Amproved by the Parliament of Georgia, 16 September, 2004

MEMORANDUM of understanding on the third European Commission funded rehabilitation  program in the zone of Georgian-Ossetian conflict

Mindful of the important role played by economic rehabilitation and repatriation in the overall settlement process of the Georgian-Ossetian conflict,

Nothing the willingness of the European Commission (EC), the OSCE Mission to Georgia, the United Nations Development Program (UNDP)  and the United  Nations High Commissioner For Refugees (UNHCR) to support Georgia in the  peaceful resolution of the conflict ,

Nothing that the  EC has  granted as its third rehabilitation  program (the ‘’Program’’) Euro 2.500.000  to the  OSCE Mission to Georgian to finance rehabilitation projects in the zone of the Georgian-Ossetian conflict as well as projects in support to refugees and  internally displaced persons (IDPS)

Georgia on the one side and EC, the OSCE Mission to Georgia, UNDP and UNHCR on the other side have agreed as follows:

The objectives of the program are:

- To support the process of reconciliation between the parties to the Georgian-Ossetian  conflict,

- To promote and support the voluntary return in safety and dignity of refugees and IDPs,

- To assist in the process of rehabilitation and improvement of social and economic conditions on the territories affected by the Georgian-Ossetian conflict,

-  To ensure that rehabilitation projects financed under previous grants are being maintained,

-  To benefit the population in the zone of conflict as well as resident and returning persons.

The projects financed under the program will be implemented by UNDP and UNHCR and in accordance to the procedures defined in annex 1, annex 2, and annex 3 of the present Memorandum of Understanding.

The budget of the Program in the sum of Euro 2.500.000 is divided into three parts:

First part

  Euro 800.000(eight hundred thousand) is earmarked for basic shelter assistance and repatriation kits to refugees and IDPs.

 Description of this assistance as well as its breakdown of costs in attached in annex 1.

This first part of the program falls under the responsibility of the UNHCR.

Second part

Euro 1.300.000(one million three hundred thousand) is earmarked for the rehabilitation of basic infrastructures in support to the permanent residents.

The list of these infrastructures as well as the indicative breakdown of costs for their rehabilitation is attached in annex 2. This second part of the Program falls under the responsibility of UNDP.

Third part

Euro 400.000 (four hundred thousand) is earmarked for the rehabilitation of basic infrastructures in the   areas where refugees and IDPs have voluntary returned.

 This third part of the program falls under the responsibility of UNDP with the participation of UNHCR in identifying the projects. The description of this part of the Program is defined in annex 2.

Georgia shall exempt from all taxes and customs duties all supplies, services and works financed under the Program.

The program shall be implemented within 18 months starting from the date of entry into force of the addendum to the Grant Agreement between the EC and OSCE Mission to Georgia, and upon the signing of the Project Agreements between the OSCE Mission to Georgia and UNDP and between the OSCE Mission to Georgia and UNHCR.

For Georgia                                                             

For the European commission:

For the OSCE Mission to Georgia:

For UNDP:

For UNHCR:

 

ANNEX I

Shelter / other infrastructure                                                         672950

Standard block houses                                                                      462 000

Doors & windows                                                                             34 100

Materials for roof kits / room kits                                                      176 850

Domestic needs / household support                                                16 650

Agricultural kits (450 units x EUR 37)                                                 16 650

Contingency reserve                                                                       14 035

Management costs                                                                          96 365

Total:                                                                                             800 000

 

ANNEX II

Second part of the Program

                                                                                                                       in

Energy                                                                                           740 000

Supply and installation of meters, transformers and pillars                      80 000

Completion of  HPS Edisi-2                                                               510 000

Completion of HPS Kekhvi                                                                150 000

Gas supply                                                                                      100 000

Completion of gas network  in Tskhinvali                                              70 000

Connection of Avnevi to the gas network                                              30 000

Water supply                                                                                  175 000

Rehabilitation of the Kemeli Water pump                                               35 000

Rehabilitation of the Edisi-Tskhinvali water pipe                                     40 000

Rehabilitation of the tskhinvali sewage system                                        80 000

Rehabilitation of the Tsunari water reservoir                                          20 000

Social Services                                                                                  80 000

Garbage processing plant                                                                     80 000

Completion of previous projects                                                        69 907

Total 2nd part                                                                                1 164 907

 

Third part of the Program

            Rehabilitation of infrastructures in support to returnees/IDPS       300 000

Total projects under 2nd and 3rd parts                                            1 464 907

Management costs (PIU)[*]                                                                129 100

Administrative costs (UNDP)                                                             80 993

Administrative costs (OSCE)                                                             25 000

Total                                                                                             1 700 000

 

ANNEX III

MAJOR PRINCIPLES OF THE MECHANISM FOR IMPLEMENTATION

For the third EC funded Program

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)

 

 


[*] UNDP will finance under  its own resources the international technical expert assisting the PIU