Improved fiscal sustainability of pension system
Development of Priority Branches of the Economy
Energy and Infrastructure
· Reorganize electricity wholesale market to resume the functions of financial and technical operator
Ministry of Fuel and Energy
Support for direct contracts between generators and large end consumers, subject to transparent terms and implementation
Direct contracts between generators and large end consumers
EMSP
EBRD
KfW
USAID
Electricity market successfully reorganized
· Amend tariff policy in line with model of wholesale market and consider liberalization of prices
Ministry of Fuel and Energy; Energy Regulatory Commission; Ministry of Economy
Tariff policy; adequate appropriations to energy in state budgets
Lower commercial losses; state budgets fully cover energy costs; higher collections by state energy companies in distribution, transmission; improved financial viability
EMSP
EBRD
IMF
KfW
USAID
Cash payment collections at the wholesale electricity market above 65%; dissemination to public of detailed sector performance indicators
· Approve strategy to manage energy sector debts
Ministry of Fuel and Energy, Ministry of Finance
Establishment of a professional Debt Restructuring Agency for the power sector
Legacy debt no longer a threat to the financial viability of the power sector
EMSP
EBRD
IMF
KfW
USAID
Debt Restructuring Agency led by international experts in full operation; legacy debt issue resolved
· Transfer energy sector companies, including National Distribution Company, under management contract in accordance with existing strategy
Ministry of Fuel and Energy
Georgian Unified Distribution Company (GUDC) under long-term management contract
GUDC under long-term management contract
EMSP
EBRD
KfW
USAID
GUDC under long-term management contract; other management contracts fully operational
· Improve transport regulatory administration
Ministry of Transport and Communication
MOTC restructuring
Improved functioning of restructured MOTC
Secondary Roads Project; Transport Facilitation Project
SDRG restructured and road financing arranged to provide stable source for road funding to maintain and improve roads
· Technical monitoring of emergency conditions, restore status of premises and constructions of strategic importance and special complexity of the energy, transportation, communication and construction infrastructure as well as those damaged from earthquakes
Ministry of Economy, Industry and Trade, Ministry of Fuel-Energy, Ministry of Transportation and Communication, State Department of Highways
Development of road data bank for SDRG to take prompt, cost-effective action in emergencies
The data bank is used to prioritize annual road program
Secondary Roads Project; Transport Facilitation Project
Road data bank in use and SDRG expanded to cover local rural roads
· Improve implementation of road construction plan, identify strategic projects and sources of financing
State Department of Highways
Road construction plan, equipping SDRG with tools to develop and manage the plan
5 year rolling plan a standard procedure in SDRG
Secondary Roads Project; Transport Facilitation Project
EU, Kuwait Development Fund
Performance indicators to be developed in Secondary Roads project
· Form information network covering the entire country
State Department of Information
Improving rural access to telecommunications services
Better and more affordable access by the rural population to telecommunications
Rural Telecommunications Project
Higher proportion of the rural population having affordable access to telecommunications
Tourism
· Prepare special program to attract additional funding from international donor organizations to develop tourism
State Department of Tourism and Resorts
Development of community-based tourism
Realistic development strategy for tourism -- especially community-based tourism -- that promotes broad-based local development, reduces administrative barriers to tourism, and supports preservation
Community-based tourism
Realistic development strategy for community-based tourism, including reduced administrative barriers and more focus on preservation
Agriculture and Food
· Establish water consumer associations in rural areas
Ministry of Agriculture, Melioration System Management Department
Support to establishing new, and strengthening existing, water users associations to manage irrigation facilities
More and better functioning water user associations
Irrigation and Drainage Rehabilitation Project
EU
TACIS
Legal framework for WUAs established; number of water user associations registered increased
· Develop unified geographic computer system of land cadastre and registration
Ministry of Agriculture and Food, State Department of Land Management
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