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GOVERNING FOR GROWTH (G4G) IN QUARTERLY REPORT JANUARY 01, 2015 – MARCH 31, 2015

15 April 2015 This report was produced by Deloitte Consulting LLP for review by the United States Agency for International Development. Its contents are the sole responsibility of Deloitte Consulting LLP and do not necessarily reflect the views of USAID or the United States Government.

GOVERNING FOR GROWTH (G4G) IN GEORGIA QUARTERLY REPORT JANUARY 01, 2015 – MARCH 31, 2015

USAID GOVERNING FOR GROWTH IN GEORGIA CONTRACT NUMBER: AID-114-C-14-00004 DELOITTE CONSULTING LLP USAID | CAUCASUS

15 APRIL 2015

DISCLAIMER: This report is made possible by the support of the American People through the United States Agency for International Development (USAID). The contents of this report are the sole responsibility of Deloitte Consulting LLP and do not necessarily reflect the views of USAID or the United States Government.

ACRONYMS

Acronym Definition/Description

AA Association Agreement

ADB Asian Development Bank

ADR Alternative Dispute Resolution

ACCESS Advancing CSO Capacities and Engaging Society for Sustainability

AmCham American Chamber of Commerce

AEO Authorized Economic Operator

BAG Business Association of Georgia

CENN Caucasus Environmental NGO Network

CIPE Center for International Private Enterprise

CSO Civil Society Organization

CzDA Czech Development Agency

CMWG Capital Markets Working Group

DAP Day Ahead Planning

DEA Data Exchange Agency

DCFTA Deep and Comprehensive Free Trade Area

EBRD European Bank for Reconstruction and Development

EDA Enterprise Development Agency

EC European Commission

EC-LEDS Enhancing Capacity for Low Emission Development Strategies

ENVSEC Environment and Security Initiative

EPI Economic Prosperity Initiative

ETM Electricity Trading Mechanism

EU European Union

GEMM Georgian Electricity Market Model

Geostat National Statistics Office of Georgia

GIA Georgian Insurance Association

USAID | Governing for Growth (G4G) in Georgia Quarterly Report i January 01 – March 31, 2015

Acronym Definition/Description

GIG Energy Georgian Investment Group

GIZ German Society for International Cooperation

GSMEA Georgian Small and Medium Entrepreneurship Association

GCCI Georgian Chamber of Commerce and Industry

GITA Georgian Innovation and Technology Agency

JILEP Judicial Independence and Legal Empowerment Project

HIPP Hydropower Investment Promotion Project

HPEP Hydro Power and Energy Planning Project

HPP Hydro Power Plant

ICC International Chamber of Commerce

ICT Information and Communications Technology

IDFI Institute for Development of Freedom of Information

INRMW Integrated Natural Resources Management in Watersheds

ISET International School of Economics at State University

IWRM Integrated Water Resources Management

OSCE Organization for Security and Cooperation in Europe

MARKAL Numerical model for country-wide economic analysis of energy-related systems

MENRP Ministry of Environmental and Natural Resources Protection

MoA Ministry of Agriculture

MoESD Ministry of Economy and Sustainable Development

MoF Ministry of Finance

MoJ Ministry of Justice

M-TAG Media for Transparent and Accountable Governance

NAPR National Agency for Public Registry

NARUC National Association of Regulatory Utility Commissioners

NGO Non-governmental Organization

PM Prime Minister

PMCG Policy and Management Consulting Group

USAID | Governing for Growth (G4G) in Georgia Quarterly Report ii January 01 – March 31, 2015

Acronym Definition/Description

PMP Performance Monitoring Plan

PPD Public-Private Dialogue

PR Public Relations

PSDA Public Service Development Agency

RFA Request for Applications

RS Revenue Service

RPTS Reform Progress Tracking System

RIA Regulatory Impact Assessment

SME Small and Medium Enterprise

SoW Scope of Work

TFS Trade Facilitation System

ToR Terms of Reference

TYNDP Ten Year Network Development Plan

UNDP United Nations Development Program

USDA United States Department of Agriculture

USAID United States Agency for International Development

USG United States Government

VAT Value Added Tax

VOLL Value of Loss Load

WB World Bank

WG Working Group

WP Work Plan

USAID | Governing for Growth (G4G) in Georgia Quarterly Report iii January 01 – March 31, 2015

CONTENTS

1.0 INTRODUCTION ...... 7

2.0 SUMMARY ...... 7

3.0 PROJECT HIGHLIGHTS DURING REPORTING QUARTER ...... 8

4.0 MANAGEMENT & OPERATIONS ...... 10 4.1 Work Planning ...... 10 4.2 Knowledge Management And Communication ...... 10 4.3 Procurement & Grants ...... 11 4.4 G4G Performance Monitoring plan ...... 11 4.5 Gender Equality ...... 11 4.6 Youth Skill Development And Civil Participation ...... 11 4.7 Environmental Evaluation ...... 12

5.0 PROGRESS OF ACTIVITIES BY REFORM ...... 12 5.1 INSTITUTIONALIZED FRAMEWORK FOR PUBLIC CONSULTATION ...... 12 5.1.1 Progress Against The Work Plan ...... 12 5.1.2 PPD Successes And Lessons Learned ...... 14 5.1.3 Challenges To Achieving Reform Results ...... 14 5.2 ENERGY STRATEGY REFORM ...... 14 5.2.1 Progress Against The Work Plan ...... 14 5.2.2 PPD Successes And Lessons Learned ...... 15 5.2.3 Challenges To Achieving Reform Results ...... 15 5.3 ELECTRICITY TRADING MECHANISM REFORM ...... 15 5.3.1 Progress Against The Work Plan ...... 15 5.3.2 PPD Successes And Lessons Learned ...... 17 5.3.3 Challenges To Achieving Reform Results ...... 17 5.4 WATER RESOURCE MANAGEMENT REFORM ...... 18 5.4.1 Progress Against The Work Plan ...... 18 5.4.2 PPD Successes And Lessons Learned ...... 19 5.4.3 Challenges To Achieving Reform Results ...... 20 5.5 TAX ENFORCEMENT AND ADMINISTRATION REFORM ...... 20 5.5.1 Progress Against The Work Plan ...... 20 5.5.1 PPD Successes And Lessons Learned ...... 21 5.5.2 Challenges To Achieving Reform Results ...... 21 5.6 CUSTOMS ADMINISTRATION AND ENFORCEMENT REFORM ...... 21 5.6.1 Progress Against The Work Plan ...... 21 5.6.2 PPD Successes And Lessons Learned ...... 22 5.6.3 Challenges To Achieving Reform Results ...... 22

USAID | Governing for Growth (G4G) in Georgia Quarterly Report iv January 01 – March 31, 2015

5.7 TRADE FACILITATION/TRANSPORT AND LOGISTICS REFORM ...... 22 5.7.1 Progress Against The Work Plan ...... 22 5.7.2 PPD Successes And Lessons Learned ...... 23 5.7.3 Challenges To Achieving Reform Results ...... 23 5.8 BANKRUPTCY AND LIQUIDATION REFORM ...... 23 5.8.1 Progress Against The Work Plan ...... 23 5.8.2 PPD Successes And Lessons Learned ...... 24 5.8.3 Challenges To Achieving Reform Results Ministry of Justice ...... 24 5.9 LAND OWNERSHIP REGISTRATION REFORM ...... 24 5.9.1 Progress Against The Work Plan ...... 24 5.9.2 PPD Successes And Lessons Learned ...... 25 5.9.3 Challenges To Achieving Reform Results ...... 25 5.10 PENSION REFORM ...... 25 5.10.1 Progress Against The Work Plan ...... 25 5.10.2 PPD Successes And Lessons Learned ...... 25 5.10.3 Challenges To Achieving Reform Results ...... 25 5.11 CAPITAL MARKET REFORM ...... 25 5.11.1 Progress Against The Work Plan ...... 25 5.11.2 PPD Successes And Lessons Learned ...... 26 5.11.3 Challenges To Achieving Reform Results ...... 26 5.12 CROP INSURANCE REFORM ...... 26 5.12.1 Progress Against The Work Plan ...... 26 5.12.2 PPD Successes And Lessons Learned ...... 27 5.12.3 Challenges To Achieving Reform Results ...... 27 5.13 INNOVATION AND TECHNOLOGY POLICY ...... 27 5.13.1 Progress Against The Work Plan ...... 27 5.13.2 PPD Successes And Lessons Learned ...... 27 5.13.3 Challenges To Achieving Reform Results ...... 28

6.0 WORK PLAN OUTPUTS TABLE ...... 29

ANNEX 1: PMP INDICATORS QUARTERLY RESULTS ...... 49

ANNEX 2: DONOR COORDINATION MATRIX ...... 59

ANNEX 3: UTILIZATION OF USG PERSONNEL AND COLLABORATION WITH OTHER DONOR-FUNDED PROJECTS ...... 64 Collaboration with Other USG Personnel ...... 64 Collaboration with Other USAID Projects ...... 64 Collaboration with Other Donor-Funded Projects ...... 64

ANNEX 4: UTILIZATION OF INTERNS ...... 66

ANNEX 5: G4G ADVISORS UTILIZED IN GOG INSTITUTIONS ...... 67

USAID | Governing for Growth (G4G) in Georgia Quarterly Report v January 01 – March 31, 2015

ANNEX 6: UTILIZATION OF PRIVATE SECTOR AND CIVIL SOCIETY ORGANIZATIONS ...... 68

ANNEX 7: SUMMARY OF GRANT ACTIVITIES ...... 71

ANNEX 8: GANTT CHARTS ...... 73

ANNEX 9: G4G ORGANIZATIONAL CHART ...... 93

USAID | Governing for Growth (G4G) in Georgia Quarterly Report vi January 01 – March 31, 2015

1.0 INTRODUCTION Governing for Growth (G4G) in Georgia is USAID’s five-year 19.3 million US dollar project designed to support the Government of Georgia (GoG) to create an improved enabling environment in which legal and regulatory reforms are fairly and transparently conceived, implemented and enforced through consultative dialogue. G4G aims to enhance governance in select business enabling areas:  Tax and customs administration  Electricity trading policy, including cross-border trading  Water resource management  Trade facilitation  Land registration  Other reform areas as identified during implementation of the Project. The G4G approach is through the promotion of constructive Public-Private Dialogue (PPD) to support the effective formulation of the government polices necessary to drive economic development. This requires strengthening of the governmental institutional capacity to develop, implement, and enforce reforms, and strengthening the capacity of private sector and civil society actors to effectively engage the government on the development, implementation, and enforcement of reforms. G4G is implemented through five main components: 1. Support inclusive public-private dialogue; 2. Strengthen GoG capacity to develop, implement and enforce reforms; 3. Improve water resource management across multiple competing interests; 4. Improve governance of energy trading policy, including cross-border electricity trading; 5. Strengthen the capacity of private sector and civil society actors to advocate for reforms. Reflective of G4G’s approach and the cross-cutting nature of Components 1, 2 and 5, this Quarterly Report is organized according to the format of the work plan which is presented by specific substantive area of reform. Within each reform, activities are organized by component. This structure permits a view of activities focused on a given reform area, seen in the context of a project-wide effort. 2.0 SUMMARY This second Quarterly Report documents the results and progress made by the USAID Governing for Growth (G4G) in Georgia project over the period January 01 – March 31, 2015. The G4G project has emerged from the first quarter start-up phase, and has gained considerable momentum towards goals articulated in the Year 1 Work Plan. Successful project activities cover a broad and diverse range of areas: from the organization of Georgian electricity market players to engage in a unified, focused dialogue with the Government of Georgia (GoG), to technical assistance for the completion of a draft Law on Pilot Registration of Land Titles and Improvement of Cadastral Data,” now squarely on the path toward enactment; from the development of an innovative PPD Quality Tracking Mechanism, to delivering a conference on “Women’s Role in Economic Growth and Policy Development,” attended by up to 170. This Quarterly Report details the progress in each area in reference to corresponding areas of the G4G Year 1 Work Plan. Moreover, a substantial amount of project activity was vested in the preparation of grants. Approximately 20 grant solicitations for a combined $500,000 in proposed grant programs are in the process of preparation, on track with year 1 estimates. In sum, the G4G project is substantially on track. Moreover, G4G is on track in the areas of:  Cost control  Business relations  Schedule

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 7 January 01 – March 31, 2015

. 3.0 PROJECT HIGHLIGHTS DURING REPORTING QUARTER This second Quarterly Report is saturated with highlights, especially those related support for public- private dialogue (PPD). Below is a summary of highlighted results: Foreign Land Ownership Conference stimulates dialogue across constituencies. G4G, together with ISET (International School of Economics at ) Policy Institute, organized an open public discussion of the proposed Foreign Land Ownership Law Amendments on February 13, 2015. An eleven member panel representing a broad cross-section of parties debated amendments to the controversial law that limits land ownership by foreigners. Over 120 guests attended the event, including experts, students, farmers, investors and government officials. Above: 11-member panel representing a broad cross-section of Panelists included Chairman of the Agrarian parties Committee of Parliament, Deputy Minister of Agriculture, European Union (EU) Delegation Attaché for Agriculture, Executive Director of American Chamber of Commerce (AmCham), as well as other representatives from NGOs, foreign investors and businesses. Georgian broadcasting and printed media broadly represented at the event expressed great interest in the land ownership issues, and covered them extensively through media outlets in the following week. Above: Foreign Land Ownership Conference participants Private market players speak to GoG with a unified voice. On January 29, 2015, G4G organized the second workshop for Georgian Electricity Market Players to identify common issues in electricity market development in preparation for a public-private dialogue discussion with the Government of Georgia (GoG). Over 20 private hydropower plant (HPP) owners and developers, interested in electricity trading and/or investing in Georgian hydropower, attended. Participants expressed their interest in establishing a professional association of market players and requested G4G support in this process. “G4G support to facilitate cooperation between the private market players is instrumental for resolving the issues of our common concern,” noted Paata Tsintsadze, director of a hydropower development company “Georgian Investment Group (GIG) Energy.” Small Hydropower plants consolidate to trade electricity. Creation of a Small Hydropower Plants (SHPP) Consolidator was the main topic of discussion at G4G’s first energy related public-private dialogue attended by the Ministry of Energy (MoE), Georgian State Electrosystem (GSE), Electricity System Commercial Operator (ESCO), State Security, Crisis Management Council of Georgia, and key private energy market players including a number of SHPPs convened to explore the benefits of establishment of a SHPP Consolidator. Discussions facilitated by G4G experts resulted in the acknowledgement of the need of a Consolidator, as it will serve as a platform for SHPPs for getting access to the Above: Aragvi HPP representatives at G4G PPD Turkish electricity market and trade more effectively. “G4G’s on SHPP Consolidator initiative to organize such dialogues will benefit us greatly as

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 8 January 01 – March 31, 2015 private HPP owners,” noted Taras Nizharadze, Director of Aragvi HPP. “We have to prepare for competitive electricity market.” Cooperation yields results on Land Registration. G4G conducted an offsite workshop for Georgian National Agency of Public Registry (NAPR) to discuss the first draft of the Law on Pilot Registration of Land Titles and Improvement of Cadastral Data. The workshop was attended by the Chairman of NAPR and Heads of NAPR Registration, Geodesy & Cadastral, Data Processing, PR and Legal Departments and G4G contractor Transparency International (TI) representatives. Consensus was reached on solutions to the procedural and Above: G4G Offsite Workshop with NAPR and TI regulatory issues that currently hinder land title registration. “This is the best example of successful collaboration and effective partnership between the GoG and civil society in policy reform development process,” stated NAPR Chairman. PPD changes government’s crop Insurance policy. On February 10, 2015 G4G facilitated a dialogue between the Georgian government, the Agrarian Committee of Parliament, private sector and civil society representatives to resolve crop insurance challenges and set policy. The session led Mr. Gigla Agulashvili, Chairman of Parliament’s Agrarian Committee, included the Ministry of Agriculture (MoAg), Agrarian Committee, insurance companies and farmers’ organizations. Discussions covered the results of the 2014 pilot crop insurance project implemented by the MoAg, as well as status of the draft Law on crop insurance. The pilot project Above: Gigla Agulashvili, Chairman of Parliament’s benefitted farmers and insurance companies alike, as Agrarian Committee addressing Conference participants farmers received over 10 million Lari to cover hazards. Following to the PPD meeting, on February 19, the Government of Georgia approved the 2015 Agricultural Insurance Program. According to the Minister of Agriculture, the new program was adjusted to accommodate recommendations received from different stakeholders at the G4G conference, such as, increased celling of insurable grain farm from 5 ha to 15 ha. Deputy Minister promotes DCFTA through regions. On March 23-24, together with the Ministry of Economy and Sustainable Development of Georgia (MoESD) G4G conducted PPD events in Ozurgeti and Poti to discuss the requirements under EU Comprehensive Free Trade Area (DCFTA) with private sector representatives. Speaker panel was represented by the Deputy Minister of Economy and Sustainable Development of Georgia, Head of European Harmonization Division, Head of Agricultural Projects Management Agency, and the Mayor of Ozurgeti Municipality. Deputy Minister emphasized the importance of DCFTA for the economic development of the regions as it opens European markets for Georgian products and services. The meetings were attended by 75 representatives of local businesses and NGOs in Above: DCFTA awareness meeting in Ozurgeti both municipalities.

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 9 January 01 – March 31, 2015

Women leaders inspire other to change perspectives. On March 31, jointly with Georgian Women Business Association (GWBA), G4G organized a conference “Women’s Role in Economic Growth and Policy Development” aimed at empowering women to take part in economic development of the state. About 170 women from different professional spheres heard, first hand, the stories of accomplished Georgian women who have traversed obstacles in order to succeed. This conference honored the role that women around the world play in the development and healthy functioning of their societies. The market exhibition of

Above: Women Conference participants the products and services produced by successful women entrepreneurs and the charity auction, organized after the conference by GWBA, greatly encouraged the businesswomen. The conference was broadly covered by Georgian media.

Multiproject coordination effort. G4G initiated a Above: Above: Successful entrepreneur Anna Mikadze- multiproject coordination strengthening effort to better Chikvaidze sharing her story of Cheese Business leverage USAID resources in achieving reform results. During the reporting period G4G convened two meetings of USAID project representatives where potential areas of collaboration were explored and joint measures identified, particularly, in gender, youth and grant related activities which are common for almost all USAID projects. It was agreed to hold coordination meetings on a regular, bimonthly basis. “By coming together in multi-project coordination meetings each and every partner will save time avoiding the need for series of bilateral interaction,” said Milo Stevanovich, G4G COP. “This will reduce the likelihood of any duplication of efforts.” 4.0 MANAGEMENT & OPERATIONS 4.1 WORK PLANNING G4G uses the quarterly report to add or revise upcoming activities during Year 1. These adjustments will be made in consultation with USAID during scheduled meetings, and new (or cancelled) activities will be added to the work plan in each G4G Quarterly Report. 4.2 KNOWLEDGE MANAGEMENT AND COMMUNICATION Over the past quarter, G4G continued to implement activities outlined in its Knowledge Management (KM) Plan, including regular weekly reports to USAID, press releases to engage the media in G4G’s activities; the project continues developing success stories, and already issued the first quarterly newsletter that reached all project constituents (170 contact persons). G4G continues to regularly update the project's Facebook page, primarily focused on outreach, and engagement with project constituents, journalists and youth. Table 1: Year 4 Outputs, Communication

OUTPUTS STATUS

KM Plan Completed

G4G Profile Brochure Completed

Weekly, quarterly and annual reporting In progress

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 10 January 01 – March 31, 2015

OUTPUTS STATUS

Quarterly newsletters issued In progress (first newsletter issued)

Press releases developed and issued In progress

Case studies and success stories In progress

Event briefing reports (Event memos) In progress

USAID DEC report submission of approved deliverables on weekly In progress basis

Use of social media tool (Facebook) In progress

4.3 PROCUREMENT & GRANTS G4G Grants Manual was approved in February, 2015. G4G started to develop SoWs for upcoming grants projects to implement in Year 1. Currently, five Requests for Applications (RFAs) are announced in public and are expected to start implementation in May 01. Seven RFAs are ready to be announced in this reporting period. The summary of grant activities is provided in this quarterly report (see Annex 7). As part of its procurements, Deloitte secures financial and programmatic buy-in from stakeholders and counterparts to leverage its funds and ensure beneficiaries have a stake in achieving results. To date, USD 5824 of Project procurement have been allocated toward events and other activities, and generated an additional USD 4760 in contributions by Project stakeholders and beneficiaries. 4.4 G4G PERFORMANCE MONITORING PLAN G4G is submitting required GIS compatible information about the project activities to USAID along with the quarterly reports. The project will fill out the “Project General and Activity Data Template” and submit to the USAID/Caucasus Program Office in the next reporting period. Table 2: Year 1 Outputs, Performance Monitoring Plan

OUTPUTS STATUS

Semi-annual GIS Reporting In progress

Semi-annual PMP Reporting In progress

4.5 GENDER EQUALITY G4G mapped gender organizations and finished designing the women empowerment program which will build capacity of women leaders to effectively participate in economic governance and national PPD. Jointly with the Georgian Women Business Association, G4G conducted a conference: “Women’s Role in Economic Growth and Policy Development”. (See section 5.1.1). 4.6 YOUTH SKILL DEVELOPMENT AND CIVIL PARTICIPATION G4G mobilized internship program within G4G for university students to build their professional skills and capacity to participate in G4G supported reform process, including policy reform formulation, advocacy and public-private dialogue. Also, during the reporting period G4G mapped the youth organizations and designed youth program to build the students’ capacity to effectively advocate for reforms (see section 5.1.1).

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 11 January 01 – March 31, 2015

4.7 ENVIRONMENTAL EVALUATION The environmental threshold finding for the G4G program (the Initial Environmental Examination [IEE]1, DCN: 2013-GEO-053) evaluates current and future activities under G4G program and states that the proposed interventions of the G4G program will not have significant adverse environmental and social impacts. Hence, G4G program received Categorical Exclusion Determination according to approved IEE. No activities with significant negative environmental and social impact were implemented during this rating period. In order to identify potential adverse environmental effects associated with planned activity(s) and processes, G4G developed the Threshold Environmental Checklist and Review (TECR) template and agreed it with USAID. The TECR were developed for all activities being implemented by G4G and attached to the final deliverables (in total 7 TECR forms were developed and provided to the USAID). 5.0 PROGRESS OF ACTIVITIES BY REFORM 5.1 INSTITUTIONALIZED FRAMEWORK FOR PUBLIC CONSULTATION

Sustainable institutionalized dialogue platform to improve the quality of all legislations; REFORM OBJECTIVE emergence of a culture of collaborative consultation (CCC).

5.1.1 PROGRESS AGAINST THE WORK PLAN

SUPPORT PUBLIC PRIVATE DIALOGUE Support National PPD platform. EBRD Georgia agreed with the Prime Minister’s (PM) office to build a high-level public private policy dialogue (PPD) platform comprised of formal members representing government, business and donor community. The new collaborative body will work to improve the business environment in Georgia. According to the initial proposal, the government will be represented by the Office of the Prime Minister and four key ministries on a permanent basis (Ministry of Finance, Ministry of Economy and Sustainable Development, Ministry of Agriculture, Ministry of Energy) and, other additional ministries on an ad hoc basis according to the subject of the reform. The business community will be represented by major business associations (including AmCham, Georgian Chamber of Commerce and Industry (GCCI), EU Georgia Business Council, and Business Association of Georgia (BAG)), European Bank for Reconstruction and Development (EBRD), World Bank (WB) and International Finance Corporation (IFC) will be presenting the donor community. To facilitate communications and coordinate interactions between the various parties, EBRD will create a secretariat and recruit its head in late May. G4G will collaborate with EBRD by delivering a high level consulting service and added value to the overall working of the PPD platform. As agreed, G4G will work closely with the PPD platform by providing analysis expertise on G4G specific areas. As described above, in project highlights, G4G organized a number of PPD events:  February 13 - an open discussion on the proposed amendments to the Foreign Land Ownership Law at Expo Georgia in collaboration with ISET Policy Institute;  February 10 – Conference on Challenges and Perspectives of Crop Insurance in Georgia in collaboration with Agrarian Committee of the Parliament;  March 11 - PPD on creation of a SHPPs Consolidator and other competitive electricity market issues;  March 23 - DCFTA awareness PPD event in Ozurgeti and Poti in collaboration MoESD. Develop Reform Progress Tracking System (RPTS). During the reporting period, G4G has researched the existing successful reform monitoring mechanisms, including mechanisms used in mature public sector reform environments, and based on findings, developed the SoW for the RPTS design and development grant, initiated a separate SoW for development and implementation of the PPD activities measurement system. G4G also engaged with public sector, civil society and business community counterparts to

1 The Initial Environmental Examination (IEE) is the document prepared by USAID and represents the initial screening of G4G program activities. IEEs establish mandatory environmental “conditions” [mitigation actions] that must be fulfilled during project or activity implementation to protect the environment and human health and welfare. The Initial Environmental Examination (IEE) for the G4G program was drafted and approved by the Europe and Eurasia Bureau Environmental Officer (BEO) on July 9, 2013 (DCN: 2013-GEO-053).

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 12 January 01 – March 31, 2015 socialize and refine the scope of the tracking system in frames of consultative meetings. During the next quarter, G4G will tender the activity to identify civil society institutions with the capacity, mission and sustainable interest in serving as a long-term institutional “home” for both, reforms tracking and PPD measurement systems.

GOG CAPACITY STRENGTHENING Support National Regulatory Impact Assessment (RIA) Framework. During the reporting period G4G conducted a number of fact-finding meetings to assess the status quo on RIA and design its targeted interventions. In February, G4G held a meeting with Lali Gogoberidze, Head of Economic Analysis and Policy Department of Ministry of Economy and Sustainable Development of Georgia (MoESD). G4G and MoESD discussed issues related to institutionalization of RIA process in Georgia. MoESD suggested preparing a concept note for implementation of RIA Systems in Georgia, which would include features, such as, description of the RIA process, definitions of the stakeholder roles and responsibilities, criteria to identify regulations subject to RIA, and RIA methodologies. G4G was requested to provide international expertise and advisory support in designing the concept. Understanding that any effort related to creating the RIA national platform should be coordinated at GoG level, G4G conducted additional consultations with the PM’s Office. Namely, on March 16, G4G met with Ana Gvenetadze, Head of the Governmental Planning and Innovation Service, and Nino Turmanidze, Head of the Department on Liaison with the Parliament and President at PM’s Office. Ms. Gvenetadze discussed the Policy Note, the procedural document being drafted by PM’s Office which regulates the policy-making process within the GoG and introduces high level aspects of RIA. The document is planned to be endorsed in May, 2015. It was agreed that once the Policy Note is adopted, G4G will follow up with advisory support on the RIA national institutional framework and methodology. PRIVATE SECTOR & CIVIL SOCIETY ORGANIZATIONS STRENGTHENING G4G developed stakeholder maps of Civil Society Organizations (CSOs) including gender, youth and media to expand opportunities for them to meaningfully participate in policy decision making process. Mapping will help G4G to form Working Groups (WG) to supervise the consultation process. To identify collaboration gaps in the policy-making process, G4G announced a grant for a Georgian NGO/think tank to analyze governance practices and processes in G4G targeted sectors. G4G considers that this analysis will define the importance of different institutional factors and assist NGOs, GoG, and other stakeholders to assess their collaborative governance capacity. During the 2nd Quarter G4G continued meetings with AmCham, ICC, GCCI, ISET Policy Institute, Georgian Small and Medium Enterprise Association (GSMEA), the Institute for Development of Freedom of Information (IDFI), as well as other USAID projects, such as Advancing CSO Capacities and Engaging Society for Sustainability (ACCESS) to socialize G4G goals and build the foundation for more significant engagement. Engage Media in the National PPD. G4G works to build capacity of local media outlets to more effectively promote social and economic development programs in the country. In collaboration with PMCG, G4G will design a program to educate media professionals on economic reforms and economic policy issues through informational seminars, training programs, as well as practical field study tours, to provide them with appropriate knowledge on G4G target reforms and facilitate their involvement in public- private dialogues. During the reporting period, G4G started to work on issuing a grant for conducting a study on constraints of economic journalism in Georgia. The assessment will help G4G to design a comprehensive program in order to improve the economic reporting on G4G target areas, break the barriers between journalism and technical fields, and improve access to institutional information for media professionals. PPDs organized by G4G generated high interest among media professionals. For instance, high interest in the foreign land ownership rights issue propelled Georgian media outlets to actively promote the topic not only on the day of the event but in the following week. 14 Journalists from 10 media outlets covered the issue with 36 minutes of prime time media coverage and several newspaper articles. The event helped journalists to raise awareness about land ownership issues and ask the reasonable questions. Engage Women in the National PPD. During the quarter G4G conducted a number of gender related activities. The project mapped local gender organizations and finalized the SoW for the women leadership program aimed at strengthening women’s capacity in leadership that includes business planning, effective management, communication, etc. The RFA will be issued in April and the program will commence in May.

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 13 January 01 – March 31, 2015

In addition, on March 31, G4G in cooperation with the Georgian Women Business Association (GWBA) conducted the conference “Women’s Role in Economic Growth and Policy Development.” The conference, the first of its kind in Georgia, focused entirely on strengthening women’s leadership in the policy making process on economic growth. Among those who shared their knowledge and experience with the conference participants were: Ketevan Bochorishvili, the Deputy Minister of Economy, Mariam Valishvili, the Deputy Minister of Energy, and other distinguished women leaders. The conference was attended by approximately 170 women and was followed by the market exhibition of Georgian women entrepreneurs and a live charity auction organized by GWBA. Engage Youth in the National PPD. Similar to women leadership program, G4G finalized the SoW for youth governance program aimed at building the students’ capacity to effectively advocate for reforms. The RFA will be issued in April and the program will start in May. In addition, G4G mapped the youth organizations; the deliverable was approved by USAID in March. Association Management Workshop for Georgian Business Associations G4G has been working to organize a three-day capacity building workshop for business associations to be conducted in April 2015. The workshop will focus on membership, services, and advocacy. Specifically, the CIPE consultant, Ms. Camelia Bulat, will conduct the workshop to build the capacity of Georgian business associations to (i) advocate effectively for economic reforms identified under G4G; (ii) develop their membership bases; and (iii) provide quality services to members and constituents. The workshop targets the executive staff of the selected business associations. 5.1.2 PPD SUCCESSES AND LESSONS LEARNED GoG lacks capacity to properly communicate with the stakeholders in the PPD process. Therefore, G4G has been assisting GoG in identifying the key issues, areas and actors, as well as in crafting appropriate messages and selecting communication campaign tools. One example is the communication strategy developed by G4G for NAPR on land registration pilot. Other examples include assistance to GoG in outreach and messaging to business and civil society in diverse areas such as Energy (market players and public), Water, DCFTA, Tax Administration, Customs and Trade Facilitation. PPD in all these areas serve to build GoG confidence and trust in the process of conducting the dialogue, which establishes a stronger foundation for the conduct of future PPD efforts and acceptance of PPD as a normal, natural part of the reform development process. 5.1.3 CHALLENGES TO ACHIEVING REFORM RESULTS The challenge for Foreign Land Ownership PPD event was that the authors of the amendments (Ministry of Justice, Ministry of Economy and Sustainable Development) did not participate in the event; hence several questions related to the amendments to the law were left unanswered. Even though the topic galvanized high involvement of the foreign investors into the debates of the controversial law that limits land ownership by foreigners; no changes to the draft law have been made to date. G4G assists the MoESD in conducting PPD events related to DCFTA awareness throughout Georgia. The second and the third events were conducted in Ozurgeti and Poti. The events in the regions showed that the local business audience lacks the knowledge of the subject. 5.2 ENERGY STRATEGY REFORM

Coherent Strategy that leads to the effective, economically justifiable and sustainable REFORM OBJECTIVE energy production, delivery and consumption consistent with environmental requirements.

5.2.1 PROGRESS AGAINST THE WORK PLAN SUPPORT PUBLIC PRIVATE DIALOGUE G4G has conducted initial discussions with the Ministry of Energy (MoE) regarding PPD events involving CSOs and private companies. G4G is planning to support MoE to conduct PPD events on the draft Energy Strategy. GOG CAPACITY STRENGTHENING The G4G energy team developed a draft scope of work for the survey that includes energy and water use, development of customer category load shapes and issues related to the “Value of Loss Load” (VOLL). The VOLL will indicate a value that consumers place upon electricity lost due to power outages and is commonly used by energy regulators in evaluating individual investment programs proposed by

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 14 January 01 – March 31, 2015 transmission and distribution network operators. This data will be used in the process of energy strategy development. The G4G energy team together with MoESD initiated discussion on the national electricity demand forecast and elasticity related to GDP and electricity consumption. The absence of analytical tools and capacity to forecast energy demand is a challenge for the MoESD. Currently, GoG decisions on energy infrastructure investments leading to additional state liabilities are based on calculations of rough forecasts of energy demand. The aim of the MoESD is to build internal analytical capacity to address this issue. G4G will assist the MoESD in the following areas: forecasting of energy/electricity customer demand, long term electricity system planning, financial analysis of the Ten Year Network Development Plan (TYNDP), cumulative effects of hydropower development (economic, financial and environmental) and rules related to new connections to the transmission lines. G4G in cooperation with Analytical Department (AD) of the MoE worked on the development of energy planning scenarios for the MARKAL Georgia Model. The AD shared the latest version of the Business-as- Usual (BAU) assumptions of the model and G4G’s expert started analyzing the files. The final version of the assumptions will be provided in April and the G4G team will start delivering projections on economic growth and its potential impact on energy demand for various energy consumers. PRIVATE SECTOR & CIVIL SOCIETY ORGANIZATIONS STRENGTHENING No specific activities were implemented within the reporting period. 5.2.2 PPD SUCCESSES AND LESSONS LEARNED None at present. Planned activities are in progress. 5.2.3 CHALLENGES TO ACHIEVING REFORM RESULTS The MoE created an additional WG for Energy Strategy Development to discuss energy supply security issues. This is a closed WG comprised of representatives from MoE and other state owned energy companies only, which unfortunately omits private sector and civil society voices from the discussion at this stage. As energy security is becoming an increasingly important part of the strategy, all relevant stakeholders should be involved in discussions. While the MoE is G4G’s primary energy counterpart, energy as a policy area crosses a number of boundaries and ministry portfolios. Disagreements between ministries are not uncommon, and they have the potential to delay or distract the strategy development process. Despite the attention historically given to hydroelectric and other energy sources in Georgia, there is a surprising lack of hard data or substantive analysis in the sector. For example, there has been no formal study on the potential for alternative renewable energy resources. G4G progress on Energy Strategy reform greatly depends on MoE’s schedule of completing draft Energy Strategy paper. 5.3 ELECTRICITY TRADING MECHANISM REFORM

Effective ETM to enable Foreign Direct Investment (FDI) necessary for development of REFORM OBJECTIVE hydropower plants which are vital for clean and low cost energy for Georgia.

5.3.1 PROGRESS AGAINST THE WORK PLAN SUPPORT PUBLIC PRIVATE DIALOGUE On March 11, G4G organized a PPD event between Energy Market Players (MPs) and GoG representatives (MoE, State Security and Crisis Management Council of Georgia, Georgian State Electrosystem (GSE) and Electricity System Commercial Operator (ESCO)). The main topics of discussion included: initiative of small power producers to consolidate in order to effectively trade in the Turkish electricity market; GoG’s activities on implementation of ETM; and the MPs involvement in the process. Representatives of GSE explained the benefits of the ETM and presented the new web-based software to the MPs. Using modern IT technologies will improve MPs’ ability to trade in competitive markets and forecast their next day electricity trades. The PPD participants requested G4G’s support in organizing regular meetings on the ETM. At the request of the event participants, G4G will continue to provide assistance in holding additional meetings of the representatives of the Small Hydro Power Plants (SHPP) to discuss further activities related to the establishment of the small hydro Consolidator and possible future cooperation.

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 15 January 01 – March 31, 2015

ENERGY (ELECTRICITY) TRADING POLICY GOVERNANCE ETM Capacity Building. During the reporting period G4G actively supported the MoE, ESCO, GSE and the Georgian National Energy and Water Supply Regulatory Commission (GNERC) in assessment of the future market model and detailed steps towards ETM implementation. G4G has been drafting a paper on “Concepts to Be Considered in Development of the ETM.” The objective of the paper is to build consensus between stakeholders on initiating competitive electricity trading within Georgia, establish responsibilities and deadlines and monitor progress against implementation milestones. The concept paper includes the introduction of hourly trading and settlement, balancing market, day ahead market ancillary services market, clearing mechanism, electricity traders and gradual retail electricity market opening. On March 27th, the Government of Georgia and the Government of Turkey signed the “Agreement Concerning the Cooperation in the Field of Energy.” The agreement was supported by USAID and it is compliant to GEMM 2015. The Agreement covers the following issues:  To repay the electricity supplied historically by Turkey to Georgia;  To develop jointly an action plan for energy infrastructure projects until the end of year 2016;  To develop a relevant framework for yearly, monthly and daily interconnection auctions;  To approve the mutually agreed long-term network development plan until the end of 2016;  To use ENTSO-E best practices for all capacity allocation and congestion management activities;  To sign the agreement for constructing the Akhaltsikhe, Georgia to Tortum, Turkey transmission line no later than 2016;  To support jointly implementation of Batumi-Muratli transmission;  Turkey to support Georgia to join ENTSO-E, if Georgia decides so. Ministry of Energy (MoE) At the end of 2014, MoE created an electricity sector WG to resolve differing opinions between stakeholders on the future electricity market design. Strong differing opinions still remain within the WG raising concerns that movement toward implementing the ETM will result in increased retail electricity tariffs and significant negative impact on some of the market players. In order to resolve the differences in opinion on the impacts on retail tariffs and to individual MPs from a transition to a competitive electricity market in Georgia, the WG has requested USAID’s assistance to the WG to fully analyze these impacts. The first request by the WG is to develop market simulation software for completing the analysis. During the reporting period, G4G has finalized a draft Scope of Work (SoW) for the simulation software and proceeded with the procurement process. The SoW was developed through intensive discussions with the main stakeholders and energy sector experts. Development of the simulation software should be completed by July, 2015. Georgian State Electrosystem (GSE) G4G developed recommendations for GSE on improvement of TYNDP by illustrating the best international practices and providing practical recommendations taking into consideration Georgia’s specific requirements. Those recommendations were provided in a report finalized in this quarter. G4G also developed a report on Interconnection Capacity Allocations and Congestion Management for GSE. The report includes concepts to be considered for development of cross-border electricity trade and interconnection capacity auctioning. G4G organized a meeting between GSE and the Georgian Stock Exchange. The purpose of the meeting was to discuss options for the introduction of a market clearing mechanism. During the meeting, similarities and differences between securities and electricity trading processes were identified. The Georgian Stock Exchange expressed its interest to become a clearing house and participate in the development of Electricity Day Ahead Market (DAM). G4G held two workshops with the Georgian Stock Exchange on competitive electricity markets and the ETM. On March 25th, G4G participated in joint harmonization meetings between GSE and Turkish Transmission System Operator – TEIAS. Topics covered during the meeting: Connection of Turkish Power System to European Transmission System, harmonization of the Turkish and Georgian Grid Codes Turkish Electricity Market development, perspective of development of the joint TYNDP between Turkey and Georgia.

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 16 January 01 – March 31, 2015

Georgian National Energy and Water Supply Regulatory Commission (GNERC) During reporting period, G4G held a number of meetings with GNERC to discuss recent developments in the ETM implementation. GNERC is currently developing the pricing methodology for new connections to the electricity transmission and distribution networks, and rules for monitoring of cross-border capacity auctioning and trading. G4G was asked to support GNERC and conduct workshops on best international practices of the connection process, tariffs and associated monitoring. On February 24 and March 24, G4G conducted workshops on “Network Connection Pricing Methodology and Monitoring” at GNERC. The workshops covered issues related to electricity network connection policy and rules, connection tariffs, template connection agreements and monitoring for connections. Key issues were also identified to be addressed at the next workshops. G4G will continue to support GNERC capacity building on network connections and market monitoring areas in the next quarter. Electricity System Commercial Operator (ESCO) G4G held several meetings with ESCO to discuss the next steps in ETM implementation, transformation of ESCO to Electricity Market Operator (MO) and the roles and responsibilities of MO in the competitive electricity market. G4G shared the proposed electricity market structure with ESCO and identified critical issues (market opening, clearing, protection of vulnerable customers, cross-border trading, etc.) to be addressed. Based on further discussions, ESCO and G4G agreed on general concept of future market structure. More details will be discussed during the third quarter. PRIVATE SECTOR & CIVIL SOCIETY ORGANIZATIONS STRENGTHENING Promotion of Energy Sector Associations On January 29, 2015, based on preliminary discussions with electricity private sector stakeholders, G4G conducted a second workshop for electricity MPs (electricity business representatives). At this workshop, participants prioritized electricity market issues of common concern and formed a WG. MPs agreed to hold a third workshop to develop recommendations on possible solutions to the issues identified for PPD discussion with the MoE. The third workshop is planned for April 2, 2015. The possible creation of a professional association of MPs was discussed during the workshop to achieve better coordination between different MPs. One of the MPs - Director of GIG Energy, suggested the establishment of the Market Players Professional Association, and asked for G4G support in this process. The managing directors of Schulze Global Investments and GIG Energy expressed their appreciation for USAID/G4G assistance. On February 17, TBC Bank, with the support of G4G and MoE, held an energy conference ‘Challenges and Developments in Hydropower Sector.’ The goal of the conference was to discuss the challenges and future development opportunities of Georgia’s energy sector. It also aimed at sharing the experiences between the members of the Government, major MPs of the sector and field specialists. The conference was attended by over 100 attendees. G4G developed a presentation on the ETM that USAID delivered during the conference. On February 10, G4G held a meeting with International Finance Corporation (IFC) energy advisors, as the IFC is currently developing an Energy Sector Report for Georgia. G4G provided information and materials on recent developments and challenges in the energy sector as an input. 5.3.2 PPD SUCCESSES AND LESSONS LEARNED On March 11, G4G energy team held its first PPD event which concerned creation of a SHPP Consolidator and finding common grounds between GoG and private stakeholders about major electricity trading issues. Event participants requested G4G assistance in organizing additional discussions on establishment of the Consolidator and possible future cooperation. It was agreed that special trainings on electricity trading issues for market players and GoG organizations will foster development of competitive electricity market. “More meetings like this will help us to accelerate implementation of electricity trading mechanism”, said member of GSE Board of Directors, Zurab Ezugbaia. 5.3.3 CHALLENGES TO ACHIEVING REFORM RESULTS There are different approaches proposed by ESCO and GSE concerning the ETM implementation, the ETM’s impact on electricity retail tariffs and their respective roles in providing electricity market services. G4G is engaging with both entities and targeted capacity development is focused on their respective missions. Should the two organizations be unable to clearly define and undertake their roles, it will present challenges to the successful implementation of this reform. The MoE holds the key role in resolving this issue.

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 17 January 01 – March 31, 2015

5.4 WATER RESOURCE MANAGEMENT REFORM

Equitable transparent sustainable allocation of fresh water resources across multiple REFORM OBJECTIVE competing interests is necessary to prevent grave failure to serve legitimate needs.

5.4.1 PROGRESS AGAINST THE WORK PLAN SUPPORT PUBLIC PRIVATE DIALOGUE An inter-ministerial agreement on initial approval of the draft Water Resources Management developed by the Ministry of Environment and Natural Resources Protection (MENRP) was never achieved. Hence, submission of the draft law to the for approval was postponed. MENRP is currently working on a re-draft of the Water Resources Management Law. Most changes in the Law will be guided by the EU approximation agenda and Association Agreement (AA) environmental roadmap. The MENRP expects to have the new initial draft available for public hearings by April 2015. The MENRP is ready to engage in the dialogue with the private sector and general public on the key concepts of the draft and discuss major changes that the new legislation will introduce. G4G plans to continue work with MENRP in supporting PPD sessions and public hearing meetings during the law elaboration process. In addition, during the report period G4G participated in meetings on fresh water management issues attended by water sector stakeholders from public and private organizations. On January 29, 2015 G4G water team attended a workshop on Environmental Impact Assessment (EIA) for Cumulative Impacts of HPP projects in Georgia. The workshop was organized by GIZ in order to introduce the forthcoming project outline and scope on hydropower related Cumulative Environmental Impacts Assessment (CEIA) issues. On January 30, 2015 G4G, USAID and GIZ met again in order to gain common understanding on CEIA related issues and discuss possible future cooperation targets. GOG CAPACITY STRENGTHENING On January 28, 2015, G4G submitted the first project deliverable: Water Sector Initial Assessment Report. This report briefly reviews the water sector in Georgia, provides an overview of existing legislation, identifies main water users and discusses existing conflicts in the water sector (illustrated by case studies), and lastly maps out the relevant institutions and identifies their inter-relations and responsibilities in managing water resources. This assessment report serves as an instrument in creating and improving a sustainable national water resource management system. The main gaps identified by this report showcase the need of improvement of the enabling water resource management legislation and shifting towards river basin management, improving water related data management and flow network while promoting PPD in the planning and policy-making process. The activities identified in this document were designed to create an integrated approach to policy analysis among various key GoG stakeholders (Ministries). Findings within the document were shared with the PM’s Office’s and the Economic Council, all respective ministries for discussion. As a result of intensified consultations between G4G and PM’s Office, the Economic Council took a decision on the formation of a water management working group comprised of selected governmental officials (ministries and deputy ministers) dealing with water issues. Formation of this working group is significant step toward the improvement of Georgia’s water sector as it lays a basic foundation for coordination between different ministries dealing with water resource management issues. The Assessment Report revealed that improved coordination among donor institutions could make water sector development assistance more efficient and effective. With this is mind, the PM’s Office requested USAID, through G4G, to provide advisory support for improving donor coordination and consolidation of water sector aid activities. With water sector donor coordination meetings, the PM’s Office intends to establish widely accepted goals for key aspects of coordination, or harmonization, as well as mechanisms for evaluating progress toward water sector development goals. To support this initiative, a list of major potential donors working in water sector and brief event memo was developed and provided to the PM’s office. The PM’s office will convene a donors’ meeting in Quarter 3 with support from G4G. G4G continues active cooperation with the EU Mission in Georgia on water related matters in support of GoG efforts to comply with EU DCFTA/AA Annex commitments. The EU Mission in Georgia has developed the final draft of the road map for approximation with EU legislation in the environment sector (including water, waste, climate change and forestry). The EU Mission plans to share findings of the road map report to the donor community working in Georgia. The final report will be ready for public review by the end of March. Based on initial consultations, it was agreed to conduct additional consultations on how to combine G4G, PM’s office and EU efforts on donor coordination in order to mainstream priorities of donors' support projects on the basis of realistic targets per sector.

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 18 January 01 – March 31, 2015

A series of meetings were held with GoG officials and CSOs to introduce them to the G4G program and gain understanding of current and long term GoG priorities in water sector in order to make sure that the assistance activities are linked with national priorities. G4G continues intensive consultations with MENRP as a key institution dealing with freshwater resources policy in order to identify the G4G support areas. G4G introduced to the MENRP the idea of producing GIS based water sector map. It is believed that the ‘water sector map” will serve as a comprehensive, flexible and user-friendly framework for water resource planning and policy analysis. G4G continues work with MENRP on drafting concept idea on developing the ‘water sector map’. The initial list of input data for the ‘water sector map’ was developed. G4G identified biodiversity hotspots, protected areas, water resources, irrigation system, water supply, water users as priority areas for further data gathering for water map development. G4G is considering technical support to MERP to develop the water sector map. PRIVATE SECTOR & CIVIL SOCIETY ORGANIZATIONS STRENGTHENING G4G conducted several preparatory meetings with GoG officials and CSOs to plan the G4G’s assistance on the Green Paper scope. During the reporting period, the G4G team collected and started analysis of the EU member states’ guiding materials on water allocation plans. The SoW for the Green Paper grant has also been drafted. In the upcoming quarter, G4G will announce the associated Request for Application (RFA) and select a capable NGO for developing the Green Paper. The Grantee will organize field visits in the selected watershed area and familiarize representatives of local municipalities, public and private sector with EU best practice on concept of Water Resources Allocation Plans (WRAP) and develop recommendations for the implementation of the WRAP concept. It is also expected that this Green Paper could be used by GoG as a tool for identification of water stakeholders’ (e.g. water users) needs and expectations as well as for reaching a consensus between stakeholders before drafting the water policy document. WATER RESOURCE MANAGEMENT During the reporting period, (a) a SoW and a contract agreement with G4G subcontractor, GAMMA, was finalized and approved; (b) RFA will be announced in the following reporting period; (c) water sector initial assessment report was developed and distributed among different stakeholders. After intensive consultations with MENRP, activities to select a watershed area were commenced. G4G plans to use the selected watershed to develop the appropriate templates for water supply and demand forecasts and develop Watershed Management Plan (WMP) template to provide the basis for rolling out the process across Georgia for national supply and demand forecasts and WMPs. G4G developed a SoW for the Green Paper with the aim of developing the water allocation plan framework along with proposed recommendations (gap analysis). Successful delivery of the Green Paper will create the basis for PPD and support GoG’s sound decision-making process. It is also expected that this Green Paper could be used by GoG as a tool for identification of water stakeholders’ (e.g. water users) needs and expectations as well as for reaching a consensus between stakeholders before drafting the water policy document. The Green Paper discussions will lead towards the next stage of the process – the production of a White Paper (discussion on water allocation policy document). On February 12, 2015 G4G delivered a half day on-the-job training for MENRP on water resource and data management issues. G4G trained representatives of the MENRP’s Water Resource Management Services Department and the Environmental and Education Center on various water balance calculation methodologies, freshwater resources management, water resource management planning software and data management instruments. This is the start of G4G’s support of the GoG by providing different decision-making tools for sustainable freshwater resources management practices. Moreover, G4G conducted several meetings with the GoG, National Association of Local Authorities of Georgia (NALAG) and Regional Environmental Center for Caucasus (REC) to identify the key thematic areas for developing curriculum for water resources management training program. In the next quarter, G4G plans to continue meetings with water sector stakeholders in order to clearly identify topics for trainings and draft curriculum for the training program. PRIVATE SECTOR & CIVIL SOCIETY ORGANIZATIONS STRENGTHENING In Quarter 3, G4G plans to issue a grant to CSOs to (1) deliver a Green Paper on ‘Water Allocation Plan Framework – Challenges for Implementation’ and (2) conduct PPD events on Freshwater Management issues. 5.4.2 PPD SUCCESSES AND LESSONS LEARNED None at present. Planned activities are in progress.

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 19 January 01 – March 31, 2015

5.4.3 CHALLENGES TO ACHIEVING REFORM RESULTS The Grant Manual was approved by USAID in late February, 2015 and internal work for commencing RFA on Green Paper was finalized in late March, 2015. According to the approved WP, the Green Paper report is due in May 2015. However, considering above project constraints, the selection and approval of grantee was postponed and is scheduled for late April 2015. In Quarter 3, G4G will continue drafting the Green Paper and organizing several PPD events. The Green Paper will be developed in the first year and completed by the end of September. 5.5 TAX ENFORCEMENT AND ADMINISTRATION REFORM

REFORM OBJECTIVE Direct and immediate positive effect on tax compliance for all businesses.

5.5.1 PROGRESS AGAINST THE WORK PLAN SUPPORT PUBLIC PRIVATE DIALOGUE Tax Payment Simplification Reform. The PPD on tax payment simplification reform was held in the previous quarter. The next rounds of PPD events will be conducted in Quarter 3, as soon as respective legislative package will be submitted to the Parliament. Tax Code Review. PPD meetings are planned in Quarter 3 in the course of approximation of Georgian VAT rules with EU VAT legislation, as well as during the public ruling drafting process. GOG CAPACITY STRENGTHENING Tax Payment Simplification Reform. Since November 2014, G4G started supporting tax payment simplification reform as part of G4G Immediate Reform Activities. G4G implements the assistance in two phases. In Quarter 2 G4G completed the Phase I of the assistance during which G4G helped the Revenue Service (RS) and Ministry of Finance (MoF) to shape the final design of the reform, draft the underlining legislative package and reengineer business processes. In January G4G Tax Consultant, Irakli Siradze, finalized the update of tax payment simplification legislative package. The package includes changes and amendments to the Tax Code, Budgetary Code and Law on Restructuring Tax Liabilities and State Loans and related secondary legislation. As a next step the amendments will be presented for discussion within the Government. It is planned that GoG will submit the legislative package for Parliamentary approval at the spring session of 2015. In February G4G completed the support to RS on business process reengineering. G4G Business Analyst, Eka Katamadze, helped RS in analyzing and documenting the business requirements for the new tax payment system. The analysis included present and future tax payment processes, as well as organizational changes. In February G4G started the implementation of Phase II of tax payment simplification assistance targeting the technical capacity building of RS staff to operate the new system. G4G Tax Consultant, Irakli Siradze, started preparation of methodological instructions for the RS staff based on the final design of the system, new business processes and underlining primary and secondary legislation. In Quarter 3 G4G will also deliver 8 one-day trainings to the RS Service and Administration Departments’ staff and issue a manual for the taxpayers. Tax Code Review. Following the MoF’s request to provide technical assistance in analyzing the EU Value Added Tax (VAT) Directive 2, G4G and MoF established the WG consisting of the representatives of MoF’s Tax Policy Department, RS, EU Twinning Project “Strengthening Administrative Capacity of the Georgian RS in Taxation” (EU Twining Project) and G4G. Since January G4G started analytical support to the WG in prioritizing EU VAT Directive’s provisions against agreed criteria and developing recommendations on approximation of the Tax Code of Georgia with the Directive. During the reporting period G4G Tax Consultant, Vazha Petriashvili, conducted comparative analysis of VAT Directive and Georgian Tax Code VAT regulations covering the following topics: EU definitions of economic activity and taxpayer; registration and deregistration rules and special scheme for small enterprises; taxable amount in case of import, export, outward processing and temporary admission of goods; place of supply of goods and place of rendering services; VAT exemptions on import, export and

2 Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax.

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 20 January 01 – March 31, 2015 international transport activities and exemptions due to the public interest; exemptions related to certain transactions treated as exports; supply of services by intermediaries; transactions related to international trade. For each topic the Consultant described the differences between Georgian VAT law and EU Directive and identified what precisely needs to be brought into compliance with EU Directive. On March 8, the second WG meeting was held where G4G Tax Consultant presented the results of comparative analysis of selected topics. The next meetings of the WG will be held in Quarter 3 to discuss issues and critical non-compliances identified further on. In March G4G started the preparatory work for the MoF’s assistance on institutionalization of a public ruling mechanism. A “public ruling” is an official clarification of a complex issue of the Tax Code, issued either on the basis of a decision of a dispute resolution body or at the initiative of the tax authority itself. Since MoF has no previous experience in issuing public rulings, G4G was requested to provide technical assistance in both defining the procedures for issuing public rulings, to be endorsed by Minister of Finance’s Decree and the drafting the first public ruling. MoF and G4G identified the topic of the first public ruling, which will be the taxation of agricultural activity (profit tax exemption and reinvestment). It was also agreed that the representatives of targeted private companies will be consulted in the drafting process. G4G also selected the short-term expert to conduct this assignment. The activity will be implemented in Quarter 3. PRIVATE SECTOR & CIVIL SOCIETY ORGANIZATIONS STRENGTHENING Tax Code Review. G4G conducted several meetings with CSO representatives and business associations in order to collect information about the specific needs of small business associations on tax code advocacy. Based on the information collected from different stakeholders, the SoW for a potential grant for capacity building of small business associations in Tax Code advocacy was prepared, approved and advertised. This activity will be implemented in Quarter 3. During the reporting period G4G also conducted the preparatory work for issuing a grant to conduct a tax perception survey. The survey will help G4G and the Government to accurately assess the business’ perception about current tax policy issues and reveal the areas where G4G interventions will be most valuable. Questions for the survey will be designed in close collaboration with business associations and RS. The grant RFA has been developed and approved by USAID. The survey will be conducted in the period of May-August 2015. In parallel, G4G worked on identification of topic for RIA on selected tax policy issues. In coordination with MoF, the decision was made to conduct RIA on Estonian model of corporate income tax, which GoG considers to introduce. In this model corporate income taxation is shifted from the moment of earning the profits to the moment of their distribution. All distributions are subject to corporate income taxation at the rate of 20%.The study will be conducted during the period of May-August 2015. 5.5.1 PPD SUCCESSES AND LESSONS LEARNED None at present. Planned activities are in progress. 5.5.2 CHALLENGES TO ACHIEVING REFORM RESULTS It is clear, that there is a very low capacity in the broader business community, with the exception of apex business associations, to engage meaningfully in a policy review process. G4G focuses its awareness and capacity building efforts to broaden the pool of stakeholders that can engage in informed and meaningful tax policy discussions. 5.6 CUSTOMS ADMINISTRATION AND ENFORCEMENT REFORM

Elimination of barriers and inefficiencies that has an immediate impact on cross-border REFORM OBJECTIVE trade.

5.6.1 PROGRESS AGAINST THE WORK PLAN

SUPPORT PUBLIC PRIVATE DIALOGUE Customs Code. Eventually the MoF agreed to engage in dialogue with the private sector on key concepts of the draft and to discuss major changes that new legislation will bring for businesses. The first introductory session was held on March 26 at G4G with participation of RS, MoF, Freight- Forwarders Association, AmCham, BAG, Georgian Logistics Association (GLA) and International Chamber of Commerce (ICC) - Georgia. The MoF and RS explained to business associations that a majority of

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 21 January 01 – March 31, 2015 changes are dictated by the EU approximation agenda and explained the process and methods of approximation. MoF and RS representatives covered in general terms the EU approaches to post- clearance audit, customs regimes, authorized economic operator (AEO), preliminary customs declaration, etc. In Quarter 3 G4G will organize the next round of PPD events where specific concepts of the EU Customs Code will be discussed in more depth.

GOG CAPACITY STRENGTHENING Authorized Economic Operators (AEO) Concept. Bondo Bolkvadze, G4G Customs Policy Advisor, together with Nino Jincharadze, the RS staff member specifically assigned to this task, commenced analyses of EU legislation on AEO. The team started analysing the World Customs Organization’s (WCO) compendium of authorized economic operator programs. The compendium describes the rules and concepts (accreditation process, benefits, etc.) of AEO's and similar programs implemented in WCO member countries. In the upcoming weeks, the short-term transport and logistic consultant will join G4G to contribute to the analysis. Based on the findings of this study, G4G will help RS to develop an AEO Implementation Action Plan. That preliminary action plan will be discussed with the World Customs Organization (WCO) expert during the workshop to be organized in May 2015 in Tbilisi. Customs post-clearance control. At the request of G4G and in coordination with RS, the WCO suggested potential candidates for post-clearance adudit (PCA) consultancy from a list of WCO accredited experts. In March, G4G and RS agreed on tasks and tentative schedule of the consultancy. It was agreed that the consultant will carry out the assignment in two missions: the first mission will be dedicated to the diagnostic assessment, workshop and delivery of recommendations on implementation of EU PCA standards; the second, follow-up mission will focus on assisting the RS in implementation of the provided recommendations. This activity will be implemented in Quarters 3 and 4.

PRIVATE SECTOR & CIVIL SOCIETY ORGANIZATIONS STRENGTHENING No specific activities were implemented within the reporting period.

5.6.2 PPD SUCCESSES AND LESSONS LEARNED MoF needs to engage in public-private consultations from the early drafting stage, rather than after the law or regulation is finalized. Despite the fact that the first draft of the Customs Code has been developed for several months now, MoF is still hesitant to release it for public consultations. G4G is working with MoF and other GoG institutions to start consultative process in the very beginning of policy-making. .

5.6.3 CHALLENGES TO ACHIEVING REFORM RESULTS MoF is behind the agreed reform timelines (e.g. on Customs Code adoption) that creates the challenge to implementation of project activities.

5.7 TRADE FACILITATION/TRANSPORT AND LOGISTICS REFORM

Elimination of barriers and inefficiencies that has an immediate impact on cross-border REFORM OBJECTIVE trade and facilitate greater integration with EU countries.

5.7.1 PROGRESS AGAINST THE WORK PLAN

SUPPORT PUBLIC PRIVATE DIALOGUE DCFTA. G4G and the MoESD continued series of awareness raising events on DCFTA. The campaign is led by Deputy Minister of Economy and Sustainable Development, Mr. Mikheil Janelidze, with the participation of Ministry of Agriculture. On March 23-24 meetings were held in Ozurgeti (Guria Region) and Poti (Samegrelo Region). More than 80 participants from civil society and the private sector attended the events were they learned about the opportunities offered by DCFTA for businesses and ordinary citizens. MoAg also presented the program of Preferential Agro Credits, which should enable farmers to raise product quality, comply with EU regulations and enter the European market. G4G, in collaboration with MoESD, developed and printed 500 copies of the DCFTA awareness brochures. The brochure provides a brief overview of all 15 chapters of the agreement. The brochures will be distributed to businesses, media, NGOs, and local municipalities as a part of the DCFTA public awareness campaign. G4G is now working on an English version of the brochure.

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 22 January 01 – March 31, 2015

During the reporting period G4G conducted the competitive tender and identified the vendor for development of DCFTA promotional video. Trade Facilitation System (TFS). In Quarter 1 and Quarter 2 G4G actively engaged in mobilizing the private sector and GoG stockholders to accelerate the launch of TFS. During the reporting period G4G held meetings with Minister of Finance, Mr. (February 4), Secretary of Economic Council, Mr. (February 10), the First Deputy Minister of Economy and Sustainable Development, Mr. (March 4), as well as series of meetings with leadership of Data Exchange Agency (DEA) and RS. As a result of these efforts, DEA and RS mapped the remaining technical issues and started working on their resolution. As a next step the seventh TFS steering committee meeting will be held on April 8. DEA will communicate to stakeholders an updated timetable for TFS implementation and launch, as well as GoG’s vision on TFS fee strategy at the meeting.

GOG CAPACITY STRENGTHENING No specific activities are planned in this area.

PRIVATE SECTOR & CIVIL SOCIETY ORGANIZATIONS STRENGTHENING DCFTA. G4G announced a grant competition to produce a guide (online version and 300 printed copies) for private sector on rules of origin and customs tariffs and quotas for Georgian produced goods under DCFTA.

5.7.2 PPD SUCCESSES AND LESSONS LEARNED As part of DCFTA awareness campaign G4G and MoESD conducted events in Ozurgeti and Poti. The events in the regions revealed several problems mainly related to the knowledge of the subject, level of interest among the stakeholders, and lack of GoG capacity to properly communicate with the stakeholders in the PPD process. Therefore, G4G has been assisting GoG in identifying the key issues, areas and actors, as well as in crafting appropriate messages and selecting communication campaign tools.

5.7.3 CHALLENGES TO ACHIEVING REFORM RESULTS None at present. 5.8 BANKRUPTCY AND LIQUIDATION REFORM

Reformed bankruptcy regime to remove barriers to entrepreneurship, efficiently recycle REFORM OBJECTIVE assets back to productive use and restore viable businesses to financial health through business rescue.

5.8.1 PROGRESS AGAINST THE WORK PLAN SUPPORT PUBLIC PRIVATE DIALOGUE Insolvency Assessment. G4G plans to conduct PPD sessions on the need for insolvency reform in the Quarters 2 and 3. The potential benefits to the business, including the introduction of business rescue provisions will be highlighted throughout the PPD sessions. In the course of this dialogue, G4G plans to identify potential reform champions within one or more of the key ministries. GOG CAPACITY STRENGTHENING Insolvency Assessment. During the reporting period G4G conducted several consultation meetings to identify its role and plan intervention in bankruptcy and liquidation policy area. On March 12, G4G participated in a coordination meeting on bankruptcy reform organized by the Ministry of Justice (MoJ) and attended by MoJ and National Bureau of Enforcement staff as well as GIZ representatives. The Deputy Minister requested G4G assistance in conducting a comprehensive analysis of the existing legal framework, institutional infrastructure and practice, to finalize proposed amendments prepared with GIZ input. The parties agreed on tentative timeline of the activities, namely that G4G will conduct its comprehensive analysis during the spring 2015, with the MoJ to finalize its draft and submit it to Parliament for the 2015 autumn session. In parallel, G4G developed a SoW for international expert to conduct Diagnostic Assessment of Insolvency System, identified the expert through the competitive tender and initiated the approval process. In late March, G4G commenced data collection for the diagnostic assessment. G4G requested information from the Court of Appeals on bankruptcy cases for the period of 2010-2014, as well as the information

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 23 January 01 – March 31, 2015 from National Bureau of Enforcement, namely, internal instructions on bankruptcy procedures, statistics, mapped problems, practical examples etc. G4G will continue to seek other statistical and historical information related to insolvency practice, as well as preparation of a proposed meeting list for the incoming G4G insolvency expert. The study will be completed in the next quarter. PRIVATE SECTOR & CIVIL SOCIETY ORGANIZATIONS STRENGTHENING No specific activities are planned in this area. 5.8.2 PPD SUCCESSES AND LESSONS LEARNED None at present. Planned activities are in progress. 5.8.3 CHALLENGES TO ACHIEVING REFORM RESULTS MINISTRY OF JUSTICE Bankruptcy reform is a complex technical area that inherently affects more than one ministry (i.e. MoJ, MoESD, MoF). Failure to effectively engage these ministries and gain full and complete buy-in can delay or altogether thwart the effectiveness of the reform. In the process of assessment G4G will closely collaborate with above mentioned ministries, thus raising their awareness of the problems and building their buy-in to the reform. 5.9 LAND OWNERSHIP REGISTRATION REFORM

Certainty, clarity and predictability in land rights that is crucial for effective economic REFORM OBJECTIVE development of land.

5.9.1 PROGRESS AGAINST THE WORK PLAN SUPPORT PUBLIC PRIVATE DIALOGUE Legal Strategy PPD. On January 15-16, G4G held an off-site PPD event with National Agency of Public Registry (NAPR), Transparency International (TI) and Tbilisi State University Alternative Dispute Resolution (ADR) Center to discuss the draft Law on Registration of Land Titles and Improvement of Cadastral Data. The participants reached a consensus on the majority of its provisions. According to feedback received and through additional consultations with NAPR staff, G4G finalized the draft law and submitted to NAPR. Over the upcoming quarter, G4G together with NAPR plans to conduct several PPD events and round tables with other public and private sectors’ and civil society stakeholders to discuss Pilot Land Registration Legal Strategy and the draft law. G4G will help NAPR and MoJ to adjust the draft law according to the received feedback before its goes to the Parliament. GOG CAPACITY STRENGTHENING Preparation for Pilot. G4G subcontractor, TI completed its assignment on Streamlining Land Ownership and Registration Legislation and Procedures. G4G submitted the Pilot Land Registration Legal Strategy along with finalized draft Law on Registration of Land Titles and Improvement of Cadastral Data and Practical Guideline for the Mediators to NAPR. In the beginning of March NAPR presented the draft law to the Deputy Minister of Justice, Mikheil Sarjveladze, and after receiving a positive feedback officially submitted it to the Legal Drafting Department of MoJ for review and approval. As a next step, G4G will help NAPR and MoJ to build the necessary consensus among government and civil society stakeholders on the draft law through the series of PPD events and finalize the law according to the received feedback. MoJ plans to submit the draft law for the spring session of Parliament. During the reporting period G4G also supported NAPR in developing Communication Strategy and Action Plan for the land registration pilot project. G4G Communications Consultant, Konstantine Magradze conducted several site visits to the pilot project municipalities and interviewed representatives of local government and farmers in the Governor’s Office. The findings of the site visits were presented and discussed at the strategic planning workshop on Land Registration Communication Strategy Development organized by G4G on February 26. The workshop was attended by NAPR, G4G, World Bank and TI representatives and included a brainstorming session on strategic objectives, communication activities, audience targeting matrix, creative concepts, and crisis management tools to be used during the pilot project. Data collected through the desk research, interviews and workshop was incorporated in draft Land Registration Pilot Project Communication Strategy. The document has been reviewed by Public Relations (PR) Department of NAPR and G4G. The final document will be submitted to USAID in early April.

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 24 January 01 – March 31, 2015

PRIVATE SECTOR & CIVIL SOCIETY ORGANIZATIONS STRENGTHENING In Quarter 3, G4G plans to issue two grants to CSOs to (1) deliver ADR trainings for mediators involved in pilot project implementation and (2) monitor pilot project implementation process. 5.9.2 PPD SUCCESSES AND LESSONS LEARNED G4G was able to broker a consensus between civil society in the face of TI and government on wide range of contentious technical issues surrounding the land registration. This resulted in a draft law Registration of Land Titles and Improvement of Cadastral Data to be soon submitted for Parliament’s approval. 5.9.3 CHALLENGES TO ACHIEVING REFORM RESULTS Land registration is a particularly volatile reform area, and it will require careful and intensive communication with affected citizens. Inconsistent messaging and lack of coordination at top government levels may cause complications during the pilot project implementation process. Engagement at the local level, with local officials will be critical. GoG initiation of the Law into parliamentary procedure appears to be behind the schedule that may delay start of the pilot. 5.10 PENSION REFORM

Effective public dialogue on anticipated pension reform which is crucial to its acceptance by REFORM OBJECTIVE the public.

5.10.1 PROGRESS AGAINST THE WORK PLAN SUPPORT PUBLIC PRIVATE DIALOGUE PPD on Pension Reform. Due to the GoG’s decision to postpone the implementation of the new pension system to 2017, G4G plans to move related PPD events to Year 2 of the project. GOG CAPACITY STRENGTHENING Public Outreach and Legal Drafting. G4G decided to move public outreach and legal drafting support to pension reform to Year 2 of the project. In Year 1, G4G will carry out only limited assistance by providing the sponsorship to MoF official, member of pension reform working group, to attend the World Bank Pension Core Course. It is a two-week course to be held from April 27 through May 8, 2015 which provides an in-depth understanding of the conceptual and practical issues involved in the design and implementation of pension and social security programs and linkages to social protection systems. PRIVATE SECTOR & CIVIL SOCIETY ORGANIZATIONS STRENGTHENING Regulatory Impact Assessment. Moved to Project Year 2. 5.10.2 PPD SUCCESSES AND LESSONS LEARNED None at present. 5.10.3 CHALLENGES TO ACHIEVING REFORM RESULTS The project is challenged by inability of the GoG to abide by reform implementation schedule and inconsistent willingness of the counterpart to engage with USAID. 5.11 CAPITAL MARKET REFORM

Effective public dialogue on anticipated capital market reform to stimulate participation by REFORM OBJECTIVE business community.

5.11.1 PROGRESS AGAINST THE WORK PLAN SUPPORT PUBLIC PRIVATE DIALOGUE Capital Market PPD. In Quarter 3 after at the final stage of the diagnostic assessment G4G will conduct PPD events to verify the findings of the study and refine the recommendations. The results of the PPD will be reflected in Capital Market Reform Master Plan.

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 25 January 01 – March 31, 2015

GOVERNMENT OF GEORGIA CAPACITY STRENGTHENING Diagnostic Assessment. During the reporting period, G4G worked closely with Robert Singletary, ADB Consultant and the member of GoG Capital Markets Working Group (CMWG) on data gathering for the Capital Market Diagnostic Study. G4G developed the inventory of all official versions of laws related to capital market (including the full inventory of changes and amendments introduced), available English translations, and obligations of Georgia under EU-Georgia AA. In parallel, G4G financial analyst, Neli Danelia, created the electronic library of disclosure reports filed by all reporting companies with Georgian Stock Exchange for the period of 2006-2013; and developed the key financial indicators database of reporting companies, brokerage companies, registrars, insurance companies, Georgian Stock Exchange and Georgian Securities Central Depository (GSCD) for 2013. G4G also started the analysis of securities trading data for the period of 2006-2014. Starting from March G4G financial analyst and ADB Consultant conducted several interviews with various capital market stakeholders to receive their feedback on capital market issues. Interviews were conducted with the management of Small Enterprises Development Funds (SEAF), Caucasus Development Fund, SEAF Regional Development Fund, Georgian Co-Investment Fund, Georgian Partnership Fund, EBRD, GSE, GSCD, commercial banks, securities registrars and independent experts. On March 18th, short-term legal consultant, Marina Guledani, joined the capital market diagnostic study team and started in-depth legal analysis in support of the study. PRIVATE SECTOR AND CIVIL SOCIETY ORGANIZATION STRENGTHENING No specific activities are planned in this area. 5.11.2 PPD SUCCESSES AND LESSONS LEARNED None at present. Planned activities are in progress.

5.11.3 CHALLENGES TO ACHIEVING REFORM RESULTS Because G4G is primarily in the diagnostic stage, there are few immediate challenges identified beyond those associated with connecting to and coordinating with a wide and diverse range of stakeholders. While the ultimate focus will be on the legal and regulatory framework, G4G will need to engage the private sector in the dialogue with the GoG to determine what improvements will have the most impact on capital market development. 5.12 CROP INSURANCE REFORM

REFORM OBJECTIVE Immediate increase in access to finance for rural businesses.

5.12.1 PROGRESS AGAINST THE WORK PLAN SUPPORT PUBLIC-PRIVATE DIALOGUE Crop Insurance PPD. On February 10, G4G and Agrarian Committee of the Parliament conducted a round table discussion, entitled: Agricultural Insurance in Georgia: Challenges and Perspectives. The event gathered all key stakeholders, including the MoAg, Agrarian Committee of Parliament (Ag Committee), insurance companies and farmers’ organizations. In total 38 attendees participated in the event. The discussion focused on the results of the MoAg 2014 agricultural (agro) insurance pilot project and proposed next steps. All attendees evaluated the pilot project positively, and agreed that it provided valuable data, experience and lessons-learned across various crop types and regions, which can be useful in designing the long-term policy country-wide. On February 19, the GoG approved the 2015 Agricultural Insurance Program. The new program took into account the recommendations received from different stakeholders. Among the suggested adjustments there was the increased celling of insurable grain farm from 5 ha to 15 ha. The issue was raised by farmer’s organizations at the public-private discussion on crop insurance organized by G4G on February 10. In parallel, GoG started to work on agro insurance legal framework. Under the leadership of Ag Committee, a working group (WG) that was established previously to formulate crop insurance policy and the pilot program, was reconvened. The WG includes the existing members, such as insurance companies, Ag Committee, Georgian Insurance Association (GIA), and Swiss Development Corporation (SDC), as well as new members, such as G4G, Agricultural Project Management Agency (APMA), and Insurance State Supervisory Service. The first meeting of the WG was held on March 24. It was mentioned that under ongoing KfW feasibility study on “Agro Insurance in Georgia and Armenia” the initial concept of

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 26 January 01 – March 31, 2015 sustainable agro insurance (NARMA) was developed. The major difference of the new model from the previously developed model (NAGIS) is the limited role of the insurance companies in state agro insurance scheme. The results of the study as well as recommendations on state agro insurance scheme will be presented to stakeholders in mid-May. It was decided that G4G will help GoG to form the final decision on agro insurance model by conducting Regulatory Impact Assessment (RIA). G4G plans to announce a grant for conducting this RIA in the coming weeks. GOVERNMENT OF GEORGIA CAPACITY STRENGTHENING Regulatory Impact Assessment. In Quarter 3 G4G plans to issue a grant to conduct RIA on crop insurance law to be jointly implemented by a think-tank and the MoA. G4G has drafted and initiated internal approval process for the SoW for Crop Insurance RIA Grant. PRIVATE SECTOR AND CIVIL SOCIETY ORGANIZATION STRENGTHENING Crop Insurance Product Development. In Quarter 4 G4G plans to issue a grant to local NGO to provide technical assistance and trainings to farmer organizations to effectively participate in the development of crop insurance products. 5.12.2 PPD SUCCESSES AND LESSONS LEARNED As a result of G4G sponsored PPD on crop insurance held on February 10, 2015, and following the recommendations received from different stakeholders at that meeting, GoG adjusted the 2015 Agricultural Insurance Program. One of the adjustments was the increased celling of insurable grain farm from 5 ha to 15 ha that enabled the grain producers to benefit from the program. 5.12.3 CHALLENGES TO ACHIEVING REFORM RESULTS The lack of consensus among key GoG and private sector stakeholders on “pool” mechanism may impede the law drafting and adoption process. The implementation of RIA will contribute to the building of this consensus and advocate for the particular model. 5.13 INNOVATION AND TECHNOLOGY POLICY

Immediate improvement on Innovation and Technology regime vital for Small and Medium REFORM OBJECTIVE Enterprise (SME) development and access to finance for innovation.

5.13.1 PROGRESS AGAINST THE WORK PLAN SUPPORT PUBLIC-PRIVATE DIALOGUE Innovation PPD and Innovation legislation review. During the reporting period G4G team conducted the meeting workshop for the representatives of Georgian Innovation and Technology Agency (GITA) to present the findings of Deloitte’s studies on Tax Incentives and Entrepreneurial Policy Benchmarking on innovations and technology. GITA will use the studies in designing the Law on Promotion of Innovations and Technology. GITA has submitted for G4G’s review the draft Law on Innovations. In Quarter 3 G4G will facilitate consultations with private sector and CSOs around the draft law and draft Innovation Strategy as well as conduct the review of the effects of the GoG incentives package designed to stimulate innovation and recommendations. By actively engaging the private sector and interested civil society organizations, G4G will help to minimize the risk that the incentives, policies and infrastructure proposed in this draft framework will bring to the development of innovations in Georgia.

GOVERNMENT OF GEORGIA CAPACITY STRENGTHENING No specific activities were implemented within the reporting period.

PRIVATE SECTOR AND CIVIL SOCIETY ORGANIZATION STRENGTHENING No specific activities were implemented within the reporting period.

5.13.2 PPD SUCCESSES AND LESSONS LEARNED None at present. Planned activities are in progress.

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 27 January 01 – March 31, 2015

5.13.3 CHALLENGES TO ACHIEVING REFORM RESULTS Innovation is a relatively new policy area for Georgia, and it is not necessarily well or widely understood. Drafting process of the law on innovations is taking more time than was originally anticipated. G4G plans to facilitate the dialogue between state agencies and ministries inside government in order to accelerate the drafting and agreement process. As G4G engages on the topic, it will be important to continually define goals and parameters of the potential policy reform, in part to ensure that diverse stakeholders are evaluating options using similar assumptions and information.

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 28 January 01 – March 31, 2015

6.0 WORK PLAN OUTPUTS TABLE

Component Activities Outputs Timing Comment

Added Description Status by

1. Overall Institutionalized Framework for Public Consultation

1.1. Support Public 1.1.1. Support National PPD platform. (1) Conduct assessments to (1) Assessment In progress WP Feb-15 RFA approved by Private Dialogue identify the collaborative governance gaps and existing and Sep-15 USAID, solicitation emerging national platforms (i.e. EBRD); (2) Develop an action issued. plan to support development of a permanent public- private dialogue platform. Such platform will be designed to (2) Action Plan Planned WP Feb-15 include key affected subgroups. Sep-15

1.1.2. Engage Media in the National PPD. (1) Identify constraints (1) Assessment Planned WP Feb-15 SoW developed. that economic journalists face in covering reforms; (2) Mobilize Sep-15 and consult media professionals from different media sources to cover and report the reform in a more effective manner and to (2) Convene WG of In progress WP Feb-15 16 journalists from better monitor the government's performance in the reform influential economic influential media implementation process; (3) Develop marketing activities such as journalists (5-10 Sep-15 outlets will be trainings and site visits (on specific reforms covered by journalists) mobilized on April 4- Component 5). 5, 2015.

(3) Trainings and site In progress WP Feb-15 Offsite workshop on visits Sep-15 ETM, Crop Insurance, Economic Development Perspectives and Land Registration Pilot will take place on April 4-5, 2015.

1.1.3. Engage Youth in the National PPD. (1) Identify youth (1) Map local youth Completed WP Jan-15 organizations to engage them in the policy-making processes; (2) organizations Build capacities of youth organizations' members to effectively Sep-15 communicate and advocate for reforms. (2) 2 to 4 round- In progress WP Jan-15 RFA approved, table/capacity building solicitation issued. Sep-15

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 29 January 01 – March 31, 2015

Component Activities Outputs Timing Comment

Added Description Status by

workshops

1.1.4. Engage Women in the National PPD. (1) Identify and (1) Map local gender Completed WP Feb-15 engage with local women associations/gender based organizations organizations (i.e. Institute of Policy Studies, Women's Union of Sep-15 Georgia, Women's Young Union and Democracy, etc.) To bring them into a coalition PPD platform. (2) Provide support to (2) 2-3 capacity In progress WP Feb-15 RFA approved by building workshops USAID, solicitation strengthen the engagement of women organizations in advocating Sep-15 and playing leadership roles in the implementation of business followed with survey issued. enabling reforms. on perceived self- efficacy

1.1.5. Develop Reform Progress Tracking System. Assess options Assessment In progress WP Feb-15 SoW prepared; work for the online reform progress tracking system. is about to Sep-15 commence.

1.2. GOG Capacity 1.2.1. Support National PPD platform. (1) Advocate and educate (1) 1-3 Workshops Planned WP Apr-15 Strengthening GoG officials to support development of a national PPD platform that includes subject matter subgroups. (Including expert Sep-15 consultations with GoG officials); (2) Benchmark and analyze other countries' practices with study tour, if deemed appropriate. (2) Benchmarking Planned WP Apr-15 study; (3) Study tour Sep-15

1.2.2. Support National RIA Framework. (1) Build awareness of 2-3 Trainings Planned WP Jun-15 RIA as an input to policy development and PPD; (2) Train GoG officials to be better "consumers" of RIA and other policy analysis. Sep-15

NEW: Draft RIA Planned WP Jul-15 GoG requested Methodology expert advice on RIA Sep-15 institutional framework and methodology.

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 30 January 01 – March 31, 2015

Component Activities Outputs Timing Comment

Added Description Status by

1.3. Private Sector 1.3.1. Develop Reform Progress Tracking System. Engage CSO in Design of reform In progress WP Jun-15 Two brainstorming & Civil Society the development of an online reform progress tracking system and progress tracking sessions with select Organizations public information channel to enable the public to monitor the system Sep-15 expert-participants. Strengthening progress of reforms.

1.3.2. Engage Media in the National PPD. (1) Design and conduct (1) 1-3 trainings In progress WP Mar-15 Training on G4G training aimed at improving the economic knowledge of journalists reforms will be and increasing the frequency of economic reporting related to Sep-15 conducted on April 4- business enabling environment, water resource management and 5, 2015 at Offsite electricity trading policy; (2) Conduct informal round tables Media Workshop ("Coffee & Conversation" sessions) on general PPD issues. (See WP#1.1.2.)

(2) Coffee & In progress WP Mar-15 First "Coffee & Conversation Conversation" sessions Sep-15 session will take place next Quarter.

1.3.3. NEW: Engage women in PPD. Strengthen women’s Conference Completed Q2 March-15 Conference leadership in the policy making process on economic growth. “Women’s Role in Economic Growth and Policy Development” took place on March 31, 2015.

1.3.4. NEW: Engage business associations in PPD. Capacity 1-2 workshops In progress Q2 Mar-15 First workshop is building workshops for Georgian business associations. scheduled for April Sept-15 22-24.

2. Energy Strategy Reform

2.1. Support Public 2.1.1. PPD on Energy Strategy Reform. Inform private sector Consultations In progress WP Mar-15 Private Dialogue representatives on Energy Strategy Reform (including responding to ad hoc inquiries). Jun-15

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 31 January 01 – March 31, 2015

Component Activities Outputs Timing Comment

Added Description Status by

2.1.2. PPD on Energy Strategy Reform. Support Ministry in 1-2 PPD events Planned WP Mar-15 conducting a roundtable with several private sector representatives and participate in the event. Sep-15

2.2. GOG Capacity 2.2.1. MoE capacity building on Energy Strategy. Support (1) Draft BAU Completed WP Jan-15 - Strengthening Analytical Department of MoE in development of assumptions for Business-As-Usual and building scenarios for MARKAL Georgia Mar-15 (standard energy sector analysis software). (2) Assumptions Completed WP Jan-15 Report Mar-15

2.2.2. MoE capacity building on Energy Strategy. Support Energy (1) Consultations Completed WP Oct-14 First round of Strategy development process (attending WG meetings, providing consultations was immediate commentary and technical advice). Mar-15 completed. Second round of consultations will be conducted once Energy Policy is adopted.

(2) Meetings Completed WP Oct-14 Reports were Summary Report completed for the first Mar-15 round of consultations.

2.2.3. MoE capacity building on Energy Strategy. Conduct national Survey report and In progress WP Mar-15 SoW under survey on use of primary energy sources (including commercial data set development. and industrial consumers). Sep-15

2.3. Private Sector 2.3.1. CSOs capacity building on Energy Strategy. Conduct one or 1-3 workshops with Planned WP Apr-15 Depend upon MoE’s & Civil Society more meetings of interested CSOs to review the draft strategy and CSOs completion of Draft Organizations help bring comments to consensus. Jun-15 Strategy. Strengthening

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 32 January 01 – March 31, 2015

Component Activities Outputs Timing Comment

Added Description Status by

3. Electricity Trading Mechanism (ETM)

3.1. Support Public 3.1.1. ETM PPD. Provide Technical assistance and advocacy (1) 1-2 PPD events Completed WP Jan-15 2 PPD events Private Dialogue support to MoE to conduct PPD to discuss opportunities to conducted and 3 address market development issues. Sep-15 PPD advocacy events conducted for the market players.

(2) Stakeholder In progress WP Jan-15 Consultations with consultations donors/implementers, Sep-15 private sector, GoG and banks conducted.

3.2. GOG Capacity 3.2.1. No activities planned. Strengthening

3.3. Energy 3.3.1. ETM capacity building. Training and capacity building of 4-5 Training Sessions In progress WP Mar -15 2 Trainings were held (Electricity) Trading GSE, ESCO, GNERC and MoE on international best practices on for GNERC. Policy Governance competitive electricity markets. Sep-15

3.3.2. Technical assistance to MoE. (1) Provide comments on MoE (1) Comments In progress WP Dec-14 Draft concepts for developed ETM Road Map and Annual Work Plan; (2) Arrange ETM Road Map regular steering committee meetings; (3) Comment on MoE- Sep-15 developed. developed ETM-related primary and secondary legislation. (2) Steering In progress WP Dec-14 ETM Simulation Committee meetings Working Group was summary Sep-15 established by MoE and it replaced Steering Committee.

3.3.3. Technical assistance to ESCO. (1) Provide comments on (1) Comments In progress WP Jan-15 Comments on Daily proposed MO (ESCO) developed Market Rules; (2) Suggest Trading proposal was revisions to implementation of Daily Trading; (3) Monitor progress Sep-15 submitted to ESCO. of trading software development in collaboration with WB. (2) Recommendations In progress WP Jan-15

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 33 January 01 – March 31, 2015

Component Activities Outputs Timing Comment

Added Description Status by

Sep-15

3.3.4. Technical assistance to TSO (GSE). (1) Suggest revisions (1) Comments In progress WP Dec-14 Report on TYNDP on Day Ahead Planning development (rules, procedures); (2) completed. Monitor progress of trading software development; (3) Comment Sep-15 on TSO’s TYNDP. (2) Recommendations In progress WP Dec-14 Report on Capacity Allocation and Sep-15 Congestion Management completed.

3.3.5. Technical assistance to GNERC. (1) Comment on Market (1) Comments In progress WP Dec-14 Monitoring Plan and draft procedures developed by GNERC; (2) Monitor harmonization with Turkey and SEE Countries. Sep-15

(2) Recommendations In progress WP Dec-14 Recommendations on transmission Sep-15 reliability, connection and monitoring provided.

NEW: 2 Capacity In progress Q2 Mar-15 Building Workshops Sep-15

3.3.6. Private sector market players support: Provide Trainings on 1-5 Trainings Planned WP Jan-15 5 technical trainings ETM development to the private sector players. were provided during Sep-15 PPD advocacy events (WP #.3.1.1.)

3.4. Private Sector 3.4.1. Women integration in energy sector. Engage NGO to (1) Survey In progress WP Feb-15 RFA approved by & Civil Society conduct gender survey in the energy sector and hold a workshop USAID, solicitation Organizations on Role of Women in the Energy Sector. July-15 issued. Strengthening (2) Workshop followed In progress WP Feb-15 with survey on Jun-15

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 34 January 01 – March 31, 2015

Component Activities Outputs Timing Comment

Added Description Status by

perceived self-efficacy

3.4.2. Promotion of Energy Sector Associations. Conduct Energy informal group Completed WP Feb-15 individual and joint meetings with private sector market players to established discuss opportunities to address market development issues Sep-15 through the development of sector organizations (associations, unions, coalitions etc.).

3.4.3. Youth integration in ETM policy development. Hold Conference In progress WP Apr-15 The conference will conference of young energy sector specialists on energy trading. take place on April May-15 29, 2015.

4. Water Resource Management Reform

4.1. Support Public 4.1.1. Water Resource Management Green Paper PPD. Hold 2-4 PPD events Planned WP May-15 PPD will follow Green Private Dialogue consultations on Green Paper (water sector gap analysis) with Paper. GoG stakeholders, CSOs, local governments. Sept-15

4.2. GOG Capacity 4.2.1. Water Resource Management PPD capacity building. 2-3 Workshops Planned WP Jun-15 Strengthening Conduct workshop to the Ministry of Environment and Natural Resource Protection on international best practices for involving Sep-15 CSOs in development of green papers, white papers and draft legislation.

4.2.2. Water Resource Management capacity building. (1) Provide 2-3 Workshops Planned WP Jun-15 training to NALAG (National Association of Local Authorities of Georgia), NEA (National Environmental Agency) and EIEC (2) Comments Sep-15 (Environmental Information Education Center) on how to prepare and deliver position papers on water resource planning and management; (2) Provide comments on position papers developed by NALAG or other CSOs.

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 35 January 01 – March 31, 2015

Component Activities Outputs Timing Comment

Added Description Status by

4.2.3. NEW: Capacity building to United Amelioration Systems NEW: Report on key Planned QR2 May -15 Company of Georgia by developing the key concepts to be used in concepts to be Dec-15 the tariff methodology relying on international best practices for included in tariff setting tariffs for irrigation and drainage. methodology

4.3. Water 4.3.1. Water Sector Assessment. Conduct assessment of water Assessment Completed WP Dec-14 Resource sector, mapping stakeholders, discussion initiation with Management stakeholders, and identification of main directions. Jan-15

4.3.2. Water Sector Data Assessment. (1) Conduct assessment of Report on water In progress WP Feb-15 SoW for GAMMA sources of data, existing database structure, data inflow and resources database finalized. consistency, finalize the database structure; (2) Identify type of structure Sep-15 data to be consistent to requirements set by WG or group of key stakeholders.

4.3.3. Fresh water resource management training. Develop (1) Curriculum In progress WP Mar-15 curriculum and conduct training on fresh water resource management to representatives of municipalities and Central Sep-15 Government (such as NALAG, Environmental Information and Education Center (EIEC) under the MENRP. (2) 5 Training In progress WP Mar-15 sessions Sep-15

4.4. Private Sector 4.4.1. Water Resource Management Green Paper. Develop Green Paper In progress WP Apr-15 Range of dates was & Civil Society Green Paper - Sectorial Gap Analysis. amended from Feb- Organizations Sep-15 May to Apr-Sep due Strengthening to grants program start in February. RFA approved by USAID, solicitation issued.

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 36 January 01 – March 31, 2015

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4.4.2. Fresh water resource management training. Conduct 5 Training sessions Planned WP Mar-15 trainings to CSOs on fresh water resource management planning and implementation and examples of best international practices; Sep-15 provide international examples of green papers and work on developing a green paper on fresh water resource management.

5. Tax Enforcement and Administration

5.1. Support Public 5.1.1. Tax Payment Simplification. Conduct public outreach to (1) 2 to 3 PPD events In progress WP May-15 One PPD conducted. Private Dialogue taxpayers on tax payment simplification reform and preparation of brief instructions and guidelines for taxpayers. Jun-15

(2) Taxpayer In progress WP May-15 Guidelines Jun-15

5.1.2. Tax Payment Simplification. Produce video tutorial for Video tutorial Cancelled QR1 May-15 Based on MoF taxpayers on new payment system. request video tutorial Jun-15 will be converted into promotional video.

NEW: Promotional Planned QR2 May-15 Video Sep-15

5.1.3. Tax Code Review. Conduct PPD events on Tax Policy (Tax 2 PPD events Planned WP Jan-15 Code) Reform with the involvement of business associations (AmCham, BAG, ICC, and GSMEA). Sep-15

5.1.4. Tax Code Review. Support Tax Code Review WG meetings At least 3 In progress WP Mar-15 2 WG meetings. to discuss legal framework improvement package. WG meetings Sep-15

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5.2. GOG Capacity 5.2.1. Tax Payment Simplification. (1) Facilitate a review of the Legislative package Completed WP Oct-14 Building existing high-level framework of the reform and its key components, assisting the MoF and RS officials to shape the final Dec-14 design of the reform. (2) Update the draft package of legislative amendments, including proposed changes and amendments to the Tax Code and Budgetary Code of Georgia.

5.2.2. Tax Payment Simplification. Provide support to business Report Completed WP Nov-14 process reengineering. Dec-14

5.2.3. Tax Payment Simplification. Conduct targeted trainings of (1) 4-5 training In progress WP Jan-15 End date was frontline RS staff and preparation of methodological instructions. sessions amended from May Jun-15 to June, 2015 due the completion of approval process.

(2) Methodological In progress WP Jan-15 The end date was instructions moved from May to Jun-15 June, 2015 due to the completion of approval process.

5.2.4. NEW: Tax Code Review. Provide support to RS and MoF in Recommendations on In progress QR1 Jan-15 80 percent complete. developing the action plan for the approximation of Tax Code with VAT Approximation EU VAT Directive. Action Plan Apr-15

5.2.5. Tax Code Review. Provide support in updating amendments Tax code Planned WP May-15 Range of dates was package to the Tax Code based on EU and other best practices amendments package amended from Jan- and facilitate their adoption. for submission to Sep-15 Jun, 2015 to May- Parliament Sep, 2015 to accommodate VAT Approximation Action Plan to be completed in April 2014.

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5.2.6. Tax Code Review. Provide support in drafting of public Draft public rulings In progress WP Mar-15 Consultant hired and rulings on problematic issues of tax legislation. work commenced. Sep-15

5.3. Private Sector 5.3.1. Tax Code Review. Build capacity and train small business 2-5 small (sector) In progress WP Apr-15 Range of dates was & Civil Society association on advocacy on tax issues in coordination with CSOs business associations amended from Mar- Organizations (AmCham, ICC, and BAG). trained Sep-15 May to Apr-Sep, Strengthening 2015 due to lack of responses to the RFA; rebid is underway.

5.3.2. Tax Code Review. Conduct of RIA on selected tax code RIA report Planned WP May-15 changes. Engage think tanks to conduct RIA. Aug-15

5.3.3. Tax Code Review. Conduct business perception survey Business perception In progress WP May-15 RFA approved by (baseline and follow up) in coordination with CSOs (AmCham, survey USAID, solicitation ICC, BAG). Aug-15 issued.

6. Customs Administration and Enforcement

6.1. Support Public 6.1.1. Customs Code. Organize PPD events on draft Customs 3-4 PPD events In progress WP Mar-15 Range of dates was Private Dialogue Code to be released for public comments in December 2014. amended from Dec, Sep-15 2014-Feb, 2015 to Mar-Sep, 2015 due to MoF’s delay in finalizing the draft Customs Code.

6.2. GoG Capacity 6.2.1. Authorized Economic Operators (AEO) Concept. Conduct (1) Analysis In progress WP Feb-15 End date was Organizations analysis of EU best practice and study visit to selected EU Sep-15 amended from March Strengthening locations. to Sep, 2015 to fit the RS/WCO joint AEO workshop schedule (end of May), where the findings of the

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 39 January 01 – March 31, 2015

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analysis will be discussed and finalized.

(2) Study tour Planned WP Jun-15 Range of dates was Aug-15 moved from Feb-Mar to Jun-Aug, 2015 as a result of new timetable of AEO analysis.

6.2.2. Authorized Economic Operators (AEO) Concept. Develop Recommendations Planned WP Jun-15 Range of dates was recommendations based on EU guidelines. Sep-15 amended from Feb- May to Jun-Sep, 2015 as a result of new timetable of AEO analysis.

6.2.3. Customs Post-Clearance Control. Conduct trainings and 10 officers trained Planned WP Mar-15 End date was simulated field audit for RS audit staff. amended from May Sep-15 to Sep, 2015 due to changed RS priorities to conduct assessment first and then implement capacity building activities including training.

6.2.4. NEW: Customs Post-Clearance Control. Conduct diagnostic NEW: Planned QR2 May-15 assessment and develop recommendations on implementation of Recommendations EU standards on customs post-clearance control by international Sep-15 consultant.

6.2.5. Customs Post-Clearance Control. Support offsite training of RS Audit staff trained Completed WP Apr-15 In February WCO Georgian customs auditors on EU best practice customs conducted one-week administration. Sep-15 training session on

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 40 January 01 – March 31, 2015

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Post-Clearance Customs Control for 14 RS customs officers. Any future possible capacity building activities by G4G in this area will follow the diagnostic assessment.

6.3. Private Sector 6.3.1. Customs Code. Develop Customs Code commentaries and Customs Code Planned WP May-15 Contingent upon & Civil Society conduct outreach activities to increase private sector awareness commentary adoption of Customs Organizations on new customs legislation. Engage business association (e.g. Oct-15 Code. Strengthening Freight-Forwarders Association) to develop Customs Code commentaries (Guidebook).

7. Trade Facilitation/Transport and Logistics

7.1. Support Public 7.1.1. DCFTA. Facilitate GoG's thematic DCFTA awareness 3-5 public awareness Completed WP Nov-14 3 PPDs held. G4G Private Dialogue raising meetings in coordination with MoESD and business events will conduct more associations in G4G supported policy areas. Apr-15 PPD events to accommodate GoG request.

7.1.2. DCFTA. Develop and print leaflets for DCFTA public 2,000 leaflets printed In progress WP Jan-15 500 leaflets were awareness. printed. The end date Sep-15 was extended from Feb to Sep, 2015 to enable the printing of more copies as needed.

7.1.3. NEW: DCFTA. Develop DCFTA public awareness video. Video In progress QR1 May-15 Vendor selected, high-level concept Jul-15 developed.

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 41 January 01 – March 31, 2015

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7.1.4. Trade Facilitation System (TFS). Conduct PPD on TFS 1-2 PPD Events Completed WP Jan-15 G4G brokered the development and implementation issues. consensus building Feb-15 between private and public sector stakeholders.

7.2. GOG Capacity 7.2.1. No specific activities are planned. Strengthening

7.3. Private Sector 7.3.1. DCFTA. Support production of plain language guide (online DCFTA Guide In progress WP Mar-15 & Civil Society version and 300 printed copies) for private sector on rules of origin Organizations and customs tariffs and quotas for Georgian produced goods Sep-15 Strengthening under DCFTA assuming no guide exists.

7.3.2. NEW: DCFTA. Facilitate analysis-based discussion on NEW: 3 Policy Papers Planned Q2 Apr-15 DCFTA issues. on Selected DCFTA topics Sep-15

8. Bankruptcy and Liquidation

8.1. 8.1. Support Public 8.1.1. Insolvency Assessment. Conduct PPD on the need for 1-3 PPD events Planned WP Mar-15 Private Dialogue insolvency reform as a necessary tool for entrepreneurship. Jul-15

8.2. GOG Capacity 8.2.1. Insolvency Assessment. Analyze legislation and existing (1) Assessment In progress WP Apr-15 Range of dates was Strengthening practice on insolvency rules and procedures, identify problematic amended from Feb- issues and develop recommendations. Jun-15 Mar to Apr-Jun, 2015 due to requests from MoJ regarding needed assistance.

(2) Recommendations Planned WP Apr-15 Range of dates was amended from Feb- Jun-15 Mar to Apr-Jun, 2015 due to requests from MoJ regarding

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 42 January 01 – March 31, 2015

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needed assistance.

8.3. Private Sector 8.3.1. No specific activities are planned. & Civil Society Organizations Strengthening

9. Land Ownership, Registration and Titling

9.1. Support Public 9.1.1. Legal Strategy PPD. (1) Facilitate workshops for civil sector 2-3 workshops In progress WP Jan-15 Private Dialogue representatives in the process of developing the Legal Strategy and draft law; (2) Engage TI to lead the process. Sep-15

9.2. GOG Capacity 9.2.1. Land Registration Strategy. (1) Provide comments on Land (1) Comments Completed WP Nov-14 Strengthening Registration Pilot Project Strategy and Action Plan via WB peer review; (2) Develop detailed draft implementation task list for the Nov-14 pilot project. (2) Implementation Completed WP Nov-14 task list Nov-14

9.2.2. Preparation for Pilot. (1) Support expanding legal strategy Draft Legal strategy Completed WP Nov-14 and draft law beyond agricultural land; (2) Propose customized and draft law dispute mitigation and resolution mechanisms for pilot land Jan-15 registration.

9.2.3. Preparation for Pilot. Support in development of Draft Communication Completed WP Jan-15 To be submitted to Communication Strategy and Action Plan for the pilot project. Strategy and Action USAID by Apr 10, Plan Mar-15 2015.

9.3. Private Sector 9.3.1. Preparation for Pilot. Deliver trainings for mediators involved 2 Mediators trained Planned WP Jun-15 Output was changed & Civil Society in pilot project implementation through engaging Tbilisi State from “5-7 Mediators Organizations University (TSU) Mediation Center. Nov-15 trained” to “2 Strengthening . Mediators trained”, due to G4G’s decision to issue at initial stage a grant

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 43 January 01 – March 31, 2015

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covering only the first pilot municipality (Manglisi) as opposed to original plan to issue a grant for entire pilot duration and 11 municipalities. Range of dates was amended from Mar- Apr to Jun-Nov, 2015 to follow the new timetable of the pilot project implementation. This activity is contingent upon starting of pilot project by NAPR.

9.3.2. Preparation for Pilot. Conduct trainings to community Community leaders Planned WP Mar-15 This activity is leaders on effective public outreach during the implementation of trained contingent upon the pilot project. Sep-15 starting of pilot project by NAPR.

Pilot Implementation. Monitor land pilot project implementation and Monitoring report and Planned WP Mar-15 This activity is collection of lessons learned through engagement of NGO. lessons learned contingent upon Sep-15 starting of pilot project by NAPR.

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 44 January 01 – March 31, 2015

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10. Pension Reform

10.1. Support 10.1.1. PPD on Pension. Facilitate PPD event on pension reform 3-5 PPD meetings Postponed WP May-15 Due to the GoG’s Public Private through the involvement of business associations. to Y2 decision to postpone Dialogue Sep-15 the implementation of the new pension system to 2017, G4G plans to move this activity to Year 2 of the project.

10.2. GOG 10.2.1. Public Outreach. Provide advisory support in designing the Recommendations to Postponed WP Feb-15 Capacity public outreach campaign for the reform. GoG on public to Y2 Strengthening outreach campaign Mar-15

10.2.2. Regulatory Impact Assessment. Conduct RIA on Pension RIA Report Postponed WP Apr-15 Reform jointly implemented by think-tank and MoESD. to Y2 Jul-15

10.2.3. Legal drafting. Provide assistance in drafting the Comments to the draft Postponed WP Jul-15 legislation on pension scheme. to Y2 Oct-15

10.2.4. NEW: Capacity building of GoG officials on designing NEW: 1 MoF staff In progress QR2 April-15 pension reforms. Sending GoG staff involved in the reform process trained to WB’s two-week Pension Core Course. May-15

10.3. Private Sector 10.3.1. Regulatory Impact Assessment. Conduct RIA on Pension RIA Report Postponed WP Apr-15 Due to the GoG’s & Civil Society Reform jointly implemented by think-tank and MoESD. to Y2 decision to postpone Organizations Jul-15 the implementation of Strengthening the new pension system to 2017, G4G plans to move this activity to Year 2 of the project.

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 45 January 01 – March 31, 2015

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11. Capital Market Reform

11.1. Support 11.1.1. Capital Market PPD. Conduct PPD event to identify policy PPD event Planned WP Jan-15 Public Private issues related to capital market. Dialogue Jun-15

11.2. GOG 11.2.1. Diagnostic Assessment. Provide input to Diagnostic Input to Diagnostic In progress WP Jan-15 70 percent of the Capacity Assessment led by ADB to identify the constraints preventing Assessment assessment Strengthening companies from listing on GSE and utilizing capital market Jul-15 completed. opportunities through providing legal and analytical human resources.

11.3. Private Sector 11.3.1. No specific activities are planned. & Civil Society Organizations Strengthening

12. Crop Insurance

12.1. Support 12.1.1. Crop Insurance PPD. Conduct public-private round tables 2-5 PPD events Completed WP Dec-14 2 PPD events Public Private on draft crop insurance law. conducted. Dialogue Sep-15

12.2. GOG 12.2.1. Regulatory Impact Assessment. Conduct RIA on crop RIA Report In progress WP Apr-15 End date of this Capacity insurance reform jointly implemented by a think-tank and MoA. activity was amended Strengthening Sep-15 from Jul to Sep, 2015. RIA will start as soon as KfW release the alternative model of state agro insurance, which is anticipated in May, 2015.

12.3. Private Sector 12.3.1. Crop Insurance Product Development. Provide support to (1) Consultations Planned WP Jan-15

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 46 January 01 – March 31, 2015

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& Civil Society crop insurance product development through grant to provide TA Sep-15 Organizations and trainings to farmer organizations to develop crop insurance Strengthening products. (2) Training Planned WP Jan-15 Sep-15

12.3.2. Regulatory Impact Assessment. Conduct RIA on Crop RIA Report Planned WP Apr-15 End date of this Insurance Reform jointly implemented by think-tank and MoA. activity was amended Sep-15 from Jul to Sep, 2015. RIA will start as soon as KfW release the alternative model of state agro insurance, which is anticipated in May, 2015.

13. Innovation and Technology/SME Policy

13.1. Support 13.1.1. Innovation PPD. Conduct PPD event on Innovation Law 2 PPD Events In progress WP Dec-14 End date of this Public Private and SME policy and/or dialogue. activity was amended Dialogue Jul-15 from Feb to Jul, 2015 as a result of delay in law drafting process.

13.1.2. Innovation legislation review. Conduct review the effect of Review report Planned WP Dec-14 End date of this GoG incentives package designed to stimulate innovation and activity was amended Sep-15 recommendations. from Feb to Sep, 2015 as a result of delay in law drafting process.

13.2. GOG Capacity 13.2.1. No specific activities are planned. Strengthening

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 47 January 01 – March 31, 2015

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13.3. Private Sector 13.3.1. No specific activities are planned. & Civil Society Organizations Strengthening

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 48 January 01 – March 31, 2015

ANNEX 1: PMP INDICATORS QUARTERLY RESULTS

Cumulative Indicator Q2 Cumulative Results3 2015 Target Target

1.1 Number of public institutions or CSOs with an established public engagement DCFTA PPD Mechanism at the MoESD 1 3 mechanism through G4G support. Q2, 1 mechanism established. Short clarification: The indicator will count only public or CSOs 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 and implementation of reforms Q2, 14 completed steps. 10 40 through a consultative process as a result of USAID assistance. (USAID Indicator) Short clarification: The indicator will count completed steps of policy process related to the targeted reforms, including reforms related to the 3rd and 4th components.

 Analysis Land Registration reform; Tax Payment N/A N/A Reform; Georgian Energy Policy; 10 Year Network Development Plan. Q2, 4 completed steps.

 Stakeholder consultation/public debate Land Registration reform; Tax Payment N/A N/A Reform; Georgian Energy Policy; 10 Years Network Development Plan. Q2, 4 completed steps.

 Drafting or revision Law on Electricity and Natural Gas; Land N /A N/A Registration reform; Tax Payment Reform; Georgian Energy Policy; 10 Year Network Development Plan. Q2, 5 completed steps.

33 Q2 cumulative data includes cumulative results for the Q1 and Q2 periods.

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 49 January 01 – March 31, 2015

Cumulative Indicator Q2 Cumulative Results3 2015 Target Target

 Approval (legislative or regulatory) Law on Electricity and Natural Gas. N/A NONE. Q2, 1 completed step.

 Full and effective implementation Q2, No completed steps. N/A N/A

1.3 Number of agricultural and nutritional enabling environment policies completing the Q2, 3 completed steps. 3 10 following processes/steps of development as a result of G4G assistance in each case (Stage 1/2/3/4/5). (USAID FTF Indicator) Short clarification: The indicator will count completed steps of policy process related to the targeted agricultural and nutritional enabling environment policies.

 Analysis Land Registration reform. 1 3 Q2, 1 completed step.

 Stakeholder consultation/public debate Land Registration reform. 1 2 Q2, 1 completed step.

 Drafting or revision Land Registration reform. 1 2 Q2, 1 completed step.

 Approval (legislative or regulatory) Q2, No completed steps. 2

 Full and effective implementation Q2, No completed steps. 1

1.4 Number of policy areas on which PPD events were initiated through G4G support or Tax Payment Reform; Food Safety Reform 4 21 through G4G supported platforms. under DCFTA; Foreign Land Ownership; Crop Insurance Development; Short clarification: The indicator will count the number of policy areas on which PPDs were Establishment of Consolidator for Small initiated through G4G support or through using G4G supported platforms, including reforms Hydropower Plant; DCFTA Policy Areas; related to the 3rd and 4th components. Under PPDs we assume thematic meetings with Customs Legislation. the participation of all major stakeholders, such as GoG, CSOs and private sector representatives. Q2, 7 policy areas

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 50 January 01 – March 31, 2015

Cumulative Indicator Q2 Cumulative Results3 2015 Target Target

1.5 Number of the PPD events conducted through G4G support. PPD on Tax Payment Reform, November 11 71 19, 2014; Short clarification: The indicator will count PPD events conducted through G4G support, including PPDs related to the 3rd and 4th components. Under PPDs we assume thematic PPD on Food Safety Reform under DCFTA, meetings with the participation of major stakeholders, such as GoG, CSOs and private 26 December, 2014; sector representatives. The indicator will disaggregate the PPDs according to the regions PPD on Foreign Land Ownership, February where the PPDs took place. 13, 2015; PPD on Crop Insurance Development, Current Challenges and Perspectives, February 10, 2015; PPD on Establishment of Consolidator for Small Hydropower Plant, March 11, 2015; PPD on DCFTA Awareness Raising Event, March 23, 2015. (In Ozurgeti); PPD on DCFTA Awareness Raising Event, March 24, 2015. (In Poti); PPD on Customs Legislation, March 26, 2015; PPD on Women's Role in Economic Growth and Policy Development, March 31, 2015; Q2, 9 PPDs (among them 2 outside of Tbilisi).

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 51 January 01 – March 31, 2015

Cumulative Indicator Q2 Cumulative Results3 2015 Target Target

2.1 Number of Governmental institutions (including Legal Entities of Public Law, State RS ( 2 times through technical assistance); 10 46 Owned Enterprises) receiving capacity building assistance through G4G support to NAPR (2 times through training activities); develop, implement, and enforce the targeted reforms. MoE (2 times through training activities); Short clarification: The indicator will count each governmental institution that received capacity building assistance through G4G support to develop, implement, and enforce the GNERC (2 times through training activities); targeted reforms. If the institution received different types of assistance, each will be ESCO (2 times through training activities); counted separately. The indicator also will capture governmental institutions classified under 3rd and 4th components. GSE (2 times through training activities); MENPR (1 time through training activities); Q2, 13 Institutions

2.2 Number of the legal acts, policy documents, policy related documents, measures or Land Registration Reform; Package on Tax 5 33 programs provided or substantially contributed by the targeted GoG institutions through Payment Reform Draft laws; Draft Law on G4G assistance. Electricity and Natural Gas; Draft Law on Georgian Energy Policy; The EU VAT Short clarification: The indicator will count every legal act, policy documents, policy related Directive; 10 Year Network Development documents, measures or programs provided or substantially contributed to a GoG Plan. institution through G4G assistance. The indicator also will include the legal acts, policy documents, policy related documents, measures or programs related to the 3rd and 4th Q2, 6 Policy documents. components.

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 52 January 01 – March 31, 2015

Cumulative Indicator Q2 Cumulative Results3 2015 Target Target

2.3 Number of participants in G4G supported trade and investment capacity building Workshop for electricity market players, (12 80 460 trainings. (USAID Indicator) participants - 11 males and 1 female), 40 M, 40 F 230 M,230 F December 17, 2014. Short clarification: The indicator will count every person from GoG, CSOs or private sector receiving G4G supported trainings on trade and investment capacity building. If one person Workshop on Electricity Trading Mechanism receives several trainings on different issues, each instance will be counted separately. Implementation (5 participants - 4 males and The indicator also will include corresponding trainings relevant to the 3rd and 4th 1 female) December 26, 2014. components. The indicator data will be disaggregated based on Gender. Workshop on ETM Development (25 participants, 15 males and 10 female), March 11, 2015; Workshop for electricity market players, 2nd workshop, (20 participants, 16 males and 4 females), January 29, 2015; Workshop for electricity market players, 3rd workshop, (7 participants, 5 males and 2 females), February 25, 2015; Connection Workshop for GNERC, (15 participants, 10 males and 5 females), 11 March, 2015; On-job Training to MENRP on Improvement of Fresh Water Resource Management by GAMMA, 12 February 9 participants, 4 males and 5 females). Q2, 93 participants (65 males and 28 females).

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 53 January 01 – March 31, 2015

Cumulative Indicator Q2 Cumulative Results3 2015 Target Target

2.4 Number of GoG staff receiving training through G4G support to develop, implement, Workshop on Electricity Trading Mechanism 30 210 and enforce targeted reforms. Implementation, December 26, 2014, 5 15 M, 15 F 105 M, 105 F persons (4 males and 1 female). Short clarification: The indicator will count every person from the public sector receiving

G4G supported trainings to develop, implement, and enforce targeted reforms. If one Workshop on Land Registration, January person receives several trainings on different issues, each instance will be counted 15-16, 2015 (11 persons: 6 males and 5 separately. The indicator also will include corresponding trainings relevant to the 3rd and females); 4th components. The indicator data will be disaggregated based on Gender. On-job Training to MENRP on Improvement of Fresh Water Resource Management by GAMMA, February 12, 2015 (5 persons: 2 males and 3 females); Workshop on ETM Development, March 11. 2015 (9 persons: 4 males and 5 females); The 1st Connection Workshop for GNERC, February 25, 2015 (8 persons: 6 males and 2 females); The 2nd Connection Workshop for GNERC, March 24, 2015 (10 persons: 7 males and 3 females). Q2, 48 persons from the government (29 males and 19 females).

3.1 Number of policy related documents or legal acts agreed with or initiated for adoption Water Quality and Resource Management 1 5 by GoG stakeholders on water resource management through G4G support. Map, initiated in January, 2015 Short clarification: The indicator will count each policy related documents or legal acts Q2, 1 Policy Document agreed with or initiated for adoption by GoG stakeholders on water resource management through G4G support.

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 54 January 01 – March 31, 2015

Cumulative Indicator Q2 Cumulative Results3 2015 Target Target

3.2 Number of PPDs events conducted to advance water sector policies through G4G Q2, No completed results. 2 12 support. Short clarification: The indicator will count each PPD event conducted to advance water sector policies through G4G support. Under PPDs we assume thematic meetings with the participation of major stakeholders, such as GoG, CSOs and private sector representatives.

3.3 Number of people receiving G4G supported training on natural resources management On-job Training to MENRP on Improvement 20 120 and/or biodiversity conservation. (USAID Indicator) of Fresh Water Resource Management by 10 M, 10 F 60 M, 60 F GAMMA, 12 February (9 participants, 4 Short clarification: The indicator will count each person from GoG, CSOs or private sector males and 5 females). receiving USG supported trainings on natural resources management and/or biodiversity conservation issues. If one person receives several trainings on different issues, each Q2, 9 participants (4 males and 5 instance will be counted separately. The indicator data will be disaggregated based on females). Gender.

4.1 Number of legal acts agreed with or initiated for adoption by GoG stakeholders, Law on Georgian Energy Policy was 3 15 according to GEMM 2015 legal/regulatory framework through G4G support. initiated; Law on Electricity and Natural Gas was adopted in December, 2014; 10 Year Short clarification: The indicator will count each legal act agreed with or initiated for Network Development Plan was initiated in adoption by GoG stakeholders, according to GEMM 2015 legal/regulatory framework January, 2015. through G4G support. Q2, 3 legal acts.

4.2 Number of PPDs conducted through G4G support to advance energy sector policies. PPD on Establishment of Consolidator for 3 23 Small Hydropower Plant, March 11, 2015. Short clarification: The indicator will count each PPD event conducted through G4G support to advance energy sector policies. Under PPDs we assume thematic meetings Q2, 1 PPD. with the participation of major stakeholders, such as GoG, CSOs and private sector representatives.

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 55 January 01 – March 31, 2015

Cumulative Indicator Q2 Cumulative Results3 2015 Target Target

4.3 Number of people receiving G4G supported trainings in energy related business Workshop for electricity market players, 1st 20 180 management system. (USAID Indicator) workshop, (12 participants, 11 males and 1 10 M, 10 F 90 M, 90 F female), December 17, 2014. Short clarification: The indicator will count each person from GoG, CSOs or private sector receiving G4G supported training in energy related business management system issues. Workshop on ETM Development (25 If one person receives several trainings on different issues, each instance will be counted participants, 15 males, 10 females), March separately. The indicator data will be disaggregated based on Gender. 11, 2015. Workshop for electricity market players, 2nd workshop, (20 participants, 16 males and 4 females), January 29, 2015. Workshop for electricity market players, 3rd workshop, (7 participants, 5 males and 2 females), February 25, 2015. Q2, 64 participants, 47 males and 17 females.

4.4 Number of people receiving G4G supported training in energy related policy and Workshop on Electricity Trading Mechanism 25 110 regulatory practices. (USAID Indicator) Implementation, (5 participants, 4 males and 13 M, 12 F 55 M, 55 F 1 female), December 26, 2014. Short clarification: The indicator will count each person from GoG, CSOs or the private sector receiving G4G supported trainings in energy related policy and regulatory practice Connection Workshop for GNERC, (15 issues. If one person receives several trainings on different issues, each instance will be participants, 10 males, 5 females), 11 counted separately. The indicator data will be disaggregated based on Gender. March, 2015. Q2, 20 participants, 14 males and 6 females.

4.5 Energy amount of cross-border electricity traded that is attributable to G4G assistance. Q2, 295 GWh 300 GWh 2230 (USAID Indicator) GWh Short clarification: This indicator will measure the amount of cross border energy traded between Georgia and Turkey. The included target data is for the fiscal year (i.e., October 1 – September 30). The data source for measuring actual performance will come directly from the website of the Electricity System Commercial Operator (ESCO).

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 56 January 01 – March 31, 2015

Cumulative Indicator Q2 Cumulative Results3 2015 Target Target

5.1 Number of private and civil society organizations received capacity building assistance 1st Electricity Market Players Workshop, 10 65 through G4G on development, implementation, and enforcement of targeted reforms. December 17, 2014. (12 businesses). Short clarification: The indicator will count each private and civil society organization that 2nd Electricity Market Players Workshop, received capacity building assistance through G4G support to develop, implement, and January 29, 2015. (13 businesses). enforce the targeted reforms. If the organization receives different types of assistance, 3rd Electricity Market Players Workshop, each will be counted separately. The indicator also will capture organizations classified February 25, 2015. (4 businesses). under 3rd and 4th components. Workshop on ETM Development, March 11, 2015. (7 businesses). On-job Training to MENRP on Improvement of Fresh Water Resource Management by GAMMA, February 11, 2015. (1 business) Workshop on Land Registration, January 15-16, 2015. (2 NGOs). Q2, 37 Businesses and 2 NGOs.

5.2 Number of quality services/products provided by professional business associations & Q2, No completed results. 2 9 think tanks to their clients as a result of USG assistance. (USAID Indicator) Short clarification: This indicator measures the number of quality of services such as research, policy advice in 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.

5.3 Number of journalists trained through G4G support to provide credible and reliable Q2, No completed results. 8 48 reporting on issues affecting Georgia’s business enabling environment. 4 M, 4 F 24 M, 24 F Short clarification: The indicator will count each journalist receiving G4G supported training on relevant subjects. If one person receives several trainings on different issues, each instance will be counted separately. The indicator data will be disaggregated based on Gender.

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 57 January 01 – March 31, 2015

Cumulative Indicator Q2 Cumulative Results3 2015 Target Target

5.4 Number of persons from private and civil society organizations receiving training Workshop for electricity market players, (12 50 295 through G4G support on the development, implementation, and enforcement of the participants, 11 males and 1 female), 25 M, 25 F 148 M, 147 F targeted reforms. December 17, 2014. Short clarification: The indicator will count each person from private and civil society 2nd Electricity Market Players Workshop, organizations receiving G4G supported trainings to develop, implement, and enforce the January 29, 2015. (21 participants: 17 males targeted reforms. If one person receives several trainings on different issues, each and 4 females). instance will be counted separately. The indicator also will include corresponding trainings 3rd Electricity Market Players Workshop, relevant to the 3rd and 4th components. The indicator data will be disaggregated based on February 25, 2015. (22 participants: 18 Gender. males and 4 females). Workshop on ETM Development, March 11, 2015. (9 participants: 7 males and 2 females). Workshop on Land Registration, January 15-16, 2015. (2 participants: 1 male and 1 female). Q2, 66 participants: 44 males and 12 females.

6.1 Proportion of females who report increased self-efficacy at the conclusion of G4G Q2, No completed results. 70% 70% supported 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.

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 58 January 01 – March 31, 2015

ANNEX 2: DONOR COORDINATION MATRIX

Time Contact Donor G4G Supported Donor Donor Project Title Contact Information Frame Person/Role Funding Reform ADB Georgia: Strengthening 2014 Kathie Julian [email protected] USD 0,5 M Capital Market and Pension Domestic Resource 2016 Resident Tel.: +(995) 322 250 619 Reform Mobilization Representative ADB Road Corridor Investment 2011 Giorgi Kiziria, [email protected] USD 140 M TBI Project 2015 Deputy Team Leader

ADB Urban Services 2013 Irakli Chkhonia, [email protected] USD 0,1 M TBI Improvement Investment 2018 Senior Project Project Officer EU Environmental Protection 2012 Zurab Jincharadze, [email protected] EUR 7,5 M Development of Water of International River 2016 River Basin Resource Management Basin Project Management Expert plans EU Twinning Project - 2014 Irakli Khmaladze, [email protected] EUR 1,3 M Tax Reform (Tax payment Strengthening 2015 Project Manager simplification, Tax Administrative Capacity of Regulatory Review) the Georgia RS in Taxation EU TA for Enguri / Vardnili 2010 Muriel Lumbert, [email protected] EUR 1,04 M ETM Development HPP Rehabilitation 2015 Project Manager EU INOGATE (Regional 2012 Nikos Tsakalidis, [email protected] EUR 16,6 M ETM Development Project) 2015 Deputy Team Leader EU EIB-03 Technical 2010 Alvaro Ortega [email protected] EUR 0,42 M Development of Water Assistance for the Water 2016 Aparicio, Programe [email protected]; Resource Management Infrastructure Manager Tel.: (+995 32) 2943763 plans Modernization and Development Project EBRD, KfW Georgia - Jvari - Khorga 2013 Nino Shanidze, [email protected] EUR 60 M ETM Development Interconnection 2016 Senior Project Coordinator KfW Rehabilitation of drinking, 2010 Nino Shanidze, [email protected] EUR 101,8 M Development of Water waste and rainwater 2015 Senior Project Resource Management systems in Batumi Coordinator plans GIZ Private Sector 2013 Marieta Riedel, [email protected] TBI Tax Reform; Customs Development Project in 2016 Expert Administration and

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 59 January 01 – March 31, 2015

Time Contact Donor G4G Supported Donor Donor Project Title Contact Information Frame Person/Role Funding Reform the South Caucasus Enforcement

Norwegian NEW: Sustainable 2012 Endre Ottosen, [email protected] TBI Energy Strategy Ministry of Hydropower Development 2015 Project Coordinator Development; Foreign Water Resource Affairs Management Norwegian NEW: Promoting 2013 Maka Bitsadze, [email protected] TBI Energy Strategy Ministry of Sustainable Dam 2014 Project Regional Development; Foreign Development at River- Coordinator Water Resource Affairs Basin-Scale in the Management Southern Caucasus Norwegian NEW: Institutional 2013 Kjell Repp, [email protected] NOK 13,68 Water Resource Ministry of Cooperation Between 2016 Head of Management Foreign Norwegian Water International Affairs Resources and Energy Section Directorate and Ministry of Energy and Natural Resources of Georgia Norwegian SPARE- International 2012 Madona [email protected]; TBI Energy Strategy Society for School Project for 2015 Pirvelashvili, Project [email protected] Development the Application of Resources Coordinator Conservation and Energy of Nature IFC Georgia Investment 2013 Eka Avaliani, [email protected] USD 1,8 M Tax Reform; Customs Climate Project 2016 Operations Officer Cell: +(995) 599 560 229 Administration and Enforcement IFC Infra Clean Energy Invest 2012 Bjorn Brandizarg, [email protected] USD 700 M ETM Development Ventures 2015 Consultant

Swiss Inclusive Growth 2013 Lasha Labadze, [email protected] GEL 0,14 M Overall Institutionalized Cooperation Dialogues 2014 Deputy Director Framework for Public Office ISET Policy Institute Consultation and support on G4G targeted reform areas Czech Pilot Project for 2013 George [email protected] CZK 12,63 M Development of Water Development Introduction of an 2015 Gaprindashvili, Cell: +(995) 591 404 043 Resource Management Agency Information System for Leading Specialist plans (CzDA) Data Transferring and Head of Projects Groundwater Monitoring and Analytical

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 60 January 01 – March 31, 2015

Time Contact Donor G4G Supported Donor Donor Project Title Contact Information Frame Person/Role Funding Reform Network in Kvareli and Department Lagodekhi Municipalities

European Water Infrastructure 2013 Paata Iakobashivli [email protected]; EUR 40 M Development of Water Investment Modernization II 2018 (from MDF) Head of [email protected] Resource Management Bank Projects and plans Analytical Department EBRD Support Public Private 2015 Bruno Balvanera, [email protected] TBD Overall Institutionalized Dialogue 2018 Director (Caucasus, Framework for Public Moldova and Consultation and support on Belarus) G4G targeted reform areas USAID Judicial Independence 2010 George Chkheidze, [email protected] USD 19 M Alternative dispute and Legal Empowerment 2014 DCOP Cell: +(995) 599 515 662 resolution mechanism for Project (JILEP) pilot land registration USAID Enhancing Capacity for 2013 Danna Kenney, [email protected] USD 6 M Energy Strategy Low Emission 2018 COP [email protected] Development Development Strategies Inga Pkhaladze +(995) 32 2 50 63 43 (EC LEDS) DCOP USAID Integrated Natural 2012 Marika Shotadze, [email protected] USD 5 M Development of Water Resources Management 2014 Program Director Resource Management in Watersheds of Georgia plans USAID Advancing CSO 2014 Tamar Karosanidze, [email protected] USD 5,5 M Overall Institutionalized Capacities and Engaging 2019 COP Cell: +(995) 599 902 298 Framework for Public Society for Consultation and support on Sustainability (ACCESS) G4G targeted reform areas USAID Media for Transparent 2014 Lika [email protected] USD 5,1 M Overall Institutionalized and Accountable 2019 Chakhunashvili, Cell: +(995) 599 902 298 Framework for Public Governance (M-TAG) COP Consultation and support on Program G4G targeted reform areas USAID USAID/Strengthening 2013 Roland Smith, [email protected] USD 0,88 M TBI Extension and Advisory 2015 Expert Services in Georgia (SEAS) USAID Georgian Human and 2011 Roman [email protected] USD 5,7 M GoG and CSOs capacity Institutional Capacity 2015 Tsutskiridze, COP building in G4G targeted Development (HICD) Plus reform areas Project

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 61 January 01 – March 31, 2015

Time Contact Donor G4G Supported Donor Donor Project Title Contact Information Frame Person/Role Funding Reform USAID Restoring Efficiency to 2013 Luisa [email protected] USD 19,5 M Crop Insurance Agricultural Production 2018 Namicheishvili, Cell: +(995) 595 030 353 (REAP) DCOP USAID NARUC- Black Sea 2006 Jargalan [email protected] USD 0,2 M ETM Development Regulatory Initiative 2020 Jambaldorj, Senior Program Officer

USAID AGT/Black Sea 2011 Will Polen, Senior [email protected] USD 0,08 M ETM Development Transmission Project 2017 Director USAID NEW: New Economic 2014 Kirk Ramer, [email protected]; TBD Overall Institutionalized Opportunities Initiative 2015 COP Tel.: +(995) 32 225 05 61 Framework for Public (NEO) Consultation and support on G4G targeted reform areas USAID NEW: Supporting Local 2014 Nino Lomjaria, [email protected] TBD Overall Institutionalized Self-Governance Reforms 2015 COP Cell: +(995) 555 02 02 00 Framework for Public in Georgia Consultation and support on G4G targeted reform areas USAID NEW: Good Governance 2015 David Smith, COP [email protected] USD 11 M Assistance on strengthening Initiative in Georgia (GGI) 2020 Cell: +(995) 598 24 77 47 key governance reforms

USAID NEW: Momavlis Taoba 2014 Marina Ushveridze, [email protected] TBD Youth involvement (Future Generation) 2017 COP Tel.: +(995) 322 990049 Project Tel.: +(995) 322 233338 U.S. Revenue Advisor 2012 Davit Koguashvili, [email protected] USD 1.M Tax Reform; Customs Treasury Program 2017 Consultant Cell: +(995) 599 121 120 Administration and Office of Enforcement Technical Assistance WB Transmission Grid 2014 Joseph Melitauri, [email protected] USD 61,88 M ETM Development Strengthening Project 2019 Senior Operations Officer WB South Caucasus Financial 2014 Angela Prigozina, [email protected] TBI Pension Reform Sector Advisory Project, 2017 Country Sector Tel.: +(995) 322 296 228 Capital Markets and Coordinator Pension Reform Technical Assistance

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 62 January 01 – March 31, 2015

Time Contact Donor G4G Supported Donor Donor Project Title Contact Information Frame Person/Role Funding Reform WB Development Policy 2012 John Gabriel [email protected] TBI Capital Market Reform Operation (DPO) Series 2015 Goddard, Senior Economist WB Irrigation and Land 2014 Kathrine M. Kelm, [email protected] USD 50 M Land registration pilot Market Development 2019 Senior Land project implementation Project Administration Specialist WB Youth Inclusion and 2014 Michelle P. Rebosio [email protected] USD 0,50 M TBI Social Accountability 2016 Calderon, Social Tel.: +(995) 322 907 484 Project Development Specialist UNDP UNDP/GEF Kura Ara(k)s 2009 Nino Antadze, [email protected] USD 2,9 M Development of Water project 2014 Energy and Cell.: (+995) 599 562 200 Resource Management Environment Team plans Leader UNDP Climate Resilient Flood 2012 Ivane Tsiklauri, [email protected] USD 5,06 M Development of Water and Flash Flood 2016 Project Manager Resource Management Management plans

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 63 January 01 – March 31, 2015

ANNEX 3: UTILIZATION OF USG PERSONNEL AND COLLABORATION WITH OTHER DONOR-FUNDED PROJECTS COLLABORATION WITH OTHER USG PERSONNEL USDA: G4G met with Bella Gordon, program specialist of United States Department of Agriculture (USDA) Forest Service International Programs. The aim of the meeting was to discuss the future cooperation between USDA and G4G as well as the status of the ongoing activities in water resources management. COLLABORATION WITH OTHER USAID PROJECTS G4G initiated a multiproject coordination strengthening effort to better leverage USAID resources in achieving reform results. USAID projects representatives decided to hold regular bi-monthly coordination meetings to avoid overlapping of activities and ensure cross-cooperation in gender, youth, grants and other common components. Two coordination meetings were held during the 2nd quarter with the following projects: GGI, ISFED, HICD Plus, REAP, JILEP, ACCESS, EC LEDS, M- TAG, and NEO. GGI: G4G agreed with GGI to collaborate on implementation of RIA institutionalization promotion activities. M-TAG: G4G agreed with M-TAG to collaborate on building capacity of regional media outlets. ACCESS: G4G collaborated with ACCESS to organize a PPD event under DCFTA awareness campaign in Civic Engagement Center in Ozurgeti. Another potential area of cooperation is building the GoG’s and CSOs’ capacity on RIA. INRMW: G4G works with USAID-funded Integrated Natural Resources Management in Watersheds (INRMW) project. G4G will build on its water-related activities on the work that has been implemented under the INRMW. EC-LEDS Clean Energy Program: G4G is collaborating with USAID EC-LEDS Clean Energy program implemented by Winrock International to develop Business As Usual scenario for MARKAL Georgia Model for strategic planning. G4G will use data sets developed by Analytical Department of MoE supported by EC-LEDS project and will run different scenarios in MARKAL Georgia. The outputs of the MARKAL Georgia will be used by MoE for Energy Strategy development. COLLABORATION WITH OTHER DONOR-FUNDED PROJECTS EU: G4G works closely with EU Delegation to Georgia. G4G will complement work done by the EU related to water resource management in Georgia. EU Twinning Project: G4G closely collaborates with EU Twinning Project “Strengthening Administrative Capacity of the Georgian RS in Taxation” within the MoF’s WG to develop the Action Plan on Approximation of Tax Code with EU VAT Directive. EU Twinning consultant brings European expertize on VAT while G4G consultant’s added value is the deep knowledge of Georgian tax system and thorough understanding of local context. EBRD: G4G agreed with EBRD to collaborate on delivering a high level of consulting service and added value to the overall working of the PPD platform. As agreed, G4G will work closely with the PPD platform by providing analysis expertise on G4G specific areas. WB: G4G collaborates with WB on Land Registration Reform. WB under USD $40 million irrigation infrastructure loan arrangement allocated over USD $2.4 million to implement a pilot land registration project. The WB pilot would be used to test and learn from the new legal and regulatory framework, communication strategies, and intensive civil society engagement efforts supported by G4G. The lessons learned from the pilot project will be used to complete to properly register agricultural and non-agricultural land throughout Georgia. G4G will support WB in developing electricity trading software; specifically G4G will review and provide inputs to WB’s Assessment Needs Report and Terms of Reference for procurement and installation of electricity trading software/hardware in Georgia. G4G will be supporting WB’s consultants by guiding and providing information on Electricity Trading Mechanism and GEMM 2015.

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 64 January 01 – March 31, 2015

ADB: G4G works with ADB project “Georgia: Strengthening Domestic Resource Mobilization” on pension and capital market reforms. G4G Access to Finance Policy Advisor, Financial Analyst and short-term legal consultants closely collaborate with ADB international advisor in conducting capital market diagnostic assessment. NARUC: G4G will support National Association of Regulatory Utility Commissioners’ (NARUC) Black Sea Regulators Initiative, which aims to harmonize regulations for cross border energy trading in the region.

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 65 January 01 – March 31, 2015

ANNEX 4: UTILIZATION OF INTERNS

Internship N Name G4G Supervisor & Component Period

1 Ekaterine 11/11/2014 Elene Ghubianuri, Water Resource Management Component Berianidze 04/13/2015

2 01/11/2015 Ani Danelia Irina Iremashvili, Crosscutting Component 03/5/2015

3 Natia 03/16/2015 Tamar Buadze, GOG Capacity Strengthening Component Macharashvili 04/16/2015

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 66 January 01 – March 31, 2015

ANNEX 5: G4G ADVISORS UTILIZED IN GOG INSTITUTIONS

N Name Area(s) of Focus GoG Institution

1 Irakli Siradze Tax Payment Simplification MoF, RS

2 Vazha Petriashvili EU VAT Approximation Action Plan MoF, RS

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 67 January 01 – March 31, 2015

ANNEX 6: UTILIZATION OF PRIVATE SECTOR AND CIVIL SOCIETY ORGANIZATIONS

N Name of Organization Area(s) of Focus Utilization

1 AYEG Youth engagement in PPD Consultations

Georgian Women Business Women engagement in PPD, Civil 2 Collaboration Association Society Capacity Building

Georgian Association “Women in Women engagement in PPD, Civil 3 Consultations Business” Society Capacity Building

4 Caucasus University Youth engagement in PPD Outreach

5 Georgian Technical University Youth engagement in PPD Collaboration

6 GAU Youth engagement in PPD Outreach

7 ISET Policy Institute Youth engagement in PPD Collaboration

8 Energy Academy of Georgia Energy, Youth engagement in PPD Outreach Collaboration 9 JS Telasi Energy Collaboration 10 JS EnergoPro Energy Collaboration 11 Clean Energy Energy Collaboration 12 Hydrolea LTD Energy Collaboration 13 Georgia Urban Enerji Energy Collaboration 14 GOGC Energy Collaboration 15 GEDF Energy Collaboration 16 Schulze Global Investments LTD Energy Collaboration 17 Georgia Hydro Energy Collaboration 18 GIG Energy Energy Collaboration 19 Energy Solutions Energy Collaboration 20 Georgian Hydro Power Energy Collaboration 21 Energo Aragvi Energy Collaboration 22 Eastern Power Corporation Energy Collaboration 23 KG Energy Energy Georgian International Energy Collaboration 24 Energy Corporation 25 GITA Innovation and Technology Collaboration

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 68 January 01 – March 31, 2015

26 Partnership Fund Energy Consultations

27 Co-Investment Fund Energy Consultations

28 New Economic School Economy Consultations

Freight Forwarders Association of Collaboration 29 Trade Facilitation and Customs Georgia

30 Poti APM Terminals Trade Facilitation Collaboration

31 ICT Business Council Innovation and Technology Consultations

32 GIRCA Customs Consultations

33 AmCham Tax Enforcement and Administration Consultations

34 BAG Tax Enforcement and Administration Consultations

35 GIA Crop Insurance Collaboration

36 GSMEA Tax Enforcement and Administration Consultations

37 ICC Georgia Tax Enforcement and Administration Consultations

38 GCCI Tax Enforcement and Administration Consultations

39 PMCG Tax Enforcement and Administration Consultations

40 EPRC Civil Society Capacity Building Outreach

41 ATA partners Tax Enforcement and Administration Outreach

42 TI Land Registration Reform Collaboration

Caucasus Environmental NGO 43 Water Resource Management Outreach Network (CENN)

44 NALAG Water Resource Management Outreach

45 REC Caucasus Water Resource Management Outreach

46 Georgian Farmers Association Water Resource Management Outreach

47 GAMMA Water Resource Management Collaboration

48 YEA Youth Engagement in PPD Consultations Collaboration 49 Radio “Tavisupleba” Media engagement in PPD Collaboration 50 Radio “Commersanti” Media engagement in PPD Collaboration Media Holding “Palitra” (Palitra TV, 51 Media engagement in PPD IPN, BPN) Collaboration 52 National Broadcaster Media engagement in PPD Collaboration 53 TV Channel “Maestro” Media engagement in PPD

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 69 January 01 – March 31, 2015

54 TV channel “Tabula” Media engagement in PPD Collaboration

55 TV Channel “Rustavi2” Media engagement in PPD Collaboration

56 TV Channel “Imedi” Media engagement in PPD Collaboration

57 Newspaper “Georgia Today” Media engagement in PPD Collaboration

58 Newspaper “Messenger”, Media engagement in PPD Collaboration

59 Online and printed journal “Liberali” Media engagement in PPD Collaboration

60 News agency “Agenda.ge” Media engagement in PPD Collaboration

61 Newspaper “Rezonansi” Media engagement in PPD Collaboration

BICT - Batumi International Container Trade Facilitation and Customs Collaboration 62 Terminal

63 Georgian Logistics Association Trade Facilitation and Customs Consultations

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 70 January 01 – March 31, 2015

ANNEX 7: SUMMARY OF GRANT ACTIVITIES

Number of Number of Region of Type of Project Reform Project Title Applications Grants Implementation Beneficiaries Status Reviewed Awarded

Tbilisi, Regions: East Central Government and Assessment on Collaborative Governance Gaps RFA Issued and West Georgia Private Sector RFA Under Economic Journalists Capacity Building on PPD: Tbilisi, Regions: Media, Public and Private Development Training and Assessment Kakheti, Adjara Sector

Institutionalized Design Explore Options for Reform Progress Tracking Central Government, Public Tbilisi SoW Developed Framework for Public System and Private Sector Consultation Reform RFA Under PPD Quality Tracking Mechanism Tbilisi Central Government Development Women organizations, Empowering Women in Business Tbilisi, Regions:TBD RFA Issued women entrepreneurs

RFA Under Youth Governance Program Tbilisi, Regions:TBD Youth Development

Energy Strategy SoW Under National Survey on Use of Primary Energy Sources Tbilisi, Regions: TBD Central Government Reform Development

Energy Trading Women Integration in Energy Sector Tbilisi Private Sector RFA Issued Mechanism Reform

Local and Central Water Resource Management Curriculum Development SoW Under Region: TBD Government, Public and and Training Development Private Sector

Water Resource Local and Central Green Paper on “Water Allocation Plan Framework – Management Reform Region: TBD Government, Public and RFA Issued Challenges for Implementation” Private Sector

SoW Under Fresh Water Resource Management Training for SCOs Region: TBD Private Sector, CSOs Development Capacity Building Training for Small Business Tbilisi Private Sector RFA Issued Associations and SME’s on Tax Code Advocacy Tax Enforcement SoW Under and Administration RIA on Selected Tax Code Changes Tbilisi Central Government Development Reform Tax Perception Survey Tbilisi, Regions: TBD Public and Private Sector RFA Issued

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 71 January 01 – March 31, 2015

Number of Number of Region of Type of Project Reform Project Title Applications Grants Implementation Beneficiaries Status Reviewed Awarded

Trade Exporters Guide - Free Trade Conditions under DCFTA Facilitation/Transport Regime Tbilisi Private Sector RFA Issued

and Logistics Reform

SoW Under Land Ownership Land Registration Pilot Project Monitoring (Phase I) Region: TBD Public and Private Sector Development Registration and Titling Land Legislation Pilot Project - Mediators Selection/ SoW Under Reform Region: TBD Public and Private Sector Training (Phase I) Development

SoW Under Pension Reform RIA on Pension System Reform Tbilisi Central Government Development SoW Under Crop Insurance Product Development Tbilisi Public and Private Sector Development

Crop Insurance Reform RIA on Crop Insurance Tbilisi Central Government, Public RFA Under and Private Sector Development

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 72 January 01 – March 31, 2015

ANNEX 8: GANTT CHARTS

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ANNEX 9: G4G ORGANIZATIONAL CHART

_ Deloitte Consulting LLP Chief of Party Home Office Management Milo Stevanovich

Cross Cutting & Component 3-4 Deputy Chief of Party Operations Energy Trading Policy Component 1 Lead M&O/CC Lead Expert/Lead Katy Chumburidze Natalia Beruashvili Jake Delphia

Component 1 Component 2 Component 5 Competitive Market Grants Manager Finance Manager Economic Governance & Advisory & Capacity Expert Policy Expert/Lead Building Expert/Lead Giorgi Chikovani Nino Papyan Mariam Kevanishvili Nino Chokheli Maya Eristavi

PMP/RIA advisor Operations Manager Organizational Performance Data Tax Advisor Economic Analyst Water Sector Specialist Development/ Adviser David Gvenetadze Teona Jangveladze CYPRESS Adviser Malkhaz Nikolashvili Zaza Chelidze Eka Leonidze Sophio Khujadze Davit Mujirishvili

PR/Outreach IT Manager PPD Advisor Policy Advisor Program Analyst Financial Analyst Water Sector Manager Environmentalist Mike Martley Dima Butskhrikidze Tamar Kapianidze Tamar Buadze Sophio Geladze Neli Danelia Mariam Bakhtadze

Communications & KM Administrative Assistant Technical Analyst Customs Adviser Energy Sector/ Training Water Resource

Advisor Sofio Kalabegishvili Specialist Management Expert Irina Iremashvili Tamar Julakidze Bondo Bolkvadze Marina Kevanishvili TBD

Regional Reform Access To Finance Environmental Specialist GIS Expert Coordinator Advisor Ilia Gogichaishvili TBD Ketevan Skhireli Gvantsa Pochkhua

Energy Regulatory Data Analyst Advisor Elene Ghubianuri Eka Tchitchinadze

USAID G4G Project Organizational Chart

USAID | Governing for Growth (G4G) in Georgia Quarterly Report 93 January 01 – March 31, 2015

USAID Governing for Growth (G4G) in Georgia 85, Paliashvili Street Tbilisi, Georgia

Phone: +995 32 2 24 02 15 / 16 [email protected]