GOVERNING FOR GROWTH (G4G) IN GEORGIA QUARTERLY report

3

15 January 2017

This publication was produced for review by the United States Agency for International Development. It was prepared by Deloitte Consulting LLP. The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government.

GOVERNING FOR GROWTH (G4G)

IN GEORGIA QUARTERLY

REPORT OCTOBER 1, 2016 – DECEMBER 31, 2016

USAID GOVERNING FOR GROWTH (G4G) IN GEORGIA

USAID | GOVERNING FOR GROWTH (G4G) IN GEORGIA QUARTERLY REPORT OCTOBER 01, 2016 – DECEMBER 31, 2016 2

GOVERNING FOR GROWTH (G4G) IN GEORGIA QUARTERLY REPORT OCTOBER 1, 2016 – DECEMBER 31, 2016

USAID GOVERNING FOR GROWTH (G4G) IN GEORGIA

CONTRACT NUMBER: AID-114-C-14-00007

DELOITTE CONSULTING LLP

USAID | GEORGIA

USAID CONTRACTING OFFICER’S REPRESENTATIVE: REVAZ ORMOTSADZE

AUTHOR(S): G4G STAFF

CONTRACT REPORTING: 6000

15 JANUARY 2017

DISCLAIMER:

This publication was produced for review by the United States Agency for International Development. It was prepared by Deloitte Consulting LLP. The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government.


ACRONYMS AA Association Agreement

ABCO Association of Business Consulting Organizations of Georgia

ACCESS Advancing CSO Capacities and Engaging Society for Sustainability

ACT Analysis Consulting Team

AD Analytical Department

ADB Asian Development Bank

ADR Alternative Dispute Resolution

AEO Authorized Economic Operator

AFG Association of Freight Forwarders of Georgia

ALFG Association of Legal Firms of Georgia

AmCham American Chamber of Commerce

APMA Agricultural Project Management Agency

ARI Angel Resource Institute

AYEG Association of Young Economists of Georgia

BA Business Association

BAG Business Association of Georgia

BAU Business as Usual

BEC Business and Economic Centre

BORSA

Istanbul

Turkish Stock Exchange

CCAF Cambridge Center for Alternative Finance

CCC Culture of Collaborative Consultations

CENN Caucasus Environmental NGO Network

CI Confidential Information

CIPE Center for International Private Enterprise

CIS Commonwealth of Independent States

CIT Corporate Income Tax

CLDP Commercial Law Development Program

CMWG Capital Markets Working Group

COR Contracting Officer’s Representative

CPSR Certified Procurement System Readiness

CSO Civil Society Organization

CTC Center for Training and Consulting

CzDA Czech Development Agency

DAM Day Ahead Market

DANIDA Danish International Development Agency

DAP Day Ahead Planning

DC Defined Contribution

DCFTA Deep and Comprehensive Free Trade Area

DDL Development Data Library

DEA Data Exchange Agency

DEC Development Experience Clearinghouse

DSO Distribution System Operator

EBRD European Bank for Reconstruction and Development

EC European Commission


EC-LEDS Enhancing Capacity for Low Emission Development Strategies

ECS Energy Community Secretariat

ED Environmental Development

EDA Enterprise Development Agency

EEC Energy Efficiency Center

EEC European Energy Community

EF Environmental Flow

EIA Environmental Impact Assessment

EIEC Environmental Information and Education Center

EMCAS Electricity Market Complex Adaptive System

EMRA Turkish Energy Market Regulation Authority

EnCT European Energy Community Treaty

ENVSEC Environment and Security Initiative

EPAC Economic Policy Advocacy Coalition

EPI Economic Prosperity Initiative

EPIAS Turkish Market Operator

EPRC Economic Policy Research Center

ESCO Electricity System Commercial Operator

ETA Energy Traders Association

ETD Association of Turkish Energy Traders

ETM Electricity Trading Mechanism

EU European Union

FABLAB Fabrication Lab

FABSHOP Fabrication Shop

FCPA Foreign Corrupt Practices Act

FDI Foreign Direct Investment

FSA Food Safety Agency

G4G Governing for Growth in Georgia

GA Georgian Amelioration

GAMMA Georgian Environmental Consulting Company – LLC “GAMMA”

GAU Georgian American University

GBA Georgian Bar Association

GCCI Georgian Chamber of Commerce and Industry

GCF Georgian Co-Investment Fund

GDP Gross Domestic Product

GEA Georgian Employers Association

GEDF Georgian Energy Development Fund

GEMM Georgian Electricity Market Model

GEO Georgian Environmental Outlook

Geostat National Statistics Office of Georgia

GEW Global Entrepreneurship Week

GFA Georgian Farmers Association

GGI Good Governance Initiative

GIA Georgian Insurance Association

GIB Georgian Institute of Building

GIG Energy Georgian Investment Group Energy

GILMD Georgia Irrigation and Land Market Development Project

GIPA Georgian Institute of Public Administration


GIRCA Georgian International Road Carriers Association

GIS Geographic Information System

GITA Georgian Innovation and Technology Agency

GiZ German Society for International Cooperation

GLIP Georgian Lawyers for Independent Profession

GLNA Georgian Lawyer’s National Association

GNERC Georgian Energy and Water Supply Regulatory Commission

GoG Government of Georgia

GoGC Georgian Oil and Gas Corporation

GPA Government Procurement Agreement

GS Gauging Station

GSE Georgian State Electrosystem

GSMEA Georgian Small and Medium Enterprise Association

GWBA Georgian Women Business Association

GWP Georgian Water and Power

GYLA Georgian Young Lawyer’s Association

HACCP Hazard Analysis and Critical Control Points

HEPA Hazelnut Exporters and Producers Association

HICD Human Institutional Capacity Development

HIPP Hydropower Investment Promotion Project

HPEP Hydro Power and Energy Planning Project

HPP Hydro Power Plant

IBEDC International Business and Economic Development Center

IBSU International Black Sea University

ICC International Chamber of Commerce

ICCA Infrastructure Construction Companies Association

ICT Information and Communications Technology

I&D Irrigation and Drainage

IDFI Institute for Development of Freedom of Information

IEE Initial Environmental Examination

IFC International Finance Corporation

IFI International Financial Institution

IFRS International Financial Reporting Standards

IHE Institute for Higher Education

ILMD Irrigation and Land Market Development

IMF International Monetary Fund

INRMW Integrated Natural Resources Management in Watersheds

IOH Insolvency Office Holder

IRATF Insolvency Reform Advocacy Task Force

ISET-PI International School of Economics at Tbilisi State University Policy Institute

ISO International Organization for Standardization

ISP Internet Service Provider

IT Information Technology

IWRM Integrated Water Resources Management

JBS Judge Business School

JILEP Judicial Independence and Legal Empowerment Project

KfW Kreditnstalt fur Wiederaufbau

KM Knowledge Management


LEAP Long Range Energy Alternatives Planning

LGL Let Girls Learn

LWG Legislative Working Group

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

M-CEP Market-Centered Energy Planning

MCH Market Clearing House

MENRP Ministry of Environmental and Natural Resources Protection

MISO Midcontinent Independent System Operator

MIT Massachusetts Institute of Technology

MoA Ministry of Agriculture

MoE Ministry of Energy

MoESD Ministry of Economy and Sustainable Development

MoF Ministry of Finance

MoFA Ministry of Foreign Affairs

MoHLSA Ministry of Health, Labor and Social Affairs of Georgia

MoJ Ministry of Justice

MoU Memorandum of Understanding

MP Market Player

MRDI Ministry of Regional Development and Infrastructure of Georgia

MSC Mediterranean Shipping Company

M-TAG Media for Transparent and Accountable Governance

NALAG National Association of Local Authorities of Georgia

NAPR National Agency for Public Registry

NARMA National Agricultural Risk Management Agency

NARUC National Association of Regulatory Utility Commissioners

NATO North Atlantic Treaty Organization

NBE National Bureau of Enforcement

NBG National Bank of Georgia

NEA National Environmental Agency

NEST National Employment Savings Trust

NFA National Food Agency

NGO Non-Governmental Organization

NIH National Institute of Health

Nord Pool Norwegian Market Operator

NPLAW Nodia and Partners Law Firm

NVE Norwegian Energy Regulator

OECD Organization for Economic Cooperation and Development

OGR Office of Global Research

OSCE Organization for Security and Cooperation in Europe

OTC Over the Counter

PCA Post Clearance Audit

PM Prime Minister

PMCG Policy and Management Consulting Group

PMP Performance Monitoring Plan

PPA Power Purchase Agreement

PPD Public-Private Dialogue

PR Public Relations

PSC Public Service Commission


PSDA Public Service Development Agency

PX Power Exchange

Q&A Question and Answer

REC Regional Environmental Center for Caucasus

RFA Request for Applications

RIA Regulatory Impact Assessment

RPTS Reform Progress Tracking System

RRM Revenue Requirement Model

RS Revenue Service

SAIDI System On Average Interruption Duration Index

SAIFI System Average Interruption Frequency Index

SARAS Service for Accounting, Reporting and Auditing Supervision

SES Senior Expert Service

SIDA Swedish International Development Agency

SME Small and Medium Enterprise

SoW Scope of Work

SP Service Provider

SPA State Procurement Agency

SPS Sanitary and Phytosanitary

Statkraft Norwegian Generation Company

StatNett Norwegian Transmission System Operator

SWOT Strengths, Weaknesses, Opportunities, Threats

TADAT Tax Administration Diagnostic Assessment Tool

TAG Trade Advisory Group

TAKAS Turkish Settlement and Clearing Bank

TECR Threshold Environmental Checklist Review

TEIAS Turkish Transmission System Operator

TEU Twenty Foot Container Equivalent Unit

TFS Trade Facilitation System

TI Transparency International

ToR Terms of Reference

ToT Training of Trainers

TPU Tax Payer’s Union

TRWG Tariff and Regulation Working Group

TSU Tbilisi State University

TYNDP Ten Year Network Development Plan

UK United Kingdom

UNDP United Nations Development Program

UNESCO United Nations Educational, Scientific and Cultural Organization

UNECE United Nations Economic Commission for Europe

USAID United States Agency for International Development

USDA United States Department of Agriculture

USFS United States Forest Service

USG United States Government

USoA Uniform System of Accounts

USPTO US Patent and Trademark Organization

UST US Treasury

USTA United States Trade Administration


USTR United States Trade Representative

VAT Value Added Tax

VOLL Value of Loss Load

WB World Bank

WBC Women Business Council

WB-ILMD World Bank Irrigation and Land Market Development

WCO World Customs Organization

WEAP Water Evaluation and Planning

WEG World Experience for Georgia

WFD Water Framework Directive

WG Working Group

WMO World Meteorological Organization

WP Work Plan

WRM Water Resource Management

WRML Water Resource Management Law

WTO World Trade Organization


CONTENTS INTRODUCTION ............................................................................................................................... 11 1.

SUMMARY ........................................................................................................................................ 11 2.

PROJECT HIGHLIGHTS DURING THE REPORTING PERIOD ...................................................... 12 3.

PROGRESS OF ACTIVITIES BY REFORM ..................................................................................... 15 4.

OVERALL INSTITUTIONALIZED FRAMEWORK FOR PUBLIC 4.1

CONSULTATION ................................................................................................................... 15

4.1.1 PROGRESS AGAINST THE WORK PLAN ................................................................ 15

4.1.2 PPD SUCCESSES AND LESSONS LEARNED ......................................................... 18 4.1.3 CHALLENGES TO ACHIEVING REFORM RESULTS ............................................... 18

ENERGY STRATEGY REFORM ........................................................................................... 18 4.2

4.2.1 PROGRESS AGAINST THE WORK PLAN ................................................................ 18 4.2.2 PPD SUCCESSES AND LESSONS LEARNED ......................................................... 19

4.2.3 CHALLENGES TO ACHIEVING REFORM RESULTS ............................................... 19

ELECTRICITY TRADING MECHANISM REFORM ............................................................... 19 4.3



WATER RESOURCE MANAGEMENT REFORM ................................................................. 21 4.4



TAX ENFORCEMENT AND ADMINISTRATION REFORM .................................................. 24 4.5



CUSTOMS ADMINISTRATION AND ENFORCEMENT REFORM ....................................... 26 4.6



TRADE FACILITATION/TRANSPORT AND LOGISTICS REFORM ..................................... 26 4.7



BANKRUPTCY AND LIQUIDATION REFORM ..................................................................... 27 4.8


4.8.2 PPD SUCCESSES AND LESSONS LEARNED ......................................................... 28


LAND OWNERSHIP REGISTRATION REFORM .................................................................. 28 4.9




STATE PROCUREMENT SYSTEM ....................................................................................... 28 4.10



PENSION REFORM ............................................................................................................... 29 4.11


4.11.2 PPD SUCCESSES AND LESSONS LEARNED ......................................................... 30


CAPITAL MARKETS REFORM ............................................................................................. 30 4.12



CROP INSURANCE REFORM .............................................................................................. 31 4.13



INNOVATION AND TECHNOLOGY POLICY ........................................................................ 31 4.14



BUILDING CODE REFORM................................................................................................... 32 4.15



WORK PLAN OUTPUT TABLE ........................................................................................................ 34 5.

APPENDIX A: ANNUAL PMP INDICATOR RESULTS ............................................................................. 50

APPENDIX B: DONOR COORDINATION MATRIX ................................................................................... 60

APPENDIX C: UTILIZATION OF USG PERSONNEL AND COLLABORATION WITH

OTHER DONOR-FUNDED PROJECTS ........................................................................................... 69

APPENDIX D: UTILIZATION OF INTERNS ............................................................................................... 71

APPENDIX E: G4G ADVISORS UTILIZED IN GOG INSTITUTIONS ........................................................ 72

APPENDIX F: UTILIZATION OF PRIVATE SECTOR AND CIVIL SOCIETY

ORGANIZATIONS ............................................................................................................................. 73

APPENDIX G: SUMMARY OF GRANT ACTIVITIES ................................................................................. 79

APPENDIX H: G4G ORGANIZATIONAL CHART...................................................................................... 84

APPENDIX I: GANT CHART ...................................................................................................................... 85


INTRODUCTION 1.Governing for Growth (G4G) in Georgia is a five-year, $19.3 million US dollar USAID project that supports the Government of Georgia (GoG) as it creates an improved business enabling environment in which legal and regulatory reforms are fairly and transparently conceived, implemented and enforced through consultative dialogue.

G4G aims to enhance governance in select business enabling areas, including:

Tax and customs administration;

Electricity trading policy, including cross-border trading;

Water resource management;

Trade facilitation;

Other reform areas as identified during implementation of the project.

The G4G approach supports the effective formulation of the government policies necessary to drive economic development through the promotion of constructive Public-Private Dialogue (PPD). This requires strengthening of the 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 PPD;

2. Strengthen GoG capacity to develop, implement and enforce reforms;

3. Improve water resource management across multiple competing interests;

4. Improve governance of energy trading policy, including cross-border electricity trading;

5. Strengthen the capacity of private sector and civil society actors to advocate for reforms.

This report documents the results and progress made by G4G during project Year 3, Quarter 1 (from October 1, 2016 through December 31, 2016). Within each reform area, activities are organized by component. This structure permits a view of activities focused on a given reform area, seen in the context of a project-wide effort.

SUMMARY 2.During Year 3, Quarter 1, G4G progressed through a list of milestones including: Completing the Three-Year State Procurement Communication Strategy and Year 1 Action Plan; the Business Perception Survey; Handbook on Wastewater Treatment and Reuse Technologies; a study tour to Estonia to support a smooth transition to the new Corporate Income Tax (CIT) system; a study tour to the UK on crowdfunding and technology transfer; the GoG signing the accession protocol to the Energy Community Treaty and establishing the electricity trading mechanism (ETM) Steering Committee comprised of high-level energy sector decision-makers; a masterclass on economic journalism conducted by award-winning journalist Ryan Chilcote, and; significant progress was made on Building Code Awareness Training (17 sessions) for the public and private sector. The Ministry of Economy and Sustainable Development (MoESD) also conducted their first, independent regulatory impact assessment (RIA) on Consumer Right’s Protection Law, which the GoG will take into consideration while preparing the draft Law.

At the close of Quarter 1, G4G cumulatively (since project inception) has:

Leveraged approximately $200,253 USD of project attributable cost-share;

Completed 81 technical deliverables;

Hosted 90 PPD events with over 3,957 attendees;

Conducted 72 trainings with over 1,801 participants (1051 females and 750 males);


Natalia Beruashvili in the panel of the

“Made in Georgia” Business Forum

Giorgi Kvirikashvili at

“Global Entrepreneurship Week 2016”

Issued 8 newsletters;

Employed 42 Georgian youth interns;

Conducted outreach to over 60 other donor-funded projects;

Awarded 27 grants;

The total amount of grant awards is $1,101,050 USD, with $174,173 USD in cost share leveraged.

PROJECT HIGHLIGHTS DURING THE REPORTING 3.PERIOD

G4G’s Year 3, Quarter 1 timeline covered the period from October 1, 2016, to December 31, 2016.

Key events and milestones related to the project’s areas of work during the reporting period include:

“Successful business examples inspire new initiatives” – Giorgi Kvirikashvili, Prime Minister of Georgia.

On November 14, G4G in cooperation with the US Embassy, Entrepreneurs Association and Georgia’s Innovation and Technology Agency (GITA), hosted the first event of “Global Entrepreneurship Week 2016.” The Prime Minister of Georgia, Giorgi Kvirikashvili, opened the conference and Ian Kelly, Ambassador of the United States to Georgia, gave a welcoming speech. Start-ups shared their success stories and discussed challenges as they progressed, while Government representatives presented on-going and future programs to encourage entrepreneurship. The speakers inspired participants to

explore their potential as self-starters and innovators.

On December 15, G4G participated in a panel discussion and supported the “Made in Georgia” business forum organized by Business Georgia and TV channel Maestro. G4G Chief of Party, Natalia Beruashvili was a panel speaker. She spoke about promoting an entrepreneurial mindset, and the role of media in promoting entrepreneurship.

To stimulate entrepreneurship and innovation, the GoG with G4G

support, is developing the legal framework for alternative start-up financing, such as crowdfunding. On November 27 – 30, G4G, together with GITA and National Bank of Georgia (NBG) representatives participated in a study tour in the UK. Several meetings were held in London and Cambridge to discuss crowdfunding, technology transfer and innovation centers. New lines of communication and partnership opportunities were also discussed during the meetings.

Tax Reforms and financial reporting standards improve business climate.

The Estonian CIT Model, a major tax reform supported by G4G, will become effective in January 2017. In order to ensure a smooth transition to the new system, G4G conducted a PPD with the Ministry of Finance (MoF) and Deloitte and Touche LLC on Accounting, Auditing, Financial Reporting and Audit, and the new CIT model. In addition, a study tour was conducted to Estonia for Revenue Service (RS) representatives on December 5-6. These activities revealed that there are some issues related to the new CIT model that require more clarification and the first year will be a learning process, as was the case in Estonia.


Giorgi Chikovani of G4G at the PPD on

Competitive Electricity Market

90%

80%

70%

60%

55%

43%

40%

35%

32%

3%

1%

29%

Tax Reform

Land Registration Reform

Pension Reform

Customs Reform

State Procurement Reform

Insolvency System Reform

Water Resources Management Reform

Capital Market Reform

Electricity Trading Mechanism (ETM) Reform

Other

RA

DK

Out of 768 interviewees, the above shows the percentages of awareness of

specific reforms according to the Business Perception Survey

Business’ perception of reforms has improved since 2014.

G4G grantee, Analysis and Consulting Team (ACT), completed the ‘Business Perception Survey on the Policy Reforms.’ The survey aimed to accurately assess the perceptions of businesses on the policy environment and reveal the areas where G4G interventions could be most valuable. Among many interesting findings, the research suggests that the majority of senior-managers of medium and large enterprises are aware of economic reforms undertaken in Georgia (77%). Of those, Tax Reform (90%), Land Registration Reform (80%) and Pension Reform (70%) are the areas with the most awareness. Comparison of the

current survey results to the previous survey in 2014 shows a considerable increase of the internet as a primary source for information and currently more companies consider the information on the economic reforms as easily accessible (43% in 2014 vs 54% in 2016). More than a half of interviewed business representatives stressed the importance of improvement of taxation policy and rates (57%). The second on the priority list is access to affordable finance (48%).

The top three measures to increase management capacity and business sophistication of Georgian businesses identified were: (1) Creation of entrepreneurship/management schools (35%), (2) bringing foreign expertise to educate and train Georgian companies (32%), and (3) funding overseas courses (28%). The survey can be found on the following link: https://drive.google.com/file/d/0B-lGg_EbvUOwVWdXNnFVd3NrTDA/view

G4G takes over new tasks to assist the government in

meeting Energy Community Treaty obligations.

On October 14, the GoG joined the European Energy Community (EEC). Responsibilities of Georgia under EEC membership involve creating competitive market mechanisms, strengthening transparency and improving the legislative environment. As G4G has been and continues support to meet this objective, on November 9, G4G in cooperation with the Ministry of Energy (MoE) organized a PPD on the competitive electricity market and Georgia’s membership in the EEC. G4G will assist MoE in preparing the legislative package for submission to the Parliament, as well as to establish a working group consisting of MoE, Energy

Regulatory Commission (GNERC), Georgian State Electrosystem (GSE), Electricity System Commercial Operator (ESCO), European Bank for Reconstruction and Development (EBRD) and representatives of the Energy Community Eastern Partnership Unit.

State Procurement Agency calls private sector for active participation in state procurement tenders.

With the GoG spending over two billion GEL annually on state electronic tenders and low private sector participation as revealed by G4G’s survey, there is a need for more awareness among the private sector on State Procurement, especially small and medium enterprises (SMEs). On December 21, G4G, in collaboration with the State Procurement Agency (SPA), facilitated a PPD event on novelties in the state procurement system implemented during 2016. Head of SPA, Levan Razmadze, presented 2016’s modifications as well as new features that will be launched in 2017. G4G COP, Natalia Beruashvili made

https://drive.google.com/file/d/0B-lGg_EbvUOwVWdXNnFVd3NrTDA/view

https://drive.google.com/file/d/0B-lGg_EbvUOwVWdXNnFVd3NrTDA/view


Ryan Chilcote and Georgian journalists

a presentation on G4G reform areas and platforms that are used by the project to facilitate dialog between the public and private sector. More than 120 representatives attended the event from civil society and the business sector.

Award-winning journalist, Ryan Chilcote, talks with Georgian media about new trends in economic journalism.

As part of G4G’s activity to engage media in national PPD, G4G invited Ryan Chilcote, an award-winning global affairs and economics reporter with two decades of journalism experience at Bloomberg Television and CNN. Chilcote delivered a masterclass for 10 media professionals that work on economic reporting. He reviewed different types of business and economic features, the latest trends in data visualization, discussed how to portray economic stories through data visualization and provided recommendations how to pitch story ideas to editors. Chilcote also delivered two lectures at Georgian Institute of Public Affairs (GIPA) and Ilia State University for journalism students.

G4G improves water resource management through introduction of innovative technologies.

In December, G4G grantee, Georgia’s Environmental Outlook (GEO) completed the Handbook on Wastewater Treatment and Reuse Technologies. The Handbook is intended to educate landowners, homeowners, developers and engineers, and regulators (policy makers, water managers) on the selection and operation of appropriate wastewater systems. It contributes to sustainable and effective use of water resources through treating and recycling of used water for different purposes, such as agriculture, industrial use, etc. The Handbook attempts to provide the users with a better understanding of the technology available and the factors that need to be considered in seeking a wastewater system for any particular source of pollution and reuse of the treated water. The Handbook also proposes some examples of the wastewater treatment technologies, based on the results of the surveys from the Aragvi River Basin. GEO and G4G held a conference to present the Handbook.


PROGRESS OF ACTIVITIES BY REFORM 4.

OVERALL INSTITUTIONALIZED FRAMEWORK FOR PUBLIC 4.1CONSULTATION

REFORM OBJECTIVE Sustainable institutionalized dialogue platform to improve the quality of all legislations; emergence of a Culture of Collaborative Consultation (CCC).

4.1.1 PROGRESS AGAINST THE WORK PLAN

SUPPORT PUBLIC PRIVATE DIALOGUE

Support National PPD platform. G4G continues assistance to the MoESD in strengthening the Trade Advisory Group (TAG). During the quarter, G4G held several consultations with Deputy Minister of Economy and Sustainable Development, Genadi Arveladze, and Chairman of TAG, Mamuka Tskhvitaridze, to define TAG’s development strategy. It was decided that G4G will help TAG members in identifying the issues to be discussed and advocated through the platform. With G4G support, the TAG chairman developed and will circulate a questionnaire among the members of business associations that will identify specific trade related obstacles that companies face. The questionnaire will also allow TAG to classify sector related barriers and initiate discussions with the public sector. To support evidence based discussions, G4G will develop brief policy papers on three to four priority issues and guide TAG and the MoESD with expert opinions, recommendations and analysis. G4G will issue a grant to support this activity.

As part of G4G’s support to national PPD platforms, in Year 2, G4G through its grantee Business and Economic Center (BEC), established a PPD platform in the Parliament and arranged discussions on Land Registration Reform, Pension Reform and RIA National Framework. In Year 3, G4G continues to support the PPD platform and involve new Members of the Parliament in the PPD process. During Quarter 1, G4G held a grant competition in which BEC was selected to facilitate dialogue between the legislators and business community on selected policy reforms. Implementation of the grant program will begin in Quarter 2.

As G4G continues its support to the Investor’s Council, G4G participated in a Tax Working Group meeting organized by the Investor’s Council on the Estonian CIT model on December 2.

During Quarter 1, G4G conducted several PPD events (including PPDs on CIT; PPD Tracking System; Non-Structural Building Code; Competitive Electricity Market; Water Resource Management; Tax Dispute Cases; Accounting, Financial Reporting and Audit, etc.). Additional information on PPD is covered in the reform related sections of this report.

Engage Media in the National PPD. G4G in collaboration with MoESD organized a media study tour on the DCFTA for 20 media professionals specializing in business broadcast. Deputy Minister of Economy and Sustainable Development, Genadi Arveladze, and other representatives of MoESD, Ministry of Agriculture (MoA), Economic Council, RS, and Sakpatenti - National Intellectual Property Center, discussed DCFTA and its specific chapters in detail including technical barriers in trade, sanitary and phytosanitary measures, customs and trade facilitation, trade in services, and intellectual property rights.

In December, G4G invited Ryan Chilcote, an award-winning global affairs and economics reporter with two decades of journalism experience at Bloomberg Television and CNN, to deliver a masterclass for 10 media professionals that work on economic reporting. He reviewed different types of business and economic features, the latest trends in data visualization, discussed how to portray economic stories through data visualization and provided recommendations on how to pitch story ideas to editors.

On December 27, G4G in collaboration with Policy Management Consulting Group (PMCG), conducted capacity building training for media. Lekso Aleksishvili from PMCG talked about the GEL devaluation and the importance of exchange rate stabilization for the economy. Nine media representatives attended the event.


Engage Youth in the National PPD. G4G continues to carry out capacity building activities with youth. Activities include conferences and lectures conducted in cooperation with different governmental agencies, educational institutions and donor organizations.

In the framework of the youth support activities, G4G in cooperation with the US Embassy, Entrepreneurs Association and GITA, hosted an entrepreneurship promotion conference - “Global Entrepreneurship Week (GEW) 2016.” GEW is an international event, celebrated annually worldwide. Various events and competitions in Georgia as well as in 160 other countries encourage millions of people to be engaged in entrepreneurial activities, while connecting them to potential facilitators, mentors and investors. The Prime Minister of Georgia together with the US Ambassador opened the conference. Entrepreneurs shared their success stories and challenges, while government representatives presented on-going and future programs to encourage entrepreneurship. The speakers inspired participants to explore their potential as self-starters and innovators.

In December, G4G in cooperation with the Academy of the Ministry of Finance, launched the training program - “Georgia and European Union Integration.” The program aims to raise awareness about EU – Georgia relations among students. The program will guide them through the Association Agreement (AA) and cover specific chapters of the DCFTA document and the reforms initiated by the GoG to comply with the agreement. The program is comprised of 10 training sessions, presentations and an assessment.

G4G continues close collaboration with Georgian educational institutions with the aim to raise the capacity of youth to effectively communicate and advocate for reforms. In December, Ryan Chilcote conducted public lectures for journalism students from GIPA and Ilia State University. Students were informed on the latest trends in economic reporting and data visualization, and how to find, analyze, and present economic news.

Engage Women in the National PPD. In Quarter 1, under the grant competition for women’s capacity strengthening in the regions, G4G received concept papers on “Women’s Empowerment in the Samtshke-Javakheti and Kvemo Kartli Regions.” The objective of the grant is to equip and prepare women in the regions with necessary skills and competencies to increase their participation in economic, social and political activities. G4G is currently reviewing the concept papers to select a winner.

G4G continues supporting women entrepreneurs interested in starting a business. In December, Maya Eristavi, G4G’s Advocacy and Capacity Building Component Lead participated as a mentor in the two-day training program “Let’s Girls Learn” (LGL) organized by the Peace Corps. The goal of the program was to increase the number of women trained in business skills and advocacy. The Peace Corps, in partnership with Believe Foundation, selected 10 girls and 10 women mentors. Trainers from the USA delivered a practical and innovative training session that included team building, project design, advocacy, organization design, strategic planning, marketing, and networking. G4G plans to continue cooperation with the Peace Corps and conduct similar activities in Tbilisi for female students.

Reform Progress Tracking System (ReforMeter). At the beginning of Year 2, G4G awarded a grant to International School of Economics at Tbilisi State University Policy Institute (ISET-PI) for implementing the reform tracking system. The project’s overall goal is to analyze reform progress to support policy-making and PPD, and thereby promote informed debate on reform priorities and policy decisions, improve accountability, and help build trust between the government, private sector, and public. The tangible result will be a functional system that informs the public on how reform efforts of the GoG have progressed against their intended objectives. In Year 2, ISET-PI developed the initial concept, operational/financial plan, business/system requirements and a working prototype of the web-based system - ReforMeter. As a result of additional consultations with the private sector and GoG stakeholders in early October, ISET-PI proposed an updated methodology that was approved at the second steering committee meeting held on October 21. The steering committee also approved the reform areas to be assessed by the ReforMeter which include: Pension and Capital Market reform; Taxation and Tax Administration; DCFTA/Agriculture; Tourism Development; Innovation, Entrepreneurship and SME policy; Vocational Education; and Insolvency. Based on the new methodology, the first results of the ReforMeter will be published in the next quarter. All reforms will be evaluated on a semi-annual basis and tracking results will be updated accordingly. Over the next 12 months, six reforms will be assessed. After assessment of at least three reforms, ReforMeter is expected to be fully operational.

PPD Tracking System. In Year 2, G4G issued a grant to the Institute for Democracy and Freedom of Information (IDFI) to develop and implement the PPD Tracking System. The project aims to assess the extent and quality of inclusive consultation during four phases of the policy-making process, primarily for economic policy reforms. The phases reviewed are: Policy design and development; legislation drafting;


RIA; and circulation and public comments. The first assessment covered the period of October 2014 - September 2016.

In October, IDFI submitted the print version of the first PPD quality evaluation report that was distributed to the media and stakeholders.

On November 8, IDFI organized a workshop for civil servants on the subject of PPD quality in Georgia. The purpose of the event was to discuss existing practice of PPD, share experiences, reveal the concerns of civil servants, and raise awareness on the significance of quality dialogue. The event also aimed at discussing RIA and presenting the best practice examples of the RIA process.

In December, IDFI began the process of evaluation of the laws for the second report that will be published at the end of Year 3.

GOG CAPACITY STRENGTHENING

Support National PPD Platform. Refer to the section “SUPPORT PUBLIC PRIVATE DIALOGUE,” 5.5.1.

Support National RIA Framework. During Quarter 1, the interagency RIA working group (WG) established under the Office of the Parliamentary Secretary of Government’s Administration has been working on legal framework in order to institutionalize RIA in the policy making process. The Ministry of Justice (MoJ) was tasked to develop the changes and amendments to the Laws on Normative Acts, Parliamentary Regulation and Government’s Regulation, while the Parliamentary Secretary’s Office will draft special Government’s Decree on the RIA process and methodology.

Meanwhile, G4G continued GoG’s capacity building on RIA implementation through conducting pilot RIAs with participation of civil servants. In Quarter 1, under G4G mentorship, MoESD’s RIA Department conducted the RIA on the Consumers’ Rights Protection Law. The RIA analysis showed that the draft Law sets more stringent requirements than EU legislation. It also revealed that the cost for businesses to accept returned goods does not justify the benefits for the consumers. In November, G4G and the MoESD held a workshop, where the findings of the RIA were presented to stakeholders. The GoG will take the RIA results into consideration while preparing the draft Law on Consumers’ Rights Protection.

MoESD’s RIA Department is also actively involved in the ongoing RIA on Pension Reform implemented by ISET-PI.

In Quarter 1, G4G grantee ACT, completed the “Business Perception Survey on the Policy Reforms.” The survey aimed to assess the perceptions of businesses on the policy environment and reveal the areas where G4G interventions could be most valuable. ACT conducted interviews with senior-managers of 1000 medium and large businesses throughout Georgia. The survey included the following main fields: Awareness of reforms, general attitudes, tax administration, customs policy and administration, information and communications technologies, transport and logistics, state procurement, capital market, pension, media consumption and water issues. Similar studies were conducted by USAID Economic Prosperity Initiative (EPI) in 2011, 2012 and 2014, enabling comparison of the previous surveys’ results with the current one.

PRIVATE SECTOR & CSO STRENGTHENING

G4G continued its support to EPAC. In October, G4G organized an EPAC - German Business Association presentation on the business support program implemented by the Senior Expert Service (SES) under the Foundation of German Industry for International Cooperation. SES provides locally-based organizations and associations with the opportunity to cooperate with retired German specialists who are willing to pass on their skills and knowledge to organizations all over the world on a voluntary basis. The presentation was designed specifically for EPAC members and included detailed information about the program including application procedures, key assignment areas, assignment procedures and program benefits. EPAC members expressed their interest to participate.

In November, G4G hosted an EPAC coordination meeting on Trademark Protection. Working group participants identified trademark protection as EPAC’s new working area, discussed challenges and methods of addressing the problems and identified future activities. EPAC plans to hold a PPD with government officials to advocate for improving trademark protection in Georgia.

In December, EPAC members participated in a competence building workshop and group consultation organized by the Information Center on North Atlantic Treaty Organization (NATO), EU Delegation in Georgia and Lithuanian Innovation Center. The main topic of the dialogue was innovation and business


development policies in EU countries. Lithuanian experts delivered a presentation on innovation policy evolution, innovation support systems, business and government cooperation practices in Lithuania and Europe, integration into the EU market, the role of business associations and the importance of PPD. G4G presented the mission and activities of EPAC.

G4G has again been invited to share EPAC activities among neighboring countries. After visiting Ukraine (June 2016), Maya Eristavi, G4G Advocacy and Capacity Building Component Lead, was invited as a keynote speaker at the EU project “East Invest 2” Annual Partner Conference in Yerevan, Armenia in October. The conference aimed to foster economic cooperation between the EU and Eastern Partnership countries. G4G introduced EPAC activities and presented success stories. In addition, tools of successful PPD under the project were introduced.

During Quarter 1, Center for Competition Law and Consumer Protection, Regional Management and Economic Development Center, Georgian Vocational Education and Georgian Association of Realtors joined EPAC. EPAC currently unites 65 organizations.

4.1.2 PPD SUCCESSES AND LESSONS LEARNED

PPDs on CIT and Accounting, Financial Reporting and Audit reforms revealed that these two areas are sensitive issues for business that need enhanced cooperation between the public and private sectors. It also contributed to raising the private sector’s awareness on reform status and provided GoG with a better understanding of the challenges.

PPD on the Competitive Electricity Market and Georgia’s Membership in the European Energy Community reviewed the responsibilities of Georgia under EEC and increased awareness of private Market Players (MPs) on MoE’s plans regarding competitive market development and implementation of new trading platform by 2020. PPD demonstrated that involvement of MPs and other stakeholders during decision-making process is crucial for the successful implementation of the new market model.

PPD on Consumers’ Rights Protection RIA has shown that the RIA findings help stakeholders to better present and defend their positions during dialogue.

4.1.3 CHALLENGES TO ACHIEVING REFORM RESULTS

TAG launch phase showed some challenges in defining/prioritizing the discussion issues and the risk that TAG agenda will be driven by the interests of few businesses, rather than whole sector or industry. By the consistent efforts of G4G, MoESD and TAG leadership agreed on the operation model of the TAG that will minimize the risk and ensure TAG’s effectiveness and sustainability.

Keti Bochorishvili, Deputy Minister of Economy and Sustainable Development and the ReforMeter’s Steering Committee member expressed reservations regarding the methodology of the ReforMeter and suggested modifications. ISET-PI is currently revising the methodology to address the concerns of the Government. It is expected that methodology will be finalized by end of January 2017 and ISET-PI will proceed with project implementation.

Even though the GoG understands the importance of the RIA Institutionalization Reform, some of the GoG institutions are still hesitant towards implementing the reform rapidly because it will slow down the law adoption process. A clear need to build capacity among civil servants remains the biggest challenge.

ENERGY STRATEGY REFORM 4.2

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



No specific activities were planned during the reporting period.


In Quarter 1, G4G initiated a new activity - Evaluate alternatives for demand forecasting under Energy Market transformation. Forecasting is a necessary and important function in the energy sector, inaccurate


load forecasts may result in financial burden or even failure of a system. A large number of energy demand forecasting methodologies and models are developed and applied worldwide by energy agencies, planners, or other relevant stakeholders. These models provide a broad range of analytical capabilities. However, due to the number and complexity, it is difficult to identify which of these models might be the most useful considering Georgia’s needs. By this assignment, G4G intends to assist energy sector stakeholders and civil society organizations (CSOs) in Georgia to select the optimal model and conduct country’s electricity demand forecasting for the long term period (5-10 years). This activity is planned to be implemented through a grant, therefore the relevant scope of work (SoW) has been developed and the request for applications (RFA) will be announced in the upcoming quarter.

To meet forecasted electricity demand in the most efficient way, a production model must be introduced and implemented in Georgia. G4G intends to assess existing internationally available electricity production models, and identify the most suitable model for adoption in Georgia, considering a local mix of energy sources and specific technical requirements. This activity will be implemented through grant aiming to develop Market Centered Energy Planning (M-CEP) Model and raise awareness of GoG in this regard. The relevant SoW has been developed and the RFA will be announced in Quarter 2.


During Quarter 1, G4G conducted a workshop with energy sector CSOs on M-CEP concept and discussed possible future developments in the Georgian electricity sector. The workshop was focused on current advancement of renewable energy generation, metering, battery technologies, changes in energy markets and involvement of consumers in the energy planning process. CSO’s expressed their interest to cooperate with G4G on M-CEP development and different scenarios on energy demand forecast.

On November 30, Jake Delphia, G4G Senior Energy Expert, delivered a lecture on the M-CEP concept to the energy students of ISET. By request of the participants, G4G will continue capacity building of ISET students and other educational institutions.


Nothing significant to report.


Forecasting is a necessary and important function in energy industry, inaccurate load forecasts may result in financial burden or even failure of a system. Despite GoG’s effort to develop and adopt an energy strategy for Georgia, there’s lack of analytical capacity to conduct national electricity demand forecasting for the long term period and select/develop the optimal model for future planning. Several energy planning models exist worldwide, but due to the complexity, it is difficult to identify the most relevant model to Georgia. Therefore, G4G intends to support GoG in development of the most suitable M-CEP Model.

ELECTRICITY TRADING MECHANISM REFORM 4.3

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



On November 9, G4G in cooperation with the MoE, organized a PPD on the competitive electricity market and Georgia’s membership in the European Energy Community Treaty (EnCT). Mariam Valishvili, Deputy Minister of Energy, reviewed the responsibilities of Georgia under EnCT membership, which involves creating competitive market mechanisms, strengthening transparency, improving the legislative environment, supporting cross border trade and market liberalization. “By 2020, we will have a functional electricity trading mechanism in place,” stated Valishvili.



G4G held meetings with MoE officials and an effective information exchange has facilitated successful coordination for the upcoming ETM implementation and collaboration between donor community and electricity sector stakeholders. MoE requested G4G’s support to coordinate activities of the upcoming new projects including the EBRD Electricity Trading Platform Project and Energy Community. EBRD is supporting design and implementation of the electricity trading platform in line with EU competitive market principles and harmonized with the Turkish power market. The project will last for 12 months and will develop the main concepts and action plan towards new electricity market model. The Energy Community, through the Eastern Partnership Assistance program of EU, is going to provide technical support to Georgian authorities with respect to Electricity Market reform in the coming months. G4G held several meetings with above mentioned project representatives, shared its experience and deliverables concerning electricity market/ETM development and discussed the possible issues of future cooperation. It was agreed with both parties that passing clear, coordinated and an identical message to GoG will result in a more efficient reform implementation.

G4G began planning a study tour to the US or an EU country for Georgian electricity sector officials during Quarter 1. The following areas of interest were identified to be covered during the study tour: Operations of day ahead market and balancing market; regulations and monitoring of competitive markets; operations of retail suppliers and third party access to the distribution grid; development of solar and renewable energy; modern clearing and settlement practices, and; lessons learned from competitive market development. At the end of Quarter 1, MoE informed G4G that due to the upcoming ratification of the Energy Community Accession Treaty, high level officials will most likely not participate and the event is currently postponed.

G4G was asked to conduct a RIA for the new market model proposed to GoG. G4G is planning to implement this activity through a grant and developed the relevant SoW and an RFA will be announced in Quarter 2. This activity will also include recommendations on the clearing and settlement process for the energy sector. RIA will also assist the GoG communicate the market model to stakeholders.

ENERGY (ELECTRICITY) TRADING POLICY GOVERNANCE

Besides Electricity Trading Mechanism, MoE requested G4G’s support in developing a legislative package for ratification of the Energy Community Treaty Protocol by the Parliament of Georgia. It was decided that G4G will support MoE in preparing the legislative package by providing translation of EU related directives and contributing to drafting process of the new Energy and Gas Law.

It was also agreed with MoE to establish a Steering Committee comprising of representatives from G4G, USAID, MoE, GNERC, GSE and ESCO. As agreed, the Steering Committee will meet on regular basis to discuss the on-going and planned activities towards transformation to an EU compliant electricity market, identify milestones and deadlines as well as roles and responsibilities of each stakeholder to properly address technical and schedule constraints of the reforms.

During Quarter 1, G4G actively participated in workshops and conferences related to renewable energy development, competitive market and energy security organized by PMCG, NATO, Danish International Development Agency (DANIDA) and United Nations Economic Commission for Europe (UNECE).


G4G is cooperating with electricity MPs, to raise their awareness on ETM and possible development of a MP association. During Quarter 1, with participation of G4G and Center for International Private Enterprise (CIPE) consultant, Camelia Bulat, G4G held a meeting with electricity private sector representatives. The discussion covered international experience and primary requirements for establishing a market players association as well as alternatives and challenges of establishing an association of professionals and/or companies. Bulat provided comprehensive information on primary membership requirements for the association.

G4G held a series of workshop on ETM development issues with group of MPs. The events included discussion on existing challenges and steps to be undertaken for electricity market liberalization. Challenges in cross-border trade and solutions were also discussed. MPs exchanged their views and agreed to focus on future market structure. Main concerns expressed by the MPs were: Limited capacity on Georgian/Turkey interconnection during spring/summer season, rules regulating connection of the newly constructed hydropower plants (HPPs) to the grid, market rules covering obligatory sales to ESCO and existing value added tax (VAT) regime. It was agreed to continue identifying possible solutions to the above-mentioned issues and develop recommendations for MoE. G4G also presented the M-CEP concept to MPs and held a brief discussion regarding ETM and energy planning in Georgia.


During Quarter 1, G4G held several meetings with private sector representatives on an individual basis. The parties discussed development of the competitive electricity market in Georgia and the importance of inclusion of private sector representatives in the process of Energy Market Reform implementation. They confirmed strong interest in ETM and in establishing a platform for reform advocacy in order to jointly discuss with GoG the challenges for investors when developing and implementing projects.


During a PPD event on Electricity Trading Mechanism, a number of issues were presented by MoE to the private sector MPs. The event itself was very informative and provided a clear message from MoE that Georgia is moving toward competitive electricity market and will fulfill all its obligations to EU and Energy Community.

A number of MPs has expressed their following concerns:

Since the volume of information presented by MoE was large, distributing a description of the topics to be discussed in advance would be helpful, this way MPs would be more prepared and better able to digest the concepts;

There should be a permanent platform were MP representatives would voice their concerns to MoE to exchange ideas and jointly develop optimal solutions;

During the policy making process, as well during development new market rules and regulations, inclusion of MPs is vital. MPs usually become aware of legislative changes and new regulations after they are approved or established.

Considering these concerns, G4G developed the list of concerns to address with the MoE.


There are different approaches concerning future market structure and ETM implementation. G4G has been actively working to guide the GoG on a decision. Apparently, MoE is expecting recommendations on future market structure and platform design from the EBRD financed “Electricity Trading Platform” project. However, MoE and G4G continue to work on conceptual decisions in order to identify roles and responsibilities of state agencies in the market to be considered by EBRD’s proposals.

As the MoE holds the key role in the policy making process, it has to make decisions on further developments in the energy sector (ie. milestones, action plans, policy documents), which will serve as a guide to undertake necessary steps by relevant stakeholders, all contributing to successful implementation of ETM. G4G initiated establishment of a steering committee comprised of high-level energy stakeholders from the public sector.

WATER RESOURCE MANAGEMENT REFORM 4.4

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



Water Resource Management PPD. On November 29, G4G organized a PPD workshop on Water Demand Forecast for the Aragvi River Basin. A detailed description of the event can be found under “PRIVATE SECTOR & CSO STRENGTHENING,” 5.4.1.


Harmonization with the EU. G4G continues support to Ministry of Environment and Natural Resources Protection (MENRP) in improving policy and the regulatory environment in Water Resources Management. MENRP asked G4G to contribute to development of the practical guidance documents on technical issues of the Water Framework Directive (WFD). In response to MENRP’s request, in December, G4G issued an RFA for the grant project on “Water Framework Directive Implementation Guidance Documents for Georgia.” It is expected that this document will become an implementation guideline for the WFD at the national level. The project is planned to be conducted January-July 2017.


Tariff Methodology for Irrigation and Drainage. No significant activities took place during the quarter. At the second half of January, upon the arrival of World Bank Irrigation and Land Market Development Project (WB-ILMD) mission, MoA and Georgian Amelioration (GA) plan to continue discussions and work on Irrigation and Drainage Sector (I&D) reforms with the emphasis on developing draft Hydro Amelioration Law as well as I&D strategy for which the deadline for finalization and endorsement has been proposed by WB-ILMD as 2019

[1].

The current version of I&D strategy includes the concept of regulatory framework and accepts the breaking down of the tariffs by components; both concepts are considered in a manner as prescribed in a draft tariff methodology developed by G4G. Also, the issues related to the ability to pay and subsidize - discussed in a RIA - was reflected in the I&D strategy.

G4G plans to continue support of the I&D sector reform in the upcoming quarters through the participation in working groups on regulatory issues and capacity building of GA and GNERC.

Comments and Recommendations on Draft Hydro-Amelioration Law. Refer to “GOG CAPACITY STRENGTHENING,” 5.4.1.

Water Resource Management White Paper. No activities were planned during the reporting period.

WATER RESOURCE MANAGEMENT

Environmental Flow (EF) Assessment. One of the important aspects in water resource management and allocation is assessing EF. Development of the EF framework is part of the government’s commitment under the EU-AA.

G4G continues work on developing EF methodology for Georgia. During October 3-7, G4G with grantee GEO, organized a five-day training session on EF methodology testing. The trainings included a two-day on-site (field) testing in the Aragvi Basin and a three-day classroom session. On-site (field) testing aimed at: (a) Testing some of the key components of the draft EF methodology; and (b) capacity building of the participants in application of the methodology. On the last day of the workshop, an EF method assessment session was conducted. The purpose of the session was to discuss the findings from the field pilot and to ensure that the technical elements of the proposed methodology are feasible and supported by major stakeholders. Trainings were delivered by GEO international consultants - Professors Rebeca Tharme and Francisco Martinez-Capel. The trainings were attended by various departments from the MENRP, National Environmental Agency (NEA), MoA as well as scientific-research and academia sector representatives. The output of the workshop was specific recommendations for the revision and finalization of the methodology. Due to high interest in the topic, the event received extensive local and international (Spanish) media coverage.

This activity will be finalized in February 2017.

Gauging Station (GS) at Aragvi River Basin. Within the scope of Aragvi River pilot project, G4G intends to support MENRP create network of GSs capable to completely reflect the overall inflow to the Jinvali Reservoir as well as measure runoff formed on the catchment downstream from the dam and outlet of the basin which remains unmeasured for almost 20 years.

The absence of real time hydrologic data upstream and downstream the dam challenges the determination of the water availability in the basin and future development of Water Allocation Plans. G4G developed a SoW and on December 23 announced an RFA for the development of the GS network and ensure its operation and sustainability.


Water Allocation Scenarios. MENRP recognized the need to apply the Water Evaluation and Planning (WEAP) tool at the national level for sustainable water resource management of different river basins and reflect the interests of all water-user groups, taking into account environmental and social considerations.

At the GoG’s request, G4G issued an RFA for Piloting Water Allocation Modeling using WEAP in Aragvi River Basin. Georgian non-governmental organization (NGO) ‘Environment and Development’ was selected for developing the project on WEAP in Aragvi River Basin. The development of the Water Allocation Modeling exercise will begin in January 2016.

[1] WB ILMD Implementation Status & Results Report http://documents.worldbank.org/curated/en/211621473854689667/pdf/ISR-

Disclosable-P133828-09-14-2016-1473854677394.pdf

http://documents.worldbank.org/curated/en/211621473854689667/pdf/ISR-Disclosable-P133828-09-14-2016-1473854677394.pdf

http://documents.worldbank.org/curated/en/211621473854689667/pdf/ISR-Disclosable-P133828-09-14-2016-1473854677394.pdf


Water Demand Forecast. G4G continues its work on the Aragvi River Basin water demand forecasting. G4G’s grantee, Regional Environmental Center (REC) Caucasus, developed a draft report on Water Demand Forecast for the Aragvi River Basin. The water demand forecast draft report presents the analysis of current usage and future demand projections, taking into consideration the following sectors: Potable, sewage, agriculture, industrial and hydropower. The water demand projection is a calculation of future water demand based on a set of assumptions and historical trends in water usage.

On November 29, G4G and its grantee, REC, organized a PPD workshop on Water Demand Forecast for the Aragvi River Basin. The workshop aimed at presenting estimates of future water demand for the selected pilot river basin during 2020-2050, considering climate change implications. Representatives of different governmental agencies, local municipalities, private organizations, water companies and the non-governmental sector attended the event and provided feedback on report findings. Comments and suggestions received during the workshop will be reflected in the final report.

Innovative Technologies for Water Reuse and Wastewater Treatment. G4G grantee, GEO, finalized its on-site survey to assess industrial water-use and explore the use of water-efficient and wastewater treatment technologies within the Aragvi River Basin pilot and developed the database of existing enterprises in the Aragvi River Basin. The database includes information on pollution sources, location, character, etc. On the basis of the survey results, an analytical report on industrial water use in the Aragvi River Basin (with detail description of the applied water treatment and water re-use technologies) was developed.

On December 15, G4G and grantee GEO, organized a PPD workshop on Environmental Technologies for Water Reuse and Waste Water Treatment. Over 70 participants (from public, private and governmental sector) attended the workshop. At the workshop, GEO presented findings of the study on water re-use and wastewater treatment technologies. Stakeholders’ comments and suggestions received during the workshop were incorporated in the Handbook on Wastewater Treatment and Reuse Technologies. It was agreed that the document will be uploaded on the MENRP web page and will be disseminated through other professional networks.

On December 26, G4G grantee GEO submitted to G4G: a) Handbook on Wastewater Treatment and Reuse Technologies and b) Explanatory Note on obligations of EU-Georgia AA on wastewater treatment and reuse. The Handbook provides the users with a better understanding of the technology available and the factors that need to be considered in seeking a wastewater system for any particular source of pollution and reuse of the treated water. The Handbook also proposes some examples of the wastewater treatment technologies, based on the results of the surveys from the Aragvi River Basin. The aim of the explanatory note is to raise the private sector’s awareness on the legal requirements related to water use, including the new draft regulations to be adopted under the AA agreement. Documents are under internal review and will be submitted to USAID in January 2017.

Regulatory Impact Assessment. G4G selected winner of grant competition to conduct a RIA on the draft Water Resource Management Law (WRML). Implementation of this activity will continue in Quarter 2. ISET-PI has been selected for developing the RIA on WRML and it is expected that the outcome of a RIA will facilitate the Law’s approval process by Parliament. A detailed study is required to assess the impact of the following regulatory requirements: (a) Establishment of river basin units; (b) development of river basin management plans; (c) introduction of water abstraction/discharge permits; and (d) water usage fees.

On September 30, G4G participated in a RIA awareness raising event organized within the framework of the EU funded project - “Legislative Impact Assessment, Drafting and Representation.” The draft RIA methodology, in the context of introducing the WRML in Georgia, was discussed during the workshop. Peter Futo, international consultant, gave a detailed presentation on the main aspects of RIA methodology. Based on the discussion findings, the EU project finalized the RIA methodology. Outcomes of the methodology will be used during the WRML RIA development process.


The PPD workshop on Water Demand Forecast can be considered as a successful example of reaching a consensus among different stakeholders on water demand forecasting based on the analysis and comprehensive study.

The quality and availability of data and analysis is vital for an efficient PPD process. In order to maintain a sustainable process for water resource management, regular surveys and better data collection practices must be implemented. Coordination and information exchange between different government branches is


weak and needs to be strengthened. As an example, the data from different ministries is often divergent and contradictory.


Lack of coordination among the GoG institutions and a lack of awareness of the river basin management concept are seen as a challenge for introduction of the new approach of WRM in practice. G4G will continue to support the GoG in capacity strengthening and raising awareness to foster successful implementation of AA requirements.

Absence of quality data remains a significant challenge to develop water balance and allocation plans. G4G is working with MENRP and other stakeholders to fill data gaps and ensure data reliability.

TAX ENFORCEMENT AND ADMINISTRATION REFORM 4.5

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



Tax Code Review. Estonian CIT Model: On November 4, G4G in collaboration with MoF and Deloitte and Touche LLC, held a PPD on two interrelated reforms: (1) Accounting, Financial Reporting, and Audit and (2) CIT. The reforms were presented and explored by representatives of the MoF, Service for Accounting, Reporting and Auditing Supervision (SARAS) and Deloitte and Touche LLC. The MoF discussed tax treatment of particular expenses and admitted that some issues require more clarification. The representative of Deloitte and Touche LLC stated that the new CIT Model increased the importance of proper financial accounting and advised businesses to begin preparatory work for comprehensive financial reporting based on International Financial Reporting Standards (IFRS). More than 120 representatives of business associations, small and medium businesses and EPAC members attended the event. The participants agreed that these reforms, once properly implemented, will improve transparency and the business climate overall.

Tax Administration Improvement. Analysis of Tax Dispute Cases: On November 10, G4G held a PPD on the Analysis of Tax Dispute Cases. Prior to the discussion, G4G short term tax experts, David Tomadze and Teimuraz Tsertsvadze, delivered their written opinions on the 10 most sensitive and repetitive issues in tax appeal cases heard by the RS and MoF dispute resolution boards and courts. Four conceptual issues: The principle of good faith; legal grounds for dismissal of tax appeals; use of indirect methods for assessment of tax liabilities; and cancelation of VAT credit were selected and discussed at the PPD by public and private sector representatives. The feedback received during the discussion was reflected in the final report.


Tax Administration Improvement. IFRS Trainings: Due to the increasing number of audits coupled with a high level of staff turnover, the RS is facing a constant need for new tax auditors with relevant knowledge and skills. To fill this gap, G4G supports IFRS trainings for newly hired tax auditors as well as builds the RS’s internal IFRS training capacity through a training of trainers (ToT) program. Currently, G4G is preparing the main ToT session. G4G consultant, Naira Kharkheli, completed the training course for RS auditors on IFRS. Two groups of trainees (52 in total) completed the training. G4G is considering to deliver the IFRS training to the third group of trainees in Quarter 2.

A group of future trainers (10 persons in total) have already been involved in the tutoring of junior auditors. The ToT session will be completed in Quarter 2.

Tax Dispute Cases Analysis: The number of tax disputes within the MoF system is increasing every year. The dispute resolution system becomes overloaded and results in delays, and increased compliance costs for taxpayers. In year 2, G4G and MoF leadership agreed to conduct an analysis of tax disputes (challenging audit results) considered by the MoF’s dispute resolution system and the judicial system to reveal the most problematic provisions of the Tax Code, examine the consistency of the existing tax dispute resolution practice and provide recommendations. G4G short-term tax consultants, Teimuraz Tsertsvadze and David Tomadze, conducted a screening of more than 1000 tax dispute cases related to audit decisions to identify relevant cases and repetitive issues. More than 500 cases, selected according


to the frequency and magnitude of underlying issues, were reviewed closely. On November 30, the experts submitted the final report on ten most sensitive and repetitive issues: The principle of good faith; use of indirect methods for assessment of tax liabilities; dismissal of appeals on the grounds of accepted tax liability; cancelation of VAT credit; use of discretionary powers; justification for an audit decision; return of overpaid tax; transportation without documentation; deductibility of bad debts; and taxation of employees’ benefits in-kind. Along with analyses the experts provided recommendations on possible solutions to the issues.

The findings of the assessment were discussed with MoF, RS and private sector representatives. G4G considers following up on implementation of recommendations by providing technical assistance in drafting of primary/secondary legislation or public ruling as necessary.

Estonian CIT Model: On December 5-6, G4G conducted a study tour to Estonia for RS representatives accompanied by G4G’s tax policy expert. The participants visited the Estonian Tax and Customs Board to receive first-hand information on the Estonian CIT model. Questions collected from the private sector by G4G were added to the planned topics of discussion. The main topics included: Estonian tax policy in general, main risks which appeared after adoption of the new CIT model, tax return forms, automatic cross-checking of information between these forms (as a useful tool for control), use of third party information and information technology (IT) support. It was acknowledged that Georgia will have to face risks specific to its own legal environment and persistent practice. Estonian taxpayers, audit firms and the RS were in an intensive learning process in the first two years and managed to adapt to the new environment with the help of continuous cooperation. The new model will enter into force on January 1, 2017. G4G plans to continue supporting RS and MoF in identifying and addressing the potential gaps that might occur in the implementation process.


Tax Audit Survey. In December, G4G grantee, the American Chamber of Commerce in Georgia (AmCham), completed the Tax Audit Survey. The survey reveals that there is a significant gap between initial (after audit) and final (after Dispute Resolution Council) assessments (often 50% to 100%), but this is largely due to the extensive use of the good faith principle, which enables businesses to avoid penalties if mistakes were made in good faith (good intentions, lack of knowledge). The findings indicate that auditors at the RS are not willing to use the same principle at their level of tax administration.

Other key findings include: (1) Lack of proper risk management – 63% of surveyed companies stated that the reason for their audit was the expiration of the statute of limitation and not based on risk assessment; (2) competence of tax auditors – auditors lack industry specific knowledge and understanding of accounting programs. However, a significant number of companies mentioned improvements in this regard; (3) unwillingness of tax auditors to interpret vague provisions in favor of companies – auditors prefer to interpret the Tax Code in the strictest possible way knowing that companies will appeal and the imposed tax liabilities will be reduced at the appeal stages. Tax auditors are not held accountable for such approach; (4) supporting voluntary compliance – although not directly related to the audit process, the service of personal tax advisors offered by RS was assessed positively by several companies. Notwithstanding the above mentioned, businesses were generally quite positive about RS’s work.

The results of the survey were presented to RS and private sector. AmCham will further discuss the survey results and the possible ways to address the identified issues at the Investors Council.


G4G continued to help the MoF in making informed, analysis-based policy decisions and serve as a catalyst for tax policy and administration issues. Through PPD held on November 4 on the new CIT model and collection of questions from the private sector, G4G and RS tried to identify and address the issues that might impede a smooth transition to the new system. G4G will continue to organize the dialogue between the private sector, RS and MoF in the process of CIT implementation as well as other tax reforms.


The RS and taxpayers might face an increased uncertainty in the initial phase after introduction of the new CIT model. G4G will closely cooperate with MoF, RS and private sector to ensure that the implementation challenges are identified and effectively communicated and addressed in a timely manner.


CUSTOMS ADMINISTRATION AND ENFORCEMENT REFORM 4.6

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





Authorized Economic Operators Program (AEO) Implementation. RS and G4G joint working group (WG) continues developing a procedural manual and self-assessment questionnaire for AEO.

The manual will define detailed procedural guidelines for customs officers and economic operators on AEO. The self-assessment questionnaire, a common practice in European customs administrations, is developed for interested economic operators to assess their eligibility in certain criteria. It saves time for pre-authorization audit of applicants. The WG will finalize the manual and questionnaire by the end of July 2017.

Customs Post-Clearance Control. The RS began customs field audits in October 2016. Two medium-sized companies were selected for the first field audit. The post-clearance audit (PCA) team completed its field work and collected data which was submitted for analysis. The final act of inspection will be developed in January 2017. Starting from January 2017, the PCA team will conduct audits according to an action plan developed last year in cooperation with G4G and German customs auditors.

On October 19-26, G4G organized the practical workshop for the Georgian customs audit team on PCA field audit with the involvement of German customs auditors. During the workshop, participants discussed the challenges faced during the audit and identified the solutions. Potential risks of the audit, methods of information collection, data analysis, and rights and responsibilities of companies under audit were also discussed.


No specific activities were planned within the reporting period.




Implementation of the AEO program will replace the existing “Gold List” program, which provides beneficial treatment for about 150 large-scale importers and other organizations regularly involved in import-export operations. These companies may face difficulties to qualify for the AEO program due to high standards and qualification criteria to be met. In order to allow businesses to conduct a relatively smooth transition from one regime to another, the two programs should operate in parallel for a reasonable timeframe.

TRADE FACILITATION/TRANSPORT AND LOGISTICS REFORM 4.7

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








Trade Facilitation System (TFS) Trainings. In October 2016, G4G grantee, Association of Freight Forwarders of Georgia (AFG), commenced the training sessions for transport and logistics sector professionals on the use of TFS. The objective of the TFS trainings is to enable participants to better understand the value and significance of TFS, and increase awareness on TFS scope and functions, and also system’s profiles for freight forwarding companies and shipping lines. During the training sessions, the attendees were given personal user account which gave them ability to operate in the system in testing regime. AFG has delivered a total of sixteen TFS training sessions in Tbilisi, Poti and Batumi, during which more than 80 freight forwarding companies (175 participants) specializing in containerized cargo shipments were trained on TFS and encouraged to join the system.

In January 2017, AFG will conduct final session of the training. AFG will continue to serve as a communication channel between the freight forwarding companies and Data Exchange Agency (DEA) in the process of modifying/improving TFS functionality.

Caucasus Transit Corridor (CTC) Competitiveness Study. G4G conducted the grant selection process for CTC Competitiveness Study. The study will identify infrastructural, policy, technology and capacity gaps in Georgia and Azerbaijan as transit corridor countries. The grant program is expected to begin February 2017 and will last for four months.




The successful operation of TFS requires high-level coordination between various public and private sector stakeholders, especially at the initial stage of the launch when the system could reveal faults and shortcomings, requiring prompt corrective action. G4G will closely follow the development of the system and continue to play a facilitator’s role until the system’s operation and governance reach sustainable levels.

BANKRUPTCY AND LIQUIDATION REFORM 4.8

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





The public-private legal drafting committee established under MoJ continued working on the new Law on Insolvency. The work is facilitated by the EU project “Support to the Development of Private and Administrative Law Systems in Georgia” (implemented by GiZ).The committee developed several key concepts of the new law.

The interim results of the drafting committee were presented at the conference “Various Aspects of New Insolvency Law Concept of Georgia” held on November 28, where G4G also participated. German experts and the members of the drafting committee discussed the new approaches to the issues such as commencement of insolvency proceedings; creditors’ right; and incentives and mechanisms for rehabilitation of enterprises. The conclusions from the conference will be used by drafting committee in the development of draft Insolvency Law.

G4G conducted several consultations with the MoESD and MoF on insolvency concept development and coordination issues with the MoJ.

Once stakeholders agree on a reform concept and first version of the law is finalized, G4G’s international expert will provide legal revision of the draft Law.



In Quarter 2, G4G plans to issue a grant to build the capacity of insolvency office holders to be able to effectively contribute to the reform’s implementation.




The strong political will to expedite the reform is lacking. The major constraint impeding the process is the lack of consensus among stakeholders (MoESD, MoJ, MoF and private sector) over the National Bureau of Enforcement’s (NBE) role as a trustee in insolvency proceedings.

LAND OWNERSHIP REGISTRATION REFORM 4.9

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





The implementation of the Systemic Land Registration Pilot Project faced consistent delay even though the funding ($2.4 million) was allocated by the WB in 2014. Since November 2016, the process was expedited under the pressure of EU Budget Support program which was tied to the pilot project’s implementation. By the end of December, National Agency of Public Registry (NAPR) had begun the project manager’s selection process, development of terms of reference (ToR) for the surveying service procurement as well as developing the guidelines for the project’s implementation.






MoJ and NAPR display skepticism on systemic land registration and the sporadic approach is preferred over the systemic one. Therefore, there is a risk that Government will implement the pilot project in haste and without due regard to the ultimate objective – a nationwide and comprehensive systemic registration.

STATE PROCUREMENT SYSTEM 4.10

REFORM OBJECTIVE To improve transparency of the state procurement system and will increase private sector participation resulting in increased quality.



PPD on State Procurement System. On December 21, G4G, in collaboration with SPA, facilitated a PPD event on novelties in the state procurement system implemented during 2016. Head of SPA, Levan Razmadze, presented 2016’s modifications as well as new features that will be launched in 2017. G4G COP, Natalia Beruashvili made a presentation on G4G reform areas and platforms that are used by the project to facilitate dialogue between the public and private sectors. More than 120 representatives attended the event from civil society and the business sector. The event included a Q&A session and attendees inquired about methods of procurement including two-stage tenders and closed tenders, and shared their concerns and experiences. Razmadze announced that SPA will continue regular meetings


with business representatives during 2017 to better understand their needs, identify common challenges and work together on solutions.


Following a SPA request to address gaps identified by the Business Perception Survey on State Procurement (conducted by G4G), G4G’s local communication expert, Konstantine Magradze, developed the Three-Year State Procurement Communication Strategy and Year 1 Action Plan. During September-November, Magradze conducted several interviews with SPA leadership, reviewed legal documentation, information materials and media monitoring files in order to have a full picture regarding the current PR practices of SPA.

G4G also conducted a strategic planning workshop attended by SPA employees. The participants discussed the current practice of public relations and challenges in the outreach process; conducted strengths, weaknesses, opportunities, and threats (SWOT) analysis exercise for the communications plan; elaborated on the communication vision and mission based on SWOT criteria; and determined strategic goals.

Based on the received feedback, G4G finalized the communication strategy and action plan. The documents equip the SPA and state procuring agencies with the necessary knowledge, tools and methods to effectively reach out to the private sector on state procurement opportunities and explain its benefits.




During PPDs conducted by G4G, the need for regular consultations became evident and resulted in intensive dialogue sessions between SPA leadership and the private sector. At the same time, the issues revealed during these PPDs were reflected in the new reforms implemented by SPA.



PENSION REFORM 4.11

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





Public Outreach. G4G public relations (PR) expert, Rafal Szymczak, commenced his assignment on developing the Pension Reform Public Outreach Strategy and Action Plan. During Quarter 1, Szymczak conducted two site visits in Georgia to explore stakeholders’ opinions regarding Pension Reform, as well as to understand the government’s plans for reform implementation. During the first visit, G4G organized 15 meetings with government institutions, employer’s organizations, trade unions, financial industry representatives, the Georgian Stock Exchange and independent experts. The following key findings were identified: Implementation of the reform is generally supported (with some doubts and question) by stakeholders; the reform is seen as important for the economy of Georgia; reform implementation constraints could stem from the lack of credibility of Georgian politicians and the government. Also, there are conflicting perspectives on how employers will influence (encouraging/discouraging) employee participation and participation rates.

During the second visit in November, Szymczak held a group discussion with six media representatives specializing in business broadcast to explore the role of different media sources in shaping discourse on public issues. Journalists expressed their views on demographic issues, as well as attitudes and behavioral characteristics of Georgians in regards to long-term savings.


During November – December, 2016, G4G and its subcontractor ISET-PI, conducted 10 focus group interviews in Tbilisi and selected regions to understand public perception of the Pension Reform concept. Four focus groups were held in Tbilisi and six in selected regions (Gori, Kutaisi, Kvareli, Telavi). The participants shared their views on the current economic situation, credibility of institutions, risks associated with the reform and expectations about their future financial situation. The focus group results will be used in the development of Pension Reform Public Outreach Strategy and Action Plan.

The first working version of the Strategy and Action Plan will be available in January 2017. The documents will be discussed in detail with Government and other interested parties during Szymczak’s third trip planned for February 2017.


Regulatory Impact Assessment. In Quarter 1, G4G grantee, ISET-PI, conducted the data collection, stakeholder consultations and defined the reform objective and policy alternatives to be studied by RIA on Pension Reform. It was agreed that the policy alternatives for RIA analysis will include: Semi-mandatory enrollment (so called opt-out) scheme - based on the current draft law, and mandatory enrollment schemes for the population below age of 40 years. In December, the first findings of the RIA were presented to MoESD. The RIA will be completed in January 2017.




The success of the new pension system will largely depend on the number of participants in the system. An effective PPD and outreach strategy is an important success factor, since the system is voluntary and potential participants may be skeptical. To address this issue, G4G is assisting the GoG in organizing PPDs as well as designing the Pension Reform Public Outreach Strategy. The GoG will also rely on RIA to tackle skepticism on the reform.

CAPITAL MARKETS REFORM 4.12

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




GOVERNMENT OF GEORGIA CAPACITY STRENGTHENING

G4G continues its support to implementation of the Capital Market Development Strategy and Action Plan. G4G will provide technical assistance to the MoESD in drafting the Law on Investment Funds. G4G will facilitate the establishment of the public-private legal drafting committee and engage international and local experts to educate the committee members on international best practice of regulating the investment funds’ activities and develop a detailed concept of the Law. In December, G4G conducted the competition for the positions of international and local experts. The activity will commence in Quarter 2.

PRIVATE SECTOR AND CSO STRENGTHENING





Changes in the GoG’s Capital Market Working Group (CMWG) led to revision of the initial concept of the capital market reform and development of the new strategy and action plan resulted in delay of reform advancement. There is a lack of commitment in the near future to take initiative on this reform.


CROP INSURANCE REFORM 4.13

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


SUPPORT PUBLIC-PRIVATE DIALOGUE


GOVERNMENT OF GEORGIA CAPACITY STRENGTHENING

GoG continued a state-subsidized agricultural insurance pilot project. The project has been implemented with a modified design as to allow the collection of the data for the development of the long-term agricultural insurance model National Agricultural Risk Management Agency (NARMA).

In the upcoming quarter, G4G plans to provide technical assistance to Agricultural Project Management Agency (APMA) on premium rate methodology, underwriting standards for crop insurance and facilitating PPD among all stakeholders to continue the discussions on the long-term agricultural insurance model.






Insurance companies have been skeptical regarding NARMA, particularly after the losses incurred in the pilot project. They have also voiced concerns that their long-term commitment may not be possible unless a long-term commitment is made by the government for larger sums to achieve sufficient market penetration.

INNOVATION AND TECHNOLOGY POLICY 4.14

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


SUPPORT PUBLIC-PRIVATE DIALOGUE

Legal Framework. Innovation and Technology: On November 14, under the Global Entrepreneurship Week’s activities, G4G organized the first PPD on crowdfunding as an alternative source for attracting investments for start-ups. Panelists included representatives from NBG, GITA and the private sector. The future crowdfunding legal framework and key challenges associated with this mechanism were discussed together with private sector representatives. The discussion resulted in agreement that in order to promote the development of an entrepreneurship friendly ecosystem, it is important to streamline the legislation for crowdfunding.


Innovation and Technology. G4G representatives continued to participate in four WGs organized by GITA to facilitate: (1) Legislative reforms; (2) innovative infrastructure; (3) education and science; and (4) PR and publicity.


GITA is currently working on the second stage legislative package to enable the development of crowdfunding, technology transfer and early stage innovation financing mechanisms. GITA and G4G conducted initial research and reviewed several countries’ models of crowdfunding regulation. The UK was identified as one of the most effective models for equity-based crowdfunding, technology transfer and so called catapult innovation centers.

On November 27-30, G4G facilitated a study tour of GITA and NBG representatives to the UK. The meetings were held with Innovate UK, Cambridge Enterprise, Judge Business School (JBS) Cambridge Entrepreneurship Center and Cambridge Center for Alternative Finance (CCAF). UK counterparts shared their experience and suggested recommendations for the planned developments in crowdfunding and technology transfer areas. New lines of communication and partnership opportunities were also discussed during the meetings. In addition, with the assistance of the Georgian Embassy in the UK, GITA presented new innovation and technology developments and projects in Georgia for the Georgian Diaspora.

Law on E-Commerce. MoESD, with G4G support, continues the development of the Law on e-Commerce. The legislation was reviewed by EU experts as adoption of the Law on e-Commerce is part of the Government’s commitment under the AA. The aim of the Law is to protect consumers by making information services more transparent and standardized. In addition, the Law on e-Commerce will regulate the rights and obligations of intermediary service providers in the e-commerce process. G4G reviewed the draft based on the EU Directive as well as the laws of several EU member states. The adoption of the Law is planned for the 2017 Spring Session of Parliament.


Sector Study. G4G in coordination with GITA designed a grant program “Georgian Innovation and Technology Sector Study” and conducted the competitive tender to select the grantee. Under the grant, the methodology for conducting the study and the first annual sector study will be developed. The study will identify the key areas where Georgia has a competitive advantage, create an outline of the sector, describe the development progress and serve as an investor-friendly overview. The report should be conducted annually for timely identification of trends and opportunities. As part of the study, the grantee will prepare a directory of innovation sector businesses and professionals.

Regional Development. G4G grantee - “Elva” - began implementation of the “Regional Innovation Events” grant program. The grantee has been conducting awareness/training sessions and conferences in different regions of Georgia with the focus on innovation development policy and entrepreneurship.


G4G continues consultations and discussions with MoESD and GITA, the private sector, media and CSOs around the legislation and policy development on innovation. By actively engaging the private sector and interested CSOs, G4G will help to ensure that proposed incentives, policies and infrastructure are conducive to innovation development in Georgia.


Innovation is a relatively new policy area for Georgia, with public awareness and understanding being limited at this time. With limited public knowledge of the programs and opportunities GITA has developed, innovative activity from the public is low, and public feedback on policy remains limited.

BUILDING CODE REFORM 4.15

REFORM OBJECTIVE Effective outreach will raise awareness and preparedness on new building regulations for

sector stakeholders.






During Quarter 1, G4G grantee, Georgian Institute of Building (GIB), commenced implementation of the “Building Code Awareness Raising and Training” program. In September, GIB conducted Phase I ToT sessions in West and East Georgia. The purpose of the training is to help the GoG to build a trainer network capable to provide Non-Structural Building Code training to construction officials in the future.

In addition, GIB delivered Phase I trainings to the staff of Tbilisi, Kvemo-Kartli, Shida-Kartli, Samtskhhe-Javakheti, Racha-Lechkhumi, Imereti, Guria, Adjara, Shida-Kartli and Mtskheta-Mtianeti Municipalities, as well as the MoESD, Technical and Construction Supervising Agency and the private sector in Batumi and Kutaisi. The Phase I trainings covered: Use and occupancy classification; types of construction; general building heights and areas; fire and smoke protection features and protection systems; means of egress and accessibility; detailed occupancy requirements; exterior wall coverings and roofs. Trainees were also given assignments for Phase II training.

In total, GIB delivered 17 trainings to approximately 30 trainers and 250 participants trained on Non-Structural Building Code.

GIB also conducted the Phase II ToT session for public and private sector representatives in the West and East Georgia. This part of the training was practical and included the presentation and detailed discussions over the sample designs (apartment residential building, mixed use high-rise building, school and shopping mall) developed according to Government Resolution #41 on Non-Structural Building Code. The Phase II three-day training was also delivered to the staff of the Technical and Construction Inspection of the MoESD.


Building Code Awareness Raising. Refer to “GOG CAPACITY STRENGTHENING” under section 5.15.1.




The new requirements may increase compliance costs for construction businesses. If not communicated effectively, the new regulations could face resistance from the private sector.


WORK PLAN OUTPUT TABLE 5.Component Activities Outputs Timing Comments

Description Status Added By

1. Overall Institutionalized Framework for Public Consultation

Maturity: Implementation Lead: Maya Eristavi/Tamar Kapianidze

Priority: High Impact: Sustainable institutionalized dialogue platform will improve the quality of all legislation. Creating the culture of collaborative consultation (CCC).

Counterparts: MoESD, RS, MoA, MoE, MoJ, MoF, IDFI,TI, Youth Parliament of Georgia Donors: EBRD, GiZ, EU

1.1. Support Public Private Dialogue

1.1.1. Support National PPD Platform. (1)

Assist MoESD in ongoing management of Trade Advisory Group (TAG). (a) Organize TAG meetings.

2 TAG meetings Planned WP3 Oct-16 Sep-17

(b) Work with TAG members and subcommittees to increase TAG capability and performance.

2 DCFTA subcommittee meetings

Cancelled WP3 Oct-16 Sep-17 Cancelled due to shift in priorities by MoESD.

2 Policy papers on TAG priority issues

In Progress

WP3 QTR 1

Dec-16 Sep-17

SoW developed.

(c) Organize study tour for TAG Chairman and Deputy Chairman.

1 Study Tour Planned WP3 Mar-17 Sep-17

(d) Assist MoESD in DCFTA awareness raising campaign.

3-5 awareness raising meetings

In Progress

WP3 Oct-16 Sep-17

1 meeting held with journalists.

(e) Develop DCFTA policy papers and organize PPD discussions.

3 policy papers and 3 PPD discussions

In Progress

WP3 Dec-16 Sep-17

SoW developed.

(2) Organize PPD events on contentious policy reform issues.

5 PPD events In Progress

WP3 Oct-16 Sep-17 4 PPDs held.


(3) Assist the Georgian Investment Council platform.

Economic Policy Analysis/Papers

In Progress

WP3 Oct-16 Sep-17 Participated in Estonian CIT tax working group under investment council.

(4) Support Business-Parliament Platform: Establish thematic PPD discussions in G4G reform areas.

3-5 sessions In Progress

WP3 Oct-16 Sep-17 RFA announced, winner selected.

(5) Raise Awareness on Economic Policy Reforms.

Promotional materials on economic policy and reforms (8-10 products)

In Progress

WP3 Oct-16 Sep-17 Video in development.

1.1.2. Engage Media in the National PPD.

(1) Conduct DCFTA awareness raising trainings for economic profile journalists.

10 training sessions Planned WP3 Nov-16 Sep-17

(2) Conduct trainings on G4G reforms and site visits for WG member journalists.

2 trainings/2 local site visits

In Progress

WP3 Oct-16 Sep-17 1 DCFTA training conducted.

(3) Conduct "Coffee & Conversation" sessions on G4G reform areas.

3 coffee & conversation sessions

In Progress

WP3 Oct-16 Sep-17

(4) Based on the findings of assessment on constraints journalists face in covering reforms, conduct capacity building trainings for economic profile journalists.

10 training sessions In Progress

WP2 Nov-15 Sep-17

6 training sessions held. End date extended to Sep-17 from Dec-16.

1.1.3. Engage Youth in the National PPD.

(1) Support Youth Debate. Youth debates on G4G reforms

In Progress

WP2 Oct-15 Sep-17 Grant in Progress. Period extended from May-17 to Sep-17 due to RFA re-announcement.


(2) (a) Build capacity of youth to effectively communicate and advocate for reforms.

3-5 capacity building workshops

In Progress

WP3 Oct-16 Sep-17 Student program on DCFTA initiated. Entrepreneurship advocacy conference conducted.

(b) Build capacity of youth in regions to effectively communicate and advocate for reforms.

Capacity building workshops

In Progress

WP3 Oct-16 Sep-17

(3) Conduct question and answer sessions in G4G reform areas to raise youth awareness.

1 regional session (10-15 meetings) and 1 Tbilisi session (10-15 meetings)

Planned WP3 Oct-16 Sep-17

(4) Conduct Internship development among partner organizations in order to increase youth's capacity as future leadership.

1-3 internship events In Progress

WP3 Oct-16 Sep-17

1.1.4. Engage Women in the National PPD. Strengthen women’s participation in

policy making and economic reforms.

Annual Conference - Women’s Role in Economic Growth and Policy Development

Planned WP3 Feb-17 Apr-17

(2) (a) Raise capacity for women leaders in civil society and the private sector.

3-5 capacity building workshops in Tbilisi


(b) Raise capacity for regional women leaders in civil society and the private sector.

Capacity building workshops in regions

In Progress

WP3 Oct-16 Sep-17 RFA issued, winner selected.

(3) Conduct consultation sessions for women entrepreneurs to better advocate and involve in policy making process.

1-2 capacity building workshops

In Progress

WP3 Oct-16 Sep-17 1 workshop completed.

(4) Build the capacity and increase leadership skills of female students.

2-3 workshops In Progress

WP2 Oct-16 Sep-17

1.1.5. Develop and Implement Reform Progress Tracking System. Educate and

Train Stakeholders, Issue Annual Reform Evaluation Reports

Reform Progress Tracking System Design and Implementation

In Progress

WP1 Feb-15 Sep-18 Design completed.

5 Workshops/Events In Progress

WP3 Oct-16 Sep-17

Annual Report In Progress

WP3 Oct-16 Sep-17


1.1.6. Develop and Implement PPD Tracking System. Educate and Train

Stakeholders, Issue Annual PPD Evaluation Reports

PPD Tracking System development and implementation

In Progress

WP1 Jul-15 Sep-18

2 Capacity Building Training Sessions

In Progress

WP3 Oct-16 Sep-17

Annual Report In Progress

WP3 Oct-16 Sep-17

1.2. GoG Capacity Strengthening

1.2.1. Support National RIA Framework.

(1) Conduct study tour for civil servants on RIA National Framework practice in an EU member state.

Study Tour Planned WP3 Oct-16 Sep-17

(2) Conduct training on RIA implementation and methodology for civil servants

Training In Progress

WP3 Oct-16 Sep-17

(3) Conduct 1-2 information meetings on RIA National Framework issues

1-2 PPDs In Progress

WP3 Oct-16 Sep-17 1 PPD conducted on consumer right's protection.

1.2.2. Implement RIAs. Conduct RIAs for

selected priority policy reforms. 3-4 RIAs on selected reforms

In Progress

WP2 Jun-16 Sep-17 Consumer Right's Protection Law complete, Pension Reform and Water Law RIAs in progress.

1.2.3. Support GoG capacity building for evidence-based analysis.

Business Perception Survey on policy reforms

Complete WP2 Oct-15 Dec-16 Completed Dec-16.

NEW: Survey of State

small and medium business development programs.

Planned WP3 QTR 1

Jan-17 Sep-17

1.3. Private Sector & Civil Society Organizations Strengthening

1.3.1. Training for Association Management. Increase capacity and

sustainability of EPAC member organizations.

2 workshops In Progress

WP3 Oct-16 Sep-17 SoW in development.

1.3.2. EPAC Coalition Strengthening.

Develop the capacity of targeted private sector and civil society actors to organize stakeholders and advocate for improvements to the country’s economic competitiveness.

EPAC Action Plan Planned WP3 Oct-16 Sep-17


1.3.3. EPAC Members’ Capacity Building.

Conduct workshops on public policy advocacy, leadership and executive communication training; how to engage effectively with public officials when representing broad business interests enhance association governance, communication and branding for EPAC.

2 workshops Planned WP3 Oct-16 Sep-17

1.3.4. Assist EPAC Platform. Conduct

EPAC member capacity building on EU-AA issues.

1-3 DCFTA workshops Planned WP3 Oct-16 Sep-17

1.3.5. Assist EPAC Coordination. Support

for bi-monthly and ad-hoc meetings, discussions, covering current business issues and obstacles to trade, speakers and presentations.

Information Sessions/Periodic Meetings

In Progress

WP3 Oct-16 Sep-17 4 meetings held.

2. Energy Strategy Reform

Maturity: Design Maturity: Design Lead: Giorgi Chikovani

Priority: Priority: High

Priority: High Impact: Coherent Strategy will lead to the effective, economically justifiable and sustainable energy production, delivery and consumption consistent with environmental requirements.

Counterparts: MoE and its agencies Donors: USAID EC-LEDS


2.1.1. No specific activities are planned.


2.2.1. MoE Capacity Building on Energy Strategy. Evaluate alternatives for demand

forecasting under Energy Market transformation.

Report on alternatives for demand forecasting

In Progress

WP3 QTR 1

Nov-16 Sep-17

SoW developed.

2.2.2. MoE Capacity Building on Energy Strategy (M-CEP). Evaluate international

electricity production models to consider for Georgia's structure, and identify most suitable model for adoption.

Report on electricity production models

In Progress

WP3 Oct-16 Sep-17 SoW developed.


2.3.1. CSOs Capacity Building on Energy Strategy. Conduct training and awareness

session for increasing capacity of CSOs in Energy Strategy.

1-2 workshops with CSOs In Progress

WP3 Mar-17 Sep-17 1 workshop completed.


3. Electricity Trading Mechanism (ETM)

Maturity: Design Lead: Giorgi Chikovani

Priority: High Impact: Effective ETM to enable FDI necessary for development of SME Hydro-power plants which are vital for clean and low cost energy for Georgia.

Counterparts: MoE, ESCO, GNERC, GSE Donors: IFC, WB, ADB, EBRD, KfW, EU Twinning, NARUC, USEA


3.1.1. ETM PPD. Hold PPD on ETM

including hourly settlement procedures for the electricity market

2 PPD Events In Progress

WP3 Oct-16 Sep-17 1 PPD held.

3.1.2. ETM Conference. Organize Annual

ETM Conference for private and public sector stakeholders.

Conference Planned WP3 Oct-16 Sep-17


3.2.1. Capacity Development on ETM.

Assist MoE and other ETM stakeholders in testing of ETM market model in collaboration with EBRD and WB.

(a) Simulations Planned WP3 Oct-16 Sep-17

(b) Workshops Planned WP3 Oct-16 Sep-17

3.2.2. Capacity Building on ETM.

Organize Study Tour for GoG stakeholders and private companies.

Study Tour to selected country

In Progress

WP3 Nov-16 Sep-17

Planning underway.

3.3.3. RIA on ETM. Conduct RIA on ETM. RIA In Progress

WP3 Oct-16 Sep-17 SoW under development.

3.3. Energy (Electricity) Trading Policy Governance

3.3.1. ETM Settlement and Clearing Mechanism. Work closely with GoG in

developing hourly settlement procedures and clearing mechanism for the electricity market.

Recommendations In Progress

WP3 Oct-16 Sep-17 Hourly settlement procedures under discussion.

3.3.2. Support GoG in fulfilling obligations under Energy Community Treaty. Provide on demand technical

assistance in Energy Community integration process on ETM.

Consultations and technical report(s)

In Progress

WP3 Oct-16 Sep-17 SoW under development.


3.4.1. Turkey-Georgia Cross-Border Trade. Assist GoG and private sector in

improving cross-border trading.

2-3 workshops In Progress

WP3 Oct-16 Sep-17 2 workshops conducted.


3.4.2. Energy Market Players (MPs).

Capacity building of Market Players. 1-3 trainings/workshops on ETM and/or market player development

In Progress

WP3 Dec-16 Sep-17

2 workshops conducted. (M-CEP and ETM)

4. Water Resource Management Reform

Maturity: Implementation Lead: Giorgi Chikovani

Priority: High Impact: Equitable transparent sustainable allocation of fresh water resources across multiple competing interests is necessary to prevent grave failure to serve legitimate needs.

Counterparts: MENRP, MoE, MoESD, MoA, MRDI, GSE, GNERC, MoHLSA Donors: ADB, UN, WB, EU, KfW, EIB, MCG


4.1.1. Water Resource Management PPD.

Support MENRP in arranging PPD events on water management related policy and law.

1-3 PPD Events In Progress

WP3 Dec-16 Sep-17

1 PPD conducted on water demand forecast.


4.2.1. Tariff Methodology for Irrigation and Drainage. Conduct capacity building

events for GNERC and GA.

1-3 workshops Planned WP3 Oct-16 Sep-17

4.2.2. Support Drafting of Hydro-Amelioration Law. Participate as working

group member and provide comments-recommendations for the draft Law.

Information Sessions/Periodic Meetings

In Progress

WP2 QTR2

Mar-16 May-17

New Dep. Minister reviewing status.

4.2.3. Develop Water Framework Directive Implementation Guidance Document for Georgia. Develop technical

document(s) for river basin management.

1-2 technical reports In Progress

WP3 Oct-16 Sep-17 RFA announced.

4.3. Water Resource Management

4.3.1. Water Demand Forecast. Develop

water demand forecast for various sectors. Assessment In

Progress WP2 Apr-16 Jan-17 Assessment

report under revision.

4.3.2. Water Allocation Scenarios.

Develop water resource allocation scenarios in WEAP model

At least 2 allocation scenarios for Aragvi River Basin

In Progress

WP2 Sep-16 Jul-17 RFA announced, winner selected.

4.3.3. Environmental Flow Assessment.

Testing and training. Environmental flow methodology finalized through testing on pilot river basin and training sessions

In Progress

WP2 Mar-16 May-17

2 training sessions completed.


4.3.4. Gauging Station at Aragvi River Basin. Support NEA on installing gauging station based on agreed location and parameters; deliver training on proper operation and maintenance procedures to ensure system sustainability.

At least 2 gauging stations installed

In Progress

WP3 Oct -16 Sep-17

RFA finalized, to be announced.

Training


4.4.1. Water Resource Management White Paper. Develop White Paper -

Sectorial policy analysis document.

White Paper Planned WP2 Apr-17 Sep-17

4.4.2. Innovative Technologies for Water Reuse and Wastewater Treatment.

Support MENRP and the private sector in analyzing the most applicable technologies for Georgia in wastewater treatment and water reuse.

Handbook on best practices and innovative technologies

Complete WP2 Apr-16 Feb-17 Completed 16-Dec, 2016.

Conference Complete WP2 Apr-16 Feb-17 Conference held 16-Dec, 2016.

4.4.3. RIA on WRM Law. Conduct RIA on

WRM Law. RIA results In

Progress WP3 Oct-16 Sep-17 RFA announced,

winner selected.

5. Tax Enforcement and Administration

Maturity: Design/Implementation Lead: Maia Daiauri

Priority: High Impact: Direct and immediate positive effect on tax compliance for all businesses.

Counterparts: MoF, RS, BAG, Parliament, AmCham, ICC, Georgian Banks Association Donors: EU Twinning, UST, IFC


5.1.1. Tax Code Review. Discuss RIA

results on EU VAT Directive provisions.

1 PPD event Planned WP3 Oct-16 Sep-17

5.1.2. Tax Code Review. Organize PPD to

discuss the public rulings.

1 PPD event Planned WP3 Mar-17 Sep-17


discuss the problematic provisions of the Tax Code revealed by the analysis of Tax Dispute Cases.

1 PPD event Complete WP3 Oct-16 Dec-16


discuss Estonian CIT model and new accounting Law.

1 PPD event Complete WP3 Oct-16 Dec-16


5.1.5. Tax Administration Improvement.

Discuss the result of the assessment on production and natural losses.

1 PPD event Planned WP2 Oct-16 Feb-17 End date postponed from Dec-16 to Feb-17 due to RS taking additional policy considerations.

5.2. GoG Capacity Building


Conduct IFRS training for tax auditors. 3 training sessions In

Progress WP2 Jan-16 Feb-17 2 training sessions

completed, 3d underway.

NEW: 1 additional training

session for tax auditors Planned WP3 QTR

1 Feb-17 May-17

5.2.2. Tax Code Review. Provide technical

assistance in drafting of public rulings on problematic issues of tax legislation.

Draft public ruling Planned WP3 Oct-16 Sep-17 End date moved from Mar-17 to Sep-17 due to change of priorities of GoG.


Conduct analysis of Tax Dispute Cases. Analysis Complete WP2 Sep-15 Nov-

16

5.2.4. Tax Code Review. Propose

legislative amendments and/or secondary legislation to address the issues identified by Tax Dispute Case Assessment.

Recommendations Complete WP3 Dec-16 Sep-17

Recommendations covered by analysis of tax dispute cases.


Conduct study visit to Estonian RS and MoF to study administrative aspects of the Estonian CIT regime (IT, risk identification and assessment, etc.).

Study visit Complete WP3 Dec-16 Mar-17 Completed in Dec-16.



5.3.1. Tax Code Review. Conduct RIA on

EU VAT Directive provisions. Engage think tanks to conduct RIA.

RIA report Planned WP3 Oct-16 Sep-17


Raising of taxpayers’ awareness on tax policy and administration.

2 media tours Planned WP2 Oct-16 Sep-17

QA brochures Planned WP2 Oct-16 Sep-17

Plain Language Guide on Estonian CIT



Conduct ex-post economic impact study on Tax Payment Simplification reform.

Assessment report Planned WP3 Oct-16 Sep-17


Conduct RS analysis relevant to TADAT indicators.

Analysis Planned WP3 Nov-16 Sep-17

5.3.5. Tax Audit Survey. Conduct survey

reviewing cause, effect, and perception of tax audits among private sector.

Tax Audit Survey Complete WP2 Jan-16 Dec-16

6. Customs Administration and Enforcement

Maturity: Implementation Lead: Bondo Bolkvadze

Priority: High Impact: Elimination of barriers and inefficiencies will have immediate impact on cross-border trade.

Counterparts: RS, GFFA, GIRCA Donors: GiZ, US Customs (ask USAID to coordinate the meeting)


6.1.1. Authorized Economic Operator (AEO) program implementation. Conduct

PPD event on AEO concept.

1 PPD Planned WP3 Dec-16 Sep-17

Planned for QTR 3. End date moved from Apr-17 to Sep-17 due to needs of GoG.

6.2. GoG Capacity Organizations Strengthening

6.2.1. Authorized Economic Operator (AEO) program implementation. Assist

RS in developing standard operation and technical manual on AEO.

Recommendations for operational manual

In Progress

WP3 Dec-16 Jul-17 Draft self-assessment questionnaire and procedural manual prepared.


6.2.2. Authorized Economic Operator (AEO) program implementation. Capacity

building of RS PCA staff on authorization and monitoring of AEOs.

At least 1 training session in Georgia

In Progress

WP3 Dec-16 Sep-17

Seeking consultant.

6.2.3. Customs Post-Clearance Control.

Provide technical assistance to build capacity of RS PCA.

2-3 training sessions in Georgia

In Progress

WP3 Dec-16 Sep-17

1 training session conducted in Oct-16.


6.3. No specific activities are planned.

7. Trade Facilitation/Transport and Logistics

Maturity: Implementation Lead: Bondo Bolkvadze

Priority: High Impact: Elimination of barriers and inefficiencies will have immediate impact on cross-border trade and facilitate greater integration with EU.

Counterparts: RS, MoESD, Georgian Railway, GFFA, GIRCA, AmCham, BAG, ICC, EUGBC Donors: EU, GiZ, USAID REG


7.1.1. Trade Facilitation System (TFS).

Coordinate public-private cooperation for TFS tariff setting and further development.

1 TFS Steering Committee meeting


7.1.2. Caucasus Transit Corridor Competitiveness Study. Trade and

Transport Conference around the findings of the Caucasus Transit Corridor Study.

1 Conference Planned WP3 Jan-17 Jun-17 End date moved from Feb-17 to June-17 due to awaiting CTC study completion.




7.3.1. Caucasus Transit Corridor Competitiveness Study. Update Caucasus

Transit Corridor Competitiveness analysis.

Updated Study In Progress

WP2 Sep-16 Jun-17


7.3.2. TFS User Training. Provide user

training on system. 5 Training Sessions Complete WP2 May-16 Jan-17 16 trainings

conducted.

2 Awareness Meetings In Progress

WP3 QTR 1

Dec-16 Mar-17

8. Bankruptcy and Liquidation

Maturity: Design Lead: Tamuna Buadze

Priority: Medium Impact: Reformed bankruptcy regime will remove barriers to entrepreneurship, efficiently recycle assets back to productive use and restore viable businesses to financial health through business rescue.

Counterparts: MoESD, MoJ Donors: GiZ


8.1.1. Advocate for Insolvency Reform.

Conduct PPDs on Insolvency Reform. 2 PPDs Planned WP3 Oct-16 Sep-17


8.2.1. Legal Drafting. Review the draft

Law on Insolvency. Comments and recommendations on draft Law on Insolvency


8.2.2. Legal Drafting. Study visit to USA to

learn the US system of rehabilitation. Study visit Planned WP3 Oct-16 Jun-17


8.3.1. Advocate for Insolvency Reform.

Facilitate mobilization of the private sector on Insolvency Reform.

2 Workshops In Progress

WP3 Oct-16 Sep-17

9. Land Ownership, Registration and Titling

Maturity: Implementation Lead: Tamuna Buadze

Priority: High Impact: Certainty, clarity and predictability in land rights is crucial for effective economic development of land. This is currently a major barrier to the investment.

Counterparts: MoJ, NAPR, MoESD, MoA, MoE, MRDI, Local Municipalities Donors: WB to provide $2.1 million loan for project implementation; EU budget support of 80 million might include nationwide rollout of land registration reform starting from 2017.


9.1.1. Support in Pilot Project Implementation. Facilitate PPD in the

process of pilot implementation to collect the feedback and adjust the approaches.

1 PPD Planned WP3 Oct-16 Sep-17

9.2. GoG Capacity Strengthening.





10. State Procurement System

Maturity: Implementation Lead: Tamuna Buadze

Priority: High Impact: Educating stakeholders and the private sector will improve transparency of the state procurement system and will increase private sector participation resulting in increased quality.

Counterparts: State Procurement Agency Donors: USAID, EU, WB, EBRD, ADB


10.1.1. State Procurement. Facilitate PPD

event on procurement system through the involvement of business associations.

3 PPDs In Progress

WP2 Oct-16 Sep-17 1 PPD conducted.


10.2.1. State Procurement Dispute Resolution Mechanism. Develop concept

on new dispute resolution mechanism.

Recommendations Planned WP3 Oct-16 Jan-17

10.2.2. Strategy. Develop Strategy and

Action Plan to address issues identified by Business Survey on State Procurement.

Strategy and Action Plan Complete WP2 Apr-16 Nov-16


10.3.1. State Procurement Awareness.

Conduct business awareness raising activities on state procurement opportunities to address the gaps identifies by State Procurement Survey.

At least 5 training sessions Planned WP3 Nov-17 Sep-17

Promotional video Planned WP3 Nov-17 Sep-17

11. Pension Reform

Maturity: Design Lead: George Amzashvili

Priority: High Impact: Effective public dialogue on anticipated pension reform is crucial to its acceptance by the public.

Counterparts: MoESD, MoF, Parliament, Private Sector Donors: ADB, WB


11.1.1. PPD on Pension. Facilitate PPD

event on pension reform through the involvement of business associations.

1 PPD Planned WP3 Sep-16 Dec-16


11.2.1. Public Outreach. Provide advisory

support in designing the public outreach campaign for the reform.

Recommendations to GoG on public outreach campaign

In Progress

WP1 Sep-16 Mar-17


11.2.2. Institutional Support. In

coordination with ADB, provide technical assistance in developing the pension system.

Recommendations Planned WP3 Oct-16 Jun-17


11.3.1. Pension Reform Awareness Raising. Raise awareness on Pension

Reform among journalists.

Offsite session with journalists


11.3.2. RIA on Pension Reform. Conduct

RIA on Pension Reform. RIA report In

Progress WP2 Jul-16 Feb-17

12. Capital Market Reform


Priority: High Impact: Supporting the public and private sectors in preparation for implementation of reforms will enable both to participate in the reformed market and raise confidence in the system.

Counterparts: MoESD, MoF, NBG, Georgian Stock Exchange, Parliament Donors: ADB, WB, EBRD


12.1.1. Advisory Committee on Capital Markets. Facilitate establishment of private

sector driven Advisory Committee.

4 PPDs In Progress

WP3 Oct-16 Sep-17

Advisory Committee to be established in January, candidate selection underway.


12.2.1. New Law on Investment Funds.

Provide technical assistance to MoESD and NBG on new Law.

Draft Legislation In Progress

WP3 Oct-16 Sep-17


12.3.1. Awareness Raising. Deliver

awareness workshops to private sector stakeholders.

2 Workshops Planned WP3 Oct-16 Sep-17

13. Crop Insurance


Priority: High Impact: Immediate increase in access to finance for rural businesses.

Counterparts: MoA, Parliament Donors: KfW


13.1.1. PPD on Crop Insurance. 2 PPDs Planned WP3 Oct-16 Sep-17


13.2.1. Crop Insurance Premium Rate Methodology. Provide technical assistance

in developing premium rate methodology.

Draft Methodology Planned WP3 Oct-16 Sep-17



13.3.1. Underwriting Standards for Crop Insurance. Provide technical assistance in

developing underwriting standards.

Draft Standards Planned WP3 Oct-16 Sep-17

14. Innovation and Technology/SME Policy

Maturity: Implementation Lead: Malkhaz Nikolashvili

Priority: High Impact: Immediate improvement on Innovation and Technology regime vital for SME development and access to finance for innovation.

Counterparts: GITA, MoESD, EDA Donors: WB


14.1.1. Legal Framework. Organize PPD

events on legal framework. 2-4 PPDs In

Progress WP3 Oct-16 Sep-17 1 PPD conducted

14.1.2. Awareness Raising. Organize

Media Tour on Innovation and technology. 1 site visit Planned WP3 Oct-16 Sep-17


14.2.1. Legal Framework. Provide

technical assistance to GITA in developing the second phase regulatory package on innovation.

Recommendations Planned WP3 Oct-16 Sep-17

14.2.2. Innovation Policy Study Tour.

Conduct study tour to UK, to understand UK national funding scheme and operational model of grant management.

Study Tour Complete WP3 Oct-16 Sep-17

14.2.3. Crowdfunding Framework.

Provide technical assistance in developing legal framework for crowdfunding (To be synchronized with capital markets reform).

Recommendations In Progress

WP3 Oct-16 Sep-17


14.3.1. Sector Study.

(a) Conduct research on global rankings (GII, Global Competitiveness Index, Network Readiness Index, etc.) and elaboration of action plan to position Georgia in high ranks; (b) Develop Annual ICT sector research methodology development and implementation; (c) Develop Innovations Directory.

Research Study In Progress

WP2 Aug-16 Jun-17 End date moved from Jan-17 to Jun-17 due to additional requirements under negotiation with GITA. Grantee selection is underway.

14.3.2. Regional Development (Youth Innovation Events). (1) Conduct trainings

for youth in regions in Innovations for raising awareness and building capacity.

10 training events In Progress

WP2 Oct-15 Mar-17


(2) Organize regional competitions, workshops and events (makeathons, hackathons, etc) for innovation.

Regional competitions and workshops

14.3.3. Regional Outreach (E-commerce).

Conduct outreach activities to support regional innovation development.

3 Outreach events Planned WP3 Oct-16 Sep-17

15. Building Codes

Maturity: Implementation Lead: Nino Chokheli

Priority: High Impact: Effective outreach will raise awareness and preparedness on new building regulations for sector stakeholders.

Counterparts: MoESD, Tbilisi Mayor’s Office Donors: EU, GiZ


15.1.1. PPD on Building Code. 5-8 PPDs (See section 15.3.1)

In progress WP2 Jul-16 Feb-17 PPDs conducted during training sessions. Problematic issues identified and proposed changes are developed.


No specific activities are planned.


15.3.1. Building Code Awareness Raising. Conduct awareness raising events

for engineers, architects, developers and other construction sector representative on new Building Code.

5-8 Training Sessions In Progress

WP2 Jul-16 Feb-17 16 training sessions completed


APPENDIX A: ANNUAL PMP INDICATOR RESULTS

Indicator Year 3, Quarter 1 Cumulative Results 2017 Target

Cumulative Target

1.1 Number of public institutions or CSOs with an established public engagement mechanism through G4G support. 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.

Q1, no completed steps 1 3

1.2 Progress toward identification, drafting, approval and implementation of reforms through a consultative process as a result of USAID assistance. (USAID Indicator) Short clarification: The indicator will count completed steps of policy process related to the targeted reforms, including reforms related to the 3rd and 4th components.

Q1, 6 completed steps

30 100

Analysis Tax Dispute Cases Reform; Tax Audit Survey; Consumers’ Rights Protection Law. Q1, 3 completed steps

N/A N/A

Stakeholder consultation/public debate Tax Dispute Cases Reform Q1, 1 completed step

N/A N/A

Drafting or revision Changes in the Legislation on State Procurement Methods Q1, 1 completed step

N/A N/A

Approval (legislative or regulatory) Changes in the Legislation on State Procurement Methods

N/A N/A


Q1, 1 completed step

Full and effective implementation Q1, no completed steps N/A N/A

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

Q1, no completed steps for policies 2 6

Analysis Q1, no completed step N/A N/A

Stakeholder consultation/public debate Q1, no completed step N/A N/A

Drafting or revision Q1, no completed step N/A N/A

Approval (legislative or regulatory) Q1, no completed step N/A N/A

Full and effective implementation Q1, no completed step

N/A N/A

1.4 Number of policy areas on which PPD events were initiated through G4G support or through G4G supported platforms. Short clarification: The indicator will count the number of policy areas on which PPDs were initiated through G4G support or through using G4G supported platforms, including reforms related to the 3rd and 4th components. Under PPDs we assume thematic meetings with the participation of all major stakeholders, such as GoG, CSOs and private sector representatives.

Accounting and Audit Law; Competitive Electricity Market and Georgia's Membership in the European Energy Community; Analysis of Tax Dispute Cases; EPAC Meeting on Trademark Protection; Water Demand Forecast in Aragvi River Basin; Consumers’ Rights Protection Law RIA. Q1, 6 policy areas

12 50


1.5 Number of the PPD events conducted through G4G support. 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 meetings with the participation of major stakeholders, such as GoG, CSOs and private sector representatives. The indicator will disaggregate the PPDs according to the regions where the PPDs took place.

PPD on Customs AEO, September 29, 2016; PPD on E-Commerce Law, September 30, 2016; PPD on State Procurement Communication Strategy Development, October 23, 2016. (In Kachreti); PPD on Profit Tax, Accounting and Audit Law, November 4, 2016; PPD on ETM Development related Issues, November 4, 2016; PPD on Competitive Electricity Market and Georgia's Membership in the European Energy Community, November 9, 2016; PPD on Analysis of Tax Dispute Cases, November 10, 2016; EPAC Meeting on Trademark Protection, November 28, 2016; PPD on Water Demand Forecast in Aragvi River Basin, November 29, 2016; PPD on Consumers’ Rights Protection Law RIA, December 9, 2016. Q1, 10 PPDs (among them 1 PPD in regions)

22 98

1.6 Percentage of business operators perceiving economic governance as fair and transparent. Short clarification: This perception indicator measures a business owner and /or business operator’s opinion on economic governance fairness and transparency. Business owner-operator is a person that owns and runs day-to-day operations. Owner operators are found in industries like commercial agriculture, tourism, logistics, maintenance, repair etc. Economic governance is related to property rights, regulatory functions, corruption, fiscal management, tax administration, or overall macroeconomic policy.

Q1, N/A Baseline: 48% N/A 58%


2.1 Number of Governmental institutions (including Legal Entities of Public Law, State Owned Enterprises) receiving capacity building assistance through G4G support to develop, implement, and enforce the targeted reforms. Short clarification: The indicator will count each governmental institution that received capacity building assistance through G4G support to develop, implement, and enforce the targeted reforms. If the institution received different types of assistance, each will be counted separately. The indicator also will capture governmental institutions classified under 3rd and 4th components.

Q1, 7 Institutions SPA (1 time through following activity: Communication Strategy Development); RS (1 time through following activity: IFRS Training); RS (1 time through following activity: Tax Dispute Analysis Survey); RS (1 time through following activity: Tax Audit Practice Survey); MoESD (1 time through following activity: RIA Implementation on Consumers’ Rights Protection Law); MENRP (1 time through following activity: Training on Knowledge Sharing on Ecological Flow (E-flow) for Georgia); Parliament (1 time through following activity: Training on M-CEP Concept and Next Steps Towards Competitive Market).

20 80

2.2 Number of the legal acts, policy documents, policy related documents, measures or programs provided or substantially contributed by the targeted GoG institutions through G4G assistance. Short clarification: The indicator will count every legal act, policy documents, policy related documents, measures or programs provided or substantially contributed to a GoG 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 components.

Tax Dispute Cases Reform; Consumers’ Rights Protection Law; Legislation on State Procurement Methods. Q1, 3 policy documents

10 50


2.31 Person hours of USG supported training

completed in trade and investment capacity building. (USAID Indicator). Short clarification: The indicator will count every person hours of G4G supported trainings on trade and investment capacity building. If one person receives several trainings on different issues, each instance will be counted separately. The indicator also will include corresponding trainings relevant to the 3rd and 4th components. The indicator data will be disaggregated based on Gender.

Knowledge Sharing and Training on Ecological Flow (E-flow) for Georgia (840 p/h: 480 p/h for males, 360 p/h for females), October 3-7, 2016; Workshop with MPs, on M-CEP Concept and Next Steps Towards Competitive Market (26 p/h: 16 p/h for males, 10 p/h for females), December 2, 2016; Workshop with CSOs, on M-CEP Concept and Next Steps Towards Competitive Market (12 p/h: 3 p/h for males, 9 p/h for females), December 2, 2016; Master Class on Economic Journalism (64 p/h: 32 p/h for males, 32p/h for females), December 11, 2016; Media Tour on DCFTA (112 p/h: 40 p/h for males, 72 p/h for females), November 12, 2016; Phase I Trainings on Non-Structural Building Codes (800 p/h: 640 p/h for males, 160 p/h for females), September 28 - November 30, 2016; Workshop on Consumers’ Rights Protection Law RIA (80 p/h: 48 p/h for males, 32 p/h for females), December 9, 2016. Q1, 1934 persons: 1261 males, 673 females

5000: 2500 M, 2500 F.

15000: 7500 M, 7500 F.

1 The targets for this indicator were revised and increased.


2.4 Number of GoG staff receiving training through G4G support to develop, implement, and enforce targeted reforms. 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 person receives several trainings on different issues, each instance will be counted separately. The indicator also will include corresponding trainings relevant to the 3rd and 4th components. The indicator data will be disaggregated based on Gender.

Knowledge Sharing and Training on Ecological Flow (E-flow) for Georgia (12 persons: 9 males, 3 females), October 3-7, 2016; Workshop with MPs, on M-CEP Concept and Next Steps Towards Competitive Market (13 persons: 8 males, 5 females), December 2, 2016; Phase I Trainings on Non-Structural Building Codes (200 persons: 160 males, 40 females), September 28 - November 30, 2016; Workshop on Consumers’ Rights Protection Law RIA (10 persons: 5 males, 5 females), December 9, 2016. Q1, 235 persons: 182 males, 53 females.

75: 38M, 37F.

280: 141M, 139F.

2.5 Number of parcels with relevant parcel information corrected or incorporated into an official land administration system (whether a system for the property registry, cadastre, or an integrated system) as a result of USG assistance. Short clarification: The indicator will count number of parcels with relevant parcel information corrected or incorporated into an official land administration system (whether a system for the property registry, cadastre, or an integrated system) as a result of G4G assistance.

N/A, will be reported the annual data. 68,000 204,000

3.1 Number of policy related documents or legal acts agreed with or initiated for adoption by GoG stakeholders on water resource management through G4G support.Short clarification: The indicator will count each policy related documents or legal acts agreed with or initiated for adoption by GoG stakeholders on water resource management through G4G support.

Q1, no completed results 2 5


3.2 Number of PPDs events conducted to advance water sector policies through G4G 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.

PPD on Water Demand Forecast in Aragvi River Basin, November 29, 2016. Q1, 1 PPDs

5 12

3.3 Number of people receiving G4G supported training on natural resources management and/or biodiversity conservation. (USAID Indicator) Short clarification: The indicator will count each person from GoG, CSOs or private sector receiving USG supported trainings on natural resources management and/or biodiversity conservation issues. If one person receives several trainings on different issues, each instance will be counted separately. The indicator data will be disaggregated based on Gender.

Knowledge Sharing and Training on Ecological Flow (E-flow) for Georgia (21 persons: 12 males, 9 females), October 3-7, 2016. Q1, 21 persons: 12 males, 9 females.

50: 25M, 25F.

120: 60M, 60F.

4.1 Number of laws, policies, regulations or standards addressing clean energy formally proposed, adopted or implemented by USG assistance. (USAID Indicator) Short clarification: The indicator will count each laws, policies, regulations or standards addressing clean energy formally proposed, adopted or implemented through G4G support.

Energy Community Accession Protocol has been signed, October 14, 2016. Q1, legal act

3 15

4.2 Number of PPDs conducted through G4G support to advance energy sector policies. Short clarification: The indicator will count each PPD event conducted through G4G support to advance energy sector policies. Under PPDs we assume thematic meetings with the participation of major stakeholders, such as GoG, CSOs and private sector representatives.

PPD on ETM Development related Issues, November 4, 2016. Q1, PPD event

5 23


4.3 Number of people trained in clean energy supported by USG assistance. (USAID Indicator). Short clarification: The indicator will count each person from GoG, CSOs or the private sector receiving G4G supported trainings in energy related policy or management practice.

Workshop with MPs, on M-CEP Concept and Next Steps Towards Competitive Market (13 persons: 8 males, 5 females), December 2, 2016; Workshop with CSOs, on M-CEP Concept and Next Steps Towards Competitive Market (12 persons: 3 males, 9 females), December 2, 2016. Q1, 25 persons: 11 males, 14 females

75: 38M, 37F.

290: 145M, 145F.

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

Q1, 262 GWh 500 GWh 2430 GWh

5.1 Number of private and civil society organizations received capacity building assistance through G4G on development, implementation, and enforcement of targeted reforms. Short clarification: The indicator will count each private and civil society organization that received capacity building assistance through G4G support to develop, implement, and enforce the targeted reforms. If the organization receives different types of assistance, each will be counted separately. The indicator also will capture organizations classified under 3rd and 4th components.

Knowledge Sharing and Training on Ecological Flow (E-flow) for Georgia (2 CSOs), October 3-7, 2016; Workshop with CSOs, on M-CEP Concept and Next Steps Towards Competitive Market (2 CSOs), December 2, 2016; Master Class on Economic Journalism (5 Businesses), December 11, 2016; Media Tour on DCFTA (8 Businesses), November 12, 2016; Workshop on Consumers’ Rights Protection Law RIA (5 CSOs), December 9, 2016. Q1, 9 CSOs and 13 businesses (22 in total)

125 510


5.2 Number of quality services/products provided by professional business associations & 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.

EPAC is able to provide the trainings in the state procurement practice. Q1, 1 service

2 9

5.3 Number of journalists trained through G4G support to provide credible and reliable reporting on issues affecting Georgia’s business enabling environment. 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.

Master Class on Economic Journalism (16 persons: 8 males, 8 females), December 11, 2016; Media Tour on DCFTA (28 persons: 10 males, 18 females), November 12, 2016. Q1, 44 Journalists: 18 males, 26 females

100: 50M, 50F.

298: 149M, 149F

5.4 Number of persons from private and civil society organizations receiving training through G4G support on the development, implementation, and enforcement of the targeted reforms.Short clarification: The indicator will count each person from private and civil society organizations receiving G4G supported trainings to develop, implement, and enforce the targeted reforms. If one person receives several trainings on different issues, each instance will be counted separately. The indicator also will include corresponding trainings relevant to the 3rd and 4th components. The indicator data will be disaggregated based on Gender.

Knowledge Sharing and Training on Ecological Flow (E-flow) for Georgia (9 persons: 3 males, 6 females), October 3-7, 2016; Workshop with CSOs, on M-CEP Concept and Next Steps Towards Competitive Market (12 persons: 3 males, 9 females), December 2, 2016; Master Class on Economic Journalism (16 persons: 8 males, 8 females ), December 11, 2016; Media Tour on DCFTA (20 persons: 5 males, 15 females), November 12, 2016; Workshop on Consumers’ Rights Protection Law RIA (10 persons: 7 males, 3 females), December 9, 2016.

250: 125M, 125F.

750: 375M, 375F.


Q1, 67 persons: 26 males, 41 females

6.1 Proportion of females who report increased self-efficacy at the conclusion of G4G 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.

Q1, 100% of female participants who completed the forms reported on the increased self-efficiency

80% 78%


APPENDIX B: DONOR COORDINATION MATRIX

Donor Donor Project Title Time

Frame Contact Person/Role Contact Information

Donor Funding

G4G Supported Reform

ADB Urban Services Improvement

Investment Project

2013-2018

Irakli Chkhonia, Senior Project Officer [email protected] USD 100 K TBI

ADB Georgia: Strengthening

Domestic Resource Mobilization

2014-2016

Kathie Julian, Resident Representative [email protected]

Tel: +(995 32) 2250 619 USD 500 K

Capital Market and Pension Reform

ADB Road Corridor

Investment Project 2011-2015

Giorgi Kiziria, Deputy Team Leader [email protected] USD 140 M TBI

Czech Development

Agency (CzDA)

Pilot Project for Introduction of an

Information System for Data Transferring and

Groundwater Monitoring Network in Kvareli and

Lagodekhi Municipalities

2013-2015

George Gaprindashvili, Leading Specialist, Head of Projects and Analytical Department

[email protected] Tel: +(995) 591 404 043

CZK 12.63 M

Development of Water Resource

Management plans

Danish

International

Development

Agency

Energy Efficiency and

Sustainable Energy in

Georgia

2016-

2020 Bidzina Chkonia [email protected] €2.13M

Supporting GoG in

accomplishment of

the obligations

under the EU - AA


EBRD

Assistance to the Government of Georgia

with Development of Renewable Energy

Investments: Electricity Trading Platform

2016-2017

David Managadze POC [email protected] EUR 175 K ETM Development

EBRD Support Public Private

Dialogue 2015- 2018

Bruno Balvanera, Director (Caucasus, Moldova and Belarus)

[email protected] TBD

Overall Institutionalized Framework for

Public Consultation and support on G4G targeted reform areas

EBRD, KfW Georgia - Jvari - Khorga

Interconnection 2013- 2016

Nino Shanidze, Senior Project Coordinator [email protected] EUR 60 M ETM Development

EU East Invest 2 Project 2015-2018

Christian Gessl, Key Expert on Policy [email protected] EUR 8.75 M Establishment of

PPD platform

EU

Environmental Protection of

International River Basin Project

2012-2017

Zurab Jincharadze, River Basin Management Expert

[email protected] EUR 7.5 M Development of Water Resource

Management plans

EU TA for Enguri / Vardnili

HPP Rehabilitation 2011-2016

Muriel Lumbert, Project Manager [email protected] EUR 4 M ETM Development

EU

EIB-03 Technical Assistance for the Water

Infrastructure Modernization and

Development Project

2010-2016

Alvaro Ortega Aparicio, Program Manager [email protected]

[email protected] Tel: (+995 32) 2943763

EUR 420 K Development of Water Resource

Management plans

EU Twinning 2016-2017

Eszter Süle Resident Twinning Advisor, E-Control

Austria [email protected] EUR 1.1 M ETM Development


EU

Legislative Impact Assessment, Drafting and Representation

Location

2015- 2017

Katerina Velichkova, RIA Expert [email protected] EUR 1.5 M RIA National Framework



PPD platform

EU

Twinning Project - Strengthening

Administrative Capacity of the Georgia RS in

Taxation

2014-2015

Irakli Khmaladze, Project Manager [email protected] EUR 1.3 M

Tax Reform (Tax payment

simplification, Tax Code Review)



PPD platform

EU

Legislative Impact Assessment, Drafting and Representation

Location

2015-2017

Katerina Velichkova, RIA Expert [email protected] EUR 1.5 M RIA National Framework

EU INOGATE (Regional

Project) 2012-2015

Nikos Tsakalidis, Deputy Team Leader [email protected] EUR 16.6 M ETM Development

European Investment

Bank

Water Infrastructure Modernization II

2013-2018

Paata Iakobashivli, (from MDF) Head of Projects and Analytical Department

[email protected], [email protected] EUR 40 M Development of Water Resource

Management plans

German Federal

Customs Service

Development of Customs Post

Clearance Audit

2015-2017

Anke Sahmland, Head of Foreign Relations Department at German customs

[email protected] TBI

Customs Enforcement; Customs Post

Clearance Audit


GIZ Private Sector

Development Project in the South Caucasus

2013-2016

Marieta Riedel, Expert [email protected] TBI

Tax Reform; Customs

Administration and Enforcement; RIA

National Framework

GIZ

Legal Approximation towards European

Standards in the South Caucasus

2013-2016

Dr. Jens Deppe, Team Leader [email protected] TBI Insolvency Reform; Land Registration

IFC Georgia Investment

Climate Project 2013- 2016

Eka Avaliani, Operations Officer [email protected]

Tel: +(995) 599 560 229 USD 1.8 M

Tax Reform; Customs

Administration and Enforcement, Tax Perception Survey

IFC Infra Ventures

Clean Energy Invest 2012-2015

Bjorn Brandizarg, Consultant [email protected] USD 700 M ETM Development

KfW

Rehabilitation of drinking, waste and rainwater systems in

Batumi

2010-2015

Nino Shanidze, Senior Project Coordinator [email protected] EUR 101.8

M

Development of Water Resource

Management plans

Norwegian Ministry of

Foreign Affairs

Institutional Cooperation Between Norwegian

Water Resources and Energy Directorate and Ministry of Energy and Natural Resources of

Georgia

2013-2016

Kjell Repp, Head of International Section [email protected] NOK 13.68 Water Resource

Management

Norwegian Ministry of

Foreign Affairs

Sustainable Hydropower Development

2012-2015

Endre Ottosen, Project Coordinator [email protected] TBI

Energy Strategy Development;

Water Resource Management

Norwegian Society for

the Conservation

of Nature

SPARE- International School Project for

Application of Resources and Energy

2012-2015

Madona Pirvelashvili, Project Coordinator [email protected]

[email protected] TBI

Energy Strategy Development


Peace Corps Let Girls Learn 2015 -

2017 Tamuna Nozadze, Coordinator

[email protected]

Tel.: +(995) 591 095 973 TBI

Private Sector and

Civil Society

Capacity

Strengthening /

Women and Youth

Empowerment

Swiss Cooperation

Office

Inclusive Growth Dialogues

2013-2014

Lasha Labadze, Deputy Director ISET Policy Institute

[email protected] GEL 140 K



U.S. Treasury Office of

Technical Assistance

Revenue Advisor Program

2012-2017

Davit Koguashvili, Consultant [email protected] Tel: +(995) 599 121 120

USD 1 M

Tax Reform; Customs

Administration and Enforcement

U.S. Treasury Office of

Technical Assistance

South Caucasus Financial Sector

Advisory Project, Capital Markets and Pension

Reform Technical Assistance

2014-2017

Angela Prigozina, Country Sector Coordinator

[email protected] Tel.: +(995) 322 296 228

TBI Pension Reform

UNDP Climate Resilient Flood

and Flash Flood Management

2012-2016

Ivane Tsiklauri, Project Manager [email protected] USD 5.06 M Development of Water Resource

Management plans

UNDP

Enhancing Environmental Monitoring and

Reporting in Georgia

2015-2018

Nino Gvazava Project Manager [email protected] USD 1.28 M Development of Water Resource

Management Plans


UNDP UNDP/GEF Kura Ara(k)s project

2009-2014

Nino Antadze, Energy and Environment Team Leader

[email protected] Tel.: (+995) 599 562 200

USD 2.9 M Development of Water Resource

Management plans

USAID

Advancing CSO Capacities and

Engaging Society for Sustainability (ACCESS)

2014-2019

Tamar Karosanidze, COP [email protected]

Tel: +(995) 599 902 298 USD 5.5 M


Public Consultation Collaboration on a PPD under DCFTA

awareness campaign

USAID

Georgian Human and Institutional Capacity Development (HICD)

2020 Project

2015-2020

Roman Tsutskiridze, COP [email protected] USD 7 M

GoG and CSOs capacity building in

G4G targeted reform areas

USAID Momavlis Taoba (Future

Generation) Project 2014-2017

Marina Ushveridze, COP [email protected]

Tel: +(995) 322 990049, Tel: +(995) 322 233338 TBD Youth involvement

USAID

Enhancing Capacity for Low Emission

Development Strategies (EC-LEDS)

2013-2018

Danna Kenney, COP Inga Pkhaladze, DCOP

[email protected] [email protected]

Tel: +(995) 32 2 50 63 43 USD 6 M

Energy Strategy Development

USAID NARUC- Black Sea Regulatory Initiative

2006-2020

Jargalan Jambaldorj, Senior Program Officer

[email protected] USD 200 K ETM Development

USAID AGT/Black Sea

Transmission Project 2011-2017

Will Polen, Senior Director [email protected] USD 80 K ETM Development


USAID Good Governance Initiative in Georgia

(GGI)

2015-2020

David Smith, COP [email protected]

Tel: +(995) 598 24 77 47 USD 11 M

Implementation of the RIA National Framework Draft

Water Law

USAID

Media for Transparent and Accountable

Governance (M-TAG) Program

2014-2019

Lika Chakhunashvili, COP [email protected] Tel: +(995) 599 902 298

USD 5.1 M



USAID The ZRDA activity in

Georgia 2016-2021

Katy Chumburidze, DCOP Tel: +995552413 USD 14.7 M

Zrda represents an opportunity to strengthen the

skills, productivity, and networks of

local actors – from vulnerable

households to developed Micro,

Small, and Medium Enterprises

(MSMEs) – so they can contribute to

broad-based economic growth and strengthened resilience in target

communities.

USAID

Youth Entrepreneurial Skills for Advancing Employability and

Income Generation in Georgia (YES –

Georgia)

TBI Nino Lagvilava / Chief of Party [email protected]

Tel: +(995) 558 16 51 67 TBI

Private Sector and Civil Society

Capacity Strengthening /

Youth

USAID Promoting Gender

Equality in Employment 2013-2016

Mariam Chitishvili / PR Manager [email protected]

Tel:(+995) 032 299 88 56 TBI

Private Sector and Civil Society

Capacity Strengthening /

Women Empowerment

USAID Restoring Efficiency to Agricultural Production

(REAP)

2013-2018

Luisa Namicheishvili, DCOP [email protected] Tel: +(995) 595 030 353

USD 19.5 M Crop Insurance


USAID Revenue Advisor

Program 2012-2017

Davit Koguashvili, Consultant [email protected] Tel: +(995) 599 121 120

USD 1 M

Tax Reform; Customs

Administration and Enforcement

USAID Supporting Local Self-

Governance Reforms in Georgia

2014-2015

Nino Lomjaria, COP [email protected]

Tel: +(995) 555 02 02 00 TBD



USAID Momavlis Taoba (Future

Generation) Project 2014-2017

Marina Ushveridze, COP [email protected]

Tel: +(995) 322 990049 Tel.: +(995) 322 233338 TBD Youth involvement

USAID Good Governance Initiative in Georgia

(GGI)

2015-2020

David Smith, COP [email protected]

Tel: +(995) 598 24 77 47 USD 11 M

Implementation of the RIA National Framework Draft

Water Law

USAID

Integrated Natural Resources Management

in Watersheds of Georgia

2012-2014

Marika Shotadze, Program Director [email protected] USD 5 M Development of Water Resource

Management plans

WB Youth Inclusion and Social Accountability

Project

2014-2016

Michelle P. Rebosio Calderon, Social Development Specialist


USD 500 K TBI

WB Transmission Grid

Strengthening Project 2014-2019

Joseph Melitauri, Senior Operations Officer [email protected] USD 61.88

M ETM Development

WB

South Caucasus Financial Sector

Advisory Project, Capital Markets and Pension

Reform Technical Assistance

2014-2017

Angela Prigozina, Country Sector Coordinator


TBI Pension Reform


WB Irrigation and Land

Market Development Project

2014-2019

Kathrine M. Kelm, Senior Land Administration Specialist

[email protected] USD 50 M

Land registration pilot project

implementation Irrigation tariff methodology development

WB Georgia National

Innovation Ecosystem (GENIE) Project

2016-2021

Thomas Edward Haven / Team Leader Siddhartha Raja / (Senior ICT Policy

Specialist [email protected] USD 40 M

Innovations and Technology

WB Development Policy

Operation (DPO) Series 2012-2015

John Gabriel Goddard, Senior Economist [email protected] TBI Capital Market

Reform


APPENDIX C: UTILIZATION OF USG PERSONNEL AND COLLABORATION WITH OTHER DONOR-FUNDED PROJECTS

COLLABORATION WITH OTHER USG PERSONNEL

National Association of Regulatory Utility Commissioners (NARUC): G4G continues collaboration with NARUC in Energy sector reforms.

US Trade Representative (USTR) and US Customs: G4G facilitated discussion between the RS, USTR and US Customs on potential collaboration in the area of AEO and post clearance control. G4G is also collaborating with USTR on the Law on e-Commerce.

USTR Europe and Middle East Affairs Office: United States Trade Representative, Jason Buntin, in cooperation with G4G, joined efforts on developing issues related to SMEs, e-commerce legislation and digital trade.

United States Energy Agency (USEA): G4G is collaborating with USEA on the planned study tour for GoG officials on ETM in the US.

COLLABORATION WITH OTHER USAID PROJECTS

Good Governance Initiative (GGI): G4G collaborated with Good Governance Initiative (GGI) in Georgia, a five-year activity funded by USAID to implement RIA National Framework. G4G held several meetings with project representatives to coordinate activities for implementation of RIA National Framework.

HICD 2020: HICD 2020 is supporting ESCO to identify fundamental reasons of performance gaps and develop recommendations for improvement. Since ESCO plays an important role in reforming the electricity system and is one of the counterparts of G4G, it was agreed that G4G will participate in the working group meetings with the representatives of ESCO, HICD 2020 and other stakeholders. G4G has been collaborating with HICD 2020 on functional analysis and employee satisfaction survey of the RS.

Crystal Fund: G4G is cooperating with Crystal Fund and PH International in the frames of the program "Youth Entrepreneurial Skills for Advancing Employability and Income Generation in Georgia" (YES – Georgia). G4G is coordinating the program for businesses and business support organizations interested in youth empowerment with the aim to increase employability among youth.

COLLABORATION WITH OTHER DONOR-FUNDED PROJECTS

EU “Water Initiative for Eastern Partnership” (EUWI+): G4G worked closely with EUWI on water resource management.

East Invest 2: G4G worked with EU project East Invest 2 on business support organization and EPAC development and on the Annual Partner Conference in Yerevan, Armenia, aimed to fostering economic cooperation between EU and Eastern Partnership countries.

Konrad Adenauer Fund/PMCG: A research project to identify gaps between EU Renewable Energy (RE) directives and existing legal and regulatory framework in Georgia was conducted by PMCG Research funded by Konrad Adenauer Fund. At a presentation of the research results, G4G presented biomass and renewable energy share in the current energy mix, current challenges and future perspectives in increase share of renewable energy in the countries energy mix.

EU “Legislative Impact Assessment, Drafting and Representation Location” Project: The Project has a separate RIA component. G4G held several meetings with project experts to coordinate activities related to institutionalizing the RIA mechanism across the GoG. G4G is collaborating with the project in regards to Water Resource Management Law RIA.

ADB: G4G continued collaboration with ADB on Capital Market and Pension Reform.

IFC: G4G participated as a working group member on a second study of customs time release. G4G with IFC and other donors (GiZ, EBRD) have been collaborating on insolvency.

Federal Customs Service of Germany: G4G collaborated with the Federal Customs Service of Germany for implementation of the post-clearance audit action plan and study tour.


WCO “Risk Analysis Program”: TFS is being integrated with a WCO supported risk analysis program (Cargo Targeting System).

EBRD Investor’s Council: G4G continued collaboration and participation with the Investor’s Council.

EBRD “Electricity Trading Platform Project”: G4G is collaborating with EBRD on the "Electricity Trading Platform" project.

German Industry for Int’l Cooperation Senior Expert Service: G4G collaborates with the Senior Expert Service to support EPAC and the private sector.

EU project “Support to the Development of Private and Administrative Law Systems in Georgia” implemented by GiZ: G4G closely coordinates with GiZ on development of insolvency law.

WB “Georgian National Innovation Ecosystem” (GENIE) Project: G4G collaborates with WB through the GENIE project for Innovation Reform.

WB Pension Reform Activity: G4G is collaborating with WB in Pension Reform.

WB Irrigation and Land Market Development Project (WB-ILMD): G4G worked with the ILMD project in developing the ILMD's strategy paper on irrigation sector regulation.

UNDP “Enhancing Environmental Monitoring and Reporting in Georgia”: G4G began discussions with UNDP's Enhancing Environmental Monitoring and Reporting in Georgia to identify areas of possible cooperation with regards of data collection and processing related to water resource management.

DANIDA/NIRAS “Energy Efficiency and Sustainable Energy in Georgia”: The Danish International Development Agency (Danida) funded project “Energy Efficiency and Sustainable Energy in Georgia,” implemented by NIRAS, aims at supporting the MoE, MoESD, MoF, GNERC, GSE and ESCO in accomplishment of the obligations under the EU - Georgia AA. G4G participated in a PPD during the quarter under the scope of the project. G4G expressed interest to further cooperating with DANIDA in building a sustainable energy sector in Georgia.

UNECE: On December 12-13, G4G participated in the Renewable Energy Hard Talk on “New Possibilities for Developing Renewable Energy in Georgia,” organized by the Renewable Energy Policy Network for the 21st Century (REN 21) and the United Nations Economic Commission for Europe (UNECE) at the Ministry of Energy (MoE). Discussions were held on the progress made in terms of facilitating and utilizing renewable energy sources, ensuring relevant regulatory/legal framework and latest trends. Emerging issues were also reviewed. G4G discussed M-CEP concept and the importance of inclusion of new technologies in renewable energy in energy planning and drafting energy strategy of Georgia.

EU - "Eastern Partnership Assistance Program": Provides technical support to Georgian authorities with respect to Electricity Market reform in the coming months. G4G, held several meetings with above mentioned project representatives, shared its experience and deliverables concerning electricity market/ETM development and discussed the possible issues of future cooperation.

Good Governance Fund (GGF) (UK gov't project implemented by PwC): Collaborating with GGF on CIT reform.

Peace Corps “Let Girls Learn”: G4G worked with the Peace Corps’ global program "Let Girls Learn" on youth and women empowerment through mentorship and trainings on advocacy and entrepreneurship.


APPENDIX D: UTILIZATION OF INTERNS

N Name Internship Period G4G Supervisor & Component

1 Nino Kurtanidze 10/03/2016 - 11/30/2016 Maya Eristavi/Advocacy and Capacity Building Component

2 Liza Katsiashvili 10/3/2016 - 12/31/2016 Maya Eristavi/Advocacy and Capacity Building Component

3 Giorgi Kikiani 10/3/2016 - 12/31/2016 Maya Eristavi/Advocacy and Capacity Building Component

4 Tamari Zuroshvili 10/3/2016 - 12/31/2016 Maya Eristavi/Advocacy and Capacity Building Component

5 Ana Mumladze 11/1/2016 - 1/31/2017 Maya Eristavi/Advocacy and Capacity Building Component

6 Luka Beridze 11/1/2016 - 1/31/2017 Maya Eristavi/Advocacy and Capacity Building Component

7 Baia Kublashvili 11/1/2016 - 1/31/2017 Maya Eristavi/Advocacy and Capacity Building Component

8 Elene Chkheidze 11/1/2016 - 1/31/2017 Tamar Buadze, Economic Governance and Policy Component

9 Gvantsa Beria 11/1/2016 - 1/31/2017 Tamar Buadze, Economic Governance and Policy Component

10 Vakhtang Kipiani 11/1/2016 - 1/31/2017 Irina Iremashvili, Cross Cutting Component


APPENDIX E: G4G ADVISORS UTILIZED IN GOG INSTITUTIONS

N (#) Name Area(s) of Focus GoG Institution

1 Georg Petersen Water Resource

Management

Ministry of Environment

and Natural Resources

Protection

2 Jake Delphia Electricity Trading

Mechanism Ministry of Energy

3 Roman Ladus Regulatory Impact

Assessment

Ministry of Economy and

Sustainable

Development

4 Rafal Szymczak Pension

Ministry of Economy and

Sustainable

Development

5 Rainer Neppl Customs Revenue Service

6 Karl Sporny Customs Revenue Service


APPENDIX F: UTILIZATION OF PRIVATE SECTOR AND CIVIL SOCIETY ORGANIZATIONS

N (#) Name of Organization Area(s) of Focus Utilization

1 AmCham Tax Enforcement and

Administration, CSO Capacity Building, EPAC Member

Collaboration

2 Analysis & Consulting Team Business Perception Survey Collaboration

3 Art International Women

Association EPAC Member Collaboration

4 Association of Banks of

Georgia Civil Society Capacity

Building, EPAC Member Collaboration

5 Association of Business

Consulting Organizations of Georgia

Tax Enforcement and Administration, EPAC

Member Collaboration

6 Association of Law Firms of

Georgia

Tax Enforcement and Administration/Insolvency,

EPAC Member Collaboration

7 Association of Pharmaceutical Companies Representatives in

Georgia EPAC Member Collaboration

8 Association of Young

Economists of Georgia

Youth engagement in PPD, EPAC Member, Tax

Enforcement and Administration, RIA

Collaboration

9 ATA partners Tax Enforcement and

Administration Consultations

Outreach

10 Atlantic Council of Georgia EPAC Member Collaboration

11 Batumi International Container

Terminal Trade Facilitation and

Customs Collaboration

12 Believe Foundation Civil Society Capacity

Building, Youth Collaboration

13 British Georgian Chamber of

Commerce EPAC Member Collaboration

14 Business and Economic

Centre

Support National PPD, Youth engagement in PPD, EPAC

Member Collaboration

15 Business Association “Women

for Tomorrow” Youth Engagement in PPD Outreach

16 Business Association of

Georgia

Tax Enforcement and Administration, Civil Society Capacity Building, Customs

and Trade

Consultations

17 Business Professionals

Network EPAC Member Collaboration

18 Caucasus Environmental NGO

Network EPAC Member, Water Resource Management

Collaboration, Consultations

19 Caucasus University Water Resource

Management, EPAC Youth Engagement in PPD

Outreach

20 Center for Business Advocacy EPAC Member Collaboration


21 Center for Competition Civil Society Capacity

Building, EPAC Member, Competition Policy

Collaboration

22 Center for Competition Law and Consumer Protection

EPAC Member, Competition Policy

Collaboration

23 Center for Innovative

Development of Enterprises EPAC Member Collaboration

24 Center for Social Sciences EPAC Member Collaboration

25 Center for Training and

Consultancy EPAC Capacity Building Collaboration

26 Chamber de Commerce

France Georgia Energy, EPAC Member Consultations

27 Clean Energy Energy Collaboration

28 Co-Investment Fund Energy Collaboration Consultations

29 Construction Inspection EPAC Member, Building Code Collaboration

30 Consumer Rights Protection

and Control Center EPAC Member Collaboration

31 Crystal Fund Youth Engagement in PPD Outreach

32 Dechert LLC Competition Collaboration

33 Eastern Power Corporation Energy, Capital Markets,

Innovation Outreach

Collaboration

34 Economic Policy Research

Center

Civil Society Capacity Building, EPAC Member,

Youth engagement in PPD Collaboration

35 Energo Aragvi Energy Collaboration

36 Energy Academy of Georgia Energy, Youth engagement in

PPD Civil Society Capacity Building

Collaboration Outreach

37 Energy Efficiency Centre Energy,

Trade Facilitation and Customs

Collaboration

38 Energy Solutions Water Resource Management,

Energy Collaboration

39 Environmental Development Water Resource Management Collaboration

40 Europe Foundation EPAC Capacity Building Collaboration

41 European Union-Georgian

Business Council EPAC Member Collaboration

42 Export Development Agency EPAC Member Collaboration

43 Freight Forwarders Association

of Georgia

Youth Engagement in PPD Trade Facilitation and

Customs

Outreach Collaboration

44 GAMMA Tax Enforcement and

Administration Water Resource Management

Consultations

45 Georgia Hydro Energy Consultations Collaboration

46 Georgia Urban Enerji Energy Collaboration

47 Georgian American University Youth Engagement in PPD Consultations,

Outreach


48 Georgian Association “Women

in Business”

EPAC Member Women engagement in PPD, Civil Society Capacity Building

Collaboration Outreach

Consultations

49 Georgian Association of

Expeditors Customs and Trade Outreach

50 Georgian Association of

Guides EPAC Member Collaboration

51

Georgian Association of Realtors

Civil Society Capacity Building, EPAC Member Collaboration

52 Georgian Bar Association EPAC Member Collaboration

53 Georgian Business Chamber EPAC Member Collaboration

54 Georgian Chamber of

Commerce and Industry Tax Enforcement and Administration, Energy

Consultations

55 Georgian Distribution


56 Georgian Ecotourism


57 Georgian Energy Development

Fund Energy Collaboration

58 Georgian Environmental

Outlook Water Resource Management Collaboration

59 Georgian Farmers Association

Civil Society Capacity Building, EPAC Member

Water Resource Management, CSO Capacity

Building, EPAC Member

Collaboration Consultations

60 Georgian Hazelnut Producers

and Exporters Association EPAC Member Collaboration

61 Georgian Hotel and Restaurant

Federation


62 Georgian Hydro Power Energy Consultations Collaboration

63 Georgian Incoming Tour-

Operators Association Trade Facilitation and

Customs, EPAC Member Consultations

64 Georgian Insurance

Association CSO Capacity Building, Crop

Insurance Consultations

65 Georgian International Energy

Corporation Energy Collaboration

66 Georgian International Road

Carriers Association Customs and Trade


67 Georgian Investment Group

Energy Energy Collaboration

68 Georgian Law and Policy

Research Centre Youth engagement in PPD Collaboration

69 Georgian Lawyers for

Independent Profession Youth engagement in PPD,


70 Georgian Lawyers National

Association Youth engagement in PPD,



71 Georgian Logistics Association


Trade Facilitation and Customs


72 Georgian Microfinance

Association

Women engagement in PPD, Civil Society Capacity


73 Georgian Oil and Gas

Corporation Energy Collaboration

74 Georgian Pistachio Association EPAC Member Collaboration

75 Georgian Small and Medium

Enterprise Association

Youth engagement in PPD, Tax Enforcement and

Administration, CSO capacity Building, EPAC Member

Outreach Consultations Collaboration

76 Georgian Society of

Accountants, Auditors and Consultants

Women engagement in PPD, Civil Society Capacity


77 Georgian Society of

Investment Professionals EPAC Member Collaboration

78 Georgian Technical University

Civil Society Capacity Building, Crop Insurance,

Energy, Youth engagement in PPD

Collaboration

79 Georgian Tourism Association EPAC Member Collaboration

80 Georgian Vocational Education Civil Society Capacity


81 Georgian Wine Association EPAC Member Collaboration

82 Georgian Women Business

Association

Innovation and Technology Women Engagement in PPD,


Collaboration

83 Georgian Young Lawyer’s

Association

Youth Engagement in PPD, CSO Capacity

Building, EPAC Member, Land Registration

Collaboration

84 Georgian-Ukrainian Business

Club EPAC Member Collaboration

85 German Business Association Tax Enforcement and


Collaboration

86 Hydrolea LTD Energy Collaboration

87 Information and

Communications Technology Business Council

Energy Innovation and Technology

EPAC Member


88 Infrastructure Construction

Companies Association EPAC Member, Building Code Collaboration

89 Institute for Development for

Freedom of Information Media engagement in PPD,


90 Institutional and Capacity

Building Development Center Water Resource

Management, EPAC Member Outreach


91 Int’l School of Economics at Tbilisi State University-Policy

Institute

Energy, Youth engagement in PPD, CSO Capacity

Building, EPAC Member, RIA Collaboration

92 International Black Sea

University Youth Engagement Collaboration

93 International Business and

Economic Development Center EPAC Member Collaboration

94 International Chamber of

Commerce-Georgia

Youth engagement in PPD, CSO Capacity Building,

Energy Tax Enforcement and

Administration


95 International Investors


96 JS EnergoPro Energy Collaboration

97 JS Telasi Energy Consultations Collaboration

98 Junior Chamber International

Georgia EPAC Member Collaboration

99 Justice Development Center Tax Enforcement and


Consultations

100 KG Energy

Tax Enforcement and Administration, CSO capacity

Building Energy

Consultations Collaboration

101 Knowledge and Experience

Transfer Water Resource

Management, Tax Reform Collaboration

102 Media Holding “Palitra” (Palitra

TV, IPN, BPN) Media Engagement in PPD Collaboration

103 National Association of Local

Authorities of Georgia Media Engagement in PPD

Water Resource Management Collaboration

104 National Broadcaster Media Engagement in PPD Collaboration

105 New Economic School Water Resource Management Outreach

106 News Agency “Agenda.ge” Energy

Media Engagement in PPD Collaboration

107 Newspaper “Georgia Today” Media Engagement in PPD Collaboration

108 Newspaper “Messenger” Media Engagement in PPD Collaboration

109 Newspaper “Rezonansi” Media Engagement in PPD Collaboration

110 Online and Printed Journal

“Liberali” Media Engagement in PPD Collaboration

111 Partnership Fund Energy Collaboration Consultations

112 PH International Media Engagement in PPD Collaboration

113 PMC Research EPAC Member Collaboration


114 Policy Management Consulting

Group

Media engagement in PPD, Energy

Tax Enforcement and Administration, CSO Capacity

Building

Collaboration, Consultations

115 Poti APM Terminals Youth Engagement in

Trade Facilitation Consultations Collaboration

116 Radio “Commersanti” Media Engagement in PPD Consultations Collaboration

117 Radio “Tavisupleba” Media Engagement in PPD Collaboration

118 REC Caucasus Water Resource Management Collaboration

119 Regional Management and

Economic Development Center EPAC Member Collaboration

120 San Diego State University Youth Engagement in PPD Collaboration

121 Schulze Global Investments

LTD Energy Collaboration

122 Strong Society EPAC Member Collaboration

123 Tax Payers Union EPAC Member Collaboration

124 Transparency International

Georgia Land Registration Reform,


125 TV Channel “Imedi” Media Engagement in PPD Collaboration

126 TV Channel “Maestro” Media Engagement in PPD Collaboration

127 TV Channel “Rustavi2” Media Engagement in PPD Collaboration

128 TV Channel “Tabula” Media Engagement in PPD Collaboration

129 Waste Management

Association Youth Engagement, Internship

Program, EPAC Member Collaboration

130 Wine Tourism Association Business Perception Survey,


131 Women for Tomorrow EPAC Member Collaboration

132 World Experience for Georgia Trade Advisory Group Establishment, Energy

Collaboration

133 Young Entrepreneur

Association

Youth Engagement in PPD Trade Advisory Group

Establishment, EPAC Member

Consultations Collaboration


APPENDIX G: SUMMARY OF GRANT ACTIVITIES

Reform Project Title Number of Applications Reviewed

Number of Grants Awarded

Implementing Entity Grants in USD Awarded/Pending

Region of Implementation

Type of Beneficiaries

Project Status

Institutionalized Framework for Public Consultation Reform

Assessment on Collaborative Governance Gaps

2 1 Economic Policy Research Center (EPRC)

25,955 Tbilisi, Regions: East and West Georgia

Central Government and Private Sector

Completed

Assessment on Constraints Journalists Face in Covering Reforms

1 1 GMCG LLC 14,915 Tbilisi, Regions: Kakheti, Adjara

Media, Public and Private Sector

Completed

Georgian Reform Progress Tracking System (GRPTS)

3 1 ISET-PI 94,641 Tbilisi

Central Government, Public and Private Sector

Grant Award signed - Ongoing

PPD Quality Tracking Mechanism

3 1 IDFI 94,700 Tbilisi Central Government


Empowering Women in Business

8 1 Association of Young Economists of Georgia (AYEG)

24,795

Tbilisi, Regions: Kakheti, Mtskheta-Mtianeti and Shida Kartli

Women organizations, Women entrepreneurs

Completed

Regulatory Impact Assessment (RIA) on Irrigation Tariff Methodology

3 1 ISET-PI 39,445 Tbilisi, Regions


Completed

Establishing PPD Platform in Parliament

2 1 BEC 29,956 Tbilisi


Completed

Business Perception Survey on Policy Reforms

3 1 ACT 37,779 Tbilisi, Regions

Central Government, Public and Private



Sector

Strengthening PPD Platform in Parliament

2

60,000 Tbilisi, Regions


Grant Selection Process

Women Capacity Building Activities in Samtskhe-Javakheti and Shida Kartli Regions

5

25,000 Regions:Samtskhe-Javakheti and Shida Kartli

Women organizations, Women entrepreneurs


Energy Strategy Reform

Energy and Water Consumption End-Use Survey In Commercial and Industrial Sectors

3 1 WEG 46,576 Tbilisi, Regions Central Government

Completed

Water Resource Management Reform

Develop Water Resource Management Guidance Documents Applicable for Georgia

1 1 GEO 34,365 Region: Georgia

Local and Central Government, Public and Private Sector

Completed

Green Paper on “Water Allocation Plan Framework – Challenges for Implementation”

1 1 RECC 34,963 Region: Mtskheta-Mtianeti Region

Local and Central Government, Public and Private Sector

Completed

Computer Models for Water Resource Management Planning

1 1 Environment and Development (ED)

34,125 Region: Georgia Private Sector, CSOs

Completed

Innovative technoloies for Water Re-use and Wastwater Treatment

1 1 GEO 34,450 Region: Georgia, Mtskheta-Mtianeti Region

Local and Central Government, Public and Private Sector, CSOs

Completed


E.F. Methodology Testing

1 1 GEO 69,900 Region: Georgia



Water Demand Forecast

1 1 RECC 34,323 Region: Mtskheta-Mtianeti Region


Completed

RIA on Law on Water Resources Management

1

ISET-PI 40,000 Region: Georgia



Piloting water allocation modeling using WEAP in the Aragvi River Basin

1

ED 75,000 Region: Mtskheta-Mtianeti Region



Development of Gauging Stations Network in the Boundaries of Aragvi River Basin

70,000

Region: Mtskheta-Mtianeti Region


RFA Issued

WDF Guidance Document for Georgia

60,000 Region: Georgia


RFA Issued


Tax Enforcement and Administration Reform

Capacity Building Training for Small Business Associations and SME’s on Tax Code Advocacy

2 1 Knowledge and Experience Transfer

19,500 Tbilisi Private Sector

Completed

RIA on the Estonian Corporate Income Tax (CIT) Model Implementation in Georgia

2 1 AYEG 27,650 Tbilisi Central Government

Completed

Tax Perception Survey 3 1 CRRC Georgia 20,000 Tbilisi, Regions Public and Private Sector

Completed

Existing Best Practice of Calculation of Natural and Production Losses for Tax Purposes

1 1 Knowledge and Experience Transfer

22,350 Tbilisi Public and Private Sector

Completed

Tax Audit Practice Survey and Assessment

8 1 AmCham 30,310 Tbilisi


Completed

Crop Insurance Reform

RIA on Crop Insurance 3 1 ISET-PI 29,900 Tbilisi


Completed

State Procurement Reform

Comprehensive Survey on State Procurement

3 1 CRRC Georgia 39,010 Tbilisi, Regions

Government, Public and Private Sector

Completed

Insolvency Reform

Insolvency Reform Advocacy Campaign

2 1 Association of Law firms of Georgia (ALFG)

37,249 Tbilisi


Completed

Building Code Support in Implementation of Non-Structural Building Code

1 1 Georgian Institute of Building (GIB)





Innovations and Technology Regional Youth

Innovation Events 2 1

Elva Community Engagement

58,766 Regions

Youth and youth organizations


Innovation and Technology Sector Study

6

PMO LLC 30,000 Tbilisi, Regions

Government, Public and Private Sector


Pension Reform

RIA on Pension Reform 3 1 ISET-PI 44,875 Tbilisi, Regions



Customs and Trade Reform Trade Facilitation

System (TFS) Public Awareness and Training

1 1 Association of Freight-Forwarders of Georgia (AFG)




Competitiveness Analysis of the Caucasus Transit Corridor (CTC)

5

AFG 35,000 Georgia, Azerbaijan



Total

85 27

1,496,050


APPENDIX H: G4G ORGANIZATIONAL CHART


APPENDIX I: GANT CHART






















USAID Governing for Growth (G4G) in Georgia

Deloitte Consulting Overseas Projects LLP

Address: 85 Z. Paliashvili Street, Tbilisi

Phone: +995 322 240115 / 16

E-mail: [email protected]