PROTOCOL

PROTOCOL

on the implementation of the third EC funded rehabilitation Program in the zone of Georgian-Ossetian conflict.

The sides participating in the settlement of Georgian-Ossetian conflict (Georgian side, South Ossetian side, Russian side, North Ossetian side) appreciate the efforts of the European Commission and the OSCE Mission to Georgia in implementation of the rehabilitation Program in the zone of conflict, thus facilitating peaceful process of settlement of the Georgian-Ossetian conflict.

The sides mark active work done in the framework of the JCC with participation of the OSCE Mission to Georgia, in making the most efficient use of the funds totaling 2.5 MEURO allocated by the EC.

The objectives of the Program at hand 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*

-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 the resident and returning persons;

The sides commend EC and the OSCE Mission to Georgia for willingness to proceed with implementation of rehabilitation projects and in accordance with the agreements between the sides with participation of the OSCE Mission to Georgia and the EC Delegation in Georgia the budget of the program in the sum of 2.5 MEURO is divided into three parts:

First part

Euro 800.000 (eight hundred thousand) is earmarked for basic shelter assistance and repatriation kits to refugees*. Description of this assistance as well as its breakdown of costs is a ttached i n A nnex 1. This first p art o f the P rogram f alls u nder t he r esponsibility o f 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 of the territory.

The list of these infrastructures as well as the indicative breakdown of costs for their rehabilitation was approved on JCC session on 26 June, 2003 and 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 places of refugees'* repatriation.

This third part of the Program falls under the responsibility of UNDP with participation of UNHCR in identifying the projects coordinated with the JCC. The description of this part of the Programme is defined in Annex 2.

The JCC shall be informed on the program implementation progress regularly in accordance with the attached Mechanism for Implementation.

Take measures to ensure the Programme is tax exempt.

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 the OSCE Mission to Georgia, to be signed within ten days.

For the Georgian side: For the South-Ossetian side: