Annex 2 To Protocol #11 of the JCC Session dated April 21, 2001

DECISION THE JCC FOR THE GEORGIAN-OSSETIAN CONFLICT SETTLEMENT

The JCC for the Georgian-Ossetian conflict settlement states that the meeting of cochairmen of the JCC on February 8, 2001 in Tskhinvali, consultative meeting of Georgian and South Ossetian experts of the workgroup of the JCC on economic issues on March 15, 2001 in Tbilisi, sessions of the workgroup of the JCC on economic issues on March 21-23, 2001 in Moscow and April 4-6, 2001 in Tbilisi (Tabakhmela) allowed the parties to coordinate the approaches and develop the principles of formation and realization of inter-state Russian-Georgia program on mutual cooperation in rehabilitation of economy in the zone of the Georgian-Ossetian conflict.

The parties emphasize the positive efforts of international organizations and donor countries in realization of social, economic and humanitarian programs in the zone of the Georgian-Ossetian conflict and express hope for future development of cooperation towards this direction.

Considering the proposals presented by the workgroup of the JCC on economic issues and based on the provisions of the agreement between the Governments of Russian Federation and Georgia on mutual cooperation and rehabilitation of economy in the zone of the Gerona-Ossetia conflict and return of refugees dated December 23, 2000 (hereafter referred to as the Agreement).

The JCC resolved:

1. Approve the following developed by the workgroup of the JCC on economic issues:

1.1. The principles of formation of inter-state Russian-Georgian programs on mutual cooperation in rehabilitation of economy in the zone of the Georgian-Ossetian conflict (hereafter referred to as the program).

1.1.1. The program shall be directed towards the rehabilitation and development of economy in the zone of the Georgian-Ossetian conflict, raising the living standards of the population.

1.1.2. The program shall incorporate:

a) substantiation of the necessity for developing and realization of the Program taking in the account the social-economic situation in the zone of the Georgia-Ossetian conflict, basic problems of the social and economic development and precondition for the resolution thereof;

b) goals, objectives, terms and stages of realization of the Program;

c) system of actions of the Program;

d) assessment of the efficiency of the social and economic and ecological consequences of the realization of the Program;

e) organization of the control over realization of the Program.

1.1.3. Draft program shall be developed by the workgroup of the JCC on economic issues through carrying out preliminary consultations of experts of South Ossetian and Georgian parties and presented to the plenary session of the JCC for approval.

1.1.4. After approving by the JCC the draft program, cochairmen of the JCC from Georgian and Russian parties shall ensure carrying out necessary inter-state procedures and present the Program for signing.

1.1.5. After signing by the official persons represented by the leadership of the parties, the Program shall become effective in accordance with the Agreement.

1.1.6. Changes and amendments to the Program may be introduced in coordination with the parties in accordance with the Agreement.

1.2. Mechanism of the Program implementation:

1.2.1. For the purpose of developing and realizing the Program, Russian and Georgian parties shall establish the Russian-Georgian inter-state organ with the representations in Moscow and Tbilisi, with executive directorate of the Program in Tskhinvali. Representations of Moscow and Tbilisi, if possible, shall be established directly after the plenary session of the JCC in Vladikavkaz.

1.2.2. Russian and Georgian parties shall represent the normative and legal basis for direct realization of the program and take actions for providing funding of the Program from respective state budgets and other sources.

1.2.3. Contractual and sub-contractual organizations, for the purpose of constructing entities within the Program, shall be attracted, in general, on competition basis.

1.2.4. The JCC shall take into account the fact that Russian and Georgian parties expressed intention to start working on the draft provision on Russian-Georgian inter-state organ with the participation of South Ossetian and Georgian parties, with further submission to the organs of state authorities of the parties according to the set rules.

1.2.5. For the purpose of realization of the program, the parties shall attract sources of international donors and investors. To this end, joint Georgian-South Ossetian organ for realization of the Program shall be established with the participation of international donors and investors.

1.2.6. The JCC shall take into account that Georgian and South Ossetian parties expressed their intention to start working on the draft provision on Georgian-South Ossetian organ for realization of the Program with the participation of international donors and investors.

1.2.7. Russian-Georgian inter-state organ and South Ossetian organ shall carry out permanent exchange of information and mutual consultations.

1.2.8.. Control over the realization of the Program shall be taken by the JCC for the Georgian-Ossetian conflict settlement.

1.2.9.. The scheme for formation and realization of the program is attached (see Annex 2).

2. Recommend Russian and Georgian parties to carry out negotiations in the second half of May 2001 in Moscow with the participation of authorized representatives of South Ossetian and Georgian parties on the issues of development and management of the Program on rehabilitation of economy in the zone of the Georgian-Ossetian conflict and priority projects of the program.

3. Recommend the parties to review the presented by South Ossetian party the package of projects for their inclusion in the Program and introduce their comments and proposals thereof.

On behalf of the South Ossetian side                             

On behalf of the Georgian side

On behalf of the Russian Side                                       

On behalf of the North Ossetian side

In participation of the OSCE

and the EC

(Archive of the Staff of the State Minister of Georgia for Conflict Resolution Issues/in Russian)