and executive communication training; Additional planned. how to engage effectively with public officials when representing broad business interests enhance association governance, communication and branding for EPAC.
1.3.4. Assist EPAC Platform. Conduct EPAC 1-3 DCFTA workshops In Progress WP3 Oct-16 Dec-17 Grant awarded. member capacity building on EU-AA issues. Period extended from Sep-17 to Dec-17.
1.3.5. Assist EPAC Coordination. Support for Information In Progress WP3 Oct-16 Sep-17 7 meetings held. bi-monthly and ad-hoc meetings, discussions, sessions/periodic covering current business issues and obstacles meetings to trade, speakers and presentations. 2. Energy Strategy Reform Maturity: Design Lead: Giorgi Chikovani Priority: Priority: High Priority: High Impact: Coherent Strategy will lead to the effective, Counterparts: MoE and its agencies economically justifiable and sustainable energy production, delivery Donors: USAID EC-LEDS, EU and consumption consistent with environmental requirements.
2.1. Support Public NEW: 2.1.1. PPD on Energy Strategy. Conduct PPD Complete WP3 May-17 Jun-17 Completed during Private Dialogue a PPD on energy sector strategy development. QTR3 the Regional Energy Summit. 2.2. GoG Capacity 2.2.1. MoE Capacity Building on Energy Report on alternatives In Progress WP3 Nov-16 Dec- Grantee Strengthening Strategy. Evaluate alternatives for demand for demand forecasting QTR1 17 negotiations forecasting under energy market transformation. underway. End date moved from Sep-17 to Dec-17.
2.2.2. MoE Capacity Building on Energy Report on electricity In Progress WP3 Oct-16 Dec-17 Grantee Strategy (M-CEP). Evaluate international production models negotiations electricity production models to consider for underway. End Georgia's structure, and identify most suitable date moved from model for adoption. Sep-17 to Dec-17.
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2.3. Private Sector & 2.3.1. CSOs Capacity Building on Energy 1-2 workshops with Complete WP3 Mar-17 Sep-17 3 workshops Civil Society Strategy. Conduct training and awareness CSOs completed. Organizations session for increasing capacity of CSOs in Strengthening energy strategy.
NEW: 2.3.2 Youth Capacity Building on the Conference Complete WP3 May-17 Jun-17 Conference held Energy Sector. QTR3 June 21.
3. Electricity Trading Mechanism (ETM) Maturity: Design Lead: Giorgi Chikovani Priority: High Impact: Effective ETM to enable FDI necessary for development of SME Counterparts: MoE, ESCO, GNERC, Hydro-power plants which are vital for clean and low cost energy for GSE Georgia. Donors: IFC, WB, ADB, EBRD, KfW, EU4Energy, EU Twinning, NARUC, USEA
3.1. Support Public 3.1.1. ETM PPD. Hold PPD on ETM including 2 PPD Events Complete WP3 Oct-16 Sep-17 3 PPDs held. Private Dialogue hourly settlement procedures for the electricity market
3.1.2. ETM Conference. Organize annual ETM Conference Complete WP3 Oct-16 Sep-17 Completed May conference for private and public sector 25. stakeholders.
3.2. GoG Capacity 3.2.1. Capacity Development on ETM. Assist (a) Simulations In Progress WP3 Oct-16 Sep-18 RFA drafted and to Strengthening MoE and other ETM stakeholders in testing of be announced. ETM market model in collaboration with EBRD End date moved and WB. from Sep-17 to Sep-18. (b) Workshops Complete WP3 Oct-16 Sep-17 4 workshops conducted. 3.2.2. Capacity Building on ETM. Organize Study Tour to selected Cancelled WP3 Nov-16 Sep- study tour for GoG stakeholders and private country 17 companies.
3.3.3. RIA on ETM. Conduct RIA on ETM. RIA In Progress WP3 Oct-16 Jan-18 Grant negotiations underway. End date moved from Sep-17 to Jan-18.
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3.3. Energy 3.3.1. ETM Settlement and Clearing Recommendations In Progress WP3 Oct-16 Sep-17 Discussions being (Electricity) Trading Mechanism. Work closely with GoG in held at Steering Policy Governance developing hourly settlement procedures and Committee clearing mechanism for the electricity market. meetings.
3.3.2. Support GoG in fulfilling obligations Consultations and In Progress WP3 Oct-16 Sep-17 Consultations under Energy Community Treaty. Provide on technical report(s) underway. demand technical assistance in Energy Provided Georgian Community integration process on ETM. version of initial draft Energy Law. Revision of draft Law and proposed to MoE with recommendations. Working group established on new Electricity Law in compliance with EU Energy Community.
3.4. Private Sector & 3.4.1. Turkey-Georgia Cross-Border Trade. 2-3 workshops Complete WP3 Oct-16 Sep-17 4 workshops Civil Society Assist GoG and private sector in improving conducted. Organizations cross-border trading. Strengthening
3.4.2. Energy Market Players (MPs). Capacity 1-3 trainings/workshops Complete WP3 Dec-16 Sep- 4 workshops building of market players. on ETM and/or market 17 conducted. (M- player development CEP, ETM, and Energy Association) 4. Water Resource Management Reform Maturity: Implementation Lead: Giorgi Chikovani Priority: High Impact: Equitable transparent sustainable allocation of fresh water Counterparts: MENRP, MoE, MoESD, resources across multiple competing interests is necessary to prevent MoA, MRDI, GSE, GNERC, MoHLSA grave failure to serve legitimate needs. Donors: ADB, UN, WB, EU, KfW, EIB, MCG
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4.1. Support Public 4.1.1. Water Resource Management PPD. 1-3 PPD events Complete WP3 Dec-16 Sep- 6 PPDs conducted, Private Dialogue Support MENRP in arranging PPD events on 17 1 additional water management related policy and law. conducted on WEAP during QTR3.
4.2. GoG Capacity 4.2.1. Tariff Methodology for Irrigation and 1-3 workshops In Progress WP3 Oct-16 Sep-17 1 workshop Strengthening Drainage. Conduct capacity building events for conducted. GNERC and GA.
4.2.2. Support Drafting of Hydro-Amelioration Information Complete WP2 Mar-16 May- Law. Participate as working group member and sessions/periodic QTR2 17 provide comments-recommendations for the draft meetings Law.
4.2.3. Develop Water Framework Directive 1-2 technical reports In Progress WP3 Oct-16 Sep-17 First guidance Implementation Guidance Document for document drafted. Georgia. Develop technical document(s) for river basin management.
4.3. Water Resource 4.3.1. Water Demand Forecast. Develop water Assessment Complete WP2 Apr-16 Jan-17 Management demand forecast for various sectors. 4.3.2. Water Allocation Scenarios. Develop At least 2 allocation In Progress WP2 Sep-16 Sep- 3 workshops water resource allocation scenarios in WEAP scenarios for Aragvi 17 conducted, action model. River Basin plan for scenarios developed. Report on model setup and initial baseline model developed.
4.3.3. Environmental Flow Assessment. Environmental flow Complete WP2 Mar-16 May- Testing and training. methodology finalized 17 through testing on pilot river basin and training sessions
4.3.4. Gauging Station at Aragvi River At least 2 gauging In Progress WP3 Oct -16 Sep- Installation process Basin. Support NEA on installing GSbased on stations installed 17 underway. agreed location and parameters; deliver training on proper operation and maintenance procedures to ensure system sustainability.
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Training 4.4. Private Sector & 4.4.1. Water Resource Management White White Paper Cancelled WP2 Apr-17 Sep-17 Cancelled due to Civil Society Paper. Develop White Paper - sectorial policy WEAP completion Organizations analysis document. planned for end of Strengthening 2017.
NEW: (1) White Paper for water allocation. White Paper on water Planned WP3 Jun-17 Sep-17 allocation QTR3
4.4.2. Innovative Technologies for Water Handbook on best Complete WP2 Apr-16 Feb-17 Reuse and Wastewater Treatment. Support practices and innovative MENRP and the private sector in analyzing the technologies most applicable technologies for Georgia in Conference Complete WP2 Apr-16 Feb-17 wastewater treatment and water reuse.
4.4.3. RIA on WRM Law. Conduct RIA on WRM RIA results In Progress WP3 Oct-16 Sep-17 Interim report Law. complete, 4 workshops conducted.
5. Tax Enforcement and Administration Maturity: Design/Implementation Lead: Maia Daiauri Priority: High Impact: Direct and immediate positive effect on tax compliance for all Counterparts: MoF, RS, BAG, businesses. Parliament, AmCham, ICC, Georgian Banks Association Donors: EU Twinning, UST, IFC
5.1. Support Public 5.1.1. Tax Code Review. Discuss RIA results on 1 PPD event Postponed WP3 Oct-16 May-18 Postponed due to Private Dialogue EU VAT Directive provisions. grantee selection being underway. 5.1.2. Tax Code Review. Organize PPD to 1 PPD event Postponed WP3 Mar-17 Jan-18 SoW that will discuss the public rulings. provide the PPD topic is under development. Postponed to Year 4.
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5.1.3. Tax Code Review. Organize PPD to 1 PPD event Complete WP3 Oct-16 Dec-16 discuss the problematic provisions of the Tax Code revealed by the analysis of Tax Dispute Cases. 5.1.4. Tax Code Review. Organize PPD to 1 PPD event Complete WP3 Oct-16 Dec-16 1 additional PPD discuss Estonian CIT model and new accouting conducted in Jan- Law. 17. 5.1.5. Tax Administration Improvement. 1 PPD event In Progress WP2 Oct-16 Sep-17 To be held in Sep- Discuss the result of the assessment on 17. production and natural losses.
5.2. GoG Capacity 5.2.1. Tax Administration Improvement. 3 training sessions Complete WP2 Jan-16 Feb-17 Building Conduct IFRS training for tax auditors. 1 additional training In Progress WP3 Feb-17 Jul-17 To be completed in session for tax auditors QTR1 Jul-17. End date moved from May- 17 to Jul-17 due to schedule of trainees (scheduling conflict with customs activities).
5.2.2. Tax Code Review. Provide technical Draft public ruling In Progress WP3 Oct-16 Nov-17 SoW under assistance in drafting of public rulings on development. End problematic issues of tax legislation. date moved from Sep-17 to Nov-17.
5.2.3. Tax Administration Improvement. Analysis Complete WP2 Sep-15 Nov- Conduct analysis of Tax Dispute Cases. 16
5.2.4. Tax Code Review. Propose legislative Recommendations Complete WP3 Dec-16 Sep- Recommendations amendments and/or secondary legislation to 17 covered by address the issues identified by Tax Dispute analysis of tax Case Assessment. dispute cases.
5.2.5. Tax Administration Improvement. Study visit Complete WP3 Dec-16 Mar-17 Completed in Dec- Conduct study visit to Estonian RS and MoF to 16. study administrative aspects of the Estonian CIT regime (IT, risk identification and assessment, etc.).
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5.3. Private Sector & 5.3.1. Tax Code Review. Conduct RIA on EU RIA report In Progress WP3 Oct-16 Dec-17 Grantee selected, Civil Society VAT Directive provisions. Engage think tanks to negotiations Organizations conduct RIA. underway. End Strengthening date moved from Sep-17 to Dec-17.
5.3.2. Tax Administration Improvement. 2 media tours In Progress WP2 Oct-16 Sep-17 1st planned for Raising of taxpayers’ awareness on tax policy Aug-17 and 2d and administration. postponed to Year 4. QA brochures In Progress WP2 Oct-16 Sep-17 G4G and GSMEA developing brochures. Plain Language Guide In Progress WP3 Oct-16 Sep-17 G4G and GSMEA on Estonian CIT developing Guide. 5.3.3. Tax Administration Improvement. Assessment report In Progress WP3 Oct-16 Sep-17 Report in Conduct ex-post economic impact study on Tax development. Payment Simplification Reform. 5.3.4. Tax Administration Improvement. Analysis In Progress WP3 Nov-16 Nov- SoW developed. Conduct RS analysis relevant to TADAT 17 End date moved indicators. from Sep-17 to Nov-17. 5.3.5. Tax Audit Survey. Conduct survey Tax Audit Survey Complete WP2 Jan-16 Dec-16 reviewing cause, effect, and perception of tax audits among private sector. 6. Customs Administration and Enforcement Maturity: Implementation Lead: Bondo Bolkvadze Priority: High Impact: Elimination of barriers and inefficiencies will have immediate Counterparts: RS, GFFA, GIRCA impact on cross-border trade. Donors: GiZ, US Customs (ask USAID to coordinate the meeting)
6.1. Support Public 6.1.1. Authorized Economic Operator (AEO) 1 PPD Complete WP3 Dec-16 Sep- Completed on Private Dialogue program implementation. Conduct PPD event 17 June 2. on AEO concept.
6.2. GoG Capacity 6.2.1. Authorized Economic Operator (AEO) Recommendations for Complete WP3 Dec-16 Jul-17 Organizations program implementation. Assist RS in operational manual Strengthening developing standard operation and technical manual on AEO.
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Tax Code changes on Complete WP3 Dec-16 Apr-17 AEO QTR2 6.2.2. Authorized Economic Operator (AEO) At least 1 training In Progress WP3 Dec-16 Sep- PCA staff included program implementation. Capacity building of session in Georgia 17 in IFRS training RS PCA staff on authorization and monitoring of program. AEOs. 6.2.3. Customs Post-Clearance Control. 2-3 training sessions in In Progress WP3 Dec-16 Sep- 1 training session Provide technical assistance to build capacity of Georgia 17 conducted, RS PCA. additional IFRS training to be conducted.
6.3. Private Sector & 6.3. No specific activities are planned. Civil Society Organizations Strengthening 7. Trade Facilitation/Transport and Logistics Maturity: Implementation Lead: Bondo Bolkvadze Priority: High Impact: Elimination of barriers and inefficiencies will have immediate Counterparts: RS, MoESD, Georgian impact on cross-border trade and facilitate greater integration with EU. Railway, GFFA, GIRCA, AmCham, BAG, ICC, EUGBC Donors: EU, GiZ, USAID REG
7.1. Support Public 7.1.1. Trade Facilitation System (TFS). 1 TFS Steering Cancelled WP3 Oct-16 Sep-17 Cancelled due to Private Dialogue Coordinate public-private cooperation for TFS Committee meeting leadership change tariff setting and further development. in DEA.
7.1.2. Caucasus Transit Corridor 1 conference In Progress WP3 Jan-17 Sep-17 Planned for Sep- Competitiveness Study. Trade and Transport 17, grant activity Conference around the findings of the Caucasus underway. End Transit Corridor Study. date moved from Jun-17 to Sep-17 due to study being developed.
7.2. GoG Capacity 7.2. No specific activities are planned. Strengthening
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7.3. Private Sector & 7.3.1. Caucasus Transit Corridor Updated study In Progress WP2 Sep-16 Jul-17 To be completed in Civil Society Competitiveness Study. Update Caucasus Jul-17. End date Organizations Transit Corridor Competitiveness Analysis. moved from Jun-17 Strengthening to Jul-17 due to revision requirements.
7.3.2. TFS User Training. Provide user training 5 training sessions Complete WP2 May-16 Jan-17 16 trainings on system. conducted.
2 awareness meetings Complete WP3 Dec-16 Mar-17 QTR1 8. Bankruptcy and Liquidation Maturity: Design Lead: Tamuna Buadze Priority: Medium Impact: Reformed bankruptcy regime will remove barriers to Counterparts: MoESD, MoJ entrepreneurship, efficiently recycle assets back to productive use and Donors: GiZ restore viable businesses to financial health through business rescue.
8.1. Support Public 8.1.1. Advocate for Insolvency Reform. 2 PPDs Planned WP3 Oct-16 Nov-17 End date moved Private Dialogue Conduct PPDs on Insolvency Reform. from Sep-17 to Nov-17 due to drafting being delayed on Law on Insolvency.
8.2. GoG Capacity 8.2.1. Legal Drafting. Review the draft Law on Comments and Planned WP3 Oct-16 Nov-17 End date moved Strengthening Insolvency. recommendations on from Sep-17 to draft Law on Insolvency Nov-17 due to drafting being delayed on Law on Insolvency.
8.2.2. Legal Drafting. Study visit to USA to Study visit Cancelled WP3 Oct-16 Jun-17 Cancelled due to learn the US system of rehabilitation. GoG lacking interest. 8.3. Private Sector & 8.3.1. Advocate for Insolvency Reform. 2 workshops In Progress WP3 Oct-16 Sep-17 Grantee selected. Civil Society Facilitate mobilization of the private sector on Organizations Insolvency Reform. Strengthening
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9. Land Ownership, Registration and Titling Maturity: Implementation Lead: Tamuna Buadze Priority: High Impact: Certainty, clarity and predictability in land rights is crucial for Counterparts: MoJ, NAPR, MoESD, effective economic development of land. This is currently a major MoA, MoE, MRDI, Local barrier to the investment. Municipalities Donors: WB to provide $2.1 million loan for project implementation; EU budget support of 80 million might include nationwide rollout of land registration reform starting from 2017.
9.1. Support Public 9.1.1. Support in Pilot Project Implementation. 1 PPD Cancelled WP3 Oct-16 Sep-17 Cancelled due to Private Dialogue Facilitate PPD in the process of pilot pilot project delays. implementation to collect the feedback and adjust the approaches.
9.2. GoG Capacity 9.2. No specific activities are planned. Strengthening.
9.3. Private Sector & 9.3. No specific activities are planned. Civil Society Organizations Strengthening 10. State Procurement System Maturity: Implementation Lead: Tamuna Buadze Priority: High Impact: Educating stakeholders and the private sector will improve Counterparts: State Procurement transparency of the state procurement system and will increase private Agency sector participation resulting in increased quality. Donors: USAID, EU, WB, EBRD, ADB
10.1. Support Public 10.1.1. State Procurement. Facilitate PPD event 3 PPDs Complete WP2 Oct-16 Sep-17 Private Dialogue on procurement system through the involvement of business associations. 10.2. GoG Capacity 10.2.1. State Procurement Dispute Resolution Recommendations Cancelled WP3 Oct-16 Jan-17 Cancelled due to Strengthening Mechanism. Develop concept on new dispute other donor resolution mechanism. assistance.
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10.2.2. Strategy. Develop Strategy and Action Strategy and Action Plan Complete WP2 Apr-16 Nov-16 Communications Plan to address issues identified by Business strategy and action Survey on State Procurement. plan developed.
10.3. Private Sector & 10.3.1. State Procurement Awareness. At least 5 training In Progress WP3 Nov-17 Jan-18 Grant announced. Civil Society Conduct business awareness raising activities on sessions End date moved Organizations state procurement opportunities to address the from Sep-17 to Strengthening gaps identified by State Procurement Survey. Jan-18. Promotional video Cancelled WP3 Nov-16 Sep- Video produced 17 with WB support. 11. Pension Reform Maturity: Design Lead: George Amzashvili Priority: High Impact: Effective public dialogue on anticipated pension reform is Counterparts: MoESD, MoF, crucial to its acceptance by the public. Parliament, Private Sector Donors: ADB, WB
11.1. Support Public 11.1.1. PPD on Pension. Facilitate PPD event 1 PPD In Progress WP3 Sep-16 Sep- To be held in Jul- Private Dialogue on pension reform through the involvement of 17 17. business associations.
11.2. GoG Capacity 11.2.1. Public Outreach. Provide advisory Recommendations to Complete WP1 Sep-16 Mar-17 Strengthening support in designing the public outreach GoG on public outreach campaign for the reform. campaign 11.2.2. Institutional Support. In coordination Recommendations Cancelled WP3 Oct-16 Sep-17 Cancelled due to with ADB, provide technical assistance in ADB taking full developing the pension system. responsibility for this area.
11.3. Private Sector & 11.3.1. Pension Reform Awareness Raising. Offsite session with Complete WP3 Oct-16 Sep-17 Completed Jun-17. Civil Society Raise awareness on Pension Reform among journalists Organizations journalists. Strengthening
11.3.2. RIA on Pension Reform. Conduct RIA RIA report Complete WP2 Jul-16 Apr-17 on Pension Reform.
12. Capital Market Reform
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Maturity: Design Lead: George Amzashvili Priority: High Impact: Supporting the public and private sectors in preparation for Counterparts: MoESD, MoF, NBG, implementation of reforms will enable both to participate in the Georgian Stock Exchange, reformed market and raise confidence in the system. Parliament Donors: ADB, WB, EBRD
12.1. Support Public 12.1.1. Advisory Committee on Capital 4 PPDs Planned WP3 Oct-16 Sep-18 Advisory Private Dialogue Markets. Facilitate establishment of private Committee sector driven Advisory Committee. formation under review. End date moved from Sep- 17 to Sep-18 due to delays in drafting Law on Investment Funds.
12.2. GoG Capacity 12.2.1. New Law on Investment Funds. Provide Draft legislation In Progress WP3 Oct-16 Nov-17 Concept Strengthening technical assistance to MoESD and NBG on new developed, being Law. converted into draft Law. End date moved from Sep- 17 to Nov-17
12.3. Private Sector & 12.3.1. Awareness Raising. Deliver awareness 2 workshops Postponed WP3 Oct-16 Sep-17 Postponed to Year Civil Society workshops to private sector stakeholders. 4 due to Law on Organizations Investement Funds Strengthening being developed. NEW: 12.3.2. Mortgage Loan Securitization. Legal study and In Progress WP3 Jun-17 May-18 Facilitation of the implementation of mortgage recommendations QTR3 backed securities’ mechanisms.
13. Crop Insurance Maturity: Design Lead: George Amzashvili Priority: High Impact: Immediate increase in access to finance for rural businesses. Counterparts: MoA, Parliament Donors: KfW
13.1. Support Public 13.1.1. PPD on Crop Insurance. 2 PPDs In Progress WP3 Oct-16 Sep-17 2nd PPD Planned Private Dialogue for Jul-17.
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13.2. GoG Capacity 13.2.1. Crop Insurance Premium Rate Draft methodology Cancelled WP3 Oct-16 Sep-17 Cancelled due to Strengthening Methodology. Provide technical assistance in identified need of developing premium rate methodology. personnel capacity building prior to creating rate methodology.
13.3. Private Sector & 13.3.1. Underwriting Standards for Crop Draft standards Cancelled WP3 Oct-16 Sep-17 Cancelled due to Civil Society Insurance. Provide technical assistance in identified need of Organizations developing underwriting standards. personnel capacity Strengthening building prior to developing underwriting standards.
NEW: 13.3.2. Program for Certified Actuarial Establish program and In Progress WP3 Jun-17 May-19 Grant announced. Analysts (CAA). Support development of a long- train 10 aspiring term education program for actuaries. actuaries. 14. Innovation and Technology/SME Policy Maturity: Implementation Lead: Malkhaz Nikolashvili Priority: High Impact: Immediate improvement on Innovation and Technology regime Counterparts: GITA, MoESD, EDA vital for SME development and access to finance for innovation. Donors: WB
14.1. Support Public 14.1.1. Legal Framework. Organize PPD events 2-4 PPDs In Progress WP3 Oct-16 Nov-17 1 PPD conducted. Private Dialogue on legal framework. End date moved from Sep-17 to Nov-17. 14.1.2. Awareness Raising. Organize media 1 site visit Cancelled WP3 Oct-16 Sep-17 Cancelled due to tour on innovation and technology. leadership change and revision of innovation strategy. 14.2. GoG Capacity 14.2.1. Legal Framework. Provide technical Recommendations In Progress WP3 Oct-16 Sep-17 Recommendtations Strengthening assistance to GITA in developing the second developed, to be phase regulatory package on innovation. submitted to USAID. 14.2.2. Innovation Policy Study Tour. Conduct Study tour Complete WP3 Oct-16 Sep-17 study tour to UK, to understand UK national funding scheme and operational model of grant management.
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14.2.3. Crowdfunding Framework. Provide Recommendations In Progress WP3 Oct-16 Sep-17 Recommendtations technical assistance in developing legal developed, to be framework for crowdfunding (To be synchronized submitted to with capital markets reform). USAID 14.3. Private Sector & 14.3.1. Sector Study. Research study In Progress WP2 Aug-16 Sep- Methodology and Civil Society (a) Conduct research on global rankings (GII, 17 Directory Organizations Global Competitiveness Index, Network completed. Strengthening Readiness Index, etc.) and elaboration of action plan to position Georgia in high ranks; (b) Develop Annual ICT sector research methodology development and implementation; (c) Develop Innovations Directory.
14.3.2. Regional Development (Youth 10 training events Complete WP2 Oct-15 Mar-17 2 additional events Innovation Events). (1) Conduct trainings for in progress. youth in regions in Innovations for raising awareness and building capacity.
(2) Organize regional competitions, workshops Regional competitions and events (makeathons, hackathons, etc) for and workshops innovation.
14.3.3. Regional Outreach (E-commerce). 3 outreach events In Progress WP3 Oct-16 Sep-17 1 event conducted, Conduct outreach activities to support regional 2 planned for Sep- innovation development. 17.
15. Building Codes Maturity: Implementation Lead: Tamuna Buadze Priority: High Impact: Effective outreach will raise awareness and preparedness on Counterparts: MoESD, Tbilisi new building regulations for sector stakeholders. Mayor’s Office Donors: EU, GiZ
15.1. Support Public 15.1.1. PPD on Building Code. 5-8 PPDs (See section Complete WP2 Jul-16 Feb-17 Private Dialogue 15.3.1) Changes to Government Complete WP3 Dec-16 Feb-17 Resolutions #41 and #57 QTR2 15.2. GoG Capacity 15.2.1. Mentorship for Tbilisi Architecture Mentorship sessions Complete WP3 Mar-17 May- Strengthening Staff. Conduct mentorship (on the job training) in QTR2 17 construction permit issuance.
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15.3. Private Sector & 15.3.1. Building Code Awareness Raising. 5-8 training sessions Complete WP2 Jul-16 Feb-17 Civil Society Conduct awareness raising events for engineers, Organizations architects, developers and other construction Strengthening sector representative on new Building Code.
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APPENDIX A: ANNUAL PMP INDICATOR RESULTS Indicator Y3, Q3, Cumulative Results 2017 Cumulative Target Target
1.1 Number of public institutions or CSOs with an PPD Platform in Parliament. 1 3 established public engagement mechanism through G4G support. Q3, 1 completed step
Short clarification: The indicator will count only public or CSO institutions that have an institutionalized platform for permanent PPDs, including institutions related to the 3rd and 4th components. 1.2 Progress toward identification, drafting, approval Q3, 26 completed steps 30 100 and implementation of reforms through a consultative process as a result of USAID assistance (USAID indicator).
Short clarification: The indicator will count completed steps of policy process related to the targeted reforms, including reforms related to the 3rd and 4th components. Analysis Tax Dispute Cases Reform; N/A N/A Tax Audit Survey; Consumers’ Rights Protection Law; Changes to Non-Structural Building Codes; GoG Resolution on Construction Permits; Transport Logistics Reform (CTC Study); Crowd Funding Law; Energy Law; Water Resources Management Guidelines; RIA National Framework; Law on Investment Fund; Pension Reform.
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Q3, 12 completed steps
Stakeholder consultation/public debate Tax Dispute Cases Reform; N/A N/A Changes to Non-Structural Building Codes; GoG Resolution on Construction Permits; Crowd Funding Law; RIA National Framework; Pension Reform.
Q3, 6 completed steps Drafting or revision Changes in the Legislation on State Procurement Methods; N/A N/A Pension Reform; Changes to Non-Structural Building Codes; GoG Resolution on Construction Permits; Crowd Funding Law; Water Resources Management Guidelines; Pension Reform Law; RIA National Framework.
Q3, 8 completed steps Approval (legislative or regulatory) Changes in the Legislation on State Procurement Methods; N/A N/A Changes to Non-Structural Building Codes; GoG Resolution on Construction Permits; Authorised Economic Operators (AEO) Reform.
Q3, 4 completed steps Full and effective implementation Estonian CIT Model Implementation; N/A N/A Changes to Non-Structural Building Codes; GoG Resolution on Construction Permits; Protection of Minority Shareholders’ Rights.
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Q3, 4 completed steps 1.3 Number of agricultural and nutritional enabling Q3, no completed steps for policies 2 6 environment policies completing the following processes/steps of development as a result of G4G assistance in each case (Stage 1/2/3/4/5) (USAID FTF indicator).
Short clarification: The indicator will count policies that completed policy steps related to the targeted agricultural and nutritional enabling environment policies. Analysis Q3, no completed steps N/A N/A Stakeholder consultation/public debate Q3, no completed steps N/A N/A
Drafting or revision Q3, no completed steps N/A N/A Approval (legislative or regulatory) Q3, no completed steps N/A N/A
Full and effective implementation Q3, no completed steps N/A N/A
1.4 Number of policy areas on which PPD events were Accounting and Audit Law; 12 50 initiated through G4G support or through G4G Competitive Electricity Market and Georgia's Membership in the supported platforms. European Energy Community; Analysis of Tax Dispute Cases; Short clarification: The indicator will count the number EPAC Meeting on Trademark Protection; of policy areas on which PPDs were initiated through Water Demand Forecast in Aragvi River Basin; G4G support or through using G4G supported Consumers’ Rights Protection Law RIA; platforms, including reforms related to the 3rd and 4th Environmental Flow Methodology; components. Under PPDs, we assume thematic Water Allocation Modelling; meetings with the participation of all major Pension Reform; stakeholders, such as GoG, CSO and private sector Business Perception Survey; representatives. Georgia's Economic Development; Position of Georgian Business to the Government and International Community; Caucasus Trade Corridor; RIA System Institutionalization in Georgia;
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State Procurement; Value of Intellectual Property for SMEs; Water Management Law; Market Players Meeting.
Q3, 26 policy areas 1.5 Number of the PPD events conducted through G4G PPD on Customs AEO, September 29, 2016; 22 98 support. PPD on E-Commerce Law, September 30, 2016; PPD on State Procurement Communication Strategy Short clarification: The indicator will count PPD events Development, October 23, 2016 (In Kachreti); conducted through G4G support, including PPDs PDD on Profit Tax, Accounting and Audit Law, November 4, related to the 3rd and 4th components. Under PPDs, we 2016; assume thematic meetings with the participation of PPD on ETM Development related Issues, November 4, 2016; major stakeholders, such as GoG, CSO and private PPD on Competitive Electricity Market and Georgia's sector representatives. The indicator will disaggregate Membership in the European Energy Community, November 9, the PPDs according to the regions where the PPDs 2016; took place. PPD on Analysis of Tax Dispute Cases, November 10, 2016; EPAC Meeting on Trademark Protection, November 28, 2016; PPD on Water Demand Forecast in Aragvi River Basin, November 29, 2016; PPD on Consumers’ Rights Protection Law RIA, December 9, 2016; PPD on Electricity Sector Stakeholders Steering Committee Meeting, January 27-29, 2017 (in Kakheti); PPD on Refining Environmental Flow (Flow) Methodology and Preparatory Work for Environmental Testing work Plan, February 23, 2017; PPD Piloting Water Allocation Modelling Using WEAP in the Aragvi River Basin, March 1, 2017; PPD on Pension Reform PR Strategy Development, February 17- 18, 2017 (in Kakheti); PPD on Business Perception Survey, February 24, 2017; PPD on Women's Role in Economic Growth and Policy Development, March 31, 2017; PPD on Georgia's Economic Development, April 3, 2017; PPD on Position of Georgian Business to the Government and
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International Community, April 7, 2017; PPD on Caucasus Trade Corridor, April 26, 2017; PPD on RIA System Institutionalization in Georgia, April 26, 2017; Regional Energy Conference, May 25, 2017; PPD on State Procurement, May 31, 2017; Market Players Meeting, April 6, 2017; PPD on Value of Intellectual Property for SMEs, May 11, 2017; PPD on Water Management Law RIA, May 17, 2017; Market Players Meeting, May 18, 2017.
Q3, 31 PPDs (among them 5 PPDs in the regions) 1.6 Percentage of business operators perceiving Q3 , N/A Baseline: 48% N/A 58% economic governance as fair and transparent.
Short clarification: This perception indicator measures a business owner and /or business operator’s opinion on economic governance fairness and transparency. Business owner-operator is a person that owns and runs day-to-day operations. Owner operators are found in industries like commercial agriculture, tourism, logistics, maintenance, repair etc. Economic governance is related to property rights, regulatory functions, corruption, fiscal management, tax administration, or overall macroeconomic policy. 2.1 Number of Governmental institutions (including SPA (1 time through the following activity: Communication 20 80 legal entities of public law, state owned enterprises) Strategy Development); receiving capacity building assistance through G4G support to develop, implement, and enforce the SPA (1 time through the following activity: Media Study Tour); targeted reforms. RS (1 time through the following activity: IFRS Training); Short clarification: The indicator will count each governmental institution that received capacity RS (1 time through the following activity: Tax Dispute Analysis building assistance through G4G support to develop, Survey); implement, and enforce the targeted reforms. If the institution received different types of assistance, each RS (1 time through the following activity: Tax Audit Practice
USAID | GOVERNING FOR GROWTH (G4G) IN GEORGIA QUARTERLY REPORT JANUARY 01, 2017 – MARCH 31, 2017 61 will be counted separately. The indicator also will Survey); capture governmental institutions classified under 3rd and 4th components. RS (1 time through the following activity: Developing Manual on CIT);
Data Exchange Agency (1 time through the following activity: TFS Public Awareness Training);
MoESD (3 times through the following activities: RIA Implementation on Consumers’ Rights Protection Law; RIA Implementation on Pension Reform; CTC Study);
MoENRP (2 times through following activity: Training on Knowledge Sharing on Ecological Flow (E-flow) for Georgia; Workshop on Develop Water Framework Directive (WDF) Implementation Guidance Documents For Georgia);
MoE (2 times: Training on Market-Cantered Energy Planning (M- CEP; Regional Energy Conference);
Parliament (1 time through following activity: Training on M-CEP Concept and Next Steps Towards Competitive Market);
MoJ, MoENRP, MoESD, Ministry of Education, Government Administration, Parliament (1 time through following activity: Training on RIA Methodology);
Local Governments (1 time through Training on Building Codes);
Technical and Construction Inspectorate (1 time through Training on Building Codes).
Q3, 23 Institutions
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2.2 Number of the legal acts, policy documents, policy Tax Dispute Cases Reform; 10 50 related documents, measures or programs provided or Tax Audit Survey; substantially contributed by the targeted GoG Consumers’ Rights Protection Law; institutions through G4G assistance. Changes to Non-Structural Building Codes; GoG Resolution on Construction Permits; Short clarification: The indicator will count every legal Transport Logistics Reform (CTC Study); act, policy documents, policy related documents, Crowd Funding Law; measures or programs provided or substantially Water Resources Management Guidelines; contributed to a GoG institution through G4G Environmental Flow Methodology; assistance. The indicator also will include the legal Energy Community Accession Protocol; acts, policy documents, policy related documents, Energy Law; measures or programs related to the 3rd and 4th Water Resources Management Guidelines; components. RIA National Framework; Law on Investment Fund; Pension Reform.
Q3, 15 policy documents 2.31 Person hours of USG supported training Knowledge Sharing and Training on Ecological Flow (E-flow) for 4,000: 12,000: completed in trade and investment capacity building. Georgia (840 p/h: 480 p/h for males, 360 p/h for females), 2000 M, 6000 M, (USAID indicator). October 3-7, 2016; 2000 F 6000 F
Short clarification: The indicator will count every Workshop with MPs, on M-CEP Concept and Next Steps person hours of G4G supported trainings on trade and Towards Competitive Market (26 p/h: 16 p/h for males, 10 p/h for investment capacity building. If one person receives females), December 2, 2016; several trainings on different issues, each instance will be counted separately. The indicator also will include Workshop with CSOs, on M-CEP Concept and Next Steps corresponding trainings relevant to the 3rd and 4th Towards Competitive Market (12 p/h: 3 p/h for males, 9 p/h for components. The indicator data will be disaggregated females), December 2, 2016; based on gender. Master Class on Economic Journalism (64 p/h: 32 p/h for males, 32p/h for females), December 11, 2016;
Media Tour on DCFTA (112 p/h: 40 p/h for males, 72 p/h for
1 The targets for this indicator were revised and increased.
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females), November 12, 2016;
Phase I Trainings on Non-Structural Building Codes (800 p/h: 640 p/h for males, 160 p/h for females), September 28 - November 30, 2016;
Workshop on Consumers’ Rights Protection Law RIA (80 p/h: 48 p/h for males, 32 p/h for females), December 9, 2016;
TFS Public Awareness Training (266 p/h:162 p/h for males; 104 p/h for females), October-December 2016;
Media Tour on SPA (347 p/h: 155 p/h for males; 192 p/h for females), February 11-12, 2017;
Workshop on Developing Manuals on CIT Model (168 p/h: 124 p/h foe males; 40 p/h for females), January 23-25, 2017;
Phase II Trainings on Non-Structural Building Codes (450 p/h: 220 p/h for males; 230 p/h for females), December 8 – March 15, 2017;
Electricity Sector Stakeholders Steering Committee Meeting (45 p/h: 35 p/h for males; 10 p/h for females), January 27-29, 2017;
Workshop on Piloting Water Allocation Modelling Using WEAP in the Aragvi River Basin (72 p/h: 48 p/h for males, 24 p/h for females), March 15, 2017;
Workshop on Develop Water Framework Directive (WDF) Implementation Guidance Documents For Georgia (64 p/h per: 12 p/h for males, 52 p/h for females), April 13, 2017;
Electricity Market Players Meeting (28 p/h: 22 p/h for males; 6 p/h for females), April 6, 2017;
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Electricity Market Players Meeting (54 p/h: 54 p/h for males), May 18, 2017;
Regional Energy Conference (968 p/h: 408 p/h for males, 560 p/h for females), May 25, 2017.
Q3, 4396 p/h: 2375 p/h for males, 2021 p/h for females 2.4 Number of GoG staff receiving training through Knowledge Sharing and Training on Ecological Flow (E-flow) for 75: 280: G4G support to develop, implement, and enforce Georgia (12 persons: 9 males, 3 females), October 3-7, 2016; 38 M, 141 M, 139 targeted reforms. 37 F F Workshop with MPs, on M-CEP Concept and Next Steps Short clarification: The indicator will count every Towards Competitive Market (13 persons: 8 males, 5 females), person from the public sector receiving G4G supported December 2, 2016; trainings to develop, implement, and enforce targeted reforms. If one person receives several trainings on Phase I Trainings on Non-Structural Building Codes (200 different issues, each instance will be counted persons: 160 males, 40 females), September 28 - November 30, separately. The indicator also will include 2016; corresponding trainings relevant to the 3rd and 4th components. The indicator data will be disaggregated Workshop on Consumers’ Rights Protection Law RIA (10 based on gender. persons: 5 males, 5 females), December 9, 2016.
TFS Public Awareness Training (133 persons: 54 males, 79 females), October-December 2016;
Workshop on Developing Manuals on CIT Model (21 persons: 16 males; 5 females), January 23-25, 2017;
Phase II Trainings on Non-Structural Building Codes (133 persons: 78 males; 55 females), December 8 – March 15, 2017;
Electricity Sector Stakeholders Steering Committee Meeting (9 persons: 2 males; 7 females), January 27-29, 2017;
Training on RIA Methodology for Civil Servants, (26 persons: 21
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males; 5 females), 28-30 April, 2017;
Workshop on Develop Water Framework Directive (WDF) Implementation Guidance Documents For Georgia (16 persons: 3 males, 13 females), April 13, 2017.
Q3, 531 persons: 332 males, 199 females 2.5 Number of parcels with relevant parcel information N/A, will be reported the annual data. 68,000 204,000 corrected or incorporated into an official land administration system (whether a system for the property registry, cadaster, or an integrated system) as a result of USG assistance.
Short clarification: The indicator will count number of parcels with relevant parcel information corrected or incorporated into an official land administration system (whether a system for the property registry, cadastre, or an integrated system) as a result of G4G assistance.
3.1 Number of policy related documents or legal acts 2 Water Resources Management Guidelines initiate in May, 2 5 agreed with or initiated for adoption by GoG 2017; stakeholders on water resource management through G4G support. 1 Water Resources Management Guideline completed in December, 2017. Short clarification: The indicator will count each policy related documents or legal acts agreed with or initiated Q3, 3 completed results for adoption by GoG stakeholders on water resource management through G4G support. 3.2 Number of PPDs events conducted to advance PPD on Water Demand Forecast in Aragvi River Basin, 5 12 water sector policies through G4G support. November 29, 2016; PPD on Refining Environmental Flow (Flow) Methodology and Short clarification: The indicator will count each PPD Preparatory Work for Environmental Testing work Plan, February event conducted to advance water sector policies 23, 2017; through G4G support. Under PPDs we assume PPD Piloting Water Allocation Modelling Using WEAP in the thematic meetings with the participation of major Aragvi River Basin, March 1, 2017; stakeholders, such as GoG, CSO and private sector PPD on Piloting Water Allocation Modelling Using WEAP in the
USAID | GOVERNING FOR GROWTH (G4G) IN GEORGIA QUARTERLY REPORT JANUARY 01, 2017 – MARCH 31, 2017 66 representatives. Aragvi River Basin, March 15, 2017; PPD on Water Management Law RIA, May 17, 2017.
Q3, 5 PPDs
3.3 Number of people receiving G4G supported training Knowledge Sharing and Training on Ecological Flow (E-flow) for 50: 120: on natural resources management and/or biodiversity Georgia (21 persons: 12 males, 9 females), October 3-7, 2016; 25 M, 60 M, conservation (USAID indicator). 25 F 60 F Workshop on Piloting Water Allocation Modelling Using WEAP in Short clarification: The indicator will count each the Aragvi River Basin (18 persons: 12 males, 6 females), March person from GoG, CSOs or private sector receiving 1 and March 15, 2017; USG supported trainings on natural resources management and/or biodiversity conservation issues. Workshop on Develop Water Framework Directive (WDF) If one person receives several trainings on different Implementation Guidance Documents For Georgia (16 persons: 3 issues, each instance will be counted separately. The males, 13 females), April 13, 2017. indicator data will be disaggregated based on gender. Q3, 55 persons: 27 males, 28 females 4.1 Number of laws, policies, regulations or standards Energy Community Accession Protocol has been signed, October 3 15 addressing clean energy formally proposed, adopted 14, 2016; or implemented by USG assistance (USAID indicator). Energy Law, initiated in February, 2017; Short clarification: The indicator will count each law, policy, regulation or standard addressing clean energy Amendments to the Electricity and Gas Law initiated in May, formally proposed, adopted or implemented through 2017. G4G support. Q3, 3 legal acts 4.2 Number of PPDs conducted through G4G support PPD on ETM Development related Issues, November 4, 2016; 5 23 to advance energy sector policies. PPD on Electricity Sector Stakeholders Steering Committee Short clarification: The indicator will count each PPD Meeting, January 27-29, 2017 (in Kakheti); event conducted through G4G support to advance energy sector policies. Under PPDs we assume Electricity Market Players Meeting, April 6, 2017; thematic meetings with the participation of major stakeholders, such as GoG, CSO and private sector Electricity Market Players Meeting, May 18, 2017; representatives. Regional Energy Summit, May 25, 2017.
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Q3, 5 PPD events 4.3 Number of people trained in clean energy Workshop with MPs, on M-CEP Concept and Next Steps 75: 290: supported by USG assistance. (USAID Indicator). Towards Competitive Market (13 persons: 8 males, 5 females), 38 M, 145 M, December 2, 2016; 37 F 145 F Short clarification: The indicator will count each person from GoG, CSOs or the private sector receiving Workshop with CSOs, on M-CEP Concept and Next Steps G4G supported trainings in energy related policy or Towards Competitive Market (12 persons: 3 males, 9 females), management practice. December 2, 2016;
Electricity Sector Stakeholders Steering Committee Meeting (9 persons: 2 males; 7 females), January 27-29, 2017;
Electricity Market Players Meeting (14 persons: 11 males; 3 females), April 6, 2017;
Electricity Market Players Meeting (27 persons: 27 males), May 18, 2017.
Q3, 75 persons: 51 males, 24 females
4.4 Energy amount of cross-border electricity traded Q3, 510 GWh. 500 GWh 2,430 GWh that is attributable to G4G assistance (USAID indicator).
Short clarification: This indicator will measure the amount of cross border energy traded between Georgia and Turkey. The included target data is for the fiscal year (i.e., October 1 – September 30). The data source for measuring actual performance will come directly from the website of the Electricity System Commercial Operator (ESCO). 5.1 Number of private and civil society organizations Knowledge Sharing and Training on Ecological Flow (E-flow) for 125 510 received capacity building assistance through G4G on Georgia (2 CSOs), October 3-7, 2016;
USAID | GOVERNING FOR GROWTH (G4G) IN GEORGIA QUARTERLY REPORT JANUARY 01, 2017 – MARCH 31, 2017 68 development, implementation, and enforcement of targeted reforms. Workshop with CSOs, on M-CEP Concept and Next Steps Towards Competitive Market (2 CSOs), December 2, 2016; Short clarification: The indicator will count each private and civil society organization that received capacity Master Class on Economic Journalism (5 Businesses), December building assistance through G4G support to develop, 11, 2016; implement, and enforce the targeted reforms. If the organization receives different types of assistance, Media Tour on DCFTA (8 Businesses), November 12, 2016; each will be counted separately. The indicator also will capture organizations classified under 3rd and 4th Workshop on Consumers’ Rights Protection Law RIA (5 CSOs), components. December 9, 2016;
Lecture on Market-Cantered Energy Planning (M-CEP) (16 CSOs), February 23, 2017;
Media Tour on SPA (6 Businesses), February 11-12, 2017;
Training on RIA Methodology for CSOs (15 CSOs), March 29-31, 2017;
Lecture on Market-Centred Energy Planning (M-CEP) (9 CSOs) , February 23, 2017;
Electricity Market Players Meeting (8 Businesses), April 6, 2017;
Electricity Market Players Meeting (12 Businesses), May 18, 2017;
Capacity Building training for Journalists (7 Businesses and 1 CSO), December 27, 2017;
Coffee & Conversation on Land Registration Reform (9 Businesses and 1 CSO ), December 26, 2017;
Media Tour on Crop Insurance (12 Businesses), May 20, 2017;
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Coffee and Conversation on Building safety regulations (4 Businesses and 1 CSOs), March 26, 2017;
Coffee & Conversation on PPD Tracking Mechanism (7 Businesses and 2 CSOs), June 30, 2017;
Trainings for women on management, leadership & customs administration (7 Businesses), May 30, 2017;
Trainings for women on auditing of primary documents, accountability and booking & on types of tax offenses and enforcement (9 Businesses), May 15, 2017.
Q3, 43 CSOs and 94 businesses (146 in total) 5.2 Number of quality services/products provided by EPAC is able to provide the trainings in the state procurement 2 9 professional business associations & think tanks to practice; their clients as a result of USG assistance (USAID indicator). Service on determining the competitive price offer for the goods/services procurement. Short clarification: This indicator measures the number of quality of services such as research, policy advice in Q3, 2 services areas affecting industry, publication of polling data, policy papers, policy seminars, membership meetings, and advocacy activities that are available and used by private enterprises and individual, others. The indicator also will capture services/products provided relevant to the 3rd and 4th components.
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5.3 Number of journalists trained through G4G support Master Class on Economic Journalism (16 persons: 8 males, 8 100: 298: to provide credible and reliable reporting on issues females), December 11, 2016; 50 M, 149 M, affecting Georgia’s business enabling environment. 50 F 149 F Media Tour on DCFTA (28 persons: 10 males, 18 females), Short clarification: The indicator will count each November 12, 2016; journalist receiving G4G supported training on relevant subjects. If one person receives several trainings on Media Tour on SPA (20 persons: 6 males, 14 females ), February different issues, each instance will be counted 11-12, 2017; separately. The indicator data will be disaggregated based on gender. Capacity Building training for Journalists (10 persons: 2 males, 8 females), December 27, 2017;
Coffee & Conversation on Land Registration Reform (10 persons: 2 males, 8 females), December 26, 2017;
Media Tour on Crop Insurance (28 persons: 9 males, 19 females), May 20, 2017;
Coffee and Conversation on Building safety regulations (10 persons: 3 males, 7 females ), March 26, 2017;
Coffee & Conversation on PPD Tracking Mechanism (17 persons: 3 males, 14 females), June 30, 2017.
Q3, 139 Journalists: 43 males, 96 females 5.4 Number of persons from private and civil society Knowledge Sharing and Training on Ecological Flow (E-flow) for 250: 750: organizations receiving training through G4G support Georgia (9 persons: 3 males, 6 females), October 3-7, 2016; 125 M, 375 M, on the development, implementation, and enforcement 125 F 375 F of the targeted reforms. Workshop with CSOs, on M-CEP Concept and Next Steps Towards Competitive Market (12 persons: 3 males, 9 females), Short clarification: The indicator will count each December 2, 2016; person from private and civil society organizations receiving G4G supported trainings to develop, Master Class on Economic Journalism (16 persons: 8 males, 8 implement, and enforce the targeted reforms. If one females ), December 11, 2016; person receives several trainings on different issues,
USAID | GOVERNING FOR GROWTH (G4G) IN GEORGIA QUARTERLY REPORT JANUARY 01, 2017 – MARCH 31, 2017 71 each instance will be counted separately. The indicator Media Tour on DCFTA (20 persons: 5 males, 15 females), also will include corresponding trainings relevant to November 12, 2016; the 3rd and 4th components. The indicator data will be disaggregated based on gender. Workshop on Consumers’ Rights Protection Law RIA (10 persons: 7 males, 3 females), December 9, 2016;
Lecture on Market-Cantered Energy Planning (M-CEP) (16 persons: 11 males, 5 females), February 23, 2017;
Media Tour on SPA (20 persons: 6 males, 14 females ), February 11-12, 2017;
Lecture on Market-Centred Energy Planning (M-CEP) (16 persons: 10 males, 6 females) , February 23, 2017;
Training on RIA Methodology for CSOs (20 persons: 11 males, 9 females), March 29-31, 2017;
Trainings for women on management, leadership & customs administration (11 persons: 11 females), May 30, 2017;
Trainings for women on auditing of primary documents, accountability and booking & on types of tax offenses and enforcement (15 persons: 15 females), May 15, 2017;
Capacity Building training for Journalists (10 persons: 2 males, 8 females), December 27, 2017;
Media Tour on Crop Insurance (28 persons: 9 males, 19 females), May 20, 2017;
Coffee and Conversation on Building safety regulations (10 persons: 3 males, 7 females ), March 26, 2017;
Coffee & Conversation on PPD Tracking Mechanism (17 persons: 3 males, 14 females), June 30, 2017;
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Electricity Market Players Meeting (14 persons: 11 males, 3 females), April 6, 2017;
Electricity Market Players Meeting (25 persons: 25 males), May 18, 2017.
Q3, 252 persons: 114 males, 138 females 6.1 Proportion of females who report increased self- Q3, 100% of female participants who completed the forms 80% 78% efficacy at the conclusion of G4G supported reported on the increased self-efficiency trainings/programming. (USAID Indicator)
Short clarification: The data on the indicator will be collected at the end of each training event based on the women participants’ survey. The proportion will be measured based on the 5 scale survey questionnaire.
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APPENDIX B: DONOR COORDINATION MATRIX
G4G Donor Project Time Contact Donor Donor Contact Information Supported Title Frame Person/Role Funding Reform
Urban Services Irakli Chkhonia, Improvement 2013- USD 100 ADB Senior Project [email protected] TBI Investment 2018 K Officer Project Georgia: Capital Strengthening Kathie Julian, 2014- [email protected] USD 500 Market and ADB Domestic Resident 2016 Tel: +(995 32) 2250 619 K Pension Resource Representative Reform Mobilization Road Corridor Giorgi Kiziria, 2011- USD 140 ADB Investment Deputy Team [email protected] TBI 2015 M Project Leader Pilot Project for Introduction of an Information George Development System for Data Gaprindashvili, Czech [email protected] of Water Transferring and 2013- Leading Specialist, CZK 12.63 Development m Resource Groundwater 2015 Head of Projects M Agency (CzDA) Tel: +(995) 591 404 043 Management Monitoring and Analytical plans Network in Kvareli Department and Lagodekhi Municipalities
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Supporting GoG in Danish Energy Efficiency accomplishm International 2016- and Sustainable Bidzina Chkonia €2.13M ent of the Development 2020 [email protected] Energy in Georgia obligations Agency under the EU - AA
Assistance to the Government of Georgia with Development of 2016- David Managadze EUR 175 ETM EBRD Renewable [email protected] 2017 POC K Development Energy Investments: Electricity Trading Platform Overall Institutionaliz ed Bruno Balvanera, Framework Support Public 2015- Director (Caucasus, for Public EBRD [email protected] TBD Private Dialogue 2018 Moldova and Consultation Belarus) and support on G4G targeted reform areas Georgia - Jvari - Nino Shanidze, 2013- ETM EBRD, KfW Khorga Senior Project [email protected] EUR 60 M 2016 Development Interconnection Coordinator
Establishmen East Invest 2 2015- Christian Gessl, Key EUR 8.75 EU [email protected] t of PPD Project 2018 Expert on Policy M platform
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Development Environmental Zurab Jincharadze, of Water Protection of 2012- zurab.jincharadze@black EUR 7.5 EU River Basin Resource International River 2017 sea-riverbasins.net M Management Expert Management Basin Project plans TA for Enguri / Muriel.Lambert-de- 2011- Muriel Lumbert, ETM EU Vardnili HPP [email protected] EUR 4 M 2016 Project Manager Development Rehabilitation u EIB-03 Technical Alvaro.ortega- Assistance for the Development [email protected] Water Alvaro Ortega of Water 2010- u EUR 420 EU Infrastructure Aparicio, Program Resource 2016 [email protected] K Modernization and Manager Management uropa.eu Development plans Tel: (+995 32) 2943763 Project Eszter Süle 2016- Resident Twinning EUR 1.1 ETM EU Twinning [email protected] 2017 Advisor, E-Control M Development Austria Legislative Impact Assessment, 2015- Katerina Velichkova, katerina.velichkova@gm EUR 1.5 RIA National EU Drafting and 2017 RIA Expert ail.com M Framework Representation Location Establishmen East Invest 2 2015- Christian Gessl, Key EUR 8.75 EU [email protected] t of PPD Project 2018 Expert on Policy M platform
Twinning Project - Tax Reform Strengthening (Tax Administrative 2014- Irakli Khmaladze, [email protected] EUR 1.3 payment EU Capacity of the 2015 Project Manager uropa.eu M simplification, Georgia RS in Tax Code Taxation Review)
Establishmen East Invest 2 2015- Christian Gessl, Key EUR 8.75 EU [email protected] t of PPD Project 2018 Expert on Policy M platform
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Legislative Impact Assessment, 2015- Katerina Velichkova, katerina.velichkova@gm EUR 1.5 RIA National EU Drafting and 2017 RIA Expert ail.com M Framework Representation Location Nikos Tsakalidis, INOGATE 2012- EUR 16.6 ETM EU Deputy Team [email protected] (Regional Project) 2015 M Development Leader
Energy EU4Energy 2016- salome.janelidze@energ EU Salome Janelidze TBI Strategey Governance 2019 y-community.org Reform, ETM
Paata Iakobashivli, Development Water (from MDF) Head of of Water European 2013- [email protected], Infrastructure Projects and EUR 40 M Resource Investment Bank 2018 [email protected] Modernization II Analytical Management Department plans
Foundation of Private German Industry Senior Expert Julianna Schüller, N/A [email protected] N/A Sector/CSO for International Service Project Coordinator Development Cooperation
Global G4G is Environment collaborating 2016- Ana Shubitidze GEF Facility (GEF) [email protected] TBI with the GEF 2017 Project Manager Small Grants Small Grants Programme Programme Customs Anke Sahmland, Enforcement; Development of Head of Foreign German Federal 2015- [email protected] Customs Customs Post Relations TBI Customs Service 2017 nd.de Post Clearance Audit Department at Clearance German customs Audit Tax Reform; Private Sector Customs Development 2013- Marieta Riedel, GIZ [email protected] TBI Administratio Project in the 2016 Expert n and South Caucasus Enforcement;
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RIA National Framework
Legal Approximation Insolvency 2013- Dr. Jens Deppe, GIZ towards European [email protected] TBI Reform; Land 2016 Team Leader Standards in the Registration South Caucasus Tax Reform; Customs Administratio Georgia 2013- Eka Avaliani, [email protected] USD 1.8 n and IFC Investment 2016 Operations Officer Tel: +(995) 599 560 229 M Enforcement, Climate Project Tax Perception Survey
IFC Infra Clean Energy 2012- Bjorn Brandizarg, bjorn.brandtzaeg@clean USD 700 ETM Ventures Invest 2015 Consultant energyinvest.no M Development
Development Rehabilitation of Nino Shanidze, of Water drinking, waste 2010- EUR KfW Senior Project [email protected] Resource and rainwater 2015 101.8 M Coordinator Management systems in Batumi plans Institutional Cooperation Between Norwegian Water Norwegian Resources and Water 2013- Kjell Repp, Head of NOK Ministry of Energy [email protected] Resource 2016 International Section 13.68 Foreign Affairs Directorate and Management Ministry of Energy and Natural Resources of Georgia
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Energy Strategy Norwegian Sustainable 2012- Endre Ottosen, Development Ministry of Hydropower [email protected] TBI 2015 Project Coordinator ; Water Foreign Affairs Development Resource Management SPARE- Norwegian International Madona [email protected] Energy Society for the School Project for 2012- Pirvelashvili, Project madonapirvelashvili@yah TBI Strategy Conservation of Application of 2015 Coordinator oo.com Development Nature Resources and Energy Private Sector and Civil Society [email protected] Capacity 2015 - Tamuna Nozadze, Peace Corps Let Girls Learn ov TBI Strengthenin 2017 Coordinator Tel.: +(995) 591 095 973 g / Women and Youth Empowerme nt Overall Institutionaliz ed Framework Swiss Lasha Labadze, Inclusive Growth 2013- GEL 140 for Public Cooperation Deputy Director [email protected] Dialogues 2014 K Consultation Office ISET Policy Institute and support on G4G targeted reform areas Tax Reform; U.S. Treasury [email protected] Customs Office of Revenue Advisor 2012- Davit Koguashvili, m USD 1 M Administratio Technical Program 2017 Consultant Tel: +(995) 599 121 120 n and Assistance Enforcement South Caucasus U.S. Treasury Financial Sector Angela Prigozina, aprigozhina@worldbank. Office of 2014- Pension Advisory Project, Country Sector org TBI Technical 2017 Reform Capital Markets Coordinator Tel.: +(995) 322 296 228 Assistance and Pension
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Reform Technical Assistance
Development Climate Resilient of Water Flood and Flash 2012- Ivane Tsiklauri, USD 5.06 UNDP [email protected] Resource Flood 2016 Project Manager M Management Management Plans Enhancing Development Environmental of Water 2015- Nino Gvazava USD 1.28 UNDP Monitoring and [email protected] Resource 2018 Project Manager M Reporting in Management Georgia Plans Development Nino Antadze, of Water UNDP/GEF Kura 2009- Energy and [email protected] USD 2.9 UNDP Resource Ara(k)s project 2014 Environment Team Tel.: (+995) 599 562 200 M Management Leader Plans Advancing Integrated Water UNDP-GEF Kura 2017- [email protected] Resources UNDP-GEF Tamar Gugushvili TBI II Project 2022 rg Management across the Kura River Basin Michael McClain – UNESCO-IHE PhD, Professor of Enviromental Water 2016- Ecohydrology m.mcclain@unesco- UNESCO TBI Flow (Eflow) Management 2017 Department of ihe.org Methodology University Water Science and Engineering Overall Advancing CSO Institutionaliz Capacities and tkarosanidze@ewmi- ed Engaging Society 2014- Tamar Karosanidze, USD 5.5 USAID access.org Framework for 2019 COP M Tel: +(995) 599 902 298 for Public Sustainability (AC Consultation CESS) Collaboration
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on a PPD under DCFTA awareness campaign Georgian Human GoG and and Institutional CSOs Capacity 2015- Roman Tsutskiridze, capacity USAID [email protected] USD 7 M Development 2020 COP building in (HICD) 2020 G4G targeted Project reform areas Momavlis Taoba marina.ushveridze@ph- (Future 2014- Marina Ushveridze, int.org Youth USAID TBD Generation) 2017 COP Tel: +(995) 322 990049 involvement Project Tel: +(995) 322 233338 Enhancing Capacity for Low Danna Kenney, [email protected] Energy Emission 2013- USAID COP Inga .org USD 6 M Strategy Development 2018 Pkhaladze, DCOP Tel: +(995) 32 2 50 63 43 Development Strategies (EC- LEDS) NARUC- Black Jargalan 2006- USD 200 ETM USAID Sea Regulatory Jambaldorj, Senior [email protected] 2020 K Development Initiative Program Officer
AGT/Black Sea 2011- Will Polen, Senior ETM USAID Transmission [email protected] USD 80 K 2017 Director Development Project
Implementati on of the RIA Good Governance 2015- [email protected] National USAID Initiative in David Smith, COP USD 11 M 2020 Tel: +(995) 598 24 77 47 Framework Georgia (GGI) Draft Water Law
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Overall Institutionaliz ed Media for Framework Transparent and 2014- Lika Chakhunashvili, [email protected] USD 5.1 for Public USAID Accountable 2019 COP Tel: +(995) 599 902 298 M Consultation Governance (M- and support TAG) Program on G4G targeted reform areas Zrda represents an opportunity to strengthen the skills, productivity, and networks of local actors – from vulnerable households The ZRDA activity 2016- Katy Chumburidze, USD 14.7 to developed USAID Tel: +995552413 in Georgia 2021 DCOP M Micro, Small, and Medium Enterprises (MSMEs) – so they can contribute to broad-based economic growth and strengthened resilience in target communities. Youth Private Entrepreneurial Sector and Nino Lagvilava / [email protected] USAID Skills for TBI TBI Civil Society Chief of Party Tel: +(995) 558 16 51 67 Advancing Capacity Employability and Strengthenin
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Income g / Youth Generation in Georgia (YES – Georgia) Private Sector and Civil Society Promoting Gender 2013- Mariam Chitishvili / [email protected] Capacity USAID Equality in TBI 2016 PR Manager Tel:(+995) 032 299 88 56 Strengthenin Employment g / Women Empowerme nt Restoring Efficiency to Luisa 2013- [email protected] USD 19.5 Crop USAID Agricultural Namicheishvili, 2018 Tel: +(995) 595 030 353 M Insurance Production DCOP (REAP) Tax Reform; [email protected] Customs Revenue Advisor 2012- Davit Koguashvili, USAID m USD 1 M Administratio Program 2017 Consultant Tel: +(995) 599 121 120 n and Enforcement Overall Institutionaliz ed Supporting Local Framework Self-Governance 2014- [email protected] for Public USAID Nino Lomjaria, COP TBD Reforms in 2015 Tel: +(995) 555 02 02 00 Consultation Georgia and support on G4G targeted reform areas Momavlis Taoba marina.ushveridze@ph- (Future 2014- Marina Ushveridze, int.org Youth USAID TBD Generation) 2017 COP Tel: +(995) 322 990049 involvement Project Tel.: +(995) 322 233338
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Implementati on of the RIA Good Governance 2015- [email protected] National USAID Initiative in David Smith, COP USD 11 M 2020 Tel: +(995) 598 24 77 47 Framework Georgia (GGI) Draft Water Law Integrated Natural Development Resources of Water 2012- Marika Shotadze, mshotadze@globalwater USAID Management in USD 5 M Resource 2014 Program Director s.net Watersheds of Management Georgia plans Youth Inclusion Michelle P. Rebosio and Social 2014- Calderon, Social [email protected] USD 500 WB TBI Accountability 2016 Development Tel: +(995) 322 907 484 K Project Specialist
Transmission Grid Joseph Melitauri, 2014- USD ETM WB Strengthening Senior Operations [email protected] 2019 61.88 M Development Project Officer South Caucasus Financial Sector Advisory Project, Angela Prigozina, aprigozhina@worldbank. 2014- Pension WB Capital Markets Country Sector org TBI 2017 Reform and Pension Coordinator Tel: +(995) 322 296 228 Reform Technical Assistance Land registration Irrigation and Kathrine M. Kelm, pilot project Land Market 2014- Senior Land implementati WB [email protected] USD 50 M Development 2019 Administration on Irrigation Project Specialist tariff methodology development Thomas Edward Georgia National Haven / Team Innovations Innovation 2016-
WB Leader [email protected] USD 40 M and Ecosystem 2021 Siddhartha Raja / Technology (GENIE) Project (Senior ICT Policy
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Specialist
Development John Gabriel Capital 2012- WB Policy Operation Goddard, Senior [email protected] TBI Market 2015 (DPO) Series Economist Reform
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APPENDIX C: UTILIZATION OF USG PERSONNEL AND COLLABORATION WITH OTHER DONOR- FUNDED PROJECTS COLLABORATION WITH OTHER USG PERSONNEL
National Association of Regulatory Utility Commissioners (NARUC): G4G continues collaboration with NARUC in Energy sector reforms.
US Trade Representative (USTR) and US Customs: G4G facilitated discussion between the RS, USTR and US Customs on potential collaboration in the area of AEO and post clearance control. G4G is also collaborating with USTR on the Law on e-Commerce.
USTR Europe and Middle East Affairs Office: United States Trade Representative, Jason Buntin, in cooperation with G4G, joined efforts on developing issues related to SMEs, e-commerce legislation, technical barriers to trade (TBT), RIA, PPD and digital trade. United States Energy Agency (USEA): G4G is collaborating with USEA on the planned study tour for GoG officials on ETM in the US. USAID HQ: G4G is collaborating with the USAID HQ’s Communications Department on producing a Domestic Resource Mobilization (DRM) video on Georgia’s achievements in Tax and Customs Reform and its benefits. USAID Armenia: G4G is collaborating with USAID Armenia to support cross-border electricity trade. COLLABORATION WITH OTHER USAID PROJECTS
Good Governance Initiative (GGI): G4G collaborated with Good Governance Initiative (GGI) in Georgia, a five-year activity funded by USAID to implement RIA National Framework. G4G held several meetings with project representatives to coordinate activities for implementation of RIA National Framework.
HICD 2020: HICD 2020 is supporting ESCO to identify fundamental reasons of performance gaps and develop recommendations for improvement. Since ESCO plays an important role in reforming the electricity system and is one of the counterparts of G4G, it was agreed that G4G will participate in the working group meetings with the representatives of ESCO, HICD 2020 and other stakeholders. G4G has been collaborating with HICD 2020 on functional analysis and employee satisfaction survey of the RS. Crystal Fund: G4G is cooperating with Crystal Fund and PH International in the frames of the program "Youth Entrepreneurial Skills for Advancing Employability and Income Generation in Georgia" (YES – Georgia). G4G is coordinating the program for businesses and business support organizations interested in youth empowerment with the aim to increase employability among youth. ZRDA: G4G is cooperating with ZRDA in the grant program “Youth Innovation Events” implemented by ELVA. COLLABORATION WITH OTHER DONOR-FUNDED PROJECTS EU “Water Initiative for Eastern Partnership” (EUWI+): G4G worked closely with EUWI on water resource management.
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EU “EU4Energy Governance”: G4G is collaborating with “EU4Energy Governance in Energy Strategy Reform, ETM, and the “Regional Energy Summit.” East Invest 2: G4G worked with EU project East Invest 2 on business support organization and EPAC development and on the Annual Partner Conference in Yerevan, Armenia, aimed to fostering economic cooperation between EU and Eastern Partnership countries. Konrad Adenauer Fund/PMCG: A research project to identify gaps between EU Renewable Energy (RE) directives and existing legal and regulatory framework in Georgia was conducted by PMCG Research funded by Konrad Adenauer Fund. At a presentation of the research results, G4G presented biomass and renewable energy share in the current energy mix, current challenges and future perspectives in increase share of renewable energy in the countries energy mix. EU “Legislative Impact Assessment, Drafting and Representation Location” Project: G4G held several meetings with project experts to coordinate activities related to institutionalizing the RIA mechanism across the GoG. G4G is collaborating with the project in regards to Water Resource Management Law RIA. ADB: G4G continued collaboration with ADB on Capital Market and Pension Reform. IFC: G4G participated as a working group member on a second study of customs time release. G4G with IFC and other donors (GiZ, EBRD) have been collaborating on insolvency. IMF TADAT: G4G is working with the IMF’s TADAT department to support the RS. IMF Pension Reform and Capital Market Support: G4G collaborates with IMF for planning Pension and Capital Market Reform. Federal Customs Service of Germany: G4G collaborated with the Federal Customs Service of Germany for implementation of the post-clearance audit action plan and study tour. WCO “Risk Analysis Program”: TFS is being integrated with a WCO supported risk analysis program (Cargo Targeting System). EBRD Investor’s Council: G4G continued collaboration and participation with the Investor’s Council. EBRD “Electricity Trading Platform Project”: G4G is collaborating with EBRD on the "Electricity Trading Platform" project. German Industry for Int’l Cooperation Senior Expert Service: G4G collaborates with the Senior Expert Service to support EPAC and the private sector. EU project “Support to the Development of Private and Administrative Law Systems in Georgia” implemented by GiZ: G4G closely coordinates with GiZ on development of insolvency law. WB Land Registration Pilot Project implementation: G4G collaborates with WB to support Land Registration Reform. WB “Georgian National Innovation Ecosystem” (GENIE) Project: G4G collaborates with WB through the GENIE project for Innovation Reform. WB Pension Reform Activity: G4G is collaborating with WB in Pension Reform. WB Irrigation and Land Market Development Project (WB-ILMD): G4G worked with the ILMD project in developing the ILMD's strategy paper on irrigation sector regulation.
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UNDP “Enhancing Environmental Monitoring and Reporting in Georgia”: G4G began discussions with UNDP's Enhancing Environmental Monitoring and Reporting in Georgia to identify areas of possible cooperation with regards of data collection and processing related to water resource management. UNDP KURA II Project: G4G is collaborating with the KURA II project to further push implementation of environmental flow (EF) methodology, developed under G4G. UNDP intends to take-up the methodology developed and work on the implementation plan. DANIDA/NIRAS “Energy Efficiency and Sustainable Energy in Georgia”: The Danish International Development Agency (DANIDA) funded project “Energy Efficiency and Sustainable Energy in Georgia,” implemented by NIRAS, aims at supporting the MoE, MoESD, MoF, GNERC, GSE and ESCO in accomplishment of the obligations under the EU - Georgia AA. G4G participated in a PPD during the quarter under the scope of the project. G4G expressed interest to further cooperating with DANIDA in building a sustainable energy sector in Georgia. United Nations Economic Commission for Europe (UNECE): On December 12-13, G4G participated in the Renewable Energy Hard Talk on “New Possibilities for Developing Renewable Energy in Georgia,” organized by the Renewable Energy Policy Network for the 21st Century (REN 21) and UNECE at the Ministry of Energy (MoE). Discussions were held on the progress made in terms of facilitating and utilizing renewable energy sources, ensuring relevant regulatory/legal framework and latest trends. Emerging issues were also reviewed. G4G discussed M-CEP concept and the importance of inclusion of new technologies in renewable energy in energy planning and drafting energy strategy of Georgia. EU - "Eastern Partnership Assistance Program": Provides technical support to Georgian authorities with respect to Electricity Market reform in the coming months. G4G is cooperating with the Program concerning electricity market/ETM development. Good Governance Fund (GGF) (UK gov't project implemented by PwC): G4G is collaborating with GGF on CIT reform and within Investor Council activities. Peace Corps: G4G works with the Peace Corps’ global program "Let Girls Learn" on youth and women empowerment through mentorship and trainings on advocacy and entrepreneurship as well as participated in a resource fair organized by the Peace Corps. Global Environment Facility (GEF) Small Grants Programme: G4G is collaborating with the GEF Small Grants Programme, which allocates USD 400,000 to support projects that conserve and restore the environment. UNESCO-IHE Water Management University: GEO, G4G grantee for the “Developing Environmental Flow Methodology” grant program, conducted a workshop to present the methodology and guidebook for the determination of environmental flows in Georgia with the active involvement of the international expert team including Professors Michael McClain and Rebecca Therme from the UNESCO-IHE Water Management University. GiZ “Legal Approximation towards European Standards in the South Caucasus”: G4G is cooperating with GiZ on RIA under the “Legal Approximation towards European Standards in the South Caucasus” program.
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APPENDIX D: UTILIZATION OF INTERNS
N Name Internship Period G4G Supervisor & Component
1 Aleksandre Gambahidze 4/3/2017 - 7/3/2017 Giorgi Chikovani/Energy Trade Policy Improvement Component
2 Ana Gogishvili 4/3/2017 - 6/30/2017 Maya Eristavi/Private Sector and Civil Society Capacity Strengthening Component
3 Lika Tsukulidze 4/3/2017 - 7/3/2017 Maya Eristavi/Private Sector and Civil Society Capacity Strengthening Component
4 Natia Pailodze 4/3/2017 - 6/30/2017 Maya Eristavi/Private Sector and Civil Society Capacity Strengthening Component
5 Tinatini Topuridze 4/3/2017 - 6/30/2017 Maya Eristavi/Private Sector and Civil Society Capacity Strengthening Component
6 Tornike Jincharadze 5/1/2017 - 5/31/2017 Giorgi Amzashvili / GOG Capacity Strengthening Component
7 Irakli Tsatsalashvili 6/1/2017 - 8/31/2017 Maya Eristavi/Private Sector and Civil Society Capacity Strengthening Component
8 Ana Tsiskarishvili 6/1/2017 - 8/31/2017 Maya Eristavi/Private Sector and Civil Society Capacity Strengthening Component
9 Medea Metreveli 6/1/2017 - 7/31/2017 Maya Eristavi/Private Sector and Civil Society Capacity Strengthening Component
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APPENDIX E: G4G ADVISORS UTILIZED IN GOG INSTITUTIONS
N (#) Name Area(s) of Focus GoG Institution
Water Resource 1 Georg Petersen MENRP Management
Electricity Trading 2 Jake Delphia MoE Mechanism
Regulatory Impact 3 Roman Ladus MoESD Assessment
4 Rafal Szymczak Pension MoESD
5 Rainer Neppl Customs RS
6 Karl Sporny Customs RS
7 Michelle Parnell Capital Markets MoESD, MoF, NBG
8 Naira Kharkheli IFRS for Tax Auditors RS
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9 Kakha Magradze Procurement SPA
10 Marina Guledani Capital Markets MoESD
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APPENDIX F: UTILIZATION OF PRIVATE SECTOR AND CIVIL SOCIETY ORGANIZATIONS
N (#) Name of Organization Area(s) of Focus Utilization Legal Profession’s 1 EPAC Member Development Center (LPDC) Collaboration
2 Agency for Strategy Initiatives EPAC Member Collaboration Tax Enforcement and 3 AmCham Administration, CSO Capacity Collaboration Building, EPAC Member 4 Analysis & Consulting Team Business Perception Survey Collaboration Art International Women 5 EPAC Member Collaboration Association Association of Banks of Civil Society Capacity 6 Collaboration Georgia Building, EPAC Member Association of Business Tax Enforcement and 7 Consulting Organizations of Administration, EPAC Collaboration Georgia Member Tax Enforcement and Association of Law Firms of 8 Administration/Insolvency, Collaboration Georgia EPAC Member Association of Pharmaceutical 9 Companies Representatives in EPAC Member Collaboration Georgia Youth engagement in PPD, Association of Young EPAC Member, Tax 10 Collaboration Economists of Georgia Enforcement and Administration, RIA Tax Enforcement and Consultations 11 ATA partners Administration Outreach 12 Atlantic Council of Georgia EPAC Member Collaboration Batumi International Container Trade Facilitation and 13 Collaboration Terminal Customs
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Civil Society Capacity 14 Believe Foundation Collaboration Building, Youth British Georgian Chamber of 15 EPAC Member Collaboration Commerce Support National PPD, Youth Business and Economic 16 engagement in PPD, EPAC Collaboration Centre Member Business Association “Women 17 Youth Engagement in PPD Outreach for Tomorrow” Tax Enforcement and Business Association of Administration, Civil Society 18 Consultations Georgia Capacity Building, Customs and Trade Business Professionals 19 EPAC Member Collaboration Network Caucasus Environmental NGO EPAC Member, Water Collaboration, 20 Network Resource Management Consultations Water Resource 21 Caucasus University Management, EPAC Outreach Youth Engagement in PPD 22 Center for Business Advocacy EPAC Member Collaboration Civil Society Capacity 23 Center for Competition Building, EPAC Member, Collaboration Competition Policy Center for Competition Law EPAC Member, Competition 24 Collaboration and Consumer Protection Policy Center for Innovative 25 EPAC Member Collaboration Development of Enterprises 26 Center for Social Sciences EPAC Member Collaboration Center for Training and 27 EPAC Capacity Building Collaboration Consultancy Chamber de Commerce 28 Energy, EPAC Member Consultations France Georgia 29 Clean Energy Energy Collaboration
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Collaboration 30 Co-Investment Fund Energy Consultations 31 Construction Inspection EPAC Member, Building Code Collaboration Consumer Rights Protection 32 EPAC Member Collaboration and Control Center 33 Correggio Consulting Energy Collaboration 34 Crystal Fund Youth Engagement in PPD Outreach 35 Dechert LLC Competition Collaboration Energy,Capital Markets, Outreach 36 Eastern Power Corporation Innovation Collaboration Civil Society Capacity Economic Policy Research 37 Building, EPAC Member, Collaboration Center Youth engagement in PPD 38 Energo Aragvi Energy Collaboration Energy, Youth engagement in Collaboration 39 Energy Academy of Georgia PPD Outreach Civil Society Capacity Building Energy, 40 Energy Efficiency Centre Trade Facilitation and Collaboration Customs Water Resource 41 Energy Solutions Management, Collaboration Energy 42 Environmental Development Water Resource Management Collaboration 43 Europe Foundation EPAC Capacity Building Collaboration European Federation of 44 Energy Collaboration Energy Traders European Union-Georgian 45 EPAC Member Collaboration Business Council 46 Export Development Agency EPAC Member Collaboration
47 Free Market Advocacy EPAC Member Collaboration
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Youth Engagement in PPD Freight Forwarders Association Outreach 48 Trade Facilitation and of Georgia Collaboration Customs Tax Enforcement and 49 GAMMA Administration Consultations Water Resource Management Consultations 50 Georgia Hydro Energy Collaboration
51 Georgia Urban Enerji Energy Collaboration
Consultations, 52 Georgian American University Youth Engagement in PPD Outreach EPAC Member Collaboration Georgian Association “Women 53 Women engagement in PPD, Outreach in Business” Civil Society Capacity Building Consultations Georgian Association for 54 EPAC Member Quality (GAQ) Collaboration Georgian Association of 55 Customs and Trade Outreach Expeditors Georgian Association of 56 EPAC Member Collaboration Guides Georgian Association of Civil Society Capacity 57 Realtors Building, EPAC Member Collaboration 58 Georgian Bar Association EPAC Member Collaboration 59 Georgian Business Chamber EPAC Member Collaboration Georgian Chamber of Tax Enforcement and 60 Consultations Commerce and Industry Administration, Energy Georgian Distribution 61 EPAC Member Collaboration Association Georgian Ecotourism 62 EPAC Member Collaboration Association Georgian Energy Development 63 Energy Collaboration Fund 64 Georgian Environmental Water Resource Management Collaboration
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Outlook Civil Society Capacity Building, EPAC Member Collaboration 65 Georgian Farmers Association Water Resource Consultations Management, CSO Capacity Building, EPAC Member Georgian Hazelnut Producers 66 EPAC Member Collaboration and Exporters Association
Georgian Hotel and Restaurant 67 Collaboration Federation EPAC Member
Consultations 68 Georgian Hydro Power Energy Collaboration Georgian Incoming Tour- Trade Facilitation and 69 Consultations Operators Association Customs, EPAC Member Georgian Insurance CSO Capacity Building, Crop 70 Consultations Association Insurance Georgian International Energy 71 Energy Collaboration Corporation Georgian International Road Collaboration 72 Customs and Trade Carriers Association Consultations Georgian Investment Group 73 Energy Collaboration Energy Georgian Law and Policy 74 Youth engagement in PPD Collaboration Research Centre Georgian Lawyers for Youth engagement in PPD, 75 Collaboration Independent Profession EPAC Member Georgian Lawyers National Youth engagement in PPD, 76 Collaboration Association EPAC Member Civil Society Capacity Building, EPAC Member Collaboration 77 Georgian Logistics Association Trade Facilitation and Consultations Customs
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Women engagement in PPD, Georgian Microfinance 78 Civil Society Capacity Collaboration Association Building, EPAC Member Georgian Oil and Gas 79 Energy Collaboration Corporation 80 Georgian Pistachio Association EPAC Member Collaboration Youth engagement in PPD, Outreach Georgian Small and Medium Tax Enforcement and 81 Consultations Enterprise Association Administration, CSO capacity Collaboration Building, EPAC Member Georgian Society of Women engagement in PPD, 82 Accountants, Auditors and Civil Society Capacity Collaboration Consultants Building, EPAC Member Georgian Society of 83 EPAC Member Collaboration Investment Professionals
Civil Society Capacity Building, Crop Insurance, 84 Georgian Technical University Collaboration Energy, Youth engagement in PPD
85 Georgian Tourism Association EPAC Member Collaboration Georgian Vocational Education Civil Society Capacity 86 Building, EPAC Member Collaboration
87 Georgian Wine Association EPAC Member Collaboration
Innovation and Technology Georgian Women Business Women Engagement in PPD, 88 Collaboration Association Civil Society Capacity Building, EPAC Member Youth Engagement in Georgian Young Lawyer’s PPD, CSO Capacity 89 Collaboration Association Building, EPAC Member, Land Registration
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Georgian-Ukrainian Business 90 EPAC Member Collaboration Club Tax Enforcement and 91 German Business Association Administration, CSO capacity Collaboration Building, EPAC Member 92 Hydrolea LTD Energy Collaboration Information and Energy Collaboration 93 Communications Technology Innovation and Technology Consultations Business Council EPAC Member Infrastructure Construction 94 EPAC Member, Building Code Collaboration Companies Association Institute for Development for Media engagement in PPD, 95 Collaboration Freedom of Information EPAC Member Institutional and Capacity Water Resource 96 Outreach Building Development Center Management, EPAC Member Int’l School of Economics at Energy, Youth engagement in 97 Tbilisi State University-Policy PPD, CSO Capacity Collaboration Institute Building, EPAC Member, RIA International Black Sea 98 Youth Engagement Collaboration University International Business and 99 EPAC Member Collaboration Economic Development Center Youth engagement in PPD, CSO Capacity Building, International Chamber of Collaboration 100 Energy Commerce-Georgia Consultations Tax Enforcement and Administration International Investors 101 EPAC Member Collaboration Association 102 JS EnergoPro Energy Collaboration Consultations 103 JS Telasi Energy Collaboration Junior Chamber International 104 EPAC Member Collaboration Georgia
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Tax Enforcement and 105 Justice Development Center Administration, CSO capacity Consultations Building, EPAC Member Tax Enforcement and Administration, CSO capacity Consultations 106 KG Energy Building Collaboration Energy Knowledge and Experience Water Resource 107 Collaboration Transfer Management, Tax Reform Media Holding “Palitra” (Palitra 108 Media Engagement in PPD Collaboration TV, IPN, BPN) National Association of Local Media Engagement in PPD 109 Collaboration Authorities of Georgia Water Resource Management 110 National Broadcaster Media Engagement in PPD Collaboration 111 New Economic School Water Resource Management Outreach Energy 112 News Agency “Agenda.ge” Collaboration Media Engagement in PPD 113 Newspaper “Georgia Today” Media Engagement in PPD Collaboration 114 Newspaper “Messenger” Media Engagement in PPD Collaboration 115 Newspaper “Rezonansi” Media Engagement in PPD Collaboration Online and Printed Journal 116 Media Engagement in PPD Collaboration “Liberali” Collaboration 117 Partnership Fund Energy Consultations 118 PH International Media Engagement in PPD Collaboration 119 PMC Research EPAC Member Collaboration Media engagement in PPD, Energy Policy Management Consulting Collaboration, 120 Tax Enforcement and Group Consultations Administration, CSO Capacity Building Youth Engagement in Consultations 121 Poti APM Terminals Trade Facilitation Collaboration
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Consultations 122 Radio “Commersanti” Media Engagement in PPD Collaboration 123 Radio “Tavisupleba” Media Engagement in PPD Collaboration
124 Real Estate Reform Center EPAC Member Collaboration 125 REC Caucasus Water Resource Management Collaboration Regional Management and 126 EPAC Member Collaboration Economic Development Center 127 San Diego State University Youth Engagement in PPD Collaboration Schulze Global Investments 128 Energy Collaboration LTD 129 Strong Society EPAC Member Collaboration 130 Tax Payers Union EPAC Member Collaboration Transparency International Land Registration Reform, 131 Collaboration Georgia EPAC Member 132 TV Channel “Imedi” Media Engagement in PPD Collaboration 133 TV Channel “Maestro” Media Engagement in PPD Collaboration 134 TV Channel “Rustavi2” Media Engagement in PPD Collaboration 135 TV Channel “Tabula” Media Engagement in PPD Collaboration Waste Management Youth Engagement, Internship 136 Collaboration Association Program, EPAC Member Business Perception Survey, 137 Wine Tourism Association Collaboration EPAC Member 138 Women for Tomorrow EPAC Member Collaboration Trade Advisory Group 139 World Experience for Georgia Collaboration Establishment, Energy Youth Engagement in PPD Young Entrepreneur Consultations 140 Trade Advisory Group Association Collaboration Establishment, EPAC Member
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APPENDIX G: SUMMARY OF GRANT ACTIVITIES
Reform Project Title Number of Number Implementing Grants in USD Region of Type of Project Applications of Entity Awarded/Pending Implementation Beneficiaries Status Reviewed Grants Awarded Institutionalized Economic Tbilisi, Central Framework for Assessment on Policy Regions: East Government Public Collaborative 2 1 Research 25,955 Completed and West and Private Consultation Governance Gaps Center Georgia Sector Reform (EPRC) Assessment on Tbilisi, Media, Public Constraints Regions: 1 1 GMCG LLC 14,915 and Private Completed Journalists Face in Kakheti, Sector Covering Reforms Adjara Central Georgian Reform Government, Progress Tracking 3 1 ISET-PI 94,641 Tbilisi Public and Ongoing System (GRPTS) Private Sector PPD Quality Tracking Central 3 1 IDFI 94,700 Tbilisi Ongoing Mechanism Government Tbilisi, Association of Regions: Women Young Empowering Women Kakheti, organizations, 8 1 Economists of 24,795 Completed in Business Mtskheta- Women Georgia Mtianeti and entrepreneurs (AYEG) Shida Kartli Central Regulatory Impact Government, Assessment (RIA) on Tbilisi, 3 1 ISET-PI 39,445 Public and Completed Irrigation Tariff Regions Private Methodology Sector
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Central Establishing PPD Business and Government, Platform in 2 1 Economic 29,956 Tbilisi Public and Completed Parliament Centre (BEC) Private Sector Central Business Perception Government, Tbilisi, Survey on Policy 3 1 ACT 37,779 Public and Completed Regions Reforms Private Sector Central Strengthening PPD Government, Platform in 2 1 BEC 54,274 Tbilisi Public and Ongoing Parliament Private Sector Women Capacity Women Building Activities in Economic Shida Kartli organizations, Samtskhe-Javakheti 6 1 24,925 Ongoing Games’ Club Region Women and Shida Kartli entrepreneurs Regions Youth Debate on 40,000 Tbilisi RFA Issued G4G Reforms Develop Three Policy Central Papers on Selected Government, DCFTA Topics and 4 1 EPRC 23,292 Tbilisi Public and Ongoing Facilitate Analysis- Private based Discussions Sector Local and DCFTA Awareness Central Raising Trainings for Tbilisi, Government, In Selection 6 61,000 Journalists and Regions Public and Process CSOs Private Sector Tbilisi Central Analytical Support to Business Government, 5 1 26,120 Tbilisi Ongoing TAG Service Public and Center Private
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(TBSC) Sector
Energy Energy and Water World Strategy Consumption End- experience for Tbilisi, Central Reform Use Survey In 3 1 46,576 Completed Georgia Regions Government Commercial and (WEG) Industrial Sectors RIA on Electricity Ilia State Central Trading Mechanism 3 1 39,400 Tbilisi Ongoing University Government (ETM) Electricity Demand Central In Selection 5 33,129 Tbilisi Forecast Government Process
Electricity Production Central In Selection 3 34,500 Tbilisi Modeling Government Process Water Resource Develop Water Local and Management Resource Georgia's Central Reform Management Environmental Region: Government, Guidance 1 1 34,365 Completed Outlook Georgia Public and Documents (GEO) Private Applicable for Sector Georgia Local and Green Paper on Regional Region: Central “Water Allocation Environmental Mtskheta- Government, Plan Framework – 1 1 Centre for the 34,963 Completed Mtianeti Public and Challenges for Caucasus Region Private Implementation” (RECC) Sector Computer Models for Environment Water Resource and Region: Private 1 1 34,125 Completed Management Development Georgia Sector, CSOs Planning (ED) Innovative Region: Local and technologies for Georgia, Central Water Re-use and 1 1 GEO 34,450 Mtskheta- Government, Completed Wastewater Mtianeti Public and Treatment Region Private
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Sector, CSOs
Local and Central E.F. Methodology Region: Government, 1 1 GEO 69,900 Completed Testing Georgia Public and Private Sector, CSOs Local and Region: Central Water Demand Mtskheta- Government, 1 1 RECC 34,323 Completed Forecast Mtianeti Public and Region Private Sector, CSOs Central RIA on Law on Water Government, Region: Resources 1 1 ISET-PI 36,607 Public and Ongoing Georgia Management Private Sector Develop Water Local and Framework Directive Central (WFD) Region: Government, Implementation 2 1 GEO 59,802 Ongoing Georgia Public and Guidance Private Documents for Sector, CSOs Georgia Local and Piloting water Region: Central allocation modeling Mtskheta- Government, 1 1 ED 65,846 Ongoing using WEAP in the Mtianeti Public and Aragvi River Basin Region Private Sector, CSOs Development of Local and Region: Gauging Stations National Central In Mtskheta- Network in the 1 1 Environmental 24,040 Government, Procurement Mtianeti Boundaries of Aragvi Agency (NEA) Public and Process Region River Basin Private
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Sector, CSOs
Tax Capacity Building Enforcement Training for Small Knowledge and Business and Private 2 1 19,500 Tbilisi Completed Administration Associations and Experience Sector Reform SME’s on Tax Code Transfer Advocacy RIA on the Estonian Corporate Income Central Tax (CIT) Model 2 1 AYEG 27,650 Tbilisi Completed Government Implementation in Georgia Public and Tax Perception CRRC Tbilisi, 3 1 20,000 Private Completed Survey Georgia Regions Sector Existing Best Practice of Knowledge Public and Calculation of Natural and 1 1 22,350 Tbilisi Private Completed and Production Experience Sector Losses for Tax Transfer Purposes Central Tax Audit Practice Government, Survey and 8 1 AmCham 30,310 Tbilisi Public and Completed Assessment Private Sector Central Government, In Selection RIA on VAT 3 40,000 Tbilisi Public and Process Private Sector Crop Insurance Central Reform Government, RIA on Crop 3 1 ISET-PI 29,900 Tbilisi Public and Completed Insurance Private Sector
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Access to Establishment of a Finance Professional Central Orientation and Government, Tbilisi, Foundation Training 62,000 Public and RFA Issued Regions Program for Aspiring Private Certified Actuarial Sector Analysts State Government, Comprehensive Procurement CRRC Tbilisi, Public and Survey on State 3 1 39,010 Completed Reform Georgia Regions Private Procurement Sector State Procurement Government, Regional Trainings Tbilisi, Public and 50,000 RFA Issued and Awareness Regions Private Raising Sector Insolvency Central Association of Reform Government, Insolvency Reform Law firms of 2 1 37,249 Tbilisi Public and Completed Advocacy Campaign Georgia Private (ALFG) Sector Central Insolvency Office Government, In Selection Holders Capacity 2 44,869 Tbilisi Public and Process Development Private Sector Building Code Central Support in Georgian Government, Implementation of Tbilisi, 1 1 Institute of 97,928 Public and Completed Non-Structural Regions Building (GIB) Private Building Code Sector Innovations Elva Youth and Regional Youth and 2 1 Community 58,766 Regions youth Completed Innovation Events Technology Engagement organizations Central Innovation and Government, Tbilisi, Technology Sector 6 1 PMO 26,617 Public and Ongoing Regions Study Private Sector
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Pension Central Reform Government, RIA on Pension Tbilisi, 3 1 ISET-PI 44,875 Public and Completed Reform Regions Private Sector Customs and Association of Central Trade Facilitation Trade Reform Freight- Government, System (TFS) Public Tbilisi, 1 1 Forwarders of 31,175 Public and Completed Awareness and Regions Georgia Private Training (AFG) Sector Central Competitiveness Government, Analysis of the Georgia and 5 1 AFG 29,586 Public and Completed Caucasus Transit Azerbaijan Private Corridor (CTC) Sector
Total 120 38 1,885,608
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APPENDIX H: UTILIZATION OF EXPERTS FOR COST SAVINGS
Expert Topic Activity/Location Insolvency, Overview of Emerging Standards and Robert Gourley IBSU Practices
Roman Ladus RIA National Framework GIPA
Davit Gvenetadze RIA National Framework GIPA
Christian Gessl, Giulio Importance of Non Profit Organizations for Georgia New University Campana, Luc Hendrickx
Christian Gessl, Giulio Importance of NGOs and Business Associations for Gori State Teaching Campana, Luc Hendrickx Georgia University
Q&A session, G4G Kevin Latner International Trade office Camelia Bulat Leadership/Entrepreneurship IBSU Black Sea University, Milo Stevanovich Insolvency Caucasus University, G4G office
Caucasus University, Ilia Gogichaishvili Capital Markets G4G office Q&A session, G4G Bondo Bolkvadze DCFTA office Q&A session, G4G Tamuna Buadze Land Registration office
Kurt Dassel Innovation Deloitte (DC)
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Ryan Chilcote Journalism GIPA, Ilia St. Univ
Jake Delphia M-CEP Ilia St. Univ
Q&A session, G4G Nino Gogelashvili Effective Enforcement and Court Disputes Office
Q&A session, G4G Imeda Dvalidze Effective Enforcement and Court Disputes Office
Q&A session, G4G Tamuna Buadze State Procurement Office Q&A session, G4G Nino Lipartia State Procurement Office
Q&A session, G4G Ketevan Buadze State Procurement Office
Q&A session, G4G Nodar Kherkheulidze State Procurement Office
Q&A session, G4G Tamuna Buadze Land Registration Office
Q&A session, G4G Tamar Zarandia Land Registration Office
Q&A session, G4G Tamuna Buadze Insolvency Office
Q&A session, G4G Nina Amisulashvili Insolvency Office
Q&A session, G4G Nona Zubitashvili Corporate Responsibility Office
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Q&A session, G4G Mikheil Chelidze Corporate Responsibility Office
Q&A session, G4G Maia Daiauri Taxation/Tax Disputes Office
Q&A session, G4G Ketevan Buadze Taxation, Tax Disputes Office
Q&A session, G4G Nino Zhvania Market Regulations, Competition Law, Consumer Rights Office
Q&A session, G4G Tamar Lakerbaia Market Regulations, Competition Law, Consumer Rights Office
Q&A session, G4G Bondo Bolkvadze EU-Georgia AA, DCFTA Office
Q&A session, G4G Ketevan Buadze Capital Markets Office
Intern training, G4G Michael Martley Resume Development Office
Camelia Bulat Leadership and Advocacy Public lecture, GIPA
Camelia Bulat Leadership and Advocacy Public lecture, IBSU
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APPENDIX I: G4G ORGANIZATIONAL CHART
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APPENDIX J: GANT CHART
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USAID Governing for Growth (G4G) in Georgia Deloitte Consulting Overseas Projects LLP Address: 5 L. Mikeladze St, 0162, Tbilisi Phone: +995 322 240115 / 16
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