Private sector and human-resource development in Georgia

Project Description 1. Financial Sector Reform (US$ 2.325 million)

(a) Financial Sector Infrastructure:

Consulting service and equipment:

-- to introduce and implement Broadly Adapted Financial Statement (BASF), and internationally acceptable accounting and auditing system;

-- to conduct diagnostic studies in five state-owned banks and make recommendation for steps to streamline the system;

-- review existing payment system and make recommendations for steps to streamline the system

2. Economic management (US$ 5.660 million)

(b) Economic Policy Formulation

Support will be provided to the Office of the Deputy Prime Minister (now Chief Economic Advisor to the President) to design a strategy for the restructuring and the reform of the governments economic management agencies, particularly the Ministries of Finance and Economy, and to strengthen economic policy formulation and analyses.

(c) Statistical Services:

Consulting services, training, and equipment to assist the Committee for Social and Economic Information in

-- reviewing the methodology used for generating and maintaining national accounts and initiating steps to introduce the internationally acceptable System of National Accounts (SNA);

-- designing and conducting an improved household survey in the city Tbilisi

(d) Tax Administration:

-- computerization of tax offices; IDA pilot project for the modernization and computerization of the central State Tax Inspectorate (STI) and the Tbilisi City Inspectorate;

-- training of the STI staff.

(e) Treasure:

-- first phase: a central treasury function will be established in the Ministry of Finance and regional branch in Tbilisi;

-- second phase: regional Treasuries will be established throughout of Georgia:

-- IDA will finance computers for the establishment of the Treasury offices.

(g) Strengthening of Customs Administration:

Support will be provided to the Customs Committee in

(i) simplifying and reforming the organization and procedures of customs operations: (ii) modernizing customs management ;

(iii) training the customs staff in the customs management and the computerization;

(iv) computerizing customs clearance procedures, accounts, and statistics at Tbilisi headquarters and at the Tbilisi airport as the first pilot site.

(h) Aid Coordination:

-- Project will finance long-term external advisor and equipment to assist and train the staff of Aid Management Unit (AMU) in maintaining donor procedures, coordinating countrys external aid priorities consistent with the national development objectives, and communicating those with the external aid agencies.

-- Project will finance experts to assist the government staff in analyzing Sectoral information with the objective to design and develop project that will be acceptable to the donor community.

(i) Project Implementation: The project will finance:

-- an external procurement consulting firm to assist the PIU with the preparation of procurement an disbursement documents under this project, and to ensure that all procurement under the project follow the World Banks procurement guidelines

3. Privatization and Enterprise Reform (US$ 2.27 million)

(j) Support for Privatization:

-- one short-term senior level adviser to assist the Ministry of the state Property Management and the Office of the Chief Economic adviser to the President in reviewing the current privatization plan;

-- experts and equipment to assist in:

a) formulation the mass privatization program and the voucher scheme

b) the design and implementation of a public information campaign to support the mass privatization campaign;

c) provide training aimed at strengthening the institutional capabilities of SPM;

d) review and further development of a legislative framework for privatization.

Implementing Agency Alex Sikharulidze, Head of PIU, 42, Kazbegi ave.,

Phone: (99532)950865

Fax: (99532)950865


Project Objective To support the Governments reform program to stabilize the economy and create the conditions for a resumption of growth and an improvement in living standards.

Project Description 1. Privatization and post-privatization (US$ 0.95 million)

(i) Continued support for the implementations of the privatization program and on support for the establishment of the share registries.

(ii) Introduction of cash auctions and an international tender program;

(iii) Strengthening of institutional capacities, elaboration of standard procedures, advise on structuring of transactions and bid evaluation, as well as legal assistance and licensing of private share registries.

(iv) Elaboration of operational guidelines, training of officials in securities market and in the starting-up of pilot registries.

2. Financial Sector ( US$ 0.78 million )

(i) Advisory services on supervisory issues as well as the development of training programs.

(ii) Audits if the three former state banks will be financed to dacilitate a realistic assessment of the financial position of each bank.

3. Energy sector reform ( US$ 0.86 million )

(i) Assistance in creating the capacity to monitor and manage payment performance, and in reviewing structural and tariff issues.

(ii) Assistance in reviewing the scope of the regulatory authority and its tariff policy functions.

4. Social Protection ( US$ 0.56 million)

(i) Assistance in the design of a program of social assistance which meets the needs of poor families that do not qualify under any existing program;

(ii) Facilitating the establishment of private pension schemes.

5. Resource mobilization and public information

( US$ 1.43 million)

(i) A program aimed at improving the revenue collection performance of the Customs Department through training, revision of procedures and controls, and anti-fraud measures;

(ii) A public information/education program on economic reforms, including mass media campaigns, round-tables/seminars on key issues, and the design of an education program focusing on skills in high demand in market economics

Implementing Agency Zaal Japaridze, Head of PIU, 12 Kazbegi Ave.

Phone: (99532) 950865

Ministry of Trade and Foreign Economic Relations

42, Kazbegi Ave.

Phone: (99532) 225186 / (99532) 389652


Project Objective 1. To support policy reform in the transport sectoral and restructure its institutions to operate in a market economy.

2. To repair and maintain some of the most critical elements of the transport system.

Project Description (1) Institution Building Component (US$ 4.9 million):

(i) advice and support to teams preparing sector reforms;

(ii) technical assistance for the formulation of technical and legal framework necessary to the restructuring,

commercialization and privatization of sector entities;

(iii) managerial assistance for public and private transport enterprises;

(iv) a training program to update transport technical staff of the private and public sectors;

(v) project management.

(2) Investment Component ( US$ 13.2million )

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