PROTOCOL OF THE MEETING OF THE WORKING GROUP OF THE JOINT CONTROL COMMISSION ON ECONOMIC ISSUES

Tbilisi (Tabakhmela), April 4-6, 2001.

The conducted meeting of the Co-chairmen of the JCC on the settlement of the Georgian-Ossetian conflict on February 8 of 2001 in the city of Tskhinvali, the consultative meeting of the Georgian and South Ossetian experts of the Working group of the JCC on economic issues on March 15, 2001 in the city of Tbilisi, meeting of the working group of the JCC on economic issues in the city of Moscow on March 15, 2001 gave possibility to the sides to elaborate approaches to the principals of formation and realization of the inter-state Russian-Georgian program on interaction in the restoration of economy in the Georgian-Ossetian conflict zone.

The sides underline the positive role of the efforts of the international organizations and the donor-countries in the realization of the social, economic and humanitarian programs in the Georgian-Ossetian conflict zone and express hope on the further development of cooperation in this direction.

Having discussed the proposals of the sides and based on the provisions of the Agreement between the Government of the Russian Federation and the Government of Georgia on cooperation in the restoring of economy in the Georgian-Ossetian conflict zone and return of refugees, as of December 23, 2000 (in the text is given the Agreement),

The sides have agreed:

To introduce for the discussion of the eleventh plenary session of the JCC, the principles, worked out by the working group of the JCC on economic issues, related to formation and realization of inter-state Russian-Georgian program of interaction in the restoration of economy in the Georgian-Ossetian conflict zone (in the text is the Program).

1. The principles of the formation of Program

1. 1. The Program shall be directed to the restoration and development of economy in the Georgian-Ossetian conflict zone and upgrading of the level of life of population.

1. 2. The Program shall include:

) Justification of necessity to develop and to realize the Program, taking into account socio-economic situation in the Georgian-Ossetian conflict zone, the main problems of the socio-economic development and pre-requisites to their solution;

b) Tasks, objectives, timeline and stages of the Programs realization;

c) System of Programs activities;

d) Supply of resources of the Program;

e) The assessment of effectiveness of socio-economic and ecologic results effectiveness of the realization of the Program;

f) Organization of control of the Programs realization.

1. 3. Draft program is prepared by the working group of the JCC on economic issues and the additional consultations of experts from the South Ossetian and Georgian sides and is presented for the further approval of the JCCs plenary session.

1. 4. After the approval at the JCC of the draft program, the co-chairmen of the JCC from the Georgian and the Russian sides provide for necessary domestic procedures and present the Program for signatures.

1. 5. The Program is considered as enforced, in accordance with Agreement, after the signing of the plenipotentiary representatives of the sides takes place.

1. 6. Amendments and additions to the Program can be introduced by the sides, with agreement and in accordance with Agreement.

2. Mechanism of the Programs implementation.

2. 1. For preparation and realization of the Program the Georgian and the Russian sides create the inter-governmental Russian-Georgian body with its representations in Moscow and in Tbilisi and executive board of the program in Tskhinvali. Representations in Moscow and Tbilisi are created, on possibility, just after the plenary session of the JCC in Vladikavkaz.

2. 2. The Russian and the Georgian sides are preparing the necessary legal basis for the implementation of the program and carry out activities on provision of funding of the Program from the respective state budgets and other sources.

2. 3. Contractor and sub-contractor organizations for construction of the objects in the frame of realization of activities of the Program activities and are attracted, as a rule, on the competitive basis

2. 4. For the realization of the Program the sides are attracting the resources of international donors and investors. For this purpose is created joint Georgian-South Ossetian body on realization of the international donors programs.

2. 5. The Russian-Georgian intergovernmental body and the Georgian-South Ossetian body carry out permanent information exchange and mutual consultations.

2. 6. Control over the realization of the Program is carried out by the JCC on the settlement of the Georgian-Ossetian conflict.

The scheme of the Programs mechanism formation and realization is attached.

The sides expressed gratitude to the Georgian side for organization and creation of facility conditions for the work of the working group of the JCC on economic issues.

On behalf of the South-Ossetian side (signed)

On behalf of the Georgian side (signed)

On behalf of the North-Ossetian side (signed)

On behalf of the Russian side (signed)

In the presence of:

On behalf of the OSCE (signed)

On behalf of the EC (signed)

(Archive of the Staff of the State Minister of Georgia on Conflict Settlement)