Annex 2 To Protocol # 9 of  the JCC Session dated March 31, 1999

DECISION OF THE JOINT CONTROL COMMISSION (JCC) FOR THE GEORGIAN-OSSETIAN CONFLICT SETTLEMENT On Rehabilitation of Economy in the Zone of the Georgian-Ossetian Conflict

The JCC on settlement of the Georgian-Ossetian conflict notes that the obligations on funding the works taken in accordance with the agreement between the Governments of Russia and Georgia on economic rehabilitation of regions in the zone of the Georgian-Ossetian conflict dated September 14, 1993 (in the amount of 34.2 billion Rubbles as of June 15, 1992), have not been fully executed. The Russian party allocated …. billion rubles, which is equivalent to …. billion US dollars. The Georgian side allocated …. billion lari, which is equivalent to …. billion US dollars.

The JCC resolved:

1. Apply to the Government of Russia and Georgia with the request to continue funding of the works on economic rehabilitation off regions in the zone of the Georgian-Ossetian conflict.

2. Approve the text of the draft Agreement between the Governments of Russia and Georgia on mutual cooperation in rehabilitation of economy in the zone of the Georgian-Ossetian conflict and return of refugees (attached).

3. Ask the Governments of Russia and Georgia to take necessary inter-state procedures for the purpose of signing the stated agreement prior to June 1, 1999.

4. The parties shall start developing the program defined under the draft Agreement between the Governments of Russia and Georgia on mutual cooperation in rehabilitation of economy in the zone of the Georgian-Ossetian conflict and return of refugees, and prior to July 1, 1999, propose the first concrete actions for realization.

5. Ask the Ministry of Finance of Russia and the Ministry of Finance of North Ossetia, together with the South-Ossetian Party, regulate the issue on repayment of target (purpose) interest-free budget loan in the amount of 12 million denominated Rubles for payment of electricity of “Yugosenergo” supplied within the period of January-September 1998.

6. Note that the Georgian and South Ossetian Parties are obligated to make current payments for the electricity supplied by “Yugosenergo”, and within the period of one month, prepare and present to Russian Electricity Company the plan of restructuring of arrears for the electricity supplied in 1998.

Ask the Russian Electricity Company to continue with the power supply.

1. Note that the Georgian side, within the period of one month, will present conclusion on the project kW Java-Tskhinvali to nominal voltage 110 kW.

2. Take into consideration the statement of the head of the Georgian part of the JCC, Mr. I. Machavariani on the fact that the Georgian side failed to allocate 1 million lari projected in 1998 state budget of Georgia for the construction and rehabilitation works in the zone of the Georgian-Ossetian conflict. For these purposes 250 thousand lari have been projected in 1999 state budget of Georgia.

2. Due to the anticipated elimination of the Russian commission on the issues of economic rehabilitation of regions of South Ossetia, ask the Ministry of Construction of Russia to render assistance in adjusting the volume of construction and erection works conducted in 1998.

On behalf of the Russian side                            

On behalf of the Georgian side

On behalf of the South Ossetian Side                 

On behalf of the North Ossetian side

In the presence of: the OSCE Mission

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