Annex 3

to the Protocol rehabilitation third Program

MAJOR PRINCIPLES OF THE MECHANISM FOR IMPLEMENTATION For the third EC funded Program

2004 January 31.

The main objective of the mechanism for implementation of the program at hand is to define the procedures to be followed while implementing the Program funded by the European Commission for rehabilitation projects in the zone of the Georgian-Ossetian conflict. The present procedures go with the approval of Georgia, EC, the OSCE Mission to Georgia, UNDP and UNHCR.

First part (rendering basic shelter assistance and repatriation kits) of the Program falls under the responsibility of the UNHCR.

The implementation of the shelter assistance and of the repatriation kits are the prerogative of the UNHCR. UNHCR will act in strict accordance with is mandate (i.e.  voluntaries, safety and dignity) and with the annex 2 (procedural attachment) of the JCC protocol no. 7 of 13 February 1997 “On the procedure of voluntary return of refugees and IDPs of the Georgian-Ossetian conflict to the areas of their previous residence” and shell be along the established practices developed in the area since the inception of the Programme since 1997. UNHCP within the implementation framework of this part of the Program will keep informed the Georgian and South Ossetian sides of the JCC.

Second part (rehabilitation of basic infrastructures in support to the resident communities) falls under the responsibility of UNDP

The rehabilitation of basic infrastructures in support to the resident communities residing within the zone of the Georgian-Ossetian conflict shall be carried out in accordance with the list approved by the JCC on 26 June 2003.

·                     UNDP shall be entrusted with the overall management of the  projects, be

responsible for signing contracts and agreement and for disbursing  funds under this second part of the Program.

·                     There shall be set up a joint Georgian-Ossetian Project Implementation Unit (PIU)

with an international technical expert acting as a Program Manager (Chief technical advisor). The PIU shall include technical experts of both the Georgian and South-Ossetian sides with technical qualifications relevant to the implementation of the projects.

·                     The implementation of this second part of the Program shall be carried out under

The supervision of the Organization Committee (OC) composed of authorized members: representatives from the Georgian side and from the South-Ossetian side, from the OSCE Mission to Georgia, from the EC, as well as from UNDP. The meetings of the OC are chaired by the OSCE Mission to Georgia.

·                       The OC shall: approve the plan of action proposed by the Project Implementation

Unit for projects’ activities; approve possible budget revisions proposed by the UNDP (if the range of 10% of the initial indicative cost of the project); keep the JCC informed of the progress in the implementation of the projects foreseen under the second part of the Program; review and take decisions on evaluation of tender bids submitted by UNDP and the PIU.

·                       The OC meets at the request of any of its members after a one-week notice is sent

in writing to all members. The members can be represented by their sub-delegates at the OC meetings. The members can also be accompanied by their technical advisors. Provided that the Georgian and South Ossetian sides are present or represented the OC shall be able to take decisions.

·                       The decisions of the OC are taken on the basis of consensus. The Georgian and

South Ossetian sides, the OSCE Mission to Georgia and the EC have a right to veto. Should the case arise, the OC shall have two weeks to reach a consensus amongst its members. Should the OC fail to reach a consensus, the project or sub-project and its budget or sub-budget shall be canceled and one month shall be given for reallocation of the funds within the framework of the Program.

The Georgian and South Ossetian sides, UNHCR and UNDP shall identify the projects foreseen under the third part of the Program. Once approved by the OC, the projects shell is implemented in accordance with the modalities agreed upon for the implementation of the projects foreseen under the second part of the Program.

(Archive of the Foreign Ministry of Georgia)