Private sector and human-resource development in Georgia

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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